Shorepower (SPEV) 10-Q 28 Feb 18 2018 Q2 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	6 Months Ended
	Aug. 31, 2017	Feb. 28, 2018
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Aug. 31, 2017
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q2
Entity Registrant Name	UNITED STATES BASKETBALL LEAGUE INC
Entity Central Index Key	764,630
Current Fiscal Year End Date	--02-28
Entity Filer Category	Smaller Reporting Company
Trading Symbol	USBL
Entity Common Stock, Shares Outstanding		3,512,527

BALANCE SHEETS

BALANCE SHEETS - USD ($)	Aug. 31, 2017	Feb. 28, 2017
CURRENT ASSETS:
Cash	$ 949	$ 280
Total current assets	949	280
Total assets	949	280
CURRENT LIABILITIES:
Accounts payable and accrued expenses	202,315	191,792
Credit card obligations	5,304	6,741
Due to related parties	2,063,879	2,056,044
Total current liabilities	2,271,498	2,254,577
Total liabilities	2,271,498	2,254,577
STOCKHOLDERS’ DEFICIENCY
Common stock, $0.01 par value; 30,000,000 shares authorized; issued and outstanding 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	(4,954,532)	(4,938,280)
Treasury stock, at cost; 39,975 shares	(42,454)	(42,454)
Total stockholders’ deficiency	(2,270,549)	(2,254,297)
Total liabilities and stockholders’ deficiency	$ 949	$ 280

BALANCE SHEETS (Parenthetical)

BALANCE SHEETS (Parenthetical) - $ / shares	Aug. 31, 2017	Feb. 28, 2017
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

STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended		6 Months Ended
	Aug. 31, 2017	Aug. 31, 2016	Aug. 31, 2017	Aug. 31, 2016
REVENUES:	$ 0	$ 0	$ 0	$ 0
OPERATING EXPENSES:
Professional fees	2,500	4,521	3,550	17,378
Transfer agent and EDGAR agent fees	3,962	6,968	5,718	11,040
Rent	3,000	3,000	6,000	6,000
Travel and promotion	(12)	(39)	0	2,195
Depreciation	0	0	0	0
Other	96	821	521	1,450
Total operating expenses	9,546	15,271	15,789	38,063
Loss from operations	(9,546)	(15,271)	(15,789)	(38,063)
OTHER INCOME (EXPENSES):
Interest expense	(166)	(330)	(463)	(640)
Total other income (expenses), net	(166)	(330)	(463)	(640)
Loss before income taxes	(9,712)	(15,601)	(16,252)	(38,703)
Income taxes	0	0	0	0
NET LOSS	$ (9,712)	$ (15,601)	$ (16,252)	$ (38,703)
Earnings (loss) per common share:
Basic	$ 0	$ 0	$ 0	$ (0.01)
Diluted	$ 0	$ 0	$ 0	$ (0.01)
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

Statements of Stockholders' Equ

Statements of Stockholders' Equity Deficiency - 6 months ended Aug. 31, 2017 - USD ($)	Total	Common Stock	Preferred Stock	Additional Paid-in Capital	Deficit	Treasury Stock
Balance at Feb. 28, 2017	$ (2,254,297)	$ 35,525	$ 11,057	$ 2,679,855	$ (4,938,280)	$ (42,454)
Balance (in shares) at Feb. 28, 2017		3,552,502	1,105,679			39,975
Net (loss) (Unaudited)	(16,252)	$ 0	$ 0	0	(16,252)	$ 0
Balance at Aug. 31, 2017	$ (2,270,549)	$ 35,525	$ 11,057	$ 2,679,855	$ (4,954,532)	$ (42,454)
Balance (in shares) at Aug. 31, 2017		3,552,502	1,105,679			39,975

STATEMENTS OF CASH FLOWS

STATEMENTS OF CASH FLOWS - USD ($)	6 Months Ended
	Aug. 31, 2017	Aug. 31, 2016
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (16,252)	$ (38,703)
Changes in operating assets and liabilities:
Accounts payable and accrued expenses	10,523	9,794
Credit card obligations	(1,437)	866
Net cash used in operating activities	(7,166)	(28,043)
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase (decrease) in due to related parties	7,835	27,916
Net cash provided by financing activities	7,835	27,916
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	669	(127)
CASH, beginning of period	280	416
CASH, end of period	949	289
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Interest paid	463	330
Income tax paid	$ 0	$ 4,290

Description of Business and Bas

Description of Business and Basis of Presentation	6 Months Ended
	Aug. 31, 2017
Organization, Consolidation and Presentation Of Financial Statements [Abstract]
Business Description and Basis Of Presentation [Text Block]	1 . Description of Business and Basis of Presentation United States Basketball League, Inc. (“USBL”) was incorporated in Delaware on May 29, 1984 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 August 31, 2017, USBL had negative working capital of $ 2,270,549 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 six-month period ended August 31, 2017 may not necessarily be indicative of the results that may be expected for the year ending February 28, 2018. The notes to the 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, 2017.

