UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒	QUARTERLY REPORT according to SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended ~~January~~July 31, 2025

☐	TRANSITION REPORT according to SECTION 13 OR 15(d) OF THE EXCHANGE ACT

For the transition period from ________ to ___________.

Commission file number: 0-9483

SPARTA COMMERCIAL SERVICES, INC.

(Exact name of registrant as specified in its charter)

Nevada		30-0298178
(State or other jurisdiction of		(I.R.S. Employer
incorporation or organization)		Identification No.)

555 Fifth Avenue, 14th Floor, New York, NY 10017

(Address of principal executive offices) (Zip Code)

(212) 239-2666

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol		Name of each exchange on which registered
Common stock, $.001 par value		SRCO		~~Pink Open Market~~OTCQB

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒ Yes ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted and posted pursuant to Rule 504 of Regulation S-T (§229.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to file such files). ☒ Yes ☐ No

Indicate by check mark whether the registrant is a large, accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large, accelerated filer,” “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large, accelerated filer ☐ Accelerated filer ☐ Non-accelerated filer ☐ Smaller reporting company ☒ (Do not check if a smaller reporting company) Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes ☒ No

As of ~~March~~September 2519, 2025, we had 3942,~~664~~444,~~351~~ 506 shares of common stock issued and outstanding.

SPARTA COMMERCIAL SERVICES, INC.

FORM 10-Q

FOR THE QUARTER ENDED ~~January~~July 31, 2025

TABLE OF CONTENTS

		Page
PART I.	FINANCIAL INFORMATION	3
Item 1.	Financial Statements (Unaudited)	3
	Condensed Consolidated Balance Sheets as of January 31, 2025 (unaudited) and April 30, 2024	3
	Condensed Consolidated Balance Sheets as of July 31, 2025 (unaudited) and April 30, 2025	3
	Condensed Consolidated Statements of Operations for the Three and Nine Months ended January 31, 2025, and 2024 (unaudited)	4
	Condensed Consolidated Statements of Operations for the Three Months ended July 31, 2025, and 2024 (unaudited)	4
	Condensed Consolidated Statement of Changes in Deficit for the Nine Months ended January 31, 2025 (unaudited)	5
	Condensed Consolidated Statement of Changes in Stockholders’ Deficit for the Three Months ended July 31, 2025 (unaudited)	5
	Condensed Consolidated Statements of Cash Flows for the Nine Months ended January 31, 2025, and 2024 (unaudited)	6
	Condensed Consolidated Statements of Cash Flows for the Three Months ended July 31, 2025, and 2024 (unaudited)	6
	Notes to Unaudited Condensed Consolidated Financial Statements	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	1617
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	2225
Item 4.	Controls and Procedures	2225
PART II.	OTHER INFORMATION	2425
Item 1.	Legal Proceedings	2427
Item 1A.	Risk Factors	2427
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	2528
Item 3.	Defaults Upon Senior Securities	2528
Item 5.	Other Information	2528
Item 6.	Exhibits	2528
Signatures		2629

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

SPARTA COMMERCIAL SERVICES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

AS OF ~~JANUARY~~JULY 31, 2025, AND APRIL 30, ~~2024~~2025

(Unaudited)

	January 31,			April 30.
	July 31,			April 30,
	2025			~~2024~~2025
		(Unaudited)			*
ASSETS
Current Assets
Cash and cash equivalents	$	4945,~~464~~332		$	~~100~~131,~~953~~003
Accounts receivable		124,~~431~~993			65,~~724~~167
Inventory		4,~~120~~607			34,~~004~~607
Loans receivable (including accrued interest) (Note H)		751,057			-
Other current assets		786,314			606,802
Total Current Assets		~~817~~841,~~072~~246			~~110~~747,~~681~~579
Deposits - rent deposit		9,000			9,000
Rent deposit		9,000			9,000
Total assets	$	~~826~~850,~~072~~246		$	~~119~~756,~~681~~579
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Liabilities:
Current Liabilities
Accounts payable and accrued expenses	$	1,~~323~~362,~~964~~297		$	1,~~208~~333,~~195~~852
Short Term Loan		1,585			1,585
Current portion notes payable		78,~~714~~394,~~160~~053			7,~~168~~973,~~481~~762
Loans payable-related parties		632,833			637,077
Derivative liabilities		1,044,284			1,007,598
Derivative liabilities		1,208,560			740,940
Total Current Liabilities		10,802,219			10,316,797
Total Current Liabilities		10,881,102			9,756,278
Long Term Liabilities
Notes payable- net of current portion		396,614			-
Loans payable-related parties		639,748			636,233
Total Long Term Liabilities		396,614			-
Notes payable- net of current portion		302,315			396,614
Total liabilities		11,277,716			9,756,278
Total Long Term Liabilities		942,063			1,032,847
Commitments and Contingencies (Note I)		-			-
Total liabilities		11,744,282			11,349,644
Stockholders’ Deficit:
Preferred stock A, $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 January 31, 2025 and April 30, 2024, respectively	$	12,500			12,500
Preferred stock A, $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, 2025, and April 30, 2025, 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,1,907,157 and 1,919,157 shares issued and outstanding as of January 31, 2025 and April 30, 2024, respectively		1,907			1,919
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, 1,953,157 and 1,953,157 shares issued and outstanding as of July 31, 2025, and April 30, 2025, respectively		1,953			1,953
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, 370,877 and 400,877 shares issued and outstanding as of January 31, 2025 and April 30, 2024, respectively		371			401
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, 773,548 and 773,548 shares issued and outstanding as of July 31, 2025, and April 30, 2025, respectively		774			774
Preferred stock, value		371			401
Common stock, $0.001 par value; 750,000,000 shares authorized, and 41,502,464 and 40,133,669 shares issued and outstanding as of July 31, 2025, and April 30, 2025, respectively		41,503			40,134
Common stock, $0.001 par value; 750,000,000 shares authorized, and 38,273,288 and 29,495,189 shares issued and outstanding as of January 31, 2025 and April 30, 2024, respectively		38,273			29,495
Common stock to be issued 34,201,299 and 33,612,875 as of July 31, 2025, and April 30, 2025, respectively		34,202			33,613
Common stock to be issued 34,310,724 and 33,395,883 as of January 31, 2025 and April 30, 2024, respectively		36,153			33,396
Additional paid-in-capital		57,392,957			57,221,495
Additional paid-in-capital		56,652,273			55,870,123
Accumulated deficit		(69,401,313	)		(68,918,984	)
Additional paid-in-capital- reserves		384,152			204,385
Total stockholders’ deficit		(11,917,424	)		(11,608,515	)
Accumulated deficit		(68,587,067	)		(66,795,350	)
Non-controlling interest		1,023,388			1,015,450
Total deficiency in stockholders’ equity		(11,461,438	)		(10,643,131	)
Total Deficit		(10,894,036	)		(10,593,065	)
Non-controlling interest		1,009,794			1,006,534
Total Liabilities and Stockholders’ Deficit	$	850,246		$	756,579
Total stockholders’ deficit		(10,451,644	)		(9,636,597	)
Total liabilities and stockholders’ deficit	$	826,072		$	119,681

Derived from audited information

See accompanying notes to unaudited condensed consolidated financial statements.

SPARTA COMMERCIAL SERVICES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

FOR THE THREE ~~AND NINE~~ MONTHS ENDED ~~JANUARY~~JULY 31, 2025, AND 2024

(Unaudited)

	For the three months ended January 31,						For the nine months ended January 31,
	2025			2024
	2025			2024			2025			2024
	For the Three Months Ended July 31,
Revenue
	2025			2024
Information technology	$	25,599		$	30,071		$	87,638		$	128,142
Revenue
Wellness products		15,172			6,665			26,354			23,291
Information technology	$	32,768		$	34,344
Merchant financing		38,227			-			54,365			-
Wellness products		11,330			5,062
Total Revenue		78,998			36,736			168,357			151,433
Merchant financing		52,590			2,145
Cost of goods sold		(7,448	)		(8,010	)		(20,685	)		(31,069	)
Total Revenue		96,688			41,551
Gross profit	$	71,550		$	28,725		$	147,672		$	120,363
Less Cost of goods sold		(8,472	)		(8,583	)
Operating expenses:
Gross profit	$	88,216		$	32,968
Compensation and related costs		128,027			128,229			516,223			428,021
Operating expenses:
Accounting and legal Fees		11,300			6,271			59,190			51,921
Compensation and related costs		193,649			214,130
Consulting fees		58,085			15,780			237,460			50,670
Accounting and legal Fees		29,525			24,220
Rent and lease		18,000			18,000			54,000			54,000
Consulting fees		66,865			74,060
General office expenses		41,858			78,722			139,209			282,273
Rent and lease		18,000			18,000
Total operating expenses		257,270			247,003			1,006,082			866,886
General office expenses		59,510			46,352
Loss from operations	$	(185,720	)	$	(218,278	)	$	(858,410	)	$	(746,523	)
Total operating expenses		367,549			376,762
Other income (expense):
Loss from operations	$	(279,333	)	$	(343,794	)
Commission on Municipal Bonds	$	8,842		$	8,680		$	18,835		$	12,577
Other (income) expense:
Financing costs		(40,347	)		(149,517	)		(493,257	)		(434,385	)
Commission on Municipal Bonds	$	(9,624	)	$	(2,504	)
Write back of convertible notes		-			97,505			-			158,294
Interest Expense on notes		167,796			244,934
(Loss) gain in changes in fair value of derivative liability		(188,916	)		165,567			(467,620	)		342,940
Loss in changes in fair value of derivative liability		36,686			378,292
Other income		-200			-			~~11,995~~
Total other income (expense)	$	(220,421	)	$	122,235		$	(930,047	)	$	79,426
Total other expense	$	195,058		$	620,722
Net loss		(~~406~~474,~~141~~391	)		(96964,~~043~~516	)		~~(1,788,457~~	)		~~(667,097~~	)
Net profit attributable to minority shareholders		(4,871	)		(3,514	)		(3,260	)		(8,195	)
Net profit (loss) attributable to minority shareholder		7,938			(1,343	)
Preferred dividend		-			-			-			-
Net loss attributed to common stockholders	$	(~~411~~482,~~012~~329	)	$	(99963,~~556~~173	)	$	~~(1,791,717~~	)	$	~~(675,291~~	)
Basic and diluted loss per share:
Loss from continuing operations attributable to Sparta Commercial Services, Inc. common stockholders		(0.01	)		(0.0003	)		~~(0.05~~	)		~~(0.04~~	)
Net loss attributable to Sparta Commercial Services, Inc. common stockholders	$	(0.01	)	$	(0.~~004~~03	)	$	~~(0.05~~	)	$	~~(0.037~~	)
Weighted average shares outstanding		3240,~~540~~733,~~194~~568			2530,~~432~~356,~~999~~923			~~33,948,761~~			~~18,074,511~~

See accompanying notes to unaudited condensed consolidated financial statements.

SPARTA COMMERCIAL SERVICES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ DEFICIT

~~For the~~FOR ~~nine~~THE ~~months~~THREE ~~ended~~MONTHS ~~January~~ENDED JULY 31, 2025, and ~~January 31,~~ 2024

