Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Feb. 29, 2020 | May 12, 2020 | Aug. 30, 2019 | |
Document And Entity Information | |||
Entity Registrant Name | Jubilant Flame International, Ltd | ||
Entity Central Index Key | 0001517389 | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Entity Voluntary Filers | No | ||
Current Fiscal Year End Date | --02-28 | ||
Entity Well Known Seasoned Issuer | No | ||
Entity Small Business | true | ||
Entity Shell Company | false | ||
Entity Emerging Growth Company | false | ||
Entity Current Reporting Status | Yes | ||
Document Period End Date | Feb. 29, 2020 | ||
Entity Filer Category | Non-accelerated Filer | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2020 | ||
Entity Common Stock Shares Outstanding | 19,152,375 | ||
Entity Public Float | $ 692,096 | ||
Entity Interactive Data Current | Yes |
BALANCE SHEETS
BALANCE SHEETS - USD ($) | Feb. 29, 2020 | Feb. 28, 2019 |
Current assets | ||
Cash | $ 10,628 | $ 12,115 |
Account receivable | 9,402 | 279 |
Inventory | 7,293 | |
Prepaid expenses | 9,000 | 9,000 |
Total current assets | 29,030 | 28,687 |
Total Assets | 29,030 | 28,687 |
Current liabilities | ||
Accounts payable and accrued liabilities | 8,698 | 42,011 |
Due to Related Party | 47,643 | 2,178 |
Accrued officer compensation | 535,500 | 535,500 |
Loan payable - related parties | 489,945 | 443,606 |
Total current liabilities | 1,081,786 | 1,023,295 |
Total Liabilities | 1,081,786 | 1,023,296 |
Commitment and Contingencies | ||
Stockholders' Deficit | ||
Common stock, $0.001 par value per share 75,000,000 shares authorized; 19,048,208 and 18,548,208 shares issued and outstanding respectively | 19,049 | 18,548 |
Additional paid in capital | 2,436,233 | 2,418,733 |
Accumulated deficit | (3,508,038) | (3,431,889) |
Total Stockholders' Deficit | (1,052,756) | (994,608) |
Total Liabilities and Stockholders' Deficit | $ 29,030 | $ 28,687 |
BALANCE SHEETS (Parenthetical)
BALANCE SHEETS (Parenthetical) - $ / shares | Feb. 29, 2020 | Feb. 28, 2019 |
Stockholders' Deficit | ||
Common stock, shares par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 75,000,000 | 75,000,000 |
Common stock, shares issued | 19,048,208 | 18,548,208 |
Common stock, shares outstanding | 19,048,208 | 18,548,208 |
STATEMENTS OF OPERATIONS
STATEMENTS OF OPERATIONS - USD ($) | 12 Months Ended | |
Feb. 29, 2020 | Feb. 28, 2019 | |
STATEMENTS OF OPERATIONS | ||
Sales of goods | $ 36,997 | $ 53,143 |
Total sales | 36,997 | 53,143 |
Cost and Operating Expenses: | ||
Cost of goods sold | 12,794 | 32,092 |
Operating, selling, general and administrative | 100,351 | 337,150 |
Total operating expenses | 113,145 | 369,242 |
Loss from operations | (76,148) | (316,099) |
Provision for income tax: | ||
Net loss | $ (76,148) | $ (316,099) |
Net loss per share | ||
(Basic and fully diluted) | $ 0 | $ (0.02) |
Weighted average number of common shares outstanding | 18,736,391 | 18,455,708 |
STATEMENTS OF CHANGES IN STOCKH
STATEMENTS OF CHANGES IN STOCKHOLDERS DEFICIT - USD ($) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] |
Balance, shares at Feb. 28, 2018 | 18,410,708 | |||
Balance, amount at Feb. 28, 2018 | $ (838,259) | $ 18,411 | $ 2,259,120 | $ (3,115,790) |
Shares issued for stock compensation, shares | 137,500 | |||
Shares issued for stock compensation, amount | 159,750 | $ 138 | 159,613 | |
Net loss for the year | $ (316,099) | $ (316,099) | ||
Balance, shares at Feb. 28, 2019 | 18,548,208 | |||
Balance, amount at Feb. 28, 2019 | $ (994,608) | $ 18,549 | $ 2,418,733 | $ (3,431,889) |
Shares issued for stock compensation, shares | 500,000 | |||
Shares issued for stock compensation, amount | 18,000 | $ 500 | 17,500 | |
Net loss for the year | $ (76,148) | $ (76,148) | ||
Balance, shares at Feb. 29, 2020 | 19,048,208 | |||
Balance, amount at Feb. 29, 2020 | $ (1,052,756) | $ 19,048 | $ 2,436,233 | $ 3,508,037 |
STATEMENT OF CASH FLOW
STATEMENT OF CASH FLOW - USD ($) | 12 Months Ended | |
Feb. 29, 2020 | Feb. 28, 2019 | |
STATEMENT OF CASH FLOW | ||
Net loss | $ (76,148) | $ (316,099) |
Website amortization | 3,473 | |
Issued stock compensation | 18,000 | 159,750 |
Account receivable | (9,123) | 315 |
Inventory | 7,293 | (1,360) |
Prepaid expense | (1,500) | |
Accounts payable and accrued liabilities | 12,152 | 31,347 |
Accrued officer's compensation | 75,375 | |
Net cash used in operating activities | (47,826) | (48,699) |
Cash flows from financing activities | ||
Net proceeds from related party loans | 46,339 | 52,778 |
Debt payment | ||
Net cash provided by financing activities | 46,339 | 52,778 |
