Cover
Cover - USD ($) | 12 Months Ended | ||
Feb. 28, 2023 | May 10, 2023 | Aug. 31, 2022 | |
Cover [Abstract] | |||
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. 28, 2023 | ||
Entity Filer Category | Non-accelerated Filer | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2023 | ||
Entity Common Stock Shares Outstanding | 19,985,708 | ||
Entity Public Float | $ 287,422 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity File Number | 333-173456 | ||
Entity Incorporation State Country Code | NV | ||
Entity Address Address Line 1 | Room 508, T1N Vi Park | ||
Entity Address Address Line 2 | 360 Xin Long Road | ||
Entity Address City Or Town | Shanghai | ||
Entity Address Country | CN | ||
Entity Address Postal Zip Code | 201101 | ||
City Area Code | 86 21 | ||
Local Phone Number | 64748888 | ||
Security 12g Title | Common Stock, $0.001 par value | ||
Entity Interactive Data Current | Yes | ||
Icfr Auditor Attestation Flag | false | ||
Auditor Name | KCCW Accountancy Corp | ||
Auditor Location | Diamond Bar, California | ||
Auditor Firm Id | 2851 |
BALANCE SHEETS
BALANCE SHEETS - USD ($) | Feb. 28, 2023 | Feb. 28, 2022 |
Current assets | ||
Cash | $ 3,582 | $ 3,582 |
Prepaid expenses | 10,665 | 10,500 |
Total current assets | 14,247 | 14,082 |
Total Assets | 14,247 | 14,082 |
Current liabilities | ||
Accounts payable - related parties | 47,643 | 47,643 |
Accrued expense | 28,580 | 7,000 |
Accrued officer compensation | 535,500 | 535,500 |
Loan payable - related parties | 632,072 | 591,942 |
Total current liabilities | 1,243,795 | 1,182,085 |
Total Liabilities | 1,243,795 | 1,182,085 |
Commitment and Contingencies | 0 | 0 |
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 | (3,718,579) | (3,657,034) |
Total Stockholders' Deficit | (1,229,548) | (1,168,003) |
Total Liabilities and Stockholders' Deficit | $ 14,247 | $ 14,082 |
BALANCE SHEETS (Parenthetical)
BALANCE SHEETS (Parenthetical) - $ / shares | Feb. 28, 2023 | Feb. 28, 2022 |
BALANCE SHEETS | ||
Common Stock, Shares Par Value | $ 0.001 | $ 0.001 |
Common Stock, Shares Authorized | 75,000,000 | 75,000,000 |
Common Stock, Shares Issued | 19,985,708 | 19,985,708 |
Common Stock, Shares Outstanding | 19,985,708 | 19,985,708 |
STATEMENTS OF OPERATIONS
STATEMENTS OF OPERATIONS - USD ($) | 12 Months Ended | |
Feb. 28, 2023 | Feb. 28, 2022 | |
STATEMENTS OF OPERATIONS | ||
Sales of goods | $ 0 | $ 0 |
Total sales | 0 | 0 |
Cost and Operating Expenses: | ||
Cost of goods sold | 0 | 0 |
Operating, selling, general and administrative | 61,545 | 79,274 |
Total operating expenses | 61,545 | 79,274 |
Other income: | ||
Other income | 0 | 14,463 |
Other income, net | 0 | 14,463 |
Loss from operations | (61,545) | (64,811) |
Provision for income tax: | 0 | 0 |
Net loss | $ (61,545) | $ (64,811) |
Net loss per share | ||
(Basic and fully diluted) | $ 0 | $ 0 |
Weighted average number of common shares outstanding | 19,985,708 | 19,549,407 |
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, 2021 | 19,548,208 | |||
Balance, amount at Feb. 28, 2021 | $ (1,118,942) | $ 19,548 | $ 2,453,733 | $ (3,592,223) |
Shares issued for stock compensation, shares | 437,500 | |||
Shares issued for stock compensation, amount | 15,750 | $ 438 | 15,313 | |
Net loss for the year | (64,811) | (64,811) | ||
Balance, shares at Feb. 28, 2022 | 19,985,708 | |||
Balance, amount at Feb. 28, 2022 | (1,168,003) | $ 19,986 | 2,469,045 | (3,657,034) |
Net loss for the year | (61,545) | (61,545) | ||
Balance, shares at Feb. 28, 2023 | 19,985,708 | |||
Balance, amount at Feb. 28, 2023 | $ (1,229,548) | $ 19,986 | $ 2,469,045 | $ (3,718,579) |
STATEMENTS OF CASH FLOWS
STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Feb. 28, 2023 | Feb. 28, 2022 | |
Cash flows from operating activities | ||
Net loss | $ (61,545) | $ (64,811) |
Adjustments to reconcile net loss to net cash used in operating activities | ||
Issued stock compensation | 0 | 15,750 |
Account receivable write off | 0 | 7,384 |
Changes in Current Assets and Liabilities | ||
Account receivable | 0 | 2,000 |
Prepaid expense | (165) | (1,500) |
Accounts payable and accrued liabilities | 21,580 | 1,500 |
Net cash used in operating activities | (40,130) | (39,677) |
Cash flows from financing activities | ||
Net proceeds from related party loans | 40,130 | 40,818 |