	Shares		Amount		Shares			Amount			Shares			Amount			Shares		Amount		Shares			Amount			(Warrants)		Capital			Deficit			Interest			Total
																											Additional
	Series A				Series C						Series D										Common Stock						Paid in		Additional						Non
	Preferred Stock				Preferred Stock						Preferred Stock						Common Stock				to be issued						Capital		Paid in			Accumulated			controlling
	Shares		Amount		Shares			Amount			Shares			Amount			Shares		Amount		Shares			Amount			(~~Reserves~~Warrants)		Capital			Deficit			Interest			Total
Balance April 30, 2024		125		12,500		1,919,157			1,919			400,877			401			29,495,189		29,495		33,395,883			33,396			204,385		55,870,123			(66,795,350	)		1,006,534		$	(9,636,597	)
Balance April 30, 2025		125	$	12,500		1,953,157		$	1,953			773,548			774			40,133,669		40,134		33,612,875			33,613			431,661		56,789,834			(68,918,984	)		1,015,450			(10,593,065	)
Subscribed shares issued		-		-		-			-			-			-			~~408~~781,~~250~~986		~~408~~782		(~~408~~781,~~250~~986	)		(~~408~~782	)		-		-			-			-			-
Issuance of common stock for cash		-		-		-			-			-			-			~~1,971,673~~-		~~1,972~~-		1,~~813~~320,~~590~~410			1,~~814~~321			-25,869		~~331~~67,~~214~~810			-			-			~~335~~95,000
Issuance of common stock for services		-		-		-			-			-			-			~~200~~450,000		~~200~~450		-			-			-		2253,~~800~~985			-			-			2354,~~000~~435
Conversion of notes payable		-		-		-			-			-			-			750,000		750		-			-			-		74,250			-			-			75,000
Issuance of common stock for settlement of liability		-		-		-			-			-			-			136,809		137		-			-			-		19,848			-			-			19,985
Warrants issued on equity issuance		-		-		-			-			-			-			-		-		-			-			72,558		-			-			-			72,558
Commitment Shares not yet issued		-		-		-			-			-			-			-		-		50,000			50			-		3,950			-			-			4,000
Commitment Shares not yet issued		-		-		-			-			-			-			-		-		200,000			200			-		18,440			-			-			18,640
Net Income (loss)		-		-		-			-			-			-			-		-		-			-			-		-			(482,329	)		7,938			(474,391	)
Net loss		-		-		-			-			-			-			-		-		-			-			-		-			(963,173	)		(1,343	)		(964,516	)
Balance July 31, 2025		125	$	12,500		1,953,157		$	1,953			773,548		$	774			41,502,464	$	41,503		34,201,299		$	34,202		$	457,529	$	56,935,428		$	(69,401,313	)	$	1,023,388		$	(10,894,036	)
Balance July 31, 2024		125		12,500		1,919,157			1,919			400,877			401			32,825,112		32,825		35,001,223			35,002			276,943		56,316,827			(67,758,523	)		1,005,191			(10,076,915	)
Subscribed shares issued		-		-		-			-			-			-			2,826,908		2,827		(2,826,908	)		(2,827	)		-		-			-			-			-
Issuance of common stock for cash		-		-		-			-			-			-			50,014		50		1,315,923			1,999					210,451			-			-			212,500
Conversion of notes payable		-		-		-			-			-			-			100,000		100		-			-			-		9,900			-			-			10,000
Default shares issued		-		-		-			-			-			-			254,847		255		-			-			-		-			-			-			255
Warrants issued on equity issuance		-		-		-			-			-			-			-		-		-			-			50,281		-			-			-			50,281
Issuance of common stock for services		-		-		-			-			-			-			153,956		154		-			-			-		54,862			-			-			55,016
Net loss		-		-		-			-			-			-			-		-		-			-			-		-			(417,532	)		(268	)		(417,800	)
Balance October 31, 2024		125	$	12,500		1,919,157		$	1,919			400,877		$	401			36,210,837	$	36,211		33,490,238		$	34,174		$	327,224	$	56,592,040		$	(68,176,055	)	$	1,004,923		$	(10,166,663	)
Subscribed shares issued		-		-		-			-			-			-			633,095		633		(633,095	)		(633	)		-		-			-			-			-
Issuance of common stock for cash		-		-		-			-			-			-			863,356		863		1,453,581			2,612					183,597			-			-			243,999
Conversion of notes payable		-		-		-			-			-			-			-		-		-			-			-		-			-			-			-
Default shares issued		-		-		-			-			-			-			410,000		410		-			-			-		(410	)		-			-			-
Warrants issued on equity issuance		-		-		-			-			-			-			-		-		-			-			56,928		(122,839	)		-			-			(122,839	)
Issuance of common stock for services		-		-		-			-			-			-			-		-		-			-			-		-			-			-			-
Conversion of preferred shares		-		-		(12,000	)		(12	)		(30,000	)		(30	)		156,000		156		-			-			-		(114	)		-			-			-
Net loss		-		-		-			-			-			-			-		-		-			-			-		-			(411,012	)		(4,871	)		(406,141	)
Balance January 31, 2025		125	$	12,500		1,907,157		$	1,907			370,877		$	371			38,273,288	$	38,273		34,310,724		$	36,153		$	384,152	$	56,652,274		$	(68,587,067	)	$	1,009,794		$	(10,451,644	)
Balance April 30, 2023		125	$	12,500		1,979,157		$	1,979			937,701		$	938			23,045,205	$	23,045		23,704,788		$	23,705		$	-	$	54,872,206		$	(66,150,857	)	$	969,295		$	(10,247,189	)
Issuance of common shares for cash		-		-		-			-			-			-			-		-		1,132,910			1,133			-		103,867			-			-			105,000
Stocks issued as a note holder incentive		-		-		-			-			-			-			75,000		75		-			-			-		6,900			-			-			6,975
Issuance of shares for services		-		-		-			-			-			-			830,906		831		(830,906	)		(831	)		-		69,169			-			-			69,169
Net loss		-		-		-			-			-			-			-		-		-			-			-		-			(211,343	)		2,709			(208,634	)
Balance July 31, 2023		125		12,500		1,979,157			1,979			937,701			938			23,951,111		23,951		24,006,792			24,007			-		55,052,142			(66,362,200	)		972,004			(10,274,679	)
Issuance of common shares for cash		-		-		-			-			-			-			-		-		988,000			988			-		64,012			-			-			65,000
Stocks issued as a note holder incentive		-		-		-			-			-			-			-		-		54,000			54			-		4,946			-			-			5,000
Issuance of shares for services		-		-		-			-			-			-			25,000		25		-			-			-		3,850			-			-			3,875
Stock issued for equity		-		-		-			-			-			-			346,995		347		(346,995	)		(347	)		-		24,653			-			-			24,653
Net loss		-		-		-			-			-			-			-		-		-			-			-		-			(364,391	)		1,972			(362,419	)
Balance October 31, 2023		125	$	12,500		1,979,157		$	1,979			937,701		$	938			24,323,106	$	24,323		24,701,797		$	24,702		$	-	$	55,149,603		$	(66,726,591	)	$	973,976		$	(10,538,570	)
Balance		125	$	12,500		1,979,157		$	1,979			937,701		$	938			24,323,106	$	24,323		24,701,797		$	24,702		$	-	$	55,149,603		$	(66,726,591	)	$	973,976		$	(10,538,570	)
Conversion of notes payables																		900,000		900		886,000			886			-		148,214									150,000
Conversion of preferred shares		-		-		(60,000	)		(60	)		(536,824	)		(537	)		767,578		768		(170,754	)		(171	)		-											-0
Issuance of shares for services																		149,989		151								-		23,340									23,490
Issuance for cash received																									904			-		57,095									57,999
Net loss																																	(99,556	)		3,514			(96,043	)
Adjustments																																	35,017						35,017
Balance January 31, 2024		125	$	12,500		1,919,157		$	1,919			400,877		$	401			26,141,023	$	26,141		25,416,783		$	26,662			-	$	55,378,252		$	(66,791,131	)	$	977,489		$	(10,368,107	)
Balance		125	$	12,500		1,919,157		$	1,919			400,877		$	401			26,141,023	$	26,141		25,416,783		$	26,662			-	$	55,378,252		$	(66,791,131	)	$	977,489		$	(10,368,107	)

	Shares		Amount		Shares		Amount		Shares		Amount		Shares		Amount		Shares			Amount			(Warrants)		Capital		Deficit			Interest			Total
																							Additional
	Series A				Series C				Series D								Common Stock						Paid in		Additional					Non
	Preferred Stock				Preferred Stock				Preferred Stock				Common Stock				to be issued						Capital		Paid in		Accumulated			controlling
	Shares		Amount		Shares		Amount		Shares		Amount		Shares		Amount		Shares			Amount			(Warrants)		Capital		Deficit			Interest			Total
Balance April 30, 2024		125	$	12,500		1,965,157	$	1,965		803,548	$	804		29,495,189	$	29,495		33,395,883		$	33,396		$	204,385	$	55,869,674	$	(66,795,350	)	$	1,006,534		$	(9,636,597	)
Balance		125	$	12,500		1,965,157	$	1,965		803,548	$	804		29,495,189	$	29,495		33,395,883		$	33,396		$	204,385	$	55,869,674	$	(66,795,350	)	$	1,006,534		$	(9,636,597	)
Subscribed shares issued		-		-		-		-		-		-		408,250		408		(408,250	)		(408	)		-		-		-			-			-
Issuance of common shares for cash		-		-		-		-		-		-		1,971,673		1,972		1,813,590			1,814			-		331,214		-			-			335,000
Issuance of common shares for services		-		-		-		-		-		-		200,000		200		-			-			-		22,800		-			-			23,000
Conversion of notes payable		-		-		-		-		-		-		750,000		750		-			-			-		74,250		-			-			75,000
Warrants issued on equity issuance		-		-		-		-		-		-		-		-		-			-			72,558		-		-			-			72,558
Commitment Shares not yet issued		-		-		-		-		-		-		-		-		200,000			200			-		18,440		-			-			18,640
Net loss		-		-		-		-		-		-		-		-		-			-			-		-		(963,173	)		(1,343	)		(964,516	)
Net Income (loss)		-		-		-		-		-		-		-		-		-			-			-		-		(963,173	)		(1,343	)		(964,516	)
Balance July 31, 2024		125	$	12,500		1,965,157	$	1,965		803,548	$	804		32,825,112	$	32,825		35,001,223		$	35,002		$	276,943	$	56,316,378	$	(67,758,523	)	$	1,005,191		$	(10,076,915	)
Balance		125	$	12,500		1,965,157	$	1,965		803,548	$	804		32,825,112	$	32,825		35,001,223		$	35,002		$	276,943	$	56,316,378	$	(67,758,523	)	$	1,005,191		$	(10,076,915	)

See accompanying notes to unaudited condensed consolidated financial statements.

SPARTA COMMERCIAL SERVICES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

~~for the~~FOR ~~nine~~THE ~~months~~THREE ~~ended~~MONTHS ~~January~~ENDED JULY 31, 2025, and ~~January 31,~~ 2024

(UNAUDITED)

	Nine Months Ended
	2025			2024
	For the Three Months Ended July 31,
	2025			2024
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income (loss)	$	(1,788,457	)	$	(667,097	)
Net loss	$	(474,391	)	$	(964,516	)
Adjustments to reconcile net loss to net cash used in operating activities:
Loss (Gain) from change in fair value of derivative liabilities		467,620			(342,940	)
Loss from change in fair value of derivative liabilities		36,686			378,292
Non-cash financing cost		179,767			434,385
Financing cost		1,867			72,558
Shares issued for services		7854,~~016~~435			4823,~~144~~000
Stocks issued as note holder incentive		~~18,895~~-			-18,640
Forgiveness of debt		-			(158,294	)
Changes in operating assets and liabilities
Accounts receivable		~~(5,707~~174	)		(~~2,890~~211	)
Inventory		~~(1,116~~-	)		(31,~~831~~239	)
Loans receivable		(751,057	)		-
Other assets		(179,512	)		(211,861	)
Accounts payable and accrued expenses		~~622~~214,~~062~~070			~~(110~~235,~~969~~876	)
Accrued interest		-			304,249
Net cash used in operating activities	$	(346,671	)	$	(449,461	)
Net cash used in operating activities	$	(1,179,977	)	$	(499,244	)
CASH FLOWS FROM INVESTING ACTIVITIES:	$	-		$	-
CASH FLOWS FROM FINANCING ACTIVITIES
Bank overdraft	$	-		$	(54,410	)
Proceeds from sale of stock	$	95,000		$	335,000
Sale of stock for cash		611,732			301,043
Net Proceeds from notes payable		166,000			150,000
Stocks issued for equity		-			-
Net cash provided by financing activities	$	261,000		$	485,000
Net Proceeds from notes payable		525,000			254,000
Net (decrease) increase in cash	$	(85,671	)	$	35,539
Repayments of notes payable		(4,000	)
Cash and cash equivalents, beginning of period		131,003			100,953
Repayment of related party loans		(4,244	)		-
Cash and cash equivalents , end of period	$	45,332		$	136,492
Net cash provided by financing activities	$	1,128,488		$	500,633
Net (decrease) increase in cash	$	(51,489	)	$	1,389
Cash and cash equivalents, beginning of period		100,953			4,028
Cash and cash equivalents, end of period	$	49,464		$	5,417
Cash paid for:
Interest	$	-300		$	-
Income taxes	$	-		$	-
NON CASH FINANCING ACTIVITIES:
Conversion of notes payable	$	85,000		$	-
Non-cash financing cost	$	179,767		$	-
Conversion of preferred shares	$	156		$	-
Subscribed shares issued	$	3,868		$	-
Default shares issued	$	655		$	-

See accompanying notes to unaudited condensed consolidated financial statements.

SPARTA COMMERCIAL SERVICES, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

~~JANUARY~~JULY 31, 2025

(UNAUDITED)

NOTE A – SUMMARY OF ~~SIGNIFICANT~~ ACCOUNTING POLICIES

A summary of the significant accounting policies applied in the preparation of the accompanying ~~unaudited condensed consolidated~~ financial statements follows.

Business

General Overview

Sparta Commercial Services, Inc. (“Sparta,” “we,” “us,” or the “Company”) is a Nevada corporation with headquarters in New York, ~~City~~New York, (and a corporate website at www.spartacommercial.com), with subsidiary addresses in Stamford, CT. We ~~are~~operate as a multi-disciplined parent corporation ~~operating~~ across ~~three~~ four primary business sectors: –FinTech Services, Financial Services, E-Commerce & Mobile Technology, and Health and Wellness. Our operations are conducted through wholly owned subsidiaries and joint ventures that provide specialized financing products, technology-driven solutions, and consumer wellness offerings.

Sparta’s ~~roots~~origins are in the Powersports ~~industry.~~consumer ~~The~~finance ~~Company~~industry, ~~provided~~historically providing retail installment loans and leases through authorized motorcycle dealerships in 33 states, ~~with~~supported by financing ~~provided~~lines byof credit from institutional lenders. ~~The~~We ~~Company~~built ~~also~~and maintained a full underwriting and servicing platform for ~~its~~our portfolio. ~~Notwithstanding~~until ~~the~~discontinuing ~~discontinuance of~~ our ~~initial focus on~~ consumer loans and leases ~~post~~business ~~Lehman~~after ~~and during~~ the 2008 ~~financial~~ 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 lineI. ~~Vehicle History Reports are a staple of Sparta’s~~ ~~E-Commerce~~FINTECH 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 assurance to vehicle buyers and are available on our websites as well as on various dealership websites. They include Cyclechex (Motorcycle History Reports at www.cyclechex.com), RVchex (Recreational Vehicle History Reports at www.rvchex.com), and Truckchex (Heavy Duty Truck History Reports at www.truckchex.com).SERVICES

~~The~~Agoge ~~Company’s~~Global ~~E-Commerce and Mobile Technology subsidiary name change to iMobile Solutions~~USA, Inc., ~~from~~– ~~Specialty Reports, Inc., in 2016, signifies its ever~~Cross-~~broadening~~Border ~~service~~Trade ~~offerings~~Finance ~~in the evolving technology landscape. With iMobile App (www.imobileapp.com), the Company provides mobile technology services, including web~~ and ~~mobile~~Blockchain application creation, development, and management for a wide range of businesses to increase revenue, build brand recognition, and improve customer engagement. Our ever-broadening business base of mobile applications includes vehicle dealerships and racetracks, private clubs and country clubs, schools and entertainment venues, restaurants, grocery stores, and various other merchant types. (www.imobileapp.com/app-gallery). The Company also designs, launches, maintains, and hosts websites for businesses incorporating SEO (search engine optimization), social media marketing, and online reviews to improve their presence online.Solutions

WeFormed ~~provide~~in ~~specific,~~December ~~tailored~~2022 ~~action plans for our clients’ websites that include services such~~ as ~~eCommerce,~~a ~~CRM~~subsidiary ~~(Customer~~of ~~Relationship Management)~~Sparta ~~development~~Crypto, ~~and integration~~Inc. ~~This custom software helps businesses communicate with customers and can also be used for employees to communicate internally. The CRM software can be web-based~~, ~~integrated~~Agoge ~~with~~Global ~~a mobile app~~USA, ~~or both~~Inc. We(“Agoge”) ~~work~~was ~~with~~established ~~clients~~ to ~~understand~~address inefficiencies ~~their~~in ~~unique~~cross-border ~~needs~~trade ~~and~~between ~~incorporate~~ the ~~features~~United ~~and~~States ~~requirements that are most important to them~~ and ~~will facilitate their business growth and success~~Brazil. ~~Correspondingly,~~Agoge ~~the~~entered ~~Company~~into ~~designs~~a ~~and~~joint ~~builds~~venture custom kitchen ordering software for independent grocery stores, delicatessens, and other food service businesses. The software can be designed in various ways, including mobile devices and in-store ordering. The kitchen ordering software is enabled with ~~payment~~WeDev ~~integration,~~Group ~~text messaging notification, wireless printing, and other features~~Ltda. ~~iMobile Solutions~~, ~~Inc. provides~~ a ~~turn-key~~Brazilian ~~solution for businesses looking to simplify or streamline their kitchen ordering process. Additionally,~~technology weand ~~offer~~blockchain ~~text~~development ~~messaging services~~firm, ~~which supplement business marketing strategies~~ to ~~gain~~create and ~~retain~~operate ~~brand~~a ~~loyalty~~comprehensive ~~among~~digital ~~its clients, customers, and investors. Our text messaging~~ platform ~~allows~~for ~~clients~~international totrade ~~manage, schedule, and analyze text message performance quickly~~finance.

