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 28, 2021, Compared to the Year Ended February 29, 2020

For the years ended February 28, 2021 ("Fiscal 2021") and February 29, 2020 ("Fiscal 2020"), the Company recognized no revenue.

Operating Expenses

For the year ended February 28, 2021, the company incurred $26,497 of operating expense compared to $41,407 for the year ended February 29, 2020. In the prior year we incurred expense for rent and professional fees that we did not have in the current year.

Liquidity and Capital Resources

The Company's Fiscal 2021 statement of cash flows reflects net cash used in operating activities of $1,226, compared to $24,246 in the prior year.

For the year ended February 28, 2021, we received $1,000 from a related party compared to $24,252 in the prior year.

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.

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.





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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