MusclePharm (MSLPQ) 10-Q 12 May 17 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2017	May 01, 2017
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1
Trading Symbol	MSLP
Entity Registrant Name	MusclePharm Corp
Entity Central Index Key	1,415,684
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		14,461,609

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Current assets:
Cash	$ 3,016	$ 4,943
Accounts receivable, net of allowance for doubtful accounts of $521 and $462, respectively	15,236	13,353
Inventory	6,114	8,568
Prepaid giveaways	73	205
Prepaid expenses and other current assets	2,113	1,725
Total current assets	26,552	28,794
Property and equipment, net	2,853	3,243
Intangible assets, net	1,558	1,638
Other assets	146	421
TOTAL ASSETS	31,109	34,096
Current liabilities:
Accounts payable	10,891	9,625
Accrued liabilities	8,180	9,051
Accrued restructuring charges, current	565	614
Obligation under secured borrowing arrangement	1,816	2,681
Convertible notes with a related party, net of discount	16,618	16,465
Total current liabilities	38,070	38,436
Accrued restructuring charges, long-term	185	208
Other long-term liabilities	270	332
Total liabilities	38,525	38,976
Stockholders' deficit:
Common stock, par value of $0.001 per share; 100,000,000 shares authorized as of March 31, 2017 and December 31, 2016; 15,337,230 and 14,987,230 shares issued as of March 31, 2017 and December 31, 2016, respectively; 14,461,609 and 14,111,609 shares outstanding as of March 31 2017 and December 31, 2016, respectively	14	14
Additional paid-in capital	156,908	156,301
Treasury stock, at cost; 875,621 shares as of March 31, 2017 and December 31, 2016	(10,039)	(10,039)
Accumulated other comprehensive loss	(156)	(162)
Accumulated deficit	(154,143)	(150,994)
TOTAL STOCKHOLDERS' DEFICIT	(7,416)	(4,880)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT	$ 31,109	$ 34,096

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Accounts receivable, net of allowance for doubtful accounts	$ 521	$ 462
Common Stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common Stock, shares authorized	100,000,000	100,000,000
Common Stock, shares issued	15,337,230	14,987,230
Common Stock, shares outstanding	14,461,609	14,111,609
Treasury Stock, shares	875,621	875,621

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Income Statement [Abstract]
Revenue, net	$ 26,009	$ 42,912
Cost of revenue	19,539	27,699	[1]
Gross profit	6,470	15,213
Operating expenses:
Advertising and promotion	1,888	4,287
Salaries and benefits	3,269	9,620
Selling, general and administrative	2,886	4,243
Research and development	137	863
Professional fees	882	1,388
Restructuring and other charges	0	574
Total operating expenses	9,062	20,975
Loss from operations	(2,592)	(5,762)
Gain on settlement of accounts payable	449	0
Other expense, net	(978)	(712)
Loss before provision for income taxes	(3,121)	(6,474)
Provision for income taxes	28	131
Net loss	$ (3,149)	$ (6,605)
Net loss per share, basic and diluted	$ (0.23)	$ (.48)
Weighted average shares used to compute net loss per share, basic and diluted	13,773,508	13,896,876
[1]	Cost of revenue for the three months ended March 31, 2016 included restructuring charges of $1.7 million related to write-down of inventory for discontinued products.

Consolidated Statements of Ope5

Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Income Statement [Abstract]
Inventory write down related to restructuring	$ 0	$ 1,662

Consolidated Statement of Compr

Consolidated Statement of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Statement of Comprehensive Income [Abstract]
Net loss	$ (3,149)	$ (6,605)
Other comprehensive loss:
Change in foreign currency translation adjustment	6	(5)
Comprehensive loss	$ (3,143)	$ (6,610)

Condensed Consolidated Sharehol

Condensed Consolidated Shareholders Deficit (Unaudited) - 3 months ended Mar. 31, 2017 - USD ($) $ in Thousands	Common Stock	Additional Paid-In Capital	Treasury Stock	Comprehensive Income / Loss	Retained Earnings / Accumulated Deficit	Total
Balance at Dec. 31, 2016	$ 14	$ 156,301	$ (10,039)	$ (162)	$ (150,994)	$ (4,880)
Balance (in shares) at Dec. 31, 2016	14,411,609					14,111,609
Stock-based compensation related to issuance and amortization of restricted stock awards to employees, executives and directors	$ 0	536
Stock-based compensation (in shares)	350,000
Stock-based compensation for issuance of stock options to an executive or a director		71
Change in foreign currency translation adjustment				6		$ 6
Net loss					(3,149)	(3,149)
Balance at Mar. 31, 2017	$ 14	$ 156,908	$ (10,039)	$ (156)	$ (154,143)	$ (7,416)
Balance (in shares) at Mar. 31, 2017	14,461,609					14,461,609

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (3,149)	$ (6,605)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Depreciation and amortization	420	647
Gain on settlement of accounts payable	(449)	0
Inventory write down related to restructuring	0	1,662
Amortization of prepaid stock compensation	0	703
Amortization of prepaid sponsorship and endorsement fees	0	698
Stock-based compensation	607	4,670
Other	516	159
Changes in operating assets and liabilities:
Accounts receivable	(1,925)	(302)
Inventory	2,463	2,274
Prepaid giveaways	132	14
Prepaid expenses and other current assets	(387)	(249)
Other assets	0	(50)
Accounts payable and accrued liabilities	803	(925)
Accrued restructuring charges	(73)	(326)
Net cash (used in) provided by operating activities	(1,042)	2,370
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment	0	(50)
Proceeds from disposal of property and equipment	0	16
Trademark registrations	0	6
Net cash provided by (used in) investing activities	0	(28)
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments on line of credit	0	(3,000)
Repayments of term loan	0	(2,949)
Proceeds from secured borrowing arrangement, net of reserves	4,087	23,142
Payments on secured borrowing arrangement, net of fees	(4,951)	(17,516)
Repayment of capital lease obligations	(36)	(41)
Net cash provided by financing activities	(900)	(364)
Effect of exchange rate changes on cash	15	(5)
NET INCREASE IN CASH	(1,927)	1,973
CASH - BEGINNING OF PERIOD	4,943	7,081
CASH - END OF PERIOD	3,016	9,054
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid for interest	672	439
Cash paid for taxes	8	61
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
Property and equipment acquired in conjunction with capital leases	12	24
Purchase of property and equipment included in accounts payable and accrued liabilities	9	309
Trademark registration included in accounts payable and accrued liabilities	$ 0	$ 160

Note 1 - Description of Busines

Note 1 - Description of Business	3 Months Ended
	Mar. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Description of Business	Note 1. Description of Business Description of Business MusclePharm Corporation, or the Company, was incorporated in Nevada in 2006. Except as otherwise indicated herein, the terms “Company,” “we,” “our” and “us” refer to MusclePharm Corporation and its subsidiaries. The Company is a scientifically driven, performance lifestyle company that develops, manufactures, markets and distributes branded nutritional supplements. The Company is headquartered in Denver, Colorado and, as of March 31, 2017, had the following wholly-owned operating subsidiaries: MusclePharm Canada Enterprises Corp (“MusclePharm Canada”), MusclePharm Ireland Limited (“MusclePharm Ireland”) and MusclePharm Australia Pty Limited (“MusclePharm Australia”). A former subsidiary of the Company, BioZone Laboratories, Inc. (“BioZone”), was sold on May 9, 2016. Management’s Plans with Respect to Liquidity and Capital Resources Management believes the restructuring plan completed during 2016, the continued reduction in ongoing operating costs and expense controls, and our recently implemented growth strategy, will enable the Company to ultimately be profitable. The Company has reduced its operating expenses sufficiently so that its ongoing source of revenue is projected to cover these expenses for the next twelve months, which management believes will allow it to continue as a going concern. The Company can give no assurances that this will occur. As of March 31, 2017, the Company had an accumulated deficit of $154.1 million and recurring losses from operations. To manage cash flow, in January 2016, the Company entered into a secured borrowing arrangement, pursuant to which it has the ability to borrow up to $10.0 million subject to sufficient amounts of accounts receivable to secure the loan. This arrangement was extended on March 22, 2017 for an additional six months with similar terms. Under this arrangement, during the three months ended March 31, 2017, the Company received $4.4 million in cash and subsequently repaid $5.1 million, including fees and interest, on or prior to March 31, 2017. As of March 31, 2017, the Company had approximately $3.0 million in cash and $11.5 million in working capital deficit. This working capital deficit is driven by $16.6 million in convertible notes. The accompanying Condensed Consolidated Financial Statements as of and for the three months ended March 31, 2017, were prepared on the basis of a going concern, which contemplates, among other things, the realization of assets and satisfaction of liabilities in the ordinary course of business. Accordingly, they do not give effect to adjustments that would be necessary should the Company be required to liquidate its assets. The Company’s ability to meet its total liabilities of $38.5 million as of March 31, 2017, and to continue as a going concern, is partially dependent on meeting our operating plans, and partially dependent on our Chairman of the Board, Chief Executive Officer and President, Ryan Drexler either converting or extending his two notes prior to or upon their maturity. Mr. Drexler has verbally conveyed his intentions of doing so and this alone would enable the Company to meet its obligations over the next twelve months. In addition, Mr. Drexler has verbally both stated his intent and ability to put more capital into the business if necessary. However, Mr. Drexler is under no obligation to the Company to do so, and we can give no assurances that Mr. Drexler will be willing or able to do so at a future date. The Company’s ability to continue as a going concern and raise capital for specific strategic initiatives is also dependent on obtaining adequate capital to fund operating losses until it becomes profitable. The Company can give no assurances that any additional capital that it is able to obtain, if any, will be sufficient to meet its needs, or that any such financing will be obtainable on acceptable terms. If the Company is unable to obtain adequate capital, it could be forced to cease operations or substantially curtail its commercial activities. These conditions, or significant unforeseen expenditures including the unfavorable settlement of its legal disputes, could raise substantial doubt as to the Company’s ability to continue as a going concern. The accompanying Condensed Consolidated Financial Statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might result from the outcome of these uncertainties. The Company’s ability to continue as a going concern and raise capital for specific strategic initiatives is also dependent on obtaining adequate capital to fund operating losses until it becomes profitable. The Company can give no assurances that any additional capital that it is able to obtain, if any, will be sufficient to meet its needs, or that any such financing will be obtainable on acceptable terms. If he Company is unable to obtain adequate capital, it could be forced to cease operations or substantially curtail its commercial activities. These conditions, or significant unforeseen expenditures, could raise substantial doubt as to the Company’s ability to continue as a going concern. The accompanying Consolidated Financial Statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might result from the outcome of these uncertainties.

