Replies to post #225 on Jubilant Flame International Ltd. JFIL (JFIL)

[RodDobson]

10Q may 2017 "The Company had no profitable trading activities and has an accumulated deficit of $2,710,343 as at May 31, 2017. This raises substantial doubt about the Company's ability to continue as a going concern."
https://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=12171994
Results of Operations

Revenue

We recognized no revenue in the three months ended May 31, 2017 and 2016 as we have not commenced operations as yet.


3

Table of Contents

Operating Expenses

For the three months ended May 31,2017 compared to the three months ended May 31,2016

The major components of our operating expenses for the three months ended May 31, 2017 and 2016 are outlined in the table below:



Three Months
Ended


Three Months
Ended



May 31,


May 31,



2017


2016








Officer compensation

$ 155,250


$ 155,250

Professional fee

$ 14,716


$ 8,259

Rent

$ 6,000


$ 6,000

Web amortization expense

$ 2,083


$ 2,083

Office expense and other

$ 2,555


$ 1,792

Total operating expenses

$ 180,604


$ 173,385


The $7,220 increase in our operating costs for the three months ended May 31, 2017 compared to three months ended May 31, 2016, was mainly due to the $6,457 increase in professional fee to maintain public status.

Other Expenses

Other expenses increased to $8,198 for the three months ended May 31, 2017, from $5,590 for the three months ended May 31, 2016. Other expenses consisted primarily of $3,634 increase in derivatives liability and $1,026 decrease in debt discount amortization expense.

Net Loss

For the three months ended May 31, 2017, we recognized a net loss of $188,802 compared to the net loss of $178,975 for the corresponding period in 2016.

Liquidity and Capital Resources

Working Capital


May 31,
2017

February 28,
2017

Current Assets

$
13,286

$
10,841

Current Liabilities

$
1,079,521

$
1003,554

Working Capital Deficit

$
(1,066,235
)

$
(992,713
)

As of May 31, 2017, the Company had current assets, comprising of cash of $8,598 and prepaid expenses of $4,688, and current liabilities of $1,079,521, resulting in a working capital deficit of $1,066,235. The Company had no profitable trading activities and has an accumulated deficit of $2,710,343 as at May 31, 2017. This raises substantial doubt about the Company's ability to continue as a going concern.