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
For the three months ended November 30, 2022 compared to the three months ended
November 30, 2021
Revenue
The Company recognized consulting revenue of $0 for the three months ended
November 30, 2022, compared to $5,000 for the three months ended November 30,
2021.
Professional Fees
For the three months ended November 30, 2022, the company incurred $7,100 of
professional fees compared to $5,151 for the three months ended November 30,
2021, an increase of $1,949 or 37.8%. Professional fees generally consist of
audit, legal, accounting and transfer agent fees expense. In the current period
we had an increase to our accounting, audit fees and transfer agent fees.
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General and Administrative Expense
For the three months ended November 30, 2022, the company incurred $80,178 of
general and administrative expense ("G&A") compared to $87,720 for the three
months ended November 30, 2021, a decrease of $7,542 or 8.6%. The decrease in
mainly due to lower edgar fees and no travel expense.
Director Compensation
For the three months ended November 30, 2022, we issued shares of common stock
to our directors for services, incurring $202,500 of non-cash expense. We had no
director compensation in the prior period.
Other Income/Expense
We had no other income or expense for three months ended November 30, 2022 and
2021.
Net Loss
For the three months ended November 30, 2022, we had a net loss of $289,778
compared to $87,871 for the three months ended November 30, 2021, an increase of
$201,907. We had an increase of our net loss primarily due to the expense
incurred for common stock issued for services.
For the nine months ended November 30, 2022 compared to the nine months ended
November 30, 2021
Revenue
The Company recognized consulting revenue of $0 for the nine months ended
November 30, 2022, compared to $5,000 for the nine months ended November 30,
2021.
Professional Fees
For the nine months ended November 30, 2022, the company incurred $17,940 of
professional fees compared to $17,423 for the nine months ended November 30,
2021, an increase of $517 or 2.9%. Professional fees generally consist of audit,
legal, accounting and transfer agent fees expense.
General and Administrative Expense
For the nine months ended November 30, 2022, the company incurred $117,933 of
G&A expense compared to $193,186 for the nine months ended November 30, 2021, a
decrease of $75,253 or 39% In the prior period we incurred $50,722 more of
consulting expense for stock issued for services.
Director Compensation
For the nine months ended November 30, 2022, the company incurred $202,500 of
director compensation expense compared to $48,000 for the nine months ended
November 30, 2021. During the current period we issued shares of common stock to
our directors for services, incurring $202,500 of non-cash expense. During the
prior period we issued common stock to two of our directors for total non-cash
stock compensation of $48,000.
Other Income/Expense
We had no other income or expense for nine months ended November 30, 2022.
During the nine months ended November 30, 2021, we had total other expense of
$58,733. The Company recognized a related party loss on conversion of debt of
$127,480, $2,000 of other income and a gain on forgiveness of debt of $66,147.
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Net Loss
For the nine months ended November 30, 2022, we had a net loss of $338,373
compared to $312,342 for the nine months ended November 30, 2021. We had an
increase of our net loss mainly due to the added expense incurred for stock
issued for director services.
Liquidity and Capital Resources
Operating Activities
For the nine months ended November 30, 2022, the company used $47,073 of cash in
operating activities compared to $105,651 for the nine months ended November 30,
2021.
Financing Activities
During the nine months ended November 30, 2022, we neither received nor used any
funds for financing activities. During the nine months ended November 30, 2021,
we received $240,000 from the sale of common stock. We received a cash advance
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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SHOREPOWER TECHNOLOGIES INC. 