Quarterly Report for Quarter Ending August 31, 2026 (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 development of new nutrition food products to sell to customers in USA. However, this new business line remained pre-revenue throughout the quarter ended at August 31, 2026 that revenue recognition was Nil for the second quarter ended at August 31, 2026.

Results of Operations

Revenue

We recognized no sales revenue in the three and six months ended August 31, 2026 compared to nil sales revenue in the three and six months ended August 31, 2025.

Operating Expenses

For the three months ended August 31, 2026 compared to the three months ended August 31, 2025

The major components of our operating expenses for the three months ended August 31, 2026 and 2025 are outlined in the table below:

The $1,965 increase in our operating costs for the three months ended August 31, 2026 compared to three months ended August 31, 2025, was mainly due to an increase of $1,805 in professional fee.

For the six months ended August 31, 2026 compared to the six months ended August 31, 2025

The major components of our operating expenses for the six months ended August 31, 2026 and 2025 are outlined in the table below:

The $12,506 increase in our operating costs for the six months ended August 31, 2026 compared to six months ended August 31, 2025, was mainly due to an increase of $12,201 in professional fees.

Other Expenses

No other expenses incurred during the three and six-month periods ended August 31, 2026 and 2025.

Net loss

For the three months ended August 31, 2026, we recognized a net loss of $15,277 compared to the net loss of $13,312 for the corresponding period in 2025.

For the six months ended August 31, 2026, we recognized a net loss of $45,008 compared to the net loss of $32,502 for the corresponding period in 2025.

Liquidity and Capital Resources

Working Capital

As of August 31, 2026, the Company had current assets of $5,665, primarily comprising cash of $1,660, prepaid expenses of $4,005 and current liabilities of $1,470,765, resulting in a working capital deficit of $1,465,100. The Company had limited profitable operation activities and has an accumulated deficit of $3,954,131 as of August 31, 2026. 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 $24,962 in the six months ended August 31, 2026 compared to the net cash used in operating activities in the six months ending August 31, 2025. The increase in net cash used in operating activities was primarily due to $12,506 increase in net loss and a lower net increase in accounts payable and accrued liabilities.

Cash Flows from Investing Activities

We did not generate or use any cash from investing activities during the six months ended August 31, 2026 or 2025.

Cash Flows from Financing Activities

Our cash provided by financing activities increased from $7,534 for the six months ended August 31, 2025 compared to $29,981 for the six months ended August 31, 2026. In both periods, cash was generated through loans from related parties.

Future Financing

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 November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which requires disclosure of significant segment expenses regularly provided to the chief operating decision maker ("CODM"), the title and position of the CODM, and how the CODM uses reported measures of segment profit or loss in assessing segment performance and resource allocation. The Company adopted this standard effective March 1, 2024 on a retrospective basis. The Company operates as a single operating segment, and the adoption did not have a material impact on the Company's financial statements and disclosures.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires public entities, on an annual basis, to provide disclosure of specific categories in the rate reconciliation, as well as disclosure of income taxes paid disaggregated by jurisdiction. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The Company adopted ASU 2023-09 effective March 1, 2025, and applied the new disclosure requirements prospectively to the current annual period of adoption. The adoption did not have a material impact on the Company's financial statements and disclosures.

On November 4, 2024, the FASB issued an ASU No. 2024-03, Disaggregation of Income Statement Expenses ("ASU 2024 03") to improve the disclosures about a public business entity's expenses and address requests from investors for more detailed information about the types of expenses in commonly presented expense captions (such as cost of sales; selling, general, and administrative expenses; and research and development). These required categories include purchases of inventory, employee compensation, depreciation, and intangible asset amortization, as well as other relevant items included within each applicable expense caption, as applicable. The FASB issued ASU 2024-03 on November 4, 2024, which states that the amendments are effective for public business entities for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027.

The Company has adopted all applicable new accounting pronouncements that are in effect as of the date of the issuance of these financial statements. The Company's management does not believe that any other recently issued, but not yet effective, authoritative guidance, if currently adopted, would have a material impact on the Company's financial statement and disclosure.

Off Balance Sheet Arrangements

As of August 31, 2026, we did not have any off-balance-sheet arrangements, as defined in Item 303(a)(4)(ii) of Regulation S-K.