| x | QUARTERLY      REPORT UNDER SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF      1934 |
|---|----------------------------------------------------------------------------------------------|

|  ̈ | TRANSITION      REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE      ACT |
|--------|--------------------------------------------------------------------------------------|

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

----

| Large      accelerated filer                       |  ̈ |   | Accelerated      filer         |  ̈ |
|----------------------------------------------------|--------|--------|--------------------------------|--------|
| Non-accelerated      filer                         |  ̈ |   | Smaller      reporting company | x      |
| (Do      not check if a smaller reporting company) |   |   |                           |

----

|          |         |                                                                                                        |         | PAGE   |
|---------------|--------------|-------------------------------------------------------------------------------------------------------------|--------------|--------|
|          |         |                                                                                                        |         |   |
| PART      I.  |         | FINANCIAL      INFORMATION                                                                                  |         | 3      |
|          |         |                                                                                                        |         |   |
| Item      1.  |         | UNAUDITED      FINANCIAL STATEMENTS                                                                         |         | 3      |
|          |         |                                                                                                        |         |   |
|          |         | Consolidated      Balance Sheets – August 31, 2010 and February 28, 2010                              |         | 3      |
|          |         |                                                                                                        |         |   |
|          |         | Consolidated      Statements of Operations for the three and six months Ended August 31,      2010 and 2009 |         | 4      |
|          |         |                                                                                                        |         |   |
|          |         | Consolidated      Statement of Stockholders’ Deficiency                                               |         | 5      |
|          |         |                                                                                                        |         |   |
|          |         | Consolidated      Statements of Cash Flows for the six months ended August 31, 2010 and      2009           |         | 6      |
|          |         |                                                                                                        |         |   |
|          |         | Notes      to Consolidated Financial Statements                                                             |         | 7      |
|          |         |                                                                                                        |         |   |
| Item      2.  |         | Management’s      Discussion and Analysis of Financial Condition and Results of      Operation        |         | 12     |
|          |         |                                                                                                        |         |   |
| Item      3.  |         | Quantitative      and Qualitative Disclosures About Market Risk                                             |         | 13     |
|          |         |                                                                                                        |         |   |
| Item      4.  |         | Controls      and Procedures                                                                                |         | 14     |
|          |         |                                                                                                        |         |   |
| PART      II. |         | OTHER      INFORMATION                                                                                      |         | 14     |
|          |         |                                                                                                        |         |   |
| Item      6.  |    | Exhibits                                                                                                    |    | 14     |

----

| ITEM 1. | CONSOLIDATED      FINANCIAL STATEMENTS. |
|--------------|-----------------------------------------|

|                                                                                                                                       |   | August 31,2010 |       |   | February 28,2010 |   |
|--------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------|------------|--------|-----------------------|--------|
|                                                                                                                                       |   | (Unaudited)         |       |   |                  |   |
| ASSETS                                                                                                                                     |   |                |       |   |                  |   |
|                                                                                                                                       |   |                |       |   |                  |   |
| CURRENT      ASSETS:                                                                                                                       |   |                |       |   |                  |   |
| Cash      and cash equivalents                                                                                                             |   | $                   | 3,278      |   |                  | $      | 661 |   |
| Marketable      equity securities                                                                                                          |   |                | 172,521    |   |                  |   | 141,103 |   |
| Inventory                                                                                                                                  |   |                | 5,000      |   |                  |   | 5,000 |   |
| Due      from related parties                                                                                                              |   |                | 4,915      |   |                  |   | 113,814 |   |
| Total      current assets                                                                                                                  |   |                | 185,714    |   |                  |   | 260,578 |   |
|                                                                                                                                       |   |                |       |   |                  |   |   |   |
| PROPERTY,      NET                                                                                                                         |   |                | 239,406    |   |                  |   | 242,002 |   |
| Total      assets                                                                                                                          |   | $                   | 425,120    |   |                  | $      | 502,580 |   |
|                                                                                                                                       |   |                |       |   |                  |   |   |   |
| LIABILITIES AND STOCKHOLDERS’      DEFICIENCY                                                                                        |   |                |       |   |                  |   |   |   |
|                                                                                                                                       |   |                |       |   |                  |   |   |   |
| CURRENT      LIABILITIES:                                                                                                                  |   |                |       |   |                  |   |   |   |
| Accounts      payable and accrued expenses                                                                                                 |   | $                   | 125,731    |   |                  | $      | 114,816 |   |
| Due      in connection with South Korea venture                                                                                            |   |                | -          |   |                  |   | 20,000 |   |
|                                                                                                                                       |   |                |       |   |                  |   |   |   |
| Credit      card obligations                                                                                                               |   |                | 97,694     |   |                  |   | 96,711 |   |
| Due      to related parties                                                                                                                |   |                | 1,706,884  |   |                  |   | 1,655,840 |   |
|                                                                                                                                       |   |                |       |   |                  |   |   |   |
| Total      current liabilities                                                                                                             |   |                | 1,930,309  |   |                  |   | 1,887,367 |   |
| Due      to related parties, net of current portion                                                                                        |   |                | 50,000     |   |                  |   | 50,000 |   |
| Total      Liabilities                                                                                                                     |   |                | 1,980,309  |   |                  |   | 1,937,367 |   |
|                                                                                                                                       |   |                |       |   |                  |   |   |   |
| STOCKHOLDERS’      DEFICIENCY                                                                                                        |   |                |       |   |                  |   |   |   |
| Common      stock, $0.01 par value; 30,000,000 shares authorized; issued and      outstanding 3,552,502 and 3,522,502, shares respectively |   |                | 35,525     |   |                  |   | 35,225 |   |
| 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  |   |                  |   | 2,668,155 |   |
| Deficit                                                                                                                                    |   |                | (4,239,172 | )      |                  |   | (4,106,770 | ) |
| Treasury      stock, at cost; 39,975 shares                                                                                                |   |                | (42,454    | )      |                  |   | (42,454 | ) |
| Total      stockholders’ deficiency                                                                                                  |   |                | (1,555,189 | )      |                  |   | (1,434,787 | ) |
|                                                                                                                                       |   |                |       |   |                  |   |   |   |
| Total      liabilities and stockholders’ deficiency                                                                                  |   | $                   | 425,120    |   |                  | $      | 502,580 |   |