Net cash provided by financing activities | 40,130 | 40,818 |
Net increase in Cash | 0 | 1,141 |
Cash at beginning of year | 3,582 | 2,441 |
Cash at end of year | $ 3,582 | $ 3,582 |
ORGANIZATION AND OPERATIONS
ORGANIZATION AND OPERATIONS | 12 Months Ended |
Feb. 28, 2023 | |
ORGANIZATION AND OPERATIONS | |
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. 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 its new business line of providing technical support services for development of new nutrition food products to sell to customers in USA. The company had not generated revenue from this new business by the year ended at February 28.2023. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Feb. 28, 2023 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
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. 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 August 2020, the FASB issued ASU 2020-06, Debt — Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (“ASU 2020-06”). ASU 2020-06 simplifies the accounting for convertible debt by eliminating the beneficial conversion and cash conversion accounting models. Upon adoption of ASU 2020-06, convertible debt, unless issued with a substantial premium or an embedded conversion feature that is not clearly and closely related to the host contract, will no longer be allocated between debt and equity components. This modification will reduce the issue discount and result in less non-cash interest expense in financial statements. ASU 2020-06 also updates the earnings per share calculation and requires entities to assume share settlement when the convertible debt can be settled in cash or shares. For contracts in an entity’s own equity, the type of contracts primarily affected by ASU 2020-06 are freestanding and embedded features that are accounted for as derivatives under the current guidance due to a failure to meet the settlement assessment by removing the requirements to (i) consider whether the contract would be settled in registered shares, (ii) consider whether collateral is required to be posted, and (iii) assess shareholder rights. ASU 2020-06 is effective for fiscal years beginning after December 15, 2023. Early adoption is permitted, but only if adopted as of the beginning of such fiscal year. The Company is currently evaluating the impact that the standard will have on its unaudited condensed consolidated financial statements. In May 2021, the FASB issued ASU 2021-04, Earnings Per Share (Topic 260), Debt — Modifications and Extinguishments (Subtopic 470-50), Compensation — Stock Compensation (Topic 718), and Derivatives and Hedging — Contracts in Entity’s Own Equity (Subtopic 815-40): Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options (“ASU 2021-04”). ASU 2021-04 provides guidance as to how an issuer should account for a modification of the terms or conditions or an exchange of a freestanding equity-classified written call option (i.e., a warrant) that remains classified after modification or exchange as an exchange of the original instrument for a new instrument. An issuer should measure the effect of a modification or exchange as the difference between the fair value of the modified or exchanged warrant and the fair value of that warrant immediately before modification or exchange and then apply a recognition model that comprises four categories of transactions and the corresponding accounting treatment for each category (equity issuance, debt origination, debt modification, and modifications unrelated to equity issuance and debt origination or modification). ASU 2021-04 was effective for the Company’s fiscal years beginning September 1, 2022, including interim periods within those fiscal years. The Company concluded that the standard has no material impact on its unaudited condensed consolidated financial statements. Recent Accounting Pronouncements Not Yet Adopted The Company has considered all recently issued accounting pronouncements and does not believe the adoption of such pronouncements will have a material impact on its consolidated financial statements. 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 sales and estimated sales returns were recorded by the year end February 28, 2023 and February 28, 2022. Cost of Sales Cost of sales includes actual product cost, the cost of transportation to the Company’s distribution facilities. No cost of sales was recorded by the year end February 28, 2023 and February 28, 2022. Operating, Selling, General and Administrative Expenses Operating, selling, general and administrative expenses include all operating costs of the Company. 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. 28, 2023 | |
