UNITED STATES BASKETBALL LEAGUE, INC.

STATEMENT OF STOCKHOLDERS’ EQUITY (DEFICIT)

FOR THE THREE AND SIX MONTHS ENDED AUGUST 31, 2020 and 2021

(Unaudited)

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The accompanying notes are an integral part of these unaudited financial statements.

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UNITED STATES BASKETBALL LEAGUE, INC.

STATEMENTS OF CASH FLOWS

(Unaudited)

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The accompanying notes are an integral part of these unaudited financial statements.

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UNITED STATES BASKETBALL LEAGUE, INC.

NOTES TO FINANCIAL STATEMENTS

MAYAUGUST 31, 2021

(Unaudited)

NOTE 1 - ORGANIZATION AND DESCRIPTION OF BUSINESS

United States Basketball League, Inc. (“USBL”) is a holding company currently evaluating and assessing new business opportunities.  The Company was incorporated in Delaware on May 29, 1984 as a wholly owned subsidiary of Meisenheimer Capital, Inc. (“MCI”) for the purpose of developing and managing a professional basketball league, the United States Basketball League (the “League”). Since the inception of the League, USBL has primarily engaged in selling franchises and managing the League. From 1985 and up to the present time, USBL has sold a total of approximately forty active franchises (teams), a vast majority of which were terminated for non-payment of their respective franchise obligations. Seasons from 2008 through 2018, inclusive, have been cancelled.

On April 7, 2021, through a series of Stock Purchase Agreements (the “Purchase Agreements”), the majority owners of the Company, Richard C. Meisenheimer, Daniel T. Meisenheimer, III, James Meisenheimer, Meisenheimer Capital, Inc. and Spectrum Associates, Inc. (the “Sellers”) sold 2,704,007 common shares and 1,105,679 Series A Preferred Shares which it held to a new investor group.  In addition, the new investor group invested an additional $ 240,000 and received 2,400,000 shares of restricted common stock. As a result of the sale of common and preferred stock by the Sellers, the Company experienced a change in control.

World Equity Markets acted in the capacity of a broker/dealer for the Purchase Agreements and was issued 125,000 shares of common stock for its services, and Verde Capital was issued 150,000 shares for Consulting Services.  Effective April 7, 2021, the Board of Directors accepted the resignation of Daniel T. Meisenheimer, III as Chairman of the Board of Directors and President of the Company. Effective April 7, 2021, Saeb Jannoun was appointed to fill the vacancy following the resignation of Daniel T. Meisenheimer, III as Chairman of the Board of Directors and President of the Company.  Mr. Michael Pruitt also joined the Board.

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NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The accompanying unaudited financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission ("SEC"), and should be read in conjunction with the audited financial statements and notes thereto contained in the Company'sCompany’s latest Annual Report on Form 10-K filed with the SEC. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of the results of operations for the interim periods presented have been reflected herein. The results of operations for interim periods are not necessarily indicative of operations for the full year. Notes to the financial statements which would substantially duplicate the disclosures contained in the audited financial statements for the most recent fiscal year, as reported in the Form 10-K for the fiscal year ended February 28, 2021, have been omitted.

Use of Estimates

The preparation of the unaudited financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of liabilities, and the disclosure of contingent liabilities at the date of the financial statements, and the reported amounts of expenses during the reporting periods. Management makes these estimates using the best information available at the time; however, actual results could differ materially from those estimates.

Recently issued accounting pronouncements

In November 2019, the FASB issued ASU 2019-10, Financial Instruments—Credit Losses (Topic 326), Derivative and Hedging (Topic 815, and Leases (Topic 841). This new guidance will be effective for annual reporting periods beginning after December 15, 2019, including interim periods within those annual reporting periods. The adoption of  ASU 2019-10 does not have a material effect on its financial statements.

The Company has implemented all new accounting pronouncements that are in effect. These pronouncements did not have any material impact on the financial statements unless otherwise disclosed, and the Company does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.

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NOTE 3 – GOING CONCERN

The accompanying unaudited financial stat have been prepared assuming that the Company will continue as a going concern, which contemplates continuity of operations, realization of assets, and liquidation of liabilities in the normal course of business. As shown in the accompanying financial statements, the Company has an accumulated deficit of $5,138,472, liabilities of $38,950$5,344,295, and no source of revenue. Due to these conditions, it raises substantial doubt about the Company’s ability to continue as a going concern. The financial statements do not include any adjustments relating to the recoverability and classification of asset carrying amounts or the amount and classification of liabilities that may result should the Company be unable to continue as a going concern.