----

|                                                      |   | Three Months Ended |      |   | Six Months Ended |   |
|-----------------------------------------------------------|--------|------------------------------|-----------|--------|----------------------------|--------|
|                                                      |   | August 31,2010          |      |   | August 31,2009        |   |   | August 31,2010 |   |   | August 31,2009 |   |
|                                                      |   |                         |      |   |                       |   |   |   |   |   |   |   |
| REVENUES:                                                 |   |                         |      |   |                       |   |   |   |   |   |   |   |
| Initial      franchise fees                               |   | $                            | -         |   |                       | $      | - |   |   | $ | - |   |   | $ | - |   |
| Continuing      franchise fees                            |   |                         | -         |   |                       |   | - |   |   |   | - |   |   |   | - |   |
| Consulting      fees                                      |   |                         | 20,000    |   |                       |   | 4,000 |   |   |   | 20,000 |   |   |   | 8,000 |   |
| Sponsorship/advertising                                   |   |                         | -         |   |                       |   | - |   |   |   | - |   |   |   | - |   |
| Other                                                     |   |                         |      |   |                       |   | - |   |   |   | - |   |   |   | - |   |
|                                                      |   |                         | 20,000    |   |                       |   | 4,000 |   |   |   | 20,000 |   |   |   | 8,000 |   |
|                                                      |   |                         |      |   |                       |   |   |   |   |   |   |   |   |   |   |   |
| OPERATING      EXPENSES:                                  |   |                         |      |   |                       |   |   |   |   |   |   |   |   |   |   |   |
| Consulting                                                |   |                         | 575       |   |                       |   | 800 |   |   |   | 16,575 |   |   |   | 3,700 |   |
| Referee      fees                                         |   |                         | -         |   |                       |   | - |   |   |   | - |   |   |   | - |   |
| Salaries                                                  |   |                         | 14,710    |   |                       |   | 14,239 |   |   |   | 28,578 |   |   |   | 29,167 |   |
| Travel      and promotion                                 |   |                         | 12,177    |   |                       |   | 7,560 |   |   |   | 19,734 |   |   |   | 12,534 |   |
| Depreciation                                              |   |                         | 1,298     |   |                       |   | 1,298 |   |   |   | 2,596 |   |   |   | 2,596 |   |
| Other                                                     |   |                         | 28,555    |   |                       |   | 42,220 |   |   |   | 49,211 |   |   |   | 58,298 |   |
|                                                      |   |                         | 57,315    |   |                       |   | 66,117 |   |   |   | 116,694 |   |   |   | 106,295 |   |
|                                                      |   |                         |      |   |                       |   |   |   |   |   |   |   |   |   |   |   |
| Income      (loss) from operations                        |   |                         | (37,315   | )      |                       |   | (62,117 | ) |   |   | (96,694 | ) |   |   | (98,295 | ) |
|                                                      |   |                         |      |   |                       |   |   |   |   |   |   |   |   |   |   |   |
| OTHER      INCOME (EXPENSES):                             |   |                         |      |   |                       |   |   |   |   |   |   |   |   |   |   |   |
| Net      gain (loss) from marketable equity securities    |   |                         | (24,595   | )      |                       |   | (22,446 | ) |   |   | (19,287 | ) |   |   | 24,307 |   |
| Interest      expense                                     |   |                         | (8,238    | )      |                       |   | (8,594 | ) |   |   | (16,447 | ) |   |   | (17,280 | ) |
| Interest  income                                |   |                         | 1         |   |                       |   | 1 |   |   |   | 26 |   |   |   | 7 |   |
|                                                      |   |                         |      |   |                       |   |   |   |   |   |   |   |   |   |   |   |
|                                                      |   |                         | (32,832   | )      |                       |   | (31,039 | ) |   |   | (35,708 | ) |   |   | 7,034 |   |
|                                                      |   |                         |      |   |                       |   |   |   |   |   |   |   |   |   |   |   |
| NET      INCOME (LOSS)                                    |   | $                            | (70,147   | )      |                       | $      | (93,156 | ) |   | $ | (132,402 | ) |   | $ | (91,261 | ) |
|                                                      |   |                         |      |   |                       |   |   |   |   |   |   |   |   |   |   |   |
| Earnings      (loss) per common share:                    |   |                         |      |   |                       |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                     |   | $                            | (.02      | )      |                       | $      | (.03 | ) |   | $ | (.04 | ) |   | $ | (.03 | ) |
| Diluted                                                   |   | $                            | (.02      | )      |                       | $      | (.03 | ) |   | $ | (.04 | ) |   | $ | (.03 | ) |
| WEIGHTED      AVERAGE NUMBER OF COMMON SHARES OUTSTANDING |   |                         |      |   |                       |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                     |   |                         | 3,512,527 |   |                       |   | 3,482,527 |   |   |   | 3,501,766 |   |   |   | 3,482,527 |   |
| Diluted                                                   |   |                         | 4,618,206 |   |                       |   | 4,588,206 |   |   |   | 4,607,445 |   |   |   | 4,588,206 |   |

