Sparta Commercial Services Files 10-Q/A for Q3

TL;DR

Sparta Commercial Services filed an amended Q3 report (ending Jan 31, 2024).

AI Summary

SPARTA COMMERCIAL SERVICES, INC. filed a 10-Q/A on June 14, 2024, for the period ending January 31, 2024. The filing pertains to their third quarter and includes financial data for periods ending April 30, 2023, and January 31, 2024. The company, formerly known as Tomahawk Industries Inc., is based in New York.

Why It Matters

This amended filing provides updated financial information for Sparta Commercial Services, Inc., crucial for investors and stakeholders to assess the company's performance and financial health.

Risk Assessment

Risk Level: low — This filing is an amendment to a previous report and does not appear to contain new material adverse information.

Key Numbers

• Q3 — Quarter (Reporting period for the 10-Q/A filing.)
• 2024-01-31 — Period End Date (The end date for the financial reporting period.)
• 2023-04-30 — Prior Period End Date (A prior period end date referenced in the filing.)

Key Players & Entities

• SPARTA COMMERCIAL SERVICES, INC. (company) — Filer
• TOMAHAWK INDUSTRIES INC (company) — Former Company Name
• 20240131 (date) — Reporting Period End Date
• 20240614 (date) — Filing Date

FAQ

Filing Documents

• form10-qa.htm (10-Q/A) — 1189KB
• ex31-1.htm (EX-31.1) — 12KB
• ex31-2.htm (EX-31.2) — 12KB
• ex32-1.htm (EX-32.1) — 7KB
• 0001493152-24-023929.txt ( ) — 4270KB
• srco-20240131.xsd (EX-101.SCH) — 36KB
• srco-20240131_cal.xml (EX-101.CAL) — 44KB
• srco-20240131_def.xml (EX-101.DEF) — 130KB
• srco-20240131_lab.xml (EX-101.LAB) — 269KB
• srco-20240131_pre.xml (EX-101.PRE) — 191KB
• form10-qa_htm.xml (XML) — 492KB

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 17 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 23 Item 4.

Controls and Procedures

Controls and Procedures 23 PART II. OTHER INFORMATION 25 Item 1.

Legal Proceedings

Legal Proceedings 25 Item 1A.

Risk Factors

Risk Factors 25 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 26 Item 3. Defaults Upon Senior Securities 26 Item 5. Other Information 26 Item 6. Exhibits 26

Signatures

Signatures 27 2 PART I. FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS SPARTA COMMERCIAL SERVICES, INC. CONDENSED CONSOLIDATED BALANCE SHEETS AS OF JANUARY 31, 2024, AND APRIL 30, 2023 (Unaudited) January 31, 2024 April 30, 2023 ASSETS Current Assets Cash and cash equivalents $ 5,417 $ 4,028 Accounts receivable 2,890 - Inventory 3,831 - Other current assets - - Total Current Assets 12,138 4,028 Property and equipment, net of accumulated depreciation and amortization of $ 213,262 and $ 213,262 , respectively - - Deposits - rent deposit 9,000 9,000 Total assets $ 21,138 $ 13,028 LIABILITIES AND DEFICIT Liabilities: Current Liabilities Bank overdraft $ - - $ 54,410 Short Term Loan 1,585 1,585 Accounts payable and accrued expenses 1,587,488 1,698,457 Derivative liabilities 1,032,827 1,375,767 Current portion notes payable 7,151,809 6,694,245 Deferred revenue - - Total Current Liabilities 9,773,709 9,824,464 Loans payable-related parties 615,537 435,753 Total Long Term Liabilities 615,537 435,753 Total liabilities $ 10,389,246 $ 10,260,217 Stockholders' Deficit: Preferred stock, $ 0.001 par value; 10,000,000 shares authorized of which 35,850 shares have been designated as Series A convertible preferred stock, with a stated value of $ 100 per share, 125 and 125 shares issued and outstanding as of January 31, 2024 and April 30, 2023, respectively 12,500 12,500 Preferred stock C, 4,200,000 shares have been designated as Series C redeemable, convertible preferred, $ 0.001 par value, with a liquidation and redemption value of $ 1 per share, 1,919,157 and 1,979,157 shares issued and outstanding as of January 31, 2024 and April 30, 2023, respectively 1,919 1,979 Preferred stock D, 2,000,000 shares have been designated as Series D redeemable, convertible preferred, $ 0.001 par value, with a liquidation and redemption value of $ 1.00 per share, 400,877 and 937,

Business

Business General Overview Sparta Commercial Services, Inc. ("Sparta," "we," "us," or the "Company") is a Nevada corporation with headquarters in New York City. We are a multi-disciplined parent corporation operating across three business sectors – Financial Services, E-Commerce & Mobile Technology, and Health and Wellness. Sparta's historic roots were in the Powersports industry until the financial crisis that began 2008. The Company provided consumer retail installment loans and leases through authorized motorcycle dealerships in 33 states, with financing lines of credit provided by institutional lenders. In 2007, the Company introduced a Municipal Financing program which has financed over 100 jurisdictions to date. Vehicle History Reports are a staple of Sparta's E-Commerce Technology subsidiary iMobile Solutions, Inc. Whether a vehicle is intended for personal, business or recreational use, Sparta's Vehicle History Reports are highly regarded for accuracy and completeness and have been sold across all 50 states and in 62 countries worldwide. With iMobile App, the Company additionally provides mobile technology services, including web and mobile application creation, development and management, text messaging services, CRM (Customer Relationship Management) tools, and custom kitchen ordering systems for a wide range of businesses to increase revenue, build brand recognition, and improve customer engagement. Sparta's subsidiary, New World Health Brands, Inc., offers high quality dietary supplements. Sparta's subsidiary, Sparta Crypto, Inc., is in the process of completing a proprietary state-of-the-art platform designed to connect users of widely adopted digital currencies with sellers of various goods and services; and has completed and tested a cryptocurrency payment gateway called SpartaPayIQ. Agoge Global USA, Inc. ("Agoge") was formed as a subsidiary of Sparta Crypto, Inc. in December 2022 and entered into a Joint Venture Agreement with WeDev Gro

View Full Filing

View this 10-Q/A filing on SEC EDGAR