Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Aug. 31, 2018 | Oct. 12, 2018 | |
Document And Entity Information | ||
Entity Registrant Name | JUBILANT FLAME INTERNATIONAL, LTD. | |
Entity Central Index Key | 1,517,389 | |
Document Type | 10-Q | |
Document Period End Date | Aug. 31, 2018 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --02-28 | |
Is Entity's Reporting Status Current? | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 18,460,708 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2,019 | |
Entity Emerging Growth Company | false | |
Entity Small Business | true |
Balance Sheets
Balance Sheets - USD ($) | Aug. 31, 2018 | Feb. 28, 2018 |
Current assets | ||
Cash | $ 3,450 | $ 8,036 |
Account receivable | 120 | 594 |
Inventory | 7,464 | 5,933 |
Prepaid expenses | 2,500 | 7,500 |
Total current assets | 13,534 | 22,063 |
Other assets | ||
Website net of $25,000 and $21,527 of amortization, respectively | 3,473 | |
Total other assets | 3,473 | |
Total Assets | 13,534 | 25,536 |
Current liabilities | ||
Accounts payable and accrued liabilities | 43 | |
Due to related party | 22,736 | 12,842 |
Accrued officer compensation | 510,375 | 460,125 |
Loan payable - related parties | 416,660 | 390,828 |
Total current liabilities | 949,814 | 863,795 |
Total Liabilities | 949,814 | 863,795 |
Stockholders' Deficit | ||
Common stock, $0.001 par value per share 75,000,000 shares authorized; 18,460,708 and 18,410,708 shares issued and outstanding, respectively | 18,461 | 18,411 |
Additional paid in capital | 2,364,070 | 2,259,120 |
Accumulated deficit | (3,318,811) | (3,115,790) |
Total Stockholders' Deficit | (936,280) | (838,259) |
Total Liabilities and Stockholders' Deficit | $ 13,534 | $ 25,536 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - USD ($) | Aug. 31, 2018 | Feb. 28, 2018 |
Current assets | ||
Website net of amortization | $ 25,000 | $ 21,527 |
Stockholders' Deficit | ||
Common Stock, par value | $ 0.001 | $ 0.001 |
Common Stock, shares authorized | 75,000,000 | 75,000,000 |
Common Stock, shares issued | 18,460,708 | 18,410,708 |
Common Stock, shares outstanding | 18,460,708 | 18,410,708 |
Statements of Operations (Unaud
Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Aug. 31, 2018 | Aug. 31, 2017 | Aug. 31, 2018 | Aug. 31, 2017 | |
Statements Of Operations | ||||
Sales of goods | $ 5,849 | $ 14,091 | ||
Total sales | 5,849 | 14,091 | ||
Costs and Operating Expenses: | ||||
Cost of goods sold | 3,926 | 7,486 | ||
Operating, selling, general and administrative | 95,309 | 174,318 | 209,626 | 354,922 |
Total operating expenses | 99,235 | 174,318 | 217,112 | 354,922 |
Loss from operations | (93,386) | (174,318) | (203,021) | (354,922) |
Other income (expense): | ||||
Change and gain in derivatives liability | 1,233 | (3,120) | ||
Debt discount amortization expense | (393) | (4,238) | ||
Interest expense | (320) | (320) | ||
Other income (expense) net | 520 | (7,678) | ||
Income (loss) from continuing operations before provision for income tax | (93,386) | (173,798) | (203,021) | (362,600) |
Provision for income tax: | ||||
Net income (loss) | $ (93,386) | $ (173,798) | $ (203,021) | $ (362,600) |
Net loss per share (Basic and fully diluted) | $ (0.01) | $ (0.01) | $ (0.01) | $ (0.02) |
Weighted average number of common shares outstanding | 18,435,980 | 18,437,998 | 18,423,480 | 18,171,105 |
Statements of Changes in Stockh
Statements of Changes in Stockholders' Deficit - 6 months ended Aug. 31, 2018 - USD ($) | Common Stock | Additional paid-in capital | Accumulated deficit | Total |
Beginning Balance, Shares at Feb. 28, 2018 | 18,410,708 | |||
Beginning Balance, Amount at Feb. 28, 2018 | $ 18,411 | $ 2,259,120 | $ (3,115,790) | $ (838,259) |
Shares issued for stock compensation, Shares | 50,000 | |||
Shares issued for stock compensation, Amount | $ 50 | 104,950 | 105,000 | |
Net loss for the period | (203,021) | (203,021) | ||
Ending Balance, Shares at Aug. 31, 2018 | 18,460,708 | |||
Ending Balance, Amount at Aug. 31, 2018 | $ 18,461 | $ 2,364,070 | $ (3,318,811) | $ (936,280) |
Statements of Cash Flows (Unaud
Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Aug. 31, 2018 | Aug. 31, 2017 | |
Cash Flows from Operating Activities: | ||
Net loss | $ (203,021) | $ (362,600) |
Adjustments to reconcile net (loss) to net cash (used in) operating activities | ||
Website amortization | 3,473 | 4,167 |
Debt discount amortization | 4,238 | |
Change in derivatives liability | 4,362 | |