Net Increase (Decrease) In Cash | (1,487) | 4,079 |
Cash at beginning of year | 12,115 | 8,036 |
Cash at end of year | 10,628 | 12,115 |
Schedule of Non-Cash Investing and Financing Activities | ||
Supplemental Disclosure | ||
Cash paid for interest | ||
Cash paid for income taxes |
ORGANIZATION AND OPERATIONS
ORGANIZATION AND OPERATIONS | 12 Months Ended |
Feb. 29, 2020 | |
ORGANIZATION AND OPERATIONS | |
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. 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. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Feb. 29, 2020 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
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”). Use of Estimates and Assumptions The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Management bases its estimates on historical experience and on various assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. The Company’s significant estimates include income tax provisions and valuation allowances of deferred tax assets; the fair value of financial instruments and the assumption that the company will continue as a going concern. Those significant accounting estimates or assumptions bear the risk of change due to the fact that there are uncertainties attached to those estimates or assumptions, and certain estimates or assumptions are difficult to measure or value. Management regularly reviews its estimates utilizing currently available information, changes in facts and circumstances, historical experience and reasonable assumptions. After such reviews, and if deemed appropriate, those estimates are adjusted accordingly. Actual results could differ from those estimates. Cash and Cash Equivalents The Company considers all highly liquid investments with a maturity of three months or less to be cash and cash equivalents. Receivables Receivables are stated at their carrying values, net of a reserve for doubtful accounts. Receivables consist primarily of amounts due from Amazon reserve holding balance Inventories The Company values inventories at the lower of cost or net realizable value as determined primarily by the retail inventory method of accounting, using the first-in, first-out (“FIFO”) method. Carrying Value, Recoverability and Impairment of Long-Lived Assets The Company has adopted paragraph 360-10-35-17 of the FASB Accounting Standards Codification for its long-lived assets. The Company’s long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The Company assesses the recoverability of its long-lived assets by comparing the projected undiscounted net cash flows associated with the related long-lived asset or group of long-lived assets over their remaining estimated useful lives against their respective carrying amounts. Impairment, if any, is based on the excess of the carrying amount over the fair value of those assets. Fair value is generally determined using the asset’s expected future discounted cash flows or market value, if readily determinable. If long-lived assets are determined to be recoverable, but the newly determined remaining estimated useful lives are shorter than originally estimated, the net book values of the long-lived assets are depreciated over the newly determined remaining estimated useful lives. The Company considers the following to be some examples of important indicators that may trigger an impairment review: (i) significant under-performance or losses of assets relative to expected historical or projected future operating results; (ii) significant changes in the manner or use of assets or in the Company’s overall business strategy; (iii) significant negative industry or economic trends; (iv) increased competitive pressures; (v) a significant decline in the Company’s stock price for a sustained period of time; and (vi) regulatory changes. The Company evaluates acquired assets for potential impairment indicators at least annually and more frequently upon the occurrence of such events. The impairment charges, if any, are included in operating expense in the accompanying statements of income and comprehensive income (loss). Recent Accounting Pronouncements The Company has implemented all new accounting pronouncements that are in effect as of the date of the issuance of these financial statements. In October 2018, FASB issued ASU No. 2018-17, Consolidation - Targeted Improvements to Related Party Guidance for Variable Interest Entities (Topic 810). In July 2018, the FASB issued ASU 2018-07, Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting. This update addresses several aspects of the accounting for nonemployee share-based payment