GOING CONCERN | |
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 28, 2023, the Company had a working capital deficit of $1,229,548. The Company currently has limited profitable trading activities and has an accumulated deficit of $3,718,579 as of February 28, 2023. The COVID-19 pandemic has had and continues to have a major slowdown effect on worldwide business activity. Although the Company does not anticipate any fundamental change in its business plans, management does expect some degree of unavoidable slowdown due to the Company’s inherent reliance on business activities from multiple external partners, clients outside our control. 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 nutrition food technical service 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. 28, 2023 | |
RELATED PARTY TRANSACTIONS | |
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. The CEO confirmed the personal commitment to provide financial support for the next twelve-months from the balance sheet date. As of February 28, 2023, the Company had a $632,072 advance payment from its CEO, Ms. Yan Li. This compares with an outstanding balance of $591,942 for Ms. Yan Li as of February 28, 2022. The advances are non-interest bearing, due upon demand and unsecured. The company business is operated from an office provided by the CEO. A related party company is providing accounting service to the Company at an estimated annual service fee of $19,000. 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 $47,643 of inventory from two related parties which was sold during the year ended February 29, 2020, the accounts payable balance of which is outstanding as of February 28, 2023 and February 28, 2022. |
ACCRUED OFFICER COMPENSATION AN
ACCRUED OFFICER COMPENSATION AND STOCK COMPENSATION | 12 Months Ended |
Feb. 28, 2023 | |
ACCRUED OFFICER COMPENSATION AND STOCK COMPENSATION | |
Accrued Officer Compensation And Stock Compensation | NOTE 5 – ACCRUED OFFICER COMPENSATION AND STOCK COMPENSATION On December 15, 2015, the Company entered into an employment agreement with its president, Ms. Yan Li. The agreement was retroactively effective as of December 4, 2015, for a term of 36 months (measured from December 4, 2015). Pursuant to the agreement, Ms. Yan shall receive an annual salary of $100,500 and 100,000 shares of the Company’s common stock. On January 15, 2019, the board of the company approved new compensation to its five officers including two new appointed directors. The five directors waived their salary and will receive a total of 500,000 shares each year for a term of three years. As of February 28, 2023, a total of $535,500 had been accrued as accrued officer compensation payable to its president compared to $535,500 as of February 28, 2022. For the year ended February 28, 2023, a total of zero in stock compensation expense had been recorded for five officers compared to a total of $15,750 in stock compensation recorded for the same period ended February 28, 2022. |
INCOME TAX
INCOME TAX | 12 Months Ended |
Feb. 28, 2023 | |
INCOME TAX | |
Income Tax | NOTE 6 – INCOME TAX At February 28, 2023, the Company had unused federal and state net operating loss carryforwards available of approximately $1,092,419, which may be applied against future taxable income, if any, and which expire in various years through 2043. This loss carry-forward expires according to the following schedule: Year Ending February 28, 2023 Amount 2034 $ 54,197 2035 - 2036 539,420 2037 107,453 2038 118,828 2039 80,296 2040 49,514 2041 60,686 2042 42,060 2043 39,965 Total $ 1,092,419 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 28, 2023 and February 28, 2022: 2023 2022 Tax provision at statutory rates $ (12,925 ) $ (12,770 ) Effect of permanent and temporary difference(s) 4,532 3,938 Change in valuation allowance 8,393 8,832 Provision for income tax $ - $ - There were permanent differences and temporary differences to reconcile the tax provision for the years ended February 28, 2023 and 2022, other than the change in valuation allowance of $8,393 and $8,832, 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 28, 2023 and February 28, 2022, primarily related to accrued expense not deductible until paid for income tax purposes amounted to $ 4,532 and $3,938, respectively. |