Derivatives extinguishment gain | (1,242) | |
Stock compensation | 105,000 | 212,625 |
Changes in Current Assets and Liabilities: | ||
Account receivable | 474 | |
Inventory | (1,531) | |
Prepaid expense | 5,000 | 4,000 |
Accounts payable | 44 | (575) |
Due to related party | 9,894 | |
Accrued officers' compensation | 50,250 | 100,500 |
Net cash used in operating activities | (30,417) | (34,525) |
Cash Flows from Financing Activities: | ||
Net proceeds from related party loans | 25,832 | 40,079 |
Debt payoff | (800) | |
Net cash provided by financing activities | 25,832 | 39,279 |
Net Increase In Cash | (4,586) | 4,754 |
Cash at Beginning of Period | 8,036 | 3,653 |
Cash at End of Period | 3,450 | 8,407 |
Schedule of Non-Cash Investing and Financing Activities | ||
Convertible note reduction associated with note conversion | (6,600) | |
Derivative liability reduction associated with note conversion | (12,276) | |
Officer debt and stock compensation forgiveness | (410,890) | |
Total schedule of Non-Cash Investing and Financing Activities | (429,766) | |
Supplemental Disclosure | ||
Cash paid for interest | $ 320 |
ORGANIZATION AND OPERATIONS
ORGANIZATION AND OPERATIONS | 6 Months Ended |
Aug. 31, 2018 | |
Notes to Financial Statements | |
NOTE 1. ORGANIZATION AND OPERATIONS | Jubilant Flame International, Ltd. (the “Company”), was formed on September 29, 2009 under the name Liberty Vision, Inc. On August 18, 2015, the Company changed its name to Jubilant Flame International, Ltd. From the fourth quarter of the fiscal year ended February 28, 2018, the Company started to market and sell cosmetics products imported from Asia -Acropass Series products – in the United States market. The Company purchased the inventory from a related party company in China. The Company contracted with a third party to operate the online shopping platform and marketing campaign in the United States. The Company has the right to develop and market medical products under a license from BioMark. The primary intended products include Bone-Induction Artificial Bone (“BIAB”) and Vacuum Sealing Drainage (“VSD”) but the Company currently does not have any plan to deploy such licenses and is focusing its operation on the Acropass products. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Aug. 31, 2018 | |
Notes to Financial Statements | |
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | Basis of Presentation The Company’s financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Interim Financial Information Interim financial statements included herein have been prepared by the Company, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) as promulgated in Item 210 of Regulation S-X. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) have been condensed or omitted pursuant to such SEC rules and regulations. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation of financial position as of August 31, 2018, results of operations, changes in stockholders’ equity (deficit) and cash flows for the six month periods ended August 31, 2018 and 2017, as applicable, have been made. The results for these interim periods are not necessarily indicative of the results for the entire year. The accompanying financial statements should be read in conjunction with the financial statements and the notes thereto included in the Company’s Form 10-K. Use of Estimates and Assumptions The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Management bases its estimates on historical experience and on various assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. The Company’s significant estimates include income tax provisions and valuation allowances of deferred tax assets; the fair value of financial instruments and the assumption that the company will continue as a going concern. Those significant accounting estimates or assumptions bear the risk of change due to the fact that there are uncertainties attached to those estimates or assumptions, and certain estimates or assumptions are difficult to measure or value. Recent Accounting Pronouncements Pronouncements Adopted in Fiscal 2018 In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). Net Loss Per Common Share Basic net loss per share is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the period. Diluted net loss per share is computed by dividing net loss by the weighted average number of shares of common stock and potentially outstanding shares of common stock during each period. |
GOING CONCERN
GOING CONCERN | 6 Months Ended |
