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 $ 18,000 and $ 18,000 for the three months period ending July 31, 2026, and April 30, 2026, 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 $ 0.14 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 $ 0.14 per share. The options vest in three equal tranches over three years . Accrued Payroll Taxes (FICA and State Tax Payable) Accrued payroll taxes consist primarily of obligatio …

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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: 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 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 d …

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The following table presents our revenues disaggregated by revenue source: SCHEDULE OF REVENUES DISAGGREGATED 2026 2025 For the three months ended July 31 2026 2025 Revenue Information technology 45,154 32,768 Wellness products 2,186 11,330 Merchant financing 358 52,590 Total Revenue 47,698 96,688

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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 July 31, 2026, and April 30, 2026: SCHEDULE OF FAIR VALUES OF FINANCIAL LIABILITIES Fair Value at Fair Value Measurement Using July 31, 2026 Level 1 Lev …

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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. 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 July 31, 2026, and April 30, 2026, aggregated loans payable to related parties and, without demand to officers and directors, were $ 653,690 and $ 650,176 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 July 31, 2026, and for the three months ended July 31, 2026, and 2025 have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commiss …

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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. Common Stock The Company is authorized to issue 750,000,000 shares of common stock, $ 0.001 par value. The Company had 54,636,926 and 53,602,365 shares of common stock issued and outstanding as of July 31, 2026, and April 30, 2026, respectively. The Company had 35,334,706 and 34,028,221 shares of common classified as to be issued at July 31, 2026, and April 30, 2026, respectively. During the three months ended July 31, 2026, the Company Issued 559,561 shares and 539,001 shares to be issued valued at $ 60,000 to accredited investors related to equity investments which includes 549,282 warrants at fair value of $ 15,710 . Issued 400,000 shares and 100,000 shares to be issued valued at $ 46,000 for consulting services. Issued 75,000 shares of common stock valued at $ 12,500 upon the conversion of 25,000 shares of preferred series C shares. During the three months ended July 31, 2025, the Compan …

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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 July 31, 2026, the Company: Issued 219,339 shares valued at $ 15,000 to accredited investors related to equity investments Issued 500,094 shares valued at $ 57,000 for conversion of iMoble shares Issued 473,829 shares valued at $ 32,271 for conversion of notes payable Issued 293,655 shares valued at $ 20,000 for note holder incentive Issued 35,000 shares valued at $ 2,625 to accredited investors relating to promissory notes Issued 50,000 shares valued at $ 3,825 to accredited investors relating as commitment shares …

SubsequentEventsTextBlock · excerpt; the full note is in the filing