Note 2 - Summary of Significant

Note 2 - Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2017
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Note 2. Summary of Significant Accounting Policies Basis of Presentation and Principles of Consolidation The accompanying Condensed Consolidated Financial Statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”). The Condensed Consolidated Financial Statements include the accounts of MusclePharm Corporation and its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. Unaudited Interim Financial Information The accompanying unaudited interim Condensed Consolidated Financial Statements have been prepared in accordance with GAAP and with the instructions to Form 10-Q and Article 10 of Regulation S-X for interim financial information. Accordingly, these statements do not include all of the information and notes required by GAAP for complete financial statements. The Company’s management believes the unaudited interim Condensed Consolidated Financial Statements include all adjustments of a normal recurring nature necessary for the fair presentation of the Company’s financial position as of March 31, 2017, results of operations for the three months ended March 31, 2017 and 2016, and cash flows for the three months ended March 31, 2017 and 2016. The results of operations for the three ended March 31, 2017 are not necessarily indicative of the results to be expected for the year ending December 31, 2017. These unaudited interim Condensed Consolidated Financial Statements should be read in conjunction with the consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016, filed with the SEC on March 15, 2017. Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported and disclosed in the consolidated financial statements and accompanying notes. Such estimates include, but are not limited to, allowance for doubtful accounts, revenue discounts and allowances, the valuation of inventory and tax assets, the assessment of useful lives, recoverability and valuation of long-lived assets, likelihood and range of possible losses on contingencies, restructuring liabilities, valuations of equity securities and intangible assets, fair value of derivatives, warrants and options, among others. Actual results could differ from those estimates. Revenue Recognition Revenue is recognized when all of the following criteria are met: · Persuasive evidence of an arrangement exists. · Delivery has occurred. · The fee is fixed or determinable. · Collection is reasonably assured. The Company’s standard terms and conditions of sale allow for product returns or replacements in certain cases. Estimates of expected future product returns are recognized at the time of sale based on analyses of historical return trends by customer type. Upon recognition, the Company reduces revenue and cost of revenue for the estimated return. Return rates can fluctuate over time, but are sufficiently predictable with established customers to allow the Company to estimate expected future product returns, and an accrual is recorded for future expected returns when the related revenue is recognized. Product returns incurred from established customers were insignificant for the three months ended March 31, 2017 and 2016, respectively. The Company offers sales incentives through various programs, consisting primarily of advertising related credits, volume incentive rebates, and sales incentive reserves. The Company records advertising related credits with customers as a reduction to revenue as no identifiable benefit is received in exchange for credits claimed by the customer. Volume incentive rebates are provided to certain customers based on contractually agreed upon percentages once certain thresholds have been met. Sales incentive reserves are computed based on historical trending and budgeted discount percentages, which are typically based on historical discount rates with adjustments for any known changes, such as future promotions or one-time historical promotions that will not repeat for each customer. The Company records sales incentive reserves and volume rebate reserves as a reduction to revenue. During the three months ended March 31, 2017 and 2016, the Company recorded discounts, and to a lesser degree, sales returns, totaling $8.0 million and $8.1 million, respectively, which accounted for 23% and 16% of gross revenue in each period, respectively. Concentrations Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and accounts receivable. The Company minimizes its credit risk associated with cash by periodically evaluating the credit quality of its primary financial institution. The cash balance at times may exceed federally insured limits. Management believes the financial risk associated with these balances is minimal and has not experienced any losses to date. Significant customers are those which represent more than 10% of the Company’s net revenue for each period presented. For each significant customer, revenue as a percentage of total revenue is as follows: Percentage of Net Revenue for the Three Months Ended March 31, 2017 2016 Customers Costco Wholesale Corporation 35 % 16 % GNC Holdings Inc. * 12 % Bodybuilding.com * 11 % * Represents less than 10% of net revenue. Share-Based Payments and Stock-Based Compensation Share-based compensation awards, including stock options and restricted stock awards, are recorded at estimated fair value on the applicable award’s grant date, based on estimated number of awards that are expected to vest. The grant date fair value is amortized on a straight-line basis over the time in which the awards are expected to vest, or immediately if no vesting is required. Share-based compensation awards issued to non-employees for services are recorded at either the fair value of the services rendered or the fair value of the share-based payments whichever is more readily determinable. The fair value of restricted stock awards is based on the fair value of the stock underlying the awards on the grant date as there is no exercise price. The fair value of stock options is estimated using the Black-Scholes option-pricing model. The determination of the fair value of each stock award using this option-pricing model is affected by the Company’s assumptions regarding a number of complex and subjective variables. These variables include, but are not limited to, the expected stock price volatility over the term of the awards and the expected term of the awards based on an analysis of the actual and projected employee stock option exercise behaviors and the contractual term of the awards. Due to the Company’s limited experience with the expected term of options, the simplified method was utilized in determining the expected option term as prescribed in Staff Accounting Bulletin No. 110. The Company recognizes stock-based compensation expense over the requisite service period, which is generally consistent with the vesting of the awards, based on the estimated fair value of all stock-based payments issued to employees and directors that are expected to vest. Recent Accounting Pronouncements During August 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-15, Statement of Cash Flows - Classification of Certain Cash Receipts and Cash Payments In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers Revenue Recognition Revenue Recognition- Construction-Type and Production-Type Contracts Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date In March 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients In March 2016, the FASB issued ASU No. 2016-09, Compensation – Stock Compensation (Topic 718) In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) Leases In July 2015, the FASB issued ASU No. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory

Note 3 - Fair Value of Financia

Note 3 - Fair Value of Financial Instruments	3 Months Ended
	Mar. 31, 2017
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	Note 3. Fair Value of Financial Instruments Management believes the fair values of the obligations under the secured borrowing arrangement and the convertible notes with a related party approximate carrying value because the debt carries market rates of interest available to the Company, and are both short-term in nature. The Company’s remaining financial instruments consisted primarily of accounts receivable, accounts payable, accrued liabilities and accrued restructuring charges, all of which are short-term in nature with fair values approximating carrying value. As of March 31, 2017 and December 31, 2016, the Company held no assets or liabilities that required remeasurement at fair value on a recurring basis.

Note 4 - Restructuring

Note 4 - Restructuring	3 Months Ended
	Mar. 31, 2017
Restructuring and Related Activities [Abstract]
Restructuring	Note 5. Restructuring As part of an effort to better focus and align the Company’s resources toward profitable growth, on August 24, 2015, the Board authorized the Company to undertake steps to commence a restructuring of the business and operations, which concluded during the third quarter of 2016. The Company closed certain facilities, reduced headcount, discontinued products and renegotiated certain contracts resulting in restructuring and other charges of $0.6 million for the three months ended March 31, 2016. For the three months ended March 31, 2016, the Company recorded restructuring charges in “Cost of revenue” of $1.7 million, related to the write-down of inventory identified to be discontinued in the restructuring plan. The following table illustrates the provision of the restructuring charges and the accrued restructuring charges balance as of March 31, 2017 (in thousands): Contract Termination Costs Purchase Commitment of Discontinued Inventories Not Yet Received Abandoned Lease Facilities Total Balance as of December 31, 2016 $ 308 $ 175 $ 339 $ 822 Expensed — — — — Cash payments — — (72 ) (72 ) Balance as of March 31, 2017 308 175 267 750 The total future payments under the restructuring plan as of March 31, 2017 are as follows (in thousands): For the Year Ending December 31, Outstanding Payments Remainder of 2017 2018 2019 2020 2021 Total Contract termination costs $ 308 $ — $ — $ — $ — $ 308 Purchase commitment of discontinued inventories not yet received 175 — — — — 175 Abandoned leased facilities 59 92 91 25 — 267 Total future payments $ 542 $ 92 $ 91 $ 25 $ — $ 750

Note 5 - Balance Sheet Componen

Note 5 - Balance Sheet Components	3 Months Ended
	Mar. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Balance Sheet Components	Note 5. Balance Sheet Components Inventory Inventory consisted of the following as of March 31, 2017 and December 31, 2016 (in thousands): As of March 31, 2017 As of December 31, 2016 Raw materials $ — $ — Work-in-process — — Finished goods 6,114 8,568 Inventory $ 6,114 $ 8,568 The Company records charges for obsolete and slow moving inventory based on the age of the product as determined by the expiration date. Products within one year of their expiration dates are considered for write-off purposes. Historically, the Company has had minimal returns with established customers. Other than write-off of inventory during restructuring activities, the Company incurred insignificant inventory write-offs during the three months ended March 31, 2017 and 2016. Inventory write-downs, once established, are not reversed as they establish a new cost basis for the inventory. As disclosed further in Note 4, the Company executed a restructuring plan in August 2015 and wrote off inventory related to discontinued products. For the three months ended March 31, 2016, discontinued inventory of $1.7 million was written off and included as a component of “Cost of revenue” in the accompanying Condensed Consolidated Statements of Operations. Property and Equipment Property and equipment consisted of the following as of March 31, 2017 and December 31, 2016 (in thousands): As of March 31, 2017 As of December 31, 2016 Furniture, fixtures and equipment $ 3,561 $ 3,521 Leasehold improvements 2,504 2,504 Manufacturing and lab equipment 3 3 Vehicles 209 334 Displays 483 483 Website 462 462 Construction in process 36 55 Property and equipment, gross 7,258 7,362 Less: accumulated depreciation and amortization (4,405 ) (4,119 ) Property and equipment, net $ 2,853 $ 3,243 Depreciation and amortization expense related to property and equipment was $0.3 million and $0.4 million for the three months ended March 31, 2017 and 2016, respectively, which is included in “Selling, general, and administrative” expense in the accompanying Condensed Consolidated Statements of Operations. Intangible Assets Intangible assets consisted of the following (in thousands): As of March 31, 2017 Gross Value Accumulated Net Remaining Weighted- Amortized Intangible Assets Brand $ 2,244 $ (686 ) $ 1,558 4.9 Total intangible assets $ 2,244 $ (686 ) $ 1,558 As of December 31, 2016 Gross Value Accumulated Net Remaining Weighted- Amortized Intangible Assets Brand $ 2,244 $ (606 ) $ 1,638 5.1 Total intangible assets $ 2,244 $ (606 ) $ 1,638 Intangible assets amortization expense was $0.1 million and $0.2 million for the three months ended March 31, 2017 and 2016, respectively, which is included in the “Selling, general, and administrative” expense in the accompanying Condensed Consolidated Statements of Operations. As of March 31, 2017, the estimated future amortization expense of intangible assets is as follows (in thousands): For the Year Ending December 31, Remainder of 2017 $ 241 2018 321 2019 321 2020 321 2021 321 Thereafter 33 Total amortization expense $ 1,558

