Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Aug. 31, 2019 | Oct. 02, 2019 | |
Document And Entity Information | ||
Entity Registrant Name | Jubilant Flame International, Ltd | |
Entity Central Index Key | 0001517389 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Current Fiscal Year End Date | --02-28 | |
Entity Small Business | true | |
Entity Shell Company | false | |
Entity Emerging Growth Company | false | |
Entity Current Reporting Status | Yes | |
Document Period End Date | Aug. 31, 2019 | |
Entity Filer Category | Non-accelerated Filer | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2020 | |
Entity Common Stock Shares Outstanding | 18,798,208 |
Balance Sheets
Balance Sheets - USD ($) | Aug. 31, 2019 | Feb. 28, 2019 |
Current assets | ||
Cash | $ 2,401 | $ 12,115 |
Accounts receivable | 1,513 | 279 |
Inventory | 4,924 | 7,293 |
Prepaid expenses | 3,000 | 9,000 |
Total current assets | 11,838 | 28,687 |
Total Assets | 11,838 | 28,687 |
Current liabilities | ||
Accounts payable and accrued liabilities | 153 | 42,011 |
Due to related party | 52,044 | 2,178 |
Accrued officer compensation | 535,500 | 535,500 |
Loan payable - related parties | 452,893 | 443,606 |
Total current liabilities | 1,040,590 | 1,023,295 |
Total Liabilities | 1,040,590 | 1,023,295 |
Stockholders' Deficit | ||
Common stock, $0.001 par value per share 75,000,000 shares authorized; 18,798,208 and 18,548,208 shares issued and outstanding, respectively | 18,799 | 18,548 |
Additional paid in capital | 2,427,482 | 2,418,733 |
Accumulated deficit | (3,475,033) | (3,431,889) |
Total Stockholders' Deficit | (1,028,752) | (994,608) |
Total Liabilities and Stockholders' Deficit | $ 11,838 | $ 28,687 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - $ / shares | Aug. 31, 2019 | Feb. 28, 2019 |
Stockholders' Deficit | ||
Common stock, shares par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 75,000,000 | 75,000,000 |
Common stock, shares issued | 18,798,208 | 18,548,208 |
Common stock, shares outstanding | 18,798,208 | 18,548,208 |
Statements of Operations (Unaud
Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2019 | Aug. 31, 2018 | |
Statements of Operations (Unaudited) | ||||
Sales of goods | $ 10,185 | $ 5,849 | $ 16,515 | $ 14,091 |
Total revenue | 10,185 | 5,849 | 16,515 | 14,091 |
Costs and Operating Expenses: | ||||
Cost of goods sold | 4,832 | 3,926 | 7,551 | 7,486 |
Operating, selling, general and administrative | 22,755 | 95,309 | 52,108 | 209,626 |
Total operating expenses | 27,587 | 99,235 | 59,659 | 217,112 |
Income(loss) from operations | (17,402) | (93,386) | (43,144) | (203,021) |
Other income (expense): | ||||
Other income( expense), net | ||||
Income (loss) before provision for income taxes | (17,402) | (93,386) | (43,144) | (203,021) |
Net income (loss) | $ (17,402) | $ (93,386) | $ (43,144) | $ (203,021) |
Net loss per share | ||||
(Basic and fully diluted) | $ 0 | $ (0.01) | $ 0 | $ (0.01) |
Weighted average number of common shares outstanding | 18,674,567 | 18,435,980 | 18,612,067 | 18,423,480 |
Statements of Changes in Stockh
Statements of Changes in Stockholders' Deficit (Unaudited) - USD ($) | Total | Common Stock | Additional paid in capital | Accumulated deficit |
Beginning Balances, shares at Feb. 28, 2018 | 18,410,708 | |||
Beginning Balances, amount at Feb. 28, 2018 | $ (838,259) | $ 18,411 | $ 2,259,120 | $ (3,115,790) |
Shares issued for stock compensation, shares | 25,000 | |||
Net loss for the period | (109,635) | (109,635) | ||
Shares issued for stock compensation, amount | 52,500 | $ 25 | 52,475 | |
Ending Balances, shares at May. 31, 2018 | 18,435,708 | |||
Ending Balances, amount at May. 31, 2018 | (895,394) | $ 18,436 | 2,311,595 | (3,225,425) |
Shares issued for stock compensation, shares | 25,000 | |||
Net loss for the period | (93,386) | (93,386) | ||
Shares issued for stock compensation, amount | 52,500 | $ 25 | 52,475 | |
Ending Balances, shares at Aug. 31, 2018 | 18,460,708 | |||
Ending Balances, amount at Aug. 31, 2018 | (936,280) | $ 18,461 | 2,364,070 | (3,318,811) |
Beginning Balances, shares at Feb. 28, 2019 | 18,548,208 | |||
