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 November 30, 2021compared to the three months ended
November 30, 2020
Revenue
The Company recognized consulting revenue of $5,000 for the three months ended
November 30, 2021 compared to $0 for the three months ended November 30, 2020.
Professional Fees
For the three months ended November 30, 2021, the company incurred $5,151 of
professional fees compared to $2,750 for the three months ended November 30,
2020, an increase of $2,401. Professional fees generally consist of audit,
legal, accounting and transfer agent fees expense. The increase in the current
period is due to an increase of legal fees.
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General and Administrative Expense
For the three months ended November 30, 2021, the company incurred $87,720 of
general and administrative expense compared to $2,093 for the three months ended
November 30, 2020 an increase of $85,627. The increase in the current period is
primarily the result of stock compensation of $61,208 and other fees related to
our SEC filings of $20,840.
Net Loss
For the three months ended November 30, 2021, we had a note loss of $87,871
compared to $4,843 for the three months ended November 30, 2020. Our increase in
net loss is largely attributed to non-cash stock compensation expense.
The nine months ended November 30, 2021compared to the nine months ended
November 30, 2020
Revenue
The Company recognized consulting revenue of $5,000 for the nine months ended
November 30, 2021 compared to $0 for the nine months ended November 30, 2020.
Professional Fees
For the nine months ended November 30, 2021, the company incurred $17,423 of
professional fees compared to $6,750 for the nine months ended November 30,
2020, an increase of $10,673. Professional fees generally consist of audit,
legal, accounting and transfer agent fees expense. The increase in the current
period is due to an increase of legal and transfer agent fees.
General and Administrative Expense
For the nine months ended November 30, 2021, the company incurred $193,186 of
general and administrative expense compared to $8,627 for the nine months ended
November 30, 2020 an increase of $184,559. The increase in the current period is
primarily the result of stock compensation of $150,480 and other fees related to
our SEC filings.
Director Compensation
For the nine months ended November 30, 2021, the company incurred $48,000 of
director compensation expense compared to $0 for the nine months ended November
30, 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 nine months ended November 30, 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.
Net Loss
For the nine months ended November 30, 2021, we had a note loss of $312,342
compared to $15,377 for the nine months ended November 30, 2020. Our increase in
net loss is largely attributed to non-cash stock compensation expense.
Liquidity and Capital Resources
Operating Activities
For the nine months ended November 30, 2021, the company used $105,651 in
operating activities compared to $1,080 for the nine months ended November 30,
2020.
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Financing Activities
During the nine months ended November 30, 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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