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 year ended February 29, 2020, the company began providing technical support services for development of new nutrition food products to sell to customers in USA.

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 technical support service,





Results of Operations



Revenue

We recognized zero sales revenue in the three months and in nine months ended November 30, 2020 respectively compared to $20,434 sales revenue in the three months and $36,949 sales revenue in the nine months ended November 30, 2019.





Operating Expenses

For the three months ended November 30, 2020 compared to the three months ended November 30, 2019






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The major components of our operating expenses for the three months ended November 30, 2020 and 2019 are outlined in the table below:





                            Three Months Ended       Three Months Ended
                            November 30, 2020        November 30, 2019

Officer compensation       $              4,500     $              4,500
Selling expense                               -                    4,753
Professional fee                         14,371                   12,325
OTC Filing fees                           3,000                    3,000
Office expense                            1,114                    1,087
Total operating expenses   $             22,985     $             25,655

The $2,680 decrease in our operating costs for the three months ended November 30, 2020 compared to three months ended November 30, 2019, was mainly due to a decrease of $4,753 in selling expense due to promotion activity reduction offset with $2,046 increase in professional fee.

For the nine months ended November 30, 2020 compared to the nine months ended November 30, 2019

The major components of our operating expenses for the nine months ended November 30, 2020 and 2019 are outlined in the table below:





                                 Nine Months Ended       Nine Months Ended
                                   Nov 30, 2020            Nov 30, 2019
Officer compensation            $            13,500     $            13,500
Transfer agent                                5,135                   5,000
Edgar filing fees                             2,712                   2,184
OTC service fees                              9,000                   9,000
Office expense                                1,204                   2,278
Legal fees                                    3,888                   1,548
Accounting fees                              30,500                  32,850
Selling and Marketing expense                    18                  11,414
Total operating expenses        $            65,957     $            77,774

The $11,817 decrease in our operating costs for the nine months ended November 30, 2020 compared to nine months ended November 30, 2019, was mainly due to a decrease of $11,396 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, 2020 and 2019.






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Net Loss

For the three months ended November 30, 2020, we recognized a net loss of $22,985 compared to the net loss of $10,440 for the corresponding period in 2019.

For the nine months ended November 30, 2020, we recognized a net loss of $65,957 compared to the net loss of $53,585 for the corresponding period in 2019.

Liquidity and Capital Resources





Working Capital



                          November 30,      February 29,
                              2020              2020
Current Assets            $      28,798     $      29,030

Current Liabilities $ 1,134,010 $ 1,081,786 Working Capital Deficit $ (1,105,212 ) $ (1,052,756 )

As of November 30, 2020, the Company had current assets of $28,798, primarily comprising of cash of $7,414, Account receivable of $9,384 and prepaid expense of $12,000, and current liabilities of $1,134,010, resulting in a working capital deficit of $1,105,212. The Company had limited profitable trading activities and has an accumulated deficit of $3,573,994 as of November 30, 2020. 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 and global coronavirus pandemic impact, 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.






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Cash Flows from Operating Activities

Our net cash used in operating activities increased by $22,285 in the nine months ended November 30, 2020 compared to the net cash used in operating activities in the nine months ended November 30, 2019, representing an increase of 64%. The increase in net cash used in operating activities was primarily the result of a $36,949 decrease in sale.

Cash Flows from Investing Activities

We did not generate or use any cash from investing activities during the nine months ended November 30, 2020 or 2019.

Cash Flows from Financing Activities

Our cash provided by financing activities increased from $29,766 for the nine months ended November 30, 2019 to $53,828 for the nine months ended November 30, 2020. 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

In December 2019, the Financial Accounting Standards Board (FASB) issued Accounting Standard Update No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (ASU 2019-12), which simplifies the accounting for income taxes. This guidance will be effective for entities for the fiscal years beginning after 15 December 2021, and interim periods within those fiscal years, beginning after December 15, 2022 on a prospective basis, with early adoption permitted. We will adopt the new standard effective March 1, 2021 and do not expect the adoption of this guidance to have a material impact on our consolidated financial statements.

In January 2020, the FASB issued Accounting Standards Update No. 2020-01, Investments-Equity Securities (Topic 321), Investments-Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815) (ASU 2020-01), which clarifies the interaction of the accounting for equity securities under Topic 321, the accounting for equity method investments in Topic 323, and the accounting for certain forward contracts and purchased options in Topic 815. This guidance will be effective for entities for the fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020 on a prospective basis, with early adoption permitted. We are currently evaluating the impact of the new guidance.

Off Balance Sheet Arrangements

As of November 30, 2020, 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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