Shorepower (SPEV) 10-Q 11 Mar 19 2018 Q3 Quarterly report Financial data

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