Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Nov. 30, 2018 | Mar. 07, 2019 | |
Document And Entity Information | ||
Entity Registrant Name | UNITED STATES BASKETBALL LEAGUE INC | |
Entity Central Index Key | 0000764630 | |
Document Type | 10-Q | |
Document Period End Date | Nov. 30, 2018 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --02-28 | |
Is Entity's Reporting Status Current? | Yes | |
Is Entity Emerging Growth Company? | false | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Common Stock, Shares Outstanding | 3,512,527 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2018 |
Balance Sheets (Unaudited)
Balance Sheets (Unaudited) - USD ($) | Nov. 30, 2018 | Feb. 28, 2018 |
CURRENT ASSETS: | ||
Cash | $ 55 | $ 330 |
Total current assets | 55 | 330 |
Total assets | 55 | 330 |
CURRENT LIABILITIES: | ||
Accounts payable and accrued expenses | 223,856 | 207,646 |
Credit card obligations | 6,215 | 5,347 |
Due to related parties | 2,131,379 | 2,094,129 |
Total current liabilities | 2,361,450 | 2,307,122 |
Total Liabilities | 2,361,450 | 2,307,122 |
STOCKHOLDERS’ DEFICIENCY | ||
Common stock, $0.01 par value; 30,000,000 shares authorized; issued 3,552,502 and 3,552,502 shares, respectively | 35,525 | 35,525 |
Preferred stock, $0.01 par value; 2,000,000 shares authorized; 1,105,679 shares issued and outstanding | 11,057 | 11,057 |
Additional paid-in-capital | 2,679,855 | 2,679,855 |
Deficit | (5,045,378) | (4,990,775) |
Treasury stock, at cost; 39,975 shares of common stock | (42,454) | (42,454) |
Total stockholders’ deficiency | (2,361,395) | (2,306,792) |
Total liabilities and stockholders’ deficiency | $ 55 | $ 330 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - $ / shares | Nov. 30, 2018 | Feb. 28, 2018 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 30,000,000 | 30,000,000 |
Common stock, shares issued | 3,552,502 | 3,552,502 |
Common stock, shares outstanding | 3,552,502 | 3,552,502 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 2,000,000 | 2,000,000 |
Preferred stock, shares issued | 1,105,679 | 1,105,679 |
Preferred stock, shares outstanding | 1,105,679 | 1,105,679 |
Treasury stock, shares | 39,975 | 39,975 |
Statements of Operations (Unaud
Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Nov. 30, 2018 | Nov. 30, 2017 | Nov. 30, 2018 | Nov. 30, 2017 | |
Income Statement [Abstract] | ||||
REVENUES: | $ 0 | $ 0 | $ 0 | $ 0 |
OPERATING EXPENSES: | ||||
Professional fees | 10,749 | 12,545 | 28,374 | 16,095 |
Transfer agent and EDGAR agent fees | 3,403 | 4,468 | 15,729 | 10,186 |
Rent | 3,000 | 3,000 | 9,000 | 9,000 |
Travel and promotion | 0 | 32 | 33 | 32 |
Other | 229 | 1,536 | 704 | 2,057 |
Total operating expenses | 17,381 | 21,581 | 53,840 | 37,370 |
Loss from operations | (17,381) | (21,581) | (53,840) | (37,370) |
OTHER INCOME (EXPENSES): | ||||
Interest expense | (588) | (233) | (763) | (696) |
Total other income (expenses), net | (588) | (233) | (763) | (696) |
Income (loss) before income taxes | (17,969) | (21,814) | (54,603) | (38,066) |
Income Taxes | 0 | 0 | 0 | 0 |
NET INCOME (LOSS) | $ (17,969) | $ (21,814) | $ (54,603) | $ (38,066) |
Earnings (loss) per common share: | ||||
Basic | $ (.01) | $ (.01) | $ (.02) | $ (.01) |
Diluted | $ (.01) | $ (.01) | $ (.02) | $ (.01) |
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING | ||||
Basic | 3,512,527 | 3,512,527 | 3,512,527 | 3,512,527 |
Diluted | 3,512,527 | 3,512,527 | 3,512,527 | 3,512,527 |
Statement of Shareholders' Equi
Statement of Shareholders' Equity (Unaudited) - 9 months ended Nov. 30, 2018 - USD ($) | Common Stock | Preferred Stock | Additional Paid-In Capital | Deficit | Treasury Stock | Total |
Beginning balance, shares at Feb. 28, 2018 | 3,552,502 | 1,105,679 | 39,975 | |||
Beginning balance, value at Feb. 28, 2018 | $ 35,525 | $ 11,057 | $ 2,679,855 | $ (4,990,775) | $ (42,454) | $ (2,306,792) |
Net loss/income | (54,603) | (54,603) | ||||
Ending balance, shares at Nov. 30, 2018 | 3,552,502 | 1,105,679 | 39,975 | |||
Ending balance, value at Nov. 30, 2018 | $ 35,525 | $ 11,057 | $ 2,679,855 | $ (5,045,378) | $ (42,454) | $ (2,361,395) |
Statements of Cash Flows (Unaud
Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Nov. 30, 2018 | Nov. 30, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (54,603) | $ (38,066) |
Changes in operating assets and liabilities: | ||
Accounts payable and accrued expenses | 16,210 | 6,873 |
