10-Q 1 marquie_i10q-113022.htm QUARTERLY REPORT
0001434601 false --05-31 2023 Q2 0001434601 2022-06-01 2022-11-30 0001434601 2023-01-13 0001434601 2022-11-30 0001434601 2022-05-31 0001434601 2022-09-01 2022-11-30 0001434601 2021-09-01 2021-11-30 0001434601 2021-06-01 2021-11-30 0001434601 us-gaap:PreferredStockMember 2022-05-31 0001434601 us-gaap:CommonStockMember 2022-05-31 0001434601 TMGI:CommonStockPayableMember 2022-05-31 0001434601 us-gaap:AdditionalPaidInCapitalMember 2022-05-31 0001434601 us-gaap:RetainedEarningsMember 2022-05-31 0001434601 us-gaap:PreferredStockMember 2022-08-31 0001434601 us-gaap:CommonStockMember 2022-08-31 0001434601 TMGI:CommonStockPayableMember 2022-08-31 0001434601 us-gaap:AdditionalPaidInCapitalMember 2022-08-31 0001434601 us-gaap:RetainedEarningsMember 2022-08-31 0001434601 2022-08-31 0001434601 us-gaap:PreferredStockMember 2021-05-31 0001434601 us-gaap:CommonStockMember 2021-05-31 0001434601 TMGI:CommonStockPayableMember 2021-05-31 0001434601 us-gaap:AdditionalPaidInCapitalMember 2021-05-31 0001434601 us-gaap:RetainedEarningsMember 2021-05-31 0001434601 2021-05-31 0001434601 us-gaap:PreferredStockMember 2021-08-31 0001434601 us-gaap:CommonStockMember 2021-08-31 0001434601 TMGI:CommonStockPayableMember 2021-08-31 0001434601 us-gaap:AdditionalPaidInCapitalMember 2021-08-31 0001434601 us-gaap:RetainedEarningsMember 2021-08-31 0001434601 2021-08-31 0001434601 us-gaap:PreferredStockMember 2022-06-01 2022-08-31 0001434601 us-gaap:CommonStockMember 2022-06-01 2022-08-31 0001434601 TMGI:CommonStockPayableMember 2022-06-01 2022-08-31 0001434601 us-gaap:AdditionalPaidInCapitalMember 2022-06-01 2022-08-31 0001434601 us-gaap:RetainedEarningsMember 2022-06-01 2022-08-31 0001434601 2022-06-01 2022-08-31 0001434601 us-gaap:PreferredStockMember 2022-09-01 2022-11-30 0001434601 us-gaap:CommonStockMember 2022-09-01 2022-11-30 0001434601 TMGI:CommonStockPayableMember 2022-09-01 2022-11-30 0001434601 us-gaap:AdditionalPaidInCapitalMember 2022-09-01 2022-11-30 0001434601 us-gaap:RetainedEarningsMember 2022-09-01 2022-11-30 0001434601 us-gaap:PreferredStockMember 2021-06-01 2021-08-31 0001434601 us-gaap:CommonStockMember 2021-06-01 2021-08-31 0001434601 TMGI:CommonStockPayableMember 2021-06-01 2021-08-31 0001434601 us-gaap:AdditionalPaidInCapitalMember 2021-06-01 2021-08-31 0001434601 us-gaap:RetainedEarningsMember 2021-06-01 2021-08-31 0001434601 2021-06-01 2021-08-31 0001434601 us-gaap:PreferredStockMember 2021-09-01 2021-11-30 0001434601 us-gaap:CommonStockMember 2021-09-01 2021-11-30 0001434601 TMGI:CommonStockPayableMember 2021-09-01 2021-11-30 0001434601 us-gaap:AdditionalPaidInCapitalMember 2021-09-01 2021-11-30 0001434601 us-gaap:RetainedEarningsMember 2021-09-01 2021-11-30 0001434601 us-gaap:PreferredStockMember 2022-11-30 0001434601 us-gaap:CommonStockMember 2022-11-30 0001434601 TMGI:CommonStockPayableMember 2022-11-30 0001434601 us-gaap:AdditionalPaidInCapitalMember 2022-11-30 0001434601 us-gaap:RetainedEarningsMember 2022-11-30 0001434601 us-gaap:PreferredStockMember 2021-11-30 0001434601 us-gaap:CommonStockMember 2021-11-30 0001434601 TMGI:CommonStockPayableMember 2021-11-30 0001434601 us-gaap:AdditionalPaidInCapitalMember 2021-11-30 0001434601 us-gaap:RetainedEarningsMember 2021-11-30 0001434601 2021-11-30 0001434601 TMGI:CEOAgreement2017Member 2022-11-30 0001434601 TMGI:CEOAgreement2017Member 2022-05-31 0001434601 TMGI:WifeOfCEOMember 2022-11-30 0001434601 TMGI:WifeOfCEOMember 2022-05-31 0001434601 TMGI:MotherOfCEOMember 2022-11-30 0001434601 TMGI:MotherOfCEOMember 2022-05-31 0001434601 TMGI:ServiceProviderMember 2022-11-30 0001434601 TMGI:ServiceProviderMember 2022-05-31 0001434601 TMGI:ServiceProvider1Member 2022-11-30 0001434601 TMGI:ServiceProvider1Member 2022-05-31 0001434601 TMGI:TwoOtherServiceProvidersMember 2022-11-30 0001434601 TMGI:TwoOtherServiceProvidersMember 2022-05-31 0001434601 2021-06-01 2022-05-31 0001434601 TMGI:NotePayable1Member 2022-11-30 0001434601 TMGI:NotePayable1Member 2022-05-31 0001434601 TMGI:NotePayable2Member 2022-11-30 0001434601 TMGI:NotePayable2Member 2022-05-31 0001434601 TMGI:NotePayable3Member 2022-11-30 0001434601 TMGI:NotePayable3Member 2022-05-31 0001434601 TMGI:NotePayable4Member 2022-11-30 0001434601 TMGI:NotePayable4Member 2022-05-31 0001434601 TMGI:NotePayable5Member 2022-11-30 0001434601 TMGI:NotePayable5Member 2022-05-31 0001434601 TMGI:NotePayable6Member 2022-11-30 0001434601 TMGI:NotePayable6Member 2022-05-31 0001434601 TMGI:NotePayable7Member 2022-11-30 0001434601 TMGI:NotePayable7Member 2022-05-31 0001434601 TMGI:NotePayable8Member 2022-11-30 0001434601 TMGI:NotePayable8Member 2022-05-31 0001434601 TMGI:NotePayable9Member 2022-11-30 0001434601 TMGI:NotePayable9Member 2022-05-31 0001434601 TMGI:NotePayable10Member 2022-11-30 0001434601 TMGI:NotePayable10Member 2022-05-31 0001434601 TMGI:NotePayable11Member 2022-11-30 0001434601 TMGI:NotePayable11Member 2022-05-31 0001434601 TMGI:NotePayable12Member 2022-11-30 0001434601 TMGI:NotePayable12Member 2022-05-31 0001434601 TMGI:NotePayable13Member 2022-11-30 0001434601 TMGI:NotePayable13Member 2022-05-31 0001434601 TMGI:NotePayable14Member 2022-11-30 0001434601 TMGI:NotePayable14Member 2022-05-31 0001434601 TMGI:NotePayable15Member 2022-11-30 0001434601 TMGI:NotePayable15Member 2022-05-31 0001434601 TMGI:NotePayable16Member 2022-11-30 0001434601 TMGI:NotePayable16Member 2022-05-31 0001434601 TMGI:NotePayable17Member 2022-11-30 0001434601 TMGI:NotePayable17Member 2022-05-31 0001434601 TMGI:NotePayable18Member 2022-11-30 0001434601 TMGI:NotePayable18Member 2022-05-31 0001434601 TMGI:NotePayable19Member 2022-11-30 0001434601 TMGI:NotePayable19Member 2022-05-31 0001434601 TMGI:NotePayable20Member 2022-11-30 0001434601 TMGI:NotePayable20Member 2022-05-31 0001434601 TMGI:NotePayable21Member 2022-11-30 0001434601 TMGI:NotePayable21Member 2022-05-31 0001434601 TMGI:NotePayable22Member 2022-11-30 0001434601 TMGI:NotePayable22Member 2022-05-31 0001434601 TMGI:NotePayable23Member 2022-11-30 0001434601 TMGI:NotePayable23Member 2022-05-31 0001434601 TMGI:NotePayable24Member 2022-11-30 0001434601 TMGI:NotePayable24Member 2022-05-31 0001434601 TMGI:NotePayable25Member 2022-11-30 0001434601 TMGI:NotePayable25Member 2022-05-31 0001434601 TMGI:NotePayable26Member 2022-11-30 0001434601 TMGI:NotePayable26Member 2022-05-31 0001434601 TMGI:LenderAMember 2022-11-30 0001434601 TMGI:LenderAMember 2022-05-31 0001434601 TMGI:LenderBMember 2022-11-30 0001434601 TMGI:LenderBMember 2022-05-31 0001434601 TMGI:OtherLenders14Member 2022-11-30 0001434601 TMGI:OtherLenders14Member 2022-05-31 0001434601 TMGI:CompanyLawFirmMember 2022-11-30 0001434601 TMGI:CompanyLawFirmMember 2022-05-31 0001434601 TMGI:OZCorporationMember 2022-11-30 0001434601 TMGI:OZCorporationMember 2022-05-31 0001434601 srt:ChiefExecutiveOfficerMember 2022-11-30 0001434601 srt:ChiefExecutiveOfficerMember 2022-05-31 0001434601 TMGI:WifeOfCEOMember 2022-11-30 0001434601 TMGI:WifeOfCEOMember 2022-05-31 0001434601 TMGI:JohnThomasMember 2022-11-30 0001434601 TMGI:JohnThomasMember 2022-05-31 0001434601 TMGI:ConvertibleNote1Member 2022-11-30 0001434601 TMGI:ConvertibleNote1Member 2022-05-31 0001434601 TMGI:ConvertibleNote2Member 2022-11-30 0001434601 TMGI:ConvertibleNote2Member 2022-05-31 0001434601 TMGI:ConvertibleNote3Member 2022-11-30 0001434601 TMGI:ConvertibleNote3Member 2022-05-31 0001434601 TMGI:ConvertibleNote4Member 2022-11-30 0001434601 TMGI:ConvertibleNote4Member 2022-05-31 0001434601 TMGI:ConvertibleNote5Member 2022-11-30 0001434601 TMGI:ConvertibleNote5Member 2022-05-31 0001434601 TMGI:ConvertibleNote6Member 2022-11-30 0001434601 TMGI:ConvertibleNote6Member 2022-05-31 0001434601 TMGI:ConvertibleNote7Member 2022-11-30 0001434601 TMGI:ConvertibleNote7Member 2022-05-31 0001434601 TMGI:ConvertibleNote8Member 2022-11-30 0001434601 TMGI:ConvertibleNote8Member 2022-05-31 0001434601 TMGI:ConvertibleNote9Member 2022-11-30 0001434601 TMGI:ConvertibleNote9Member 2022-05-31 0001434601 TMGI:ConvertibleNote10Member 2022-11-30 0001434601 TMGI:ConvertibleNote10Member 2022-05-31 0001434601 TMGI:ConvertibleNote11Member 2022-11-30 0001434601 TMGI:ConvertibleNote11Member 2022-05-31 0001434601 TMGI:LenderAMember 2022-11-30 0001434601 TMGI:LenderAMember 2022-05-31 0001434601 TMGI:LenderBMember 2022-11-30 0001434601 TMGI:LenderBMember 2022-05-31 0001434601 TMGI:LenderCMember 2022-11-30 0001434601 TMGI:LenderCMember 2022-05-31 0001434601 TMGI:LenderDMember 2022-11-30 0001434601 TMGI:LenderDMember 2022-05-31 0001434601 TMGI:OtherLenders5Member 2022-11-30 0001434601 TMGI:OtherLenders5Member 2022-05-31 0001434601 2020-06-01 2021-05-31 0001434601 2022-04-20 2022-04-21 0001434601 TMGI:SimplyWhimMember 2022-09-01 2022-11-30 iso4217:USD xbrli:shares iso4217:USD xbrli:shares xbrli:pure

Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 10-Q

 

(Mark One)
   
x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
   
For the quarterly period ended November 30, 2022
   
o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from ______to______

 

Commission File Number: 000-54163

 

The Marquie Group, Inc.
(Exact name of registrant as specified in its Charter)

  

Florida   26-2091212

(State or other jurisdiction of

incorporation or organization)

  (I.R.S. Employee Identification No.)
     

7901 4th ST N, Suite 4000

St. Petersburg, FL

  33702
(Address of principal executive office)   (Zip Code)

 

(800) 351-3021

(Registrant’s telephone number, including area code)

 

Not Applicable

(Former Name, former address and former fiscal year, if changed since last report)

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of Each Class Trading Symbol Name of Each Exchange on Which Registered
N/A N/A N/A

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the issuer was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.      Yes  ☒   No  ☐

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such & filings).     Yes  ☒   No  ☐

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer Accelerated filer
Non-accelerated filer Smaller reporting company
    Emerging growth company

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).      Yes ☐ No

 

Indicate the number of shares outstanding of each of the issuer’s classes of common stock as of the latest practicable date: As of January 13, 2023, there were 756,612,000 shares of $0.0001 par value common stock, issued and outstanding.

 

 

   

 

 

TABLE OF CONTENTS

 

PART I: FINANCIAL INFORMATION  
   
Item 1: Financial Statements 3
Item 2: Management’s Discussion and Analysis of Financial Condition and Results of Operation 18
Item 3: Quantitative and Qualitative Disclosures about Market Risk 20
Item 4: Controls and Procedures 20
   
PART II: OTHER INFORMATION  
   
Item 1: Legal Proceedings 21
Item 1A: Risk Factors 21
Item 2: Unregistered Sales of Equity Securities and Use of Proceeds 21
Item 3: Defaults Upon Senior Securities 21
Item 4: Mine Safety Disclosures 21
Item 5: Other Information 21
Item 6: Exhibits 21
   
SIGNATURES 22

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 2 

 

 

PART I - FINANCIAL INFORMATION

 

ITEM 1.  Financial Statements

 

THE MARQUIE GROUP, INC.

(formerly Music of Your Life, Inc.)

Consolidated Balance Sheets

(Unaudited and Unreviewed by Auditor)

 

 

   November 30,   May 31, 
   2022   2022 
ASSETS 
           
CURRENT ASSETS          
           
Cash and cash equivalents  $784   $353 
           
Total Current Assets   784    353 
           
OTHER ASSETS          
           
Investment in Acquisition   6,200,000     
Loans receivable, related party   9,247     
Music inventory, net of accumulated depreciation of $20,259 and $19,481, respectively   1,389    2,167 
Trademark costs   10,365    10,365 
           
Total Other Assets   6,221,001    12,532 
           
TOTAL ASSETS  $6,221,785   $12,885 
           
LIABILITIES AND STOCKHOLDERS' DEFICIT 
           
CURRENT LIABILITIES          
           
Accounts payable  $71,318   $35,405 
Accrued interest payable on notes payable   397,989    334,180 
Accrued consulting fees   1,036,917    926,217 
Notes payable, net of debt discounts of $30,890 and $6,889, respectively   1,414,542    1,419,108 
Notes payable to related parties   2,073,451    135,551 
Derivative liability   2,814,786    2,817,101 
           
Total Current Liabilities   7,809,003    5,667,562 
           
TOTAL LIABILITIES   7,809,003    5,667,562 
           
STOCKHOLDERS' DEFICIT          
           
Preferred Stock, $0.0001 par value; 20,000,000 shares authorized, 200 and 200 shares issued and outstanding        
Common stock, $0.0001 par value; 50,000,000,000 shares authorized, 756,612,000 and 16,189,732 shares issued and outstanding, respectively   75,663    1,621 
Common stock payable - 1 share   8,460    8,460 
Additional paid-in-capital   14,486,896    10,213,431 
Accumulated deficit   (16,158,237)   (15,878,189)
           
Total Stockholders' Deficit   (1,587,218)   (5,654,677)
           
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT  $6,221,785   $12,885 

 

The accompanying notes are an integral part of these financial statements

 

 3 

 

 

THE MARQUIE GROUP, INC.

(formerly Music of Your Life, Inc.)