The joint venture developed EZBroker360, a blockchain-enabled platform utilizing stablecoins and distributed ledger technology to:

- Reduce transaction times from days to hours;

- Lower cross-border payment costs; and

- Improve security, transparency, and auditability.

In addition to payment processing, EZBroker360 provides:

- Staged financing for freightage, customs duties, and taxes;

- Assistance with Brazilian tax and regulatory compliance;

- Import/export documentation preparation;

- Industry introductions and market entry facilitation; and

- Reselling and distribution support in other jurisdictions.

Agoge focuses on financing gaps in trade transactions that are not traditionally served by conventional banks. Since inception, the Company’s loan deployment has reached $2 million, supported by repeat client engagement and organic referrals. Clients, such as Patta Brazil, have reported enhanced cash flow flexibility, increased import volumes, avoidance of demurrage fees, and operational scaling. Patta Brazil’s CEO has credited Agoge’s financing solutions for supporting a projected 50% revenue increase and enabling additional hiring.

~~Sparta’s~~Building ~~response~~on toits ~~the~~technology ~~onset~~foundation, of the ~~COVID-19~~joint ~~pandemic~~venture inhas ~~early~~developed ~~2020~~iGoCards, ~~quickly took shape with thorough investigations into evolving customer trends in health and wellness. As~~ a ~~result,~~virtual wecard ~~expanded New World Health Brands~~ and ~~developed~~expense amanagement ~~new~~platform ~~product~~for ~~line~~globally ~~of natural dietary supplements.~~oriented Inbusinesses. ~~August~~iGoCards ~~2020,~~will weenable ~~launched~~fund anloading ~~online~~via BUSD toor ~~C website: www.newworldhealthbrands.com~~stablecoins, ~~featuring~~incorporate ~~high~~multi-~~quality~~user ~~nutritional supplements~~controls, ~~including~~ ~~vitamins~~ and ~~minerals,~~offer ~~such~~advanced ~~as,~~expense ~~Iodine for children and adults, Boron, copper/Zinc/Selenium, Magnesium, Spermidine, Vitamin~~management ~~B Complex, Vitamin C and PQQ, with more products to come~~features. ~~All~~A ~~health~~planned ~~and~~“Receive” ~~wellness~~capability ~~offerings~~will ~~are~~allow ~~exclusively~~clients ~~sourced and manufactured in the United States and adhere~~ to ~~strict~~manage ~~U.S.~~both ~~standards~~payables and ~~guidelines~~receivables, topositioning ~~ensure~~Agoge ~~the safety and quality of our products. Sparta’s~~as ~~commitment~~a tocomprehensive ~~high~~financial ~~standards~~ecosystem ~~and~~provider ~~transparency~~for isinternational ~~tantamount to being a trusted brand~~commerce.

~~Sparta’s subsidiary, Sparta Crypto, Inc~~II.~~, www.SpartaCrypto.com, was established in September 2020, and is in the process of completing a proprietary~~ ~~state-of-the-art~~FINANCIAL platform designed to connect users of widely adopted digital currencies with sellers of various goods and services. The platform is scheduled to launch in 2023 and the Company can make no assurances that the described plan will reach implementation. In addition, the Company has completed and tested a cryptocurrency payment gateway called SpartaPayIQ, www.SpartaPayIQ.com, which is functional and was formally announced on March 3, 2022.SERVICES

~~Agoge~~b. ~~Global~~Municipal ~~USA, Inc. was formed as a subsidiary of Sparta Crypto, Inc. in December 2022~~ and ~~entered into a Joint Venture Agreement with WeDev Group to facilitate cross~~Non-~~border~~Profit ~~transactions~~Leasing ~~between importers and exporters~~ of ~~goods~~Essential from the U.S. and Brazil. In addition, Agoge Global USA provides business intermediary services to global importers and exporters of goods and services. These services provided through our joint venture agreement with WeDev include, but are not limited to, industry introductions, tax and regulatory compliance assistance, import and export documentation assistance, reselling services in other jurisdictions, and facilitation of cross-border transactions.Equipment

In 2007, we launched our Municipal Financing program (www.spartamunicipal.com), which continues to operate and has provided financing to over 100 jurisdictions nationwide. This program offers equipment financing solutions for local and state government agencies, as well as nonprofit organizations that comply with Internal Revenue Code §501(c)(3). Eligible nonprofits include both public charities and private foundations.

Through this program, we finance essential equipment such as police motorcycles, cruisers, buses, fire trucks, EMS vehicles, and related public safety equipment. We are a preferred financing source for BMW Motorrad USA Police Motors. Financing is offered on a pass-through basis with a Midwest bank. Marketing channels have included direct outreach, trade shows, targeted industry publications, and referrals from manufacturers, dealerships, and existing municipal clients.

III. E-COMMERCE & MOBILE TECHNOLOGY

A. iMobile Solutions, Inc.

Our E-Commerce & Mobile Technology segment operates through iMobile Solutions, Inc. (“iMS”), formerly Specialty Reports, Inc. iMS provides the following:

Mobile Application Development – Through our “iMobileApp” brand (www.imobileapp.com), we create, host, and maintain custom mobile applications for small- and medium-sized businesses across a wide range of industries, including vehicle dealerships, racetracks, private and country clubs, schools, restaurants, grocery stores, and entertainment venues. Applications incorporate advanced features, including geo-fencing, push notifications, inventory display, event management, CRM integration, and multi-location management. Our subscription model includes development, hosting, updates, and optional fully managed marketing services.

Website Design, Hosting, and SEO Services – We design, launch, maintain, and host websites for clients, incorporating search engine optimization (SEO), e-commerce integration, social media connectivity, and online review management. Each engagement includes a tailored marketing action plan.

Custom Software Development – This includes kitchen ordering systems for grocery stores and delicatessens, with payment integration, wireless printing, and text notification features.

Text Messaging Platforms – Our text messaging platform enables clients to create, schedule, and analyze marketing campaigns, improving customer engagement and brand loyalty.

B. Vehicle History Reports

iMS also operates our Specialty Vehicle History Reports business, serving markets not fully addressed by major providers such as CARFAX® or AutoCheck®. Our reports are marketed under:

- Cyclechex – Motorcycle history reports (www.cyclechex.com);

- RVchex – Recreational vehicle history reports (www.rvchex.com); and

- Truckchex – Heavy-duty truck history reports (www.truckchex.com).

These reports contain data such as prior damage, title brands, odometer readings, manufacturer specifications, recall history, and other relevant factors, sourced from governmental and industry databases, including the National Motor Vehicle Title Information System (NMVTIS). They are sold online, through dealer networks, and in over 60 countries.

IV. HEALTH AND WELLNESS

New World Health Brands, Inc.

In August 2020, NWHB begam offering nutritional supplements in response to shifting consumer preferences during the COVID-19 pandemic. Our product line includes high-quality vitamins and minerals—such as iodine, boron, copper/zinc/selenium, magnesium, spermidine, vitamin B complex, vitamin C, and PQQ—sourced and manufactured exclusively in the United States under strict quality standards. Products are sold via our e-commerce website (www.newworldhealthbrands.com) and through marketplaces including Amazon, Walmart, TikTok, eBay, and Etsy. NWHB products serve diverse health needs, from athletic performance and general wellness to anti-aging and skincare.

V. COMPETITIVE POSITIONING

We believe our targeted focus in underserved markets provides distinct competitive advantages:

- Fintech Services – Our staged-based trade finance solution offers specialized financing not widely available from traditional lenders.

- Financial Services – Our municipal leasing program offers custom financing solutions to municipalities, schools, and non-profit organizations nationwide for all of their essential equipment needs.

- E-Commerce & Mobile Technology – Our mobile application and website products provide cost-effective, customizable solutions for small- and medium-sized businesses, backed by industry-specific expertise.

- Vehicle History Reports – Our products address specialty vehicle categories not fully served by the dominant automotive report providers.

- Health and Wellness – Our U.S.-sourced supplement line appeals to consumers seeking premium, transparently sourced products.

We compete on the basis of service quality, niche market focus, and the ability to develop and deploy proprietary technology solutions across multiple industries. of the RV space and do not intend to compete directly with either CarFax® or AutoCheck®.

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements as of ~~January~~July 31, 2025 and for the ~~nine~~three months ended ~~January~~July 31, 2025 ~~and~~, and 2024 have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission, including ~~Form~~ Form 10-Q and Regulation S-K. The information furnished herein reflects all adjustments (consisting of normal recurring accruals and adjustments), which are, in the opinion of management, necessary to fairly present the operating results for the respective periods. Certain information and footnote disclosures normally present in annual financial statements prepared in accordance with accounting principles ~~generally~~ generally accepted in the United States of America have been omitted pursuant to such rules and regulations. The Company believes that the disclosures provided are adequate to make the information presented not misleading.

These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and explanatory notes for the year ended April 30, ~~2024~~2025, as disclosed in the Company’s Form 10-K for that year as filed with the Securities and Exchange Commission on August 1413, ~~2024~~2025.

The results of operations for the ~~nine~~three months ended ~~January~~July 31, 2025, are not necessarily indicative of the results to be expected for any ~~other~~ other interim period or the full year ending April 30, ~~2025~~2026.

Principles of Consolidation

The consolidated financial statements include the accounts of the Company and its majority-owned subsidiaries. All material intercompany transactions and balances have been eliminated in consolidation. The third-party ownership of the Company’s subsidiary is accounted for as noncontrolling interest in the consolidated financial statements. Changes in the noncontrolling interest are reported in the statement of changes in deficit.

Estimates

~~These financial~~The ~~statements~~preparation ~~have~~of ~~been~~the ~~prepared~~financial statements in ~~accordance~~conformity with ~~accounting principles~~ generally accepted inaccounting ~~the~~principles ~~United~~requires ~~States of America, which require~~ management to make estimates and assumptions that affect ~~the~~ certain reported amounts ~~of assets, liabilities,~~ and ~~the~~ disclosures ~~of revenues and expenses for the said period~~. Accordingly, actual results could differ from those estimates.

Revenue Recognition

Revenue is recognized in accordance with Accounting Standards Codification (“ASC”) Revenue from Contracts with Customers. Under ASC 606, the Company recognizes revenue utilizing the following steps: (1) identify the contract with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to each performance obligation in the contract; and (5) recognize revenue when each performance obligation is satisfied.

The Company acts as athe principal in its revenue transactions as it is the primary obligor. The Company’s main source of revenue is comprised of the following:

	●	*Information Technology*-Sparta creates mobile applications (mobile apps) for small and medium-size businesses under the tradename iMobileApp. iMobileApp. Sparta provides Cyclechex Motorcycle History Reports (Cyclechex.com) contain valuable information for consumers, motorcycle dealers, insurers, auction houses, and lenders including verifying the specific make, model, and year of a pre-owned motorcycle. Also, through its websites (www.cyclechex.com) Sparta provides vehicle history report which contain valuable information for consumers, dealers, insurers, auction houses, and lenders. Revenues from mobile app products are generally recognized upon delivery. Revenues from History Reports are typically recognized upon delivery/download. Prepayments received from customers before delivery (if any) are recognized as deferred revenue and recognized upon delivery. The Company records deferred revenues when cash payments are received or due before our performance, including refundable amounts.
	●	Wellness products- Our Wellness products feature high quality dietary supplements, including vitamins and minerals, such as, Iodine for children and adults, Boron, copper/Zinc/Selenium, , Magnesium, Spermidine, Vitamin B Complex, Vitamin C and PQQ. In addition to our B to C website: www.newworldhealthbrands.com, our Wellness products are also offered on on-line marketplaces such as Amazon, Walmart, and Etsy. Revenues from New World Health Brands products are generally recognized upon delivery.
	●	*Merchant financing -* Sparta offers Brazilian importers staged financing and automated payment solutions. The system reduces costly delays, lowers transaction fees, and improves cash flow by enabling importers to pay suppliers, freight, and customs fees in stages—giving them time to sell goods before loans mature. Revenues from merchant financing are recognized monthly based on the outstanding balance of the loans.

The following table presents our revenues disaggregated by revenue source:

SCHEDULE OF DISAGGREGATION REVENUE

	3-months ended				9-months ended
Revenue	July 31, 2025		July 31, 2024
Revenue	Jan 2025		Jan 2024		Jan 2025		Jan 2024
	For the Three Months Ended July 31,
Information technology	$	25,599	$	30,071	$	87,638	$	128,142
	2025		2024
Wellness products		15,172		6,665		26,354		23,291
Information Technology	$	32,768	$	34,344
Merchant financing		38,227		-		54,365		-
Wellness products		11,330		5,062
Total	$	78,998	$	36,736	$	168,357	$	151,433
Merchant financing		52,590		2,145
Total	$	96,688	$	41,551

Revenues from mobile app products and New World Health Brands products are generally recognized upon delivery. Revenues from History Reports are typically recognized upon delivery/download. Prepayments received from customers before delivery (if any) are recognized as deferred revenue and recognized upon delivery. The Company records deferred revenues when cash payments are received or due before our performance, including refundable amounts. Revenues from merchant financing is recognized over the life of the contracts.

Cash Equivalents

All liquid investments with three months or less maturity are cash equivalents for the accompanying financial statements.

Website Development Costs

The Company recognizes website development costs in accordance with ASC 350-50, “Accounting for Website Development Costs.” As such, the Company expenses all costs incurred ~~that~~ relate to the planning and post implementation phases of development of its website. Direct costs incurred in the development phase are capitalized and recognized over the estimated useful life. Costs associated with repair or maintenance for the website are included in cost of net revenues in the current period expenses.

