UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended ~~August 31,~~November 30, 2021

☐ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT

For the transition period from to

Commission File Number 001-15913

UNITED STATES BASKETBALL LEAGUE, INC.

(Exact Name of Registrant as Specified in Its Charter)

Delaware		06-1120072
(State or other jurisdiction of		(I.R.S. Employer
incorporation or organization)		Identification No.)

8270 Woodland Center, Tampa, FL 33614

(Address of Principal Executive Offices)

(813) 769-3500

(Registrant’s Telephone Number, Including Area Code)

(Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock	USBL	OTC Pink

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☐ No ☒

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (Section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☐ No ☒

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company”, and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐		Accelerated filer ☐
Non-accelerated filer ☒		Smaller reporting company ☒
Emerging Growth Company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act)~~.Yes~~ ☐ No ☒.

Indicate the number of shares outstanding of each of the issuer’s classes of common stock as of the latest practicable date. As of ~~October 7, 2021,~~January 10, 2022, there were 7,146,202 shares of Common Stock, $0.01 par value per share, outstanding.

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UNITED STATES BASKETBALL LEAGUE, INC.

Form 10-Q

For the Quarterly Period Ended ~~August 31,~~November 30, 2021

INDEX

Table of Contents

PART I

FINANCIAL INFORMATION

ITEM 1.FINANCIAL STATEMENTS.


Balance Sheets as of ~~August 31,~~November 30, 2021 (unaudited) and February 28, 2021	4

Statements of Operations for the Three and ~~Six~~Nine Months Ended ~~August 31,~~November 30, 2021 and 2020 (unaudited)	5

Statements of Stockholders’ Equity (Deficit) for the Three and ~~Six~~Nine Months Ended ~~August 31,~~November 30, 2021 and 2020 (unaudited)	46

Statements of Cash Flows for the ~~Six~~Nine Months Ended ~~August 31,~~November 30, 2021 and 2020 (unaudited)	58

Notes to the Financial Statements (unaudited)	69

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UNITED STATES BASKETBALL LEAGUE, INC.

BALANCE SHEETS

August 31,

February 28,

2021

2021

(unaudited)


ASSETS

Current Assets:




Cash

$
216,530

$
75
Prepaid

5,250

—
Prepaid stock for services

125,978

—
Total Assets

$
347,758

$
75

LIABILITIES AND STOCKHOLDERS' DEFICIT

Current Liabilities:

Accounts payable and accrued expenses

$
2,100

$
271,158
Credit card obligations

—

5,127
Due to related parties

—

2,159,631
Total Current Liabilities

2,100

2,435,916

Total Liabilities

2,100

2,435,916

Stockholders' Equity (Deficit):

Preferred stock, $0.01 par value, 10,000,000 shares authorized; 1,105,679 shares issued and outstanding

11,057

11,057
Common stock, $0.01 par value, 100,000,000 shares authorized; 7,146,202 and 3,552,502 shares issued, respectively

71,462

35,525
Additional paid-in capital

5,649,888

2,679,855
Accumulated deficit

(5,344,295)

(5,119,824)
Treasury stock, at cost; 39,975 shares of common stock

(42,454)

(42,454)
Total Stockholders' Equity (Deficit)

345,658

(2,435,841)
Total Liabilities and Stockholders' Deficit

$
347,758

$
75


	November 30,		February 28,
	2021		2021
	(unaudited)
ASSETS
Current Assets:
Cash	$	192,944	$	75
Accounts receivable - related party		5,000		—
Prepaid		3,236		—
Prepaid stock for services		64,770		—
Total Assets	$	265,950	$	75


LIABILITIES AND STOCKHOLDERS' DEFICIT

Current Liabilities:
Accounts payable and accrued expenses	$	8,163	$	271,158
Credit card obligations		—		5,127
Due to related parties		—		2,159,631
Total Current Liabilities		8,163		2,435,916

Total Liabilities		8,163		2,435,916

Stockholders' Equity (Deficit):
Preferred stock, $0.01 par value, 10,000,000 shares authorized; 1,105,679 shares issued and outstanding		11,057		11,057
Common stock, $0.01 par value, 100,000,000 shares authorized; 7,146,202 and 3,552,502 shares issued, respectively		71,462		35,525
Additional paid-in capital		5,649,888		2,679,855
Accumulated deficit		(5,432,166)		(5,119,824)
Treasury stock, at cost; 39,975 shares of common stock		(42,454)		(42,454)
Total Stockholders' Equity (Deficit)		257,787		(2,435,841)
Total Liabilities and Stockholders' Deficit	$	265,950	$	75

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

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UNITED STATES BASKETBALL LEAGUE, INC.