Consolidated Statements of Operations

(Unaudited and Unreviewed by Auditor)

                       

 

                 
   For the Three Months Ended   For the Six Months Ended 
   November 30,   November 30, 
   2022   2021   2022   2021 
                 
NET REVENUES  $   $   $   $ 
                     
OPERATING EXPENSES                    
                     
Salaries and Consulting fees   60,000    30,000    120,000    60,000 
Professional fees   17,992    40,885    56,113    40,885 
Other selling, general and administrative   10,696    4,905    12,001    9,066 
                     
Total Operating Expenses   88,688    75,790    188,114    109,951 
                     
LOSS FROM OPERATIONS   (88,688)   (75,790)   (188,114)   (109,951)
                     
OTHER INCOME (EXPENSES)                    
                     
Income (expense) from derivative liability       2,827,992    41,194    1,556,558 
Interest expense (including amortization of debt discounts of $14,878, $112,987, $14,878, and $213,361, respectively)   (79,920)   (165,263)   (133,128)   (408,524)
Loss on conversion of notes payable and accrued interest       (1,075,907)       (2,529,399)
                     
Total Other Income (Expenses)   (79,920)   1,586,822    (91,934)   (1,381,365)
                     
LOSS BEFORE INCOME TAXES   (168,608)   1,511,032    (280,048)   (1,491,316)
                     
INCOME TAX EXPENSE                
                     
NET LOSS  $(168,608)  $1,511,032   $(280,048)  $(1,491,316)
                     
BASIC AND DILUTED:                    
Net loss per common share  $(0.00)  $0.17   $(0.00)  $(0.20)
                     
Weighted average shares outstanding   292,900,441    8,700,950    301,040,848    7,447,032 

 

The accompanying notes are an integral part of these financial statements

                       

 

 

 4 

 

 

THE MARQUIE GROUP, INC.

(formerly Music of Your Life, Inc.)

Consolidated Statements of Stockholders' Deficit

(Unaudited and Unreviewed by Auditor)

                                 

 

                                 
   Six Months Ended November 30, 2022 
                                 
   Preferred Stock   Common Stock   Common Stock   Additional Paid-in   Accumulated   Total Stockholders' 
   Shares   Amount   Shares   Amount   Payable   Capital   Deficit   Deficit 
                                 
Balance, May 31, 2022   200   $    16,189,732   $1,621   $8,460   $10,213,431   $(15,878,189)  $(5,654,677)
                                         
Round up of shares from reverse stock split           2,600                     
                                         
Net loss for the three months ended August 31, 2022                           (111,440)   (111,440)
                                         
Balance, August 31, 2022   200        16,192,332    1,621    8,460    10,213,431    (15,989,629)   (5,766,117)
                                         
Common stock issued for conversion of debt           73,753,000    7,375        140,132        147,507 
                                         
Investment in Acquisition           666,666,668    66,667        4,133,333        4,200,000 
                                         
Net loss for the three months ended November 30, 2022                           (168,608)   (168,608)
                                         
Balance, November 30, 2022   200   $    756,612,000   $75,663   $8,460   $14,486,896   $(16,158,237)  $(1,587,218)

 

   Six Months Ended November 30, 2021 
                                 
   Preferred Stock   Common Stock   Common Stock   Additional Paid-in   Accumulated   Total Stockholders' 
   Shares   Amount   Shares   Amount   Payable   Capital   Deficit   Deficit 
                                 
Balance, May 31, 2021   200   $    4,678,553   $468   $8,460   $6,987,191   $(11,762,237)  $(4,766,118)
                                         
Common stock issued for conversion of debt           2,948,116    295        1,502,805        1,503,100 
                                         
Net loss for the three months ended August 31, 2021                           (3,002,348)   (3,002,348)
                                         
Balance, August 31, 2021   200        7,626,669    763    8,460    8,489,996    (14,764,585)   (6,265,366)
                                         
Common stock issued for conversion of debt           3,125,737    313        1,121,483        1,121,796 
                                         
Net income for the three months ended November 30, 2021                           1,511,032    1,511,032 
                                         
Balance, November 30, 2021   200   $    10,752,406   $1,075   $8,460   $9,611,479   $(13,253,553)  $(3,632,539)

 

The accompanying notes are an integral part of these financial statements

 

 

 

 

 5 

 

 

THE MARQUIE GROUP, INC.

(formerly Music of Your Life, Inc.)

Consolidated Statements of Cash Flows

(Unaudited and Unreviewed by Auditor)

                       

         
   For the Six Months Ended 
   November 30, 
   2022   2021 
         
CASH FLOWS FROM OPERATING ACTIVITIES:          
           
Net loss  $(280,048)  $(1,491,316)
Adjustments to reconcile net income (loss) to net cash used by operating activities:          
Depreciation of music inventory   778    1,364 
Expense from derivative liability   (41,194)   (1,556,558)
Amortization of debt discounts   14,878    213,361 
Loss on conversion of notes payable and accrued interest       2,529,399 
Default interest added to notes principal balance       102,400 
Changes in operating assets and liabilities:          
Accounts payable   35,913    8,353 
Accrued interest payable on notes payable   111,316    87,666 
Accrued consulting fees   110,700    55,000 
           
Net Cash Used by Operating Activities   (47,657)   (50,331)
           
CASH FLOWS FROM INVESTING ACTIVITIES:          
           
Payments from loans receivable, related party   (9,247)    
           
Net Cash Used by Investing Activities   (9,247)    
           
CASH FLOWS FROM FINANCING ACTIVITIES:          
           
Bank overdraft       (397)
Proceeds from notes payable   69,435    45,000 
Repayments of notes payable       (500)
Repayments of notes payable to related parties   (12,100)   (25,272)
Net proceeds from notes payable to related parties       31,500 
           
Net Cash Provided by Financing Activities   57,335    50,331 
           
NET INCREASE IN CASH AND CASH EQUIVALENTS   431     
           
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD   353     
           
CASH AND CASH EQUIVALENTS, END OF PERIOD  $784   $ 
           
SUPPLEMENTAL CASH FLOW INFORMATION          
           
Cash Payments For:          
Interest  $   $ 
Income taxes  $   $ 
           
Non-cash investing and financing activities:          
Issuance of stock and promissory note for investment in acquisition  $6,200,000   $ 
Initial derivative liability charged to debt discounts  $38,880   $45,000 
Conversion of debt and accrued interest into common stock  $147,507   $95,496 

 

The accompanying notes are an integral part of these financial statements

 

 

 6 

 

 

THE MARQUIE GROUP, INC.

(formerly Music of Your Life, Inc.)

Notes to the Consolidated Financial Statements

November 30, 2022

(Unaudited and Unreviewed by Auditor)

 

 

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND ORGANIZATION

 

Basis of Presentation

 

The accompanying unaudited financial statements are presented in accordance with generally accepted accounting principles for interim financial information and the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting only of normal recurring accruals) considered necessary in order to make the financial statements not misleading, have been included. Operating results for the three and six months ended November 30, 2022 are not necessarily indicative of results that may be expected for the year ending May 31, 2023. 

 

Organization

 

The Marquie Group, Inc. (formerly Music of Your Life, Inc.) (the “Company”) was incorporated under the laws of the State of Florida on January 30, 2008 under the name of “Zhong Sen International Tea Company”. From January 2008 to May 2013, the Company operated with the principal business objective of providing sales and marketing consulting services to small to medium sized Chinese tea producing companies who wished to export and distribute high quality Chinese tea products worldwide. On May 31, 2013 (the “Closing Date”), the Company entered into a Merger Agreement (the “Merger Agreement”) by and among the Company, Music of Your Life, Inc., a Nevada corporation (“MYL Nevada”) incorporated October 10, 2012, and Music of Your Life Merger Sub, Inc., a Utah corporation (“Merger Sub”), pursuant to which MYL Nevada merged with Merger Sub. As a result of the merger, MYL Nevada became a wholly-owned subsidiary of the Company, and on July 26, 2013, the Company changed its name to Music of Your Life, Inc., a syndicated radio network. On May 20, 2014 the Company acquired 100% of the outstanding stock of iRadio, Inc., a Utah corporation. The Company was the surviving corporation. iRadio was an entity related to the Company by common ownership.

 

Acquisition of The Marquie Group, Inc.

 

On August 16, 2018 (see Note 8), the Company merged with The Marquie Group, Inc. (“TMGI”) in exchange for the issuance of a total of 100 shares of our common stock to TMGI’s stockholders. Following the merger, the Company had 102 shares of common stock issued and outstanding. On December 5, 2018, the Company amended and restated its Articles of Incorporation providing for a change in the Company’s name from “Music of Your Life, Inc.” to “The Marquie Group, Inc.” The TMGI business plan is to license, develop and launch a direct-to-consumer, health and beauty product line called “Whim” that use innovative formulations of plant-based, amino-acids and other natural alternatives to chemical ingredients.

