Sparta Commercial Services, Inc.

Sparta Commercial Services, Inc. (SRCO) recorded total revenue of $92K for the three months ended January 31, 2026, up 17% year-over-year from $79K, primarily driven by merchant financing ($52K, +37%) and information technology ($33K, +28%), offset by a decline in wellness products ($7K, -54%). Gross profit improved 21% to $87K with cost of goods sold at $5K. Operating expenses rose to $295K, led by compensation ($188K) and consulting fees ($42K), yielding an operating loss of $208K, 12% wider than prior year. High interest expense on notes ($345K) and changes in derivative fair value ($147K loss) contributed to a net loss of $405K, nearly unchanged from $406K YoY. For the nine months, revenue grew 71% to $288K, with net loss narrowing to $1.4M from $1.8M. Balance sheet shows total assets steady at $933K (cash $70K, loans receivable $844K), but liabilities climbed to $12.1M (current notes $9.0M, derivatives $968K), deepening stockholders' deficit to $11.2M. YTD operating cash use $725K was funded by $664K financing inflows. Substantial going concern doubts persist due to recurring losses, $70.3M accumulated deficit, and $10.5M working capital deficit; management seeks equity financing.

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