Beginning Balances, amount at Feb. 28, 2019 | (994,608) | $ 18,549 | 2,418,733 | (3,431,889) |
Shares issued for stock compensation, shares | 125,000 | |||
Net loss for the period | (25,742) | (25,742) | ||
Shares issued for stock compensation, amount | 4,500 | $ 125 | 4,375 | |
Ending Balances, shares at May. 31, 2019 | 18,673,208 | |||
Ending Balances, amount at May. 31, 2019 | (1,015,850) | $ 18,674 | 2,423,108 | (3,457,631) |
Shares issued for stock compensation, shares | 125,000 | |||
Net loss for the period | (17,402) | (17,402) | ||
Shares issued for stock compensation, amount | 4,500 | $ 125 | 4,375 | |
Ending Balances, shares at Aug. 31, 2019 | 18,798,208 | |||
Ending Balances, amount at Aug. 31, 2019 | $ (1,028,752) | $ 18,799 | $ 2,427,483 | $ (3,475,033) |
Statements of Cash Flows (Unaud
Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Aug. 31, 2019 | Aug. 31, 2018 | |
Cash Flows from Operating Activities | ||
Net loss | $ (43,144) | $ (203,021) |
Adjustments to reconcile net (loss) to net cash (used in) operating activities | ||
Website amortization | 3,473 | |
Share based compensation | 9,000 | 105,000 |
Changes in Current Assets and Liabilities: | ||
Account receivable | (1,234) | 474 |
Inventory | 2,369 | (1,531) |
Prepaid expense | 6,000 | 5,000 |
Accounts payable | 49,866 | 9,894 |
Due to related party | (41,858) | 43 |
Accrued officer?s compensation | 50,250 | |
Net cash used in operating activities | (19,001) | (30,418) |
Cash Flows from Financing Activities: | ||
Net proceeds from related party loans | 9,287 | 25,832 |
Net cash provided by financing activities | 9,287 | 25,832 |
Net (Decrease) In Cash | (9,714) | (4,586) |
Cash at The Beginning Of The Period | 12,115 | 8,036 |
Cash at The End Of The Period | $ 2,401 | $ 3,450 |
ORGANIZATION AND OPERATIONS
ORGANIZATION AND OPERATIONS | 6 Months Ended |
Aug. 31, 2019 | |
ORGANIZATION AND OPERATIONS | |
NOTE 1 - ORGANIZATION AND OPERATIONS | Jubilant Flame International, Ltd. (the “Company”), was formed on September 29, 2009 under the name Liberty Vision, Inc. The Company provided web development and marketing services for clients. On December 5, 2012 the Company disposed of its subsidiary corporation to a shareholder for a nominal sum, as well as other management operations. 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. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Aug. 31, 2019 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
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, 2019, results of operations, changes in stockholders’ equity (deficit) and cash flows for the three month periods ended August 31, 2019 and 2018, 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, 2019 | |
GOING CONCERN | |
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, 2019 the Company had current assets of $11,838, and current liabilities total $1,040,590 resulting in a working capital deficit of $1,028,752. The Company currently has small scale trading activities and has an accumulated deficit of $3,475,033 as of August 31, 2019. 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, 2019 | |
PREPAID EXPENSE | |
NOTE 4 - PREPAID EXPENSE | The Company is paying an annual fee for its OTC Markets service. The service period is from December 1, 2018 to November 30, 2019. The service charge is recorded as a prepaid expense and amortized using straight line amortization over the service period. The prepaid expense balance is $3,000 as of August 31, 2019 compared to $9,000 as of February 28, 2019. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 6 Months Ended |
Aug. 31, 2019 | |
RELATED PARTY TRANSACTIONS | |
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, 2019, the Company had a $452,893 loan outstanding with its CEO, Ms. Yan Li. This compares with the outstanding balance of $443,606 for Ms. Yan Li at February 28, 2019. 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 $23,000. 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, 2019, the Company incurred a total of $52,044 due to related party for inventory purchase and accrued service fee. This compares with a total of $44,112 due to related party for inventory purchase and accrued service fee at February 28, 2019. |
