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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