Credit card obligations | 868 | (1,672) |
Net cash used in operating activities | (37,525) | (32,865) |
CASH FLOWS FROM INVESTING ACTIVITIES | 0 | 0 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Increase (decrease) in due to related parties | 37,250 | 32,585 |
Net cash provided by financing activities | 37,250 | 32,585 |
NET INCREASE (DECREASE) IN CASH | (275) | (280) |
CASH, beginning of period | 330 | 280 |
CASH, end of period | 55 | 0 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | ||
Interest paid | 763 | 696 |
Income tax paid | $ 0 | $ 0 |
Description of Business and Bas
Description of Business and Basis of Presentation | 9 Months Ended |
Nov. 30, 2018 | |
Accounting Policies [Abstract] | |
Description of Business and Basis of Presentation | Description of Business and Basis of Presentation United States Basketball League, Inc. (“USBL”), 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 been 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. The seasons from 2008 through 2018, inclusive, have been cancelled. At the present time, USBL does not have any definitive plans as to the scheduling of a new season. USBL is currently in the process of exploring certain strategic alternatives, including the possible sale of the League. On October 30, 2014, USBL dissolved its wholly-owned subsidiary, Meisenheimer Capital Real Estate Holdings, Inc. (“MCREH”). MCREH owned a commercial building in Milford, Connecticut until June 19, 2014. At November 30, 2018, USBL had negative working capital of $2,361,395, and accumulated losses of $5,045,378. These factors, as well as the Company’s reliance on related parties (see Notes 3, 4, and 6), raise substantial doubt as to the Company’s ability to continue as a going concern. The Company is making efforts to raise equity capital, revitalize the league and market new franchises. However, there can be no assurance that the Company will be successful in accomplishing its objectives. The financial statements do not include any adjustments that might be necessary should the Company be unable to continue as a going concern. The accompanying unaudited financial statements have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission. Accordingly, they may not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. In the opinion of management, the unaudited financial statements reflect all adjustments, which include only normal recurring adjustments, necessary for a fair presentation. Operating results for the nine-month period ended November 30, 2018 may not necessarily be indicative of the results that may be expected for the year ending February 28, 2019. The notes to the consolidated financial statements should be read in conjunction with the notes to the financial statements contained in the Company’s Form 10-K for the year ended February 28, 2018. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Nov. 30, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Fair value disclosures – Cash and cash equivalents - Revenue recognition - Income taxes As of February 28, 2018, USBL had a net operating loss carryforward of approximately $3,000,000 available to offset future taxable income. The carryforward expires in varying amounts from 2019 to 2038. Current United States income tax laws limit the amount of loss available to offset against future taxable income when a substantial change in ownership occurs. Therefore, the amount available to offset future taxable income may be limited. USBL files Federal and Connecticut income tax returns using a December 31 fiscal year. The last returns filed were for the year ended December 31, 2015. Estimates Stock-based compensation Earnings (loss) per share – ASC 260, “Earnings Per Share”, establishes standards for computing and presenting earnings (loss) per share (EPS). ASC 260 requires dual presentation of basic and diluted EPS. Basic EPS excludes dilution and is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if stock options or convertible securities were exercised or converted into common stock. The Company did not include the 1,105,679 shares of convertible preferred stock in its calculation of diluted loss per share for the three and nine months ended November 30, 2018 and 2017 as the result would have been antidilutive. Comprehensive income |
Accounts Payable and Accrued Ex
Accounts Payable and Accrued Expenses | 9 Months Ended |
