JUBILANT FLAME INTERNATIONAL: MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL POSITION AND RESULTS OF OPERATIONS (Form 10-Q)

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The following discussion should be read in conjunction with the financial statements and the notes thereto included elsewhere in this Quarterly Report on Form 10-Q. This quarterly report on Form 10-Q contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Certain statements contained in the MD&A are forward-looking statements that involve risks and uncertainties. Forward-looking statements are not historical facts, but rather are based on current expectations, estimates, assumptions and projections about our industry, business and future financial results. Our actual results could differ materially from the results contemplated by these forward-looking statements due to a number of factors, including those discussed in other sections of this Quarterly Report on Form 10-Q.


Our Business


Jubilant Flame International, Ltd., (the “Company”, “the” Holder “,” we “,” our “or” our “) was formed on September 29, 2009 under the name of Freedom Vision, Inc. The Company provided web development and marketing services to its clients. At
December 5, 2012, the Company sold its subsidiary to a shareholder for a nominal sum, as well as other management operations. At
December 16, 2012, the Company changed its name to Jiu Feng Investment Hong Kong, Inc. At Jan. 27, 2013, the Company announced the change of its ticker symbol from “LBYV” to “JFIL”. At July 24, 2013, the Company changed its business line to the medical sector. At Aug 18, 2015 the Company changed its name to
Jubilant Flame International, Ltd.

From the fourth quarter of the closed financial year Feb. 28, 2018, the Company began to market and sell cosmetic products imported from Asia -Acropass series products – in United States Marlet. In early 2020, the Company ceased the marketing and sale of cosmetic products in United States.

From the third quarter of the closed financial year February 29, 2020, the company began providing technical assistance services for the development of new nutritional food products for sale to customers in the United States.


Results of Operations



Revenue


We did not see any revenue during the three months ended August 31, 2021 and 2020.



Operating Expenses



For the three months ended August 31, 2021 compared to the three months ended
August 31, 2020

The main components of our operating expenses for the closed quarter August 31, 2021 and 2020 are presented in the table below:


                            Three Months       Three Months
                               Ended              Ended
                               Aug 31             Aug 31
                                2021               2020

Officer compensation                4,500              4,500
Professional fee                   10,761             12,325
OTC Filing fees                     3,000              3,000
Other G&A                              72                 48
Total operating expenses   $       18,333     $       19,872



The $ 1,539 decrease in our operating expenses for the closed quarter August 31, 2021 compared to the three months ended August 31, 2020, is mainly explained by a decrease in $ 1,564 decrease in professional fees.

For the past six months August 31, 2021 compared to the closed semester August 31, 2020



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The main components of our operating expenses for the half-year ended August 31, 2021 and 2020 are presented in the table below:


                            Six Months Ended       Six Months Ended
                                 Aug 31                 Aug 31
                                  2021                   2020

Officer compensation                    9,000                  9,000
Selling expense                             -                     18
Professional fee                       25,032                 27,407
OTC Filing fees                         6,000                  6,000
Other G&A                                  72                    548
Total operating expenses   $           40,104     $           42,972



The $ 2,868 decrease in our operating expenses for the half-year ended August 31, 2021 compared to the six months ended August 31, 2020, is mainly explained by a decrease in $ 2,375 decrease in professional fees.


Other Income


For the three months ended August 31, 2021, we recorded other income of
$ 22,000 against zero for the corresponding period in 2020.

For the past six months August 31, 2021, we recorded other income of $ 22,243
against zero for the corresponding period in 2020.

No other expenses incurred during the completed three-month and six-month periods
August 31, 2021 and 2020.


Net income (Loss)


For the three months ended August 31, 2021, we saw a net profit of $ 3,667 compared to the net loss of $ 19,872 for the corresponding period in 2020.

For the past six months August 31, 2021, we saw a net loss of $ 17,861
compared to the net loss of $ 42,972 for the corresponding period in 2020.

Liquidity and capital resources


Working Capital



                           August 31,      February 28,
                              2021              2021
Current Assets            $     36,996     $      20,825
Current Liabilities       $  1,164,799     $   1,139,767
Working Capital Deficit   $ (1,127,803 )   $  (1,118,942 )





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From August 31, 2021, the Company had current assets of $ 36,996, mainly comprising cash of $ 24,612, prepaid expenses of $ 3,000 and accounts receivable from $ 9,384, and current liabilities of $ 1,164,799, resulting in a working capital deficit of $ 1,127,803. The Company had limited profitable operating activities and has an accumulated deficit of $ 3,610,084 from August 31, 2021. This raises substantial doubt as to the Company’s ability to continue operating.

The financial statements have been prepared on a going concern basis, which assumes that the Company will be able to realize its assets and meet its obligations in the normal course of business for the foreseeable future.

Based on the Company’s current operating plan and the impact of the global coronavirus pandemic, the Company does not have sufficient cash and cash equivalents to fund its operations for at least the next twelve months. . The Company will need to secure additional financing to operate our business. The Company may raise additional capital by selling its equity securities, by offering debt securities or by borrowing from financial institutions or related parties. In doing so, the Company hopes to generate sufficient capital to execute its business plan in the area of ​​technology support for nutrition products on an ongoing basis. Management believes that the steps being taken to obtain additional funds provide the Company with an opportunity to continue to operate. There can be no assurance that the Company will be successful in achieving these objectives.

Cash flow from operating activities

Our net cash used in operating activities decreased by $ 40,240 in the past six months August 31, 2021 of $ (5,639) compared to the net cash used in operating activities during the six months ended August 31, 2020 of $ 34,601. The decrease in net cash used in operating activities is mainly attributable to a $ 22,000
shared operating income and a decrease in $ 15,147 in payment of professional fees.

Cash flow from investing activities

We did not generate or use cash from investing activities during the six months ended August 31, 2021 or 2020.

Cash flow from financing activities

Our cash flow from financing activities decreased by $ 26,456 for the six months ended August 31, 2020 To $ 16,532 for the six months ended August 31, 2021. During both periods, cash was provided through loans from related parties.



Future Financing



We anticipate that additional financing will be required in the form of equity financing from the sale of our common shares, an offering of debt securities or borrowings from financial institutions or related parties. However, we cannot assure investors that we will be able to raise sufficient funds through the sale of our common shares or through a loan from our directors to meet our obligations over the next twelve months.

Off-balance sheet provisions

From August 31, 2021, we did not have any off-balance sheet arrangements, as defined in Section 303 (a) (4) (ii) of Regulation SK.

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