---

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549



FORM 10-Q



|(Mark One)                                      
|------------------------------------------------
|                                                
|x                                               
|                                                
|For the quarterly period ended February 29, 2020
|                                                
|o                                               



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.)
|                                                                       |  |                                     
|3225 McLeod Drive, Suite 100
        Las Vegas, Nevada                 |  | 89121                               
|(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)



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 and posted on its corporate Web site, if any, every Interactive
Data File required to be submitted and posted 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 and post such files).     Yes
☒ No
☐



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



|Large accelerated filer                                           | ☐ | Accelerated filer         | ☐
|----------------------------------------------------------------- | - | ------------------------- | -
|Non-accelerated filer (Do not check if smaller reporting company) | ☐ | Smaller reporting company | ☒




Table of Contents




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 May 26, 2020, there were 373,710,385
shares of $0.0001 par value common stock, issued and outstanding.



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2


Table of Contents


TABLE OF CONTENTS



|PART I: FINANCIAL INFORMATION                                                                |   
|-------------------------------------------------------------------------------------------- | --
|                                                                                             |   
|Item 1: Financial Statements                                                                 | 4 
|Item 2: Management’s Discussion and Analysis of Financial Condition and Results of Operation | 22
|Item 3: Quantitative and Qualitative Disclosures about Market Risk                           | 24
|Item 4: Controls and Procedures                                                              | 24
|                                                                                             |   
|PART II: OTHER INFORMATION                                                                   |   
|                                                                                             |   
|Item 1: Legal Proceedings                                                                    | 25
|Item 1A: Risk Factors                                                                        | 25
|Item 2: Unregistered Sales of Equity Securities and Use of Proceeds                          | 25
|Item 3: Defaults Upon Senior Securities                                                      | 25
|Item 4: Mine Safety Disclosures                                                              | 25
|Item 5: Other Information                                                                    | 25
|Item 6: Exhibits                                                                             | 26
|                                                                                             |   
|SIGNATURES                                                                                   | 26

































3


Table of Contents


PART I - FINANCIAL INFORMATION



ITEM 1.  Financial Statements





|THE MARQUIE GROUP, INC.                               
|------------------------------------------------------
|(formerly Music of Your Life, Inc.)                   
|Consolidated Balance Sheets                           
|                                                      
|ASSETS                                                
|                                                      
|                                                      
|                                                      
|                                                      
|CURRENT ASSETS                                        
|                                                      
|Cash and cash equivalents                             
|Loans receivable from related party                   
|                                                      
|Total Current Assets                                  
|                                                      
|OTHER ASSETS                                          
|                                                      
|Music inventory                                       
|Trademark costs                                       
|                                                      
|Total Other Assets                                    
|                                                      
|TOTAL ASSETS                                          
|                                                      
|LIABILITIES AND STOCKHOLDERS' DEFICIT                 
|                                                      
|CURRENT LIABILITIES                                   
|                                                      
|Bank overdraft                                        
|Accounts payable                                      
|Accrued interest payable on notes payable             
|Accrued consulting fees                               
|Notes payable                                         
|Notes payable to related parties                      
|Derivative liability                                  
|                                                      
|Total Current Liabilities                             
|                                                      
|TOTAL LIABILITIES                                     
|                                                      
|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; 10,000,000,000 shares
|authorized, 266,313,434 and 382,717 shares issued     
|and outstanding, respectively                         
|Common stock payable - 1 share                        
|Additional paid-in-capital                            
|Accumulated deficit                                   
|                                                      
|Total Stockholders' Deficit                           
|                                                      
|TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT           
|                                                      





The
accompanying notes are an integral part of these financial statements









4


Table of Contents




|THE MARQUIE GROUP, INC.                                 
|--------------------------------------------------------
|(formerly Music of Your Life, Inc.)                     
|Consolidated Statements of Operations                   
|(Unaudited)                                             
|                                                        
|                                                        
|                                                        
|                                                        
|                                                        
|NET REVENUES                                            
|                                                        
|OPERATING EXPENSES                                      
|                                                        
|Salaries and Consulting fees (including stock-based     
|compensation of $-0-, $-0-, $-0- and                    
|$41,000, respectively)                                  
|Professional fees                                       
|Other selling, general and administrative               
|                                                        
|Total Operating Expenses                                
|                                                        
|LOSS FROM OPERATIONS                                    
|                                                        
|OTHER INCOME (EXPENSES)                                 
|                                                        
|Income (expense) from derivative liability              
|Interest expense (including amortization of debt        
|discounts of $153,284, $112,355, $464,247 and           
|$200,925, respectively)                                 
|Loss on conversion of notes payable and accrued interest
|                                                        
|Total Other Income (Expenses)                           
|                                                        
|INCOME (LOSS) BEFORE INCOME TAXES                       
|                                                        
|INCOME TAX EXPENSE                                      
|                                                        
|NET INCOME (LOSS)                                       
|                                                        
|BASIC AND DILUTED:                                      
|Net income (loss) per common share                      
|                                                        
|Weighted average shares outstanding                     
|                                                        





