Marquie Group Inc (TMGI)

[DarkPool]

Sure do. Right from the 10k. Fing unbelievable. But I knew immediately to short the donkey. Didn't want to share my finding till I covered. But here it is.

Provision for Impairment of Intangible Assets . During the years ended May 31, 2016 and 2015 the Company paid $59,000 and $158,000, respectively, to the wife of the chief executive officer as deposits for certain trademarks and other intellectual property to be assigned to the Company. Under the agreement, if the Company failed to pay a total of $250,000 by December 31, 2015, the Company was to forfeit all rights, title and interest in the trademarks and intellectual property unless extended by her. As of the date of this filing, the agreement has not been extended but the Company continues to use the intangible assets and is in negotiations to extend the agreement. At May 31, 2016, it is not certain whether the intangible assets will ultimately be assigned to the Company. Further, it is not more likely than not that the Company will be able to generate sufficient future cash flows from those assets to recover any or all of the $243,000 deposits balance. Accordingly, the Company recognized a provision for impairment expense of $243,000 at May 31, 2016 and reduced the net carrying balance of the deposits for acquisition of intangible assets to $-0-.