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NOTE 4 –ACCOUNTS PAYABLE AND ACCRUED EXPENSES

Accounts payable and accrued expenses consisted of:

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NOTE 5 – DUE TO PRIOR RELATED PARTIES

Due to related parties consist of:

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On April 7, 2021, as part of the purchase and sale agreement, the principals of MCI consisting of Daniel Meisenheimer III, Richard Meisenheimer and their affiliated entities have agreed to cancel previously issued and outstanding loans made to the Company.

Spectrum Associates agreed to cancel indebtedness in the amount of $1,318,789 and the principals (D. Meisenheimer III and R. Meisenheimer) and their other affiliates agreed to cancel indebtedness in the amount of $815,590.

As a result of the debt cancellation the Company recognized a gain on the forgiveness of debt of $66,747 and credited $2,335,493 to additional paid in capital.

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NOTE 6 – RELATED PARTY TRANSACTIONS

During the threesix months ended MayAugust 31, 2021, Saeb Jannoun, CEO advanced the Company $3,000 for general operating expense. The advance iswas non-interest bearing and due on demand.

On July 26, 2021, Mr. Jannoun converted the $3,000 into 30,000 shares of common stock. The shares were valued at $0.50, the closing stock price on the date of conversion, for a loss on conversion of debt of $12,000.

During the threesix months ended MayAugust 31, 2021, EROP Enterprises LLC (“EROP”), a significant shareholder, advanced the Company $13,344$28,870 for general operating expense. The advance iswas non-interest bearing and due on demand. On July 26, 2021, EROP converted the $28,870 into 288,700 shares of common stock. The shares were valued at $0.50, the closing stock price on the date of conversion, for a loss on conversion of debt of $115,480.

On April 7, 2021, the Company issued 200,000 restricted shares of common stock each to two2 of its directors for services. The shares were valued at $0.12, the closing stock price on the date of grant, for total non-cash expense of $48,000. As of May 31, 2021, the shares have not yet been issued by the transfer agent and have been credited to and disclosed as common stock to be issued.

During the threesix months ended MayAugust 31, 2021, EROP purchased 1,475,000 shares of common stock for $147,500. In addition, the Company granted 200,000 shares of common stock to EROP for services per the terms of a consulting agreement. The shares were valued at $0.52, the closing stock price on the date of grant, for total non-cash expense of $104,000. The expense is being amortized over the one-year term of the service agreement with Verde Capital, LLC. As of MayAugust 31, 2021, the shares have not yet been issued byCompany recognized $21,667 of the transfer agent and have been credited to and disclosed as common stock to be issued.expense.

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NOTE 7 – LOAN PAYABLE

During the threesix months ended MayAugust 31, 2021, an individual, advanced the Company $3,581 for general operating expenses. The advance iswas non-interest bearing and due on demand. The advance was repaid in July 2021.

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NOTE 8 – PREFERRED STOCK

On May 18, 2021, the Company increased its authorized shares of Preferred Stock from 2,000,000 to 10,000,000 shares.

Each share of preferred stock has five5 votes, is entitled to a 2% cumulative annual dividend, and is convertible at any time into one1 share of common stock. On May 18, 2021, the Company increased the authorized shares of Preferred from 2,000,000 to 10,000,000. There are 1,105,679 Series A Preferred outstanding. As of MayAugust 31, 2021, the Company has not declared any dividends on its preferred stock.

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NOTE 9 – COMMON STOCK TRANSACTIONS

On April 29, 2021, the Company issued 125,000 shares of common stock to World Equity Markets who acted in the capacity of a broker/dealer for the Purchase Agreements (Note 1). The shares were valued at $0.71, the closing stock price on the date of grant, for total non-cash expense of $88,750. The expense is being amortized over the six monthsix-month term of the service agreement with World Equity Markets. As of MayAugust 31, 2021, the Company recognized $14,792$59,167 of the expense. In addition, as of May 31, 2021, the shares have not yet been issued by the transfer agent and have been credited to and disclosed as common stock to be issued.