STOCKHOLDERS DEFICIT
STOCKHOLDERS DEFICIT | 12 Months Ended |
Feb. 28, 2023 | |
STOCKHOLDERS DEFICIT | |
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. During the year ended February 28, 2023, a total of zero shares valued at zero in stock compensation expense had been recorded for five officers compared to a total of 43,750 shares valued at $15,750 in stock compensation to the same five directors during the year ended February 28, 2022. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Feb. 28, 2023 | |
SUBSEQUENT EVENTS | |
Subsequent Events | NOTE 8 – SUBSEQUENT EVENTS In accordance with ASC 855-10, “Subsequent Events”, the Company has analyzed its operations subsequent to February 28, 2023 to May 10, 2023, 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. 28, 2023 | |
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. |
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 August 2020, the FASB issued ASU 2020-06, Debt — Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (“ASU 2020-06”). ASU 2020-06 simplifies the accounting for convertible debt by eliminating the beneficial conversion and cash conversion accounting models. Upon adoption of ASU 2020-06, convertible debt, unless issued with a substantial premium or an embedded conversion feature that is not clearly and closely related to the host contract, will no longer be allocated between debt and equity components. This modification will reduce the issue discount and result in less non-cash interest expense in financial statements. ASU 2020-06 also updates the earnings per share calculation and requires entities to assume share settlement when the convertible debt can be settled in cash or shares. For contracts in an entity’s own equity, the type of contracts primarily affected by ASU 2020-06 are freestanding and embedded features that are accounted for as derivatives under the current guidance due to a failure to meet the settlement assessment by removing the requirements to (i) consider whether the contract would be settled in registered shares, (ii) consider whether collateral is required to be posted, and (iii) assess shareholder rights. ASU 2020-06 is effective for fiscal years beginning after December 15, 2023. Early adoption is permitted, but only if adopted as of the beginning of such fiscal year. The Company is currently evaluating the impact that the standard will have on its unaudited condensed consolidated financial statements. In May 2021, the FASB issued ASU 2021-04, Earnings Per Share (Topic 260), Debt — Modifications and Extinguishments (Subtopic 470-50), Compensation — Stock Compensation (Topic 718), and Derivatives and Hedging — Contracts in Entity’s Own Equity (Subtopic 815-40): Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options (“ASU 2021-04”). ASU 2021-04 provides guidance as to how an issuer should account for a modification of the terms or conditions or an exchange of a freestanding equity-classified written call option (i.e., a warrant) that remains classified after modification or exchange as an exchange of the original instrument for a new instrument. An issuer should measure the effect of a modification or exchange as the difference between the fair value of the modified or exchanged warrant and the fair value of that warrant immediately before modification or exchange and then apply a recognition model that comprises four categories of transactions and the corresponding accounting treatment for each category (equity issuance, debt origination, debt modification, and modifications unrelated to equity issuance and debt origination or modification). ASU 2021-04 was effective for the Company’s fiscal years beginning September 1, 2022, including interim periods within those fiscal years. The Company concluded that the standard has no material impact on its unaudited condensed consolidated financial statements. |
Recent Accounting Pronouncements Not Yet Adopted | The Company has considered all recently issued accounting pronouncements and does not believe the adoption of such pronouncements will have a material impact on its consolidated financial statements. |
