SPARTA COMMERCIAL SERVICES, INC. 8-K

What Happened
Sparta Commercial Services, Inc. (SRCO) filed an 8-K (Jan 20, 2026) disclosing stock option grants to company insiders and employees. The company granted an aggregate of 3,600,000 options to CEO Anthony L. Havens and VP of Operations Sandra L. Ahman, five‑year options to each of its two independent directors (350,000 shares each) on January 16, 2026, and issued 260,000 non‑qualified options to employees. The options vest in three equal tranches over three years and have a $0.14 per share exercise price.

Key Details

• Total options granted represent up to 4,560,000 shares (3,600,000 to CEO/VP + 700,000 to two directors + 260,000 to employees).
• Exercise price: $0.14 per share (stated as 110% of the 30‑day closing price prior to the option date).
• Term and vesting: five‑year term; vesting in three equal tranches over three years.
• Issuance: employee options identified as non‑qualified; the company relied on Section 4(a)(2) of the Securities Act to exempt the issuances from registration.

Why It Matters
These grants align management and board incentives with future stock performance but also create potential dilution if and when options are exercised—up to 4.56 million additional shares outstanding. The exercise price is set at a 10% premium to the recent 30‑day average, meaning holders must see share price appreciation before exercising. Investors should note the timing, size of the grants, and vesting schedule when assessing potential dilution and management incentives; the filing does not provide current outstanding share count or the immediate percentage impact.