----

|                            |   | Common Stock |      |   | Preferred Stock |   |   | Additional  |   |   |      |   |   |    |   |   | Total   |   |
|---------------------------------|--------|-------------------|-----------|--------|----------------------|--------|--------|-------------|--------|--------|-----------|--------|--------|---------|--------|--------|---------|--------|
|                            |   | Shares            |      |   |                 |   |   | Shares      |   |   |      |   |   | Paid-in |   |   |    |   |   | Treasury Stock |   |   | Stockholders’ |   |
|                            |   | Outstanding       |      |   | Amount               |   |   | Outstanding |   |   | Amount    |   |   | Capital |   |   | Deficit |   |   | Shares |   |   | Amount |   |   | Deficiency |   |
|                            |   |              |      |   |                 |   |   |        |   |   |      |   |   |    |   |   |    |   |   |   |   |   |   |   |   |   |   |
| Balance,      February 28, 2010 |   |              | 3,522,502 |   |                 | $      | 35,225 |        |   |   | 1,105,679 |   |   | $       | 11,057 |   |    | $      | 2,668,155 |   |   | $ | (4,106,770 | ) |   |   | 39,975 |   |   | $ | (42,454 | ) |   | $ | (1,434,787 | ) |
|                            |   |              |      |   |                 |   |   |        |   |   |      |   |   |    |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares      issued for services |   |              | 30,000    |   |                 |   | 300    |        |   |   | -         |   |   |    | -      |   |    |   | 11,700 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 12,000 |   |
|                            |   |              |      |   |                 |   |   |        |   |   |      |   |   |    |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      income (loss)          |   |              | -         |   |                 |   | -      |        |   |   | -         |   |   |    | -      |   |    |   | - |   |   |   | (132,402 | ) |   |   | - |   |   |   | - |   |   |   | (132,402 | ) |
|                            |   |              |      |   |                 |   |   |        |   |   |      |   |   |    |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance,      August 31, 2010   |   |              | 3,552,502 |   |                 | $      | 35,525 |        |   |   | 1,105,679 |   |   | $       | 11,057 |   |    | $      | 2,679,855 |   |   | $ | (4,239,172 | ) |   |   | 39,975 |   |   | $ | (42,454 | ) |   | $ | (1,555,189 | ) |