 

Acquisition of Global Nutrition Experience, Inc.

 

On November 21, 2019 (see Note 8), the Company merged with Global Nutrition Experience, Inc. (“GNE”) in exchange for the issuance of a total of 193,000 shares of our common stock to GNE’s stockholder. The GNE business plan is to license intellectual property to third parties.

 

 

 

 

 7 

 

 

THE MARQUIE GROUP, INC.

(formerly Music of Your Life, Inc.)

Notes to the Consolidated Financial Statements

November 30, 2022

(Unaudited and Unreviewed by Auditor)

 

 

NOTE 2 – MUSIC INVENTORY

 

Music inventory consisted of the following:

 

Schedule of inventory  November 30, 2022   May 31, 2022 
Digital music acquired for use in operations – at cost  $21,648   $21,648 
Accumulated depreciation   (20,259)   (19,481)
Music inventory – net  $1,389   $2,167 

 

The Company purchases digital music to broadcast over the radio and internet. During the six months ended November 30, 2022, the Company purchased $-0- worth of music inventory. For the six months ended November 30, 2022 and 2021, depreciation of music inventory was $778 and $1,364, respectively.

 

NOTE 3 – ACCRUED CONSULTING FEES

 

Accrued consulting fees consisted of the following:

 

Schedule of consulting fees payable  November 30, 2022   May 31, 2022 
Due to Company Chief Executive Officer pursuant to Consulting Agreement dated March 1, 2017 – monthly compensation of $10,000 to May 31, 2022, increased to $20,000 after May 31, 2022  $368,817   $253,817 
Due to wife of Company Chief Executive Officer pursuant to consulting agreement effective August 16, 2018 – monthly compensation of $15,000 (which was terminated May 31, 2021)   314,600    318,100 
Due to mother of Company Chief Executive Officer pursuant to Consulting Agreement dated September 1, 2015 (which was terminated November 30, 2019) – monthly compensation of $5,000 to November 30, 2019   131,350    131,350 
Due to service provider pursuant to Consulting Agreement dated September 1, 2015 (which was terminated February 28, 2019) – monthly compensation of $5,000 to February 28, 2019   144,700    144,700 
Due to service provider pursuant to Consulting Agreement dated September 1, 2015 (which was terminated November 30, 2019) – monthly compensation of $1,000 to November 30, 2019   48,000    48,000 
Due to two other service providers   29,450    30,250 
Total  $1,036,917   $926,217 

 

The accrued consulting fees balance changed as follows:

 

Schedule of accrued consulting fees activity  Six Months Ended
November 30, 2022
   Year Ended
May 31, 2022
 
Balance, beginning of period  $926,217   $832,967 
Compensation expense accrued pursuant to consulting agreements   120,000    120,000 
Payments to consultants   (9,300)   (26,750)
Balance, end of period  $1,036,917   $926,217 

 

See Note 8 (Commitments and Contingencies).

 

 

 

 

 8 

 

 

THE MARQUIE GROUP, INC.

(formerly Music of Your Life, Inc.)

Notes to the Consolidated Financial Statements

November 30, 2022

(Unaudited and Unreviewed by Auditor)

 

 

NOTE 4 – NOTES PAYABLE

 

Notes payable consisted of the following:

 

Schedule of notes payable  November 30, 2022   May 31, 2022 
Notes payable to an entity, non-interest bearing, due on demand, unsecured  $39,300   $39,300 
Note payable to an individual, due on May 22, 2015, in default (B)   25,000    25,000 
Note payable to an entity, non-interest bearing, due on February 1, 2016, in default (D)   50,000    50,000 
Note payable to a family trust, stated interest of $2,500, due on October 31, 2015, in default (E)   7,000    7,000 
Note payable to a corporation, stated interest of $5,000, due on October 21, 2015, in default (G)   50,000    50,000 
Note payable to a corporation, stated interest of $5,000, due on November 6, 2015, in default (H)   50,000    50,000 
Note payable to an individual, due on December 20, 2015, in default, 24% default rate from January 20, 2016 (I)   25,000    25,000 
Convertible note payable to an entity, interest at 12%, due on December 29, 2016, in default (M)   40,000    40,000 
Note payable to a family trust, interest at 10%, due on November 30, 2016, in default (P)   25,000    25,000 
Convertible note payable to an individual, interest at 10%, due on demand (V)   46,890    46,890 
Convertible note payable to an individual, interest at 8%, due on demand (W)   29,000    29,000 
Convertible note payable to an individual, interest at 8%, due on demand (X)   21,500    21,500 
Convertible note payable to an entity, interest at 10%, due on demand (Y)   8,100    8,100 
Convertible note payable to an entity, interest at 10%, due on demand (CC)       50,000 
Convertible note payable to an entity, interest at 10%, due on March 5, 2019, in default (DD)   35,000    35,000 
Convertible note payable to an entity, interest at 10%, due on September 18, 2019, in default (GG)   8,505    8,505 
Convertible note payable to an entity, interest at 12%, due on November 30, 2021, in default, net of discount of $-0- and $85,233, respectively (SS)   154,764    154,764 
Convertible note payable to an entity, interest at 10%, due on June 4, 2022, in default (VV)   170,212    167,597 
Convertible note payable to an entity, interest at 8%, due on August 27, 2022, in default, net of discount of $745 and $-0-, respectively (WW)   13,255    9,726 
Convertible note payable to an entity, interest at 12%, due on December 21, 2022 (YY)   58,250    58,250 
Convertible note payable to an entity, interest at 12%, due on February 8, 2023 (ZZ)   245,000    245,000 
Convertible note payable to an entity, interest at 12%, due on June 10, 2023, net of discount of $30,145 and $-0-, respectively (AA)   8,735     
Convertible note payable to an entity, interest at 12%, due on November 4, 2023   30,555     
Note payable to the Small Business Administration under the Payroll Protection Program, interest at 1%, due in installments through May 4, 2022, forgivable in part or whole subject to certain requirements   70,000    70,000 
Note payable to the Small Business Administration under the Payroll Protection Program, interest at 1%, due in installments through April 5, 2023, forgivable in part or whole subject to certain requirements   100,000    100,000 
Notes payable to individuals, non-interest bearing, due on demand   103,476    103,476 
Total Notes Payable   1,414,542    1,419,108 
Less: Current Portion   (1,414,542)   (1,419,108)
Long-Term Notes Payable  $   $ 

 

 

 

 9 

 

 

THE MARQUIE GROUP, INC.

(formerly Music of Your Life, Inc.)

Notes to the Consolidated Financial Statements

November 30, 2022

(Unaudited and Unreviewed by Auditor)

 

 

(B) On April 22, 2015, the Company issued a $25,000 Promissory Note, non-interest bearing (interest at 24% per annum after May 22, 2015), due at maturity on May 22, 2015.

 

(D) On July 24, 2015, the Company issued a $50,000 Promissory Note to Kodiak Capital Group, LLC (“Kodiak”) for services rendered in association with an Equity Purchase Agreement. As amended and restated January 4, 2016, the note is non-interest bearing and was due on February 1, 2016.

 

(E) On July 31, 2015, the Company issued a $25,000 Promissory Note with a stated interest amount of $2,500 due at maturity on October 31, 2015.

 

(G) On August 6, 2015, the Company issued a $50,000 Promissory Note with a stated interest amount of $5,000 due at maturity on October 21, 2015.

 

(H) On August 21, 2015, the Company issued a $50,000 Promissory Note with a stated interest amount of $5,000 due at maturity on November 6, 2015.

 

(I) On September 21, 2015, the Company issued a $25,000 Promissory Note with a stated interest amount of $2,500 due at maturity on December 20, 2015. In the event that all principal and interest are not paid to the lender by January 20, 2016, interest is to accrue at a rate of 24% per annum commencing on January 21, 2016.

 

(M) On December 29, 2015, the Company issued a $20,000 Convertible Promissory Note to a lender for net loan proceeds of $15,000. The note bears interest at a rate of 12% per annum, was due on December 29, 2016, and is convertible at the option of the lender into shares of the Company common stock at a Conversion Price equal to 50% of the lowest closing bid price during the 30 Trading Day period prior to the Conversion Date. See Note 6 (Derivative Liability).

