Jubilant Flame International, Ltd. reported its financial results for the three and six months ended August 31, 2024, revealing a continued challenging financial landscape. The company has not recognized any sales revenue during these periods, consistent with the previous year.
As of August 31, 2024, the company’s total current assets were $5,035, a significant decrease from $12,595 as of February 29, 2024. Cash and cash equivalents stood at $1,285, down from $1,345 in the prior period. Current liabilities increased slightly to $1,334,188 from $1,309,508, resulting in a working capital deficit of $1,329,153. The accumulated deficit reached $3,818,184, raising substantial doubt about the company's ability to continue as a going concern.
Operating expenses for the three months ended August 31, 2024, were $10,069, a decrease from $12,943 in the same period of 2023. For the six months, operating expenses decreased to $32,240 from $36,787 year-over-year. The reduction in expenses was primarily attributed to a decrease in professional fees, which fell by $3,099 for the three months and $4,997 for the six months.
The net loss for the three months ended August 31, 2024, was $10,069, an improvement compared to a net loss of $12,943 for the same period in 2023. For the six months, the net loss was $32,240, down from $36,787 in the prior year. The net cash used in operating activities also decreased to $27,855 from $41,287, largely due to a reduction in accrued professional fees.
The company is actively exploring options to raise additional capital through equity securities, debt securities, or borrowings to support its operations in the nutrition product technology sector. As of August 31, 2024, the company had a loan outstanding with its CEO, Ms. Yan Li, totaling $721,520, an increase from $693,725 at the end of February 2024.
Management has acknowledged that the company does not have sufficient cash to fund operations for the next twelve months and is seeking ways to improve its financial position. Additionally, the company reported that its disclosure controls and procedures were evaluated and deemed ineffective, prompting management to consider changes to enhance reporting.
About Jubilant Flame International, Ltd
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