transactions and expands the scope of ASC 718 to include share-based payment transactions for acquiring goods and services from nonemployees. The main provisions of the update change the way nonemployee awards are measured in the financial statements. Under the simplified standards, nonemployee options will be valued once at the date of grant, as compared to at each reporting period end under ASC 505-50. At adoption, all awards without established measurement dates will be revalued one final time, and a cumulative effect adjustment to retained earnings will be recorded as the difference between the pre-adoption value and new value. Companies will be permitted to make elections to establish the expected term and either recognize forfeitures as they occur or apply a forfeiture rate. Compensation expense recognition using a graded vesting schedule will no longer be permitted. This pending content is the result of the FASB’s Simplification Initiative, to maintain or improve the usefulness of the information provided to the users of financial statements while reducing cost and complexity in financial reporting. This ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018. Early adoption is permitted, but no earlier than an entity’s adoption date of Topic 606. Because the Company does not currently have any outstanding awards to non-employees for which a measurement date has not been established the adoption of ASU 2018-07 does not have a material impact to the Company’s financial statements and related disclosures upon adoption. The adoption of this standard will change the way that the Company accounts for non-employee compensation in the future In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). Under this guidance, lessees will be required to recognize on the balance sheet a lease liability and a right-of-use asset for all leases, with the exception of short-term leases. The lease liability represents the lessee’s obligation to make lease payments arising from a lease, and will be measured as the present value of the lease payments. The right-of-use asset represents the lessee’s right to use a specified asset for the lease term, and will be measured at the lease liability amount, adjusted for lease prepayment, lease incentives received and the lessee’s initial direct costs. The standard also requires a lessee to recognize a single lease cost allocated over the lease term, generally on a straight-line basis. The new guidance is effective for fiscal years beginning after December 15, 2018. ASU 2016-02 is required to be applied using the modified retrospective approach for all leases existing as of the effective date and provides for certain practical expedients. Early adoption is permitted. Because the Company does not currently have any lease, the adoption of ASU 2016-02 does not have a material impact to the Company’s financial statements and related disclosures upon adoption. The adoption of this standard will change the way that the Company accounts lease in the future Fair Value of Financial Instruments The Company measures assets and liabilities at fair value based on expected exit price as defined by the authoritative guidance on fair value measurements, which represents the amount that would be received on the sale date of an asset or paid to transfer a liability, as the case may be, in an orderly transaction between market participants. As such, fair value may be based on assumptions that market participants would use in pricing an asset or liability. The authoritative guidance on fair value measurements establishes a consistent framework for measuring fair value on either a recurring or nonrecurring basis whereby inputs, used in valuation techniques, are assigned a hierarchical level. The following are the hierarchical levels of inputs to measure fair value: · Level 1: Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. · Level 2: Inputs reflect quoted prices for identical assets or liabilities in markets that are not active; quoted prices for similar assets or liabilities in active markets; inputs other than quoted prices that are observable for the assets or liabilities; or inputs that are derived principally from or corroborated by observable market data by correlation or other means. · Level 3: Unobservable inputs reflecting the Company’s assumptions incorporated in valuation techniques used to determine fair value. These assumptions are required to be consistent with market participant assumptions that are reasonably available. The carrying amounts of the Company’s financial assets and liabilities, such as cash, accounts receivable, accounts payable, due to related party and loan payable, approximate their fair values because of the current nature of these instruments. . Commitments and Contingencies Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated. Income Taxes Deferred income tax assets and liabilities are provided for based upon differences between financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance to the extent management concludes it is more likely than not that the assets will not be realized. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the statements of operations in the period that includes the enactment date. Revenue Recognition Sales The Company recognizes eCommerce sales revenue, net of sales taxes and estimated sales returns, upon delivery to the customer. Additionally, estimated sales returns are calculated using historical experience of actual returns as a percent of sales. No estimated sales returns were recorded by the year end February 29, 2020 and February 28, 2019. Cost of Sales Cost of sales includes actual product cost, the cost of transportation to the Company’s distribution facilities. Operating, Selling, General and Administrative Expenses Operating, selling, general and administrative expenses include all operating costs of the Company, except cost of sales, as described above. Advertising Costs Advertising costs are expensed as incurred, consist primarily of video advertisements and are recorded in operating, selling, general and administrative expenses in the Company’s Statements of Income. Advertising costs zero and $1,599 for fiscal 2020 and 2019, respectively. Net Loss Per Common Share Basic net loss per share is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the period. Diluted net loss per share is computed by dividing net loss by the weighted average number of shares of common stock and potentially outstanding shares of common stock during each period. Since the company has incurred losses for all periods, the impact of the common stock equivalents would be anti- dilutive and therefore are not included in the calculation. |
GOING CONCERN
GOING CONCERN | 12 Months Ended |
Feb. 29, 2020 | |
GOING CONCERN | |
NOTE 3. 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. As of February 29, 2020, the Company had a working capital deficit of $1,052,756. The Company currently has limited profitable trading activities and has an accumulated deficit of $3,508,038 as of February 29, 2020. This raises substantial doubt about the Company’s ability to continue as a going concern. 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 new business plan in the medical and cosmetics 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. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Feb. 29, 2020 | |
RELATED PARTY TRANSACTIONS | |
NOTE 4. RELATED PARTY TRANSACTIONS | In support of the Company’s efforts and cash requirements, it must rely on advances from related parties until such time that the Company can support its operations or attains adequate financing through sales of its equity or traditional debt financing. There is no formal written commitment for continued support by shareholders. The advances are considered temporary in nature and have not been formalized by a promissory note. As of February 29, 2020, the Company had a $489,945 loan outstanding with its CEO, Ms. Yan Li. This compares with the outstanding balance of $443,606 for Ms. Yan Li as of February 28, 2019. The loans are non-interest bearing, due upon demand and unsecured. A related party company is providing accounting service to the company at an estimated annual service fee of $23,000. From November 2017, the Company began purchasing cosmetic and sprout products from two related parties controlled by our CEO. The Company purchased a total of $5,708 and $33,093 in inventory from the two related parties at the end of February 29, 2020 and February 28, 2019 respectively. |
ACCRUED OFFICER COMPENSATION AN
ACCRUED OFFICER COMPENSATION AND STOCK COMPENSATION | 12 Months Ended |
Feb. 29, 2020 | |
ACCRUED OFFICER COMPENSATION AND STOCK COMPENSATION | |