 

(P) On June 3, 2016, the Company issued a $25,000 Promissory Note. The note bears interest at a rate of 10% per annum and was due on November 30, 2016.

 

(V) On May 3, 2017, the Company issued a $72,750 Convertible Promissory Note to a lender as a replacement for the principal and interest due on a promissory note due on October 14, 2014. The note bears interest at a rate of 10% per annum, is due on demand, and is convertible at the option of the lender into shares of the Company common stock at a Conversion Price equal to $0.1293 per share.

 

(W) On April 5, 2017, the Company issued a $35,000 Convertible Promissory Note to a lender as a replacement for the principal and interest due on a promissory note due on August 23, 2015. The note bears interest at a rate of 8% per annum, is due on demand, and is convertible at the option of the lender into shares of the Company common stock at a Conversion Price equal to 40% of the lowest Trading Price during the 5 Trading Day period prior to the Conversion Date. See Note 6 (Derivative Liability).

 

(X) On April 5, 2017, the Company issued a $27,500 Convertible Promissory Note to a lender as a replacement for the principal and interest due on a promissory note due on October 31, 2015. The note bears interest at a rate of 8% per annum, is due on demand, and is convertible at the option of the lender into shares of the Company common stock at a Conversion Price equal to 40% of the lowest Trading Price during the 5 Trading Day period prior to the Conversion Date. See Note 6 (Derivative Liability).

 

 

 

 10 

 

 

THE MARQUIE GROUP, INC.

(formerly Music of Your Life, Inc.)

Notes to the Consolidated Financial Statements

November 30, 2022

(Unaudited and Unreviewed by Auditor)

 

 

(Y) On March 1, 2017, the Company issued a $8,600 Convertible Promissory Note to a vendor of the Company to convert certain accounts payable due to the vendor. The note bears interest at a rate of 10% per annum, is due on demand, and is convertible at the option of the lender into shares of the Company common stock at a Conversion Price equal to the higher of $0.04 per share or 60% of the lowest Trading Price during the 5 Trading Day period prior to the Conversion Date.

 

(CC) On December 1, 2017, the Company issued a $50,000 Convertible Promissory Note to a vendor in settlement of certain accrued consulting fees of $50,000. The note bears interest at a rate of 10% per annum, is due on demand, and is convertible at the option of the lender into shares of the Company common stock at a Conversion Price equal to 60% of the lowest Trading Price during the 20 Trading Day period prior to the Conversion Date. See Note 6 (Derivative Liability).

 

(DD) On March 5, 2018, the Company issued a $35,000 Convertible Promissory Note to a lender for net loan proceeds of $33,000. The note bears interest at a rate of 10% per annum, was due on March 5, 2019, and is convertible at the option of the lender into shares of the Company common stock at a Conversion Price equal to 50% of the lowest Trading Price during the 20 Trading Day period prior to the Conversion Date. See Note 6 (Derivative Liability).

 

(GG) On September 18, 2018, the Company issued a $18,000 Convertible Promissory Note to a lender for net loan proceeds of $14,000. The note bears interest at a rate of 10% per annum, was due on September 18, 2019, and is convertible at the option of the lender into shares of the Company common stock at a Conversion Price equal to 50% of the lowest Trading Price during the 20 Trading Day period prior to the Conversion Date. See Note 6 (Derivative Liability).

 

(SS) On November 30, 2020, the Company issued a $170,000 Convertible Promissory Note to a lender which paid off some of the accrued interest for the note described in (RR) above. The Company received net proceeds of $32,500. The note bears interest at a rate of 12% per annum, is due on November 30, 2021, and is convertible at the option of the lender into shares of the Company common stock at a Conversion Price equal to the lesser of (1) 105% of the closing bid price of the Common Stock on the Issue Date, or (2) the closing bid price of the Common Stock on the Trading Day immediately preceding the date of the conversion. See Note 6 (Derivative Liability).

 

(VV) On June 4, 2021, the Company issued a $238,596 Convertible Promissory Note to a lender which paid off the principal and accrued interest for the notes described in (EE), (FF), (KK), (LL), (MM), (NN) and (PP) above. The note bears interest at a rate of 10% per annum, is due on June 4, 2022, and is convertible at the option of the lender into shares of the Company common stock at a Conversion Price equal to the lesser of (1) $0.00004, or (2) 50% of the lowest trading price of the common stock for the previous 15 day trading period. See Note 6 (Derivative Liability).

 

(WW) On August 27, 2021, the Company issued a $14,000 Convertible Promissory Note to a lender for net loan proceeds of $10,000. The note bears interest at a rate of 8% per annum, is due on August 27, 2022, and is convertible at the option of the lender into shares of the Company common stock at a Conversion Price equal to 65% of the lowest trading price in the 10 Trading Day period prior to the Conversion Date. See Note 6 (Derivative Liability).

 

(YY) On December 21, 2021, the Company issued a $58,250 Convertible Promissory Note to a lender for net loan proceeds of $49,925. The note bears interest at a rate of 12% per annum, is due on December 21, 2022, and is convertible at the option of the lender into shares of the Company common stock at a Conversion Price equal to the higher of (1) $0.10, or (2) the par value of the Common Stock.

 

(ZZ) On February 8, 2022, the Company issued a $245,000 Convertible Promissory Note to a lender for net loan proceeds of $218,000. The note bears interest at a rate of 12% per annum, is due on February 8, 2023, and is convertible at the option of the lender into shares of the Company common stock at a Conversion Price equal to the higher of (1) $0.10, or (2) the par value of the Common Stock.

 

 

 11 

 

 

THE MARQUIE GROUP, INC.

(formerly Music of Your Life, Inc.)

Notes to the Consolidated Financial Statements

November 30, 2022

(Unaudited and Unreviewed by Auditor)

 

 

(AA) On June 10, 2022, the Company issued a $38,880 Convertible Promissory Note to a lender for net loan proceeds of $31,800. The note bears interest at a rate of 12% per annum, is due on June 10, 2023, and is convertible at the option of the lender into shares of the Company common stock at a Conversion Price equal to the lower of (1) $0.05, or (2) 50% of the lowest trading price in the 10 Trading Day period prior to the Conversion Date.

 

(BB) On November 4, 2022, the Company issued a $30,555 Convertible Promissory Note to a lender for net loan proceeds of $25,000. The note bears interest at a rate of 12% per annum, is due on November 4, 2023, and is convertible at the option of the lender into shares of the Company common stock at a Conversion Price equal to the lower of (1) $0.005, or (2) 50% of the lowest trading price in the 10 Trading Day period prior to the Conversion Date.

 

Concentration of Notes Payable:

 

The principal balance of notes payable was due to:

 

Notes payable by lender  November 30, 2022   May 31, 2022 
Lender A  $458,014   $458,014 
Lender B   170,212    170,212 
14 other lenders   817,206    797,771 
           
Total   1,445,432    1,425,997 
           
Less debt discounts   (30,890)   (6,889)
           
Net  $1,414,542   $1,419,108 

 

NOTE 5 – NOTES PAYABLE – RELATED PARTIES

 

Notes payable – related parties consisted of the following:

 

 
Schedule of related party notes payable
  November 30,
2022
   May 31,
2022
 
Note payable to Company law firm (and owner of 2,500 shares of common stock since August 16, 2018), non-interest bearing, due on demand, unsecured  $2,073   $2,073 
Notes payable to The OZ Corporation (owner of 2,500 shares of common stock since August 16, 2018), non-interest bearing, due on demand, unsecured   69,250    69,250 
Note payable to the Chief Executive Officer, non-interest bearing, due on demand, unsecured   2,128    14,228 
Note payable to the wife of the Chief Executive Officer as part of the 25% acquisition of Simply Whim, interest at 12%, due on September 20, 2023, unsecured (See Note 10)   2,000,000    14,228 
Convertible note payable to John D. Thomas P.C. (Company law firm and owner of 2,500 shares of common stock since August 16, 2018), interest at 10%, due on demand       50,000 
Total Notes Payable   2,073,451    135,551 
Less: Current Portion   (2,073,451)   (135,551)
Long-Term Notes Payable  $   $ 

 

 

 

 12 

 

 

THE MARQUIE GROUP, INC.

(formerly Music of Your Life, Inc.)