Aug. 31, 2018 | |
Notes to Financial Statements | |
NOTE 3. GOING CONCERN | The financial statements have been prepared on a going concern basis which assumes the Company will be able to realize its assets and discharge its liabilities in the normal course of business for the foreseeable future. As of August 31, 2018, the Company had current assets of $13,534, and current liabilities total $949,814 resulting in a working capital deficit of $936,280. The Company currently has small scale trading activities and has an accumulated deficit of $3,318,811 as of August 31, 2018. This raises substantial doubt about the Company’s ability to continue as a going concern. The Company may raise additional capital through the sale of its equity securities, through an offering of debt securities, or through borrowings from financial institutions or related parties. By doing so, the Company hopes to generate sufficient capital to execute its business plan in the cosmetics and medical sector on an ongoing basis. Management believes that actions presently being taken to obtain additional funding provide the opportunity for the Company to continue as a going concern. There is no guarantee the Company will be successful in achieving these objectives. |
PREPAID EXPENSE
PREPAID EXPENSE | 6 Months Ended |
Aug. 31, 2018 | |
Notes to Financial Statements | |
NOTE 4. PREPAID EXPENSE | The Company is paying an annual fee for its OTC Markets service. The service period is from December 1, 2017 to November 30, 2018. The service charge is recorded as a prepaid expense and amortized using straight line amortization over the service period. The prepaid expense balance is $2,500 as of August 31, 2018 compared to $7,500 as of February 28, 2018. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 6 Months Ended |
Aug. 31, 2018 | |
Notes to Financial Statements | |
NOTE 5. RELATED PARTY TRANSACTIONS | In support of the Company’s efforts and cash requirements, it must rely on advances from related parties until such time that the Company can support its operations or attains adequate financing through sales of its common stock or traditional debt financing. There is no formal written commitment for continued support by shareholders. The advances are considered temporary in nature and have not been formalized by a promissory note. As of August 31, 2018, the Company had a $416,660 loan outstanding with its CEO, Ms. Yan Li. This compares with the outstanding balance of $390,828 for Ms. Yan Li at February 28, 2018. The loans are non-interest bearing, due upon demand and unsecured. A related party is providing accounting service to the company at an estimated annual service fee of $20,000. From November 2017, the Company started to purchase cosmetic products from a related party controlled by our CEO. As of the six-month period ended August 31, 2018, the Company incurred a total of $22,736 due to related party for inventory purchase and accrued service fee. This compares with a total of $12,842 due to related party for inventory purchase and accrued service fee at February 28, 2018. |
ACCRUED OFFICER COMPENSATION AN
ACCRUED OFFICER COMPENSATION AND STOCK COMPENSATION | 6 Months Ended |
Aug. 31, 2018 | |
Notes to Financial Statements | |
NOTE 6. ACCRUED OFFICER COMPENSATION AND STOCK COMPENSATION | On December 15, 2015, the Company entered into employment agreements with its president, Ms. Yan Li, and its secretary and treasurer, Mr. Robert Ireland. On August 30, 2017, Mr. Robert Ireland resigned as Secretary/Treasurer of the company. As of August 31, 2018, a total of $510,375 had been accrued as salary compensation payable compared to $460,125 at February 28, 2018 to the president only. During the three months and six months ended August 31, 2018, a total of $52,500 and $105,000 stock compensation had been recorded to the president respectively compared to $105,000 and $210,000 for the same periods in the prior year to the president and former secretary and treasurer. |
STOCKHOLDERS EQUITY
STOCKHOLDERS EQUITY | 6 Months Ended |
Aug. 31, 2018 | |
Notes to Financial Statements | |
NOTE 7. STOCKHOLDERS EQUITY | At the quarter ended August 31, 2018, a total of 50,000 Shares were issued to the president as stock compensation. Total value of $105,000 has been recorded for the stock compensation. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Aug. 31, 2018 | |
Notes to Financial Statements | |
NOTE 8. SUBSEQUENT EVENTS | None. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Aug. 31, 2018 | |
