10-Q - Marquie Group, Inc. (0001434601) (Filer)

Mon, Apr 21, 7:16 PM (21 days ago)

**The Marquie Group, Inc. (TMGI, Ticker: TMGI) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** No net revenues were generated for the quarter ended February 28, 2025. - **Profit Margins:** The company reported a net loss of $108,693,000 for Q1 2025, compared to a net loss of $458,936,000 in Q1 2024. - **Cash Flow:** The company had $3,921,000 in cash and cash equivalents as of February 28, 2025. Net cash used by operating activities was $2,490,000 for the nine months ended February 28, 2025. - **Earnings Changes:** The company's net loss decreased significantly year-over-year, indicating some improvement in financial performance. **Quarterly Performance Discussion:** - **Operating Expenses:** Total operating expenses were $23,214,000 for Q1 2025, down from $128,100,000 in Q1 2024. - **Other Income/Expenses:** The company recorded a derivative liability expense of $30,061,000 and interest expenses of $290,382,000 for the nine months ended February 28, 2025. - **Liquidity:** The company's primary source of liquidity is its cash reserves, which totaled $3,921,000 as of February 28, 2025. The company has sustained significant net losses, resulting in negative working capital and an accumulated deficit. **Trends & Uncertainties:** - **Revenue Trends:** The company has not generated revenue from its broadcasting and digital media operations. Future revenue is expected to come from health and beauty products. - **Operational Challenges:** The company faces significant operational challenges, including generating revenue, attracting additional capital, and competing with larger companies. - **Going Concern:** The company's financial statements were prepared assuming it will continue as a going concern, but there is substantial doubt due to negative working capital and an accumulated deficit. **Future Operations Impact:** - **Health and Beauty Segment:** The company plans to focus on its health and beauty segment, with increased sales growth expected due to rising demand for safer beauty options. - **Financing:** The company will likely require additional financing to support its operations and business strategy. There is no guarantee that additional funds will be available on acceptable terms. - **Risk Factors:** The company faces risks associated with small public companies, including the ability to generate revenue, attract capital, and compete with larger companies.