Jubilant Flame International, Ltd. (JFIL) is a pre-revenue shell-stage entity with no operating income, no tangible fixed assets, and no inventory on the balance sheet as of February 28, 2026. Under a liquidation lens, the recovery posture is deeply negative and structurally unchanged from the prior period. Total assets are $16,190, consisting entirely of $4,175 cash (100% recoverable) and $12,015 prepaid expenses (zero liquidation value — prepaid OTC Markets fees have no third-party realizable value). Against these, total liabilities stand at $1,436,282, all classified as current and carried at face value. Applying the liquidation framework yields an estimated recovery to equity of approximately negative $1.43 million, consistent with MFFAIS's reported CLV/LLV/OLV of negative $1,432,107. The working capital deficit widened from $1,356,585 (February 28, 2025) to $1,420,092 (February 28, 2026), a deterioration of $63,507, equal to the full-year net loss — meaning no balance sheet improvement occurred outside of the operating burn rate. The liability stack is dominated by three items: (1) loan payable to related party (CEO Yan Li) of $815,635, non-interest bearing, due on demand, unsecured — this increased $52,211 year-over-year as the CEO's advances are the sole source of operating funding; (2) accrued officer compensation of $535,500, frozen in place since prior periods; and (3) accounts payable to related parties of $47,643, unchanged since at least fiscal year 2020 when the underlying inventory was sold. There are no third-party debt instruments, no operating leases, no PP&E, no goodwill, and no pension obligations. The entity has generated zero revenue for at least two consecutive fiscal years. The accumulated deficit is $3,909,123. A full valuation allowance of $267,548 offsets the gross deferred tax asset arising from $1,274,038 in NOL carryforwards, confirming no tax asset recovery. The auditor (WWC, P.C., a new engagement as of 2026; prior year audited by KCCW Accountancy Corp.) issued a going concern emphasis paragraph. Management's sole mitigation plan is continued CEO advances. The filing discusses accrued officer compensation obligations in MD&A and the notes but the company-specific tag used (AccruedBonusesCurrent) is a standard us-gaap tag applied to what is structurally a deferred salary liability — worth noting as a potential misclassification but not separately tagged under a more precise concept. No change in share count occurred. Internal controls are disclosed as ineffective.
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