----

|                                                                                                        |   | Six Months Ended |     |
|-------------------------------------------------------------------------------------------------------------|--------|----------------------------|----------|
|                                                                                                        |   | August 31,2010        |     |   | August 31,2009 |   |
|                                                                                                        |   |                       |     |   |   |   |
| CASH      FLOWS FROM OPERATING ACTIVITIES:                                                                  |   |                       |     |   |   |   |
| Net      Income (loss)                                                                                      |   | $                          | (132,402 | ) |   | $ | (91,261 | ) |
| Adjustments      to reconcile net income(loss) to net cash (used in) provided      by operating activities: |   |                       |     |   |   |   |   |   |
| Depreciation                                                                                                |   |                       | 2,596    |   |   |   | 2,596 |   |
| Non-cash      compensation                                                                                  |   |                       | 12,000   |   |   |   | - |   |
| Changes      in operating assets and liabilities:                                                           |   |                       |     |   |   |   |   |   |
| Marketable      equity securities                                                                           |   |                       | (31,418  | ) |   |   | (34,108 | ) |
| Accounts      payable and accrued expenses                                                                  |   |                       | 10,915   |   |   |   | 38,551 |   |
| Due      in connection with South Korea venture                                                             |   |                       | (20,000  | ) |   |   | (60,000 | ) |
| Deferred      revenue                                                                                       |   |                       | -        |   |   |   | (33,000 | ) |
| Credit      card obligations                                                                                |   |                       | 983      |   |   |   | (7,705 | ) |
|                                                                                                        |   |                       |     |   |   |   |   |   |
| Net      cash (used in) provided by operating activities                                                    |   |                       | (157,326 | ) |   |   | (184,927 | ) |
|                                                                                                        |   |                       |     |   |   |   |   |   |
| CASH      FLOWS FROM FINANCING ACTIVITIES:                                                                  |   |                       |     |   |   |   |   |   |
| Decrease      (increase) in due from related parties                                                        |   |                       | (9,884   | ) |   |   | (1,396 | ) |
| Increase      (decrease) in due to related parties                                                          |   |                       | 169,827  |   |   |   | 180,807 |   |
| Decrease      in mortgage payable                                                                           |   |                       | -        |   |   |   | - |   |
|                                                                                                        |   |                       |     |   |   |   |   |   |
| Net      cash provided by financing activities                                                              |   |                       | 159,943  |   |   |   | 179,411 |   |
|                                                                                                        |   |                       |     |   |   |   |   |   |
| NET      INCREASE(DECREASE) IN CASH AND CASH EQUIVALENTS                                                    |   |                       | 2,617    |   |   |   | (5,516 | ) |
|                                                                                                        |   |                       |     |   |   |   |   |   |
| CASH      AND CASH EQUIVALENTS, beginning of period                                                         |   |                       | 661      |   |   |   | 7,233 |   |
|                                                                                                        |   |                       |     |   |   |   |   |   |
| CASH      AND CASH EQUIVALENTS, end of period                                                               |   | $                          | 3,278    |   |   | $ | 7,717 |   |
|                                                                                                        |   |                       |     |   |   |   |   |   |
| SUPPLEMENTAL      DISCLOSURES OF CASH FLOW INFORMATION:                                                     |   |                       |     |   |   |   |   |   |
| Interest      paid                                                                                          |   | $                          | 8,647    |   |   | $ | 9,480 |   |
| Income      tax paid                                                                                        |   | $                          | -        |   |   | $ | - |   |
|                                                                                                        |   |                       |     |   |   |   |   |   |
| NON-CASH      FINANCING ACTIVITY:                                                                           |   |                       |     |   |   |   |   |   |
| Transfer      of amounts due from related parties to                                                        |   |                       |     |   |   |   |   |   |
| USBL      president in partial satisfaction of amount                                                       |   |                       |     |   |   |   |   |   |
| Due      to USBL president                                                                                  |   | $                          | 118,783  |   |   | $ | - |   |

----

| 1. | Description      of Business and Basis ofPresentation: |
|----|--------------------------------------------------------|

| 2. | Summary      of Significant AccountingPolicies: |
|----|-------------------------------------------------|

