Overview
It is anticipated that the Company will operate at a loss for the next twelve
months. The Company anticipates continued reliance on financial assistance from
affiliates. Given the current lack of capital, the Company has not been able to
develop any new programs to revitalize the League, nor has it been able to hire
sales and promotional personnel or schedule a season. As a result, the Company
is currently dependent on the efforts of
3 Results of Operations
Year Ended
For the years ended
Professional fees decreased
General and administrative expense ("G&A") decreased
Net loss decreased
Liquidity and Capital Resources
The Company's Fiscal 2020 statement of cash flows reflects net cash used in
operating activities of
The Company expects it will again have to rely on affiliates for loans to assist it in meeting its current obligations. With respect to long term needs, the Company recognizes that in order for the League and USBL to be successful, USBL has to develop a meaningful sales and promotional program. This will require an investment of additional capital. Given the Company's current financial condition, the ability of the Company to raise additional capital other than from affiliates is questionable. At the current time the Company has no definitive plan as to how to raise additional capital and schedule a 2020 season.
As indicated in the report of the independent registered public accounting firm, the financial statements referred to above have been prepared for the Company assuming that the Company will continue as a going concern. As discussed in Note 1 to the financial statements, the Company's present financial situation raises substantial doubt about its ability to continue as a going concern. Management's plans in regard to this matter are also described in Note 1. The financial statements do not include any adjustments relating to the recoverability and classification of recorded assets or the amounts or classification of liabilities that might be necessary in the event the Company cannot continue in existence.
Critical Accounting Policies
Refer to Note 2 of our financial statements contained elsewhere in this Form 10-K for a summary of our critical accounting policies and recently adopting and issued accounting standards.
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