The
accompanying notes are an integral part of these financial statements







5


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|THE MARQUIE GROUP, INC.                         
|------------------------------------------------
|(formerly Music of Your Life, Inc.)             
|Consolidated Statements of Stockholders' Deficit
|(Unaudited)                                     
|                                                
|                                                
|                                                
|                                                
|Balance, May 31, 2019                           
|                                                
|Rounded up shares issued in connection          
|with reverse stock split                        
|                                                
|Common stock issued for conversion              
|of debt                                         
|                                                
|Net loss for the three months ended             
|August 31, 2019                                 
|                                                
|Balance, August 31, 2019                        
|                                                
|Rounded up shares issued in connection          
|with reverse stock split                        
|                                                
|Common stock issued for merger                  
|with Global Nutrition Experience, Inc.          
|                                                
|Net loss for the three months ended             
|November 30, 2019                               
|                                                
|Balance, November 30, 2019                      
|                                                
|Common stock issued for cash                    
|                                                
|Common stock issued for merger                  
|with Global Nutrition Experience, Inc.          
|                                                
|Common stock issued for conversion              
|of debt                                         
|                                                
|Net income for the three months ended           
|February 29, 2020                               
|                                                
|Balance, February 29, 2020                      





Note: The Above statement reflects retroactively the 1 share for 4,000 shares
reverse split effective June 20, 2018 and the 1 share for 400 shares reverse stock split effective September 4, 2019.





|                                       |  | Nine Months Ended February 28, 2019
|-------------------------------------- |  | -----------------------------------
|                                       |  |                                    
|                                       |  | Preferred Stock                    
|                                       |  | Shares                             
|Balance, May 31, 2018                  |  |                                    
|                                       |  |                                    
|Common stock issued for merger         |  |                                    
|with The Marquie Group, Inc.           |  |                                    
|                                       |  |                                    
|Rounded up shares issued in connection |  |                                    
|with reverse stock split               |  |                                    
|                                       |  |                                    
|Net loss for the three months ended    |  |                                    
|August 31, 2018                        |  |                                    
|                                       |  |                                    
|Balance, August 31, 2018               |  |                                    
|                                       |  |                                    
|Common stock issued for conversion     |  |                                    
|of debt                                |  |                                    
|                                       |  |                                    
|Common shares issued for services      |  |                                    
|                                       |  |                                    
|Net loss for the three months ended    |  |                                    
|November 30, 2018                      |  |                                    
|                                       |  |                                    
|Balance, November 30, 2018             |  |                                    
|                                       |  |                                    
|Common stock issued for conversion     |  |                                    
|of debt                                |  |                                    
|                                       |  |                                    
|Net loss for the three months ended    |  |                                    
|February 28, 2019                      |  |                                    
|                                       |  |                                    
|Balance, February 28, 2019             |  |                                    





Note: The above statement
reflects retroactively the 1 share for 4,000 shares reverse split effective June 20, 2018 and the 1 share for 400 shares reverse
stock split effective September 4, 2019.

The accompanying
notes are an integral part of these financial statements

6


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|THE MARQUIE GROUP, INC.                                              
|---------------------------------------------------------------------
|(formerly Music of Your Life, Inc.)                                  
|Consolidated Statements of Cash Flows                                
|(Unaudited)                                                          
|                                                                     
|                                                                     
|                                                                     
|                                                                     
|                                                                     
|CASH FLOWS FROM OPERATING ACTIVITIES:                                
|                                                                     
|Net loss                                                             
|Adjustments to reconcile net income (loss) to net                    
|cash used by operating activities:                                   
|Stock-based compensation                                             
|Depreciation of music inventory                                      
|Expense (income) from derivative liability                           
|Amortization of debt discounts                                       
|Loss on conversion of notes payable and accrued interest             
|Changes in operating assets and liabilities:                         
|Accounts payable                                                     
|Accrued interest payable on notes payable                            
|Accrued consulting fees                                              
|                                                                     
|Net Cash Used by Operating Activities                                
|                                                                     
|CASH FLOWS FROM INVESTING ACTIVITIES:                                
|                                                                     
|Music inventory                                                      
|Trademark costs                                                      
|                                                                     
|Net Cash Used by Investing Activities                                
|                                                                     
|CASH FLOWS FROM FINANCING ACTIVITIES:                                
|                                                                     
|Bank overdraft                                                       
|Proceeds from sale of common stock                                   
|Proceeds from notes payable                                          
|Repayments of notes payable                                          
|Repayments of notes payable to related parties                       
|Net proceeds from notes payable to related parties                   
|                                                                     
|Net Cash Provided by Financing Activities                            
|                                                                     
|NET INCREASE IN CASH AND CASH EQUIVALENTS                            
|                                                                     
|CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                       
|                                                                     
|CASH AND CASH EQUIVALENTS, END OF PERIOD                             
|                                                                     
|SUPPLEMENTAL CASH FLOW INFORMATION                                   
|                                                                     
|Cash Payments For:                                                   
|Interest                                                             
|Income taxes                                                         
|                                                                     
|Non-cash investing and financing activities:                         
|Initial derivative liability charged to debt discounts               
|Conversion of debt and accrued interest into common stock            
|Common stock issued for merger with The Marquie Group, Inc.          
|Common stock issued for merger with Global Nutrition Experience, Inc.
|                                                                     



The accompanying
notes are an integral part of these financial statement

7


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THE MARQUIE GROUP, INC.