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 sales and estimated sales returns were recorded by the year end February 28, 2023 and February 28, 2022. Cost of Sales Cost of sales includes actual product cost, the cost of transportation to the Company’s distribution facilities. No cost of sales was recorded by the year end February 28, 2023 and February 28, 2022. Operating, Selling, General and Administrative Expenses Operating, selling, general and administrative expenses include all operating costs of the Company. 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. 28, 2023 | |
INCOME TAX | |
Loss Carry Forward | Year Ending February 28, 2023 Amount 2034 $ 54,197 2035 - 2036 539,420 2037 107,453 2038 118,828 2039 80,296 2040 49,514 2041 60,686 2042 42,060 2043 39,965 Total $ 1,092,419 |
Reconciliation Of The Tax Provision | 2023 2022 Tax provision at statutory rates $ (12,925 ) $ (12,770 ) Effect of permanent and temporary difference(s) 4,532 3,938 Change in valuation allowance 8,393 8,832 Provision for income tax $ - $ - |
GOING CONCERN (Details Narrativ
GOING CONCERN (Details Narrative) - USD ($) | Feb. 28, 2023 | Feb. 28, 2022 |
GOING CONCERN | ||
Working Capital Deficit | $ (1,229,548) | |
Accumulated Deficit | $ (3,718,579) | $ (3,657,034) |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) | 12 Months Ended | |
Feb. 28, 2023 | Feb. 28, 2022 | |
Loan Payable - Related Party | $ 632,072 | $ 591,942 |
Due To Related Party For Inventory Purchase And Accrued Service Fees | 47,643 | |
Mr Wang [Member] | ||
Annual Service Fee | $ 19,000 |
ACCRUED OFFICER COMPENSATION _2
ACCRUED OFFICER COMPENSATION AND STOCK COMPENSATION (Details Narrative) - USD ($) | 12 Months Ended | ||
Jan. 15, 2019 | Feb. 28, 2023 | Feb. 28, 2022 | |
Accrued Officer Compensation | $ 535,500 | $ 535,500 | |
Share Based Compensation Expense | 0 | 15,750 | |
President [Member] | |||
Accrued Officer Compensation | $ 535,500 | 535,500 | |
President [Member] | December 4, 2015 [Member] | Employment Agreement [Member] | |||
Term Of Agreement | 36 months | ||
Agreement Description | the agreement, Ms. Yan shall receive an annual salary of $100,500 and 100,000 shares of the Company’s common stock | ||
Five Directors [Member] | |||
Term Of Agreement | three years | ||
Shares Issuable Each Year As Compensations To Related Party | 500,000 | ||
Five Officers and Directors [Member] | |||
Shares Issuable Each Year As Compensations To Related Party | 500,000 | ||
Share Based Compensation Expense | $ 15,750 | $ 15,750 |
INCOME TAX (Details)
INCOME TAX (Details) | Feb. 28, 2023 USD ($) |
Total | $ 1,092,419 |
2039 | |
Total | 80,296 |
2040 | |
Total | 49,514 |
2041 | |
Total | 60,686 |
2042 | |
Total | 42,060 |
2043 | |
Total | 39,965 |
2034 | |
Total | 54,197 |
2035 | |
Total | 0 |
2036 | |
Total | 539,420 |
2037 | |
Total | 107,453 |
2038 | |
Total | $ 118,828 |
INCOME TAX (Details 1)
INCOME TAX (Details 1) - USD ($) | 12 Months Ended | |
Feb. 28, 2023 | Feb. 28, 2022 | |
INCOME TAX | ||
Tax provision at statutory rates | $ (12,925) | $ (12,770) |
Effect of permanent and temporary difference(s) | 4,532 | 3,938 |
Change in valuation allowance | 8,393 | 8,832 |
Provision for income tax | $ 0 | $ 0 |
INCOME TAX (Details Narrative)
INCOME TAX (Details Narrative) - USD ($) | 12 Months Ended | |
Feb. 28, 2023 | Feb. 28, 2022 | |
INCOME TAX | ||
Change In The Valuation Allowance | $ 8,393 | $ 8,832 |
Net Operating Loss Carryforward | 1,092,419 | |
Deferred Tax Assets | $ 4,532 | $ 3,938 |
Description Of Maturity Date For Income Tax | future taxable income, if any, and which expire in various years through 2043 |
STOCKHOLDERS DEFICIT (Details N
STOCKHOLDERS DEFICIT (Details Narrative) - USD ($) | 12 Months Ended | ||
Jan. 15, 2019 | Feb. 28, 2023 | Feb. 28, 2022 | |
Common Stock, Shares Authorized | 75,000,000 | 75,000,000 | |
Common Stock, Shares Par Value | $ 0.001 | $ 0.001 | |
Share Based Compensation Expense | $ 0 | $ 15,750 | |
Five Officers and Directors [Member] | |||
Shares Issuable Each Year As Compensations To Related Party | 500,000 | ||
Restricted Shares, Per Share Price | $ 0.036 | ||
Share Based Compensation Expense | $ 15,750 | $ 15,750 | |
Shares Issued For Stock Compensation, Shares | 0 | 43,750 |