Sparta Commercial Services Files 10-Q for Q2 FY25

TL;DR

**Sparta Commercial Services (SRCO) filed its Q2 FY25 10-Q. Financials and operations detailed.**

AI Summary

Sparta Commercial Services, Inc. filed its 10-Q for the period ending October 31, 2024. The filing covers the second quarter of fiscal year 2025. Key financial data and business operations for this period are detailed within the report.

Why It Matters

This 10-Q filing provides investors with a crucial update on Sparta Commercial Services' financial performance and operational status for the second quarter of fiscal year 2025.

Risk Assessment

Risk Level: medium — As a 10-Q filing, it contains detailed financial information that could reveal risks or opportunities, necessitating careful review by investors.

Key Numbers

• Q2 FY25 — Fiscal Quarter (Reporting period for this 10-Q filing.)
• 10-Q — Filing Type (Standard quarterly report filed with 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
• 20241031 (date) — Period of Report
• 20241223 (date) — Filing Date

FAQ

Filing Documents

• form10-q.htm (10-Q) — 810KB
• ex31-1.htm (EX-31.1) — 11KB
• ex31-2.htm (EX-31.2) — 11KB
• ex32-1.htm (EX-32.1) — 6KB
• 0001493152-24-051860.txt ( ) — 3820KB
• srco-20241031.xsd (EX-101.SCH) — 28KB
• srco-20241031_cal.xml (EX-101.CAL) — 39KB
• srco-20241031_def.xml (EX-101.DEF) — 139KB
• srco-20241031_lab.xml (EX-101.LAB) — 241KB
• srco-20241031_pre.xml (EX-101.PRE) — 191KB
• form10-q_htm.xml (XML) — 493KB

Financial Statements (Unaudited)

Financial Statements (Unaudited) 3 Condensed Consolidated Balance Sheets as of October 31, 2024 (unaudited) and April 30, 2024 3 Condensed Consolidated Statements of Operations for the Three Months ended October 31, 2024, and 2023 (unaudited) 4 Condensed Consolidated Statement of Changes in Deficit for the Three Months ended October 31, 2024 (unaudited) 5 Condensed Consolidated Statements of Cash Flows for the Three Months ended October 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 OCTOBER 31, 2024, AND APRIL 30, 2024 (Unaudited) October 31, April 30. 2024 2024 ASSETS Current Assets Cash and cash equivalents $ 93,840 $ 100,953 Accounts receivable 3,081 6,724 Inventory 6,163 3,004 Loans receivable 523,766 - Total Current Assets 626,850 110,681 Deposits - rent deposit 9,000 9,000 Total assets $ 635,850 $ 119,681 LIABILITIES AND DEFICIT Liabilities: Current Liabilities Accounts payable and accrued expenses $ 1,318,643 $ 1,208,195 Short Term Loan 1,585 1,585 Current portion notes payable 7,485,493 7,168,481 Loans payable-related parties 635,319 637,077 Derivative liabilities 1,019,644 740,940 Total Current Liabilities 10,460,684 9,756,278 Notes payable- net of current portion 341,829 - Total Long Term Liabilities 341,829 - Total liabilities 10,802,513 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 October 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 October 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 October 31, 2024 and April 30, 2024, respectively 401 401 Preferred stock

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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View this 10-Q filing on SEC EDGAR