Commitments and Contingencies

3 Months Ended

May 31, 2013

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies [Text Block]

10. 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 May 31, 2013 and February 28, 2013, accounts payable and accrued expenses included accrued rent payable to Genvest totaling $63,000 and $60,000, respectively.

Cancellation of 2008, 2009, 2010, 2011, 2012 and 2013 Seasons

USBL cancelled its seasons from 2008 through 2013. These cancellations may result in claims and legal actions from franchisees.

Litigation

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.