Sparta Commercial Services, Inc. Files 10-Q for Period Ending January 31, 2024

AI Summary

SPARTA COMMERCIAL SERVICES, INC. (SRCO) filed a Quarterly Report (10-Q) with the SEC on March 25, 2024. Filing is a 10-Q for Sparta Commercial Services, Inc. for the period ending January 31, 2024. The company was formerly known as Tomahawk Industries Inc. and Tomahawk Oil & Minerals Inc. The filing includes data for fiscal year end April 30. Key dates include 2024-01-31 (period end) and 2024-03-25 (filing date). The filing references various preferred stock series (A, C, D) and common stock.

Why It Matters

For investors and stakeholders tracking SPARTA COMMERCIAL SERVICES, INC., this filing contains several important signals. This filing provides investors with the latest quarterly financial performance and operational updates for Sparta Commercial Services, Inc. Understanding the company's historical name changes and stock structure is crucial for assessing its evolution and current financial standing.

Risk Assessment

Risk Level: — SPARTA COMMERCIAL SERVICES, INC. shows moderate risk based on this filing. The filing is a standard quarterly report (10-Q) with no immediate red flags indicating high risk.

Analyst Insight

Review the detailed financial statements and segment performance within the 10-Q to understand the company's operational health and growth drivers.

Key Numbers

• 2024-01-31 — Period End Date (Conformed period of report)
• 2024-03-25 — Filing Date (Filed as of date)
• 0430 — Fiscal Year End (Fiscal year end)

Key Players & Entities

• SPARTA COMMERCIAL SERVICES, INC. (company) — Filer name
• SRCO (company) — Ticker symbol
• TOMAHAWK INDUSTRIES INC (company) — Former company name
• TOMAHAWK OIL & MINERALS INC (company) — Former company name
• 2024-01-31 (date) — Conformed period of report
• 2024-03-25 (date) — Filed as of date

FAQ

Industry Context

Sparta Commercial Services operates within the business services sector, providing various services to other businesses.

Regulatory Implications

The filing adheres to SEC regulations for quarterly reporting under the Securities Exchange Act of 1934.

What Investors Should Do

1. Analyze the balance sheet for changes in assets, liabilities, and equity.
2. Examine the cash flow statement for insights into operating, investing, and financing activities.
3. Review any disclosures related to debt, equity, or related-party transactions.

Key Dates

• 2024-01-31: Period End — End of the reporting quarter
• 2024-03-25: Filing Date — Date the 10-Q was filed with the SEC

Glossary

10-Q

A quarterly report required by the U.S. Securities and Exchange Commission (SEC). (Provides investors with an update on the company's financial performance during the quarter.)

Year-Over-Year Comparison

This is the first 10-Q filing for the period ending January 31, 2024, following previous filings for earlier periods.

Filing Documents

• form10-q.htm (10-Q) — 1209KB
• ex31-1.htm (EX-31.1) — 12KB
• ex31-2.htm (EX-31.2) — 12KB
• ex32-1.htm (EX-32.1) — 7KB
• 0001493152-24-011178.txt ( ) — 4354KB
• srco-20240131.xsd (EX-101.SCH) — 35KB
• srco-20240131_cal.xml (EX-101.CAL) — 43KB
• srco-20240131_def.xml (EX-101.DEF) — 130KB
• srco-20240131_lab.xml (EX-101.LAB) — 265KB
• srco-20240131_pre.xml (EX-101.PRE) — 190KB
• form10-q_htm.xml (XML) — 523KB

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 216,585 1,585 Accounts payable and accrued expenses 1,587,488 1,698,457 Derivative liabilities 1,042,955 1,375,767 Current portion notes payable 6,946,644 6,694,245 Deferred revenue - Total Current Liabilities 9,793,673 9,824,464 Loans payable-related parties 529,294 435,753 Total Long Term Liabilities 529,294 435,753 Total liabilities $ 10,322,967 $ 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, 1,979,157 and 2,363,000 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, 937,754 and 618,411 share

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 filing on SEC EDGAR