Notes to the Consolidated Financial Statements

November 30, 2022

(Unaudited and Unreviewed by Auditor)

 

 

NOTE 6 - DERIVATIVE LIABILITY

 

The derivative liability at November 30, 2022 and May 31, 2022 consisted of:

 

Schedule of derivative liabilities  November 30, 2022   May 31, 2022 
   Face Value   Derivative Liability   Face Value   Derivative Liability 
Convertible note payable issued December 29, 2015, due December 29, 2016 (M)  $40,000   $57,455   $40,000   $40,000 
Convertible note payable issued April 5, 2017, due on demand (W)   29,000    43,500    29,000    43,500 
Convertible note payable issued April 5, 2017, due on demand (X)   21,500    32,250    21,500    32,250 
Convertible note payable issued December 1, 2017, due on demand (BB)   50,000    51,515    50,000    33,333 
Convertible note payable issued December 1, 2017, due on demand (CC)   50,000    51,515    50,000    33,333 
Convertible note payable issued March 5, 2018, due on March 5, 2019 (DD)   35,000    50,273    35,000    35,000 
Convertible note payable issued September 18, 2018, due on September 18, 2019 (GG)   8,506    12,217    8,506    8,506 
Convertible note payable issued November 30, 2020, due on November 30, 2021 (SS)   154,764    928,583    154,764    1,392,875 
Convertible note payable issued June 4, 2021, due on June 4, 2022 (VV)   170,212    802,340    170,212    1,176,766 
Convertible note payable issued August 27, 2021, due on August 27, 2022 (WW)   14,000    7,538    14,000    21,538 
Convertible note payable issued June 10, 2022, due on June 10, 2023 (AA)   38,880    777,600         
Totals  $611,862   $2,814,786   $572,982   $2,817,101 

 

The above convertible notes contain a variable conversion feature based on the future trading price of the Company common stock. Therefore, the number of shares of common stock issuable upon conversion of the notes is indeterminate. Accordingly, we have recorded the fair value of the embedded conversion features as a derivative liability at the respective issuance dates of the notes and charged the applicable amounts to debt discounts and the remainder to other expense. The increase (decrease) in the fair value of the derivative liability from the respective issuance dates of the notes to the measurement dates is charged (credited) to other expense (income). The fair value of the derivative liability of the notes is measured at the respective issuance dates and quarterly thereafter using the Black Scholes option pricing model.

 

Assumptions used for the calculations of the derivative liability of the notes at November 30, 2022 include (1) stock price of $0.0067 per share, (2) exercise prices ranging from $0.00004 to $0.0067 per share, (3) terms ranging from 0 days to 283 days, (4) expected volatility of 2,166% and (5) risk free interest rates ranging from 2.58% to 240%.

 

 

 

 

 13 

 

 

THE MARQUIE GROUP, INC.

(formerly Music of Your Life, Inc.)

Notes to the Consolidated Financial Statements

November 30, 2022

(Unaudited and Unreviewed by Auditor)

 

 

Assumptions used for the calculations of the derivative liability of the notes at May 31, 2022 include (1) stock price of $0.001 per share, (2) exercise prices ranging from $0.0004 to $0.00065 per share, (3) terms ranging from 0 days to 88 days, (4) expected volatility of 1,986% and (5) risk free interest rates ranging from 0.73% to 1.16%.

 

Concentration of Derivative Liability:

 

The derivative liability relates to convertible notes payable due to:

 

Schedule of derivative liability by Lender  November 30, 2022   May 31, 2022 
         
Lender A  $928,583   $1,392,874 
Lender B   802,340    1,176,765 
Lender C   777,600     
Lender D   70,028    65,044 
5 other lenders   236,235    182,418 
           
Total  $2,814,786   $2,817,101 

 

NOTE 7 – EQUITY TRANSACTIONS

 

On October 3, 2016, the Company amended its Articles of Incorporation to increase the number of authorized shares of common stock from 500,000,000 to 2,000,000,000 shares and to change the par value of both the common stock and preferred stock from $0.001 per share to $0.0001 per share.

 

On November 9, 2016, the Company amended its Articles of Incorporation to increase the number of authorized shares of common stock from 2,000,000,000 to 10,000,000,000 shares and to amend the voting rights for the Series A Preferred Stock. As amended, each share of Series A Preferred Stock shall have voting rights equal to four times the sum of (a) all shares of Common Stock issued and outstanding at the time of voting; plus (b) the total number of votes of all other classes of preferred stock which are issued and outstanding at the time of voting; divided by (c) the number of shares of Series A Preferred Stock issued and outstanding at the time of voting. The Series A Preferred Stock has no conversion, liquidation, or dividend rights.

 

On April 22, 2021, the Company amended its Articles of Incorporation to increase the number of authorized shares of common stock from 10,000,000,000 to 50,000,000,000 shares.

 

On August 16, 2018, the Company entered into a Merger Agreement by and among the Company, and The Marquie Group, Inc., a Utah Corporation (“TMG”), pursuant to with the Company merged with TMG. The Company is the surviving corporation. Each shareholder of TMG received one (1) share of common stock of the Company for every one (1) share of TMG common stock held as of August 16, 2018. In accordance with the terms of the merger agreement, all of the shares of TMG held by TMG shareholders were cancelled, and 100 shares of common stock of the Company were issued to the TMG shareholders.

 

 

 

 14 

 

 

THE MARQUIE GROUP, INC.

(formerly Music of Your Life, Inc.)

Notes to the Consolidated Financial Statements

November 30, 2022

(Unaudited and Unreviewed by Auditor)

 

 

TMG was incorporated on August 3, 2018. The merger provides the Company with certain registered trademarks and intellectual property of TMG with respect to health, beauty, and social networking products. The three stockholders of TMG prior to the merger who received the 100 shares are (1) Marc Angell (CEO of the Company) and Jacquie Angell (50 shares), (2) The OZ Corporation (holder of $103,250 of Company notes payable at May 31, 2019 and February 29, 2020) (25 shares), and (3) John Thomas P.C. (Company law firm and holder of $52,073 of Company notes payable at May 31, 2019 and February 29, 2020) (25 shares). Pursuant to ASC 805-50-30-5 relating to transactions between entities under common control, the intellectual property of TMG (and the issuance of the 100 shares of common stock) were recorded at $-0-, the historical cost of the property to TMG.

 

On August 28, 2019, the Securities and Exchange Commission (the “SEC”) issued a Notice of Qualification regarding a Form 1-A filed by the Company in connection with the Company’s offering of up to 1,333,333 shares of common stock at a price of $7.50 per share or a total offering of $10,000,000. The end date of the offering is August 28, 2020. On December 26, 2019, the Company amended its Form 1-A Offering Circular to reduce the offering price from $7.50 per share to $3.50 per share. As part of this offering, during the three months ended February 29, 2020, the Company issued an aggregate of 58,438,096 shares of common stock for cash in the amount of $287,200.

 

On November 21, 2019, the Company merged with Global Nutrition Experience, Inc. (“GNE”) in exchange for the issuance of a total of 160,000 shares of our common stock to GNE’s stockholders. Following the merger, the Company had 161,062 shares of common stock issued and outstanding. GNE was incorporated on November 21, 2019. The stockholder of GNE prior to the merger who received the 160,000 shares was the Angell Family Trust. Pursuant to ASC 805-50-30-5 relating to transactions between entities under common control, the intellectual property of GNE (and the issuance of the 160,000 shares of common stock) were recorded at $-0-, the historical cost of the property to GNE. During the three months ended February 29, 2020, the Company issued an additional 33,000 shares of common stock as part of the merger.

 

During the year ended May 31, 2021, the Company issued an aggregate of 4,304,842 shares of common stock for the conversion of notes payable and accrued interest in the aggregate amount of $835,050. We incurred a loss on the conversion of notes payable and accrued interest of $1,445,042, which represents the excess of the $2,280,092 fair value of the 4,304,842 shares at the dates of conversion over the $835,050 amount of debt satisfied.

 

Effective April 21, 2022, the Company effectuated a 1 for 1,000 reverse split of the Company’s Common Stock (“Reverse Split”), meaning that each 1,000 shares of Common Stock is consolidated into 1 share of Common Stock following the reverse split, provided however, that fractional shares would be rounded up to the nearest whole share. Following the Reverse Split, the Company had 16,192,332 common shares issued and outstanding. The accompanying financial statements have been retroactively adjusted to reflect this reverse stock split.