STATEMENTS OF OPERATIONS

(Unaudited)

For the Three Months Ended

For the Six Months Ended

August 31,

August 31,


2021

2020

2021

2020
Operating Expenses:

Professional fees

$
247

$
2,000

$
12,272

$
4,000
General and administrative

80,096

2,143

105,466

6,534
Director compensation

—

—

48,000

—
Total operating expenses

80,343

4,143

165,738

10,534

Loss from Operations

(80,343)

(4,143)

(165,738)

(10,534)

Other Income (Expense):

Gain on forgiveness of debt

—

—

66,747

—
Other income

2,000

—

2,000

—
Loss on conversion of debt – related party

(127,480)

—

(127,480)

—
Total other expense

(125,480)

—

(58,733)

—

Net loss

$
(205,823)

$
(4,143)

$
(224,471)

$
(10,534)

Loss per Common Share:






Basic & Diluted

$
(0.04)

$
(0.00)

$
(0.05)

$
(0.00)

Weighted Average Number of Common Shares Outstanding:






Basic & Diluted

5,211,993

3,552,502

4,386,782

3,552,502


	For the Three Months Ended				For the Nine Months Ended
	November 30,				November 30,
	2021		2020		2021		2020
Revenue – related party	$	5,000	$	—	$	5,000	$	—

Operating Expenses:
Professional fees	$	5,151	$	2,750	$	17,423	$	6,750
General and administrative		87,720		2,093		193,186		8,627
Director compensation		—		—		48,000		—
Total operating expenses		92,871		4,843		258,609		15,377

Loss from Operations		(87,871)		(4,843)		(253,609)		(15,377)

Other Income (Expense):
Gain on forgiveness of debt		—		—		66,747		—
Other income		—		—		2,000		—
Loss on conversion of debt – related party		—		—		(127,480)		—
Total other expense		—		—		(58,733)		—

Net loss	$	(87,871)	$	(4,843)	$	(312,342)	$	(15,377)

Loss per Common Share:
Basic & Diluted	$	(0.01)	$	(0.00)	$	(0.06)	$	(0.00)

Weighted Average Number of Common Shares Outstanding:
Basic & Diluted		7,146,202		3,552,502		5,303,232		3,552,502

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

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UNITED STATES BASKETBALL LEAGUE, INC.

STATEMENT OF STOCKHOLDERS’ EQUITY (DEFICIT)

FOR THE THREE AND ~~SIX~~NINE MONTHS ENDED ~~AUGUST 31,~~NOVEMBER 30, 2020 and 2021

(Unaudited)


	Common Stock			Preferred Stock			Additional		Accumulated		Treasury Stock					Common Stock			Preferred Stock			Additional		Accumulated		Treasury Stock
	Shares	Amount		Shares	Amount		Paid-in Capital		Deficit		Shares	Amount		Total		Shares	Amount		Shares	Amount		Paid-in Capital		Deficit		Shares	Amount		Total
Balance, February 29, 2020	3,552,502	$	35,525	1,105,679	$	11,057	$	2,679,855	$	(5,093,327)	39,975	$	(42,454)	$	(2,409,344)	3,552,502	$	35,525	1,105,679	$	11,057	$	2,679,855	$	(5,093,327)	39,975	$	(42,454)	$	(2,409,344)
Net Loss	—		—	—		—		—		(6,391)	—		—		(6,391)	0		0	0		0		0		(6,391)	0		0		(6,391)
Balance, May 31, 2020	3,552,502		35,525	1,105,679		11,057	$	2,679,855		(5,099,718)	39,975		(42,454)		(2,415,735)	3,552,502		35,525	1,105,679		11,057	$	2,679,855		(5,099,718)	39,975		(42,454)		(2,415,735)
Net Loss	—		—	—		—		—		(4,143)	—		—		(4,143)	0		0	0		0		0		(4,143)	0		0		(4,143)
Balance, August 31, 2020	3,552,502	$	35,525	1,105,679	$	11,057	$	2,679,855	$	(5,103,861)	39,975	$	(42,454)	$	(2,419,878)	3,552,502		35,525	1,105,679		11,057		2,679,855		(5,103,861)	39,975		(42,454)		(2,419,878)
Net Loss																0		0	0		0		0		(4,843)	0		0		(4,843)
Balance, November 30, 2020																3,552,502	$	35,525	1,105,679	$	11,057	$	2,679,855	$	(5,108,704)	39,975	$	(42,454)	$	(2,424,721)

