Item 4.02 Non-Reliance on Previously Issued Financial Statements or a Related
Audit Report or Completed Interim Review.
On August 22, 2022, the Board of Directors of MusclePharm Corporation (the
"Company"), in consultation with management, determined that the Company's
previously issued financial statements, contained within its Annual Report on
Form 10-K/A for the year ended December 31, 2021 and its Quarterly Report on
Form 10-Q for the quarter ended March 31, 2022 should no longer be relied upon
due to errors in such financial statements. Therefore, a restatement of these
prior financial statements is required. Accordingly, the Company intends to
restate the aforementioned financial statements by amending its Annual Report on
Form 10-K/A for the year ended December 31, 2021, and its Quarterly Report on
Form 10-Q for the quarter ended March 31, 2022, as soon as reasonably
practicable, followed by filing its Quarterly Report for the quarter ended June
30, 2022.
The Company determined during the preparation of the Company's Quarterly Report
on Form 10-Q for the quarter ended June 30, 2022, that certain customer credit
memos had not been timely approved or recorded. As a result of its analysis of
these credit memos, the Company believes that revenue was overstated by $600
thousand to $1 million for the year ended December 31, 2021. The Company is in
the process of determining the misstatement of revenue for the quarter ended
March 31, 2022.
The Company's management discussed the matters disclosed in this Item 4.02 with
Moss Adams LLP, the Company's independent registered public accounting firm.
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