Fair Value Measurements

The Company ~~has~~ adopted ASC 820, “Fair Value Measurements (“ASC 820”).” ASC 820 establishes a three-level fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The ~~scale~~hierarchy gives the highest priority to unadjusted quoted prices in active markets ~~and~~ the lowest priority to unobservable inputs to fair value measurements of certain assets and Liabilities. The three levels of the fair value hierarchy under ASC 820 are described below:

● Level 1 — Quoted prices for identical instruments in active markets. Level 1 assets and liabilities include debt and equity securities, and derivative contracts that are traded in an active exchange market, ~~and~~as well as certain securities that are highly liquid ~~securities~~and are actively traded in over-the-counter markets. ● Level 2 — Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model- derived valuations in which all significant inputs and significant value drivers are observable in active markets. ● Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value measurements. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques based on significant unobservable inputs, as well as management judgments or estimates that are significant to ~~the~~ valuation.

910

This hierarchy requires the Company to use observable market data when available and to minimize the use of unobservable inputs when determining fair value. Observable inputs may not always be available for some products or in certain market conditions.

Income Taxes

We utilize ASC 740, “Income Taxes,” which requires the recognition of deferred tax assets and liabilities for the ~~expected~~ expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred income taxes are recognized for the tax consequences in future years of differences between the tax bases of assets and liabilities and their financial reporting amounts at year-end based on enacted laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income.

The Company recognizes the impact of a tax position in the financial statements only if that position is more likely than not toof ~~be sustained~~being sustained upon examination by taxing authorities, based on the technical merits of the position. Our practice ~~recognizes~~is to recognize interest and/or penalties related to income tax matters in income tax expense.

Stock-Based Compensation

We account for our stock-based compensation under ASC 718 “Compensation–Stock Compensation” using the fair value-based method. Under this method, compensation cost is measured at the grant date based on the value of the award. Itand is recognized over the service period, which is usually the vesting period. This guidance establishes standards for the accounting for transactions in which an entity exchanges its equity instruments for goods or services. It also addresses transactions in which an entity incurs liabilities in exchange for goods or services that are based on the fair value of the entity’s equity instruments, or that may be settled by the issuance of those equity instruments ~~may settle that~~.

We use the fair value method for equity instruments granted to non-employees and use the Black-Scholes model tofor ~~measure~~measuring ~~options’~~the fair value of options. The stock-based fair value compensation is determined as of the date of the grant or the date at which the performance of the services is completed (measurement date) and is recognized over the vesting periods.

Inventories

The Company’s inventories represent finished goods, consisting of available products. They are accounted for using the first-in, first-out (FIFO) method and valued at the lower of cost or net realizable value. Inventory consists of finished goods for the Company’s New World Health business.

Property and Equipment

Property and equipment are recorded at cost. Minor additions and renewals are expensed in the year incurred. Major additions and renewals are capitalized and depreciated over their estimated useful lives. Depreciation is calculated using the straight-line method over the estimated useful lives. Estimated useful lives of major depreciable assets are as follows:

SCHEDULE OF PROPERTY AND EQUIPMENT

Leasehold improvements		3 years
Furniture and fixtures		7 years
Website costs		3 years
Computer Equipment		5 years

Concentrations of Credit Risk

Financial instruments and related items, which potentially subject the Company to concentrations of credit risk, consist primarily of cash, cash equivalents, and receivables. The Company places its cash and temporary cash investments with high-credit quality institutions. At times, such investments may be more than the FDIC insurance limit.

Net Loss Per Share

The Company uses ASC 260-10, “Earnings Per Share,” for calculating the basic and diluted loss per share. The Company computes basic loss per share by dividing net loss and net loss attributable to common shareholders by the weighted average number of common shares outstanding. Common equivalent shares are excluded from the computation of net loss per share if their effect is anti-dilutive.

The Company has 34,201,299 and 33,612,875 shares of common classified as to be issued at July 31, 2025, and April 30, 2025, respectively included on the balance sheet were excluded from the shares used to calculate diluted earnings per share as their inclusion would reduce net loss per share.

Derivative Liabilities

The Company assessed the classification of its derivative financial instruments as of ~~January~~July 31, 2025, and April 30, ~~2024~~2025, which consist of of convertible instruments and rights to shares of the Company’s common stock. It determined that such derivatives meet the criteria for liability classification under ASC 815.

1011

ASC 815 generally provides three criteria that, if met, require companies to bifurcate conversion options from their host instruments and account for them as freestanding derivative financial instruments. These three criteria include circumstances in which (a) the economic characteristics and risks of the embedded derivative instrument are not clearly and closely related to the economic characteristics and risks of the host contract, (b) the hybrid instrument that embodies both the embedded derivative instrument and the host contract is not re-measured at fair value under otherwise applicable generally accepted accounting principles with changes in fair value reported in earnings as they occur and (c) a separate instrument with the same terms as the embedded derivative instrument would be considered a derivative instrument subject to the requirements of ASC 815. ASC 815 also provides an exception to this rule when the host instrument is deemed conventional, as described.

Convertible Instruments

The Company evaluates and accounts for conversion options embedded in its convertible instruments in accordance with professional standards for “Accounting for Derivative Instruments and Hedging Activities.”

The Company assessed the classification of its derivative financial instruments as of ~~January~~July 31, 2025, and April 30, ~~2024~~2025, which consist of of convertible instruments and rights to shares of the Company’s common stock and determined that such derivatives meet the criteria for liability classification under ASC 815.

Reclassifications

Certain reclassifications have been made to conform with prior periods’ data to the current presentation. These reclassifications did not affect reported losses.

Recent Accounting Pronouncements-

~~In November~~Recently ~~2023,~~adopted ~~the~~accounting ~~FASB~~pronouncements ~~issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures,”~~require ~~which requires a~~ public ~~entity~~companies to disclose ~~significant~~the ~~segment~~impact ~~expenses~~of ~~and~~new ~~other~~standards ~~segment items~~ on antheir ~~annual~~financial ~~and~~statements, ~~interim~~including ~~basis~~details ~~and to provide in interim periods all disclosures~~ about ~~reportable~~the ~~segment’s~~standard, ~~profit~~the ~~or loss and assets that are currently required annually.~~adoption ~~ASU~~date, ~~2023-07~~method isof ~~effective for fiscal years beginning after December 15~~adoption, ~~2023,~~ and ~~interim~~expected ~~periods within fiscal years beginning after December 15, 2024, with early adoption permitted~~effects. ~~The~~These ~~Company~~disclosures ishelp ~~currently~~investors ~~evaluating~~understand ~~the~~how ~~impact~~changes ~~this~~in ~~standard~~accounting principles will affect ~~have~~a oncompany’s ~~its consolidated~~ financial ~~statements~~performance and position.

Recently Adopted Accounting Pronouncements. In ~~December~~November 2023, the FASB issued ASU 2023-0907, ~~“Income~~Segment ~~Taxes~~Reporting (Topic ~~740~~280):. ~~Improvements~~The toamendments ~~Income~~in ~~Tax~~this ~~Disclosures,”~~update ~~which~~expand ~~enhances~~segment ~~the~~disclosure requirements, ~~transparency~~including ~~usefulness of~~new ~~income~~segment ~~tax~~disclosure ~~disclosures~~requirements byfor ~~requiring;~~entities ~~(1)~~with ~~consistent~~a ~~categories~~single ~~and~~reportable ~~greater~~segment ~~disaggregation~~among ofother ~~information~~disclosure ~~and~~requirements. This ~~decision~~update inis ~~the~~effective ~~rate~~for ~~reconciliation and~~fiscal ~~(2)~~years ~~income~~beginning ~~taxes~~after ~~paid~~December ~~disaggregated~~15, by2023, ~~jurisdiction.~~and Itinterim ~~also~~periods ~~includes~~within ~~certain~~fiscal ~~other~~years ~~amendments~~beginning toafter ~~improve~~December 15, ~~the~~2024. ~~effectiveness~~Adoption of ~~income tax~~this ~~disclosures.~~standard ~~ASU~~is ~~2023-09~~on isa ~~effective~~modified ~~for~~retrospective ~~fiscal~~basis ~~years~~and ~~beginning~~had ~~after~~no ~~December~~impact ~~15,~~on ~~2025~~the Company’s financial position, results ~~with~~of ~~early~~operations, ~~adoption~~cash ~~permitted.~~flows ~~These~~or ~~amendments are~~net toincome beper ~~applied~~share. ~~prospectively,~~As ~~with~~of ~~retrospective~~2024 ~~application~~and ~~permitted.~~2023 ~~The~~the Company ishad ~~currently~~one ~~evaluating~~reporting ~~the~~segment, ~~impact~~all ~~this~~revenue ~~standard~~is reported ~~will~~under ~~have~~this onsegment ~~its~~Sparta ~~consolidated~~Commercial ~~financial~~Services, ~~statements~~Inc.

InOther ~~November~~accounting ~~2024,~~standards ~~the~~and ~~FASB~~amendments ~~issued ASU 2024-04, “Induced Conversions of Convertible Debt Instruments,” which relates~~ to ~~the~~ existing accounting ~~for~~standards ~~the~~that ~~settlement~~have ofbeen aissued ~~debt instrument~~and ashave anfuture ~~induced conversion. ASU 2024-04 is~~ effective ~~for~~dates ~~fiscal~~are ~~years~~not ~~beginning~~applicable ~~after~~or ~~December~~are ~~15,~~not ~~2025,~~expected ~~with early adoption permitted. These amendments are~~ to behave ~~applied~~a ~~prospectively, with retrospective application permitted. The Company is currently evaluating~~significant ~~the~~ impact ~~this standard will have~~ on ~~its~~the Company’s consolidated financial statements.

NOTE B – GOING CONCERN MATTERS

The accompanying ~~unaudited condensed~~ consolidated financial statements have been prepared on a going -concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. AsThe ~~shown in the~~ accompanying ~~unaudited condensed~~ consolidated financial statements, show that the Company has incurred recurring losses and generated negative cash flows from operating activities since inception. As of July ~~January~~ 31, 2025, the Company had an accumulated deficit of $6869,~~587~~401,~~067~~313 and a working capital deficit (total current liabilities exceeded total current assets) of $109,~~064~~960,~~030~~973. The Company’s cash balance and revenues generated are not currently sufficient and cannot be projected to cover its operating expenses for the next twelve months from the filing date of this report. These factors among others raise substantial doubt about the Company’s ability to continue as a going concern for a period of one year from the issuance of these financial statements.

The Company’s existence is dependent upon management’s ability to develop profitable operations. Management is devoting substantially all of its efforts to developing its business and raising capital and there can be no assurance that the Company’s efforts will be successful. No assurance can be given that management’s actions will result in profitable operations or the resolution of its liquidity problems. The accompanying ~~unaudited condensed~~ consolidated financial statements do not include any adjustments that might result should the Company be unable to continue as a going concern.

~~In order~~To to improve the Company’s liquidity, the Company’s management is actively pursuing additional equity financing through discussions with investment bankers, private equity groups, and private investors. There can be no assurance that the Company will be successful in its effort to secure additional equity financing.

1112

The Company’s existence depends on management’s ability to develop profitable operations. Management is devoting substantially all its efforts to growing its business and raising capital, and there can be no assurance that the Company’s efforts will be successful. The management’s actions are not guaranteed to result in profitable operations or resolve liquidity problems. The accompanying unaudited condensed consolidated financial statements do not include any adjustments that might result should the Company be unable to continue as a going concern.

The Company’s management actively pursues additional equity financing through discussions with investment bankers and private investors. There can be no assurance that the Company will be successful in its effort to secure additional equity financing.

NOTE C – NOTES PAYABLE AND DERIVATIVES

The Company has ~~numerous~~ outstanding numerous notes payable to various parties. The notes bear interest at rates of 5% - 20% per year and are summarized as follows:

SCHEDULE OF NOTES PAYABLE

Notes Payable	~~January~~July 31, 2025		April 30, ~~2024~~2025
Notes convertible at holder’s option	$	2,667,~~664~~644	$	2,~~723~~667,~~197~~644
Notes convertible at Company’s option		335,700		335,700
Non-convertible notes payable		23,~~953~~321,~~011~~378		23,~~399~~063,~~221~~012
Accrued interest		12,~~757~~069,~~804~~331		1,~~710~~907,~~363~~406
Notes payable current		78,~~714~~394,~~159~~053		7,~~168~~973,~~481~~762
Add non-current portion		~~396~~302,~~614~~315		-396,614
Total	$	8,~~110~~696,~~773~~368	$	78,~~168~~370,~~481~~376

Certain notes payable ~~contain~~contains variable conversion rates, and the conversion features are classified as derivative liabilities. The conversion prices are based on the market price of the Company’s common stock, at discounts of 60% to market value.

The Company’s derivative financial instruments are embedded derivatives related to the outstanding short-term Convertible Notes Payable. These embedded derivatives included certain conversion features indexed to the Company’s common stock. The accounting treatment of derivative financial instruments requires that the Company record the derivatives and related items at their fair values as of the inception date of the Convertible Notes Payable and at fair value as of each subsequent balance sheet date. In addition, under the provisions of Accounting Standards Codification subtopic 815-40, Derivatives and Hedging; Contracts in Entity’s Own Equity (“ASC 815-40”), as a result of entering into the Convertible Notes Payable, the Company is required to classify all other non-employee stock options and warrants as derivative liabilities and mark them to market at each reporting date. Any change in fair value, including modifications of terms, will be recorded as non-operating, non-cash income, or expense at each reporting date. If the fair value of the derivatives is higher at the subsequent balance sheet date, the Company will record a non-operating, non-cash charge. If the fair value of the products is lower at the subsequent balance sheet date, the Company will record non-operating, non-cash income. These Notes are subject to a six-year Statute of Limitations in which to bring any potential claims.