Note 6 - Other Expense, net

Note 6 - Other Expense, net	3 Months Ended
	Mar. 31, 2017
Other Income and Expenses [Abstract]
Other Expense, net	Note 6. Other Expense, net For the three months ended March 31, 2017 and 2016, “Other expense, net” consisted of the following (in thousands): For the Three Months Ended March 31, 2017 2016 Other expense, net: Interest expense, related party $ (422 ) $ (121 ) Interest expense, other (159 ) (44 ) Interest expense, secured borrowing arrangement (104 ) (354 ) Foreign currency transaction (loss) gain (12 ) 103 Other (281 ) (296 ) Total other expense, net $ (978 ) $ (712 )

Note 7 - Debt

Note 7 - Debt	3 Months Ended
	Mar. 31, 2017
Debt Disclosure [Abstract]
Debt	Note 7. Debt As of March 31, 2017 and December 31, 2016, the Company’s debt consisted of the following (in thousands): As of March 31, 2017 As of December 31,2016 2015 Convertible Note due November 2017 with a related party $ 6,000 $ 6,000 2016 Convertible Note due November 2017 with a related party, net of discount 10,618 10,465 Obligations under secured borrowing arrangement 1,816 2,681 Total debt 18,434 19,146 Less: current portion (18,434 ) (19,146 ) Long term debt $ — $ — Related-Party Convertible Notes In November 2016, the Company entered into a convertible secured promissory note agreement (the “2016 Convertible Note”) with Mr. Ryan Drexler, the Company’s Chairman of the Board, Chief Executive Officer and President, pursuant to which Mr. Drexler loaned the Company $11.0 million. Proceeds from the 2016 Convertible Note were used to fund settlement of litigation. The 2016 Convertible Note is secured by all assets and properties of the Company and its subsidiaries, whether tangible or intangible. The 2016 Convertible Note carries interest at a rate of 10% per annum, or 12% if there is an event of default. Both the principal and the interest under the 2016 Convertible Note are due on November 8, 2017, unless converted earlier. Mr. Drexler may convert the outstanding principal and accrued interest into 6,010,929 shares of the Company’s common stock for $1.83 per share at any time. The Company may prepay the 2016 Convertible Note at the aggregate principal amount therein, plus accrued interest, by giving Mr. Drexler between 15 and 60 day-notice depending upon the specific circumstances, provided that Mr. Drexler may convert the 2016 Convertible Note during the applicable notice period. The Company recorded the 2016 Convertible Note as a liability in the balance sheet and also recorded a beneficial conversion feature of $601,000 as a debt discount upon issuance of the convertible note, which is being amortized over the term of the debt using the effective interest method. The beneficial conversion feature was calculated based on the difference between the fair value of common stock on the transaction date and the effective conversion price of the convertible note. As of March 31, 2017, the 2016 Convertible Note had an outstanding principal balance of $11.0 million and a carrying value of $10.6 million. As of December 31, 2016, the 2016 Convertible Note had an outstanding principal balance of $11.0 million and a carrying value of $10.5 million. In December 2015, the Company entered into a convertible secured promissory note agreement (the “2015 Convertible Note”) with Mr. Drexler, pursuant to which he loaned the Company $6.0 million. Proceeds from the 2015 Convertible Note were used to fund working capital requirements. The 2015 Convertible Note is secured by all assets and properties of the Company and its subsidiaries whether tangible or intangible. The 2015 Convertible Note originally carried an interest at a rate of 8% per annum, or 10% in the event of default. Both the principal and the interest under the 2015 Convertible Note were originally due in January 2017, unless converted earlier. The due date of the 2015 Convertible note was extended to November 8, 2017 and the interest rates were raised to 10% per annum, or 12% in the event of default. Mr. Drexler may convert the outstanding principal and accrued interest into 2,608,695 shares of common stock for $2.30 per share at any time. The Company may prepay the convertible note at the aggregate principal amount therein plus accrued interest by giving the holder between 15 and 60 day-notice, depending upon the specific circumstances, provided that Mr. Drexler may convert the 2016 Convertible Note during the applicable notice period. The Company recorded the 2015 Convertible Note as a liability in the balance sheet and also recorded a beneficial conversion feature of $52,000 as a debt discount upon issuance of the 2015 Convertible Note, which was amortized over the term of the debt using the effective interest method. The beneficial conversion feature was calculated based on the difference between the fair value of common stock on the transaction date and the effective conversion price of the convertible note. As of March 31, 2017 and December 31, 2016, the convertible note had an outstanding principal balance of $6.0 million. In connection with the Company entering into the 2015 Convertible Note with Mr. Drexler, the Company granted Mr. Drexler the right to designate two directors to the Board. For the three months ended March 31, 2017 and 2016, interest expense related to the related party convertible secured promissory notes was $0.4 million and $0.1 million, respectively. During the three months ended March 31, 2017 and 2016, $0.4 million and $0.1 million, respectively, in interest was paid in cash to Mr. Drexler. Secured borrowing arrangement In January 2016, the Company entered into a Purchase and Sale Agreement (the “Agreement”) with Prestige Capital Corporation (“Prestige”) pursuant to which the Company agreed to sell and assign and Prestige agreed to buy and accept, certain accounts receivable owed to the Company (“Accounts”). Under the terms of the Agreement, upon the receipt and acceptance of each assignment of Accounts, Prestige will pay the Company 80% of the net face amount of the assigned Accounts, up to a maximum total borrowings of $10.0 million subject to sufficient amounts of accounts receivable to secure the loan. The remaining 20% will be paid to the Company upon collection of the assigned Accounts, less any chargeback, disputes, or other amounts due to Prestige. Prestige’s purchase of the assigned Accounts from the Company will be at a discount fee which varies based on the number of days outstanding from the assignment of Accounts to collection of the assigned Accounts. In addition, the Company granted Prestige a continuing security interest in and lien upon all accounts receivable, inventory, fixed assets, general intangibles and other assets. The Agreement’s term has been extended to September 29, 2017. Prestige may cancel the Agreement with 30-day notice. During the three months ended March 31, 2017, the Company sold to Prestige accounts with an aggregate face amount of approximately $5.5 million, for which Prestige paid to the Company approximately $4.4 million in cash. During the three months ended March 31, 2017, $5.1 million was subsequently repaid to Prestige, including fees and interest. During the three months ended March 31, 2016, the Company sold to Prestige accounts with an aggregate face amount of approximately $28.9 million, for which Prestige paid to the Company approximately $23.1 million in cash. During the three months ended March 31, 2016, $18.4 million was subsequently repaid to Prestige, including fees and interest.

