JFIL's Losses Mount, Going Concern Doubts Intensify Amid Zero Revenue

TL;DR

**JFIL is a zombie company with zero revenue and mounting losses, avoid at all costs.**

AI Summary

Jubilant Flame International, Ltd. (JFIL) reported no revenue for the three and six months ended August 31, 2025, consistent with the prior year. The company incurred a net loss of $13,312 for the three months ended August 31, 2025, an increase from a net loss of $10,069 in the same period of 2024. For the six months ended August 31, 2025, the net loss was $32,502, slightly up from $32,240 in the corresponding 2024 period. Operating expenses increased by $3,243 to $13,312 for the three-month period, primarily due to a $3,123 rise in professional fees. The company's working capital deficit worsened to $1,389,087 as of August 31, 2025, from $1,356,585 at February 28, 2025, with total current assets of only $5,125 against current liabilities of $1,394,212. JFIL continues to rely on related party loans, with $7,534 provided by financing activities in the latest six-month period, and has an accumulated deficit of $3,878,118, raising substantial doubt about its ability to continue as a going concern.

Why It Matters

JFIL's persistent lack of revenue and increasing net losses, coupled with a significant working capital deficit of $1,389,087, signals severe financial distress. For investors, this indicates a highly speculative investment with substantial risk of capital loss, as the company's ability to fund operations relies entirely on related party loans. Employees face job insecurity given the company's precarious financial state and lack of a viable business model. Customers are unlikely to be impacted as the company generates no significant revenue from its 'nutrition product technology support' business. The broader market impact is minimal due to JFIL's micro-cap status and lack of operational substance, highlighting the challenges faced by shell companies attempting to pivot without adequate funding or market traction.

Risk Assessment

Risk Level: high — The company has reported zero revenue for both the three and six months ended August 31, 2025, and has an accumulated deficit of $3,878,118. Its current assets of $5,125 are dwarfed by current liabilities of $1,394,212, resulting in a working capital deficit of $1,389,087, which raises 'substantial doubt about the Company's ability to continue as a going concern.'

Analyst Insight

Investors should avoid JFIL stock due to its severe financial instability, zero revenue, and explicit 'going concern' warning. The company's reliance on related party loans for survival, coupled with a history of failed business pivots, indicates a high probability of further value erosion or delisting.

Financial Highlights

debt To Equity

N/A

revenue

$0

operating Margin

N/A

total Assets

$5,125

total Debt

$1,394,212

net Income

-$13,312

eps

$0.00

gross Margin

N/A

cash Position

$1,225

revenue Growth

0.0%

Revenue Breakdown

Key Numbers

• $0 — Revenue (for three and six months ended August 31, 2025 and 2024, indicating no operational income)
• $13,312 — Net Loss (for the three months ended August 31, 2025, an increase from $10,069 in 2024)
• $32,502 — Net Loss (for the six months ended August 31, 2025, an increase from $32,240 in 2024)
• $1,389,087 — Working Capital Deficit (as of August 31, 2025, worsening from $1,356,585 at February 28, 2025)
• $5,125 — Total Current Assets (as of August 31, 2025, insufficient to cover liabilities)
• $1,394,212 — Total Current Liabilities (as of August 31, 2025, significantly exceeding assets)
• $3,878,118 — Accumulated Deficit (as of August 31, 2025, indicating significant historical losses)
• $770,958 — Loan Payable - Related Parties (outstanding to CEO Ms. Yan Li as of August 31, 2025, up from $763,424)
• $535,500 — Accrued Officer Compensation (payable to Ms. Yan Li as of August 31, 2025)
• 19,985,708 — Common Shares Outstanding (as of October 24, 2025, unchanged from prior periods)

Key Players & Entities

• Jubilant Flame International, Ltd. (company) — Registrant
• Yan Li (person) — CEO and President
• SEC (regulator) — Securities and Exchange Commission
• OTC Markets (company) — service provider
• Liberty Vision, Inc. (company) — former name of JFIL
• Jiu Feng Investment Hong Kong, Inc. (company) — former name of JFIL
• Acropass Series products (company) — cosmetics products previously marketed by JFIL

