Results of Operations

Year Ended February 28, 2022, Compared to the Year Ended February 29, 2021

Revenue

The Company recognized consulting revenue of $5,000 for the year ended February 28, 2022, compared to $0 for the year ended February 28, 2021.



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Professional Fees

For the year ended February 28, 2022, the company incurred $31,551 of professional fees compared to $13,750 for the year ended February 28, 2021, an increase of $17,801 or 129,.5%. Professional fees generally consist of audit, legal, accounting and transfer agent fees. The increase in the current year is due to an increase of legal, audit and transfer agent fees.

General and Administrative Expense

For the year ended February 28, 2022, the company incurred $229,484 of general and administrative expenses compared to $12,747 for the year ended February 28, 2021, an increase of $216,737. The increase in the current period is primarily the result of stock compensation of $183,042 and other fees related to our SEC filings.

Director Compensation

For the year ended February 28, 2022, the company incurred $48,000 of director compensation expense compared to $0 for the year ended February 28, 2021. 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 year ended February 28, 2022, we recognized a gain of forgiveness of debt of $55,270 (Note 5), related party loss on conversion of debt of $127,480 (Note 6), an expense of $1,699,145 related to the conversion of preferred stock and $2,000 of other income. There was no other income or expense in the prior period.

Net Loss

For the year ended February 28, 2022, we had a note loss of $2,073,390 compared to $26,497 for the year ended February 28, 2021. Our increase in net loss is largely attributed to non-cash stock compensation expense and the expense incurred with the conversion of preferred stock.

Liquidity and Capital Resources

Operating Activities

For the year ended February 28, 2022, the company used $117,989 in operating activities compared to $1,226 for the year ended February 28, 2021.

Financing Activities

During the year ended February 28, 2022, 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 $29,800 from members of the prior management. We also received $3,581 from another party to assist with general operating expenses.

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 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.

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 3 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 3. 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.


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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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