Financial Analysis

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 $ 36,000 and $ 36,000 for the six months period ending October 31, 2025, and 2024, respectively. 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 5 five -year options to purchase 376,256 shares of the Companys common stock at $ 0.308 per share. The options vest in three equal tranches over three years . Ms. Ahman received 5 five -year options to purchase 125,419 shares of the Companys 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 businesss ordinary course. …

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NOTE C NOTES PAYABLE AND DERIVATIVES The Company has 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 October 31, 2025 April 30, 2025 Convertible notes payable $ 5,006,444 $ 5,124,971 Non-convertible notes payable 1,617,400 1,338,200 Accrued interest 2,184,479 1,907,205 Notes payable gross 8,808,323 8,370,376 Discount on notes payable (15,999 ) - Notes payable, net $ 8,792,324 $ 8,370,376 Certain notes payable contains variable conversion rates, and the conversion features are classified as derivative liabilities. The conversion prices are based on the market price of the Companys common stock, at discounts of 60 % to market value. The Companys 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 Companys 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 Entitys Own Equity (ASC 815-40), as a result of entering into the Convertible Notes Payable, the …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The following table presents our revenues disaggregated by revenue source: SCHEDULE OF DISAGGREGATION REVENUE 2025 2024 For the Six Months Ended October 31, 2025 2024 Information Technology $ 67,682 $ 62,039 Wellness products 21,990 11,182 Merchant financing 106,323 16,138 Total $ 195,995 $ 89,359

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NOTE F FAIR VALUE MEASUREMENTS The Company follows the guidance established pursuant to ASC 820 which established a framework for measuring fair value and expands 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 October 31, 2025, and April 30, 2025: SCHEDULE OF FAIR VALUES OF FINANCIAL LIABILITIES Fair Value at Fair Value Measurement Using October 31, 2025 Level …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

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 companys 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 Companys financial position, results of operations, cash flows or net income per share. As of 2024 and 2023 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 Companys consolidated financial statements. …

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NOTE D LOANS PAYABLE TO RELATED PARTIES As of October 31, 2025, and April 30, 2025, aggregated loans payable to related parties and, without demand to officers and directors, were $ 643,262 and $ 636,233 respectively. …

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NOTE A SUMMARY OF ACCOUNTING POLICIES A summary of the significant accounting policies applied in the preparation of the accompanying 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, New York, and a corporate website at www.spartacommercial.com, with subsidiary addresses in Stamford, CT. We operate as a multi-disciplined parent corporation across 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. Spartas origins are in the Powersports consumer finance industry, historically providing retail installment loans and leases through authorized motorcycle dealerships in 33 states, supported by financing lines of credit from institutional lenders. We built and maintained a full underwriting and servicing platform for our portfolio until discontinuing our consumer loans and leases business after the 2008 financial crisis. Basis of Presentation The accompanying unaudited condensed consolidated financial statements as of October 31, 2025, and for the three months ended October 31, 2025, and 2024 have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange C …

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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 six months ended October 31, 2025, and 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 44,573,124 and 40,133,669 shares of common stock issued and outstanding as of October 31, 2025, and April 30, 2025, respectively. The Company had 34,772,174 and 33,612,875 shares of common classified as to be issued at October 31, 2025, and April 30, 2025, respectively. During the six months ended October 31, 2025, the Company Issued 1,327,646 shares and 1,024,299 shares to be issued valued at $ 165,000 to accredited investors related to equity investments which includes 1,175,973 warrants at fair value of $ 45,753 Issued 1,300,000 shares valued at $ 146,975 for consulting services Issued 136,809 shares of common stock valued at $ 19,985 upon the settlement of liability Iss …

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NOTE K SUBSEQUENT EVENTS The Company 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 October 31, 2025, the Company: Issued 579,832 shares valued at $ 75,000 to accredited investors related to equity investments Issued 100,000 shares valued at $ 9,602 for consulting services Issued 400,000 shares of common stock as penalty to noteholders valued at $ 84,000 …

SubsequentEventsTextBlock · excerpt; the full note is in the filing