(formerly Music of Your Life, Inc.)

Notes to the Consolidated Financial Statements

February 29, 2020

(Unaudited)





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 nine months ended February 29, 2020 are not necessarily indicative of results that may
be expected for the year ending May 31, 2020.



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.



Reverse Stock Splits

Effective June 20, 2018, the Company
effectuated a 1 share for 4,000 shares reverse stock split which reduced the issued and outstanding shares of common stock from
3,642,441,577 shares to 910,610 shares. Effective September 4, 2019, the Company effectuated a 1 share for 400 shares reverse stock
split which reduced the issued and outstanding shares of common stock from 423,639,620 shares to 1,061,357 shares. The accompanying
financial statements have been retroactively adjusted to reflect these reverse stock splits.

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 100,000 shares
of our common stock to TMGI’s stockholders. Following the merger, the Company had 102,277 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, with and without non-THC CBD oil.

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 193,000,000
shares of our common stock to GNE’s stockholder. The GNE business plan is to license intellectual property to third parties.



8


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THE MARQUIE GROUP, INC.

(formerly Music of Your Life, Inc.)

Notes to the Consolidated Financial Statements

February 29, 2020

(Unaudited)



NOTE 2 - LOANS RECEIVABLE – RELATED PARTY



During the year ended May 31, 2013,
the Company loaned $174,950 to the Company’s current chief executive in anticipation of the merger agreement described in
Note 1. The loans were non-interest bearing and due on demand. Effective May 31, 2015, the Company agreed to waive collection of
$100,000 of the remaining $115,950 loans receivable balance in exchange for the chief executive officer’s agreement to waive
payment of the $100,000 accrued consulting fees balance due him at May 31, 2015. As of February 29, 2020, the balance due on this
loan was $15,950.



NOTE 3 - MUSIC INVENTORY



Music inventory consisted of the
following:



|                                                       |  | February 29, 2020 |         | May 31, 2019
|------------------------------------------------------ |  | ----------------- | ------- | ------------
|Digital music acquired for use in operations – at cost |  | $                 | 21,151  |             
|Accumulated depreciation                               |  |                   | (13,377 | )           
|Music inventory – net                                  |  | $                 | 7,774   |             



The Company purchases digital music
to broadcast over the radio and internet. During the nine months ended February 29, 2020, the Company purchased $1,075 worth of
music inventory. For the nine months ended February 29, 2020 and 2019, depreciation of music inventory was $2,698 and $2,490, respectively.



NOTE 4 – ACCRUED CONSULTING FEES

Accrued consulting fees consisted
of the following:

|                                                                                                                                                                                |  | February 29, 2020 |         | May 31, 2019
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ----------------- | ------- | ------------
|Due to Company Chief Executive Officer pursuant to Consulting Agreement dated March 1, 2017 – monthly compensation of $10,000                                                   |  | $                 | 100,900 |             
|Due to wife of Company Chief Executive Officer pursuant to consulting agreement effective August 16, 2018 – monthly compensation of $15,000                                     |  |                   | 165,100 |             
|Due to mother of Company Chief Executive Officer pursuant to Consulting Agreement dated September 1, 2015 – monthly compensation of $5,000                                      |  |                   | 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 |             
|Due to service provider pursuant to Consulting Agreement dated September 1, 2015 – monthly compensation of $1,000                                                               |  |                   | 50,000  |             
|Due to two other service providers                                                                                                                                              |  |                   | 52,000  |             
|Total                                                                                                                                                                           |  | $                 | 644,050 |             



The accrued consulting fees
balance changed as follows:

|                                                               |  | Nine Months Ended February 29, 2019 |          | Year Ended May 31, 2019
|-------------------------------------------------------------- |  | ----------------------------------- | -------- | -----------------------
|Balance, beginning of period                                   |  | $                                   | 475,350  |                        
|Compensation expense accrued pursuant to consulting agreements |  |                                     | 294,000  |                        
|Payments to consultants                                        |  |                                     | (125,300 | )                      
|Balance, end of period                                         |  | $                                   | 644,050  |                        



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THE MARQUIE GROUP, INC.

(formerly Music of Your Life, Inc.)

Notes to the Consolidated Financial Statements

February 29, 2020

(Unaudited)



See Note 9 (Commitments and Contingencies).



NOTE 5 - NOTES PAYABLE



Notes payable consisted of the following:

|                                                                                                   |  | November 30, 2019 |        | May 31, 2018
|-------------------------------------------------------------------------------------------------- |  | ----------------- | ------ | ------------
|Notes payable to an entity, non-interest bearing, due on demand, unsecured                         |  | $                 | 7,500  |             
|Note payable to an individual, due on May 22, 2015, in default (B)                                 |  |                   | 25,000 |             
|Note payable to an entity, non-interest bearing, due on February 1, 2016, in default (D)           |  |                   | 50,000 |             
|Note payable to a family trust, stated interest of $2,500, due on October 31, 2015, in default (E) |  |                   | 7,000  |             
|Note payable to a corporation, stated interest of $5,000, due on October 21, 2015, in default (G)  |  |                   | 50,000 |             
|Note payable to a corporation, stated interest of $5,000, due on November 6, 2015, in default (H)  |  |                   | 50,000 |             
|Note payable to an individual, due on December 20, 2015, in default (I)                            |  |                   | 25,000 |             













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THE MARQUIE GROUP, INC.

