UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              Washington D.C. 20549

                                   FORM 10-QSB

(Mark One)

[X]      QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF THE SECURITIES
         EXCHANGE ACT OF 1934

                                    For the quarterly period ended May 31, 2006
                                                                   ------------

[  ]     TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT

                 For the transition period from               to
                                                -------------    --------------

                                                 Commission File Number 1-15913
                                                                        -------

                      UNITED STATES BASKETBALL LEAGUE, INC.
                      -------------------------------------
        (Exact Name of Small Business Issuer as Specified in Its Charter)


           Delaware                                             06-1120072
           --------                                             ----------
 (State or Other Jurisdiction of                             (I.R.S. Employer
 Incorporation or Organization)                           Identification Number)


                    46 Quirk Road, Milford, Connecticut 06460
                    -----------------------------------------
                    (Address of Principal Executive Offices)


                                 (203) 877-9508
                                 --------------
                (Issuer's Telephone Number, Including Area Code)


                          -----------------------------
         (Former Name, Former Address and Former Fiscal Year, if Changed
                               Since Last Report)


     Check  whether  the issuer (1) filed all  reports  required  to be filed by
Section 13 or 15 (d) of the  Exchange Act during the past 12 months (or for such
shorter period that the  registrant was required to file such reports),  and (2)
has been subject to such filing  requirements for the past 90 days. Yes[X] No[ ]

     Indicate  by check mark  whether  the  registrant  is a shell  company  (as
defined in Rule 12b-2 of the Exchange Act).                         Yes[ ] No[X]

     State the number of shares  outstanding of each of the issuer's  classes of
common equity as of the latest  practicable  date. As of July 20, 2006, there
were 3,482,527 shares of Common Stock, $.01 par value per share, outstanding.

     Transitional Small Business Disclosure Format (check one):     Yes[ ] No[X]


<PAGE>


                      UNITED STATES BASKETBALL LEAGUE, INC.
                                      INDEX


                                                                           PAGE
                                                                           ----

PART I.      FINANCIAL INFORMATION

Item 1.      Financial Statements.

             Consolidated Balance Sheets - May 31, 2006
             and February 28, 2006.............................................3

             Consolidated Statements of Operations for the
             three months Ended May 31, 2006 and 2005..........................4

             Consolidated Statement of Stockholders'
             Deficiency........................................................5

             Consolidated Statements of Cash Flows for the
             three months ended May 31, 2006 and 2005 .........................6

             Notes to Consolidated Financial Statements .......................7

Item 2.      Management's Discussion and Analysis or Plan of Operation  ......12

Item 3.      Controls and Procedures .........................................13

PART II.     OTHER INFORMATION ...............................................14

Item 6.      Exhibits and Reports on Form 8-K  ...............................14


                                       2

<PAGE>


                                     PART I
                              FINANCIAL INFORMATION

Item 1.  Financial Statements.
<TABLE>
<CAPTION>


              UNITED STATES BASKETBALL LEAGUE, INC. AND SUBSIDIARY
              ----------------------------------------------------
                           CONSOLIDATED BALANCE SHEETS
                           ---------------------------

                                                                             May 31,      February 28,
ASSETS                                                                        2006            2006
------                                                                   ------------     ------------
                                                                          (Unaudited)
<S>                                                                     <C>                <C>
CURRENT ASSETS:
         Cash and cash equivalents                                       $    (1,383)      $     5,517
         Marketable equity securities                                         56,739            47,404

         Inventory                                                             8,573             8,573

         Prepaid expenses and other current assets                               600               600
                                                                         -----------       -----------
Total current assets                                                          64,529            62,094


PROPERTY AND PLANT, NET                                                      261,472           262,770
                                                                         -----------       -----------
Total assets                                                             $   326,001       $   324,864
                                                                         ===========       ===========