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Aug. 31, 2017
Accounting Policies [Abstract]
Significant Accounting Policies [Text Block]	2 Summary of Significant Accounting Policies Fair value disclosures – Cash and cash equivalents - Revenue recognition - The Company generally uses the accrual method of accounting in these financial statements. However, due to the uncertainty of collecting royalty and franchise fees from the franchisees, USBL recorded these revenues upon receipt of cash consideration paid or the performance of related services by the franchisee. Franchise fees earned in nonmonetary transactions were recorded at the fair value of the franchise granted or the service received, based on which value was more readily determinable. Upon the granting of the franchise, the Company had performed essentially all material conditions related to the sale. Income taxes - 1,015,000 As of February 28, 2017, USBL had a net operating loss carryforward of approximately $ 2,900,000 USBL files Federal and Connecticut income tax returns using a December 31 fiscal year. The last returns were filed for the year ended December 31, 2015. Estimates – The preparation of 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 assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported period. Actual results could differ from those estimates. Stock-based compensation – Stock-based compensation is accounted for at fair value in accordance with Accounting Standards Codification (“ASC”) 718, “Compensation – Stock Compensation.” No stock options were granted for the periods presented and none are outstanding at August 31, 2017. Earnings (loss) per share – 1,105,679 Comprehensive income – Other comprehensive income (loss) refers to revenues, expenses, gains and losses that under generally accepted accounting principles are included in comprehensive income but are excluded from net income (loss) as these amounts are recorded directly as an adjustment to stockholders’ equity. Comprehensive income (loss) was equivalent to net income (loss) for all periods presented.

Accounts Payable and Accrued Ex

Accounts Payable and Accrued Expenses	6 Months Ended
	Aug. 31, 2017
Payables and Accruals [Abstract]
Accounts Payable and Accrued Liabilities Disclosure [Text Block]	Accounts Payable and Accrued Expenses August 31, February 28, 2017 2017 (Unaudited) Legal and accounting services’ vendors $ 55,630 $ 54,580 Transfer agent and EDGAR agent 11,986 8,143 Rent due Genvest, LLC (an entity controlled by the 114,000 108,000 Connecticut income taxes 3,664 3,664 Accrued interest on MCREH note payable to 13,562 13,562 Security deposit due CADCOM (an entity controlled by 2,725 2,725 Other 748 1,118 Total $ 202,315 $ 191,792

Due to Related Parties

Due to Related Parties	6 Months Ended
	Aug. 31, 2017
Due to Related Parties [Abstract]
Due to Related Parties [Text Block]	Due to Related Parties August 31, February 28, 2017 2017 (Unaudited) USBL loans payable to Spectrum Associates, Inc. (“Spectrum”), $ 1,278,289 $ 1,270,289 USBL loans payable to the two officers of USBL, 528,017 528,017 USBL loans payable to Daniel T. Meisenheimer, Jr. Trust, a trust 44,100 44,100 MCREH note payable to president of USBL, interest at 7%, 45,000 45,000 MCREH loan payable to Spectrum, non-interest bearing, 4,500 4,500 MCREH loan payable to president of USBL, non-interest 4,000 4,000 MCREH loan payable to Meisenheimer Capital, Inc. (“MCI”), 159,973 160,138 Total 2,063,879 2,056,044 For the six months ended August 31, 2017 and 2016, interest due under the related party loans was waived by the respective lenders.