Note 8 - Commitments and Contin

Note 8 - Commitments and Contingencies	3 Months Ended
	Mar. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Operating Leases The Company leases office and warehouse facilities under operating leases, which expire at various dates through 2020. The amounts reflected in the table below are for the aggregate future minimum lease payments under non-cancelable facility operating leases for properties that have not been abandoned as part of the restructuring plan. See Note 4 for additional details regarding the restructured leases. Under lease agreements that contain escalating rent provisions, lease expense is recorded on a straight-line basis over the lease term. Rent expense was $0.1 million and $0.3 million for the three months ended March 31, 2017 and 2016, respectively. As of March 31, 2017, future minimum lease payments are as follows (in thousands): For the Year Ending December 31, Remainder of 2017 $ 327 2018 418 2019 392 2020 268 2021 — Thereafter — Total minimum lease payments $ 1,405 Capital Leases In December 2014, the Company entered into a capital lease agreement providing for approximately $1.8 million in credit to lease up to 50 vehicles as part of a fleet lease program. As of March 31, 2017, the Company was leasing six vehicles under the capital lease which were included in “Property and equipment, net” in the Condensed Consolidated Balance Sheets. The original cost of leased assets was $205,000 and the associated accumulated depreciation was $90,000. As of December 31, 2016, the Company was leasing 10 vehicles under the capital lease which were included in “Property and equipment, net” in the Condensed Consolidated Balance Sheets. The original cost of leased assets was $330,000 and the associated accumulated depreciation was $126,000. The Company also leases manufacturing and warehouse equipment under capital leases, which expire at various dates through February 2020. Several of such leases were reclassified to the restructuring liability during 2016, and related assets were written off to restructuring expense for the year ended December 31, 2016. As of March 31, 2017 and December 31, 2016, short-term capital lease liabilities of $157,000 and $173,000, respectively, were included as a component of current accrued liabilities, and the long-term capital lease liabilities of $270,000 and $332,000, respectively, were included as a component of long-term liabilities in the Condensed Consolidated Balance Sheets. As of March 31, 2017, the Company’s future minimum lease payments under capital lease agreements, are as follows (in thousands): For the Year Ending December 31, Remainder of 2017 $ 133 2018 161 2019 113 2020 51 2021 — Total minimum lease payments 458 Less amounts representing interest (31 ) Present value of minimum lease payments $ 427 Purchase Commitment Upon the completion of the sale of BioZone on May 9, 2016, the Company entered into a manufacturing and supply agreement whereby the Company is required to purchase a minimum of approximately $1.9 million of products per year from BioZone annually for an initial term of three years. If the minimum order quantities of specific products are not met, a $3.0 million minimum purchase commitment kicks in and any shortfall will be paid at 25% of the realized shortfall. Due to the timing of achieving the minimum purchase quantities, we believe that we will be slightly below these targets. As a result, we have provided for the estimated purchase commitment shortfall adjustment in the three months ended March 31, 2017 Settlements Arnold Schwarzenegger The Company was engaged in a dispute with Marine MP, LLC (“Marine MP”), Arnold Schwarzenegger (“Schwarzenegger”), and Fitness Publications, Inc. (“Fitness,” and together with Marine MP and Schwarzenegger, the “AS Parties”) concerning amounts allegedly owed under the parties’ Endorsement Licensing and Co-Branding Agreement (the “Endorsement Agreement”). In May 2016, the Company received written notice that the AS Parties were terminating the Endorsement Licensing and Co-Branding Agreement by and among the Company and the AS Parties, the Company provided written notice to the AS Parties that it was terminating the Endorsement Agreement, and the AS Parties commenced arbitration, alleging that the Company breached the parties’ agreement and misappropriated Schwarzenegger’s likeness. The Company filed its response and counterclaimed for breach of contract and breach of the implied covenant of good faith and fair dealing. On December 17, 2016, the Company entered into a Settlement Agreement (the “Settlement Agreement”) with the AS Parties, effective January 4, 2017. Pursuant to the Settlement Agreement, and to resolve and settle all disputes between the parties and release all claims between them, the Company agreed to pay the AS Parties (a) $1.0 million, which payment was released to the AS Parties on January 5, 2017, and (b) $2.0 million within six months of the effective date of the Settlement Agreement. If the Company fails to make the second payment when due, pursuant to a confession of judgment entered into by the Company, the AS Parties will be entitled to an additional $1.0 million, for a total additional payment of $3.0 million to satisfy the AS Parties’ contract claim, which the AS Parties claim is valued at $4.0 million. The Company also has agreed that it will not sell any products from its Arnold Schwarzenegger product line, will donate to a charity chosen by Arnold Schwarzenegger any remaining usable product, and otherwise destroy any products currently in inventory. This inventory was written off to “Impairment of assets” in the Consolidated Statement of Operations during the year ended December 31, 2016. In addition, in connection with the transaction, the 780,000 shares of Company common stock held by Marine MP were sold to a third party on January 4, 2017 in exchange for an aggregate payment by such third party of $1,677,000 to the AS Parties. Contingencies In the normal course of business or otherwise, the Company may become involved in legal proceedings. The Company will accrue a liability for such matters when it is probable that a liability has been incurred and the amount can be reasonably estimated. When only a range of possible loss can be established, the most probable amount in the range is accrued. If no amount within this range is a better estimate than any other amount within the range, the minimum amount in the range is accrued. The accrual for a litigation loss contingency might include, for example, estimates of potential damages, outside legal fees and other directly related costs expected to be incurred. As of March 31, 2017, the Company was involved in the following material legal proceedings described below. Supplier Complaint In January 2016, ThermoLife International LLC (“ThermoLife”), a supplier of nitrates to MusclePharm, filed a complaint against the Company in Arizona state court. In its complaint, ThermoLife alleges that the Company failed to meet minimum purchase requirements contained in the parties’ supply agreement. In March 2016, the Company filed an answer to ThermoLife’s complaint, denying the allegations contained in the complaint, and filed a counterclaim alleging that ThermoLife breached its express warranty to MusclePharm because ThermoLife’s products were defective and could not be incorporated into the Company’s products. Therefore, the Company believes that ThermoLife’s complaint is without merit. The lawsuit is currently in the discovery phase. Former Executive Lawsuit In December 2015, the Company accepted notice by Mr. Richard Estalella (“Estalella”) to terminate his employment as the Company’s President. Although Estalella sought to terminate his employment with the Company for “Good Reason,” as defined in Estalella’s employment agreement with the Company (the “Employment Agreement”), the Company advised Estalella that it deemed his resignation to be without Good Reason. In February 2016, Estalella filed a complaint in Colorado state court against the Company and Ryan Drexler, Chairman of the Board, Chief Executive Officer and President, alleging, among other things, that the Company breached the Employment Agreement, and seeking certain equitable relief and unspecified damages. The Company believes Estalella’s claims are without merit. At the Company’s 2016 Annual Meeting of Stockholders in June 2016, Estalella was not reelected to the Board and is no longer a member of the Board. As of the date of this report, the Company has evaluated the potential outcome of this lawsuit and recorded the liability consistent with its policy. The lawsuit is in the final discovery phase with trial expected to commence in July 2017. Insurance Carrier Lawsuit The Company is engaged in litigation with insurance carrier Liberty Insurance Underwriters, Inc. arising out of Liberty’s denial of coverage. In 2014, the Company sought coverage under an insurance policy with Liberty for claims against directors and officers of the Company arising out of an investigation by the Securities and Exchange Commission. Liberty denied coverage, and, on February 12, 2015, the Company filed a complaint in the District Court, City and County of Denver, Colorado against Liberty claiming wrongful and unreasonable denial of coverage for the cost and expenses incurred in connection with the SEC investigation and related matters. Liberty removed the complaint to the United States District Court for the District of Colorado, which in August 2016 granted Liberty’s motion for summary judgment, denying coverage and dismissing the Company’s claims with prejudice, and denied the Company’s motion for summary judgment. The Company filed an appeal in November 2016. The appeal is currently in the discovery phase. Manchester City Football Group The Company is engaged in a dispute with City Football Group Limited (“CFG”), the owner of Manchester City Football Group, concerning amounts allegedly owed by the Company under a Sponsorship Agreement with CFG. In August 2016, CFG commenced arbitration in the United Kingdom against the Company, seeking approximately $8.3 million for the Company’s purported breach of the Agreement. The Company answered on October 7, 2016. The dispute is currently in arbitration. As of the date of this report, the Company has evaluated the potential outcome of this lawsuit and recorded the liability consistent with its policy. IRS Audit On April 6, 2016, The Internal Revenue Service (“IRS”) selected the Company’s 2014 Federal Income Tax Return for audit. As a result of the audit, the IRS noted certain deficiencies with the tax reporting of the Company’s former executive’s 2014 restricted stock grant. Due to the Company’s current and historical loss position, any proposed adjustment would have no material impact on its Federal Income Tax Return. On October 5, 2016, the IRS selected the Company’s 2014 Federal Income Tax Return for an Employment Tax Audit. The IRS is contending that the Company inaccurately reported the value of the restricted stock grants and improperly failed to provide for employment taxes and federal tax withholding on these grants. In addition, the IRS is proposing certain penalties and fines associated with the delinquent filings. On April 4, 2017, we received the final IRS Determination Letter which orders back taxes and penalties of approximately $5.3 million of which $0.4 million related to employment taxes and $4.9 million related to federal tax withholding and penalties. The Company has provided for a liability for the employment taxes consistent with its policy for the three months ended March 31, 2017. Additionally, due to the uncertainty associated with the Federal tax withholding, the Company is unable to provide an estimate for its potential liability associated with these taxes. Accordingly, no liability has been recorded. The Company intends to formally appeal this matter under the formal IRS appeal process and is unable to ascertain the likelihood of the outcome of this process. Sponsorship and Endorsement Contract Liabilities The Company has various non-cancelable endorsement and sponsorship agreements with terms expiring through 2019. The total value of future contractual payments as of March 31, 2017 are as follows (in thousands): For the Year Ending December 31, Remainder of 2017 2018 2019 2020 2021 Thereafter Total Outstanding Payments Endorsement $ 184 $ 2 $ — $ — $ — $ — $ 186 Sponsorship 1,810 2,460 1,040 — — — 5,310 Total future payments $ 1,994 $ 2,462 $ 1,040 $ — $ — $ — $ 5,496

Note 9 - Stockholders' Deficit

Note 9 - Stockholders' Deficit	3 Months Ended
	Mar. 31, 2017
Equity [Abstract]
Stockholders' Deficit	Note 9. Stockholders’ Deficit Common Stock For the three months ended March 31, 2017, the Company had the following transactions related to its common stock including restricted stock awards (in thousands, except share and per share data): Transaction Type Quantity (Shares) Valuation ($) Range of Value per Share Stock issued to employees, executives and directors 350,000 $ 686 $ 1.96 Total 350,000 $ 686 $ 1.96 For the three months ended March 31, 2016, the Company issued common stock including restricted stock awards, as follows (in thousands, except share and per share data): Transaction Type Quantity (Shares) Valuation ($) Range of Value per Share Stock issued to employees, executives and directors 145,245 $ 289 $ 1.89-2.21 Total 145,245 $ 289 $ 1.89-2.21 The fair value of all stock issuances above is based upon the quoted closing trading price on the date of issuance. Common stock outstanding as of December 31, 2016 and 2015 includes shares legally outstanding even if subject to future vesting. Warrants In November 2016, the Company issued a warrant to purchase 1,289,378 shares of its common stock to the parent company of Capstone Nutrition, the Company’s former product manufacturer, pursuant to a settlement agreement. The exercise price of this warrant was $1.83 per share, with a contractual term of four years. The Company has valued this warrant by utilizing the Black Scholes model at approximately $1.8 million with the following assumptions: contractual life of four years, risk free interest rate of 1.27%, dividend yield of 0%, and expected volatility of 118.4%. In July 2014, the Company issued a warrant to purchase 100,000 shares of its common stock related to an endorsement agreement. The exercise price of this warrant was $11.90 per share, with a contractual term of five years. This warrant fully vested during 2016. The Company used the Black-Scholes model to determine the estimated fair value of the warrants, with the following assumptions: contractual life of five years, risk free interest rate of 1.7%, dividend yield of 0%, and expected volatility of 55%. Treasury Stock During the three months ended March 31, 2017 and the year ended December 31, 2016, the Company did not repurchase any shares of its common stock and held 875,621 shares in treasury as of March 31, 2017 and December 31, 2016.