The ~~change~~ change in fair value of the derivative liabilities onof ~~January~~convertible notes outstanding at July 31, 2025, was calculated with the following average assumptions, using a ~~black~~ ~~scholes~~Binomial option-pricing model are as follows:

SCHEDULE OF DERIVATIVE LIABILITIES ASSUMPTIONS USING BLACK -SCHOLES OPTION

Significant Assumptions:
Risk-free interest rate	4.17	%
Risk free interest rate	3.9	%
Expected stock price volatility	~~143~~199	%
Expected dividend payout	0
Expected life in years	1 Year
Expected options life in years	2 years

1213

Changes in derivative liability during the ~~nine~~three months ended ~~January~~July 31, 2025, and 2024 were:

	January 31,		January 31,
	July 31,		July 31,
	2025		2024
Balance, beginning of quarter	$	1,019,644	$	1,375,767
Balance, beginning of year	$	1,007,598	$	740,940
Balance	$	1,019,644	$	1,375,767
Fair value adjustments		36,686		378,292
Derivative liability extinguished		-		(260,425	)
Balance, end of period	$	1,044,284	$	1,119,232
Derivative financial liability arising on the issuance of convertible notes and warrants		-		-
Fair value adjustments		188,916		(82,515	)
Balance, end of period	$	1,208,560	$	1,032,827
Balance	$	1,208,560	$	1,032,827

NOTE D – LOANS PAYABLE TO RELATED PARTIES

As of ~~January~~July 31, 2025, and April 30, ~~2024,~~2025 aggregated loans ~~and~~payable ~~notes~~to ~~payable~~related parties and, without demand ~~and with interest from 0%~~ to ~~12%,~~officers toand ~~officers,~~ directors, ~~and other related parties~~ were $~~632~~639,~~833~~748 and $~~637~~363,~~077,~~233 respectively.

NOTE E – EQUITY TRANSACTIONS

Preferred Stock

The Company is authorized to issue 10,000,000 shares of preferred stock with $0.001 par value per share, of which 35,850 shares have been designated as Series A convertible preferred stock with a $100 stated value per share; 1,000 shares have been designated as Series B Preferred Stock with a $10,000 per share liquidation value; 4,200,000 shares have been designated as Series C Preferred Stock with a $1.00 per share liquidation value, and 2,000,000 shares have been designated as Series D Preferred Stock with a $1 per share liquidation value. During the three months ended ~~January~~July 31, 2025, and ~~2025~~2024, the Company did not issue any preferred stock.

Common Stock

The Company is authorized to issue 750,000,000 shares of common stock, $0.001 par value. The Company had 3841,~~273~~502,~~288~~ 464 and 2940,~~495~~133,~~189 shares~~669 shares of common stock issued and outstanding as of ~~January~~July 31, 2025, and April 30, ~~2024~~2025, respectively. The Company had 34,~~310~~201,~~724~~299 and 33,~~395~~612,~~883~~ 875 shares of common classified as to be issued at ~~January~~July 31, 2025, and April 30, ~~2024~~2025, respectively.

During the ~~nine~~three months ended ~~January~~July 31, 2025, the Company:

● Issued 4450,~~539,683~~000 shares ~~and 2,928,454 shares to be issued~~ valued at $~~791~~54,~~500~~435 tofor ~~accredited~~consulting ~~investors~~services ~~related to equity investments.~~ ● Issued ~~353~~136,~~956~~809 shares of common stock valued at $7819,~~016~~985 ~~for~~upon ~~consulting~~the ~~services.~~settlement of liability ● ~~989~~Issued 781,~~847~~986 shares ofand ~~common~~538,424 ~~stock~~shares to be issued ~~as an incentive or penalty to noteholders~~ valued at $~~201~~95,~~789.~~000 ●to ~~Issued~~accredited ~~850,000~~investors ~~shares~~related ofto ~~common~~equity ~~stock~~investments ~~valued~~which atincludes ~~$85~~660,~~000~~205 ~~upon~~warrants ~~the~~at ~~conversion~~fair value of ~~convertible~~$25,869 ~~notes~~ ● ~~Issued 36~~50,000 shares ~~valued at $6,000 upon the conversion~~ of ~~preferred~~common ~~series~~stock Cto ~~shares~~be ●issued ~~Issued 120,000 shares~~ valued at $304,000 ~~upon~~to ~~the~~accredited ~~conversion~~investors ofrelating ~~preferred~~to ~~series~~promissory ~~D shares~~notes

During the ~~nine~~three months ended ~~January~~July 31, 2024, the Company:

● Issued 2,379,923 shares and 1,~~349~~405,~~005~~340 shares to be issued valued at $~~107~~335,000 to ~~six~~ accredited investors related to equity investments. ● Issued ~~153~~200,~~864~~000 shares valued at $4823,~~490~~000 for consulting services. ● ~~Issued 75~~200,000 shares of common stock to be issued as an incentive to noteholder valued at $618,~~975~~640. ● ~~Sold~~Issued ~~to eleven accredited investors 2~~750,~~747,339~~000 shares of common stock ~~for cash of $191,000, actual shares were not issued yet and recorded as common stock to be issued. ● Issued 60,000 shares~~ valued at $1075,000 upon the conversion of ~~preferred~~convertible ~~series~~notes ~~C shares~~ ● Issued ~~536~~1,~~824~~891,633 ~~shares~~warrants valued at $~~134~~72,~~206~~558 ~~upon~~as ~~the~~part of conversion of ~~preferred~~convertible ~~series D shares~~notes

1314

Preferred Stock

The Company is authorized to issue 10,000,000 shares of preferred stock with $0.001 par value per share, of which 35,850 shares have been designated as Series A convertible preferred stock with a $100 stated value per share; 1,000 shares have been designated as Series B Preferred Stock with a $10,000 per share liquidation value; 4,200,000 shares have been designated as Series C Preferred Stock with a $1 per share liquidation value, and 2,000,000 shares have been designated as Series D Preferred Stock with a $1 per share liquidation value.

During the three months ended July 31, 2025, and 2024, the Company did not issue any preferred stock.

As of July 31, 2025, and April 30, 2025, the Company had:

	July 31,		April 30,
Preferred stock outstanding shares	2025		2025
Series A		125		125
Series B		-		-
Series C		1,953,157		1,953,157
Series D		773,548		773,548
Preferred stock outstanding shares		773,548		773,548

NOTE F – FAIR VALUE MEASUREMENTS

The Company follows the ~~guidelines~~guidance established ~~according~~pursuant to ASC 820, which established a framework for measuring fair value and expands ~~disclosure~~ disclosure about fair value measurements. ASC 820 defines fair value as the amount that would be received for an asset or paid to transfer a liability (i.e., an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 describes the following three levels of inputs that may be used:

Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for identical assets and liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs.

Level 2: Observable prices that are based on inputs not quoted on active markets but corroborated by market data.

Level 3: Unobservable inputs when there is little or no market data available, thereby requiring an entity to develop its own assumptions. The fair value hierarchy gives the lowest priority to Level 3 inputs.

The table below summarizes the fair values of financial liabilities as of ~~January~~July 31, 2025, and April 30, 2025:

Fair Value at

Fair Value Measurement Using

January 31, 2025

Level 1

Level 2

Level 3

July 31, 2025

Level 1

Level 2

Level 3

Derivative liabilities

1,~~208~~044,~~560~~284

Fair values of financial liabilities as of April 30, 2024, are as follows:

	Fair Value at		Fair Value Measurement Using
	April 30, 2025		Level 1		Level 2		Level 3
Derivative liabilities	$	1,007,598		-		-	$	1,007,598

	Fair Value at		Fair Value Measurement Using
	April 30, 2024		Level 1		Level 2		Level 3
Derivative liabilities	$	740,940	$	-	$	-	$	740,940

The following is a description of the valuation methodologies used for these items:

Derivative liabilities — these instruments consist of certain variable conversion features related to notes payable obligations and certain outstanding warrants. These instruments were valued using pricing models incorporating the Company’s stock price, volatility, U.S. risk-free rate, dividend rate, and estimated life.

The Company did not identify any other non-recurring assets and liabilities that are required to be presented in the balance sheets at fair value following A.S.C. Topic 825, “The Fair Value Option for Financial Issuances.”

NOTE G –- ~~WARRANTS:~~PROPERTY AND EQUIPMENT

~~No warrants~~Major ~~were~~classes ~~issued~~of toproperty ~~employees~~and ~~for~~equipment ~~services.~~at ~~Stock~~July ~~options totaling 290~~31,~~000 shares were issued to employees or service providers during~~ ~~the year ended April 30~~2025, ~~2024.~~and ~~As of~~ April 30, ~~2024~~2025, aconsist ~~total~~ of ~~11,812,708 stock options were vested. The computed fair value was $204,385. During~~ the ~~nine months ended January 31, 2025, in connection with common stock issued or to be issued, the Company issued 3,733,073 warrants exercisable between $0.30 and $0.55 and lives of 2 years.~~following:

~~NOTE H~~SCHEDULE –OF ~~LOANS~~PROPERTY ~~RECEIVABLE~~AND EQUIPMENT

The Company has outstanding loan receivables from short-term lines of credit extended to merchants. These receivables are measured at amortized cost and include an allowance for credit losses based on expected credit loss models. Management assessed that the receivables are subject to minimal credit risk because the lines of credit are secured by liens on merchant assets. Consequently, there is $0 allowance for credit losses as of January 31, 2025, reflecting management’s assessment of the collectability of these loans. The Company monitors economic and regulatory developments that could impact the valuation and recoverability of the receivables.

	2025			2024
Computer equipment, software and furniture	$	213,262		$	213,262
Less: accumulated depreciation		(213,262	)		(213,262	)
Net property and equipment	$	-		$	-

~~NOTE~~All Iequipment –is ~~COMMITMENTS~~fully ~~AND~~depreciated ~~CONTINGENCIES~~as of the fiscal year end April 30, 2025. No additional investment in equipment during the three months ended July 31, 2025.

NOTE H – WARRANTS AND STOCK OPTIONS:

No warrants or stock options were issued to employees or service providers during the three months ended July 31, 2025. As of July 31, 2025, a total of 14,937,705 stock options were vested. The computed fair value was $47,808.

NOTE I – LOANS RECEIVABLE

The Company has outstanding loan receivables from short-term lines of credit extended to merchants. These receivables are measured at amortized cost and include an allowance for credit losses based on expected credit loss models. Management assessed that the receivables are subject to minimal credit risk because the lines of credit are secured by liens on merchant assets. Consequently, there is $0 allowance for credit losses as of July 31, 2025, and April 30, 2025, reflecting management’s assessment of the collectability of these loans. The Company monitors economic and regulatory developments that could impact the valuation and recoverability of the receivables.

The loans are based on agreements where the principal amount of the loan, repayment amount, interest amount along with number of payments are fixed over the agreed term of a particular disbursement irrespective of the pattern in which repayments may be received from the borrower during such term of disbursement.

NOTE J - COMMITMENTS AND CONTINGENCIES

Operating Lease Commitments

Our executive offices are located in New York, NY. We have an agreement for use of office space at this location under a sublease which expired on July 31, 2018, and continues on a month-to-month basis thereafter. The monthly base rent is $6,000.

Rent expense was $18,000 and $18,000 for the three months period ending ~~January~~July 31, 2025, and 2024, respectively.

1415

Employment and Consulting Agreements

The Company does not have employment agreements with any of its non-executive employees.

The Company has consulting agreements with outside contractors to provide marketing and financial advisory services. The agreements are generally for 12 months from inception and renewable automatically from year to year unless the Company or consultant terminates such engagement by written notice.

The Company entered into five-year employment agreements with its CEO, Anthony L Havens and Vice President of Operations, Sandra L Ahman. As part of their employment agreements, Mr. Havens received five-year5 ~~year~~ options to purchase 376,256 shares of the Company’s common stock at $0.308 per share. The options vest in three equal tranches over three years. Ms. Ahman received five -year options to purchase 125,419 shares of the Company’s common stock at $0.308 per share. The options vest in three equal tranches over three years.

Litigation

The Company is subject to legal proceedings and claims arising in its business’s ordinary course. Sparta can make no representations about the potential outcome of such proceedings.

As of ~~January~~July 31, 2025, there is no pending litigation against Sparta and any and all prior litigation has been discontinued, settled or ~~otherwise~~ otherwise resolved with no liability whatsoever against Sparta.

NOTE JK – SUBSEQUENT EVENTS

The Company ~~had~~has evaluated subsequent events for recognition and disclosure as of the date the financial statements were available to be issued. No other matters were identified affecting the accompanying financial statements and related disclosures.

Subsequent to ~~January~~July 31, 2025, the Company:

	●	Issued 1600,~~091,063~~000 shares valued at $~~100~~63,~~000~~535 tofor ~~accredited~~consulting ~~investors related to equity investments~~services.
	●	Issued ~~300~~342,~~000~~042shares ~~shares~~ valued at $6720,~~240~~000 ~~for~~to ~~consulting~~accredited ~~services~~investors related to equity investments.

1516

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

General

The following discussion of our financial condition and results of operations should be read in conjunction with (1) our interim unaudited , condensed consolidated financial statements and their explanatory notes included as part of this quarterly Report and (2) our annual audited consolidated financial statements and explanatory notes for the year ended April 30, ~~2024~~2025, as disclosed in our annual Report on Form 10-K for that year as filed with the S.E.C.

“~~Forward~~FORWARD-~~Looking~~LOOKING” ~~Information~~ INFORMATION

This ~~Report~~ report on Form 10-QK contains various statements that may constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, Rule 175 promulgated thereunder, Section 21E of the Securities Exchange Act of 1934, as amended, and Rule 3b-6 promulgated thereunder which represent our expectations and beliefs, including, but not limited to, statements concerning the Company’s business and financial plans and prospects and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Any statements about our expectations, beliefs, plans, objectives, assumptions, or future events, or ~~performances~~performance are not historical facts and may be forward-looking. The words “believe,” “expect,” “anticipate,” “estimate,” “project,” and other similar expressions can, but do not always, identify forward-looking statements, which speak only as of the date such statement was made. We base these forward-looking statements on our current expectations and projections about future events, our assumptions, regarding these events and our knowledge of facts ~~when~~at the time the statements are made. These statements, by their nature, involve substantial risks and uncertainties, ~~sure~~certain of which are beyond our control, and actual results may differ materially depending on ~~various~~a ~~important~~variety of important factors. Risks and uncertainties that could cause our financial performance to differ materially from our goals, plans, expectations, and projections expressed in forward-looking statements include those ~~outlined~~set forth in our filings with the Securities and Exchange Commission (“~~S.E.C.~~SEC”), including Item 1A of the Company’s Annual Report of Form 10-K for the year ended April 30, ~~2024~~2025. Forward-looking statements speak only as of the date they are made. The Company does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made or to reflect the occurrence of unanticipated events. ItYou should ~~would be best to~~ consider any forward-looking statements in light of this explanation, and we caution you about relying on ~~them~~forward-looking statements.