Summary Of Significant Accounting Policies Policies | |
Basis of Presentation | The Company’s financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). |
Interim Financial Information | Interim financial statements included herein have been prepared by the Company, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) as promulgated in Item 210 of Regulation S-X. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) have been condensed or omitted pursuant to such SEC rules and regulations. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation of financial position as of August 31, 2018, results of operations, changes in stockholders’ equity (deficit) and cash flows for the six month periods ended August 31, 2018 and 2017, as applicable, have been made. The results for these interim periods are not necessarily indicative of the results for the entire year. The accompanying financial statements should be read in conjunction with the financial statements and the notes thereto included in the Company’s Form 10-K. |
Use of Estimates and Assumptions | The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Management bases its estimates on historical experience and on various assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. The Company’s significant estimates include income tax provisions and valuation allowances of deferred tax assets; the fair value of financial instruments and the assumption that the company will continue as a going concern. Those significant accounting estimates or assumptions bear the risk of change due to the fact that there are uncertainties attached to those estimates or assumptions, and certain estimates or assumptions are difficult to measure or value. |
Recent Accounting Pronouncements | Pronouncements Adopted in Fiscal 2018 In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). |
Net Loss Per Common Share | Basic net loss per share is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the period. Diluted net loss per share is computed by dividing net loss by the weighted average number of shares of common stock and potentially outstanding shares of common stock during each period. |
ORGANIZATION AND OPERATIONS (De
ORGANIZATION AND OPERATIONS (Details Narrative) | 6 Months Ended |
Aug. 31, 2018 | |
Organization And Operations | |
Date of Incorporation | Sep. 29, 2009 |
GOING CONCERN (Details Narrativ
GOING CONCERN (Details Narrative) - USD ($) | Aug. 31, 2018 | Feb. 28, 2018 |
Going Concern Details Narrative | ||
Current assets | $ 13,534 | $ 22,063 |
Current liabilities | 949,814 | 863,795 |
Working capital deficit | (936,280) | |
Accumulated deficit | $ (3,318,811) | $ (3,115,790) |
PREPAID EXPENSE (Details Narrat
PREPAID EXPENSE (Details Narrative) - USD ($) | 6 Months Ended | |
Aug. 31, 2018 | Feb. 28, 2018 | |
Prepaid expense | $ 2,500 | $ 7,500 |
OTC Markets service [Member] | ||
Service period | <font style="font: 10pt Times New Roman, Times, Serif">December 1, 2017 to November 30, 2018</font></p>" id="sjs-B5"><p style="margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">December 1, 2017 to November 30, 2018</font></p> |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) | 6 Months Ended | |
Aug. 31, 2018 | Feb. 28, 2018 | |
Loan payable - related party | $ 22,736 | $ 12,842 |
Accounting service fee, annualy | 20,000 | |
CEO [Member] | ||
Due to related party for inventory purchase | 22,736 | 12,842 |
Ms. Yan Li [Member] | Employment Agreement [Member] | ||
Loan payable - related party | $ 416,660 | $ 390,828 |
ACCRUED OFFICER COMPENSATION _2
ACCRUED OFFICER COMPENSATION AND STOCK COMPENSATION (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Aug. 31, 2018 | Aug. 31, 2017 | Aug. 31, 2018 | Aug. 31, 2017 | Feb. 28, 2018 | |
Accrued salary compensation | $ 510,375 | $ 510,375 | $ 460,125 | ||
Share based compensation | 105,000 | $ 212,625 | |||
President [Member] | |||||
Accrued salary compensation | 510,375 | 510,375 | $ 460,125 | ||
Share based compensation | 105,000 | ||||
President And Former Secretary And Treasurer [Member] | |||||
Share based compensation | $ 52,500 | $ 105,000 | $ 105,000 | $ 210,000 |
STOCKHOLDERS EQUITY (Details Na
STOCKHOLDERS EQUITY (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | |
Aug. 31, 2018 | Aug. 31, 2018 | Aug. 31, 2017 | |
Share based compensation | $ 105,000 | $ 212,625 | |
President [Member] | |||
Shares issued for stock compensation | 50,000 | ||
Share based compensation | $ 105,000 |