Shorepower (SPEV) 10-Q 9 Oct 19 2019 Q1 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	3 Months Ended
	May 31, 2019	Aug. 10, 2018
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	May 31, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q1
Entity Registrant Name	UNITED STATES BASKETBALL LEAGUE INC
Entity Central Index Key	0000764630
Current Fiscal Year End Date	--02-28
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		3,512,527
Entity Current Reporting Status	Yes
Entity Emerging Growth Company	false
Entity Small Business	true
Entity Interactive Data Current	Yes

BALANCE SHEETS

BALANCE SHEETS - USD ($)	May 31, 2019	Feb. 28, 2019
CURRENT ASSETS:
Total current assets	$ 0	$ 295
Total assets	34	295
CURRENT LIABILITIES:
Accounts payable and accrued expenses	228,540	227,638
Credit card obligations	6,215	6,215
Due to related parties	2,140,739	2,134,379
Total current liabilities	2,375,134	2,368,232
Non-current liabilities	0	0
Total Liabilities	2,375,134	2,368,232
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	(5,059,083)	(5,051,920)
Treasury stock, at cost; 39,975 shares	(42,454)	(42,454)
Total stockholders' deficiency		(2,367,937)
Total liabilities and stockholders' deficiency	$ 34	$ 295

BALANCE SHEETS (Parenthetical)

BALANCE SHEETS (Parenthetical) - $ / shares	May 31, 2019	Feb. 28, 2019
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
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
	May 31, 2019	May 31, 2018
Income Statement [Abstract]
REVENUES:	$ 0	$ 0
OPERATING EXPENSES:
Professional fees	3,402	7,225
Transfer agent and EDGAR agent fees	659	7,881
Rent	3,000	3,000
Travel and promotion	0	33
Other	102	336
Total operating expenses	7,163	18,475
Loss from operations	(7,163)	(18,475)
OTHER INCOME (EXPENSES):
Interest expense	0	(175)
Total other income (expenses) - net	0	(175)
NET LOSS	$ (7,163)	$ (18,650)
Earnings (loss) per common share:
Basic	$ 0	$ 0
Diluted	$ 0	$ 0
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING
Basic	3,512,527	3,512,527
Diluted	3,512,527	3,512,527

Statement of Stockholders' Equi

Statement of Stockholders' Equity Deficiency	3 Months Ended
	May 31, 2019USD ($)shares
Common Stock [Member]
Balance	$ 35,525
Balance (in shares)	3,552,502
Net loss (Unaudited)	0
Balance	$ 35,525
Balance (in shares) | shares	3,552,502
Preferred Stock [Member]
Balance	$ 11,057
Balance (in shares)	1,105,679
Net loss (Unaudited)	0
Balance	$ 11,057
Balance (in shares) | shares	1,105,679
Additional Paid-in Capital [Member]
Balance	$ 2,679,855
Net loss (Unaudited)	0
Balance	2,679,855
Retained Earnings [Member]
Balance	(5,051,920)
Net loss (Unaudited)	(7,163)
Balance	(5,059,083)
Treasury Stock [Member]
Balance	(42,454)
Balance (in shares)	39,975
Net loss (Unaudited)	0
Balance	$ (42,454)
Balance (in shares) | shares	39,975
Balance	$ (2,367,937)
Net loss (Unaudited)	(7,163)
Balance	$ (2,375,100)

STATEMENTS OF CASH FLOWS

STATEMENTS OF CASH FLOWS - USD ($)	3 Months Ended
	May 31, 2019	May 31, 2018
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (7,163)	$ (18,650)
Change in operating assets and liabilities:
Accounts payable and accrued expenses	902	8,140
Credit card obligations	0	(280)
Net cash used in operating activities	(6,261)	(10,230)
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase (decrease) in due to related parties	6,000	9,900
Net cash provided by financing activities	6,000	9,900
NET INCREASE (DECREASE) IN CASH	(261)	(330)
CASH, beginning of period	295	330
CASH, end of period	34	0
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Interest paid	0	175
Income tax paid	$ 0	$ 0

Description of Business and Bas

Description of Business and Basis of Presentation	3 Months Ended
	May 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Business Description and Basis Of Presentation [Text Block]	UNITED STATES BASKETBALL LEAGUE, INC. NOTES TO FINANCIAL STATEMENTS THREE MONTHS ENDED MAY 31, 2019 (Unaudited) 3. 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 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 2019, 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 the sale of the property on June 19, 2014. At May 31, 2019, USBL had negative working capital of $2,375,100 and accumulated losses of $5,059,083. 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 three-month period ended May 31, 2019 may not necessarily be indicative of the results that may be expected for the year ending February 29, 2020. 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, 2019.