(formerly Music of Your Life, Inc.)

Notes to the Consolidated Financial Statements

February 29, 2020

(Unaudited)



|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 entity, interest at 10%, due on April 21, 2017 (R)                                                                      |  |  | —       |  |  |  | 35,496  | 
|Convertible note payable to an entity, interest at 10%, due on June 13, 2017 (S)                                                                       |  |  | —       |  |  |  | 64,233  | 
|Convertible note payable to an entity, interest at 12%, due on October 31, 2017 (U)                                                                    |  |  | —       |  |  |  | 8,313   | 
|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)                                                                              |  |  | 8,600   |  |  |  | 8,600   | 
|Convertible note payable to an entity, interest at 12%, due on March 16, 2018 (Z)                                                                      |  |  | —       |  |  |  | 54,992  | 
|Convertible note payable to an entity, interest at 10%, due on January 11, 2019, in default (AA)                                                       |  |  | 23,167  |  |  |  | 35,381  | 
|Convertible note payable to an entity, interest at 10%, due on demand (CC)                                                                             |  |  | 50,000  |  |  |  | 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 April 4, 2019, in default (EE)                                                          |  |  | 37,500  |  |  |  | 37,500  | 
|Convertible note payable to an entity, interest at 10%, due on September 18, 2019, in default – net of discount of $-0- and $6,781, respectively (FF)  |  |  | 22,500  |  |  |  | 15,719  | 
|Convertible note payable to an entity, interest at 10%, due on September 18, 2019, in default – net of discount of $-0- and $5,425, respectively (GG)  |  |  | 8,505   |  |  |  | 12,575  | 
|Convertible note payable to an entity, interest at 10%, due on September 19, 2019, in default – net of discount of $-0- and $81,022, respectively (HH) |  |  | 200,000 |  |  |  | 118,978 | 
|Convertible note payable to an entity, interest at 10%, due on August 4, 2019, in default – net of discount of $-0- and $61,050, respectively (II)     |  |  | 170,000 |  |  |  | 108,950 | 
|                                                                                                                                                      

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THE MARQUIE GROUP, INC.

(formerly Music of Your Life, Inc.)

Notes to the Consolidated Financial Statements

February 29, 2020

(Unaudited)







|Convertible note payable to an entity, interest at 10%, due on November 13, 2019, in default – net of discount of $-0- and $45,604, respectively (JJ) |  |   | 75,000     |   |  |   | 29,396     |  
|----------------------------------------------------------------------------------------------------------------------------------------------------- |  | - | ---------- | - |  | - | ---------- | -
|Convertible note payable to an entity, interest at 10%, due on November 15, 2019, in default – net of discount of $-0- and $9,205, respectively (KK)  |  |   | 20,000     |   |  |   | 10,795     |  
|Convertible note payable to an entity, interest at 10%, due on November 30, 2019, in default – net of discount of $-0- and $2,507, respectively (LL)  |  |   | 5,000      |   |  |   | 2,493      |  
|Convertible note payable to an entity, interest at 10%, due on December 6, 2019, in default – net of discount of $-0- and $1,553, respectively (MM)   |  |   | 3,000      |   |  |   | 1,447      |  
|Convertible note payable to an entity, interest at 10%, due on December 11, 2019, in default – net of discount of $144 and $5,315, respectively (NN)  |  |   | 9,856      |   |  |   | 4,685      |  
|Convertible note payable to an entity, interest at 12%, due on March 10, 2020 – net of discount of $2,144 and $-0-, respectively (OO)                 |  |   | 56,606     |   |  |   | —          |  
|Convertible note payable to an entity, interest at 10%, due on September 12, 2020 – net of discount of $6,455 and $-0-, respectively (PP)             |  |   | 6,045      |   |  |   | —          |  
|Convertible note payable to an entity, interest at 10%, due on April 23, 2020 – net of discount of $76,721 and $-0-, respectively (QQ)                |  |   | 173,279    |   |  |   | —          |  
|Notes payable to individuals, non-interest bearing, due on demand                                                                                     |  |   | 103,475    |   |  |   | 103,476    |  
|Total Notes Payable                                                                                                                                   |  |   | 1,384,423  |   |  |   | 1,114,919  |  
|Less: Current Portion                                                                                                                                 |  |   | (1,384,423 | ) |  |   | (1,114,919 | )
|Long-Term Notes Payable                                                                                                                               |  | $ | —          |   |  | $ | —          |  



(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.

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THE MARQUIE GROUP, INC.

(formerly Music of Your Life, Inc.)

Notes to the Consolidated Financial Statements

February 29, 2020

(Unaudited)



(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 7 (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.