General Overview

~~Sparta’s~~Agoge ~~roots~~Global ~~are~~USA, ~~in the Powersports consumer finance industry~~Inc. ~~The~~is ~~Company~~a ~~provided~~fintech ~~retail~~company ~~installment~~revolutionizing ~~loans~~cross-border ~~and~~trade ~~leases~~for ~~through~~Brazilian ~~authorized~~importers ~~motorcycle dealerships~~by inoffering 33staged ~~states, with~~ financing ~~lines~~and automated ofpayment ~~credit provided by institutional lenders~~solutions. ~~The~~Through ~~Company also created and maintained~~ a ~~full~~ ~~underwriting~~joint ~~and~~venture ~~servicing~~with ~~platform for its portfolio. The Company~~Brazil’s ~~consumer~~WeDev ~~loans~~Group, ~~and~~Agoge ~~leases~~provides ~~business~~a ~~was~~proprietary ~~discontinued post~~platform that ~~the~~simplifies ~~Lehman~~and ~~Brothers~~accelerates ~~collapse~~invoice ~~during the 2008 financial crisis. In 2007~~payments, ~~the~~customs ~~Company introduced a new initiative~~clearance, ~~Municipal Financing, (www.spartamunicipal.com), which since inception~~ and ~~through~~regulatory ~~the~~compliance. ~~current~~The ~~date~~system ~~has~~reduces ~~provided~~costly ~~financing~~delays, ~~for over 100 jurisdictions~~lowers totransaction ~~date.~~fees, ~~Sparta’s~~and ~~Municipal~~improves ~~Finance~~cash ~~program~~flow isby ~~also~~enabling ~~currently~~importers ~~available~~ to ~~all~~pay ~~nonprofit~~suppliers, ~~organizations~~freight, ~~institutions~~ and ~~entities. All~~customs ~~nonprofit~~fees ~~organizations~~in ~~which~~stages—giving them ~~adhere~~time to ~~IRS~~sell ~~guidelines,~~goods ~~including~~before ~~501~~loans ~~(c)~~mature. 3Positioned ofin ~~the~~a ~~Internal~~$252 ~~Revenue~~billion ~~Code~~market, ~~are~~Agoge ~~eligible.~~is ~~Both~~targeting ~~public~~small-to-midsize importers ~~nonprofits,~~across ~~also~~high-demand ~~known~~sectors ~~as public charities, supported with publicly collected funds,~~ and ~~private~~is ~~nonprofits,~~seeking ~~also~~debt ~~known~~financing asto ~~private~~scale ~~foundations, supported~~its byplatform anand ~~individual~~meet orgrowing ~~business~~client ~~entity, qualify for the program~~demand.

~~Vehicle History Reports are a staple of~~ Sparta’s ~~E-Commerce Technology~~ subsidiary, ~~iMobile~~Sparta ~~Solutions~~Crypto, Inc., ~~Whether~~www.SpartaCrypto.com, awas ~~vehicle~~established isin ~~intended for~~September ~~business or recreational use~~2020, ~~Sparta’s Vehicle History Reports are highly regarded for accuracy~~ and ~~completeness~~is ~~and have been sold across all 50 states and~~ in 62the ~~countries~~process ~~worldwide.~~of ~~They~~completing ~~provide~~ a ~~trusted layer~~ proprietary state-of-the-art ~~assurance~~platform designed to ~~vehicle~~connect ~~buyers~~users ~~and~~of ~~are~~widely ~~available online~~adopted ~~and~~digital atcurrencies awith ~~range~~sellers of various ~~dealership~~goods ~~websites~~ and ~~showrooms~~services. The ~~They~~platform ~~include~~is ~~Cyclechex~~scheduled ~~(Motorcycle~~to ~~History~~launch ~~Reports~~in ~~at www.cyclechex.com)~~2026, ~~RVchex~~ ~~(Recreational~~and ~~Vehicle~~the ~~History~~Company ~~Reports~~can atmake ~~www.rvchex.com),~~no ~~and~~assurances ~~Truckchex~~that ~~(Heavy~~the ~~Duty~~described ~~Truck~~plan ~~History~~will ~~Reports~~reach ~~at www~~implementation.~~truckchex.com).~~ ~~Consumers,~~In ~~retailers~~addition, ~~auction houses, banks and insurance companies alike scrutinize title history reports for~~ the ~~vital~~Company ~~information needed~~completed and ~~factored~~tested ~~into~~a ~~crucial~~cryptocurrency ~~business~~payment ~~decisions~~gateway ~~regarding~~called ~~the sale~~SpartaPayIQ, ~~purchase~~www.SpartaPayIQ.com, ~~lease,~~which was ~~insuring~~formally ofannounced ~~or other financial transactions~~ on ~~these~~March ~~assets~~3, 2022.

16In 2007, the Company introduced a new initiative, Municipal Financing, (www.spartamunicipal.com), which since inception and through the current date has provided financing over 100 jurisdictions to date. Sparta’s Municipal Finance program is also currently available to all nonprofit organizations, institutions and entities. All nonprofit organizations which adhere to IRS 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, supported by an individual or business entity, qualify for the program.

~~The~~Consumers, ~~Company’s E-Commerce and Mobile Technology subsidiary~~retailers, ~~iMobile Solutions~~municipals, ~~Inc.~~nonprofits, ~~provides~~auction ~~mobile technology services~~houses, ~~(www.imobileapp.com)~~banks, ~~including~~ ~~web~~ and ~~mobile~~insurance ~~application~~companies ~~creation,~~scrutinize ~~development~~title ~~and~~history ~~management~~reports for athe ~~wide~~vital ~~range of businesses to help them increase revenue,~~information ~~build~~needed ~~brand recognition,~~ and ~~improve~~factored ~~customer~~into ~~engagement.~~crucial ~~Our ever-broadening~~ business ~~base~~decisions ofaffecting ~~mobile~~the ~~applications~~bottom ~~includes~~line. ~~vehicle~~Vehicle ~~dealerships and~~History ~~racetracks,~~Reports ~~private~~are ~~clubs~~a ~~and~~staple ~~country~~of ~~clubs, schools and entertainment venues, restaurants and grocery stores, as well as various~~Sparta’s ~~other merchant types. (www.imobileapp.com/app~~E-~~gallery).~~Commerce ~~The~~Technology ~~Company~~subsidiary ~~also~~iMobile ~~designs~~Solutions, ~~launches,~~Inc. ~~maintains~~Whether ~~and~~a ~~hosts~~vehicle ~~websites~~is intended for ~~businesses incorporating~~business ~~SEO~~or ~~(search~~recreational ~~engine optimization)~~use, ~~social~~Sparta’s Vehicle ~~media~~History ~~marketing,~~Reports ~~and~~are ~~online~~highly ~~reviews~~regarded ~~to improve their presence online. We provide specific, tailored action plans~~ for ~~our~~accuracy ~~clients’ websites that include services such as eCommerce, CRM (Customer Relationship Management) development~~ and ~~integration~~completeness. ~~This~~They ~~custom~~have ~~software~~been ~~not~~sold ~~only~~across ~~helps~~all ~~businesses~~50 ~~communicate~~states ~~with~~and ~~customers~~in ~~but~~62 ~~can also be inward facing~~countries ~~used for employees to communicate internally~~worldwide. ~~The~~They ~~CRM~~provide ~~software can be web based, integrated with~~ a ~~mobile~~trusted ~~app,~~layer orof ~~both.~~assurance ~~We work with clients~~ to ~~understand~~vehicle ~~their~~buyers ~~unique needs~~ and ~~incorporate the features and requirements that~~ are ~~most~~available ~~important~~on toour ~~them~~websites ~~and~~as ~~will~~well ~~facilitate their~~as ~~business~~on ~~growth~~various ~~and success. Correspondingly, the Company designs and builds custom kitchen ordering software for independent grocery~~dealership ~~stores, delicatessens, and other customer-facing food service businesses~~websites. ~~The~~They ~~software~~include ~~can~~Cyclechex be(Motorcycle ~~designed~~History ~~for~~Reports ~~use~~at ~~in a combination of ways including mobile devices and in-store ordering~~www. ~~The kitchen ordering software is enabled with payment integration, text messaging notification, wireless printing, and other features~~cyclechex. ~~iMobile Solutions~~com), ~~Inc.~~RVchex ~~provides~~(Recreational aVehicle ~~turn-key~~History ~~solution~~Reports ~~for~~at ~~any business looking to simplify or streamline their kitchen ordering process~~www. ~~Additionally~~rvchex.com), ~~we offer text messaging services, which supplement business marketing strategies both to~~ ~~gain~~ and ~~retain~~Truckchex ~~brand~~(Heavy ~~loyalty~~Duty ~~among~~Truck ~~its~~History ~~clients,~~Reports ~~customers~~at ~~and investors~~www. ~~Our text messaging platform allows our clients to easily manage, schedule and analyze text message performance~~truckchex.com).

Sparta created its subsidiary, New World Health Brands, Inc., in April 2019, on the heels of the Agriculture Improvement Act (also known as the Farm Bill), which was signed into law the previous December 20, 2018. Consequently, hemp (CBD) was removed from Schedule 1 of the Controlled Substances Act. Company management recognized the substantial business opportunity that lay ahead in the rapidly expanding hemp-CBD (cannabidiol) market in the United States. During 2019-2020, we sourced, developed and tested 5 CBD product categories totalling 31 products. We procured premium, domestic-grade, full-spectrum, broad-spectrum, and THC free hemp, created product packaging and labelling, and implemented fulfilment to launch an online B to C website in December of 2019. Effective March 31, 2023, management and the Board of Directors decided it was in the best interest of its shareholders to close its hemp-derived CBD product division based on the uncertainty of federal legalization that caused confusion and caution among distributors, retailers, and financial services companies in their efforts to embrace CBD and bring it to market.

In response to the onset of the COVID 19 pandemic in early 2020 Sparta quickly undertook a thorough investigation into evolving customer trends in health and wellness. As a result, we expanded New World Health Brands and developed a new product line of natural dietary supplements. In August 2020, we launched an online B to C website: www.newworldhealthbrands.com where we sell high-quality dietary supplements, including vitamins and minerals, such as, Iodine for children and adults, Boron, copper/Zinc/Selenium, , Magnesium, Spermidine, Vitamin B Complex, Vitamin C and PQQ. We continue to study the market as we consider new products to add to our offerings. To ensure the safety and quality of our products, all health and wellness offerings are exclusively sourced and manufactured in the United States and adhere to strict U.S standards and guidelines. Sparta’s commitment to high standards and transparency are tantamount to being a trusted brand.

In September 2020 the Company established Sparta Crypto, Inc., www.SpartaCrypto.com, which spawned both SpartaPayIQ, www.SpartaPayIQ.com, and Agoge Global, USA, www.AgogeGlobalUSA.com, (“Agoge”) which was formed in December 2022. Sparta Crypto is in the process of completing a proprietary state-of-the-art platform designed to connect users of widely adopted digital currencies with sellers of high-end goods and services. While the Company expects the platform to launch in early 2025, it can make no assurances that the described plan will reach implementation at that time. SpartaPayIQ was created as the cryptocurrency transactional engine payment gateway behind Sparta Crypto and Agoge. After undergoing extensive testing, the Company formally announced it had achieved the optimum functionality for launch on March 3, 2022.

Agoge entered into a Joint Venture Agreement with WeDev Group Ltda. and launched its new integrated Blockchain-based platform, EZBroker 360, that significantly improves and simplifies the ability of business to conduct international trade in the Brazilian market. The platform utilizes stablecoins and blockchain technology to decrease costs and improve the speed of these international transactions. Among Agoge’s suite of services is the offering of staged financing for freightage and taxation. Other services include industry introductions, Brazilian tax and regulatory compliance guidance, import and export documentation assistance, as well as reselling services in other jurisdictions and facilitation of cross-border transactions. After a significant investment of time and resources, the Agoge platform is now live and processing transactions for both U.S. and Brazilian corporations.

The Company’s E-Commerce and Mobile Technology subsidiary name change to iMobile Solutions, Inc., from Specialty Reports, Inc., in 2016, signifies its ever-broadening service offerings in the evolving technology landscape. With iMobile App (www.imobileapp.com), the Company provides mobile technology services, including web and mobile application creation, development, and management for a wide range of businesses to increase revenue, build brand recognition, and improve customer engagement. Our ever-broadening business base of mobile applications includes vehicle dealerships and racetracks, private clubs and country clubs, schools and entertainment venues, restaurants, grocery stores, and various other merchant types. (www.imobileapp.com/app-gallery). The Company also designs, launches, maintains, and hosts websites for businesses incorporating SEO (search engine optimization), social media marketing, and online reviews to improve their presence online.

We provide specific, tailored action plans for our clients’ websites that include services such as eCommerce, CRM (Customer Relationship Management), development, and integration. This custom software helps businesses communicate with customers and can also be used for employees to communicate internally. The CRM software can be web-based, integrated with a mobile app, or both. We work with clients to understand their unique needs and incorporate the features and requirements that are most important to them and will facilitate their business growth and success. Correspondingly, the Company designs and builds custom kitchen ordering software for independent grocery stores, delicatessens, and other food service businesses. The software can be designed in various ways, including mobile devices and in-store ordering. The kitchen ordering software is enabled with payment integration, text messaging notification, wireless printing, and other features. iMobile Solutions, Inc. provides a turn-key solution for businesses looking to simplify or streamline their kitchen ordering process. Additionally, we offer text messaging services, which supplement business marketing strategies to gain and retain brand loyalty among its clients, customers, and investors. Our text messaging platform allows clients to manage, schedule, and analyze text message performance quickly.

In August 2020, we launched an online B to C website: www.newworldhealthbrands.com, featuring high-quality nutritional supplements, including vitamins and minerals, such as, Iodine for children and adults, Boron, copper/Zinc/Selenium, Magnesium, Spermidine, Vitamin B Complex, Vitamin C and PQQ, with more products to come. All health and wellness offerings are exclusively sourced and manufactured in the United States and adhere to strict U.S. standards and guidelines to ensure the safety and quality of our products. Sparta’s commitment to high standards and transparency is tantamount to being a trusted brand.

RESULTS OF OPERATIONS

Comparison of the nine Months Ended January 31, 2025, and 2024

For the nine months ended January 31, 2025, and 2025, we have generated limited sales revenues, incurred significant expenses, and sustained substantial operating losses.

Revenues

Revenues totaled $~~168~~96,~~357~~688 ~~during~~for the ~~nine~~three months ~~ending~~ended ~~January~~July 31, 2025, compared to $~~151~~41,~~433~~551 ~~during~~for the ~~nine~~three months ~~ending~~ended ~~January~~July 31, 2024. Revenues were up by $1655,~~924~~137 or 11133% due primarily to an increase in merchant financing fees and sales of wellness products.

