The Marquie Group, Inc. reported its financial results for the quarter ended May 31, 2024. The company’s total assets increased to $[amount] as of May 31, 2024, compared to $[amount] as of May 31, 2023. The company’s total liabilities increased to $[amount] as of May 31, 2024, compared to $[amount] as of May 31, 2023. The company reported a net loss of $[amount] for the quarter ended May 31, 2024, compared to a net loss of $[amount] for the quarter ended May 31, 2023. The company’s cash and cash equivalents decreased to $[amount] as of May 31, 2024, compared to $[amount] as of May 31, 2023. The company’s accounts payable and accrued expenses increased to $[amount] as of May 31, 2024, compared to $[amount] as of May 31, 2023. The company’s notes payable increased to $[amount] as of May 31, 2024, compared to $[amount] as of May 31, 2023.
BUSINESS OVERVIEW
The Marquie Group, Inc. is an emerging direct-to-consumer firm specializing in marketing, product development, and media, including a dynamic radio and digital network. The company has two operating segments: (1) Broadcast, and (2) Health and Beauty.
Broadcasting
The company’s foundational business is radio broadcasting, which includes the ownership and operation of a syndicated radio network including affiliated radio stations subscribing to its programming. Advertising revenue generated from the syndicated radio operations is reported as broadcast revenue. Broadcast revenue is impacted by factors such as the rates radio stations can charge for programming and advertising time, the level of airtime sold, and the number of listener responses.
Health and Beauty
Except for AminoMints®, the company’s health and beauty operations are owned by Simply Whim, Inc., and include Whim®, an emerging beauty brand blending Nature, Nutrition, and Science to offer safe and effective products. The company forecasts strong sales growth next year, driven by demand for safer beauty solutions, and plans to exceed these expectations with continued innovation.
RESULTS OF OPERATION
The company generated no net revenues for Broadcasting and Digital Media during the three months ended August 31, 2024 and 2023. Revenue for Health and Beauty is expected to be included in the company’s upcoming annual 10-K report for the year ending May 31, 2025.
The company’s cost of sales for Broadcasting and Digital Media was $-0- for the three months ended August 31, 2024 and 2023. The company’s Cost of Sales for Health and Beauty will be included in the company’s upcoming annual 10-K report for the year ending May 31, 2025.
Executive salaries remain unpaid and accruing for the period ended August 31, 2024. Professional fees were $-0- and $16,976 for the three months ended August 31, 2024 and 2023, respectively. Other selling, general and administrative expenses were $640 and $567 for the three months ended August 31, 2024 and 2023, respectively.
The company had net other expenses of $144,304 for the three months ended August 31, 2024, which included expense on the change in the fair value of the derivative liability and interest expenses related to notes payable. The company had net other income of $430,625 for the three months ended August 31, 2023, which included income on the change in the fair value of the derivative liability and interest expenses related to notes payable.
LIQUIDITY AND CAPITAL RESOURCES
As of August 31, 2024, the company’s primary source of liquidity consisted of $-0- in cash and cash equivalents. The company has sustained significant net losses, which have resulted in negative working capital and an accumulated deficit at August 31, 2024 of $6,235,552 and $15,068,430, respectively, raising doubt about its ability to continue as a going concern.
The company believes these conditions have resulted from the inherent risks associated with small public companies, including the ability to generate revenues and sales, attract additional capital, and compete with larger companies. The company will likely require considerable amounts of financing to make any significant advancement in its business strategy, and there is presently no agreement in place that will guarantee such financing.
CRITICAL ACCOUNTING PRONOUNCEMENTS
The company’s financial statements and related public financial information are based on the application of generally accepted accounting principles in the United States (GAAP). The company’s significant accounting policies are summarized in Note 2 of its financial statements included in its May 31, 2024 Form 10-K.
RECENT ACCOUNTING PRONOUNCEMENTS
The company has reviewed accounting pronouncements issued during the past two years and has adopted any that are applicable, but none had a material impact on its financial position, results of operations, or cash flows for the periods presented.
OFF-BALANCE SHEET ARRANGEMENTS
The company does not have any off-balance sheet arrangements, financings, or other relationships with unconsolidated entities or other persons, also known as “special purpose entities” (SPEs).