Note 10 - Stock-Based Compensat

Note 10 - Stock-Based Compensation	3 Months Ended
	Mar. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-Based Compensation	Restricted Stock The Company’s stock-based compensation for the three months ended March 31, 2017 and 2016 consist primarily of restricted stock awards. The activity of restricted stock awards granted to employees, executives and Board members was as follows: Unvested Restricted Stock Awards Number of Shares Weighted Average Grant Date Fair Value Unvested balance – December 31, 2016 378,425 $ 3.45 Granted 350,000 1.96 Vested (58,255 ) 2.99 Cancelled — — Unvested balance – March 31, 2017 670,170 2.71 The total fair value of restricted stock awards granted to employees and the Board was $0.7 million and $0.3 million for the three months ended March 31, 2017 and 2016, respectively. As of March 31, 2017, the total unrecognized expense for unvested restricted stock awards, net of expected forfeitures, was $1.3 million, which is expected to be amortized over a weighted average period of 1.2 years. Restricted Stock Awards Issued to Ryan Drexler, Chairman of the Board, Chief Executive Officer and President In January 2017, the Company issued Mr. Ryan Drexler 350,000 shares of restricted stock pursuant to an Amended and Restated Executive Employment Agreement dated November 18, 2016 (“Employment Agreement”) with a grant date value of $0.7 million based upon the closing price of the Company’s common stock on the date of issuance. These shares of restricted stock vest in full upon the first anniversary of the grant date. Accelerated Vesting of Restricted Stock Awards Related to Termination of Employment Agreement with Brad Pyatt, Former Chief Executive Officer In March 2016, Brad Pyatt, the Company’s former Chief Executive Officer, terminated his employment with the Company. Pursuant to the terms of the separation agreement with the Company, in exchange for a release of claims, the Company agreed to pay severance in the amount of $1.1 million, payable over a 12-month period, a lump sum of $250,000 paid during March 2017 and reimbursement of COBRA premiums. In addition, the remaining unvested restricted stock awards held by Brad Pyatt of 500,000 shares vested in full upon his termination in accordance with the original grant terms. In connection with the accelerated vesting of these restricted stock awards, the Company recognized stock compensation expense of $3.9 million, which is included in “Salaries and benefits” in the accompanying Condensed Consolidated Statements of Operations for the three months ended March 31, 2016. All amounts due Mr. Pyatt were paid as of March 31, 2017. Stock Options The Company may grant options to purchase shares of the Company’s common stock to certain employees and directors pursuant to the 2015 Plan. Under the 2015 Plan, all stock options are granted with an exercise price equal to or greater than the fair market value of a share of the Company’s common stock on the date of grant. Vesting is generally determined by the Compensation Committee of the Board within limits set forth in the 2015 Plan. No stock option will be exercisable more than ten years after the date it is granted. In February 2016, the Company issued options to purchase 137,362 shares of its common stock to Mr. Drexler, the Company’s Chief Executive Officer, President and Chairman of the Board, and 54,945 to Michael Doron, the Lead Director of the Board. These stock options have an exercise price of $1.89 per share, a contractual term of 10 years and a grant date fair value of $1.72 per share, or $0.3 million, which is amortized on a straight-line basis over the vesting period of two years. The Company determined the fair value of the stock options using the Black-Scholes model. The table below sets forth the assumptions used in valuing such options. For the Year Ended December 31, 2016 Expected term of options 6.5 years Expected volatility 131.0% Risk-free interest rate 1.71% Expected dividend yield 0.0% For the three months ended March 31, 2017 and 2016, the Company recorded stock compensation expense related to options of $0.1 million and $14,000, respectively.

Note 11 - Net Loss per Share

Note 11 - Net Loss per Share	3 Months Ended
	Mar. 31, 2017
Earnings Per Share [Abstract]
Net Loss per Share	Note 11. Net Loss per Share Basic net loss per share is computed by dividing net loss for the period by the weighted average number of shares of common stock outstanding during each period. There was no dilutive effect for the outstanding potentially dilutive securities for the three months ended March 31, 2017 and 2016, respectively, as the Company reported a net loss for both periods. The following table sets forth the computation of the Company’s basic and diluted net loss per share for the periods presented (in thousands, except share and per share data): For the Three Months Ended March 31, 2017 2016 Net loss $ (3,149 ) $ (6,605 ) Weighted average common shares used in computing net loss per share, basic and diluted 13,773,508 13,896,876 Net loss per share, basic and diluted $ (0.23 ) $ (0.48 ) Diluted net income per share is computed by dividing net income for the period by the weighted average number of shares of common stock, common stock equivalents and potentially dilutive securities outstanding during each period. The Company uses the treasury stock method to determine whether there is a dilutive effect of outstanding potentially dilutive securities, and the if-converted method to assess the dilutive effect of the convertible notes. There was no dilutive effect for the outstanding awards for the three months ended March 31, 2017 and 2016, respectively, as the Company reported a net loss for both periods. However, if the Company had net income for the three months ended March 31, 2017, the potentially dilutive securities included in the earnings per share computation would have been 8,690,710. If the Company had net income for the three months ended March 31, 2016, the potentially dilutive securities included in the earnings per share computation would have been 2,608,695. Total outstanding potentially dilutive securities were comprised of the following: As of March 31, 2017 2016 Stock options 192,307 192,307 Warrants 1,389,378 100,000 Unvested restricted stock 670,170 350,999 Convertible notes 8,619,624 2,608,695 Total common stock equivalents 10,871,479 3,252,001

Note 12 - Income Taxes

Note 12 - Income Taxes	3 Months Ended
	Mar. 31, 2017
Income Tax Disclosure [Abstract]
Income Taxes	Note 12. Income Taxes The Company recorded a tax provision of $28,000 and $0.1 million for the three months ended March 31, 2017 and 2016, respectively. Income taxes are provided for the tax effects of transactions reported in the Condensed Consolidated Financial Statements and consist of taxes currently due. Deferred taxes relate to differences between the basis of assets and liabilities for financial and income tax reporting which will be either taxable or deductible when the assets or liabilities are recovered or settled. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred income tax assets will not be realized. The ultimate realization of deferred income tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred income tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. Based on consideration of these items, management has established a full valuation allowance as it is more likely than not that the tax benefits will not be realized as of March 31, 2017.

Note 13 - Segments, Geographica

Note 13 - Segments, Geographical Information	3 Months Ended
	Mar. 31, 2017
Segment Reporting [Abstract]
Geographical Information	Note 13. Segments, Geographical Information The Company’s chief operating decision maker reviews financial information presented on a consolidated basis for purposes of allocating resources and evaluating financial performance. As such, the Company currently has a single reporting segment and operating unit structure. In addition, substantially all long-lived assets are attributable to operations in the U.S. for both periods presented. Revenue, net by geography is based on the company addresses of the customers. The following table sets forth revenue, net by geographic area (in thousands): For the Three Months Ended March 31, 2017 2016 Revenue, net: United States $ 17,590 $ 29,692 International 8,419 13,220 Total revenue, net $ 26,009 $ 42,912

Note 14 - Related Party Transac

Note 14 - Related Party Transactions	3 Months Ended
	Mar. 31, 2017
Related Party Transactions [Abstract]
Related Party Transactions	Chief Executive Officer, President and Chairman Convertible Secured Promissory Note Agreements and Debt Guaranty In November 2016, the Company entered into the 2016 Convertible Note with Mr. Ryan Drexler, pursuant to which Mr. Drexler loaned the Company $11.0 million. Proceeds from the note were used to fund settlement of litigation. The 2016 Convertible Note is secured by all assets and properties of the Company and its subsidiaries, whether tangible or intangible. The 2016 Convertible Note was still outstanding as of March 31, 2017. See Note 7 for additional information. In December 2015, the Company entered into the 2015 Convertible Note with Mr. Drexler, pursuant to which he loaned the Company $6.0 million. Proceeds from the note were used to fund working capital requirements. The convertible note is secured by all assets and properties of the Company and its subsidiaries whether tangible or intangible. In connection with the Company entering into the 2015 Convertible Note with Mr. Drexler, the Company granted Mr. Drexler the right to designate two directors to the Board. The Company agreed to take all actions necessary to permit such designation. The 2015 Convertible Note was still outstanding as of March 31, 2017. See additional information in Note 7. For the three months ended March 31, 2017 and 2016, interest expense related to the related party convertible secured promissory notes was $0.4 million and $0.1 million, respectively. During the three months ended March 31, 2017 and 2016, $0.4 million and $0.1 million, respectively, in interest was paid in cash to Mr. Drexler. Key Executive Life Insurance The Company had purchased split dollar life insurance policies on certain key executives. These policies provide a split of 50% of the death benefit proceeds to the Company and 50% to the officer’s designated beneficiaries. None of these key executives are currently employed by the Company, and all policies were terminated or transferred to the former employees as of December 31, 2016.

Note 15 - Subsequent Events

Note 15 - Subsequent Events	3 Months Ended
	Mar. 31, 2017
Subsequent Events [Abstract]
Subsequent Events	Note 15. Subsequent Events GAAP requires an entity to disclose events that occur after the balance sheet date but before financial statements are issued or are available to be issued (“subsequent events”) as well as the date through which an entity has evaluated subsequent events. There are two types of subsequent events. The first type consists of events or transactions that provide additional evidence about conditions that existed at the date of the balance sheet, including the estimates inherent in the process of preparing financial statements, (“recognized subsequent events”). The second type consists of events that provide evidence about conditions that did not exist at the date of the balance sheet but arose subsequent to that date (“non-recognized subsequent events”). Recognized Subsequent Events None. Unrecognized Subsequent Events None.