NOTE 5. ACCRUED OFFICER COMPENSATION AND STOCK COMPENSATION | On December 15, 2015, the Company entered into employment agreements with its president, Ms. Yan Li, and its former secretary and treasurer, Mr. Robert Ireland. Both agreements were retroactively effective as of December 4, 2015, for a term of 36 months (measured from December 4, 2015). Pursuant to the agreement, both Ms. Yan and Mr. Ireland shall each receive an annual salary of $100,500 and 100,000 shares of the Company’s common stock. On August 30, 2017, Mr. Robert Ireland resigned as Secretary/Treasurer of the company. Additionally, upon his resignation, he surrendered all outstanding equity compensation to the company and agreed to cancel all outstanding debt of the company that was owed to him for past compensation in the amount of $410,715. On January 15 th As of February 29, 2020, a total of $535,500 had been accrued as accrued officer compensation payable to its president compared to $535,500 as of February 28, 2019. As of February 29, 2020, a total of $18,000 in stock compensation expense had been recorded to five officers compared to a total of $159,750 in stock compensation recorded for the same period as of February 28, 2019. |
INCOME TAX
INCOME TAX | 12 Months Ended |
Feb. 29, 2020 | |
INCOME TAX | |
NOTE 6. INCOME TAX | At February 29, 2020, the Company had unused federal and state net operating loss carryforwards available of approximately $949,708, which may be applied against future taxable income, if any, and which expire in various years through 2040. This loss carry-forward expires according to the following schedule: Year Ending February 29, 2020 Amount 2034 $ 54,197 2035 - 2036 539,420 2037 107,453 2038 118,828 2039 80,296 2040 49,514 Total $ 949,708 The following is a reconciliation of the tax provision as calculated at the statutory tax rate to the provision as recognized for the years ended February 29, 2020 and February 28, 2019: 2020 2019 Tax provision at statutory rates $ (15,991 ) $ (66,381 ) Effect of permanent and Temporary difference(s) 5,593 49,519 Change in valuation allowance 10,398 16,862 Net tax expense $ - $ - There were permanent differences and temporary differences to reconcile the tax provision for the years ended February 28, 2020 and 2019, other than the change in valuation allowance of $10,398 and $16,862, respectively. All tax years from inception remain open for examination by the tax authorities. In addition to tax loss carry forward, unrecognized deferred tax assets as of February 29, 2020 and 2019, primarily related to accrued officer compensation and other accrued expense not deductible until paid for income tax purposes amounted to $ 1,813 and $15,829, respectively. |
STOCKHOLDERS DEFICIT
STOCKHOLDERS DEFICIT | 12 Months Ended |
Feb. 29, 2020 | |
STOCKHOLDERS DEFICIT | |
NOTE 7. STOCKHOLDERS DEFICIT | Common Stock The Company has authorized share capital of 75,000,000 shares of common stock authorized with a par value of $0.001 per share. On January 15, 2019, Company’s Board of Directors renewed the employment agreement with its CEO and decided to grant its CEO and other four officers and directors, including two newly appointed directors, a total of 500,000 shares as stock compensation each year for a term of three years. The granted restricted stock is valued based on stock market price of $0.036 per share at stock grant date. As of February 29, 2020, a total of 500,000 shares valued at $18,000 in stock compensation expense had been recorded for five officers compared to a total of 137,500 shares valued at $159,750 in stock compensation to the same five directors as of February 28, 2019. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Feb. 29, 2020 | |
SUBSEQUENT EVENTS | |
NOTE 8. SUBSEQUENT EVENTS | In accordance with ASC 855-10, “Subsequent Events”, the Company has analyzed its operations subsequent to February 29, 2020 to May 12, 2020, the date when the financial statements were issued. The Management of the Company determined that there were no reportable events that occurred during that subsequent period to be disclosed or recorded. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Feb. 29, 2020 | |
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”). |
Use of Estimates and Assumptions | The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Management bases its estimates on historical experience and on various assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. The Company’s significant estimates include income tax provisions and valuation allowances of deferred tax assets; the fair value of financial instruments and the assumption that the company will continue as a going concern. Those significant accounting estimates or assumptions bear the risk of change due to the fact that there are uncertainties attached to those estimates or assumptions, and certain estimates or assumptions are difficult to measure or value. Management regularly reviews its estimates utilizing currently available information, changes in facts and circumstances, historical experience and reasonable assumptions. After such reviews, and if deemed appropriate, those estimates are adjusted accordingly. Actual results could differ from those estimates. |
