Forward-looking Statements
There are "forward-looking statements" contained in this quarterly report. All
statements that express expectations, estimates, forecasts or projections are
forward-looking statements. In addition, other written or oral statements which
constitute forward-looking statements may be made by us or on our behalf. Words
such as "expect," "anticipate," "intend," "plan," "believe," "seek," "estimate,"
"project," "forecast," "may," "should," and variations of such words and similar
expressions are intended to identify such forward-looking statements. These
statements are not guarantees of future performance and involve risks,
uncertainties and assumptions which are difficult to predict. Therefore, actual
outcomes and results may differ materially from what is expressed or forecasted
in or suggested by such forward-looking statements. We undertake no obligation
to update or revise any of the forward-looking statements after the date of this
quarterly report to conform forward-looking statements to actual results.
Important factors on which such statements are based are assumptions concerning
uncertainties, including but not limited to, uncertainties associated with the
following:
? Inadequate capital and barriers to raising the additional capital or to
obtaining the financing needed to implement our business plans;
? Our failure to earn revenues or profits;
? Inadequate capital to continue business;
? Volatility or decline of our stock price;
? Potential fluctuation in quarterly results;
? Rapid and significant changes in markets;
? Litigation with or legal claims and allegations by outside parties; and
? Insufficient revenues to cover operating costs.
The following discussion should be read in conjunction with the financial
statements and the notes thereto which are included in this quarterly report.
This discussion contains forward-looking statements that involve risks,
uncertainties and assumptions. Our actual results may differ substantially from
those anticipated in any forward-looking statements included in this discussion
as a result of various factors.
OVERVIEW
United States Basketball League, Inc. (OTC: USBL) is an emerging diversified
investment vehicle focused on participating in and acquiring interests that are
leading edge in their respective market niches, and that have expectations of
enhancing shareholder values. Based in Tampa, Florida, the Management, Advisors,
and the Board of the Company are currently engaged in evaluating and assessing
new business opportunities.
Results of Operations
The three months ended August 31, 2021compared to the three months ended August
31, 2020
Revenue
The Company recognized no revenue for the three months ended August 31, 2021 and
2020.
Professional Fees
For the three months ended August 31, 2021, the company incurred $247 of
professional fees compared to $2,000 for the three months ended August 31, 2020,
a decrease of $1,753. Professional fees generally consist of audit, legal,
accounting and transfer agent fees expense.
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General and Administrative Expense
For the three months ended August 31, 2021, the company incurred $80,096 of
general and administrative expense compared to $2,143 for the three months ended
August 31, 2020 an increase of $77,953. The increase in the current period is
primarily the result of stock compensation of $70,730.
Director Compensation
For the three months ended August 31, 2021, the company incurred $48,000 of
director compensation expense compared to $0 for the three months ended August
31, 2020. During the current period we issued common stock to two of our
directors for total non-cash stock compensation of $48,000.
Other Income/Expense
During the three months ended August 31, 2021, the Company recognized a related
party loss on conversion of debt of $127,480 (Note 6) and $2,000 of other
income. There was no other income or expense in the prior period.
Net Loss
For the three months ended August 31, 2021, we had a note loss of $205,823
compared to $4,143 for the three months ended August 31, 2020. Our increase in
net loss is largely attributed to non-cash stock compensation expense.
The six months ended August 31, 2021compared to the six months ended August 31,
2020
Revenue
The Company recognized no revenue for the six months ended August 31, 2021 and
2020.
Professional Fees
For the six months ended August 31, 2021, the company incurred $12,272 of
professional fees compared to $4,000 for the six months ended August 31, 2020,
an increase of $8,272. Professional fees generally consist of audit, legal,
accounting and transfer agent fees expense.
General and Administrative Expense
For the six months ended August 31, 2021, the company incurred $105,466 of
general and administrative expense compared to $6,534 for the six months ended
August 31, 2020 an increase of $98,932. The increase in the current period is
primarily the result of stock compensation of $89,272.
Director Compensation
For the six months ended August 31, 2021, the company incurred $48,000 of
director compensation expense compared to $0 for the six months ended August 31,
2020. During the current period we issued common stock to two of our directors
for total non-cash stock compensation of $48,000.
Other Income/Expense
During the six months ended August 31, 2021, we recognized a gain of forgiveness
of debt of $66,747 (Note 5), related party loss on conversion of debt of
$127,480 (Note 6) and $2,000 of other income. There was no other income or
expense in the prior period.
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Net Loss
For the six months ended August 31, 2021, we had a note loss of $224,471
compared to $10,534 for the six months ended August 31, 2020. Our increase in
net loss is largely attributed to non-cash stock compensation expense.
Liquidity and Capital Resources
Operating Activities
For the six months ended August 31, 2021, the company used $82,065 in operating
activities compared to $237 for the six months ended August 31, 2020.
Financing Activities
During the six months ended August 31, 2021, we received $240,000 from the sale
of common stock. We received a cash advances from our CEO of $3,000, $28,870
from another related party and $39,994 from members of the prior management. We
also received $3,581 from another party to assist with general operating
expenses.
Off Balance Sheet Arrangements
We have no off-balance sheet arrangements that have or are reasonably likely to
have a current or future effect on our financial condition, changes in financial
condition, revenues or expenses, results of operations, liquidity, capital
expenditures or capital resources that are material to investors.
Critical Accounting Policies
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 the disclosure of contingent assets and liabilities of the date
of the financial statements and the reported amounts of revenues and expenses
during the reporting period. Note 2 to the Financial Statements describes the
significant accounting policies and methods used in the preparation of the
Financial Statements. Estimates are used for, but not limited to, contingencies
and taxes. Actual results could differ materially from those estimates. The
following critical accounting policies are impacted significantly by judgments,
assumptions, and estimates used in the preparation of the Financial Statements.
Recent Accounting Pronouncements
We have reviewed other recently issued accounting pronouncements and plan to
adopt those that are applicable to us. We do not expect the adoption of any
other pronouncements to have an impact on our results of operations or financial
position.
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