Mon, Sep 23, 5:03 PM (88 days ago)
For the quarter ending July 31, 2024, Sparta Commercial Services, Inc. reported revenues of $41,551, a decline of 33% from $62,279 in the same period last year, primarily due to decreased information technology revenues. Operating expenses increased by 12% to $376,762, driven by higher compensation and consulting costs. The company incurred a net loss of $964,516, significantly up from a loss of $208,634 in the prior year, influenced by substantial changes in derivative liabilities. Total assets rose significantly to $368,531, largely due to increased cash and loans receivable. However, liabilities also surged to $10,445,446, leading to a working capital deficit of $9,350,482 and raising concerns about the company's going concern status. The cash flow from operations was negative at $449,461, though financing activities provided $485,000. Management is actively seeking additional equity financing to address liquidity issues, emphasizing the uncertainty of future operations and the need for substantial capital to sustain the business over the next twelve months. The company continues to face risks related to its ability to generate revenues and manage existing debts.