Cash and Cash Equivalents | The Company considers all highly liquid investments with a maturity of three months or less to be cash and cash equivalents. |
Receivables | Receivables are stated at their carrying values, net of a reserve for doubtful accounts. Receivables consist primarily of amounts due from Amazon reserve holding balance. |
Inventories | The Company values inventories at the lower of cost or net realizable value as determined primarily by the retail inventory method of accounting, using the first-in, first-out (“FIFO”) method. |
Carrying Value, Recoverability and Impairment of Long-Lived Assets | The Company has adopted paragraph 360-10-35-17 of the FASB Accounting Standards Codification for its long-lived assets. The Company’s long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The Company assesses the recoverability of its long-lived assets by comparing the projected undiscounted net cash flows associated with the related long-lived asset or group of long-lived assets over their remaining estimated useful lives against their respective carrying amounts. Impairment, if any, is based on the excess of the carrying amount over the fair value of those assets. Fair value is generally determined using the asset’s expected future discounted cash flows or market value, if readily determinable. If long-lived assets are determined to be recoverable, but the newly determined remaining estimated useful lives are shorter than originally estimated, the net book values of the long-lived assets are depreciated over the newly determined remaining estimated useful lives. The Company considers the following to be some examples of important indicators that may trigger an impairment review: (i) significant under-performance or losses of assets relative to expected historical or projected future operating results; (ii) significant changes in the manner or use of assets or in the Company’s overall business strategy; (iii) significant negative industry or economic trends; (iv) increased competitive pressures; (v) a significant decline in the Company’s stock price for a sustained period of time; and (vi) regulatory changes. The Company evaluates acquired assets for potential impairment indicators at least annually and more frequently upon the occurrence of such events. The impairment charges, if any, are included in operating expense in the accompanying statements of income and comprehensive income (loss). |
Recent Accounting Pronouncements | The Company has implemented all new accounting pronouncements that are in effect as of the date of the issuance of these financial statements. In October 2018, FASB issued ASU No. 2018-17, Consolidation - Targeted Improvements to Related Party Guidance for Variable Interest Entities (Topic 810). In July 2018, the FASB issued ASU 2018-07, Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting. This update addresses several aspects of the accounting for nonemployee share-based payment transactions and expands the scope of ASC 718 to include share-based payment transactions for acquiring goods and services from nonemployees. The main provisions of the update change the way nonemployee awards are measured in the financial statements. Under the simplified standards, nonemployee options will be valued once at the date of grant, as compared to at each reporting period end under ASC 505-50. At adoption, all awards without established measurement dates will be revalued one final time, and a cumulative effect adjustment to retained earnings will be recorded as the difference between the pre-adoption value and new value. Companies will be permitted to make elections to establish the expected term and either recognize forfeitures as they occur or apply a forfeiture rate. Compensation expense recognition using a graded vesting schedule will no longer be permitted. This pending content is the result of the FASB’s Simplification Initiative, to maintain or improve the usefulness of the information provided to the users of financial statements while reducing cost and complexity in financial reporting. This ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018. Early adoption is permitted, but no earlier than an entity’s adoption date of Topic 606. Because the Company does not currently have any outstanding awards to non-employees for which a measurement date has not been established the adoption of ASU 2018-07 does not have a material impact to the Company’s financial statements and related