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Sparta Commercial Services, Inc. has submitted its 10-Q filing for the quarterly period ended October 31, 2024.
The filing details the company's financial performance, showing total revenues of $89,359 for the six months ending October 31, 2024, compared to $114,697 in the same period the previous year. The decrease in revenue is primarily attributed to a reduction in mobile application fees.
Operating expenses increased to $748,812 during the six months ended October 31, 2024, from $619,883 in the same period of 2023. The increase is primarily due to higher consulting fees and compensation costs.
The company reported a net loss attributable to common stockholders of $1,380,705 for the six months ended October 31, 2024, compared to a net loss of $575,734 in the previous year. This increase in net loss is largely due to changes in the valuation of derivative liabilities.
Sparta Commercial Services, Inc. continues to face liquidity challenges, with an accumulated deficit of $68,176,055 as of October 31, 2024. The company is actively seeking additional financing to support its operations.
The filing highlights Sparta's ongoing efforts to expand its business operations across its three sectors: Financial Services, E-Commerce & Mobile Technology, and Health and Wellness.
Sparta's management acknowledges the existence of material weaknesses in internal controls over financial reporting, including a lack of documented policies and procedures and no effective separation of duties.
The company remains focused on addressing these internal control issues while pursuing growth opportunities and additional financing to improve its financial position.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Sparta Commercial Servs quarterly 10-Q report dated December 23, 2024. To report an error, please email earnings@qz.com.