(R) On July 21, 2016, the Company
issued a $56,250 Convertible Promissory Note to a lender for net loan proceeds of $50,000. The note bore interest at a rate of
10% per annum (24% per annum default rate), was due on April 21, 2017, and was convertible at the option of the lender into shares
of the Company common stock at a Conversion Price equal to $0.0005 per share.

(S) On September 13, 2016, the
Company issued a $40,750 Convertible Promissory Note to a lender for net loan proceeds of $35,000. The note bore interest at a
rate of 10% per annum (24% per annum default rate), was due on June 13, 2017, and was convertible at the option of the lender into
shares of the Company common stock at a Conversion Price equal to $0.0005 per share.

(U) On January 31, 2017, the Company
issued a $46,750 Convertible Promissory Note to a lender for net loan proceeds of $40,000. The note bore interest at a rate of
12% per annum (24% per annum default rate), was due on October 31, 2017, and was 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 25 Trading Day period prior
to the Conversion Date. See Note 7 (Derivative Liability).

(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 $0.0001293 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 7 (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 7 (Derivative Liability).

(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 $0.00004 per share or 60% of the lowest Trading Price during
the 5 Trading Day period prior to the Conversion Date.

(Z) On June 16, 2017, the Company
issued a $37,000 Convertible Promissory Note to a lender for net loan proceeds of $31,000. The note bore interest at a rate of
12% per annum (24% per annum default rate), was due on March 16, 2018, and was 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 25 Trading Day period prior
to the Conversion Date. See Note 7 (Derivative Liability).

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THE MARQUIE GROUP, INC.

(formerly Music of Your Life, Inc.)

Notes to the Consolidated Financial Statements

February 29, 2020

(Unaudited)





(AA) On January 11, 2018, the
Company issued a $500,000 Convertible Promissory Note to a lender. During the quarter ended February 28, 2018, the Company borrowed
$88,000 (of the $500,000), and received net loan proceeds of $75,000. The note bears interest at a rate of 10% per annum 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 15 Trading Day period prior to the Conversion Date. See Note 7 (Derivative Liability). The maturity date
for each tranche funded is twelve months from the effective date of each payment.

(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 7 (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 7 (Derivative Liability).

(EE) On April 4, 2018, the Company
issued a $37,500 Convertible Promissory Note (Tranche 2 of (AA) above) to a lender for net loan proceeds of $35,500. The note bears
interest at a rate of 10% per annum, was due on April 4, 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 7 (Derivative Liability).

(FF) On September 18, 2018, the
Company issued a $22,500 Convertible Promissory Note (Tranche 3 of (AA) above) to a lender for net loan proceeds of $17,500. 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 7 (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 7 (Derivative Liability).

(HH) On December 19, 2018, the
Company issued a $200,000 Convertible Promissory Note to a lender for net loan proceeds of $169,000. The note bears interest at
a rate of 10% per annum, was due on September 19, 2019, 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 (i) the lowest Trading Price during the 25 Trading Day period prior to
December 19, 2018 or (ii) 50% of the lowest Trading Price during the 25 Trading Day period prior to the Conversion Date. See Note
7 (Derivative Liability).

(II) On February 4, 2019, the
Company issued a $170,000 Convertible Promissory Note to a lender for net loan proceeds of $149,955. The note bears interest at
a rate of 10% per annum, was due on August 4, 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 25 Trading Day period prior to the Conversion Date.
See Note 7 (Derivative Liability).

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THE MARQUIE GROUP, INC.

(formerly Music of Your Life, Inc.)

Notes to the Consolidated Financial Statements

February 29, 2020

(Unaudited)





(JJ) On February 13, 2019, the
Company issued a $75,000 Convertible Promissory Note to a lender for net loan proceeds of $67,500. The note bears interest at a
rate of 10% per annum, was due on November 13, 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 7 (Derivative Liability).

(KK) On November 15, 2018, the
Company issued a $20,000 Convertible Promissory Note (Tranche 4 of (AA) above) to a lender for net loan proceeds of $20,000. The
note bears interest at a rate of 10% per annum, was due on November 15, 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 7 (Derivative Liability).

(LL) On November 30, 2018, the
Company issued a $5,000 Convertible Promissory Note (Tranche 5 of (AA) above) to a lender for net loan proceeds of $5,000. The
note bears interest at a rate of 10% per annum, was due on November 30, 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 7 (Derivative Liability).

(MM) On December 6, 2018, the
Company issued a $3,000 Convertible Promissory Note (Tranche 6 of (AA) above) to a lender for net loan proceeds of $3,000. The
note bears interest at a rate of 10% per annum, was due on December 6, 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 7 (Derivative Liability).

(NN) On December 11, 2018, the
Company issued a $10,000 Convertible Promissory Note (Tranche 7 of (AA) above) to a lender for net loan proceeds of $10,000. The
note bears interest at a rate of 10% per annum, was due on December 11, 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 7 (Derivative Liability).

(OO) On June 10, 2019, the Company
issued a $58,750 Convertible Promissory Note to a lender for net loan proceeds of $50,000. The note bears interest at a rate of
12% per annum (24% per annum default rate), is due on March 10, 2020, 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 25 Trading Day period prior
to the Conversion Date. See Note 7 (Derivative Liability).

