Sparta Commercial Services Files 10-Q for July 31, 2024

TL;DR

**SPARTA COMMERCIAL SERVICES FILES 10-Q FOR JULY 31, 2024 - FINANCIALS UPDATED**

AI Summary

Sparta Commercial Services, Inc. filed its 10-Q for the period ending July 31, 2024. The filing details financial performance and operational updates for the company, which operates in the business services sector. Specific financial figures and operational highlights are presented within the report.

Why It Matters

This filing provides investors and stakeholders with an updated view of Sparta Commercial Services' financial health and business operations as of mid-2024.

Risk Assessment

Risk Level: medium — The risk level is medium due to the nature of 10-Q filings, which provide periodic financial updates that can significantly impact investor decisions and stock prices.

Key Numbers

• 2024-07-31 — Period End Date (Latest financial reporting period)
• 2024-09-23 — Filing Date (Date the report was submitted to the SEC)

Key Players & Entities

• SPARTA COMMERCIAL SERVICES, INC. (company) — Filer
• TOMAHAWK INDUSTRIES INC (company) — Former Company Name
• TOMAHAWK OIL & MINERALS INC (company) — Former Company Name
• 20240731 (date) — Period of Report
• 20240923 (date) — Filing Date

FAQ

Filing Documents

• form10-q.htm (10-Q) — 638KB
• ex31-1.htm (EX-31.1) — 12KB
• ex31-2.htm (EX-31.2) — 12KB
• ex32-1.htm (EX-32.1) — 7KB
• 0001493152-24-037777.txt ( ) — 3416KB
• srco-20240731.xsd (EX-101.SCH) — 26KB
• srco-20240731_cal.xml (EX-101.CAL) — 37KB
• srco-20240731_def.xml (EX-101.DEF) — 129KB
• srco-20240731_lab.xml (EX-101.LAB) — 229KB
• srco-20240731_pre.xml (EX-101.PRE) — 179KB
• form10-q_htm.xml (XML) — 408KB

Financial Statements (Unaudited)

Financial Statements (Unaudited) 3 Condensed Consolidated Balance Sheets as of July 31, 2024 (unaudited) and April 30, 2024 3 Condensed Consolidated Statements of Operations for the Three Months ended July 31, 2024, and 2023 (unaudited) 4 Condensed Consolidated Statement of Changes in Deficit for the Three Months ended July 31, 2024 (unaudited) 5 Condensed Consolidated Statements of Cash Flows for the Three Months ended July 31, 2024, and 2023 (unaudited) 6 Notes to Unaudited Condensed Consolidated Financial Statements 7 Item 2.

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

Management's Discussion and Analysis of Financial Condition and Results of Operations 16 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 22 Item 4.

Controls and Procedures

Controls and Procedures 22 PART II. OTHER INFORMATION 24 Item 1.

Legal Proceedings

Legal Proceedings 24 Item 1A.

Risk Factors

Risk Factors 24 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 25 Item 3. Defaults Upon Senior Securities 25 Item 5. Other Information 25 Item 6. Exhibits 25

Signatures

Signatures 26 2 PART I. FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS SPARTA COMMERCIAL SERVICES, INC. CONDENSED CONSOLIDATED BALANCE SHEETS AS OF JULY 31, 2024, AND APRIL 30, 2024 (Unaudited) July 31, April 30. 2024 2024 ASSETS Current Assets Cash and cash equivalents $ 136,492 $ 100,953 Accounts receivable 6,935 6,724 Inventory 4,243 3,004 Loans receivable 211,861 - Total Current Assets 359,531 110,681 Deposits - rent deposit 9,000 9,000 Total assets $ 368,531 $ 119,681 LIABILITIES AND DEFICIT Liabilities: Current Liabilities Accounts payable and accrued expenses $ 1,295,836 $ 1,208,195 Short Term Loan 1,585 1,585 Current portion notes payable 7,293,360 7,168,481 Derivative liabilities 1,119,232 740,940 Total Current Liabilities 9,710,013 9,119,201 Loans payable-related parties 637,077 637,077 Loans payable-net of current portion 98,356 - Loans payable 98,356 - Total Long Term Liabilities 735,433 637,077 Total liabilities 10,445,446 9,756,278 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 July 31, 2024 and April 30, 2024, 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 1,919,157 shares issued and outstanding as of July 31, 2024 and April 30, 2024, respectively 1,919 1,919 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 400,877 shares issued and outstanding as of July 31, 2024 and April 30, 2024, respectively 401

Business

Business General Overview Sparta Commercial Services, Inc. ("Sparta," "we," "us," or the "Company") is a Nevada corporation with headquarters in New York City, (www.spartacommercial.com) . We are a multi-disciplined parent corporation operating across three business sectors – Financial Services, E-Commerce & Mobile Technology, and Health and Wellness, Sparta's roots are in the Powersports industry. The Company provided retail installment loans and leases through authorized motorcycle dealerships in 33 states, with financing provided by institutional lenders. The Company also maintained a full underwriting and servicing platform for its portfolio. Notwithstanding the discontinuance of our initial focus on consumer loans and leases post Lehman and during the 2008 financial crisis, in 2007, the Company introduced a new initiative, Municipal Financing (www.spartamunicipal.com), which has financed over 100 jurisdictions to date. Sparta's Municipal Finance program is available to all nonprofit organizations, institutions, and entities. All nonprofit organizations which adhere to I.R.S. guidelines, including 501 (c) 3 of the Internal Revenue Code, are eligible. Both public nonprofits, also known as public charities supported with publicly collected funds, and private nonprofits, also known as private foundations backed by an individual or business entity, qualify for the program.. Consumers, retailers, municipals, nonprofits, auction houses, banks, and insurance companies scrutinize title history reports for the vital information needed and factored into crucial business decisions affecting the bottom line. Vehicle History Reports are a staple of Sparta's E-Commerce Technology subsidiary iMobile Solutions, Inc. Whether a vehicle is intended for business or recreational use, Sparta's Vehicle History Reports are highly regarded for accuracy and completeness. They have been sold across all 50 states and in 62 countries worldwide. They provide a trusted layer of assura

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