LIABILITIES AND STOCKHOLDERS' DEFICIENCY
----------------------------------------

CURRENT LIABILITIES:
         Accounts payable and accrued expenses                           $    72,802       $    74,953
         Credit card obligations                                              94,675            88,967
         Due to related parties                                              749,360           758,644
         Current portion of mortgage payable                                  10,146             9,969
                                                                         -----------       -----------
Total current liabilities                                                    926,983           932,533
                                                                         -----------       -----------
Long-term portion of mortgage payable                                         82,131            84,754
                                                                         -----------       -----------
Total Liabilities                                                          1,009,114         1,017,287
                                                                         ===========       ===========
STOCKHOLDERS' DEFICIENCY
          Common stock, $0.01 par value; 30,000,000
            shares authorized; issued  and outstanding
            3,522,502 and 3,527,602, shares respectively                      35,225            35,276
          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                                       2,668,155         2,671,929
          Deficit                                                         (3,355,096)       (3,368,231)
          Treasury stock, at cost; 39,975 shares                             (42,454)          (42,454)
                                                                         -----------       -----------
Total stockholders' deficiency                                              (683,113)         (692,423)
                                                                        ------------       -----------

Total liabilities and stockholders' deficiency                          $    326,001       $   324,864
                                                                        ============       ===========
</TABLE>



See notes to consolidated financial statements.


                                       3


<PAGE>



              UNITED STATES BASKETBALL LEAGUE, INC. AND SUBSIDIARY
              ----------------------------------------------------
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                      -------------------------------------
                                   (Unaudited)
<TABLE>
<CAPTION>

                                                                                Three Months Ended
                                                                        -------------------------------
                                                                            May 31,            May 31,
                                                                             2006               2005
                                                                        ---------------    ------------
<S>                                                                     <C>                <C>
REVENUES:
         Initial franchise fees                                         $             -    $      5,000
         Continuing franchise fees                                               64,250          76,250
         Sponsorship/advertising                                                 70,000          55,000
         Other                                                                   14,415          14,100
                                                                        ---------------    ------------
                                                                                148,665         150,350
                                                                        ---------------    ------------

OPERATING EXPENSES:
         Consulting                                                              54,000          51,150
         Team and post-season festival expenses                                     276           2,509
         Referee fees                                                            17,746          22,890
         Salaries                                                                14,950          12,285
         Travel and promotion                                                    16,831          14,046
         Depreciation                                                             1,298           1,298
         Other                                                                   29,560          39,870
                                                                        ---------------    ------------
                                                                                134,661         144,048
                                                                        ---------------    ------------

Income (loss) from operations                                                    14,004           6,302
                                                                        ---------------    ------------

OTHER INCOME (EXPENSES):
          Net gain (loss) from marketable equity securities                       5,885         (10,490)
          Interest expense                                                       (6,835)         (2,800)
          Interest and dividend income                                               81              18
                                                                        ---------------    ------------
                                                                                 (  869)        (13,272)
                                                                        ---------------    ------------

NET INCOME (LOSS)                                                       $        13,135    $     (6,970)
                                                                        ===============    ============


Earnings (loss) per common share:
         Basic                                                          $          0.00    $      (0.00)
                                                                        ---------------    ------------
         Diluted                                                        $          0.00    $      (0.00)
                                                                        ---------------    ------------

WEIGHTED AVERAGE NUMBER OF
  COMMON SHARES OUTSTANDING
         Basic                                                                3,485,077       3,479,627
                                                                        ---------------    ------------
         Diluted                                                              4,590,756       3,479,627
                                                                        ---------------    ------------

</TABLE>


See notes to consolidated financial statements.