FAQ

Risk Factors

• Going Concern Uncertainty [high — financial]: The company has a significant accumulated deficit of $3,878,118 as of August 31, 2025, and a working capital deficit of $1,389,087. With total current assets of only $5,125 against current liabilities of $1,394,212, the company faces substantial doubt about its ability to continue as a going concern.
• Dependence on Related Party Financing [medium — financial]: JFIL relies on loans from related parties, with $770,958 outstanding to CEO Ms. Yan Li as of August 31, 2025. This dependence creates a risk if such financing is withdrawn or terms change unfavorably.
• Lack of Revenue Generation [high — operational]: The company reported $0 revenue for the three and six months ended August 31, 2025, consistent with the prior year. This indicates a persistent inability to generate sales from its current business lines.
• Increasing Operating Expenses [medium — operational]: Operating expenses increased by $3,243 to $13,312 for the three months ended August 31, 2025, primarily driven by a $3,123 rise in professional fees. This trend, without corresponding revenue, exacerbates losses.
• Significant Accrued Officer Compensation [medium — financial]: As of August 31, 2025, there is $535,500 in accrued officer compensation payable to CEO Ms. Yan Li. This represents a substantial liability that needs to be addressed.
• Smaller Reporting Company Status [low — regulatory]: JFIL is a smaller reporting company and is not required to provide detailed risk factor disclosures or market risk disclosures. This may limit transparency for investors regarding potential risks.

Industry Context

Jubilant Flame International, Ltd. operates in the nutrition food product technical support sector. This industry is characterized by innovation and a growing consumer demand for health and wellness products. However, it is also competitive, requiring significant investment in research, development, and marketing to gain traction.

Regulatory Implications

As a smaller reporting company, JFIL is subject to fewer disclosure requirements, which can impact investor understanding of its financial health and risks. The company's financial situation, particularly its going concern issues, may attract scrutiny from regulatory bodies if not addressed.

What Investors Should Do

1. Monitor for any disclosures regarding a plan to address the going concern issue, as the current financial state is unsustainable.
2. Evaluate the company's strategy for generating revenue, as the current lack of sales persists across reporting periods.
3. Assess the terms and potential repayment of related party loans, as they represent a significant financial obligation and potential risk.
4. Understand the drivers behind the increasing professional fees and operating expenses, especially in the absence of revenue.

Key Dates

• 2025-08-31: Balance Sheet Date — Reflects a significant working capital deficit of $1,389,087 and total current assets of $5,125 against current liabilities of $1,394,212.
• 2025-08-31: End of Interim Reporting Period — Company reported $0 revenue and a net loss of $13,312 for the quarter and $32,502 for the six months, with increased operating expenses.
• 2025-02-28: Prior Period Balance Sheet Date — Working capital deficit was $1,356,585, indicating a worsening trend.

Glossary

Accumulated Deficit

The total net losses of a company over its lifetime that have not been offset by net income. (JFIL has a substantial accumulated deficit of $3,878,118, indicating significant historical unprofitability.)

Working Capital Deficit

Occurs when a company's current liabilities exceed its current assets. (JFIL has a significant working capital deficit of $1,389,087, highlighting its short-term liquidity challenges.)

Going Concern

An assumption that a company will continue to operate for the foreseeable future, typically at least 12 months. (The company's financial condition raises substantial doubt about its ability to continue as a going concern.)

Related Party Loans

Loans made between entities that are controlled by the same or common management or ownership. (JFIL relies heavily on related party loans, with $770,958 outstanding to the CEO, indicating a dependence on internal financing.)

Accrued Officer Compensation

Compensation earned by officers but not yet paid. (JFIL has $535,500 in accrued officer compensation payable to its CEO, representing a significant liability.)