----

----

| 3. | Due      from Related Parties |
|----|-------------------------------|

|   | Due      from related parties consist of: |
|--------|-------------------------------------------|

|                                                                                                                                                        |   | August 31, |   |   | February 28, |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------|--------|--------|-------------------|--------|
|                                                                                                                                                        |   | 2010            |   |   | 2010              |   |
|                                                                                                                                                        |   | (Unaudited)     |   |   |              |   |
|                                                                                                                                                        |   |            |   |   |              |   |
| USBL      receivable from Meisenheimer Capital, Inc. (“MCI”), controlling      stockholder of USBL, non-interest bearing, due on demand         |   | $               | 4,915  |   |              | $      | 111,814 |   |
|                                                                                                                                                        |   |            |   |   |              |   |   |   |
| USBL      receivable from Synercom (“Synercom”), a corporation controlled by the two      officers of USBL, non-interest bearing, due on demand |   |            | -      |   |              |   | 2,000 |   |
|                                                                                                                                                        |   |            |   |   |              |   |   |   |
| Total                                                                                                                                                       |   | $               | 4,915  |   |              | $      | 113,814 |   |

----

| 4. | Property,      Net |
|----|--------------------|

|                          |   | August 31, |    |   | February 28, |   |
|-------------------------------|--------|-----------------|---------|--------|-------------------|--------|
|                          |   | 2010            |    |   | 2010              |   |
|                          |   | (Unaudited)     |    |   |              |   |
|                          |   |            |    |   |              |   |
| Land                          |   | $               | 121,253 |   |              | $      | 121,253 |   |
| Building                      |   |            | 155,747 |   |              |   | 155,747 |   |
| Total                         |   |            | 277,000 |   |              |   | 277,000 |   |
|                          |   |            |    |   |              |   |   |   |
| Accumulated      depreciation |   |            | (37,594 | )      |              |   | (34,998 | ) |
|                          |   |            |    |   |              |   |   |   |
| Property,      net            |   | $               | 239,406 |   |              | $      | 242,002 |   |

| 5. | Credit      Card Obligations |
|----|------------------------------|

| 6. | Due      to Related Parties |
|----|-----------------------------|

|                                                                                                                                                                         |   | August 31,2010 |       |   | February 28,2010 |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------|------------|--------|-----------------------|--------|
|                                                                                                                                                                         |   | (Unaudited)         |       |   |                  |   |
| USBL      loans payable to Spectrum Associates, Inc. (“Spectrum”), a corporation      controlled by the two officers of USBL, interest at 6%, due on      demand |   | $                   | 1,045,957  |   |                  | $      | 911,957 |   |
| USBL      loans payable to the two officers of USBL, interest at 6%, due on      demand                                                                                      |   |                | 382,827    |   |                  |   | 465,783 |   |
| USBL      loan payable to Genvest, LLC (“Genvest”), an organization controlled by      the two officers of USBL                                                  |   |                | 20,000     |   |                  |   | 20,000 |   |
| USBL      loans to Daniel T. Meisenheimer, Jr. Trust, a trust controlled by the two      officers of USBL, non-interest bearing, due on demand                               |   |                | 44,100     |   |                  |   | 44,100 |   |
| MCREH      note payable to the two officers of USBL, interest at 6%, due December 31,      2011                                                                              |   |                | 50,000     |   |                  |   | 50,000 |   |
| MCREH      note payable to Spectrum, interest at 7%, due on demand, secured by MCREH      property                                                                           |   |                | 25,000     |   |                  |   | 25,000 |   |
| MCREH      note payable to president of USBL, interest at 7%, due on demand, secured      by MCREH property                                                                  |   |                | 45,000     |   |                  |   | 45,000 |   |
|                                                                                                                                                                         |   |                |       |   |                  |   |   |   |
| MCREH      note payable to the two officers of USBL, interest at 7%, due on demand,      secured by MCREH property                                                           |   |                | 70,000     |   |                  |   | 70,000 |   |
| MCREH      note payable to the two officers of USBL, interest at 4%, due October 22,      2009, secured by MCREH property                                                    |   |                | 70,000     |   |                  |   | 70,000 |   |
| MCREH      loan payable to president of USBL, non-interest bearing, due on      demand                                                                                       |   |                | 4,000      |   |                  |   | 4,000 |   |
| Total                                                                                                                                                                        |   |                | 1,756,884  |   |                  |   | 1,705,840 |   |
| Less      current portion                                                                                                                                                    |   |                | (1,706,884 | )      |                  |   | (1,655,840 | ) |
|                                                                                                                                                                         |   |                |       |   |                  |   |   |   |
| Non      current portion                                                                                                                                                     |   | $                   | 50,000     |   |                  | $      | 50,000 |   |