Cost of Revenue

The cost of revenue consists of costs and fees paid to third parties to construct and maintain mobile apps, ~~and~~as ~~payments~~well as fees for subscription ~~services~~ services related to vehicle history reports ~~and the cost of goods purchased for New World Health Brand products~~.

Operating Expenses

Operating expenses were $1367,~~006,082~~549 during the ~~nine~~three months ended ~~January~~July 31, 2025, compared to $~~866~~376,~~886~~762 during the ~~nine~~three months ended ~~January~~July 31, 2024, ana ~~increase~~decrease of $~~139~~9,~~196~~213, or 162%. ~~Expenses~~primarily ~~incurred~~due ~~during~~to ~~the~~an ~~current~~increase ~~three~~in ~~months~~general ~~period~~office ~~consisted~~expense ~~primarily~~ of ~~the~~$13,158 ~~following~~offset ~~expenses:~~by a decrease in compensation and related cost of $20,481.

	2025		2024		Increase (Decrease)			%
Compensation and related costs	$	516,223	$	428,021	$	88,202			21	%
Accounting, audit and professional fees		59,190		51,921		7,269			14	%
Consulting Fees		237,460		50,670		186,790			369	%
Rent and Utilities		54,000		54,000		-			0	%
General office expenses		139,209		282,273		(143,064	)		(51	)%
	$	1,006,082	$	866,886	$	139,196			16	%

The following are the major expense categories:

	July 31, 2025		July 31, 2024		Increase (Decrease)			%

Compensation and Related cost		193,649		214,130		(20,481	)		-10	%
Accounting and Legal Fees		29,525		24,220		5,305			22	%
Consulting Fees		66,865		74,060		(7,195	)		-10	%
Rent and Lease		18,000		18,000		-			0	%
General office Expenses		59,510		46,352		13,158			28	%
		367,549		376,762		(9,213	)		-2	%

Other (income) (expense)

~~During~~For the ~~nine~~three months ended ~~January~~July 31, 2025, other expense of $~~930~~195,~~047~~058 is comprised primarily of financing costs of $~~493~~167,~~257~~796 and a loss of ~~the~~ the change in valuation of derivative liabilities of $~~467~~36,~~620~~686, offset by other commission income of $119,~~995~~624. ~~During~~For the ~~nine~~three months ended ~~January~~ July 31, 2024, , other ~~income~~expense of $79620,~~426~~722 ~~consisted~~is ofcomprised ~~gains~~primarily ~~on the write off~~ of ~~convertible~~financing ~~notes~~costs of $~~158~~244,~~294,~~934 and a ~~gain~~loss onof the change in ~~fair~~ ~~value~~valuation of ~~our~~ derivative liabilities of $~~342~~378,~~940~~292, offset by ~~financing~~other ~~costs~~commission income of $~~434~~2,~~385.~~504

Net ~~income~~Income (~~loss~~Loss)

Our net loss ~~attributable~~attributed to common stockholders for the ~~nine~~three months ended ~~January~~July 31, 2025, was $1482,~~791,717~~329 compared to a net loss of $~~675~~963,~~291~~173 for the ~~nine~~three months ended ~~January~~July 31, 2024, primarily due to the change in valuation of derivative liabilities for ~~this~~the ~~period~~three months ended July 31, 2025, as compared to ~~six~~for the three months ~~ending~~ended ~~January~~July 31, 2024.

LIQUIDITY AND CAPITAL RESOURCES

As of ~~January~~July 31, 2025, we had an accumulated deficit of $6869,~~587~~401,~~067~~313 and a total stockholders’ deficit of $11,917,424. The net cash flow used by operations was $1346,~~179,977~~671 for the ~~nine~~ three months ~~ending~~ended ~~January~~July 31, 2025. This deficit results primarily from our net loss of $1474,~~788,457~~ 391 and increases in loans receivable related to Agoge Global USA, Inc. of $~~751~~179,~~057~~512, offset by decreases in non-cash expenses of $~~744~~92,~~298~~ 988 and increases in accounts payable and accrued expenses of $~~622~~214,~~062~~070.

We met our cash requirements during the period through ~~proceeds~~revenue ~~from~~of ~~the~~$96,688 ~~issuance~~and ofproceed ~~stock~~from ~~for~~the asale ~~total~~ of common shares $~~611~~95,~~732~~000 and ~~proceeds~~ proceed from convertible notes ~~payable~~ of $~~525~~166,000.

We do not anticipate ~~minimal~~incurring significant research and development expenditures, orand ~~expect~~we do not anticipate the sale or acquisition of any significant property, plant, or equipment , during the next twelve months. OnAt ~~January~~July 31, 2025, we had ~~four~~6 full-time employees, one part-time employee, and ~~two~~2 ~~part~~full-time ~~employees~~consultants. If we fully implement our business plan, we anticipate our employment base may increase during the next twelve months. As we continue to expand, we will incur additional ~~costs~~ cost for personnel. This potential increase in personnel is dependent upon our generating increased revenues and obtaining sources of financing. WeThere ~~are~~is ~~still~~no ~~determining~~guarantee ifthat we will ~~successfully~~be ~~raise~~successful in raising the ~~necessary~~ funds required or ~~generate~~generating ~~revenues~~ sufficient revenues to fund the potential increase in the number of employees. AOur ~~union~~employees are ~~does~~ not ~~represent~~represented ~~our~~by ~~employees~~a union.

While we have raised capital to meet our working capital and financing needs in the past, additional financing is required to meet our current and potential future cash flow deficits from operations.

We continue to seek additional financing, whether in the form of senior debt, subordinated debt, or equity. We currently have no commitments for financing that are not at the investor’s election. There is no guarantee that we will successfully raise funds required to support our operations.

We will need approximately $1,000,000 in addition to our normal operating cash flow to conduct operations during the next twelve months. However, there can be no assurance that additional private or public financing, including debt or equity financing, will be available as needed or, if available, on terms favorable to us. Any additional equity financing may be dilutive to stockholders. Such additional equity securities may have rights, preferences, or privileges that are senior to those of our existing common or preferred stock. Furthermore, if available, debt financing will require the payment of interest. However, it may involve restrictive covenants limiting our operating flexibility if we cannot generate sufficient liquidity from operations or raise enough capital resources on acceptable terms. In that case, this could have a material adverse effect on our business, results of operations, liquidity, and financial condition. We must adjust our planned operations and development on a more limited scale.

The effect of inflation on our revenue and operating results was not significant. Our operations are located in North America, and no seasonal aspects would have a material impact on our financial condition or results of operations.

~~GOING~~While we have raised capital to meet our working capital ~~CONCERN~~and ~~ISSUES~~financing needs in the past, additional financing is required in order to meet our current and potential future cash flow deficits from operations.

~~The Company’s~~We ~~historical~~continue ~~losses~~to ~~and~~seek ~~the~~additional ~~lack~~financing, ofwhich ~~revenues~~may be ~~raise~~in ~~substantial doubts about~~ the ~~Company’s~~form ~~ability~~of tosenior ~~continue~~debt, ~~as a~~subordinated ~~going~~debt ~~concern~~or equity. We ~~cannot~~currently ~~assure~~have ~~that~~no ~~our~~commitments ~~business~~for ~~operations~~financing ~~will~~that ~~develop~~are ~~and~~not ~~provide~~at usthe ~~with significant cash to continue operations.~~investor’s Ifelection. weThere ~~cannot~~is ~~build~~no ~~our~~guarantee ~~business,~~that we ~~have~~will tobe ~~discontinue~~successful ~~operations~~in orraising ~~cease~~the tofunds ~~exist,~~required ~~which would be detrimental~~ to ~~the~~support ~~value~~our ~~of the Company’s common stock~~operations.

~~To improve~~We ~~the~~estimate ~~Company’s~~that ~~liquidity~~we will need approximately $1,000,000 in addition to our normal operating cash flow to conduct operations during the ~~Company’s~~next ~~management~~twelve ismonths. ~~actively~~However, ~~pursuing~~there can be no assurance that additional private or public financing, ~~through~~including ~~discussions~~debt ~~with investment~~or ~~bankers~~equity financing, ~~financial~~will ~~institutions~~be available as needed, ~~and~~or, ~~private~~if ~~investors~~available, on terms favorable to us. ~~There~~Any ~~can~~additional equity financing may be nodilutive ~~assurance~~to stockholders and such additional equity securities may have rights, preferences or privileges that ~~the~~are ~~Company~~senior to those of our existing common or preferred stock. Furthermore, debt financing, if available, will berequire payment of interest and may involve restrictive covenants that could impose limitations on our operating flexibility. However, if we are not successful in ~~its~~generating sufficient liquidity from operations or in raising sufficient capital resources, on terms acceptable ~~effort~~to us, this could have a material adverse effect on our business, results of operations, liquidity and financial condition, and we will have to ~~secure~~adjust ~~additional~~our ~~financing~~planned operations and development on a more limited scale.

~~We continue~~The toeffect ~~experience~~of ~~net~~inflation ~~operating~~on ~~losses.~~our ~~Our~~revenue ~~ability~~and tooperating results ~~continue~~was asnot asignificant. ~~going~~Our ~~concern is subject to our ability to develop profitable~~ operations. We are ~~devoting~~located ~~all~~in ~~our~~North ~~efforts~~America ~~to growing our business~~ and ~~raising~~there ~~capital.~~are ~~Our~~no ~~net~~seasonal ~~operating~~aspects ~~losses~~that ~~increase~~would ~~the~~have ~~difficulty~~a material ineffect ~~meeting~~on ~~such~~our ~~goals,~~financial ~~and~~condition ~~there~~or ~~can~~results beof ~~no assurance that such methods will prove successful~~operations.

~~The primary~~AUDITOR’S ~~issues~~OPINION ~~management~~EXPRESSES ~~will~~DOUBT ~~focus~~ABOUT ~~on in the immediate future include: seeking additional credit facilities from institutional lenders,~~THE ~~institutional~~COMPANY’S ~~investors~~ABILITY ~~for~~TO ~~debt~~CONTINUE orAS ~~equity~~A ~~investments~~“GOING ~~in our Company, short-term interim debt financing: and private placements of debt and equity securities with accredited investors.~~CONCERN”

ToThe independent auditors report on our April 30, 2025, ~~address~~and ~~these~~2024 ~~issues~~financial statements included in the Company’s Annual Report states that the Company’s historical losses and the lack of revenues raise substantial doubts about the Company’s ability to continue as a going concern due to the losses incurred and its lack of significant operations. If we are unable to develop our business, we have ~~engaged~~to adiscontinue ~~financial~~operations ~~advisory~~or ~~firm~~cease to ~~advise~~exist, which would be detrimental to the value of the Company’s common stock. We can make no assurances that our business operations will develop and ~~assist~~provide us inwith ~~negotiating~~significant ~~and~~cash ~~raising~~to ~~capital~~continue operations.

~~INFLATION~~In order to improve the Company’s liquidity, the Company’s management is actively pursuing additional financing through discussions with investment bankers, financial institutions and private investors. There can be no assurance that the Company will be successful in its effort to secure additional financing.

~~The impact~~We ofcontinue ~~inflation~~to onexperience ~~the~~net ~~costs~~operating oflosses. ~~the Company and the~~ Our ability to ~~pass~~continue onas ~~cost~~a ~~increases~~going toconcern ~~its~~is ~~customers~~subject ~~over~~to ~~time~~our isability ~~dependent~~to ~~upon market~~develop ~~conditions~~profitable operations. ~~The~~We ~~Company~~are isdevoting ~~not~~substantially ~~aware~~all of our ~~any~~efforts ~~inflationary~~to ~~pressures~~developing ~~that~~our ~~have~~business ~~had~~and ~~any~~raising ~~significant~~capital. ~~impact~~Our onnet ~~the~~operating ~~Company’s operations~~losses ~~over~~increase the ~~past~~difficulty ~~quarter,~~in ~~and~~meeting ~~the~~such ~~Company~~goals ~~does~~and there ~~not~~can ~~anticipate~~be no assurances that ~~inflationary~~such ~~factors~~methods will ~~have~~prove ~~a substantial effect on future operations~~successful.

~~OFF-BALANCE SHEET~~Product ~~ARRANGEMENTS~~Research and Development

~~The Company~~We ~~does~~do not ~~maintain~~anticipate ~~off-balance~~incurring ~~sheet~~significant ~~arrangements~~research and ordevelopment ~~participate~~expenditures induring ~~non-exchange~~the ~~traded~~next ~~contracts~~twelve ~~requiring fair value accounting treatment~~months.

Acquisition or Disposition of Plant and Equipment

We do not anticipate the acquisition or sale of any significant property, plant or equipment during the next twelve months.

Number of Employees

From our inception through the period ended July 31, 2025, we have relied on the services of outside consultants for services and currently have four full-time employees and three part-time employees. In order for us to attract and retain quality personnel, we anticipate we will have to offer competitive salaries to future employees. If we fully implement our business plan, we anticipate our employment base may increase during the next twelve months. As we continue to expand, we will incur additional cost for personnel. This projected increase in personnel is dependent upon our generating revenues and obtaining sources of financing. There is no guarantee that we will be successful in raising the funds required or generating revenues sufficient to fund the projected increase in the number of employees.

Inflation

The impact of inflation on our costs and the ability to pass on cost increases to our customers overtime is dependent upon market conditions. We are not aware of any inflationary pressures that have had any significant impact on our operations over the past year, and we do not anticipate that inflationary factors will have a significant impact on future operations.

CRITICAL ACCOUNTING POLICIES

The preparation of our financial statements in conformity with accounting principles generally accepted in the United States requires us to make estimates and judgments that affect our reported assets, liabilities, revenues, and expenses, and the disclosure of contingent assets and liabilities. We base our estimates and judgments on historical experience and on various other assumptions, we believe to be reasonable under the circumstances. Future events, however, may differ markedly from our current expectations and assumptions. While there are a number of significant accounting policies affecting our financial statements, we believe the following critical accounting policy involves the most complex, difficult and subjective estimates and judgments.

Revenue Recognition

During the first quarter of 2018, the Company adopted ASU 2014-09, Revenue from Contracts with Customers (Topic 606), using the cumulative-effect method. The new standard requires an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The adoption did not have an impact in our consolidated financial statements, other than the enhancement of our disclosures related to our revenue-generating activities.

The Company acts as a principal in its revenue transactions as the Company is the primary obligor in the transactions.

