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. 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. From the third quarter of the fiscal year ended February 28, 2020, the company started to provide technical service to third party companies to develop nutrition beverage series products to sell in the USA market. Currently the nutrition beverage series include SEA-BUCKTHORN and Organic Sprouting Powder.

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.





Results of Operations



Revenue

We recognized $20,434 sales revenue in the three months and $36,949 in nine months ended November 30, 2019 compared to $24,099 sales revenue in the three months and $38,190 sales revenue in the nine months ended November 30, 2018.





Operating Expenses

For the three months ended November 30, 2019 compared to the three months ended November 30, 2018






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The major components of our operating expenses for the three months ended November 30, 2019 and 2018 are outlined in the table below:





                            Three Months       Three Months
                               Ended              Ended
                            November 30,       November 30,
                                2019               2018

Officer compensation       $        4,500     $       77,625
Selling expense            $        4,753     $       10,898
Professional fee           $       12,325     $       10,367
OTC Filing fees            $        3,000     $        2,500
Office expense             $        1,087     $           69
Total operating expenses   $       25,665     $      101,459

The $75,794 decrease in our operating costs for the three months ended November 30, 2019 compared to three months ended November 30, 2018, was mainly due to a decrease of $73,125 in officer salary compensation as a result of waiving of officer salary since January, 2019, and reduction in stock compensation to officers.

For the nine months ended November 30, 2019 compared to the nine months ended November 30, 2018

The major components of our operating expenses for the nine months ended November 30, 2019 and 2018 are outlined in the table below:





                            Nine Months       Nine Months
                               Ended             Ended
                           November 30,      November 30,
                               2019              2019

Officer compensation       $      13,500     $     232,875
Selling expense            $      11,414     $      24,395
Transfer agent             $       5,000     $       5,000
Edgar filing fees          $       2,184     $       2,184
Accounting & Audit fees    $      32,850     $      31,500
OTC Filing fees            $       9,000     $       7,500
Office expense             $       2,278     $       1,418
Web Amortization expense   $           -     $       3,473
Legal fees                 $       1,548     $       2,739
Total operating expenses   $      77,774     $     311,084

The $233,310 decrease in our operating costs for the nine months ended November 30, 2019 compared to nine months ended November 30, 2018, was mainly due to a decrease of $219,375 in officer salary compensation as a result of waiving of officer salary since January, 2019, and reduction in stock compensation to officers, and a decrease of $12,981 in selling expense due to new product campaign and promotion activity reduction.





Other Expenses

No other expense during the period of three months and nine months ended November 30, 2019 and 2018.





Net Loss

For the three months ended November 30, 2019, we recognized a net loss of $10,440 compared to the net loss of $94,215 for the corresponding period in 2018.

For the nine months ended November 30, 2019, we recognized a net loss of $53,585 compared to the net loss of $297,236 for the corresponding period in 2018.

Liquidity and Capital Resources





Working Capital



                          November 30,       February 28,
                              2019               2019
Current Assets            $      32,320     $       28,687

Current Liabilities $ 1,067,012 $ 1,023,295 Working Capital Deficit $ (1,034,692 ) $ (994,608 )

As of November 30, 2019, the Company had current assets of $32,320, primarily comprising of cash of $7,124, inventory of $25 and prepaid expense of $12,000, and current liabilities of $1,067,012, resulting in a working capital deficit of $1,034,692. The Company had limited profitable trading activities and has an accumulated deficit of $3,485,474 as at November 30, 2019. 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 cosmetic 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.






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Cash Flows from Operating Activities

Our net cash used in operating activities decreased by $4,718 in the nine months ended November 30, 2019 compared to the net cash used in operating activities in the nine months ended November 30, 2018, representing a decrease of 11.9%. The decrease in net cash used in operating activities was primarily the result of a $12,981 decrease in selling expense .

Cash Flows from Investing Activities

We did not generate or use any cash from investing activities during the nine months ended November 30, 2019 or 2018.

Cash Flows from Financing Activities

Our cash provided by financing activities decreased from $47,321 for the nine months ended November 30, 2018 to $29,766 for the nine months ended November 30, 2019. In both periods, cash was provided by 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

Pronouncements Adopted in Fiscal 2018

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). This ASU represents a single comprehensive model to recognize revenue to depict the transfer of promised goods or services to a customer at an amount that reflects the consideration it expects to be entitled to in exchange for those goods or services. The Company adopts this ASU for the interim period ending May 31, 2018, under the modified retrospective approach. The implementation of this ASU resulted in no adjustment to retained earnings and current financial statements.

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). Under this guidance, lessees will be required to recognize on the balance sheet a lease liability and a right-of-use asset for all leases, with the exception of short-term leases. The lease liability represents the lessee's obligation to make lease payments arising from a lease, and will be measured as the present value of the lease payments. The right-of-use asset represents the lessee's right to use a specified asset for the lease term, and will be measured at the lease liability amount, adjusted for lease prepayment, lease incentives received and the lessee's initial direct costs. The standard also requires a lessee to recognize a single lease cost allocated over the lease term, generally on a straight-line basis. The new guidance is effective for fiscal years beginning after December 15, 2018. ASU 2016-02 is required to be applied using the modified retrospective approach for all leases existing as of the effective date and provides for certain practical expedients. Early adoption is permitted. The Company adopts this ASU on January 1, 2019. There is no effects that the adoption of ASU 2016-02 will have on the Company's financial statements.






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Off Balance Sheet Arrangements

As of November 30, 2019, we did not have any off-balance-sheet arrangements, as defined in Item 303(a)(4)(ii) of Regulation S-K.

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