                                       4


<PAGE>


              UNITED STATES BASKETBALL LEAGUE, INC. AND SUBSIDIARY
              ----------------------------------------------------
               CONSOLIDATED STATEMENT OF STOCKHOLDERS' DEFICIENCY
               --------------------------------------------------
                                   (Unaudited)
                                    ---------

<TABLE>
<CAPTION>


                               Common Stock             Preferred Stock
                            ----------------------    ---------------------  Additional                              Total
                            Shares                    Shares                  Paid-in                   Treasury  Stockholders'
                            Outstanding    Amount     Outstanding   Amount    Capital       Deficit      Stock     Deficiency
                            ----------    --------    -----------  -------- -----------  ------------  ---------  ------------
<S>                          <C>          <C>          <C>         <C>       <C>         <C>            <C>       <C>

Balance February 28, 2006    3,527,602    $ 35,276     1,105,679   $ 11,057  $2,671,929  $ (3,368,231)  $(42,454) $  (692,423)
Cancellation of Stock           (5,100)        (51)            -          -      (3,774)            -          -        3,825)
Net Income                                       -             -          -           -        13,135                  13,135
                            ----------    --------    -----------  --------  ----------  ------------  ---------  -----------
Balance May 31, 2006         3,522,502    $ 35,225     1,105,679   $ 11,057  $2,668,155  $ (3,355,096) $ (42,454) $  (683,113)
                            ==========    ========    ===========  ========  ==========  ============  =========  ===========

</TABLE>

See notes to consolidated financial statements.


                                       5


<PAGE>



              UNITED STATES BASKETBALL LEAGUE, INC. AND SUBSIDIARY
              ----------------------------------------------------
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                      -------------------------------------
                                   (Unaudited)


<TABLE>
<CAPTION>
                                                                                Three Months Ended
                                                                        --------------------------------
                                                                             May 31,            May 31,
                                                                              2006               2005
                                                                        -------------         ---------

<S>                                                                     <C>                   <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
         Net Income (loss)                                              $       13,135        $  (6,970)
                                                                        --------------        ---------
         Adjustments to reconcile net income(loss) to
          net cash provided by operating activities:

                  Depreciation                                                   1,298            1,298
                  Non-cash compensation                                         (3,825)               -

                        Change in operating assets and liabilities:
                        Marketable equity securities                            (9,335)          28,399
                        Accounts payable and accrued expenses                   (2,151)         (11,111)
                        Credit card obligations                                  5,708                -
                                                                        --------------        ---------
                                                                                (8,305)          18,586
                                                                        --------------        ---------
         Net cash provided by operating activities                               4,830           11,616
                                                                        --------------        ---------
CASH FLOWS FROM FINANCING ACTIVITIES:
         Loans from (Repayments to) related parties                             (9,284)           2,351
         Decrease in mortgage payable                                           (2,446)          (2,284)

                                                                        --------------        ---------
         Net cash provided by (used in) financing activities                   (11,730)              67
                                                                        --------------        ---------
NET INCREASE(DECREASE) IN CASH AND CASH EQUIVALENTS                             (6,900)          11,683
CASH AND CASH EQUIVALENTS, beginning of period                                   5,517            2,770
                                                                        --------------        ---------
CASH AND CASH EQUIVALENTS, end of period                                $       (1,383)       $  14,453
                                                                        --------------        ---------
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
               Interest paid                                            $        6,835        $   2,800
                                                                        --------------        ---------
               Income tax paid                                          $            -        $       -
                                                                        --------------        ---------

SCHEDULE OF NON-CASH TRANSACTION:
         Acquisition of marketable equity securities in exchange for
           increase in amount due to related party                      $            -        $  68,674
                                                                        --------------        ---------


</TABLE>


See notes to consolidated financial statements.


                                       6


<PAGE>


              UNITED STATES BASKETBALL LEAGUE, INC. AND SUBSIDIARY
              ----------------------------------------------------
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                   ------------------------------------------
                         THREE MONTHS ENDED MAY 31, 2006
                         -------------------------------
                                   (Unaudited)


1.   Description of Business and Basis of Presentation:
     -------------------------------------------------

     United States Basketball League, Inc. ("USBL"), incorporated in Delaware on
     May 29, 1984  operates a  professional  summer  basketball  league  through
     franchises  located  in the United  States.  Its  wholly  owned  subsidiary
     Meisenheimer Capital Real Estate Holdings, Inc. ("MCREH") owns a commercial
     building in Milford, Connecticut.