(PP) On September 5, 2019, the
Company issued a $12,500 Convertible Promissory Note to a lender for net loan proceeds of $10,000. The note bears interest at a
rate of 10% per annum, is due on September 5, 2020, 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 7 (Derivative Liability).

(QQ) On October 23, 2019, the
Company issued a $260,000 Convertible Promissory Note to a lender for net loan proceeds of $234,000. The note bears interest at
a rate of 10% per annum, is due on April 23, 2020, 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 25 Trading Day period prior to the Conversion Date.
See Note 7 (Derivative Liability).

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THE MARQUIE GROUP, INC.

(formerly Music of Your Life, Inc.)

Notes to the Consolidated Financial Statements

February 29, 2020

(Unaudited)





Concentration of Notes Payable:



The principal balance of the notes
payable was due to:



|                    |  | February 29, 2020 |           | May 31, 2019
|------------------- |  | ----------------- | --------- | ------------
|                    |  |                   |           |             
|Lender A            |  | $                 | 133,667   |             
|Lender B            |  |                   | 258,750   |             
|Lender C            |  |                   | 420,000   |             
|14 other lenders    |  |                   | 657,470   |             
|                    |  |                   |           |             
|Total               |  |                   | 1,469,887 |             
|                    |  |                   |           |             
|Less debt discounts |  |                   | (85,464   | )           
|                    |  |                   |           |             
|Net                 |  | $                 | 1,384,423 |             



NOTE 6 - NOTES PAYABLE – RELATED PARTIES



Notes payable – related parties
consisted of the following:



|                                                                                                                                                                                                                                                                                                                                                                                           |  | February 29, 2020 |          | May 31, 2019
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ |  | ----------------- | -------- | ------------
|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    |             
|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                                                                                                                                                                                                                                          |  |                   | 103,250  |             
|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, convertible at the option of the lender into shares of Company common stock equal to 60% of the lowest Trading Price during the 20 Trading Day period prior to the Conversion Date.  See Note 7 (Derivative Liability) |  |                   | 50,000   |             
|Total Notes Payable                                                                                                                                                                                                                                                                                                                                                                        |  |                   | 155,323  |             
|Less: Current Portion                                                                                                                                                                                                                                                                                                                                                                      |  |                   | (155,323 | )           
|Long-Term Notes Payable                                                                                                                                                                                                                                                                                                                                                                    |  | $                 | —        |             



16


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THE MARQUIE GROUP, INC.

(formerly Music of Your Life, Inc.)

Notes to the Consolidated Financial Statements

February 29, 2020

(Unaudited)



NOTE 7 - DERIVATIVE LIABILITY



The derivative liability at February
29, 2020 and May 31, 2019 consisted of:



|                                                                                   |  | November 30, 2019 |           | May 31, 2019        
|---------------------------------------------------------------------------------- |  | ----------------- | --------- | --------------------
|                                                                                   |  | Face Value        |           | Derivative Liability
|Convertible note payable issued December 29, 2015, due December 29, 2016 (M)       |  | $                 | 40,000    |                     
|Convertible note payable issued January 31, 2017, due August 31, 2017 (U)          |  |                   | —         |                     
|Convertible note payable issued April 5, 2017, due on demand (W)                   |  |                   | 29,000    |                     
|Convertible note payable issued April 5, 2017, due on demand (X)                   |  |                   | 21,500    |                     
|Convertible note payable issued June 16, 2017, due on March 16, 2018 (Z)           |  |                   | —         |                     
|Convertible note payable issued January 11, 2018, due on January 11, 2019 (AA)     |  |                   | 23,167    |                     
|Convertible note payable issued December 1, 2017, due on demand (BB)               |  |                   | 50,000    |                     
|Convertible note payable issued December 1, 2017, due on demand (CC)               |  |                   | 50,000    |                     
|Convertible note payable issued March 5, 2018, due on March 5, 2019 (DD)           |  |                   | 35,000    |                     
|Convertible note payable issued April 4, 2018, due on April 4, 2019 (EE)           |  |                   | 37,500    |                     
|Convertible note payable issued September 18, 2018, due on September 18, 2019 (FF) |  |                   | 22,500    |                     
|Convertible note payable issued September 18, 2018, due on September 18, 2019 (GG) |  |                   | 8,505     |                     
|Convertible note payable issued December 19, 2018, due on September 19, 2019 (HH)  |  |                   | 200,000   |                     
|Convertible note payable issued February 4, 2019, due on August 4, 2019 (II)       |  |                   | 170,000   |                     
|Convertible note payable issued February 13, 2019, due on November 13, 2019 (JJ)   |  |                   | 75,000    |                     
|Convertible note payable issued November 15, 2018, due on November 15, 2019 (KK)   |  |                   | 20,000    |                     
|Convertible note payable issued November 30, 2018, due on November 30, 2019 (LL)   |  |                   | 5,000     |                     
|Convertible note payable issued December 6, 2018, due on December 6, 2019 (MM)     |  |                   | 3,000     |                     
|Convertible note payable issued December 11, 2018, due on December 11, 2019 (NN)   |  |                   | 10,000    |                     
|Convertible note payable issued June 10, 2019, due on March 10, 2020 (OO)          |  |                   | 58,750    |                     
|Convertible note payable issued September 5, 2019, due on September 5, 2020 (PP)   |  |                   | 12,500    |                     
|Convertible note payable issued October 23, 2019, due on April 23, 2020 (QQ)       |  |                   | 250,000   |                     
|Totals                                                                             |  | $                 | 1,121,422 |                     
|                                                                                   |  |                   |           |                     



17


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THE MARQUIE GROUP, INC.