~~Table of Contents~~

Common Stock

Preferred Stock

Common Stock

Additional

Accumulated

Treasury Stock


Shares

Amount

Shares

Amount

To be Issued

Paid-in Capital

Deficit

Shares

Amount

Total
Balance, February 28, 2021

3,552,502

$
35,525

1,105,679

$
11,057

$
—

$
2,679,855

$
(5,119,824)

39,975

$
(42,454)

$
(2,435,841)
Common stock issued for services

—

—

—

—

111,250

—

—

—

—

111,250
Common stock issued for director services

—

—

—

—

48,000

—

—

—

—

48,000
Common stock sold for cash

—

—

—

—

240,000

—

—

—

—

240,000
Forgiveness of related party debt

—

—

—

—

—

2,343,370

—

—

—

2,343,370
Net Loss

—

—

—

—

—

—

(18,648)

—

—

(18,648)
Balance, May 31, 2021

3,552,502

$
35,525

1,105,679

$
11,057

$
399,250

$
5,023,225

$
(5,138,472)

39,975

$
(42,454)

$
288,131
Common stock issued for services

875,000

8,750

—

—

(159,250)

254,500

—

—

—

104,000
Common stock sold for cash

2,400,000

24,000

—

—

(240,000)

216,000

—

—

—

—
Common stock issued for loans payable – related party

318,700

3,187

—

—

—

156,163

—

—

—

159,350
Net Loss

—

—

—

—

—

—

(205,823)

—

—

(205,823)
Balance, August 31, 2021

7,146,202

$
71,462

1,105,679

$
11,057

$
—

$
5,649,888

$
(5,344,295)

39,975

$
(42,454)

$
345,658


	Common Stock			Preferred Stock			Common Stock		Additional		Accumulated		Treasury Stock
	Shares	Amount		Shares	Amount		To be Issued		Paid-in Capital		Deficit		Shares	Amount		Total
Balance, February 28, 2021	3,552,502	$	35,525	1,105,679	$	11,057	$	—	$	2,679,855	$	(5,119,824)	39,975	$	(42,454)	$	(2,435,841)
Common stock issued for services	—		—	—		—		111,250		—		—	—		—		111,250
Common stock issued for director services	—		—	—		—		48,000		—		—	—		—		48,000
Common stock sold for cash	—		—	—		—		240,000		—		—	—		—		240,000
Forgiveness of related party debt	—		—	—		—		—		2,343,370		—	—		—		2,343,370
Net Loss	—		—	—		—		—		—		(18,648)	—		—		(18,648)
Balance, May 31, 2021	3,552,502	$	35,525	1,105,679	$	11,057	$	399,250	$	5,023,225	$	(5,138,472)	39,975	$	(42,454)	$	288,131
Common stock issued for services	875,000		8,750	—		—		(159,250)		254,500		—	—		—		104,000
Common stock sold for cash	2,400,000		24,000	—		—		(240,000)		216,000		—	—		—		—
Common stock issued for loans payable – related party	318,700		3,187	—		—		—		156,163		—	—		—		159,350
Net Loss	—		—	—		—		—		—		(205,823)	—		—		(205,823)
Balance, August 31, 2021	7,146,202		71,462	1,105,679		11,057		—		5,649,888		(5,344,295)	39,975		(42,454)		345,658
Net Loss	—		—	—		—		—		—		(87,871)	—		—		(87,871)
Balance, November 30, 2021	7,146,202	$	71,462	1,105,679	$	11,057	$	—	$	5,649,888	$	(5,432,166)	39,975	$	(42,454)	$	257,787

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)

For the Six Months Ended

August 31,


2021

2020
Cash Flows from Operating Activities:





Net loss

$
(224,471)

$
(10,534)
Adjustments to reconcile net loss to net cash used in operating activities:

Gain on forgiveness of debt

(66,747)

—
Loss on conversion of debt – related party

127,480

—
Common stock granted for director fees

48,000

—
Common stock granted for services

77,978

—
Changes in operating assets and liabilities:

Prepaids

6,044

—
Accounts payable and accrued expenses

(50,349)

10,297
Net cash used in operating activities

(82,065)

(237)

Cash Flows from Investing Activities

0

0

Cash Flows from Financing Activities:

Increase in due to related parties

58,520

—
Loans payable

3,581

—
Repayment of loan payable

(3,581)

—
Cash proceeds from sale of common stock

240,000

—
Net cash provided by financing activities

298,520

—

Net change in cash

216,455

(237)
Cash, beginning of period

75

301
Cash, end of period

$
216,530

$
64

Supplemental disclosures of cash flow information:

Interest paid

$
0

$
0
Income tax paid

$
0

$
0

Supplemental disclosure of non-cash financing activity:

Related party loans converted to common stock

$
31,870

$
—


	For the Nine Months Ended
	November 30,
	2021		2020
Cash Flows from Operating Activities:

Net loss	$	(312,342)	$	(15,377)
Adjustments to reconcile net loss to net cash used in operating activities:
Gain on forgiveness of debt		(66,747)		—
Loss on conversion of debt – related party		127,480		—
Common stock granted for director fees		48,000		—
Common stock granted for services		150,480		—
Changes in operating assets and liabilities:
Accounts receivable		(5,000)
Prepaids		(3,236)		—
Accounts payable and accrued expenses		(44,286)		14,297
Net cash used in operating activities		(105,651)		(1,080)

Cash Flows from Investing Activities		0		0

Cash Flows from Financing Activities:
Increase in due to related parties		58,520		—
Loans payable		3,581		—
Repayment of loan payable		(3,581)		—
Cash proceeds from sale of common stock		240,000		—
Net cash provided by financing activities		298,520		—

Net change in cash		192,869		(80)
Cash, beginning of period		75		301
Cash, end of period	$	192,944	$	221

Supplemental disclosures of cash flow information:
Interest paid	$	0	$	0
Income tax paid	$	0	$	0

Supplemental disclosure of non-cash financing activity:
Related party loans converted to common stock	$	31,870	$	—

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

~~AUGUST 31,~~NOVEMBER 30, 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. The Sellers also sold 1,105,644 of USBL’s preferred stock at a per share price of $.057 per share to EROP Enterprises, LLC. In addition, the new investor group invested an additional ~~$ 240,000~~$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.

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’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.

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Revenue Recognition

In 2014, the FASB issued guidance on revenue recognition (“ASC 606”), with final amendments issued in 2016. The underlying principle of ASC 606 is to recognize revenue to depict the transfer of goods or services to customers at the amount expected to be collected. ASC 606 creates a five-step model that requires entities to exercise judgment when considering the terms of contracts, which includes (1) identifying the contracts or agreements with a customer, (2) identifying our performance obligations in the contract or agreement, (3) determining the transaction price, (4) allocating the transaction price to the separate performance obligations, and (5) recognizing revenue as each performance obligation is satisfied. The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration it is entitled to in exchange for the services it transfers to its clients. The Company has concluded that the new guidance did not require any significant change to its revenue recognition processes.

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.

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 ~~$5,344,295,~~$5,432,166, and ~~no source~~few sources 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.

NOTE 4 –ACCOUNTS PAYABLE AND ACCRUED EXPENSES

Accounts payable and accrued expenses consisted of:


	August 31, 2021		February 28, 2021		November 30, 2021		February 28, 2021
	(unaudited)				(unaudited)
Legal and accounting services’ vendors	$	2,100	$	101,424	$	8,163	$	101,424
Transfer agent and EDGAR agent		—		8,660		—		8,660
Rent due Genvest, LLC (an entity controlled by the 2 officers of USBL)		—		144,000		—		144,000
Accrued interest on MCREH note payable to president of USBL		—		13,562		—		13,562
Security deposit due CADCOM (an entity controlled by the 2 officers of USBL)		—		2,725		—		2,725
Other		—		777		—		777
Total	$	2,100	$	271,158	$	8,163	$	271,158

710

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NOTE 5 – DUE TO PRIOR RELATED PARTIES

Due to related parties consist of:


	August 31, 2021		February 28, 2021		November 30, 2021		February 28, 2021
	(unaudited)				(unaudited)
USBL loans payable to Spectrum Associates, Inc. (“Spectrum”), a corporation controlled by the 2 officers of USBL, interest at 6%, due on demand	$	—	$	1,324,689	$	—	$	1,324,689
USBL loans payable to the 2 officers of USBL, interest at 6%, due on demand		—		569,317		—		569,317
USBL loans payable to Daniel T. Meisenheimer, Jr. Trust, a trust controlled by the 2 officers of USBL, non-interest bearing, due on demand		—		48,850		—		48,850
MCREH note payable to president of USBL, interest at 7%, due on demand		—		48,000		—		48,000
MCREH loan payable to Spectrum, non-interest bearing, due on demand		—		4,500		—		4,500
MCREH loan payable to president of USBL, non-interest bearing, due on demand		—		5,000		—		5,000
MCREH loan payable to Meisenheimer Capital, Inc., non-interest bearing, due on demand		—		159,275		—		159,275
Total	$	—	$	2,159,631	$	—	$	2,159,631

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.

NOTE 6 – RELATED PARTY TRANSACTIONS

During the ~~six~~nine months ended ~~August 31,~~November 30, 2021, Saeb Jannoun, CEO advanced the Company $3,000 for general operating expense. The advance was 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 ~~six~~nine months ended ~~August 31,~~November 30, 2021, EROP Enterprises LLC (“EROP”), a significant shareholder, advanced the Company $28,870 for general operating expense. The advance was 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 2 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.

During the ~~six~~nine months ended ~~August 31,~~November 30, 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 ~~August 31,~~November 30, 2021, the Company recognized ~~$21,667~~$47,667 of the expense.

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During the nine months ended November 30, 2021, the Company was engaged by a relative of a shareholder to provide consulting services. As of November 30, 2021, the Company has recorded $5,000 of consulting revenue and a receivable for services provided.

NOTE 7 – LOAN PAYABLE

During the ~~six~~nine months ended ~~August 31,~~November 30, 2021, an individual, advanced the Company $3,581 for general operating expenses. The advance was non-interest bearing and due on demand. The advance was repaid in July 2021.

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 5 votes, is entitled to a 2% cumulative annual dividend, and is convertible at any time into 1 share of common stock. There are 1,105,679 Series A Preferred ~~outstanding.~~outstanding, 1,105,644 of which are held by EROP. As of ~~August 31,~~November 30, 2021, the Company has not declared any dividends on its preferred stock.

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-month term of the service agreement with World Equity Markets. As of ~~August 31,~~November 30, 2021, the Company recognized ~~$59,167~~$88,750 of the expense.

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-year term of the service agreement with Verde Capital, LLC. As of ~~August 31,~~November 30, 2021, the Company recognized ~~$8,438~~$14,063 of the expense.

During the ~~six~~nine months ended ~~August 31,~~November 30, 2021, the Company sold ~~925,000~~2,400,000 shares of common stock for total cash proceeds of ~~$92,500.~~$240,000.

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 ANALYSIS OF FINANCIAL CONDITION AND RESULTS 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:

●

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 ~~August 31,~~November 30, 2021compared to the three months ended ~~August 31,~~November 30, 2020

Revenue

The Company recognized noconsulting revenue of $5,000 for the three months ended ~~August 31,~~November 30, 2021 ~~and~~compared to $0 for the three months ended November 30, 2020.

Professional Fees

For the three months ended ~~August 31,~~November 30, 2021, the company incurred ~~$247~~$5,151 of professional fees compared to ~~$2,000~~$2,750 for the three months ended ~~August 31,~~November 30, 2020, ~~a decrease~~an increase of ~~$1,753.~~$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 ~~August 31,~~November 30, 2021, the company incurred ~~$80,096~~$87,720 of general and administrative expense compared to ~~$2,143~~$2,093 for the three months ended ~~August 31,~~November 30, 2020 an increase of ~~$77,953.~~$85,627. The increase in the current period is primarily the result of stock compensation of ~~$70,730.~~$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 ~~three~~nine months ended ~~August 31,~~November 30, 2021, the company incurred $48,000 of director compensation expense compared to $0 for the ~~three~~nine months ended ~~August 31,~~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 ~~three~~nine months ended ~~August 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,~~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 ~~six~~nine months ended ~~August 31,~~November 30, 2021, we had a note loss of ~~$224,471~~$312,342 compared to ~~$10,534~~$15,377 for the ~~six~~nine months ended ~~August 31,~~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 ~~six~~nine months ended ~~August 31,~~November 30, 2021, the company used ~~$82,065~~$105,651 in operating activities compared to ~~$237~~$1,080 for the ~~six~~nine months ended ~~August 31,~~November 30, 2020.