----

|   | For      the six months ended August 31, 2010 and 2009, interest due under the USBL      loans were waived by the respectivelenders. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------|

|   | At      August 31, 2010 and February 28, 2010, accounts payable and accrued      expenses included accrued interest payable on MCREH notes payable to      related parties totaling $43,787 and $35,987,  respectively. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7. | Stockholders’      Equity |
|----|---------------------------------|

| 8. | Related      Party Transactions |
|----|---------------------------------|

| 9. | Commitments      and Contingencies |
|----|------------------------------------|

|   | Occupancy      Agreement |
|--------|--------------------------|

|   | In      September 2007, the Company moved its office from the MCREH building 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 August 31, 2010 and February 28,      2010, accounts payable and accrued expenses included accrued rent payable      to Genvest totaling $30,000 and $24,000,  respectively. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | USBL      cancelled its 2008, 2009, and 2010 seasons.  These cancellations      may result in claims and legal actions from  franchisees. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | On      June 30, 2008, a legal action was commenced by Albany Patroons, Inc., a      franchisee of USBL, against the Company in the United States District      Court for the Northern District of New York.  The complaint      alleges breach of contract by USBL due to the suspension of the 2008      season and seeks total damages of $285,000.  On September 5,      2008, the Company answered the complaint and asserted a counter-claim      against plaintiff for breach of franchise agreement and/or memorandum of      agreement.  This action was discontinued and the parties agreed      to proceed with binding arbitration.  The Company believes that      it has a meritorious defense to the action and does not expect the      ultimate resolution of this matter to have a material adverse effect on      its consolidated financial condition or results of    operations. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | South Korea      Venture |
|--------|--------------------------|

|   | In      August 2008, the Company received $170,667 from a third party to      investigate business opportunities with the South Korea Basketball League      and with prospective South Korean sponsors.  Pursuant to the      related verbal agreement, USBL paid a total of $160,000 to a consulting      firm approved by the third party and recognized the remaining $10,667 as      consulting fees revenue in the three months ended February 28,      2009. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | In      January 2009, the Company received an additional $256,000 from the third      party.  Under the related verbal agreement, USBL paid a total of      $240,000 ($220,000 in fiscal 2010, $20,000 in fiscal 2011) to the      consulting firm approved by the third party and recognized the remaining      $16,000 as consulting fees revenue in the year ended February 28,      2010. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | In      April and May 2010, the Company received an additional $157,667 relating      to the South Korea venture.  In the six months ended August 31,      2010, USBL paid a total of $137,667 to the consulting firm approved by the      third party and recognized the remaining $20,000 as consulting fees      revenue in the three months ended August 31,  2010. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ITEM 2. | MANAGEMENT’S      DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF      OPERATIONS. |
|--------------|--------------------------------------------------------------------------------------------------------|

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| ITEM      3. | QUANTITATIVE      AND QUALITATIVE DISCLOSURES ABOUT MARKETRISK. |
|--------------|-----------------------------------------------------------------|

|   | Not      applicable. |
|--------|----------------------|

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| ITEM 4. | CONTROLS      AND PROCEDURES. |
|--------------|-------------------------------|

| Item      6. | Exhibits. |
|--------------|-----------|

| 31.1 | Certification      of principal executive officer |
|------|---------------------------------------------------|

| 31.2 | Certification      of principal financial officer |
|------|---------------------------------------------------|

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

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| 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 |

| Name                              |   | Capacity                                         |   | Date                 |
|-----------------------------------|--------|--------------------------------------------------|--------|----------------------|
|                              |   |                                             |   |                 |
| /s/ Daniel T. Meisenheimer    III |   |                                             |   |                 |
| Daniel      T. Meisenheimer III   |   | Director      and President                      |   | October      8, 2010 |
|                              |   | (principal      executive officer)               |   |                 |
|                              |   |                                             |   |                 |
| /s/ Richard C. Meisenheimer       |   |                                             |   |                 |
| Richard      C. Meisenheimer      |   | Director      and Chief Financial                |   | October      8, 2010 |
|                              |   | Officer  (principal      financial and |   |                 |
|                              |   | accounting      officer)                         |   |                 |

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| 31.1 | Certification      of principal executive officer |
|------|---------------------------------------------------|

| 31.2 | Certification      of principal financial officer |
|------|---------------------------------------------------|

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

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