(formerly Music of Your Life, Inc.)

Notes to the Consolidated Financial Statements

February 29, 2020

(Unaudited)





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 February 29, 2020 include (1) stock price of $0.002 per share, (2) exercise prices
ranging from $0.0006 to $0.0008 per share, (3) terms ranging from -0- days to 189 days, (4) expected volatility of 848% and (5)
risk free interest rates ranging from 1.11% to 1.45%.



Assumptions used for the calculations
of the derivative liability of the notes at May 31, 2019 include (1) stock price of $0.60 per share, (2) exercise prices ranging
from $0.15 to $0.20 per share, (3) terms ranging from 0 days to 166 days, (4) expected volatility of 490% and (5) risk free interest
rates ranging from 0.86% to 2.35%.



Concentration of Derivative Liability:



The derivative liability relates
to convertible notes payable due to:



|                |  | February 29, 2020 |           | May 31, 2019
|--------------- |  | ----------------- | --------- | ------------
|                |  |                   |           |             
|Lender A        |  | $                 | 227,201   |             
|Lender B        |  |                   | 429,667   |             
|Lender C        |  |                   | 905,333   |             
|Lender D        |  |                   | 120,000   |             
|6 other lenders |  |                   | 388,855   |             
|                |  |                   |           |             
|Total           |  | $                 | 2,071,056 |             



18


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THE MARQUIE GROUP, INC.

(formerly Music of Your Life, Inc.)

Notes to the Consolidated Financial Statements

February 29, 2020

(Unaudited)





NOTE 8 - 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 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 100,000 shares of common
stock of the Company were issued to the TMG shareholders.

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 100,000 shares are (1)
Marc Angell (CEO of the Company) and Jacquie Angell (50,000 shares), (2) The OZ Corporation (holder of $103,250 of Company notes
payable at May 31, 2019 and February 29, 2020) (25,000 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) (25,000 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 100,000 shares of common stock)
were recorded at $-0-, the historical cost of the property to TMG.

During the year ended May 31, 2019,
the Company issued an aggregate of 275,435 shares of common stock for the conversion of notes payable and accrued interest in the
aggregate amount of $283,977. We incurred a loss on the conversion of notes payable and accrued interest of $1,709,230, which represents
the excess of the $1,993,207 fair value of the 275,435 shares at the dates of conversion over the $283,977 amount of debt satisfied.



On October 16, 2018, the Company
issued 5,000 shares of its common stock to the consulting firm entity discussed in Note 9. The $41,000 estimated fair value of
the 5,000 shares (based on the
$8.20 closing price of our common stock on October 16, 2018) has been expensed and included in “Salaries and Consulting Fees”
in the three months ended November 30, 2018.



During the nine months ended February
29, 2020, the Company issued an aggregate of 14,490,073 shares of common stock for the conversion of notes payable and accrued
interest in the aggregate amount of $70,208. We incurred a loss on the conversion of notes payable and accrued interest of $137,197,
which represents the excess of the $207,406 fair value of the 4,490,073 shares at the dates of conversion over the $70,209 amount
of debt satisfied.



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 1,333,333,333 shares of common stock at a price of $0.0075 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 $0.0075 per share to $0.0035 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 160,000,000 shares
of our common stock to GNE’s stockholders. Following the merger, the Company had 161,061,647 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 160,000,000
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 160,000,000 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 33,000,000 shares
of common stock as part of the merger.







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THE MARQUIE GROUP, INC.

(formerly Music of Your Life, Inc.)

Notes to the Consolidated Financial Statements

February 29, 2020

(Unaudited)





At February 29, 2020, there are
no stock options or warrants outstanding.





NOTE 9 - 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 4 – Accrued Consulting Fees). The Consulting
Agreement with the Company’s Chief Executive Officer provides for monthly compensation of $10,000 and has a term expiring
December 31, 2020. The Consulting Agreement with the wife of the Company’s Chief Executive Officer provides for monthly compensation
of $15,000 and has a term expiring July 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 accrued at May 31, 2019 and February 29, 2020.



On October 16, 2018 (see Note 8),
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.



Consulting Agreement with New
Jersey Entity



On December 5, 2019 and January 13, 2020, the Company
paid $50,000 and $50,000, respectively to a consulting firm entity (the “Consultant”) pursuant to Consulting Agreements
dated December 4, 2019 and January 11, 2020. The Consulting Agreements provide for the Consultant to perform certain strategic
planning, business development, and investor relations services for the Company for total compensation of $100,000 cash (which
was expensed and included in “Other Selling, General and Administrative Expenses” in the Consolidated Statement of
Operations for the three  months ended February 29, 2020). The terms of the Consulting Agreements are for 90 days each.