Nov. 30, 2018 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Expenses | Accounts Payable and Accrued Expenses Accounts payable and accrued expenses consisted of: November 30, 2018 February 28, 2018 (Unaudited) Legal and accounting services’ vendors $ 63,444 $ 55,070 Transfer agent and EDGAR agent 14,345 14,217 Rent due Genvest, LLC (an entity controlled by the two officers of USBL) 129,000 120,000 Accrued interest on MCREH note payable to president of USBL 13,562 13,562 Security deposit due CADCOM (an entity controlled by the two officers of USBL) 2,725 2,725 Other 780 2,072 Total $ 223,856 $ 207,646 |
Due to Related Parties
Due to Related Parties | 9 Months Ended |
Nov. 30, 2018 | |
Debt Disclosure [Abstract] | |
Due to Related Parties | Due to Related Parties Due to related parties consist of: November 30, 2018 February 28, 2018 (Unaudited) USBL loans payable to Spectrum Associates, Inc. (“Spectrum”), a corporation controlled by the two officers of USBL, interest at 6%, due on demand $ 1,311,289 $ 1,297,789 USBL loans payable to the two officers of USBL, interest at 6%, due on demand 558,017 534,017 USBL loans payable to Daniel T. Meisenheimer, Jr. Trust, a trust controlled by the two 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 45,000 45,000 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 4,000 4,000 MCREH loan payable to Meisenheimer Capital, Inc. (“MCI”) non-interest bearing, due on demand 159,723 159,973 Total $ 2,131,379 $ 2,094,129 For the nine months ended November 30, 2018 and 2017, interest due under the related party loans was waived by the respective lenders. |
Stockholders_ Equity
Stockholders’ Equity | 9 Months Ended |
Nov. 30, 2018 | |
Equity [Abstract] | |
Stockholders Equity | Stockholders’ Equity Each share of common stock has one vote. Each share of preferred stock has five votes, is entitled to a 2% non-cumulative annual dividend, and is convertible at any time into one share of common stock. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Nov. 30, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions For the three months ended November 30, 2018 and 2017 and for the nine months ended November 30, 2018 and 2017, USBL included in other operating expenses, rent incurred to Genvest, LLC totaling $3,000, $3,000, $9,000 and $9,000, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Nov. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Occupancy Agreement In September 2007, the Company moved its office to a building owned by Genvest, LLC, an organization controlled by the two officers of USBL. Improvements to the Company’s space there were completed in February 2008. Pursuant to a verbal agreement, the Company is to pay Genvest monthly rentals of $1,000 commencing March 2008. At November 30, 2018 and February 28, 2018, accounts payable and accrued expenses included accrued rent payable to Genvest totaling $129,000 and $120,000, respectively. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Nov. 30, 2018 | |
Summary Of Significant Accounting Policies | |
Fair value disclosures | Fair value disclosures – |
Cash and Cash equivalents | Cash and cash equivalents - |
Revenue recognition | Revenue recognition - |
Income taxes | Income taxes As of February 28, 2018, USBL had a net operating loss carryforward of approximately $3,000,000 available to offset future taxable income. The carryforward expires in varying amounts from 2019 to 2038. Current United States income tax laws limit the amount of loss available to offset against future taxable income when a substantial change in ownership occurs. Therefore, the amount available to offset future taxable income may be limited. USBL files Federal and Connecticut income tax returns using a December 31 fiscal year. The last returns filed were for the year ended December 31, 2015. |
Estimates | Estimates |
Stock-based compensation | Stock-based compensation |
Earnings (loss) per share | Earnings (loss) per share – ASC 260, “Earnings Per Share”, establishes standards for computing and presenting earnings (loss) per share (EPS). ASC 260 requires dual presentation of basic and diluted EPS. Basic EPS excludes dilution and is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if stock options or convertible securities were exercised or converted into common stock. The Company did not include the 1,105,679 shares of convertible preferred stock in its calculation of diluted loss per share for the three and nine months ended November 30, 2018 and 2017 as the result would have been antidilutive. |