ACCRUED OFFICER COMPENSATION AN
ACCRUED OFFICER COMPENSATION AND STOCK COMPENSATION | 6 Months Ended |
Aug. 31, 2019 | |
ACCRUED OFFICER COMPENSATION AND STOCK COMPENSATION | |
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 former secretary and treasurer, Mr. Robert Ireland. Both agreements were retroactively effective as of December 4, 2015, for a term of 36 months (measured from December 4, 2015). On August 30, 2017, Mr. Robert Ireland resigned as Secretary/Treasurer of the company. On January 15, 2019, the board of the company approved new compensation to its five officers including two new appointed directors. The five directors waived their salary and receives total 500,000 shares each year for a term of three years. As of August 31, 2019, a total of $535,500 had been accrued as salary compensation payable compared to $535,500 at February 28, 2019 to the president only. During the three months ended August 31, 2019, a total of $4,500 stock compensation had been recorded to the five senior officers compared to $52,500 for the same period in the prior year to the president. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 6 Months Ended |
Aug. 31, 2019 | |
STOCKHOLDERS' EQUITY | |
NOTE 7 - STOCKHOLDERS' EQUITY | For the six months ended August 31, 2019, a total of 250,000 Shares were issued to the president and other four senior officers as stock compensation. Total value of $9,000 has been recorded for the stock compensation. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Aug. 31, 2019 | |
SUBSEQUENT EVENTS | |
NOTE 8 - SUBSEQUENT EVENTS | None. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Aug. 31, 2019 | |
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, 2019, results of operations, changes in stockholders’ equity (deficit) and cash flows for the three month periods ended August 31, 2019 and 2018, 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, 2019 | |
ORGANIZATION AND OPERATIONS | |
Date of Incorporation | Sep. 29, 2009 |
GOING CONCERN (Details Narrativ
GOING CONCERN (Details Narrative) - USD ($) | Aug. 31, 2019 | May 31, 2019 | Feb. 28, 2019 | Aug. 31, 2018 | May 31, 2018 | Feb. 28, 2018 |
GOING CONCERN (Details Narrative) | ||||||
Current assets | $ 11,838 | $ 28,687 | ||||
Current liabilities | 1,040,590 | 1,023,295 | ||||
Working capital deficit | (1,028,752) | $ (1,015,850) | (994,608) | $ (936,280) | $ (895,394) | $ (838,259) |
Accumulated deficit | $ (3,475,033) | $ (3,431,889) |
PREPAID EXPENSE (Details Narrat
PREPAID EXPENSE (Details Narrative) - USD ($) | Aug. 31, 2019 | Feb. 28, 2019 |
PREPAID EXPENSE (Details Narrative) | ||
Prepaid expenses | $ 3,000 | $ 9,000 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) | 6 Months Ended | 12 Months Ended |
Aug. 31, 2019 | Feb. 28, 2019 | |
Accounting service fee | $ 23,000 | |
CEO [Member] | ||
Purchase of inventory from related party | 52,044 | 44,112 |
Ms. Yan Li [Member] | ||
Loan payable - related party | $ 452,893 | $ 443,606 |
ACCRUED OFFICER COMPENSATION (D
ACCRUED OFFICER COMPENSATION (Details Narrative) - USD ($) | Jan. 15, 2019 | Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2019 | Aug. 31, 2018 | Feb. 28, 2019 |
Share based compensation | $ 9,000 | $ 105,000 | ||||
Employment Agreement [Member] | President [Member] | December 4, 2015 [Member] | ||||||
Term of agreement | 36 months | |||||
Officers [Member] | ||||||
Accrued compensation | $ 535,500 | $ 535,500 | $ 535,500 | |||
Share based compensation | ||||||
5 Directors [Member] | ||||||
Term of agreement | 3 years | |||||
Shares issuable each year as compensations to related party | 500,000 | |||||
Five Officers [Member] | ||||||
Share based compensation | $ 4,500 | $ 52,500 |
STOCKHOLDERS EQUITY (Details Na
STOCKHOLDERS EQUITY (Details Narrative) - USD ($) | 6 Months Ended | |
Aug. 31, 2019 | Aug. 31, 2018 | |
Share based compensation | $ 9,000 | $ 105,000 |
Five Officers [Member] | ||
Share based compensation | $ 9,000 | |
Shares issued for stock compensation, shares | 250,000 |