Year-Over-Year Comparison

Compared to the prior year's comparable periods, Jubilant Flame International, Ltd. has maintained zero revenue, indicating no progress in sales generation. The net loss has slightly increased for both the three-month period (from $10,069 to $13,312) and the six-month period (from $32,240 to $32,502). Operating expenses have risen, particularly professional fees, exacerbating the financial strain. The working capital deficit has also widened, signaling a deteriorating liquidity position.

Key Financial Figures

• $100,500 — an Li shall receive an annual salary of $100,500 and 100,000 shares of the Company's com
• $3,243 — ing expenses $ 13,312 $ 10,069 The $3,243 increase in our operating costs for the
• $3,123 — 2024, was mainly due to an increase of $3,123 in professional fee. For the six mont
• $262 — ing expenses $ 32,502 $ 32,240 The $262 increase in our operating costs for the
• $13,312 — t 31, 2025, we recognized a net loss of $13,312 compared to the net loss of $10,069 for
• $10,069 — of $13,312 compared to the net loss of $10,069 for the corresponding period in 2024.
• $32,502 — t 31, 2025, we recognized a net loss of $32,502 compared to the net loss of $32,240 for
• $32,240 — of $32,502 compared to the net loss of $32,240 for the corresponding period in 2024.
• $5,125 — 2025, the Company had current assets of $5,125, primarily comprising cash of $1,225, p
• $1,225 — of $5,125, primarily comprising cash of $1,225, prepaid expenses of $3,900 and current
• $3,900 — ing cash of $1,225, prepaid expenses of $3,900 and current liabilities of $1,394,212,
• $1,394,212 — es of $3,900 and current liabilities of $1,394,212, resulting in a working capital deficit
• $1,389,087 — sulting in a working capital deficit of $1,389,087. The Company had limited profitable ope
• $3,878,118 — ities and has an accumulated deficit of $3,878,118 as of August 31, 2025. This raises subs
• $20,321 — ed in operating activities decreased by $20,321 in the six months ended August 31, 2025

Filing Documents

• jfil_10q.htm (10-Q) — 307KB
• jfil_ex311.htm (EX-31.1) — 10KB
• jfil_ex312.htm (EX-31.2) — 10KB
• jfil_ex321.htm (EX-32.1) — 4KB
• jfil_ex322.htm (EX-32.2) — 4KB
• 0001477932-25-007733.txt ( ) — 1350KB
• jfil-20250831.xsd (EX-101.SCH) — 15KB
• jfil-20250831_lab.xml (EX-101.LAB) — 91KB
• jfil-20250831_cal.xml (EX-101.CAL) — 19KB
• jfil-20250831_pre.xml (EX-101.PRE) — 69KB
• jfil-20250831_def.xml (EX-101.DEF) — 24KB
• jfil_10q_htm.xml (XML) — 75KB

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION Item 1.

Financial Statements

Financial Statements F-1 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 3 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 5 Item 4.

Controls and Procedures

Controls and Procedures 5

– OTHER INFORMATION

PART II – OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 6 Item 1A.

Risk Factors

Risk Factors 6 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 6 Item 3. Defaults Upon Senior Securities 6 Item 4. Mine Safety Disclosures 6 Item 5. Other Information 6 Item 6. Exhibits 7

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS JUBILANT FLAME INTERNATIONAL, LTD. FOR THE SIX-MONTH PERIODS ENDED AUGUST 31, 2025 Index to Unaudited Financial Statements Contents Page Balance Sheets August 31, 2025 and February 28, 2025 (Unaudited) F-2 F-3 F-4 F-5 Notes to the Financial Statements (Unaudited) F-6 F-1 Table of contents JUBILANT FLAME INTERNATIONAL, LTD BALANCE SHEETS (UNAUDITED) August 31, February 28, 2025 2025 ASSETS Current assets Cash and cash equivalents $ 1,225 $ 1,225 Prepaid expenses 3,900 11,700 Total current assets 5,125 12,925 Total Assets $ 5,125 $ 12,925 LIABILITIES & STOCKHOLDERS' DEFICIT Current liabilities Accounts payable – related parties $ 47,643 $ 47,643 Accrued expense 40,111 22,943 Accrued officer compensation 535,500 535,500 Loan payable - related parties 770,958 763,424 Total current liabilities 1,394,212 1,369,510 Total Liabilities 1,394,212 1,369,510 Commitment and Contingencies Stockholders' Deficit Common stock, $ 0.001 par value per share 75,000,000 shares authorized; 19,985,708 and 19,985,708 shares issued and outstanding, respectively 19,986 19,986 Additional paid in capital 2,469,045 2,469,045 Accumulated deficit ( 3,878,118 ) ( 3,845,616 ) Total Stockholders' Deficit ( 1,389,087 ) ( 1,356,585 ) Total Liabilities and Stockholders' Deficit $ 5,125 $ 12,925 The accompanying notes are an integral part of these financial statements. F-2 Table of contents JUBILANT FLAME INTERNATIONAL, LTD (UNAUDITED) For the three months ended For the six months ended