Summary of Significant Accounti

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2017
Accounting Policies [Abstract]
Basis of Presentation and Principles of Consolidation	Basis of Presentation and Principles of Consolidation The accompanying Condensed Consolidated Financial Statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”). The Condensed Consolidated Financial Statements include the accounts of MusclePharm Corporation and its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation.
Use of Estimates	Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported and disclosed in the consolidated financial statements and accompanying notes. Such estimates include, but are not limited to, allowance for doubtful accounts, revenue discounts and allowances, the valuation of inventory and tax assets, the assessment of useful lives, recoverability and valuation of long-lived assets, likelihood and range of possible losses on contingencies, restructuring liabilities, valuations of equity securities and intangible assets, fair value of derivatives, warrants and options, among others. Actual results could differ from those estimates.
Unaudited Interim Financial Information	Unaudited Interim Financial Information The accompanying unaudited interim Condensed Consolidated Financial Statements have been prepared in accordance with GAAP and with the instructions to Form 10-Q and Article 10 of Regulation S-X for interim financial information. Accordingly, these statements do not include all of the information and notes required by GAAP for complete financial statements. The Company’s management believes the unaudited interim Condensed Consolidated Financial Statements include all adjustments of a normal recurring nature necessary for the fair presentation of the Company’s financial position as of March 31, 2017, results of operations for the three months ended March 31, 2017 and 2016, and cash flows for the three months ended March 31, 2017 and 2016. The results of operations for the three ended March 31, 2017 are not necessarily indicative of the results to be expected for the year ending December 31, 2017. These unaudited interim Condensed Consolidated Financial Statements should be read in conjunction with the consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016, filed with the SEC on March 15, 2017.
Revenue Recognition	Revenue Recognition Revenue is recognized when all of the following criteria are met: · Persuasive evidence of an arrangement exists. · Delivery has occurred. · The fee is fixed or determinable. · Collection is reasonably assured. The Company’s standard terms and conditions of sale allow for product returns or replacements in certain cases. Estimates of expected future product returns are recognized at the time of sale based on analyses of historical return trends by customer type. Upon recognition, the Company reduces revenue and cost of revenue for the estimated return. Return rates can fluctuate over time, but are sufficiently predictable with established customers to allow the Company to estimate expected future product returns, and an accrual is recorded for future expected returns when the related revenue is recognized. Product returns incurred from established customers were insignificant for the three months ended March 31, 2017 and 2016, respectively. The Company offers sales incentives through various programs, consisting primarily of advertising related credits, volume incentive rebates, and sales incentive reserves. The Company records advertising related credits with customers as a reduction to revenue as no identifiable benefit is received in exchange for credits claimed by the customer. Volume incentive rebates are provided to certain customers based on contractually agreed upon percentages once certain thresholds have been met. Sales incentive reserves are computed based on historical trending and budgeted discount percentages, which are typically based on historical discount rates with adjustments for any known changes, such as future promotions or one-time historical promotions that will not repeat for each customer. The Company records sales incentive reserves and volume rebate reserves as a reduction to revenue. During the three months ended March 31, 2017 and 2016, the Company recorded discounts, and to a lesser degree, sales returns, totaling $8.0 million and $8.1 million, respectively, which accounted for 23% and 16% of gross revenue in each period, respectively.
Customer Concentration Risk Percentage	Concentrations Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and accounts receivable. The Company minimizes its credit risk associated with cash by periodically evaluating the credit quality of its primary financial institution. The cash balance at times may exceed federally insured limits. Management believes the financial risk associated with these balances is minimal and has not experienced any losses to date. Significant customers are those which represent more than 10% of the Company’s net revenue for each period presented. For each significant customer, revenue as a percentage of total revenue is as follows: Percentage of Net Revenue for the Three Months Ended March 31, 2017 2016 Customers Costco Wholesale Corporation 35 % 16 % GNC Holdings Inc. * 12 % Bodybuilding.com * 11 % * Represents less than 10% of net revenue.
Share-Based Payments and Stock-Based Compensation	Share-Based Payments and Stock-Based Compensation Share-based compensation awards, including stock options and restricted stock awards, are recorded at estimated fair value on the applicable award’s grant date, based on estimated number of awards that are expected to vest. The grant date fair value is amortized on a straight-line basis over the time in which the awards are expected to vest, or immediately if no vesting is required. Share-based compensation awards issued to non-employees for services are recorded at either the fair value of the services rendered or the fair value of the share-based payments whichever is more readily determinable. The fair value of restricted stock awards is based on the fair value of the stock underlying the awards on the grant date as there is no exercise price. The fair value of stock options is estimated using the Black-Scholes option-pricing model. The determination of the fair value of each stock award using this option-pricing model is affected by the Company’s assumptions regarding a number of complex and subjective variables. These variables include, but are not limited to, the expected stock price volatility over the term of the awards and the expected term of the awards based on an analysis of the actual and projected employee stock option exercise behaviors and the contractual term of the awards. Due to the Company’s limited experience with the expected term of options, the simplified method was utilized in determining the expected option term as prescribed in Staff Accounting Bulletin No. 110. The Company recognizes stock-based compensation expense over the requisite service period, which is generally consistent with the vesting of the awards, based on the estimated fair value of all stock-based payments issued to employees and directors that are expected to vest.
Recent Accounting Pronouncements	Recent Accounting Pronouncements During August 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-15, Statement of Cash Flows - Classification of Certain Cash Receipts and Cash Payments In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers Revenue Recognition Revenue Recognition- Construction-Type and Production-Type Contracts Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date In March 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients In March 2016, the FASB issued ASU No. 2016-09, Compensation – Stock Compensation (Topic 718) In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) Leases In July 2015, the FASB issued ASU No. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory

Note 4 - Restructuring (Tables)

Note 4 - Restructuring (Tables)	3 Months Ended
	Mar. 31, 2017
Restructuring and Related Activities [Abstract]
Schedule of Provision of Restructuring and Accrued Restructuring Charges	The following table illustrates the provision of the restructuring charges and the accrued restructuring charges balance as of March 31, 2017 (in thousands): Contract Termination Costs Purchase Commitment of Discontinued Inventories Not Yet Received Abandoned Lease Facilities Total Balance as of December 31, 2016 $ 308 $ 175 $ 339 $ 822 Expensed — — — — Cash payments — — (72 ) (72 ) Balance as of March 31, 2017 308 175 267 750
Schedule of Future Payments Under The Restructuring Plan	The total future payments under the restructuring plan as of March 31, 2017 are as follows (in thousands): For the Year Ending December 31, Outstanding Payments Remainder of 2017 2018 2019 2020 2021 Total Contract termination costs $ 308 $ — $ — $ — $ — $ 308 Purchase commitment of discontinued inventories not yet received 175 — — — — 175 Abandoned leased facilities 59 92 91 25 — 267 Total future payments $ 542 $ 92 $ 91 $ 25 $ — $ 750

Note 5 - Balance Sheet Compon26

Note 5 - Balance Sheet Components (Tables)	3 Months Ended
	Mar. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Schedule of Inventory	Inventory consisted of the following as of March 31, 2017 and December 31, 2016 (in thousands): As of March 31, 2017 As of December 31, 2016 Raw materials $ — $ — Work-in-process — — Finished goods 6,114 8,568 Inventory $ 6,114 $ 8,568
Schedule of Property, Plant and Equipment	Property and equipment consisted of the following as of March 31, 2017 and December 31, 2016 (in thousands): As of March 31, 2017 As of December 31, 2016 Furniture, fixtures and equipment $ 3,561 $ 3,521 Leasehold improvements 2,504 2,504 Manufacturing and lab equipment 3 3 Vehicles 209 334 Displays 483 483 Website 462 462 Construction in process 36 55 Property and equipment, gross 7,258 7,362 Less: accumulated depreciation and amortization (4,405 ) (4,119 ) Property and equipment, net $ 2,853 $ 3,243
Schedule of Intangible Assets	Intangible assets consisted of the following (in thousands): As of March 31, 2017 Gross Value Accumulated Net Remaining Weighted- Amortized Intangible Assets Brand $ 2,244 $ (686 ) $ 1,558 4.9 Total intangible assets $ 2,244 $ (686 ) $ 1,558 As of December 31, 2016 Gross Value Accumulated Net Remaining Weighted- Amortized Intangible Assets Brand $ 2,244 $ (606 ) $ 1,638 5.1 Total intangible assets $ 2,244 $ (606 ) $ 1,638
Schedule of Estimated Future Amortization Expense of Intangible Assets	As of March 31, 2017, the estimated future amortization expense of intangible assets is as follows (in thousands): For the Year Ending December 31, 2017 $ 241 2018 321 2019 321 2020 321 2021 321 Thereafter 33 Total amortization expense $ 1,558

Note 6 - Other Expense, net (Ta

Note 6 - Other Expense, net (Tables)	3 Months Ended
	Mar. 31, 2017
Other Income and Expenses [Abstract]
Other Expense, net	For the three months ended March 31, 2017 and 2016, “Other expense, net” consisted of the following (in thousands): For the Three Months Ended March 31, 2017 2016 Other expense, net: Interest expense, related party $ (422 ) $ (121 ) Interest expense, other (159 ) (44 ) Interest expense, secured borrowing arrangement (104 ) (354 ) Foreign currency transaction (loss) gain (12 ) 103 Other (281 ) (296 ) Total other expense, net $ (978 ) $ (712 )

Note 7 - Debt (Tables)

Note 7 - Debt (Tables)	3 Months Ended
	Mar. 31, 2017
Debt Disclosure [Abstract]
Schedule of Long Term Debt	As of March 31, 2017 and December 31, 2016, the Company’s debt consisted of the following (in thousands): As of March 31, 2017 As of December 31,2016 2015 Convertible Note due November 2017 with a related party $ 6,000 $ 6,000 2016 Convertible Note due November 2017 with a related party, net of discount 10,618 10,465 Obligations under secured borrowing arrangement 1,816 2,681 Total debt 18,434 19,146 Less: current portion (18,434 ) (19,146 ) Long term debt $ — $ —

Note 8 - Commitments and Cont29

Note 8 - Commitments and Contingencies (Tables)	3 Months Ended
	Mar. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
Schedule of Future Minimum Rental Payments for Operating Leases	As of March 31, 2017, future minimum lease payments are as follows (in thousands): For the Year Ending December 31, Remainder of 2017 $ 327 2018 418 2019 392 2020 268 2021 — Thereafter — Total minimum lease payments $ 1,405
Schedule of Future Minimum Lease Payments for Capital Leases	As of March 31, 2017, the Company’s future minimum lease payments under capital lease agreements, are as follows (in thousands): For the Year Ending December 31, Remainder of 2017 $ 133 2018 161 2019 113 2020 51 2021 — Total minimum lease payments 458 Less amounts representing interest (31 ) Present value of minimum lease payments $ 427
Contractual Obligation, Fiscal Year Maturity Schedule	The Company has various non-cancelable endorsement and sponsorship agreements with terms expiring through 2019. The total value of future contractual payments as of March 31, 2017 are as follows (in thousands): For the Year Ending December 31, Remainder of 2017 2018 2019 2020 2021 Thereafter Total Outstanding Payments Endorsement $ 184 $ 2 $ — $ — $ — $ — $ 186 Sponsorship 1,810 2,460 1,040 — — — 5,310 Total future payments $ 1,994 $ 2,462 $ 1,040 $ — $ — $ — $ 5,496

Note 9 - Stockholders' Deficit

Note 9 - Stockholders' Deficit (Tables)	3 Months Ended
	Mar. 31, 2017
Equity [Abstract]
Schedule of Stockholders Equity	For the three months ended March 31, 2017, the Company had the following transactions related to its common stock including restricted stock awards (in thousands, except share and per share data): Transaction Type Quantity (Shares) Valuation ($) Range of Value per Share Stock issued to employees, executives and directors 350,000 $ 686 $ 1.96 Total 350,000 $ 686 $ 1.96 For the three months ended March 31, 2016, the Company issued common stock including restricted stock awards, as follows (in thousands, except share and per share data): Transaction Type Quantity (Shares) Valuation ($) Range of Value per Share Stock issued to employees, executives and directors 145,245 $ 289 $ 1.89-2.21 Total 145,245 $ 289 $ 1.89-2.21