Revenues from mobile app products and New World Health Brands products are generally recognized upon delivery. Revenues from History Reports are generally recognized upon delivery / download. Prepayments received from customers before delivery (if any) are recognized as deferred revenue and recognized upon delivery. The Company records deferred revenues when cash payments are received or due in advance of our performance, including amounts which are refundable.

Information Technology:

The Company recognizes revenue when the following criteria have been met persuasive evidence of an arrangement exists, no significant Company obligations remain, collection of the related receivable is reasonably assured, and the fees are fixed or determinable. The Company acts as a principal in its revenue transactions as the Company is the primary obligor in the transactions.

Revenues from mobile app products are generally recognized upon delivery. Revenues from History Reports are generally recognized upon delivery / download. Prepayments received from customers before delivery (if any) are recognized as deferred revenue and recognized upon delivery.

New World Health Brands:

Revenues from New World Health Brands products are generally recognized upon delivery.

Stock-Based Compensation

The Company adopted Financial Accounting Standards Board Accounting Standard Codification Topic 718 (“ASC 718-10”), which records compensation expense on a straight-line basis, generally over the explicit service period of three to five years.

ASC 718-10 requires companies to estimate the fair value of share-based payment awards on the date of grant using an option-pricing model. The value of the portion of the award that is ultimately expected to be vest is recognized as expense over the requisite service periods in the Company’s Consolidated Statement of Operations. The Company is using the Black-Scholes option-pricing model as its method of valuation for share-based awards. The Company’s determination of fair value of share-based payment awards on the date of grant using an option-pricing model is affected by the Company’s stock price as well as assumptions regarding a number of highly complex and subjective variables. These variables include but are not limited to the Company’s expected stock price volatility over the term of the awards, and certain other market variables such as the risk-free interest rate.

Inventories

The Company’s inventories represent finished goods, consist of products available for sale and are accounted for using the first-in, first-out (FIFO) method and valued at the lower of cost or net realizable value. Inventory consists of finished goods for the Company’s New World Health Brands business.

Convertible Instruments

The Company accounts for convertible instruments (when it has determined that the embedded conversion options should not be bifurcated from their host instruments) in accordance with professional standards when “Accounting for Convertible Securities with Beneficial Conversion Features,” as those professional standards pertain to “Certain Convertible Instruments.” Accordingly, the Company records, when necessary, discounts to convertible notes for the intrinsic value of conversion options embedded in debt instruments based upon the differences between the fair value of the underlying common stock at the commitment date of the note transaction and the effective conversion price embedded in the note. Debt discounts under these arrangements are amortized over the term of the related debt to their earliest date of redemption. The Company also records when necessary deemed dividends for the intrinsic value of conversion options embedded in preferred shares based upon the differences between the fair value of the underlying common stock at the commitment date of the note transaction and the effective conversion price embedded in the note. ASC 815-40 provides that, among other things, generally, if an event is not within the entity’s control could or require net cash settlement, then the contract shall be classified as an asset or a liability.

Derivative Liabilities

RECENT ACCOUNTING PRONOUNCEMENTS

Recently adopted accounting pronouncements require public companies to disclose the impact of new standards on their financial statements, including details about the standard, the adoption date, method of adoption, and expected effects. These disclosures help investors understand how changes in accounting principles will affect a company’s financial performance and position.

Recently Adopted Accounting Pronouncements. In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280). The amendments in this update expand segment disclosure requirements, including new segment disclosure requirements for entities with a single reportable segment among other disclosure requirements. This update is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Adoption of this standard is on a modified retrospective basis and had no impact on the Company’s financial position, results of operations, cash flows or net income per share. As of July 31, 2025, and April 30, 2025, the Company had one reporting segment, all revenue is reported under this segment Sparta Commercial Services, Inc.

Other accounting standards and amendments to existing accounting standards that have been issued and have future effective dates are not applicable or are not expected to have a significant impact on the Company’s consolidated financial statements.

Off-Balance Sheet Arrangements

We do not maintain off-balance sheet arrangements, nor do we participate in non-exchange traded contracts requiring fair value accounting treatment.

CRITICAL ACCOUNTING POLICIES

The preparation of our financial statements in conformity with accounting principles generally accepted in the United States requires us to make estimates and judgments that affect our reported assets, liabilities, revenues, and expenses and the disclosure of contingent assets and liabilities. We base our estimates and judgments on historical experience and various other assumptions we believe to be reasonable under the circumstances. Future events, however, may differ markedly from our current expectations and assumptions. While several significant accounting policies affect our financial statements, the following critical accounting policy involves the most complex, difficult, and subjective estimates and judgments.

Revenue Recognition

During the first quarter of 2018, the Company adopted ASU 2014-09, Revenue from Contracts with Customers (Topic 606), using the cumulative-effect method. The new standard requires an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The adoption did not impact our consolidated financial statements other than the enhancement of our disclosures related to our revenue-generating activities.

2023

The Company acts as athe principal in its revenue transactions as it is the primary obligor.

Revenues from mobile app products and New World Health Brands products are generally recognized upon delivery. Revenues from History Reports are generally recognized upon delivery/download. Prepayments received from customers before delivery (if any) are recognized as deferred revenue and recognized upon delivery. The Company records deferred revenues when cash payments are received or due before our performance, including refundable amounts.

Information Technology:

The Company recognizes revenue when the following criteria have been met:

	●	Persuasive evidence of an arrangement exists.
	●	No significant Company obligations remain.
	●	Collection of the related receivable is reasonably assured.
	●	The fees are fixed or determinable.

The Company acts as athe principal in its revenue transactions as it is the primary obligor.

Revenues from mobile app products are generally recognized upon delivery. Revenues from History Reports are generally recognized upon delivery/download. Prepayments received from customers before delivery (if any) are recognized as deferred revenue and recognized upon delivery.

New World Health Brands:

Revenues from New World Health Brands products are generally recognized upon delivery.

Merchant Financing:

Revenues from merchant financing is recognized over the life of the contracts.

Stock-Based Compensation

ASC 718-10 requires companies to estimate the fair value of share-based payment awards on the grant date using an option-pricing model. The value of the portion of the award that is ultimately expected to be vest is recognized as expense over the requisite service periods in the Company’s Consolidated Statement of Operations. The Company is using the Black-Scholes option-pricing model as its method of valuation for share-based awards. The Company’s determination of the fair value of share-based payment awards on the date of grant using an option-pricing model is affected by the Company’s stock price as well as assumptions regarding several highly complex and subjective variables. These variables include but are not limited to the Company’s expected stock price volatility over the awards term and other market variables, such as the risk-free interest rate.

Inventories

Inventory comprises finished goods for the Company’s New World Health Brands business. The Company’s inventories represent finished goods, consisting of products available for sale. They are accounted for using the first-in, first-out (FIFO) method and valued at the lower cost or net realizable value.

Convertible Instruments

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ASC 815-40 provides that, among other things, generally, if an event is not within the entity’s control and could or require net cash settlement, then the contract shall be classified as an asset or a liability. The Company accounts for convertible instruments (when it has determined that the embedded conversion options should not be bifurcated from their host instruments) in accordance with professional standards when “Accounting for Convertible Securities with Beneficial Conversion Features,” as those professional standards pertain to “Certain Convertible Instruments.” Accordingly, the Company records, when necessary, discounts to convertible notes for the intrinsic value of conversion options embedded in debt instruments based on the differences between the fair value of the underlying common stock at the commitment date of the note transaction and the effective conversion price embedded in the note. The Company also records, when necessary, deemed dividends for the intrinsic value of conversion options embedded in preferred shares based upon the differences between the underlying common stock’s fair value at the note transaction’s commitment date and the effective conversion price embedded in the note. Debt discounts under these arrangements are amortized over the term of the related debt to their earliest ~~redemption~~ date of redemption.

Derivative Liabilities

RECENT ACCOUNTING PRONOUNCEMENTS

For information regarding recent accounting pronouncements and their effect on the Company, see “Recent Accounting Pronouncements” in Note A of the Notes to Consolidated Financial Statements contained herein.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Not applicable.

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

We maintain disclosure controls and procedures, as defined in Rule 13a-15(e) promulgated under the Exchange Act, that are designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the periods specified in the SEC’s rules and forms and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Principal Financial Officer, as appropriate to allow timely decisions regarding required disclosure. Under the supervision and participation of our management, including our Chief Executive Officer and Principal Financial Officer, we evaluated the effectiveness of our disclosure controls and procedures as of ~~January~~July 31, ~~2024~~2025. Based on the evaluation of these disclosure controls and procedures and in light of the material weaknesses found in our internal controls, the Chief Executive Officer and Principal Financial Officer concluded that our disclosure controls and procedures were not effective.

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Management Report on Internal Control over Financial Reporting

Our management is responsible for establishing and maintaining adequate internal control over financial reporting, as defined in Rule 13a-15(f) of the Exchange Act. Under the supervision and with the participation of our Chief Executive Officer and Principal Financial Officer, we evaluated the effectiveness of our internal control over financial reporting as of ~~January~~July 31, 2025, using the criteria established in in the Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

A material weakness is a deficiency, or combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of our annual or interim financial statements will not be prevented or detected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control over financial reporting that is less severe than a material weakness yet necessary enough to merit attention by those responsible for oversight of the Company’s financial reporting. In our assessment of the effectiveness of internal control over financial reporting as of ~~January~~July 31, 2025, we determined that control deficiencies existed that constituted material weaknesses, as described below:

● lack of documented policies and procedures;.

● we have no audit committee;.

● there is a risk of management override, given that our officers have a high degree of involvement in our day-to-day operations;.

● there is no effective separation of duties, which ~~includes~~include monitoring controls, between the members of management.

Due to our size and nature, segregation of all conflicting duties may not always be possible and may not be economically feasible. As a result, we have been unable to improve our internal controls over financial reporting during the quarter ending ~~January~~July 31, 2025. However, to ~~the~~ the extent possible, we will implement procedures to ensure that the initiation of transactions, the custody of assets, and the recording of transactions will be performed by separate individuals. Management is currently evaluating the steps to address these material weaknesses.

Accordingly, these control deficiencies resulted in a reasonable possibility that a material misstatement of the annual or interim financial statements will not be prevented or detected on a timely basis by our internal controls.

As a result of the material weaknesses described above, management has concluded that we did not maintain effective internal control over financial reporting as of ~~January~~July 31, 2025, based on criteria established in Internal Control Integrated Framework issued by COSO.

In light of these significant deficiencies, we performed additional analyses and procedures to conclude that our consolidated financial statements for the quarter ended ~~January~~July 31, 2025, included in this quarterly report on Form 10-Q, were fairly stated in accordance with U.S. GAAP. Accordingly, management believes that despite our significant deficiency, our consolidated financial statements for the ~~nine~~three months ended ~~January~~July 31, 2025, are fairly stated, in all material respects, in accordance with U.S. GAAP.

This annual report does not include an attestation report of the Company’s registered public accounting firm regarding internal control over financial reporting. Management’s report was not subject to attestation by the Company’s registered public accounting firm pursuant to rules of the Securities and Exchange Commission that permit a smaller reporting company to provide only management’s report in its annual report.

Statement of Auditing Standards No. 100, Interim Financial Information (“SAS100”) requires a registrant to engage an independent accountant to review the registrant’s interim financial information. The financial statements included in this filing has not been subject to a review by its independent public accountant

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PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

ITEM 1A. RISK FACTORS

We are subject to certain risks and uncertainties in our business operations, including those described below. The risks and uncertainties described below are not the only risks we face. Additional risks and uncertainties not presently known or deemed immaterial may also impair our business operations. A description of factors that could materially affect our business, financial condition, or operating results was included in Item 1A, “Risk Factors,” of our Form 10-K for the year ended April 30, ~~2024~~2025, and is incorporated herein by reference.

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ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Each issuance and sale of securities described below was deemed exempt from registration under the Securities Act in reliance on Section 4(a)(2) of the Securities Act of 1933, as amended, as transactions by an issuer not involving a public offering. No advertising or general solicitation was employed in offering the securities. Each purchaser is a sophisticated investor (as described in Rule 506(b) (2) (ii) of Regulation D) or an accredited investor (as defined in Rule 501 of Regulation D). Each received adequate information about the Company or had access to such information, through employment or other relationships, to such information.

Sales of Preferred Stock, Common Stock, and Warrants:

During the ~~nine~~three months that ended ~~January~~July 31, 2025, the Company:

● Issued 4,539,683 shares and 2,928,454 shares to be issued valued at $791,500 to accredited investors related to equity investments. ● Issued 353,956 shares valued at $78,016 for consulting services. ● 989,847 shares of common stock to be issued as an incentive or penalty to noteholders valued at $201,789. ● Issued 850,000 shares of common stock valued at $85,000 upon the conversion of convertible notes ● Issued 36,000 shares valued at $6,000 upon the conversion of preferred series C shares ● Issued 120,000 shares valued at $30,000 upon the conversion of preferred series D shares

	●	Sold 781,986 and subscribed 538,424 shares of common stock to accredited investors for cash of $95,000.
	●	Entered into promissory notes with accredited investors totaling $166,000.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 5. OTHER INFORMATION

Not applicable.

ITEM 6. EXHIBITS

The following exhibits are filed with this Report:

Exhibit No.		Description
31.1*		Certification of Chief Executive Officer pursuant to Securities Exchange Act Rule 13a-14(a)/15d-14(a)
31.2*		Certification of Principal Financial Officer pursuant to Securities Exchange Act Rule 13a-14(a)/15d-14(a)
32.1*		Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350
101. I.N.S.*		Inline XBRL Instance Document
101. S.C.H.*		Inline XBRL Taxonomy Extension Schema
101. C.A.L.*		Inline XBRL Taxonomy Extension Calculation Linkbase
101. D.E.F.*		Inline XBRL Taxonomy Extension Definition Linkbase
101. L.A.B.*		Inline XBRL Taxonomy Extension Label Linkbase
101. P.R.E.*		Inline XBRL Taxonomy Extension Presentation Linkbase
104		Cover Page Interactive Data File (embedded within the Inline XBRL document)

*Filed herewith

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant caused this Report to be signed on its behalf by the undersigned thereunto duly authorized.

	SPARTA COMMERCIAL SERVICES, INC.
Date: March, 25, 2025	By:	/s/ Anthony L. Havens
Date: September 19, 2025	By:	/s/ Anthony L. Havens
		Anthony L. Havens, Chief Executive Officer,
		Principal financial and accounting officer

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Filing Compare · SPARTA COMMERCIAL SERVICES, INC.