     At May 31, 2006, USBL and MCREH (collectively,  the "Company") had negative
     working capital of $862,454,  a stockholders'  deficiency of $683,113,  and
     accumulated  losses of  $3,355,096.  This factor,  as well as the Company's
     reliance on related parties (see Notes 5 and 8) create an uncertainty as to
     the USBL'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.  Because of
     the  uncertainties  surrounding  the ability of the Company to continue its
     operations,  there is  substantial  doubt  about the  Company's  ability to
     continue as a going concern.  The consolidated  financial statements do not
     include any adjustments  that might be necessary  should the USBL be unable
     to continue as a going concern.

     The  accompanying  unaudited  consolidated  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, 2006 may not  necessarily  be indicative of the results that may be
     expected  for  the  year  ending  February  28,  2007.  The  notes  to  the
     consolidated  financial  statements  should be read in conjunction with the
     notes to the consolidated  financial  statements contained in the Company's
     Form 10-KSB for the year ended February 28, 2006.

2.   Summary of Significant Accounting Policies:
     ------------------------------------------

     Principles  of  consolidation  - The  accompanying  consolidated  financial
     statements  include  the  accounts  of  USBL  and  MCREH.  All  significant
     intercompany accounts and transactions have been eliminated.

     Fair value  disclosures - The carrying  amounts of the Company's  financial
     instruments, which consist of cash and cash equivalents,  marketable equity
     securities, accounts payable and accrued expenses, credit card obligations,
     due to related parties and mortgage  payable,  approximate their fair value
     due to  their  short  term  nature  or  based  upon  values  of  comparable
     instruments.

     Cash and cash  equivalents  - The Company  considers all highly liquid debt
     instruments  purchased  with a maturity of three  months or less to be cash
     equivalents.

     Marketable equity securities - Marketable equity securities are recorded at
     fair value with


                                       7


<PAGE>


     unrealized  gains and losses  included in income.  Effective March 1, 2005,
     marketable  equity securities with a fair value of $68,674 were transferred
     to the Company from its affiliate  Meisenheimer  Capital,  Inc.  ("MCI") in
     exchange  for a $33,071  decrease  in the amount due from MCI and a $35,603
     increase  in  the  amount  due to  MCI.  The  Company  has  classified  its
     investment  in marketable  equity  securities  as trading  securities.  The
     change in net unrealized  holding gain (loss)  included in earnings for the
     three  months  ended  May 31,  2006 and 2005 was  $(5,264)  and  $(19,250),
     respectively.

     Inventory - Inventory consists of USBL trading cards,  basketball uniforms,
     sporting  equipment and printed  promotional  material and is stated at the
     lower of cost or market.  Certain  inventory  was obtained  through  barter
     transactions  whereby the USBL granted suppliers various  advertising space
     (print) and airtime  (television)  in return for the  supplier's  products.
     These  transactions  were  accounted  for based upon the fair values of the
     assets and services involved in the transactions.

     Depreciation  expense - Depreciation  is computed  using the  straight-line
     method over the building's estimated useful life (approximately 30 years).

     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,  the USBL
     records  these  revenues  upon  receipt of cash  consideration  paid or the
     performance of related services by the franchisee. Franchise fees earned in
     nonmonetary  transactions  are recorded at the fair value of the  franchise
     granted  or the  service  received,  based on which  value is more  readily
     determinable. Upon the granting of the franchise, the Company has performed
     essentially all material conditions related to the sale. The offering price
     of a new franchise at May 31, 2006 was $200,000.

     The Company  generates  advertising  revenue  from fees for arena  signage,
     tickets,  and program and year book advertising space.  Advertising revenue
     is recognized over the period that the advertising  space is made available
     to the user.