Note 10 - Stock-Based Compens31

Note 10 - Stock-Based Compensation (Tables)	3 Months Ended
	Mar. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of Restricted Stock Units Activity	The Company’s stock-based compensation for the three months ended March 31, 2017 and 2016 consist primarily of restricted stock awards. The activity of restricted stock awards granted to employees, executives and Board members was as follows: Unvested Restricted Stock Awards Number of Shares Weighted Average Grant Date Fair Value Unvested balance – December 31, 2016 378,425 $ 3.45 Granted 350,000 1.96 Vested (58,255 ) 2.99 Cancelled — — Unvested balance – March 31, 2017 670,170 2.71
Black-Sholes assumptions	The table below sets forth the assumptions used in valuing such options. For the Year Ended December 31, 2016 Expected term of options 6.5 years Expected volatility 131.0% Risk-free interest rate 1.71% Expected dividend yield 0.0%

Note 11 - Net Loss per Share (T

Note 11 - Net Loss per Share (Tables)	3 Months Ended
	Mar. 31, 2017
Earnings Per Share [Abstract]
Schedule of Basic and Diluted Net Loss Per Share	The following table sets forth the computation of the Company’s basic and diluted net loss per share for the periods presented (in thousands, except share and per share data): For the Three Months Ended March 31, 2017 2016 Net loss $ (3,149 ) $ (6,605 ) Weighted average common shares used in computing net loss per share, basic and diluted 13,773,508 13,896,876 Net loss per share, basic and diluted $ (0.23 ) $ (0.48 )
Antidilutive Securities Excluded from Computation of Diluted Earnings Per Share	Total outstanding potentially dilutive securities were comprised of the following: As of March 31, 2017 2016 Stock options 192,307 192,307 Warrants 1,389,378 100,000 Unvested restricted stock 670,170 350,999 Convertible notes 8,619,624 2,608,695 Total common stock equivalents 10,871,479 3,252,001

Note 13 - Segments, Geographi33

Note 13 - Segments, Geographical Information (Tables)	3 Months Ended
	Mar. 31, 2017
Segment Reporting [Abstract]
Revenue, Net by Geographic Area	Revenue, net by geography is based on the company addresses of the customers. The following table sets forth revenue, net by geographic area (in thousands): For the Three Months Ended March 31, 2017 2016 Revenue, net: United States $ 17,590 $ 29,692 International 8,419 13,220 Total revenue, net $ 26,009 $ 42,912

Note 1 - Description of Busin34

Note 1 - Description of Business - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Dec. 31, 2016	Mar. 31, 2016	Dec. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Accumulated deficit	$ (154,143)	$ (150,994)
Maximum amount of secured borrowing arrangement	10,000
Cash	3,016	4,943	$ 9,054	$ 7,081
Working capital deficit	11,500
Cash received on account of sale of accounts	4,400
Repayments on secrued borrowing arrangement	5,100
Convertible notes with a related party, net of discount	16,618	$ 16,465
Total liabilities	$ 38,525

Note 2 - Accounting Policies (D

Note 2 - Accounting Policies (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Note 2 - Accounting Policies Detail
Sales returns and discounts	$ 8,000	$ 8,100
Sales returns and discounts as a percentage of sales	23.00%	16.00%

Note 2 - Accounting Policies -

Note 2 - Accounting Policies - Customer Concentration Risk Percentage (Detail) - Customer Concentration Risk [Member] - Sales Revenue, Net [Member]	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Costco [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	35.00%	16.00%
BodyBuilding.com
Concentration Risk [Line Items]
Concentration Risk, Percentage		11.00%
General Nutrition Corp [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage		12.00%

Note 4 - Restructuring - Additi

Note 4 - Restructuring - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Restructuring Cost and Reserve [Line Items]
Restructuring and other charges	$ 0	$ 574
Inventory write down related to restructuring	0	1,662
Restructuring charges to be paid in cash	$ 750		$ 822
Restructuring commencement date	Aug. 24, 2015
Purchase Commitment [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges to be paid in cash	$ 175		175
Facility Closing [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges to be paid in cash	267		339
Contract Termination [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges to be paid in cash	$ 308		$ 308
Cost of Sales [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and other charges		574
Inventory write down related to restructuring		$ 1,662

Restructuring - Schedule of Pro

Restructuring - Schedule of Provision of Restructuring and Accrued Restructuring Charges (Detail) $ in Thousands	3 Months Ended
	Mar. 31, 2017USD ($)
Restructuring Cost and Reserve [Line Items]
Beginning Balance	$ 822
Balance	750
Contract Termination [Member]
Restructuring Cost and Reserve [Line Items]
Beginning Balance	308
Balance	308
Other Restructuring [Member]
Restructuring Cost and Reserve [Line Items]
Beginning Balance	175
Balance	175
Facility Closing [Member]
Restructuring Cost and Reserve [Line Items]
Beginning Balance	339
Cash payments	(72)
Balance	$ 267

Restructuring - Schedule of Fut

Restructuring - Schedule of Future Payments Under The Restructuring Plan (Detail) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Restructuring Cost and Reserve [Line Items]
Remainder of 2017	$ 542	$ 614
2,018	92	92
2,019	91	91
2,020	25	25
Total	750	822
Contract Termination [Member]
Restructuring Cost and Reserve [Line Items]
Remainder of 2017	308	308
Total	308	308
Facility Closing [Member]
Restructuring Cost and Reserve [Line Items]
Remainder of 2017	59	131
2,018	92	92
2,019	91	91
2,020	25	25
Total	267	339
Other Restructuring [Member]
Restructuring Cost and Reserve [Line Items]
Remainder of 2017	175	175
Total	$ 175	$ 175

Note 5 - Balance Sheet Compon40

Note 5 - Balance Sheet Components - Schedule of Inventory (Detail) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Inventory, Net [Abstract]
Raw materials	$ 0	$ 0
Work-in-process	0	0
Finished goods	6,114	8,568
Inventory	$ 6,114	$ 8,568

Balance Sheet Components - Addi

Balance Sheet Components - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Balance Sheet Related Disclosures [Abstract]
Inventory write down related to corporate restructuring	$ 0	$ 1,662
Depreciation and amortization expense	300	400
Amortization of intangible assets	100	$ 200
Finite-Lived Intangible Assets, Gross	2,244		$ 2,244
Finite-Lived intangible assets, net	$ 1,558		$ 1,638

Note 5 - Balance Sheet Compon42

Note 5 - Balance Sheet Components - Schedule of Property, Plant and Equipment (Detail) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 7,258	$ 7,362
Less: accumulated depreciation and amortization	(4,405)	(4,119)
Property and equipment, net	2,853	3,243
Construction in Progress [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	36	55
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	2,504	2,504
Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	3,561	3,521
Vehicles [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	209	334
Manufacturing And Lab Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	3	3
Displays [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	483	483
Website [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 462	$ 462

Note 5 - Balance Sheet Compon43

Note 5 - Balance Sheet Components - Schedule of Intangible Assets (Detail) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	$ 2,244	$ 2,244
Finite-Lived Intangible Assets, Accumulated Amortization	(686)	(606)
Finite-Lived Intangible Assets, Net, Total	1,558	1,638
Trade Names [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	2,244	2,244
Finite-Lived Intangible Assets, Accumulated Amortization	(686)	(606)
Finite-Lived Intangible Assets, Net, Total	$ 1,558	$ 1,638
Finite-Lived Intangible Asset, Remaining Useful Life	4 years 11 months	5 years 5 months

Balance Sheet Components - Sche

Balance Sheet Components - Schedule of Estimated Future Amortization Expense of Intangible Assets (Detail) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
2,017	$ 241
2,018	321
2,019	321
2,020	321
2,021	321
Thereafter	33
Finite-Lived Intangible Assets, Net, Total	$ 1,558	$ 1,638

Note 6 - Other Expense, net - O

Note 6 - Other Expense, net - Other Expense, net (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Other expense, net
Interest expense, related party	$ (422)	$ (121)
Interest expense, other	(159)	(44)
Interest expense, secured borrowing arrangement	(104)	(354)
Foreign currency transaction gain (loss)	(12)	103
Other	(281)	(296)
Total other expense, net	$ (978)	$ (712)

Note 7 - Debt - Schedule of Lon

Note 7 - Debt - Schedule of Long Term Debt (Detail) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Debt Disclosure [Abstract]
2015 Convertible Note due January 2017 with a related party, net of discount	$ 6,000	$ 6,000
2016 Convertible Note due November 2017 with a related party, net of discount	10,618	10,465
Obligations under secured borrowing arrangement	1,816	2,681
Total debt	18,434	19,146
Less: current portion	(18,434)	(19,146)
Long term debt	$ 0	$ 0

Debt - Additional Information (

Debt - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended			3 Months Ended		12 Months Ended
	Jan. 31, 2017	Nov. 30, 2016	Jan. 31, 2016	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2015	Dec. 31, 2016
Debt Instrument [Line Items]
2015 Convertible Note due January 2017 with a related party				$ 6,000			$ 6,000
2016 Convertible Note due November 2017 with a related party				10,618			$ 10,465
Interest expense, related party				422	$ 121
Cash paid for interest to related party				400	$ 100
Maximum amount of secured borrowing arrangement				10,000
Cash received on account of sale of accounts				4,400
Repayments of account receivable sale				$ 5,100
Executive Chairman Of Board Of Directors Convertible Secured Promissory Note Agreement [Member]
Debt Instrument [Line Items]
Interest on convertible note		10.00%
2016 Convertible Note due November 2017 with a related party		$ 11,000
Debt Instrument, Convertible, Conversion Price		$ 1.83
Common stock reserved for future conversion		6,010,929
Debt Instrument, Defaulted Interest Rate, Stated Percentage		12.00%
Debt instrument, maturity period		2017-11
Debt discount upon issuance of the convertible note		$ 601
Loan Modification Agreement [Member]
Debt Instrument [Line Items]
Interest on convertible note	10.00%
Debt Instrument, Defaulted Interest Rate, Stated Percentage	12.00%
A N B Bank [Member] | Executive Chairman Of Board Of Directors Convertible Secured Promissory Note Agreement [Member] | Interim Chief Executive Officer President And Chairman [Member]
Debt Instrument [Line Items]
Interest on convertible note						8.00%
2015 Convertible Note due January 2017 with a related party						$ 6,000
Debt Instrument, Convertible, Conversion Price						$ 2.30
Debt Instrument, Defaulted Interest Rate, Stated Percentage						10.00%
Debt instrument, maturity period						2017-11
Debt discount upon issuance of the convertible note						$ 52
A N B Bank [Member] | Convertible Debt Securities [Member] | Executive Chairman Of Board Of Directors Convertible Secured Promissory Note Agreement [Member]
Debt Instrument [Line Items]
Common stock reserved for future conversion						2,608,695
Prestige Capital Corporation [Member]
Debt Instrument [Line Items]
Debt Instrument Maturity Date				Sep. 27, 2017
Percent of net face amount of assigned accounts receivable			80.00%
Percent of remaining face amount of assigned accounts receivable			20.00%
Prestige Capital Corporation [Member] | Maximum [Member]
Debt Instrument [Line Items]
Maximum amount of secured borrowing arrangement			$ 10,000