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Financing Activities

During the ~~six~~nine months ended ~~August 31,~~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.

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.

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) and 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 ~~August 31,~~November 30, 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

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.

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

None.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable

ITEM 5. OTHER INFORMATION

None

ITEM 6. EXHIBITS


Exhibit No.		Description

31.1		Certification of the Chief Executive Officer and Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1		Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS		Inline XBRL Instance Document
101.SCH		Inline XBRL Taxonomy Extension Schema Document
101.CAL		Inline XBRL Taxonomy Calculation Linkbase Document
101.DEF		Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB		Inline XBRL Taxonomy Label Linkbase Document
101.PRE		Inline XBRL Taxonomy Presentation Linkbase Document
104		Cover Page Interactive Data File (formatted as Inline XBRL and contained in exhibit 101).

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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.


	UNITED STATES BASKETBALL LEAGUE, INC.

	/s/ Saeb Jannoun
	Saeb Jannoun
	Chairman and President
	~~October~~January 12, ~~2021~~2022

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.

1417


PART I	Financial Information
Item 1.	Financial Statements (unaudited)	3
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	1013
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	1215
Item 4.	Controls and Procedures	1215

PART II	Other Information	1316
Item 1.	Legal Proceedings	1316
Item 1A.	Risk Factors	1316
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	1316
Item 3.	Defaults Upon Senior Securities	1316
Item 4.	Mine Safety Disclosures	1316
Item 5.	Other Information	1316
Item 6.	Exhibits	1316
Signatures		1417


	August 31,		February 28,
	2021		2021
	(unaudited)
ASSETS
Current Assets:
Cash	$	216,530	$	75
Prepaid		5,250		—
Prepaid stock for services		125,978		—
Total Assets	$	347,758	$	75


LIABILITIES AND STOCKHOLDERS' DEFICIT

Current Liabilities:
Accounts payable and accrued expenses	$	2,100	$	271,158
Credit card obligations		—		5,127
Due to related parties		—		2,159,631
Total Current Liabilities		2,100		2,435,916

Total Liabilities		2,100		2,435,916

Stockholders' Equity (Deficit):
Preferred stock, $0.01 par value, 10,000,000 shares authorized; 1,105,679 shares issued and outstanding		11,057		11,057
Common stock, $0.01 par value, 100,000,000 shares authorized; 7,146,202 and 3,552,502 shares issued, respectively		71,462		35,525
Additional paid-in capital		5,649,888		2,679,855
Accumulated deficit		(5,344,295)		(5,119,824)
Treasury stock, at cost; 39,975 shares of common stock		(42,454)		(42,454)
Total Stockholders' Equity (Deficit)		345,658		(2,435,841)
Total Liabilities and Stockholders' Deficit	$	347,758	$	75


	For the Three Months Ended				For the Six Months Ended
	August 31,				August 31,
	2021		2020		2021		2020
Operating Expenses:
Professional fees	$	247	$	2,000	$	12,272	$	4,000
General and administrative		80,096		2,143		105,466		6,534
Director compensation		—		—		48,000		—
Total operating expenses		80,343		4,143		165,738		10,534

Loss from Operations		(80,343)		(4,143)		(165,738)		(10,534)

Other Income (Expense):
Gain on forgiveness of debt		—		—		66,747		—
Other income		2,000		—		2,000		—
Loss on conversion of debt – related party		(127,480)		—		(127,480)		—
Total other expense		(125,480)		—		(58,733)		—

Net loss	$	(205,823)	$	(4,143)	$	(224,471)	$	(10,534)

Loss per Common Share:
Basic & Diluted	$	(0.04)	$	(0.00)	$	(0.05)	$	(0.00)

Weighted Average Number of Common Shares Outstanding:
Basic & Diluted		5,211,993		3,552,502		4,386,782		3,552,502