MAJOR LEAGUE FOOTBALL INC - Quarter Report: 2005 July (Form 10-Q)

 

 

 

 

 

 

 

 

 

 

 

 

Delaware	20-1568059
(State or other jurisdiction of Incorporation or Organization)	(I.R.S. Employer Identification No.)
2601 Annand Drive Suite 16 Wilmington, DE	19808
(Address of principal executive offices)	(Zip Code)

 

 

 

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(See accompanying notes to financial statements)

 

 

 

 

 

CASH FLOWS FROM OPERATING ACTIVITIES
Net decrease in net assets resulting from operations		$	(555,716	)
Adjustments to reconcile net decrease in net assets from
operations to net cash used in operating activities:
Depreciation expense			831
Net unrealized depreciation on investments			667,375
Deferred income taxes			(366,600	)
Net changes in miscellaneous receivables			(300	)
Net changes in due from affiliates			300
Prepaid expenses			567
Net changes in accounts payable and accrued expenses			19,618
Net cash used in operating activities			(233,925	)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property and equipment			-
Lease deposit			-
Decrease (Increase) in notes receivable			-
Net cash used in investing activities			-
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of common stock			180,800
NET DECREASE IN CASH			(53,125	)
CASH, BEGINNING OF YEAR			158,453
CASH, END OF PERIOD		$	105,328

 

 

Investment securities are exposed to various risks, such as overall market volatility. Due to the level of risk associated with the securities of certain portfolio companies, it is likely that changes in their values will occur in the near term and that such changes could materially affect the amounts reported in the statement of assets and liabilities at future dates.

Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported period. Actual results could differ from those estimates.

Cash and Equivalents

For purposes of the statement of cash flows, the Company considers all investment instruments purchased with maturity of three months or less to be cash and cash equivalents.

 

Property and Equipment

Property and equipment are stated at cost, net of accumulated depreciation. For financial accounting purposes, depreciation is generally computed by the straight-line method over the following useful lives:

	Furniture and fixtures	5 to 7 years
	Computer and office equipment	3 to 7 years

Income Taxes

Deferred tax assets and liabilities are computed annually for differences between the financial statement and tax bases of assets and liabilities that will result in taxable or deductible amounts in the future based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Deferred income taxes arise principally from the recognition of unrealized gains or losses from appreciation in investment value for financial statement purposes, while for income tax purposes, gains or losses are only recognized when realized (disposition). When unrealized gains and losses result in a net unrealized loss, provision is made for a deferred tax asset. When unrealized gains and losses result in a net unrealized gain, provision is made for a deferred tax liability. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. Income tax expense is the tax payable or refundable for the period plus or minus the change during the period in deferred tax assets or liabilities.

Concentrations of Credit Risk

 

 

 

 

 

 

 

 

During the three months ended July 31, 2005, 132,150 shares were issued for proceeds of $180,800.

During the month of August, 2005, the Company raised capital of $227,500 through the issuance of 113,750 shares of its common stock. .

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   The Company is currently offering to sell, on a best efforts basis, up to $4,000,000 of its common stock, $.001 par value per share at a price of not less than $2.00 per share pursuant to Regulation E promulgated under the Securities Act of 1933. The offering is open only to appropriate investors in states where the Company has complied with the appropriate Blue Sky laws. Potential investors have been referred to the Company by current shareholders and acquaintances of its Board of Directors and Board of Advisors.

 

	August 31, 2005	July 31, 2005	April 30,2005
Number of shares	305,100	191,350	142,700
Proceeds of sale	$610,200	$382,700	$285,400

 

 

 

 

 

 

 

 

 

 

Date of Sale	Number of Shares Sold (a)	Purchasers	Consideration Paid per Share (b)	Securities Act Exemption Claimed
May 1, 2005 through June 30, 2005	83,500	4 Investors	$1.00	§ 4(2)
May 1, 2005 through July 31, 2005	48,650	77 Investors	$2.00	§ 3(b) and (c)
TOTAL	132,150

(a)	No underwriter or broker-dealer participated in the sale.

(b)	All proceeds were used to invest in portfolio companies or to pay routine operating expenses.

 

 

 

31.1	Certification pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, as amended, executed by the Principal Executive Officer of the Company.
31.2	Certification pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, as amended, executed by the Principal Financial Officer of the Company.
32.1	Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, executed by the Principal Executive Officer of the Company.
32.2	Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, executed by the Principal Financial Officer of the Company.

 

 

		Universal Capital Management, Inc.
Date:	September 14, 2005	By:	/s/ Michael D. Queen
			Michael D. Queen, President
Date:	September 14, 2005	By:	/s/ Joseph T. Drennan
			Joseph T. Drennan, Treasurer

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