disclosures upon adoption. The adoption of this standard will change the way that the Company accounts for non-employee compensation in the future In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). Under this guidance, lessees will be required to recognize on the balance sheet a lease liability and a right-of-use asset for all leases, with the exception of short-term leases. The lease liability represents the lessee’s obligation to make lease payments arising from a lease, and will be measured as the present value of the lease payments. The right-of-use asset represents the lessee’s right to use a specified asset for the lease term, and will be measured at the lease liability amount, adjusted for lease prepayment, lease incentives received and the lessee’s initial direct costs. The standard also requires a lessee to recognize a single lease cost allocated over the lease term, generally on a straight-line basis. The new guidance is effective for fiscal years beginning after December 15, 2018. ASU 2016-02 is required to be applied using the modified retrospective approach for all leases existing as of the effective date and provides for certain practical expedients. Early adoption is permitted. Because the Company does not currently have any lease, the adoption of ASU 2016-02 does not have a material impact to the Company’s financial statements and related disclosures upon adoption. The adoption of this standard will change the way that the Company accounts lease in the future |
Fair Value of Financial Instruments | The Company measures assets and liabilities at fair value based on expected exit price as defined by the authoritative guidance on fair value measurements, which represents the amount that would be received on the sale date of an asset or paid to transfer a liability, as the case may be, in an orderly transaction between market participants. As such, fair value may be based on assumptions that market participants would use in pricing an asset or liability. The authoritative guidance on fair value measurements establishes a consistent framework for measuring fair value on either a recurring or nonrecurring basis whereby inputs, used in valuation techniques, are assigned a hierarchical level. The following are the hierarchical levels of inputs to measure fair value: · Level 1: Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. · Level 2: Inputs reflect quoted prices for identical assets or liabilities in markets that are not active; quoted prices for similar assets or liabilities in active markets; inputs other than quoted prices that are observable for the assets or liabilities; or inputs that are derived principally from or corroborated by observable market data by correlation or other means. · Level 3: Unobservable inputs reflecting the Company’s assumptions incorporated in valuation techniques used to determine fair value. These assumptions are required to be consistent with market participant assumptions that are reasonably available. The carrying amounts of the Company’s financial assets and liabilities, such as cash, accounts receivable, accounts payable, due to related party and loan payable, approximate their fair values because of the current nature of these instruments. . |
Commitments and Contingencies | Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated. |
Income Taxes | Deferred income tax assets and liabilities are provided for based upon differences between financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance to the extent management concludes it is more likely than not that the assets will not be realized. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the statements of operations in the period that includes the enactment date. |
Revenue Recognition | Sales The Company recognizes eCommerce sales revenue, net of sales taxes and estimated sales returns, upon delivery to the customer. Additionally, estimated sales returns are calculated using historical experience of actual returns as a percent of sales. No estimated sales returns were recorded by the year end February 29, 2020 and February 28, 2019. |
Cost of Sales | Cost of sales includes actual product cost, the cost of transportation to the Company’s distribution facilities. |
Operating, Selling, General and Administrative Expenses | Operating, selling, general and administrative expenses include all operating costs of the Company, except cost of sales, as described above. |
Advertising Costs | Advertising costs are expensed as incurred, consist primarily of video advertisements and are recorded in operating, selling, general and administrative expenses in the Company’s Statements of Income. Advertising costs zero and $1,599 for fiscal 2020 and 2019, respectively. |