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	May 31, 2019
Accounting Policies [Abstract]
Significant Accounting Policies [Text Block]	3. Summary of Significant Accounting Policies Fair value disclosures – Cash and cash equivalents – Revenue recognition – Income taxes As of February 28, 2019, 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 2020 to 2039. 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 .” No stock options were granted for the periods presented and none are outstanding at May 31, 2019. Earnings (loss) per common 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 months ended May 31, 2019 and 2018 as the result would have been antidilutive. Comprehensive income

Accounts Payable and Accrued Ex

Accounts Payable and Accrued Expenses	3 Months Ended
	May 31, 2019
Payables and Accruals [Abstract]
Accounts Payable and Accrued Liabilities Disclosure [Text Block]	3. Accounts Payable and Accrued Expenses Accounts payable and accrued expenses consisted of: May 31, 2019 February 28, 2019 (Unaudited) Legal and accounting services’ vendors $ 67,013 $ 66,112 Transfer agent and EDGAR agent 9,462 12,462 Rent due Genvest, LLC (an entity controlled by the 135,000 132,000 Accrued interest on MCREH note payable to 13,562 13,562 Security deposit due CADCOM (an entity controlled by 2,725 2,725 Other 778 777 Total $ 228,540 $ 227,638

Due to Related Parties

Due to Related Parties	3 Months Ended
	May 31, 2019
Due to Related Parties [Abstract]
Due to Related Parties [Text Block]	4. Due to Related Parties Due to related parties consisted of: May 31, 2019 February 28, 2019 (Unaudited) USBL loans payable to Spectrum Associates, Inc. (“Spectrum”), $ 1,314,789 $ 1,314,289 USBL loans payable to the two officers of USBL, 563,517 558,017 USBL loans payable to Daniel T. Meisenheimer, Jr. Trust, a trust 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 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”) 159,723 159,723 Total $ 2,140,379 $ 2,134,379 For the three months ended May 31, 2019 and 2018, interest due under the related party loans was waived by the respective lenders.

Stockholders' Equity

Stockholders' Equity	3 Months Ended
	May 31, 2019
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% non-cumulative annual dividend, and is convertible at any time into one share of common stock.

Related Party Transactions

Related Party Transactions	3 Months Ended
	May 31, 2019
Related Party Transactions [Abstract]
Related Party Transactions [Text Block]	6. Related Party Transactions For the three months ended May 31, 2019 and 2018, USBL included in other operating expenses rent incurred to Genvest, LLC (an entity controlled by the two officers of USBL) totaling $3,000 and $3,000, respectively.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	May 31, 2019
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 commencing March 2008. At May 31, 2019 and February 28, 2019, accounts payable and accrued expenses included accrued rent payable to Genvest totaling $135,000 and $132,000 respectively.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	May 31, 2019
Accounting Policies [Abstract]
Fair Value Measurement, Policy [Policy Text Block]	Fair value disclosures – The carrying amounts of the Company’s financial instruments, which consist of cash and cash equivalents, accounts payable and accrued expenses, credit card obligations, and due to related parties, approximate their fair value due to their short term nature or based upon values of comparable instruments.
Cash and Cash Equivalents, Policy [Policy Text Block]	Cash and cash equivalents –
Revenue Recognition, Policy [Policy Text Block]	Revenue recognition –
Income Tax, Policy [Policy Text Block]	Income taxes As of February 28, 2019, 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 2020 to 2039. 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.
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 reporting 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 May 31, 2019.
Earnings Per Share, Policy [Policy Text Block]	Earnings (loss) per common 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 months ended May 31, 2019 and 2018 as the result would have been antidilutive.
Comprehensive Income Policy [Policy Text Block]	Comprehensive income

Accounts Payable and Accrued _2

Accounts Payable and Accrued Expenses (Tables)	3 Months Ended
	May 31, 2019
Payables and Accruals [Abstract]
Schedule of Accounts Payable and Accrued Liabilities [Table Text Block]	May 31, 2019 February 28, 2019 (Unaudited) Legal and accounting services’ vendors $ 67,013 $ 66,112 Transfer agent and EDGAR agent 9,462 12,462 Rent due Genvest, LLC (an entity controlled by the 135,000 132,000 Accrued interest on MCREH note payable to 13,562 13,562 Security deposit due CADCOM (an entity controlled by 2,725 2,725 Other 778 777 Total $ 228,540 $ 227,638

Due to Related Parties (Tables)

Due to Related Parties (Tables)	3 Months Ended
	May 31, 2019
Due to Related Parties [Abstract]
Due To Related Parties [Table Text Block]	May 31, 2019 February 28, 2019 (Unaudited) USBL loans payable to Spectrum Associates, Inc. (“Spectrum”), $ 1,314,789 $ 1,314,289 USBL loans payable to the two officers of USBL, 563,517 558,017 USBL loans payable to Daniel T. Meisenheimer, Jr. Trust, a trust 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 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”) 159,723 159,723 Total $ 2,140,379 $ 2,134,379 For the three months ended May 31, 2019 and 2018, interest due under the related party loans was waived by the respective lenders.