Comprehensive income | Comprehensive income |
Accounts Payable and Accrued _2
Accounts Payable and Accrued Expenses (Tables) | 9 Months Ended |
Nov. 30, 2018 | |
Payables and Accruals [Abstract] | |
Accounts payable and accrued expenses | November 30, 2018 February 28, 2018 (Unaudited) Legal and accounting services’ vendors $ 63,444 $ 55,070 Transfer agent and EDGAR agent 14,345 14,217 Rent due Genvest, LLC (an entity controlled by the two officers of USBL) 129,000 120,000 Accrued interest on MCREH note payable to president of USBL 13,562 13,562 Security deposit due CADCOM (an entity controlled by the two officers of USBL) 2,725 2,725 Other 780 2,072 Total $ 223,856 $ 207,646 |
Due to Related Parties (Tables)
Due to Related Parties (Tables) | 9 Months Ended |
Nov. 30, 2018 | |
Debt Disclosure [Abstract] | |
Due to related parties | Due to related parties consist of: November 30, 2018 February 28, 2018 (Unaudited) USBL loans payable to Spectrum Associates, Inc. (“Spectrum”), a corporation controlled by the two officers of USBL, interest at 6%, due on demand $ 1,311,289 $ 1,297,789 USBL loans payable to the two officers of USBL, interest at 6%, due on demand 558,017 534,017 USBL loans payable to Daniel T. Meisenheimer, Jr. Trust, a trust controlled by the two 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 45,000 45,000 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 4,000 4,000 MCREH loan payable to Meisenheimer Capital, Inc. (“MCI”) non-interest bearing, due on demand 159,723 159,973 Total $ 2,131,379 $ 2,094,129 |
Accounts Payable and Accrued _3
Accounts Payable and Accrued Expenses - Accounts payable and accrued expenses (Details) - USD ($) | Nov. 30, 2018 | Feb. 28, 2018 |
Payables and Accruals [Abstract] | ||
Legal and accounting services' vendors | $ 63,444 | $ 55,070 |
Transfer agent and EDGAR agent | 14,345 | 14,217 |
Rent due Genvest, LLC (an entity controlled by the two officers of USBL) | 129,000 | 120,000 |
Accrued interest on MCREH note payable to president of USBL | 13,562 | 13,562 |
Security deposit due CADCOM (an entity controlled by the two officers of USBL) | 2,725 | 2,725 |
Other | 780 | 2,072 |
Total | $ 223,856 | $ 207,646 |
Due to Related Parties - Due to
Due to Related Parties - Due to related parties (Details) - USD ($) | Nov. 30, 2018 | Feb. 28, 2018 |
USBL loans payable to Spectrum Associates, Inc. | ||
Total due to related parties | $ 1,311,289 | $ 1,297,789 |
USBL loans payable to two officers of USBL | ||
Total due to related parties | 558,017 | 534,017 |
USBL loans payable to Daniel T. Meisenheimer Jr. Trust | ||
Total due to related parties | 48,850 | 48,850 |
MCREH note payable to president of USBL | ||
Total due to related parties | 45,000 | 45,000 |
MCREH note payable to Spetrum | ||
Total due to related parties | 4,500 | 4,500 |
MCREH loan payable to president of USBL | ||
Total due to related parties | 4,000 | 4,000 |
MCREH loan payable to Meisenheimer Capital, Inc. | ||
Total due to related parties | $ 159,723 | $ 159,973 |
Description of Business and B_2
Description of Business and Basis of Presentation (Details Narrative) - USD ($) | 9 Months Ended | |
Nov. 30, 2018 | Feb. 28, 2018 | |
Accounting Policies [Abstract] | ||
Entity Incorporation, Date Of Incorporation | May 29, 1984 | |
Working Capital Deficit | $ 2,343,426 | |
Accumulated losses | $ 5,045,378 | $ 4,990,775 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details Narrative) - USD ($) | Nov. 30, 2018 | Feb. 28, 2018 | Nov. 30, 2017 |
Accounting Policies [Abstract] | |||
Deferred Tax Assets, Valuation Allowance | $ 630,000 | ||
Operating Loss Carryforwards | $ 3,000,000 | ||
Convertible preferred stock | 1,105,679 | 1,105,679 |
Stockholders_ Equity (Details N
Stockholders’ Equity (Details Narrative) | 9 Months Ended |
Nov. 30, 2018 | |
Equity [Abstract] | |
Preferred Stock, Dividend Rate, Percentage | 2.00% |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Nov. 30, 2018 | Nov. 30, 2017 | Nov. 30, 2018 | Nov. 30, 2017 | |
Related Party Transactions [Abstract] | ||||
Other Cost and Expense, Operating | $ 3,000 | $ 3,000 | $ 9,000 | $ 9,000 |
Commitments and Contingencies (
Commitments and Contingencies (Details Narrative) - Genvest, LLC - USD ($) | 1 Months Ended | ||
Mar. 30, 2018 | Nov. 30, 2018 | Feb. 28, 2018 | |
Monthly Rent | $ 1,000 | ||
Accrued Rent | $ 129,000 | $ 120,000 |