Shorepower Technologies Inc.

Specialty Retail • Consumer Cyclical • Hillsboro, OR, United States • SPEV (PNK)

503 892 7345 5291 Ne Elam Young Parkway, Hillsboro, OR 97124-7560, United States

Quarter: Q1 2023 Reported: March 27, 2023 Sentiment: Neutral

Shorepower Technologies Inc. designs, builds, installs, and operates electrified parking spaces in truck stops, rest areas, travel plazas, warehouses, truck depots, terminals, shopping malls, businesses and other types of parking areas in the United States. The company operates heavy-duty electrified parking spaces; and plug-in stations for trucks, electric vehicles, and refrigerated trailers. It also provides electric vehicle charging stations, electric trailer refrigeration units, and truck stop electrification system related products. Shorepower Technologies Inc. was founded in 2004 and is based in Hillsboro, Oregon.

Analysis Summary

SHOREPOWER TECHNOLOGIES INC. (SPEV) finalized its strategic merger with United States Basketball League, Inc. on March 22, 2023, transitioning USBL from a shell company into an operational entity focused on electric vehicle (EV) charging infrastructure. Under the terms, Shorepower, LLC d/b/a Shorepower Technologies, was merged into USBL, with Shorepower acquiring 55% of the combined entity's common stock and 2,000,000 shares of Series B Preferred stock, each carrying 40 votes per common share. The merger was contingent on several conditions, including Shorepower providing two years of audited financials and USBL completing a pre-merger financing that raised $660,000 through the sale of 11,000,000 common shares and warrants, ensuring a minimum of $480,000 cash at closing.

Strategic growth is tied to performance-based milestones, including additional common stock awards for converting or installing 75 Level 2+ connection points within 12 months, applying for $10 million or securing $1 million in grants within 18 months, completing acquisitions generating $3 million in gross revenues within 24 months, and hiring key personnel within six months. Post-merger, USBL assumed Shorepower's $1,400,000 debt obligations, with specific limits on monthly debt reduction payments ($2,000) and CEO compensation ($10,000) for the initial period.

The company acknowledges its early-stage nature, with Shorepower having a history of operating losses ($145,000 in 2020, $77,596 in 2021) and negative operating cash flows, leading to a 'going concern' emphasis from auditors. Management anticipates continued losses in the near-to-medium term. The business is highly dependent on the rapid adoption of EVs, which is subject to evolving technologies, consumer preferences, and regulatory environments.

Competitive pressures are significant, with established players like Convoy Solutions LLC dba IdleAir, ChargePoint, Blink, Volta, EVgo, ABB, Cyber Switching, Siemens, and Electrify America (backed by Volkswagen's $2 billion mandate) already in the market. Risks include the ability to manage rapid growth, potential inaccuracies in market forecasts, reliance on a limited number of equipment vendors, challenges in construction and installation (permitting, utility cooperation, contractor availability), and the need for substantial additional financing. The company also faces risks from natural disasters, potential vandalism of public chargers, and dependence on electricity availability. The successful execution of its business model, including market acceptance of its products and services and effective capital deployment, will be critical for overcoming these challenges and achieving profitability.

Key Highlights

• Merger of Shorepower Technologies into United States Basketball League, Inc. (USBL) completed on March 22, 2023, transforming USBL into an EV charging company.
• $660,000 raised through pre-merger stock and warrant financing.
• Shorepower now holds 55% of USBL common stock and 2 million Series B Preferred shares (40x voting power).
• Strategic milestones established for network expansion (75 connection points), grant acquisition ($10M applied/$1M awarded), and key personnel hiring.
• USBL assumed Shorepower's $1,400,000 debt obligations post-merger.
• Pre-merger Shorepower had a history of operating losses and a 'going concern' warning from auditors.
• New management intends to change USBL's name to Shorepower Technologies, Inc.

Financial Metrics

eps

N/A

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revenue

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guidance

net income

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assumed debt

1400000 USD

capital raised

660000 USD

Stock Performance (90 Days)

Data through May 15, 2026

Positive Signals

• Successful completion of the merger, transforming a shell company into an operating business.
• Secured $660,000 in pre-merger financing, ensuring initial operational capital.
• Defined strategic milestones for network expansion, grant acquisition, and team building, providing a clear roadmap.
• Shorepower's significant ownership stake (55% common, 2M Series B preferred) indicates strong commitment from the operating entity.
• Intent to change the company name to Shorepower Technologies, Inc., signaling a clear brand and market focus.

Risks & Concerns

— History of operating losses and 'going concern' doubt, indicating significant financial instability and potential need for further capital.
— High dependence on the uncertain and rapidly evolving market for EV adoption and demand, which may not materialize as expected.
— Intense competition from well-funded and established players in the EV charging market, potentially eroding market share and margins.
— Risks associated with supply chain disruptions, construction delays, and reliance on limited vendors for charging equipment and installation services.
— Forecasts and projections are based on assumptions that may prove inaccurate, leading to actual results differing materially and adversely.