Net Loss Per Common Share | Basic net loss per share is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the period. Diluted net loss per share is computed by dividing net loss by the weighted average number of shares of common stock and potentially outstanding shares of common stock during each period. Since the company has incurred losses for all periods, the impact of the common stock equivalents would be anti- dilutive and therefore are not included in the calculation. |
INCOME TAX (Tables)
INCOME TAX (Tables) | 12 Months Ended |
Feb. 29, 2020 | |
INCOME TAX | |
Loss carry forward | Year Ending February 29, 2020 Amount 2034 $ 54,197 2035 - 2036 539,420 2037 107,453 2038 118,828 2039 80,296 2040 49,514 Total $ 949,708 |
Reconciliation of the tax provision | 2020 2019 Tax provision at statutory rates $ (15,991 ) $ (66,381 ) Effect of permanent and Temporary difference(s) 5,593 49,519 Change in valuation allowance 10,398 16,862 Net tax expense $ - $ - |
ORGANIZATION AND OPERATIONS (De
ORGANIZATION AND OPERATIONS (Details Narrative) | 12 Months Ended |
Feb. 29, 2020 | |
ORGANIZATION AND OPERATIONS | |
Date of Incorporation | Sep. 29, 2009 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 12 Months Ended | |
Feb. 29, 2020 | Feb. 28, 2019 | |
ORGANIZATION AND OPERATIONS | ||
Advertisment cost | $ 0 | $ 1,599 |
GOING CONCERN (Details Narrativ
GOING CONCERN (Details Narrative) - USD ($) | Feb. 29, 2020 | Feb. 28, 2019 | Feb. 28, 2018 |
GOING CONCERN (Details Narrative) | |||
Working capital deficit | $ (1,052,756) | $ (994,608) | $ (838,259) |
Accumulated deficit | $ (3,508,038) | $ (3,431,889) |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) | 12 Months Ended | |
Feb. 29, 2020 | Feb. 28, 2019 | |
Accounting service fee | $ 23,000 | |
Loan payable - related party | 489,945 | $ 443,606 |
CEO [Member] | ||
Purchase of inventory from related party | 5,708 | 33,093 |
Ms. Yan Li [Member] | ||
Loan payable - related party | $ 489,945 | $ 443,606 |
ACCRUED OFFICER COMPENSATION (D
ACCRUED OFFICER COMPENSATION (Details Narrative) - USD ($) | Jan. 15, 2019 | Dec. 15, 2015 | Feb. 29, 2020 | Feb. 28, 2019 | Aug. 30, 2017 |
Accrued compensation | $ 535,500 | $ 535,500 | |||
Share based compensation expense | 18,000 | 159,750 | |||
Officers [Member] | |||||
Accrued compensation | 535,500 | 535,500 | |||
Five Directors [Member] | |||||
Term of agreement | 3 years | ||||
Shares issuable each year as compensations to related party | 500,000 | ||||
Five Officers [Member] | |||||
Share based compensation expense | $ 18,000 | $ 159,750 | |||
Ms. Yan Li [Member] | |||||
Annual salary | $ 100,500 | ||||
Share based compensation, shares | 100,000 | ||||
Mr. Robert Ireland [Member] | |||||
Annual salary | $ 100,500 | ||||
Share based compensation, shares | 100,000 | ||||
Cancellation of outstanding debt | $ 410,715 | ||||
President [Member] | Employment Agreement [Member] | December 4, 2015 [Member] | |||||
Term of agreement | 36 months |
INCOME TAX (Details)
INCOME TAX (Details) | Feb. 29, 2020USD ($) |
Total | $ 949,708 |
2040 | |
Total | 49,514 |
2034 | |
Total | 54,197 |
2035 | |
Total | |
2036 | |
Total | 539,420 |
2037 | |
Total | 107,453 |
2038 | |
Total | 118,828 |
2039 | |
Total | $ 80,296 |
INCOME TAX (Details 1)
INCOME TAX (Details 1) - USD ($) | 12 Months Ended | |
Feb. 29, 2020 | Feb. 28, 2019 | |
INCOME TAX | ||
Tax provision at statutory rates | $ (15,991) | $ (66,381) |
Effect of permanent and Temporary difference(s) | 5,593 | 49,519 |
Change in valuation allowance | 10,398 | 16,862 |
Net tax expense |
INCOME TAX (Details Narrative)
INCOME TAX (Details Narrative) - USD ($) | 12 Months Ended | |
Feb. 29, 2020 | Feb. 28, 2019 | |
INCOME TAX | ||
Net operating loss carryforward | $ 949,708 | |
Net operating loss carry forwards expire year | 2040 | |
Change in the valuation allowance | $ 10,398 | $ 16,862 |
Deferred tax assets | $ 1,813 | $ 15,829 |
STOCKHOLDERS EQUITY (Details Na
STOCKHOLDERS EQUITY (Details Narrative) - USD ($) | Jan. 15, 2019 | Feb. 29, 2020 | Feb. 28, 2019 |
Common stock, shares authorized | 75,000,000 | 75,000,000 | |
Common stock, shares par value | $ 0.001 | $ 0.001 | |
Share based compensation expense | $ 18,000 | $ 159,750 | |
Five Officers [Member] | |||
Shares issuable each year as compensations to related party | 500,000 | ||
Restricted shares, per share price | $ 0.036 | ||
Share based compensation, shares | 500,000 | 137,500 | |
Share based compensation expense | $ 18,000 | $ 159,750 |