On April 6, 2021, the Company issued 150,000 shares of common stock to Verde Capital, LLC for consulting services. The shares were valued at $0.15, the closing stock price on the date of grant, for total non-cash expense of $22,500. The expense is being amortized over the one yearone-year term of the service agreement with Verde Capital, LLC. As of MayAugust 31, 2021, the Company recognized $3,750$8,438 of the expense. In addition, as of May 31, 2021, the shares have not yet been issued by the transfer agent and have been credited to and disclosed as common stock to be issued.

During the threesix months ended MayAugust 31, 2021, the Company sold 925,000 shares of common stock for total cash proceeds of $92,500.As of May 31, 2021, the shares have not yet been issued by the transfer agent and have been credited to and disclosed as common stock to be issued.

On May 18, 2021, the Company increased its authorized shares of Common Stock to 100,000,000 shares.

Refer to Note 6 for common stock issued to related parties.

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ITEM 2. Management’s Discussion and AnalysisMANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS of Operation.OF OPERATION.

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:

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

OVERVIEW

The Company anticipates continued relianceUnited States Basketball League, Inc. (OTC: USBL) is an emerging diversified investment vehicle focused on financial assistance from affiliates. Givenparticipating 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 current lackManagement, Advisors, and the Board of capital, the Company has not been able to develop anyare currently engaged in evaluating and assessing 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 its officers for all marketing efforts. Their efforts have not resulted in any franchises.business opportunities.

Results of Operations

The three months ended MayAugust 31, 2021compared to the three months ended MayAugust 31, 2020

Revenue

The Company recognized no revenue for the three months ended MayAugust 31, 2021 and 2020.

Professional Fees

For the three months ended MayAugust 31, 2021, the company incurred $12,025$247 of professional fees compared to $2,000 for the three months ended MayAugust 31, 2020, an increasea decrease of $10,025.$1,753. Professional fees generally consist of audit, legal, accounting and accountingtransfer agent fees expense. The increase in the current period is primarily the result

General and Administrative Expense

For the three months ended MayAugust 31, 2021, the company incurred $25,370$80,096 of general and administrative expense compared to $4,391$2,143 for the three months ended MayAugust 31, 2020 an increase of $20,979.$77,953. The increase in the current period is primarily the result of stock compensation of $18,542 as well as an increase of transfer agent fees.

$70,730.

Director Compensation

For the three months ended MayAugust 31, 2021, the company incurred $48,000 of director compensation expense compared to $0 for the three months ended MayAugust 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 IncomeIncome/Expense

During the three months ended MayAugust 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.

Net Loss

For the threesix months ended MayAugust 31, 2021, we had a note loss of $18,648$224,471 compared to $6,391$10,534 for the threesix months ended MayAugust 31, 2020. Our increase in net loss is largely attributed to non-cash stock compensation expense.

Liquidity and Capital Resources

Operating Activities

For the threesix months ended MayAugust 31, 2021, the company used $52,277$82,065 in operating activities compared to $94$237 for the threesix months ended MayAugust 31, 2020.

Financing Activities

During the threesix months ended MayAugust 31, 2021, we received $240,000 from the sale of common stock. The funds were being held in a trust account until they were transferred to the Company in June 2021. 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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ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

We are a smaller reporting company as defined by Rule 12b-2 of the Exchange Act and, as such, are not required to provide the information under this Item.

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ITEM 4. CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

Each of our principal executive and principal financial officer has evaluated the effectiveness of our disclosure controls and procedures, as defined in Rules 13a - 15(e)13a-15(e) and 15d - 15(e)15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), as of the end of the period covered by this quarterly report. Based on their evaluation, each such person concluded that our disclosure controls and procedures were not effective as of MayAugust 31, 2021.

In designing and evaluating disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable, not absolute assurance of achieving the desired objectives. Also, the design of a control system must reflect the fact that there are resource constraints and the benefits of controls must be considered relative to their costs.

Changes in Internal Control over Financial Reporting.

Our management has evaluated whether any change in our internal control over financial reporting occurred during the last fiscal quarter. Based on that evaluation, management concluded that there has been no change in our internal control over financial reporting during the relevant period that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

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PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

None

None​

ITEM 1A. RISK FACTORS

We are a smaller reporting company as defined by Rule 12b-2 of the Exchange Act and, as such, are not required to provide the information under this Item.

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ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

None.

None.​

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None

None​

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable

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ITEM 5. OTHER INFORMATION

None

None ​

ITEM 6. EXHIBITS

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SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

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Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

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