Description of Business and B_2

Description of Business and Basis of Presentation (Details Textual) - USD ($)	3 Months Ended
	May 31, 2019	Feb. 28, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Entity Incorporation, Date Of Incorporation	May 29, 1984
Working Capital Deficit	$ (2,375,100)
Accumulated losses	$ (5,059,083)	$ (5,051,920)

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Details Textual) - USD ($)	3 Months Ended		12 Months Ended
	May 31, 2019	May 31, 2018	Feb. 28, 2018	Feb. 28, 2019
Accounting Policies [Abstract]
Deferred Tax Assets, Valuation Allowance				$ 630,000
Operating Loss Carryforwards				$ 3,000,000
Operating Losses Carryforward Expiration Date			2020 to 2039
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	1,105,679	1,105,679

Accounts Payable and Accrued _3

Accounts Payable and Accrued Expenses (Details) - USD ($)	May 31, 2019	Feb. 28, 2019
Payables and Accruals [Abstract]
Legal and accounting services' vendors	$ 67,013	$ 66,112
Transfer agent and EDGAR agent	9,462	12,462
Rent due Genvest, LLC (an entity controlled by the two officers of USBL)	135,000	132,000
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	778	777
Total	$ 228,540	$ 227,638

Due to Related Parties (Details

Due to Related Parties (Details) - USD ($)	May 31, 2019	Feb. 28, 2019	Feb. 28, 2018
Related Party Transaction [Line Items]
Total	$ 2,140,379	$ 2,134,379
MCREH loan payable to Spectrum, non-interest bearing, due on demand [Member]
Related Party Transaction [Line Items]
Total	4,500		$ 4,500
Mcreh Loan Payable To Meisenheimer Capital Inc [Member]
Related Party Transaction [Line Items]
Total	159,723	159,723
Usbl Loans Payable To Daniel T Meisenheimer Jr Trust [Member]
Related Party Transaction [Line Items]
Total	48,850	48,850
Mcreh Note Payable To President Of Usbl [Member]
Related Party Transaction [Line Items]
Total	45,000	4,000
Usbl Loans Payable To Two Officers Of Usbl [Member]
Related Party Transaction [Line Items]
Total	563,517	558,017
Usbl Loans Payable To Spectrum Associates Inc Spectrum [Member]
Related Party Transaction [Line Items]
Total	1,314,789	1,314,289
Mcreh Loan Payable To President Of Usbl Interest Due On Demand [Member]
Related Party Transaction [Line Items]
Total	$ 4,000	$ 45,000

Due to Related Parties (Parenth

Due to Related Parties (Parenthetical) (Details)	May 31, 2019	Feb. 28, 2019
Usbl Loans Payable To Two Officers Of Usbl [Member]
Related Party Transaction [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	6.00%	6.00%
Usbl Loans Payable To Spectrum Associates Inc Spectrum [Member]
Related Party Transaction [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	6.00%	6.00%
Mcreh Note Payable To President Of Usbl [Member]
Related Party Transaction [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	7.00%	7.00%

Stockholders' Equity (Details T

Stockholders' Equity (Details Textual)	3 Months Ended
	May 31, 2019
Stockholders' Equity Note [Abstract]
Preferred Stock, Dividend Rate, Percentage	2.00%

Related Party Transactions (Det

Related Party Transactions (Details Textual) - USD ($)	3 Months Ended
	May 31, 2019	May 31, 2018
Genvest Llc [Member]
Related Party Transaction [Line Items]
Other Cost and Expense, Operating	$ 3,000	$ 3,000

Commitments and Contingencies (

Commitments and Contingencies (Details Textual) - USD ($)	1 Months Ended
	Mar. 31, 2008	May 31, 2019	Feb. 28, 2019
Occupancy Agreement [Member]
Loss Contingencies [Line Items]
Proceeds from Rents Received	$ 1,000
Genvest Llc [Member]
Loss Contingencies [Line Items]
Accrued Rent		$ 135,000	$ 132,000