Quarterly Report for Quarter Ending May 31, 2025 (Form 10-Q)

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion should be read in conjunction with the financial statements and the notes to those statements included elsewhere in this Quarterly Report on Form 10-Q. This Quarterly Report on Form 10-Q contains certain statements that are forward-looking 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. The 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 "Registrant", "we", "us" or "our") 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 December 16, 2012, the Company changed its name to Jiu Feng Investment Hong Kong, Inc. On January 27, 2013, the Company announced the change of its ticker symbol from "LBYV" to "JFIL." On July 24, 2013, the Company changed its business sector to the medical sector. 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. In the beginning of 2020, the Company ceased the marketing and selling of cosmetic products in the United States.

From the third quarter of the year ended February 29, 2020, the Company began providing technical support services for the development of new nutrition food products to sell to customers in the USA. No significant revenue has been generated from this new business line.

Results of Operations

Revenue

We recognized no sales revenue in the three months ended May 31, 2025 compared to nil sales revenue in the three months ended May 31, 2024.

Operating Expenses

For the three months ended May 31, 2025 compared to the three months ended May 31, 2024

The major components of our operating expenses for the three months ended May 31, 2025 and 2024 are outlined in the table below:

		Three Months Ended				Three Months Ended
		May 31				May 31
		2025				2024
Officer stock compensation		$	-			$	-
Professional fee			15,290				18,391
OTC service expense and others			3,900				3,780
Total operating expenses		$	19,190			$	22,171

The $2,981 decrease in our operating costs for the three months ended May 31, 2025, compared to three months ended May 31, 2024, was mainly due to the decrease in accounting service fee of $3,000.

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Other Expenses

No other expenses incurred during the three-month periods ended May 31, 2025 and 2024.

Net Loss

For the three months ended May 31, 2025, we recognized a net loss of $19,190 compared to the net loss of $22,171 for the corresponding period in 2024.

Liquidity and Capital Resources

Working Capital

		May 31, 2025				February 28, 2025
Current Assets		$	9,025			$	12,925
Current Liabilities			1,384,800				1,369,510
Working Capital Deficit		$	(1,375,775	)		$	(1,356,585	)

As of May 31, 2025, the Company had current assets of $9,025, primarily comprising of cash of $1,225, prepaid expenses of $7,800 and current liabilities of $1,384,800, resulting in a working capital deficit of $1,375,775. The Company had limited profitable operation activities and has an accumulated deficit of $3,864,806 as at May 31, 2025. This raises substantial doubt about the Company's ability to continue as a 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.

Based on the Company's current operating plan, 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 obtain additional financing to operate our business. 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 nutrition product technology support 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.

Cash Flows from Operating Activities

Our net cash used in operating activities increased by $1,781 in the three months ended May 31, 2025 compared to the net cash used in operating activities in the three months ended May 31, 2024. The increase in net cash used in operating activities was primarily the result of a $2,750 decrease in accrued professional fee.

Cash Flows from Investing Activities

We did not generate or use any cash from investing activities during the three months ended May 31, 2025 or 2024.

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Cash Flows from Financing Activities

Our cash provided by financing activities increased from $4,061 for the three months ended May 31, 2024 to $5,872 for the three months ended May 31, 2025. In both periods, cash was provided by the way of loans from related parties.

Future Financings

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

Recent Accounting Pronouncements

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. ASU 2023-09 is intended to improve income tax disclosure requirements by requiring (1) consistent categories and greater disaggregation of information in the rate reconciliation and (2) the disaggregation of income taxes paid by jurisdiction. The guidance makes several other changes to the income tax disclosure requirements. The guidance in ASU 2023-09 will be effective for annual reporting periods in fiscal years beginning after December 15, 2024. The Company is currently evaluating the impact that the adoption of ASU 2023-09 will have on its financial statements and disclosures.

Off Balance Sheet Arrangements

As of May 31, 2025, we did not have any off-balance-sheet arrangements, as defined in Item 303(a)(4)(ii) of Regulation S-K.