     Fees charged to teams to allow them to relocate are  recognized  as revenue
     upon  collection  of the fee.  Souvenir  sales,  which are generated on the
     Company's web site,  are recorded  upon shipment of the order.  Essentially
     all orders are paid by credit card.

     Income taxes - Deferred tax assets and liabilities are determined  based on
     differences  between  financial  reporting  and tax  bases  of  assets  and
     liabilities,  and are  measured  using the  enacted tax rates and laws that
     will be in effect when the differences are expected to reverse. A valuation
     allowance has been fully provided for the deferred tax asset (approximating
     $835,000) resulting from the net operating loss carryforward.

     As of May 31, 2006,  the Company had a net operating loss  carryforward  of
     approximately  $2,087,000  available to offset future taxable  income.  The
     carryforward  expires in varying  amounts  through year ended  February 28,
     2026.

     Estimates - The  preparation  of financial  statements in  conformity  with
     generally  accepted  accounting  principles  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.



                                       8

<PAGE>


     Advertising costs - Advertising costs are expensed as incurred.

     Stock-based  compensation  - Stock  compensation  is accounted  for at fair
     value  in  accordance  with  SFAS  No.  123  and  123(R),  "Accounting  for
     Stock-Based  Compensation."  No stock options were granted  during 2006 and
     2005 and none are outstanding at May 31, 2006.

     Earnings (loss) per share - SFAS No. 128, "Earnings Per Share", establishes
     standards  for computing and  presenting  earnings  (loss) per share (EPS).
     SFAS No. 128 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, 2005 as the result would have
     been antidilutive.

     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.

     Referee  fees - The  Company's  principal  obligation  under the  franchise
     agreements is to provide referees for the league.


3.   Property and Plant, Net

     Property and plant, net consists of:

                                          May 31,        February 28,
                                           2006            2006
                                        -----------      ----------
                                        (unaudited)

     Land                               $   121,253      $  121,253
     Building                               155,747         155,747
                                        -----------      ----------
     Total                                  277,000         277,000

     Accumulated depreciation               (15,528)       ( 14,230)
                                        -----------       ---------

     Property, net                      $   261,472      $  262,770
                                        ===========      ==========

     MCREH leases the property to USBL and to other tenants on a  month-to-month
     basis.  Rental  income from the other  tenants  (which is included in other
     revenues in the consolidated statements of operations) for the three months
     ended May 31, 2006 and 2005 was $13,200 and $13,200, respectively.

4.   Credit Card Obligations

     USBL uses credit  cards of related  parties to pay for  certain  travel and
     promotion  expenses.


                                       9


<PAGE>


     USBL  has  agreed  to pay  the  credit  card  balances,  including  related
     interest.  The credit card obligations bear interest at rates ranging up to
     30% and are due in monthly installments of principal and interest.

5.   Due to Related Parties

     Due to related parties consists of:

<TABLE>
<CAPTION>
                                                                         May 31,       February 28,
                                                                          2006            2006
                                                                      ------------     ------------
                                                                       Unaudited
<S>                                                                   <C>               <C>
Loans payable to Spectrum Associates, Inc. ("Spectrum"),
  a corporation controlled by the two officers of USBL,
  interest at 6%, due on demand                                       $    420,518      $   416,519
Loans payable to the two officers of USBL and their mother,
  interest at 6%, due on demand                                            247,297          256,076
Note payable to mother of the two officers of USBL,
  interest at 6%, due December 31, 2006                                     50,000           50,000
Due to MCI, due on demand                                                   31,545           36,049
                                                                      ------------      -----------
Total                                                                 $    749,360      $   758,644
                                                                      ============      ===========

</TABLE>


     For the three  months  ended May 31, 2006 and 2005,  certain  interest  due
     under these loans were waived by the respective lenders.