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail) $ in Thousands	1 Months Ended		3 Months Ended		12 Months Ended
	Jan. 31, 2017USD ($)shares	May 31, 2016USD ($)	Mar. 31, 2017USD ($)Vehicle	Mar. 31, 2016USD ($)	Dec. 31, 2016USD ($)Vehicle
Commitment And Contingencies [Line Items]
Operating Lease Expire Term			2,020
Operating Leases, Rent Expense, Net			$ 100	$ 300
Capital Lease Expire Term			2020-02
Capital lease - short term			$ 157		$ 173
Capital Lease Obligations, Noncurrent			$ 270		332
Sponsorship and endorsement contract term			2,019
IRS Determination Letter taxes and penalties			$ 5,300
Marine MP LLC [Member]
Commitment And Contingencies [Line Items]
Shares held by Marine MP | shares	780,000
Payment for shares held by Marine MP	$ 1,677
Marine MP cash settlement	1,000
Additional settlement payment to Marine MP if default	1,000
Total settlement value	$ 4,000
Two Thousand and Fourteen Lease Agreement [Member]
Commitment And Contingencies [Line Items]
Capital Leases, Lessee Balance Sheet, Assets by Major Class, Accumulated Depreciation			90		126
Vehicles [Member]
Commitment And Contingencies [Line Items]
Original cost of property acquired under capital lease			$ 205		$ 330
Fleet Lease Program [Member]
Commitment And Contingencies [Line Items]
Number of vehicles acquired under capital lease | Vehicle			6		10
Bio Zone [Member]
Commitment And Contingencies [Line Items]
Purchase commitment if annual minimum not met		$ 1,900
Purchase commitment if annual minimum not met		$ 3,000
Percentage paid on shortfall of minimum purchase amount		25.00%
Manchester City LLC [Member]
Commitment And Contingencies [Line Items]
Loss contingency damage sought value			$ 8,300
Marine MP LLC [Member]
Commitment And Contingencies [Line Items]
Marine MP cash settlement due within six months			2,000
Employment Tax Member
Commitment And Contingencies [Line Items]
IRS Determination Letter taxes and penalties			400
Federal Withholding Tax Member
Commitment And Contingencies [Line Items]
IRS Determination Letter taxes and penalties			$ 4,900

Commitments and Contingencies49

Commitments and Contingencies - Schedule of Future Minimum Rental Payments for Operating Leases (Detail) $ in Thousands	Mar. 31, 2017USD ($)
Year Ending December 31,
Remainder of 2017	$ 327
2,018	418
2,019	392
2,020	268
Total minimum lease payments	$ 1,405

Commitments and Contingencies50

Commitments and Contingencies - Schedule of Future Minimum Lease Payments for Capital Leases (Detail) $ in Thousands	Mar. 17, 2017USD ($)
Commitments and Contingencies Disclosure [Abstract]
Remainder of 2017	$ 133
2,018	161
2,019	113
2,020	51
Total minimum lease payments	458
Less amounts representing interest	(31)
Present value of minimum lease payments	$ 427

Commitments and Contingencies51

Commitments and Contingencies - Contractual Obligation, Fiscal Year Maturity Schedule (Detail) $ in Thousands	Mar. 31, 2017USD ($)
Contractual Obligation Fiscal Year Maturity [Line Items]
Remainder of 2017	$ 1,994
2,018	2,462
2,019	1,040
2,020	0
Thereafter	0
Contractual Obligation, Total future payments	5,496
Sponsorship [Member]
Contractual Obligation Fiscal Year Maturity [Line Items]
Remainder of 2017	1,810
2,018	2,460
2,019	1,040
2,020	0
Thereafter	0
Contractual Obligation, Total future payments	5,310
Endorsement [Member]
Contractual Obligation Fiscal Year Maturity [Line Items]
Remainder of 2017	184
2,018	2
2,019	0
2,020	0
Thereafter	0
Contractual Obligation, Total future payments	$ 186

Note 9 - Stockholders' Equity -

Note 9 - Stockholders' Equity - Schedule of Stockholders Equity (Detail) - Common Stock - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Class of Stock [Line Items]
Stock issued to employees, executives and directors, Quantity	350,000	145,245
Total, Quantity	350,000	145,245
Stock issued to employees, executives and directors, Valuation	$ 686	$ 289
Total, Valuation	$ 686	$ 289
Minimum [Member]
Class of Stock [Line Items]
Stock issued to employees, executives and directors, Range of Value per Share	$ 1.96	$ 1.89
Total, Range of Value per Share	1.96	1.89
Maximum [Member]
Class of Stock [Line Items]
Stock issued to employees, executives and directors, Range of Value per Share	1.96	2.21
Total, Range of Value per Share	$ 1.96	$ 2.21

Note 9 - Stockholders' Equity53

Note 9 - Stockholders' Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	3 Months Ended	12 Months Ended
	Nov. 30, 2016	Mar. 31, 2017	Dec. 31, 2016	Nov. 07, 2016
Treasury Stock, shares		875,621	875,621
Warrants vested		58,255
I N I [Member]
Capstone settlement warrants			1,289,378
Capstone settlement warrants exercise price				$ 1.83
Capstone settlement warrants fair value				$ 1,800
Expected term (in years)	4 years
Fair value of warrants, assumption, risk free interest rate	1.27%
Fair value of warrants, assumption, dividend yield	0.00%
Fair value of warrants, assumption, expected volatility	118.40%

Note 10 - Stock-Based Compens54

Note 10 - Stock-Based Compensation - Schedule of Restricted Stock Units Activity (Detail)	3 Months Ended
	Mar. 31, 2017$ / sharesshares
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Number of Shares, Unvested Beginning Balance | shares	378,425
Number of Shares, Granted | shares	350,000
Number of Shares, Vested | shares	(58,255)
Number of Shares, Unvested Ending Balance | shares	670,170
Weighted-Average Grant Date Fair Value, Unvested Beginning Balance | $ / shares	$ 3.45
Weighted-Average Grant Date Fair Value, Granted | $ / shares	1.96
Weighted-Average Grant Date Fair Value, Vested | $ / shares	2.99
Weighted-Average Grant Date Fair Value, Unvested Ending Balance | $ / shares	$ 2.71

Note 10 - Stock-Based Compens55

Note 10 - Stock-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	3 Months Ended
	Feb. 29, 2016	Mar. 31, 2017	Mar. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation		$ 607	$ 4,670
Former Chief Executive Officer [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Severance cost			1,100
Lump sum payment for severance pay			$ 250
Unvested restricted stock awards, remaining number of shares			500,000
Former Chief Executive Officer [Member] | Salaries And Benefits [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Accelerated former CEO stock compensation expense			$ 3,900
Former Chief Executive Officer [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Period for severance pay			12 months
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock awards granted		700	$ 300
Total unrecognized expense for unvested restricted stock awards		$ 1,300
Total unrecognized expense for unvested restricted stock awards, weighted average period (in years)		1 year 2 months
Stock-based compensation		$ 100	$ 14
Restricted stock awards grant date fair value		$ 700
Stock Compensation Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options contractual term	10 years
Fair value of options granted	$ 300
Vesting period	2 years
Stock Compensation Plan [Member] | Interim Chief Executive Officer President And Chairman [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock option plan, shares granted during period	137,362
Stock option exercise price	$ 1.89
Stock option grant date fair value per share	$ 1.72
Stock Compensation Plan [Member] | Lead Director Of The Board Of Directors [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock option plan, shares granted during period	54,945
Stock option exercise price	$ 1.89
Stock option grant date fair value per share	$ 1.72

Net Loss per Share - Schedule o

Net Loss per Share - Schedule of Basic and Diluted Net Loss Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Income Statement [Abstract]
Net loss	$ (3,149)	$ (6,605)
Weighted-average common shares used in computing net loss per share, basic and diluted	13,773,508	13,896,876
Net loss per share, basic and diluted	$ (0.23)	$ (.48)

Net Loss per Share - Antidiluti

Net Loss per Share - Antidilutive Securities Excluded from Computation of Diluted Earnings Per Share (Detail) - shares	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potentially dilutive securities outstanding	10,871,479	3,252,001
Dilutive securities	8,690,710	2,608,695
Restricted Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potentially dilutive securities outstanding	670,170	350,999
Dilutive securities	0
Employee Stock Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potentially dilutive securities outstanding	192,307	192,307
Dilutive securities	0	0
Warrant [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potentially dilutive securities outstanding	1,389,378	100,000
Dilutive securities	71,086	0
Convertible Debt Securities [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potentially dilutive securities outstanding	8,619,624	2,608,695
Dilutive securities	8,619,624	2,608,695

Note 12 - Income Taxes - Additi

Note 12 - Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Income Tax Disclosure [Abstract]
Provision for income taxes	$ 28	$ 131

Geographical Information - Reve

Geographical Information - Revenue, Net by Geographic Area (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Revenue, net:
Revenue, net	$ 26,009	$ 42,912
UNITED STATES
Revenue, net:
Revenue, net	17,590	29,692
International [Member]
Revenue, net:
Revenue, net	$ 8,419	$ 13,220

Note 14 - Related Party Trans60

Note 14 - Related Party Transactions (Details Narrative) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016	Nov. 30, 2016	Dec. 31, 2015
Split of death benefit proceeds			50.00%
2016 Convertible Note due November 2017 with a related party	$ 10,618		$ 10,465
Interest expense, related party	422	$ 121
Cash paid for interest to related party	$ 400	$ 100
Executive Chairman Of Board Of Directors Convertible Secured Promissory Note Agreement [Member]
2016 Convertible Note due November 2017 with a related party				$ 11,000
Executive Chairman Of Board Of Directors Convertible Secured Promissory Note Agreement [Member] | A N B Bank [Member] | Interim Chief Executive Officer President And Chairman [Member]
Convertible note with a related party, net of discount, long term					$ 6,000