20


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THE MARQUIE GROUP, INC.

(formerly Music of Your Life, Inc.)

Notes to the Consolidated Financial Statements

February 29, 2020

(Unaudited)







NOTE 10 - 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 February 29, 2020, the Company had negative working capital of
$4,524,937 and an accumulated deficit of $9,159,038. 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, 2020 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 11 – SUBSEQUENT EVENTS



Subsequent to February 29, 2020,
the Company sold a total of 59,428,571 shares of its Form 1-A common stock to 3 investors at a price of $0.0035 per share for net
proceeds of $208,000.



Subsequent to February 29, 2020, the Company issued an
aggregate of 47,968,380 shares of common stock for the conversion of notes payable and accrued interest in the aggregate amount
of $9,609.















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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 is a
direct to consumer, health and beauty products platform with a pipeline of innovative solutions to pervasive wellness concerns
that use advanced formulations of plant-based, amino-acid and CBD alternatives to chemical ingredients. Utilizing our syndicated
radio network subsidiary, Music of Your Life, the Company is able to market its products directly to the consumer using commercials
to our AM, FM and HD radio station affiliates, and globally over the internet. Our principal source of revenue comes from selling
radio spots, or commercials on the network, and licensing our trade names. 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 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 February 29, 2020 and February
28, 2019.



Revenues. The Company
generated net revenues of $163 and $1,496 during the three months ended February 29, 2020 and February 28, 2019, respectively.
The Company generated net revenues of $379 and $4,469 during the nine months ended February 29, 2020 and February 28, 2019, respectively.
Revenues were generated from spot sales on our syndicated radio network. The decrease in revenues in 2020 resulted from large amounts
of down time experienced in 2020 due to the COVID-19 pandemic.



Cost of Sales. Our
cost of sales were $-0- for the three and nine months ended February 29, 2020 and February 28, 2019. 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. Salaries and consulting fees were $76,000 and $71,500 for the three months ended February 29, 2020 and February 28, 2019,
respectively. Salaries and consulting fees were $295,000 and $239,000 (including stock-based compensation of $-0- and $41,000)
for the nine months ended February 29, 2020 and February 28, 2019, 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 $21,678 and $20,578 for the three months ended February 29, 2020 and February 28, 2019, respectively. Professional
fees were $73,326 and $60,773 for the nine months ended February 29, 2020 and February 28, 2019, respectively. We anticipate that
professional fees will increase in future periods as we scale up our operations.



Other Selling, General
and Administrative Expenses. Other selling, general and administrative expenses were $145,229 and $71,714 for the three months
ended February 29, 2020 and February 28, 2019, respectively. Other selling, general and administrative expenses were $166,774 and
$104,752 for the nine months ended February 29, 2020 and February 28, 2019, respectively. We anticipate that SG&A expenses
will increase commensurate with an increase in our operations.





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Other Income (Expenses).
The Company had net other income of $3,274,632 for the three months ended February 29, 2020 compared to net other expenses of
$1,722,989 for the three months ended February 28, 2019. The Company had net other expenses of $676,077 for the nine months ended
February 29, 2020 compared to net other expenses of $3,334,359 for the nine months ended February 28, 2019. During the nine months
ended February 29, 2020, the company recorded income on the change in the fair value of the derivative liability in the amount
of $65,616. During the nine months ended February 28, 2019, the company recorded expense on the change in the fair value of the
derivative liability in the amount of $1,635,356. Other expenses incurred were also comprised of interest expenses related to
notes payable in the amount of $604,496 and $344,376, which included the amortization of debt discounts of $464,247 and $200,925,
respectively. During the nine months ended February 29, 2020 and February 28, 2019, the Company recorded a loss on the conversion
of notes payable and accrued interest in the amount of $137,197 and $1,354,627, 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 February 29, 2020,
our primary source of liquidity consisted of $21,024 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 February 29, 2020 of $4,524,937 and $9,159,038,
respectively, which raises doubt about our ability to continue as a going concern. We generated a net loss for the nine months
ended February 29, 2020 of $1,210,798. 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.



Our significant accounting
policies are summarized in Note 2 of our financial statements included in our May 31, 2019 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.









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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.



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.













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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 8 in the notes
to the financial statements.



With respect to the transactions
in Note 8 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 20 notes payable aggregating $881,672 at February 29, 2020. See Note 5 to the Consolidated Financial
Statements.



Item 4. Mine Safety Disclosures



Not Applicable.



Item 5. Other Information.



None.



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Item 6. Exhibits.



|Exhibit No. |  | Description                                                                                            
|----------- |  | -------------------------------------------------------------------------------------------------------
|3.1         |  | Amended and Restated Articles of Incorporation of Music of Your life, Inc.                             
|3.2         |  | Amended and Restated Bylaws of Music of Your Life, Inc.                                                
|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                                                 
|            |  |                                                                                                        
|            |  |                                                                                                        



---





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: May 29, 2020 | By:                    
|                   |                        
|                   |                        
|                   |                        





















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