6.   Mortgage Payable

     The  mortgage  bears  interest  at 7.06% per  annum,  is payable in monthly
     installments  of principal  and interest of $1,362  through July 2008,  and
     provides for a balloon  payment of $69,373 in August 2008.  The mortgage is
     guaranteed by the Company's officers. Future maturities of the mortgage are
     as follows:

     Year Ending February 28,
     ------------------------
     2007                                               $ 7,523
     2008                                                10,697
     2009                                                74,057
                                                        -------
     TOTAL                                              $92,277
                                                        =======


7.   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.

8.   Related Party Transactions


     In the  three  months  ended  May 31,  2006  and  2005,  USBL  included  in
     continuing  franchise  fees  revenues  from  MCI of  $45,000  and  $45,000,
     respectively.

     In the three months ended May 31, 2006 and 2005, USBL received  advertising
     revenues from Spectrum


                                       10


<PAGE>


     totaling $70,000 and $55,000, respectively.

     In the three  months  ended May 31, 2006 and 2005,  MCREH  received  rental
     income from Cadcom,  Inc., a corporation  controlled by the two officers of
     USBL, totaling $12,000 and $12,000, respectively.

     In the  three  months  ended  May 31,  2006  and  2005,  USBL  included  in
     consulting fees expenses to MCI of $45,000 and $45,000, respectively.


                                       11


<PAGE>



Item 2.  Management's Discussion and Analysis or Plan of Operation.

OVERVIEW

     It is  anticipated  that the Company  will  continue  to rely on  financial
assistance from affiliates. The Meisenheimer family is fully committed to making
the  Company a  profitable  operation  and also  making the League a viable one.
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  additional
sales and promotional personnel. As a result, the Company is currently dependent
on the efforts of Daniel T.  Meisenheimer,  III and two other  employees for all
marketing efforts.  Their efforts have not resulted in any substantial  increase
in the number of franchises.  The NBA has established a developmental basketball
league known as the  National  Basketball  Developmental  League  ("NBDL").  The
Company  believes  that the  establishment  of this league,  consisting of eight
teams,  will have no effect on the  Company's  season,  since the NBDL season as
presently  constituted  runs  from  November  through  March.  Further,  nothing
prohibits  a NBDL player from  playing in the USBL.  Accordingly,  and as of the
present time,  the Company does not perceive the NBDL as a competitor.  However,
with the  establishment  of the  NBDL,  it is  unlikely  that,  at least for the
present time, the Company can develop any meaningful relationship with the NBA.

THREE MONTHS ENDED MAY 31, 2006 AS COMPARED TO MAY 31, 2005

     Aggregate franchise fees decreased to $64,250 for the first quarter of 2006
from $81,250 in the first quarter of 2005.  Sponsorship and advertising revenues
totaled  $70,000  during the first quarter of 2006 as compared to $55,000 in the
first  quarter  of  2005.  This  was due to an  increase  in  revenues  from the
Company's affiliate Spectrum Associates.  Approximately $127,000 and $112,000 of
the 2006 and 2005  first  quarter  revenues,  respectively,  were  derived  from
various related parties.

     Operating  expenses  decreased from $144,048 for the three months ended May
31, 2005 to $134,661 for the three months ended May 31, 2006. Operating expenses
for  each  of the  periods  included  management  fees  of  $45,000  to MCI  for
management services, including the services provided to the Company by Daniel T.
Meisenheimer,  III and Richard Meisenheimer.  The decrease in operating expenses
was primarily due to lower referee fees and other administrative costs.

     Interest  expense  increased  to $6,835 in 2006,  as  compared to $2,800 in
2005. The increase is a result of higher interest on credit card  obligations in
2006.

     Net income for the three  months ended May 31, 2006 was $13,135 as compared
to a $6,970 net loss for the three  months  ended May 31,  2005 due to a $16,375
improvement in performance from marketable equity securities.