 

On October 13, 2022 (the “Closing Date”), the Company entered into a Standby Equity Commitment Agreement (the “Equity Agreement” by and among the Company, and MacRab, LLC, a Florida limited liability company ("MacRab"), pursuant to which MacRab has agreed to purchase at the Company’s sole discretion, up to five million dollars ($5,000,000) of the Company's common stock (the “Put Shares”) at a purchase price of 90% of the average of the two (2) lowest volume weighted average prices of the Company’s Common Stock on OTCQB during the six (6) Trading Days immediately following the Clearing Date.

 

 

 

 15 

 

 

THE MARQUIE GROUP, INC.

(formerly Music of Your Life, Inc.)

Notes to the Consolidated Financial Statements

November 30, 2022

(Unaudited and Unreviewed by Auditor)

 

 

Contemporaneous therewith, the Company and MacRab also entered into a Registration Rights Agreement, whereby the Company has agreed to provide certain registration rights under the Securities Act of 1933, as amended. Pursuant to the Registration Rights Agreement, the Company has registered the Put Shares pursuant in a registration statement on Form S-1 (the “Registration Statement”). The Registration Statement was filed on October 21, 2022.

 

Also on the Closing Date, pursuant to the Equity Agreement, the Company issued to MacRab a warrant (the “Warrant”) to acquire 11,764,706 shares of the Company’s common stock.

 

NOTE 8 – COMMITMENTS AND CONTINGENCIES

 

Consulting Agreements with Individuals

 

The Company has entered into Consulting Agreements with the Company’s Chief Executive Officer, the wife of the Company’s Chief Executive Officer, the mother of the Company’s Chief Executive Officer, and other service providers (see Note 3 – Accrued Consulting Fees). The Consulting Agreement with the Company’s Chief Executive Officer provided for monthly compensation of $10,000 through May 31, 2022 and was increased to $20,000 after May 31, 2022. The Consulting Agreement with the wife of the Company’s Chief Executive Officer provided for monthly compensation of $15,000 and expired on May 31, 2021. The Consulting Agreement with the mother of the Company’s Chief Executive Officer provided for monthly compensation of $5,000 and was terminated as of November 30, 2019. The other 3 consulting agreements provided for monthly compensation totaling $6,500 and were terminated as of November 30, 2019.

 

Corporate Consulting Agreement

 

On March 14, 2018, the Company executed a Corporate Consulting Agreement (the “Agreement”) with a consulting firm entity (the “Consultant”). The Agreement provided for the Consultant to perform certain investor relations and other services for the Company. The term of the Agreement was 4 months but the Agreement provided that the Company could terminate the Agreement for any reason at any time upon 5 days written prior notice. The Agreement provided for 8 payments of cash fees totaling $240,000 to be paid to the Consultant over 4 months.

 

On April 1, 2018, the Company notified the Consultant that the Agreement was terminated. A total of $25,000 was paid to the Consultant in March 2018 which was expensed and included in “Salaries and Consulting Fees” in the Consolidated Statement of Operations for the year ended May 31, 2018. No other amounts were paid or accrued subsequent to May 31, 2018.

 

On October 16, 2018 (see Note 7), the Company issued 5,000 shares of its common stock to the Consultant. On October 26, 2018, the Consultant advised the Company that it had not been notified that the Agreement was terminated on April 1, 2018 and that the Company is in default of the Agreement.

 

 

 

 

 16 

 

 

THE MARQUIE GROUP, INC.

(formerly Music of Your Life, Inc.)

Notes to the Consolidated Financial Statements

November 30, 2022

(Unaudited and Unreviewed by Auditor)

 

 

NOTE 9 – GOING CONCERN

 

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. At November 30, 2022, the Company had negative working capital of $7,808,219 and an accumulated deficit of $16,158,237. These factors raise substantial doubt regarding the Company’s ability to continue as a going concern.

 

To date the Company has funded its operations through a combination of loans and sales of common stock. The Company anticipates another net loss for the fiscal year ended May 31, 2023 and with the expected cash requirements for the coming year, there is substantial doubt as to the Company’s ability to continue operations.

 

The Company is attempting to improve these conditions by way of financial assistance through issuances of notes payable and additional equity and by generating revenues through sales of products and services. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

 

NOTE 10 – INVESTMENT IN ACQUISITION

 

On September 20, 2022, the Company entered into an agreement to acquire 25% of the outstanding shares of SIMPLY WHIM, INC., a Wyoming corporation (“SIMPLY WHIM”), in exchange for 666,666,668 shares of common stock of the Company and a promissory note in the face amount of $2,000,000. SIMPLY WHIM is a skin care product development company. At the date of the acquisition, the price per share of the company shares was $0.0063. The total consideration paid by the company (value of stock issued and promissory note) was $6,200,000 which has been recorded as Investment in Acquisition on the balance sheet as of November 30, 2022.

 

 

 

 

 

 

 

 

 

 


 17 

 

 

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operation

 

The following discussion contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 relating to future events or our future performance. Actual results may materially differ from those projected in the forward-looking statements as a result of certain risks and uncertainties set forth in this prospectus. Although management believes that the assumptions made and expectations reflected in the forward-looking statements are reasonable, there is no assurance that the underlying assumptions will, in fact, prove to be correct or that actual results will not be different from expectations expressed in this report.

 

BUSINESS OVERVIEW

 

The Marquie Group, Inc. (“TMGI”), is a direct-to-consumer sales and marketing company which has entered into an exclusive marketing agreement with an innovative skin care company, Simply Whim, LLC for their WHIM® product line. The WHIM® products are designed as solutions to modern day skin nutrition and beauty challenges by using a safe, proprietary blend of amino acids, antioxidants, and other nature-derived ingredients.

 

The Company markets these products through its wholly owned subsidiary Music of Your Life, a syndicated radio network heard nationwide on AM, FM and HD terrestrial radio stations, and simulcast over the internet. This is made possible by 30 and 60 second commercials airing every hour which are targeted toward the Music of Your Life listening audience. Broadcasting more than 40 years, Music of Your Life is the longest running music radio format in syndication.

 

Expenses which comprise the costs of goods sold will include licensing agreements and royalties, as well as operational and staffing costs related to the management of the Company’s syndicated radio network, product development and product marketing costs. General and administrative expenses are comprised of administrative wages; office expenses; outside legal, accounting, and other professional fees; travel and other miscellaneous office and administrative expenses. Selling and marketing expenses include selling/marketing wages and benefits, advertising and promotional expenses, as well as travel and other miscellaneous related expenses.

 

Because we have incurred losses, income tax expenses are immaterial. No tax benefits have been booked related to operating loss carryforwards, given our uncertainty of being able to utilize such loss carryforwards in future years. We anticipate incurring additional losses during the coming year.

 

RESULTS OF OPERATION

 

Following is management’s discussion of the relevant items affecting results of operations for the three and six months ended November 30, 2022 and 2021.

 

Revenues. The Company generated no net revenues during the three and six months ended November 30, 2022 and 2021. Revenues in the past have been generated from spot sales on our syndicated radio network.

 

Cost of Sales. Our cost of sales were $-0- for the three and six months ended November 30, 2022 and 2021. Our cost of sales in the future will consist principally of licensing costs and royalties associated with our syndicated radio network, other related services provided directly or outsourced through our affiliates, as well as operational and staffing costs with respect thereto.

 

Salaries and Consulting Fees. Accrued salaries and consulting fees were $60,000 and $30,000 for the three months ended November 30, 2022 and 2021, respectively. Accrued salaries and consulting fees were $120,000 and $60,000 for the six months ended November 30, 2022 and 2021, respectively. We expect that salaries and consulting expenses will increase as we add personnel to build our multi-media entertainment business.

 

Professional Fees. Professional fees were $17,992 and $40,885 for the three months ended November 30, 2022 and 2021, respectively. Professional fees were $56,113 and $40,885 for the six months ended November 30, 2022 and 2021, respectively. Professional fees consist mainly of the fees related to the audits and reviews of the Company’s financial statements as well as the filings with the Securities and Exchange Commission. We anticipate that professional fees will increase in future periods as we scale up our operations.

 

 

 

 18 

 

 

Other Selling, General and Administrative Expenses. Other selling, general and administrative expenses were $10,696 and $4,905 for the three months ended November 30, 2022 and 2021, respectively. Other selling, general and administrative expenses were $12,001 and $9,066 for the six months ended November 30, 2022 and 2021, respectively. We anticipate that SG&A expenses will increase commensurate with an increase in our operations.