NOTES TO FINANCIAL STATEMENTS

NOTES TO FINANCIAL STATEMENTS (UNAUDITED) 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 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 until January 2020 when it ceased this business. From the third quarter of the year ended February 29, 2020, the Company began its new business line of providing technical support services for the development of new nutrition food products to sell to customers in the USA. The Company had not generated significant revenue from this new business by the second quarter ended August 31, 2025. 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 n

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

ITEM 2. 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

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK. We are a smaller reporting company as defined by Rule 12b-2 of the Exchange Act and are not required to provide the information required under this item.

CONTROLS AND PROCEDURES

ITEM 4. CONTROLS AND PROCEDURES. Evaluation of Disclosure Controls and Procedures Under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, we have conducted an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) under the Securities and Exchange Act of 1934, as of the end of the period covered by this report. Based on this evaluation, our principal executive officer and principal financial officer concluded as of the evaluation date that our disclosure controls and procedures were not effective. We are presently examining changes to our procedures and policies to ensure a more timing reporting. 5 Table of Contents

– OTHER INFORMATION

PART II – OTHER INFORMATION

LEGAL PROCEEDINGS

ITEM 1. LEGAL PROCEEDINGS. We were not subject to any legal proceedings during the six months ended August 31, 2025, and currently we are not involved in any pending litigation or legal proceedings.

RISK FACTORS

ITEM 1A. RISK FACTORS. We are a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and are not required to provide the information under this item.

UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS. None.

DEFAULTS UPON SENIOR SECURITIES

ITEM 3. DEFAULTS UPON SENIOR SECURITIES. None.

MINE SAFETY DISCLOSURES

ITEM 4. MINE SAFETY DISCLOSURES. Not applicable.

OTHER INFORMATION

ITEM 5. OTHER INFORMATION. Not applicable. 6 Table of Contents

EXHIBITS

ITEM 6. EXHIBITS The following documents are filed as a part of this report: EXHIBIT NUMBER DESCRIPTION 31.1 Certification of the President and Chief Executive Officer pursuant to Rules 13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 31.2 Certification of the Chief Financial Officer pursuant to Rules 13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 32.1 Certification of the President and Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 32.2 Certification of the Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 101.INS ** Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document). 101.SCH ** Inline XBRL Taxonomy Extension Schema Document. 101.CAL ** Inline XBRL Taxonomy Extension Calculation Linkbase Document. 101.DEF ** Inline XBRL Taxonomy Extension Definition Linkbase Document. 101.LAB ** Inline XBRL Taxonomy Extension Labels Linkbase Document. 101.PRE ** Inline XBRL Taxonomy Extension Presentation Linkbase Document. 104** Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101). ________ ** XBRL (Extensible Business Reporting Language) information is furnished and not filed or a part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, is deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise is not subject to liability under these sections. 7 Table of Contents

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. JUBILANT FLAME INTERNATIONAL LTD Date: October 24, 2025 By: /s/ Yan Li Yan Li President, Chief Executive Officer (Principal Executive Officer) and Director Date: October 24, 2025 By: /s/ Lei Wang Lei Wang (Chief Financial Officer) and Director 8

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