Stockholders' Equity

Stockholders' Equity	6 Months Ended
	Aug. 31, 2017
Stockholders' Equity Note [Abstract]
Stockholders' Equity [Text Block]	5. Stockholders’ Equity Each share of common stock has one vote. Each share of preferred stock has five votes, is entitled to a 2

Related Party Transactions

Related Party Transactions	6 Months Ended
	Aug. 31, 2017
Related Party Transactions [Abstract]
Related Party Transactions [Text Block]	6. Related Party Transactions For the three months ended August 31, 2017 and 2016 and the six months ended August 31, 2017 and 2016, USBL included in operating expenses, rent incurred to Genvest, LLC (an entity controlled by the two officers of USBL) totaling $3,000, $3,000, $ 6,000 6,000

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Aug. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
Commitment and Contingencies [Text Block]	7. 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 $ 1,000 114,000 108,000

Summary of Significant Accoun14

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Aug. 31, 2017
Accounting Policies [Abstract]
Fair Value Measurement, Policy [Policy Text Block]	Fair value disclosures –
Cash and Cash Equivalents, Policy [Policy Text Block]	Cash and cash equivalents -
Revenue Recognition, Policy [Policy Text Block]	Revenue recognition - The Company generally uses the accrual method of accounting in these financial statements. However, due to the uncertainty of collecting royalty and franchise fees from the franchisees, USBL recorded these revenues upon receipt of cash consideration paid or the performance of related services by the franchisee. Franchise fees earned in nonmonetary transactions were recorded at the fair value of the franchise granted or the service received, based on which value was more readily determinable. Upon the granting of the franchise, the Company had performed essentially all material conditions related to the sale.
Income Tax, Policy [Policy Text Block]	Income taxes - 1,015,000 As of February 28, 2017, USBL had a net operating loss carryforward of approximately $ 2,900,000 USBL files Federal and Connecticut income tax returns using a December 31 fiscal year. The last returns were filed for the year ended December 31, 2015.
Use of Estimates, Policy [Policy Text Block]	Estimates – The preparation of 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 assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported period. Actual results could differ from those estimates.
Share-based Compensation, Option and Incentive Plans, Director Policy [Policy Text Block]	Stock-based compensation – Stock-based compensation is accounted for at fair value in accordance with Accounting Standards Codification (“ASC”) 718, “Compensation – Stock Compensation.” No stock options were granted for the periods presented and none are outstanding at August 31, 2017.
Earnings Per Share, Policy [Policy Text Block]	Earnings (loss) per share – 1,105,679
Comprehensive Income Policy [Policy Text Block]	Comprehensive income – Other comprehensive income (loss) refers to revenues, expenses, gains and losses that under generally accepted accounting principles are included in comprehensive income but are excluded from net income (loss) as these amounts are recorded directly as an adjustment to stockholders’ equity. Comprehensive income (loss) was equivalent to net income (loss) for all periods presented.

Accounts Payable and Accrued 15

Accounts Payable and Accrued Expenses (Tables)	6 Months Ended
	Aug. 31, 2017
Payables and Accruals [Abstract]
Schedule of Accounts Payable and Accrued Liabilities [Table Text Block]	Accounts payable and accrued expenses consisted of: August 31, February 28, 2017 2017 (Unaudited) Legal and accounting services’ vendors $ 55,630 $ 54,580 Transfer agent and EDGAR agent 11,986 8,143 Rent due Genvest, LLC (an entity controlled by the 114,000 108,000 Connecticut income taxes 3,664 3,664 Accrued interest on MCREH note payable to 13,562 13,562 Security deposit due CADCOM (an entity controlled by 2,725 2,725 Other 748 1,118 Total $ 202,315 $ 191,792

Due to Related Parties (Tables)

Due to Related Parties (Tables)	6 Months Ended
	Aug. 31, 2017
Due to Related Parties [Abstract]
Due To Related Parties [Table Text Block]	Due to related parties consists of: August 31, February 28, 2017 2017 (Unaudited) USBL loans payable to Spectrum Associates, Inc. (“Spectrum”), $ 1,278,289 $ 1,270,289 USBL loans payable to the two officers of USBL, 528,017 528,017 USBL loans payable to Daniel T. Meisenheimer, Jr. Trust, a trust 44,100 44,100 MCREH note payable to president of USBL, interest at 7%, 45,000 45,000 MCREH loan payable to Spectrum, non-interest bearing, 4,500 4,500 MCREH loan payable to president of USBL, non-interest 4,000 4,000 MCREH loan payable to Meisenheimer Capital, Inc. (“MCI”), 159,973 160,138 Total 2,063,879 2,056,044

Description of Business and B17

Description of Business and Basis of Presentation (Details Textual) - USD ($)	6 Months Ended
	Aug. 31, 2017	Feb. 28, 2017
Description Of Business And Basis Of Presentation [Line Items]
Entity Incorporation, Date Of Incorporation	May 29, 1984
Working Capital Deficit	$ 2,270,549
Accumulated losses	$ 4,954,532	$ 4,938,280

