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Sparta Commercial Services, Inc. has submitted its 10-Q filing for the quarterly period ended January 31, 2025.
The filing details the company's financial performance, noting total revenues of $168,357 for the nine months ended January 31, 2025, compared to $151,433 for the same period in 2024. This increase is attributed to a rise in merchant financing fees and sales of wellness products.
Operating expenses were reported at $1,006,082 for the nine months ended January 31, 2025, compared to $866,886 for the same period in 2024. The increase is primarily due to higher compensation and consulting fees.
The company reported a net loss attributable to common stockholders of $1,791,717 for the nine months ended January 31, 2025, compared to a net loss of $675,291 for the same period in 2024. The increased loss is primarily due to changes in the valuation of derivative liabilities.
Sparta's balance sheet shows an accumulated deficit of $68,587,067 as of January 31, 2025, with a working capital deficit of $10,064,030. The company's cash balance and revenue are not sufficient to cover operating expenses for the next twelve months, raising substantial doubt about its ability to continue as a going concern.
The company is actively pursuing additional equity financing through discussions with investment bankers and private investors to improve liquidity.
Sparta's business operations span three sectors: Financial Services, E-Commerce & Mobile Technology, and Health and Wellness. The company continues to develop its Municipal Financing program and offers various vehicle history reports through its subsidiary iMobile Solutions, Inc.
Sparta Crypto, Inc., a subsidiary established in September 2020, aims to connect digital currency users with sellers of goods and services. The company has also launched a cryptocurrency payment gateway, SpartaPayIQ.
The filing also highlights the company's ongoing efforts to address material weaknesses in internal controls over financial reporting, including the lack of documented policies and procedures and the absence of an audit committee.
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 March 25, 2025. To report an error, please email earnings@qz.com.