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 Daniel Meisenheimer, III and one other employee for all marketing efforts. Their efforts have not resulted in any franchises.





                                       3





Results of Operations

Year Ended February 29, 2020 Compared to the Year Ended February 28, 2019

For the years ended February 29, 2020 ("Fiscal 2020") and February 28, 2019 ("Fiscal 2019"), the Company had no franchise fees or advertising revenues as a result of the cancellation of its seasons since 2008.

Professional fees decreased $5,402 from $31,042 in Fiscal 2019 to $25,640 in Fiscal 2020. The decrease in professional fees is due to a decrease in audit fees.

General and administrative expense ("G&A") decreased $13,574 from $17,341 in Fiscal 2019 to $3,767 in Fiscal 2020. The decrease in G&A expense was primarily due a decrease in transfer agent fees, travel expense and other general operating expenses.

Net loss decreased $28,488 from $61,145 in Fiscal 2019 to $41,407 in Fiscal 2020.

Liquidity and Capital Resources

The Company's Fiscal 2020 statement of cash flows reflects net cash used in operating activities of $24,246, which is due primarily. Net cash provided by financing activities was $24,252, which is due to the net increase in amounts due to related parties.

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.

© Edgar Online, source Glimpses