Summary of Significant Accoun18

Summary of Significant Accounting Policies (Details Textual) - USD ($)	3 Months Ended		6 Months Ended
	Aug. 31, 2017	Aug. 31, 2016	Aug. 31, 2017	Aug. 31, 2016	Feb. 28, 2017
Summary Of Significant Accounting Policies [Line Items]
Deferred Tax Assets, Valuation Allowance					$ 1,015,000
Operating Loss Carryforwards					$ 2,900,000
Operating Losses Carryforward Expiration Date			2019 to 2037
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	1,105,679	1,105,679	1,105,679	1,105,679

Accounts Payable and Accrued 19

Accounts Payable and Accrued Expenses (Details) - USD ($)	Aug. 31, 2017	Feb. 28, 2017
Accounts Payable and Accrued Expenses [Line Items]
Legal and accounting services’ vendors	$ 55,630	$ 54,580
Transfer agent and EDGAR agent	11,986	8,143
Rent due Genvest, LLC (an entity controlled by the two officers of USBL)	114,000	108,000
Connecticut income taxes	3,664	3,664
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	748	1,118
Total	$ 202,315	$ 191,792

Due to Related Parties (Details

Due to Related Parties (Details) - USD ($)	Aug. 31, 2017	Feb. 28, 2017
Related Party Transaction [Line Items]
Total	$ 2,063,879	$ 2,056,044
USBL loans payable to Spectrum Associates, Inc. (“Spectrum”), a corporation controlled by the two officers of USBL, interest at 6%, due on demand
Related Party Transaction [Line Items]
Total	1,278,289	1,270,289
USBL loans payable to the two officers of USBL, interest at 6%, due on demand
Related Party Transaction [Line Items]
Total	528,017	528,017
USBL loans payable to Daniel T. Meisenheimer, Jr. Trust, a trust controlled by the two officers of USBL, non-interest bearing, due on demand
Related Party Transaction [Line Items]
Total	44,100	44,100
MCREH note payable to president of USBL, interest at 7%, due on demand
Related Party Transaction [Line Items]
Total	45,000	45,000
MCREH loan payable to Spectrum, non-interest bearing, due on demand
Related Party Transaction [Line Items]
Total	4,500	4,500
MCREH loan payable to president of USBL, non-interest bearing, due on demand
Related Party Transaction [Line Items]
Total	4,000	4,000
MCREH loan payable to Meisenheimer Capital, Inc. (“MCI”), non-interest bearing, due on demand
Related Party Transaction [Line Items]
Total	$ 159,973	$ 160,138

Due to Related Parties (Parenth

Due to Related Parties (Parenthetical) (Details)	Aug. 31, 2017	Feb. 28, 2017
USBL loans payable to Spectrum Associates, Inc. (“Spectrum”), a corporation controlled by the two officers of USBL, interest at 6%, due on demand
Related Party Transaction [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	6.00%	6.00%
USBL loans payable to the two officers of USBL, interest at 6%, due on demand
Related Party Transaction [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	6.00%	6.00%
MCREH note payable to president of USBL, interest at 7%, due on demand
Related Party Transaction [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	7.00%	7.00%

Stockholders' Equity (Details T

Stockholders' Equity (Details Textual)	6 Months Ended
	Aug. 31, 2017
Class of Stock [Line Items]
Preferred Stock, Dividend Rate, Percentage	2.00%

Related Party Transactions (Det

Related Party Transactions (Details Textual) - USD ($)	3 Months Ended		6 Months Ended
	Aug. 31, 2017	Aug. 31, 2016	Aug. 31, 2017	Aug. 31, 2016
Genvest Llc [Member]
Related Party Transaction [Line Items]
Other Cost and Expense, Operating	$ 3,000	$ 3,000	$ 6,000	$ 6,000

Commitments and Contingencies (

Commitments and Contingencies (Details Textual) - USD ($)	1 Months Ended
	Mar. 31, 2008	Aug. 31, 2017	Feb. 28, 2017
Genvest Llc [Member]
Loss Contingencies [Line Items]
Accrued Rent		$ 114,000	$ 108,000
Occupancy Agreement [Member]
Loss Contingencies [Line Items]
Proceeds from Rents Received	$ 1,000