 

Other Income (Expenses). The Company had net other expenses of $79,920 for the three months ended November 30, 2022 compared to net other income of $1,586,822 for the three months ended November 30, 2021. The Company had net other expenses of $91,934 for the six months ended November 30, 2022 compared to net other expenses of $1,381,365 for the six months ended November 30, 2021. During the six months ended November 30, 2022, the company recorded income on the change in the fair value of the derivative liability in the amount of $41,194. During the six months ended November 30, 2021, the company recorded expense on the change in the fair value of the derivative liability in the amount of $1,556,558. During the six months ended November 30, 2022 and 2021, other expenses incurred were also comprised of interest expenses related to notes payable in the amount of $133,128 and $408,524, which included the amortization of debt discounts of $14,878 and $213,361, respectively. During the six months ended November 30, 2022 and 2021, the Company recorded a loss on the conversion of notes payable and accrued interest in the amount of $-0- and $2,529,399, respectively, based on difference between the fair market value of the stock at issuance and the amount of notes payable and accrued interest converted.

 

LIQUIDITY AND CAPITAL RESOURCES

 

As of November 30, 2022, our primary source of liquidity consisted of $784 in cash and cash equivalents. We hold our cash reserves in a major United States bank. Since inception, we have financed our operations through a combination of short and long-term loans, and through the private placement of our common stock.

 

We have sustained significant net losses which have resulted in negative working capital and an accumulated deficit at November 30, 2022 of $7,808,219 and $16,158,237, respectively, which raises doubt about our ability to continue as a going concern. We generated a net loss for the six months ended November 30, 2022 of $280,048. Without additional revenues, working capital loans, or equity investment, there is substantial doubt as to our ability to continue operations.

 

We believe these conditions have resulted from the inherent risks associated with small public companies. Such risks include, but are not limited to, the ability to (i) generate revenues and sales of our products and services at levels sufficient to cover our costs and provide a return for investors, (ii) attract additional capital in order to finance growth, and (iii) successfully compete with other comparable companies having financial, production and marketing resources significantly greater than those of the Company.

 

We believe that our capital resources are insufficient for ongoing operations, with minimal current cash reserves, particularly given the resources necessary to expand our multi-media entertainment business. We will likely require considerable amounts of financing to make any significant advancement in our business strategy. There is presently no agreement in place that will guarantee financing for our Company, and we cannot assure you that we will be able to raise any additional funds, or that such funds will be available on acceptable terms. Funds raised through future equity financing will likely be substantially dilutive to current shareholders. Lack of additional funds will materially affect our Company and our business and may cause us to substantially curtail or even cease operations. Consequently, you could incur a loss of your entire investment in the Company.

 

CRITICAL ACCOUNTING PRONOUNCEMENTS

 

Our financial statements and related public financial information are based on the application of generally accepted accounting principles in the United States (“GAAP”). GAAP requires the use of estimates, assumptions, judgments, and subjective interpretations of accounting principles that have an impact on the assets, liabilities, revenues, and expense amounts reported. These estimates can also affect supplemental information contained in our external disclosures including information regarding contingencies, risk, and financial condition. We believe our use of estimates and underlying accounting assumptions adhere to GAAP and are consistently and conservatively applied. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances. Actual results may differ materially from these estimates under different assumptions or conditions. We continue to monitor significant estimates made during the preparation of our financial statements.

 

 

 19 

 

 

Our significant accounting policies are summarized in Note 2 of our financial statements included in our May 31, 2022 Form 10-K. While all these significant accounting policies impact our financial condition and results of operations, we view certain of these policies as critical. Policies determined to be critical are those policies that have the most significant impact on our financial statements and require management to use a greater degree of judgment and estimates. Actual results may differ from those estimates. Our management believes that given current facts and circumstances, it is unlikely that applying any other reasonable judgments or estimate methodologies would cause a material effect on our results of operations, financial position or liquidity for the periods presented in this report. 

 

We recognize revenue on arrangements in accordance with FASB ASC No. 605, “Revenue Recognition”.  In all cases, revenue is recognized only when the price is fixed and determinable, persuasive evidence of an arrangement exists, the service is performed, and collectability of the resulting receivable is reasonably assured.

 

RECENT ACCOUNTING PRONOUNCEMENTS

 

We have reviewed accounting pronouncements issued during the past two years and have adopted any that are applicable to the Company. We have determined that none had a material impact on our financial position, results of operations, or cash flows for the periods presented in this report.

 

OFF-BALANCE SHEET ARRANGEMENTS

 

We do not have any off-balance sheet arrangements, financings, or other relationships with unconsolidated entities or other persons, also known as “special purpose entities” (“SPE”s).

 

Item 3. Quantitative and Qualitative Disclosures about Market Risks

 

Not applicable because we are a smaller reporting company.

 

Item 4. Controls and Procedures

 

Evaluation of Disclosure Controls and Procedures 

 

Pursuant to Rule 13a-15(b) under the Securities Exchange Act of 1934 (“Exchange Act”), the Company carried out an evaluation, with the participation of the Company’s management, including the Company’s Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”), of the effectiveness of the Company’s disclosure controls and procedures (as defined under Rule 13a-15(e) under the Exchange Act) as of the end of the period covered by this report. Based upon that evaluation, the Company’s CEO and CFO concluded that the Company’s disclosure controls and procedures were not effective to ensure that information required to be disclosed by the Company in the reports that the Company files or submits under the Exchange Act, is recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to the Company’s management, including the Company’s CEO and CFO, as appropriate, to allow timely decisions regarding required disclosure as a result of continuing material weaknesses (such as the absence of an audit committee and absence of qualified independent directors) in its internal control over financial reporting. The disclosure controls and procedures were ineffective because there was no segregation of duties. One member of our management team handles all accounting duties including the recording of transactions, paying bills and reconciling the bank account. We have minimized this risk by having an external accountant review all transactions and make the appropriate adjustments before the review by our external auditor.

 

Changes in Internal Controls Over Financial Reporting

 

There have been no changes in the Company's internal control over financial reporting during the latest fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting.

 

 

 

 20 

 

 

PART II - OTHER INFORMATION

 

Item 1. Legal Proceedings.

 

Currently we are not aware of any litigation pending or threatened by or against the Company.

 

Item 1A. Risk Factors

 

Not applicable because we are a smaller reporting company.

 

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

 

See Note 7 in the notes to the financial statements.

 

With respect to the transactions in Note 7 to the financial statements, each of the recipients of securities of the Company was an accredited investor or is considered by the Company to be a “sophisticated person”, inasmuch as each of them has such knowledge and experience in financial and business matters that they are capable of evaluating the merits and risks of receiving securities of the Company. No solicitation was made, and no underwriting discounts were given or paid in connection with these transactions. The Company believes that the issuance of its securities as described above was exempt from registration with the Securities and Exchange Commission pursuant to Section 4(2) of the Securities Act of 1933.

  

Item 3. Defaults Upon Senior Securities.

 

The Company has not paid the principal and interest due on 13 notes payable aggregating $647,592 at November 30, 2022. See Note 4 to the Consolidated Financial Statements.

 

Item 4. Mine Safety Disclosures

 

Not Applicable.

 

Item 5. Other Information.

 

None.

 

Item 6. Exhibits.

 

Exhibit No.   Description
3.1   Amended and Restated Articles of Incorporation of Music of Your life, Inc. (incorporated by reference to the Company’s Form S-1/A filed on November 22, 2022)
3.2   Amended and Restated Bylaws of Music of Your Life, Inc. (incorporated by reference to the Company’s Form S-1/A filed on November 22, 2022)
31.1   Certification of Principal Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1   Certification of Principal Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS   XBRL Instance Document
101.SCH   XBRL Taxonomy Extension Schema Document
101.CAL   XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF   XBRL Taxonomy Extension Definition Linkbase Document
101.LAB   XBRL Taxonomy Extension Label Linkbase Document
101.PRE   XBRL Taxonomy Extension Presentation Linkbase Document

 

 

 

 

 21 

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

   

  The Marquie Group, Inc.
   
Date: January 23, 2023 By:  /s/  Marc Angell
    Marc Angell
    Chief Executive Officer
    (Duly Authorized Officer and Principal Executive Officer)
     

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 22