DUE TO PRIOR RELATED PARTIES

3 Months Ended

May 31, 2021

DUE TO PRIOR RELATED PARTIES

DUE TO PRIOR RELATED PARTIES

NOTE 5 – DUE TO PRIOR RELATED PARTIES

Due to related parties consist of:

	May 31, 2021		February 28, 2021
USBL loans payable to Spectrum Associates, Inc. (“Spectrum”), a corporation controlled by the two officers of USBL, interest at 6%, due on demand	$	—	$	1,324,689
USBL loans payable to the two officers of USBL, interest at 6%, due on demand		—		569,317
USBL loans payable to Daniel T. Meisenheimer, Jr. Trust, a trust controlled by the two officers of USBL, non-interest bearing, due on demand		—		48,850
MCREH note payable to president of USBL, interest at 7%, due on demand		—		48,000
MCREH loan payable to Spectrum, non-interest bearing, due on demand		—		4,500
MCREH loan payable to president of USBL, non-interest bearing, due on demand		—		5,000
MCREH loan payable to Meisenheimer Capital, Inc., non-interest bearing, due on demand		—		159,275
Total	$	—	$	2,159,631

On April 7, 2021, as part of the purchase and sale agreement, the principals of MCI consisting of Daniel Meisenheimer III, Richard Meisenheimer and their affiliated entities have agreed to cancel previously issued and outstanding loans made to the Company.

Spectrum Associates agreed to cancel indebtedness in the amount of $1,318,789 and the principals (D. Meisenheimer III and R. Meisenheimer) and their other affiliates agreed to cancel indebtedness in the amount of $815,590.

As a result of the debt cancellation the Company recognized a gain on the forgiveness of debt of $66,747 and credited $2,335,493 to additional paid in capital.