LIQUIDITY AND CAPITAL RESOURCES

     The Company had a cash overdraft of $1,383 and a working capital deficit of
$862,454 at May 31, 2006.  The Company's  statement of cash flows  reflects cash
provided by operations of $4,830,  which results  primarily from the $13,135 net
income, offset partially by the $9,335 increase in marketable equity securities.
Net cash used in financing  activities  was $11,730 in 2006 compared to net cash
provided by financing  activities of $67 in 2005,  resulting  primarily from the
$9,284 repayment of loans due to related parties in 2006.

     The Company's  ability to generate cash flow from franchise royalty fees is
dependent on the financial stability of the individual  franchises  constituting
the League.  Each  franchise is confronted  with meeting its own fixed costs and
expenses,  which are primarily  paid from revenues  generated  from  attendance.
Experience  has shown that USBL is generally the last creditor to be paid by the
franchise. If attendance has been poor, USBL has from time to time only received
partial  payment and, in some cases,  no payments at all. The Company  estimates
that it requires at least $300,000 of working capital to sustain operations over
a 12-month period. Assuming that all of the teams pay their annual royalty fees,
this would amount to approximately $200,000.  However, the Company believes that
given prior  experience it is more  realistic to  anticipate  lower royalty fees
because  some of  these  teams  are  simply  not  able to


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<PAGE>

generate significant attendance at games. Accordingly,  if the Company is unable
to generate  additional  sales of  franchises  within the next 12 months it will
again have to rely on affiliates  for loans and revenues 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.  At the current time the Company has no definitive  plan as to how
to raise additional capital.

Item 3.    Controls and Procedures.

     Under  the  supervision  and  with  the  participation  of our  management,
including our principal executive and financial officers,  we have evaluated the
effectiveness  of the  design  and  operation  of our  disclosure  controls  and
procedures  as of May 31,  2006 and,  based on such  evaluation,  our  principal
executive  and  financial  officers  have  concluded  that  these  controls  and
procedures  are  effective.  There were no  significant  changes in our internal
control over financial  reporting that occurred during the quarter ended May 31,
2006 that has materially affected, or is reasonably likely to materially affect,
our internal control over financial reporting.

     Disclosure  controls and procedures  are our controls and other  procedures
that are designed to ensure that  information  required to be disclosed by us in
the  reports  that  we  file or  submit  under  the  Exchange  Act is  recorded,
processed,  summarized  and reported,  within the time periods  specified in the
Securities and Exchange  Commission's rules and forms.  Disclosure  controls and
procedures  include,  without  limitation,  controls and procedures  designed to
ensure that  information  required to be  disclosed by us in the reports that we
file under the Exchange Act is accumulated  and  communicated to our management,
including our principal  executive and financial  officers,  as  appropriate  to
allow timely decisions regarding required disclosures.

                                     PART II
                                OHER INFORMATION

Item 6.     Exhibits.

Exhibit No.:  Description:
-----------   -----------

31.1          Certification of principal executive officer

31.2          Certification of principal financial officer

32            Certification  pursuant to 18 U.S.C. Section 1350 adopted pursuant
              to Section 906 of the Sarbanes-Oxley Act of 2002


                                       13


<PAGE>


                                   SIGNATURES

     In accordance  with the  requirements  of the Exchange Act, the  registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.

                                     UNITED STATES BASKETBALL LEAGUE, INC.


                                     By: /s/Daniel T. Meisenheimer, III
                                         -------------------------------
                                         Daniel T. Meisenheimer, III
                                         Chairman and President

                                     By: /s/Richard C. Meisenheimer
                                         -------------------------------
                                         Richard C. Meisenheimer
                                         Chief Financial Officer  and
                                         Director

Date:  July 24, 2006


                                       14

<PAGE>


                                  EXHIBIT INDEX


Exhibit No.:  Description:
-----------   -----------

31.1          Certification of principal executive officer

31.2          Certification of principal financial officer

32            Certification  pursuant to 18 U.S.C. Section 1350 adopted pursuant
              to Section 906 of the Sarbanes-Oxley Act of 2002


                                       15