Cover
Cover - shares | 9 Months Ended | |
Jan. 31, 2024 | Mar. 25, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jan. 31, 2024 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2024 | |
Current Fiscal Year End Date | --04-30 | |
Entity File Number | 0-9483 | |
Entity Registrant Name | SPARTA COMMERCIAL SERVICES, INC. | |
Entity Central Index Key | 0000318299 | |
Entity Tax Identification Number | 30-0298178 | |
Entity Incorporation, State or Country Code | NV | |
Entity Address, Address Line One | 555 Fifth Avenue | |
Entity Address, Address Line Two | 14th Floor | |
Entity Address, City or Town | New York | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10017 | |
City Area Code | (212) | |
Local Phone Number | 239-2666 | |
Title of 12(b) Security | Common stock, $.001 par value | |
Trading Symbol | SRCO | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 29,495,189 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) | Jan. 31, 2024 | Apr. 30, 2023 |
Current Assets | ||
Cash and cash equivalents | $ 5,417 | $ 4,028 |
Accounts receivable | 2,890 | |
Inventory | 3,831 | |
Other current assets | ||
Total Current Assets | 12,138 | 4,028 |
Property and equipment, net of accumulated depreciation and amortization of $213,262 and $213,262, respectively | ||
Deposits - rent deposit | 9,000 | 9,000 |
Total assets | 21,138 | 13,028 |
Current Liabilities | ||
Bank overdraft | 54,410 | |
Short Term Loan | 216,585 | 1,585 |
Accounts payable and accrued expenses | 1,587,488 | 1,698,457 |
Derivative liabilities | 1,042,955 | 1,375,767 |
Current portion notes payable | 6,946,644 | 6,694,245 |
Deferred revenue | ||
Total Current Liabilities | 9,793,673 | 9,824,464 |
Total Long Term Liabilities | 529,294 | 435,753 |
Total liabilities | 10,322,967 | 10,260,217 |
Stockholders’ Deficit: | ||
Common stock, $0.001 par value; 750,000,000 shares authorized, and 26,141,106 and 23,045,205 shares issued and outstanding, respectively | 26,141 | 23,045 |
Common stock to be issued 2,669,956 and 23,704,788 respectively | 26,322 | 23,705 |
Additional paid-in-capital | 55,533,691 | 54,872,206 |
Accumulated deficit | (66,880,291) | (66,150,857) |
Total deficiency in stockholders’ equity | (11,279,318) | (11,216,484) |
Non-controlling interest | 977,489 | 969,295 |
Total Deficit | (10,301,828) | (10,247,189) |
Total Liabilities and Deficit | 21,138 | 13,028 |
Series A Convertible Preferred Stock [Member] | ||
Stockholders’ Deficit: | ||
Preferred stock, value | 12,500 | 12,500 |
Series C Preferred Stock [Member] | ||
Stockholders’ Deficit: | ||
Preferred stock, value | 1,919 | 1,979 |
Series D Preferred Stock [Member] | ||
Stockholders’ Deficit: | ||
Preferred stock, value | 401 | 938 |
Related Party [Member] | ||
Current Liabilities | ||
Loans payable-related parties | $ 529,294 | $ 435,753 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) | Jan. 31, 2024 | Apr. 30, 2023 |
Property and equipment, net of accumulated depreciation and amortization | $ 213,262 | $ 213,262 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares designated | 10,000,000 | 10,000,000 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 750,000,000 | 750,000,000 |
Common stock shares issued | 26,141,106 | 23,045,205 |
Common stock shares outstanding | 26,141,106 | 23,045,205 |
Common stock to be issued | 2,669,956 | 23,704,788 |
Series A Convertible Preferred Stock [Member] | ||
Preferred stock, par value | $ 100 | $ 100 |
Preferred stock, shares designated | 35,850 | 35,850 |
Preferred stock, shares issued | 125 | 125 |
Preferred stock, shares outstanding | 125 | 125 |
Series C Preferred Stock [Member] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares designated | 4,200,000 | 4,200,000 |
Preferred stock, shares issued | 1,979,157 | 2,363,000 |
Preferred stock, shares outstanding | 1,979,157 | 2,363,000 |
Preferred stock, liquidation and redemption value per share | $ 1 | $ 1 |
Series D Preferred Stock [Member] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares designated | 2,000,000 | 2,000,000 |
Preferred stock, shares issued | 937,754 | 618,411 |
Preferred stock, shares outstanding | 937,754 | 618,411 |
Preferred stock, liquidation and redemption value per share | $ 1 | $ 1 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2024 | Jan. 31, 2023 | |
Revenue | ||||
Total Revenue | $ 36,736 | $ 63,670 | $ 151,433 | $ 189,042 |
Less Cost of goods sold | 8,010 | 9,142 | 31,218 | 31,987 |
Gross profit | 28,725 | 54,528 | 120,363 | 157,055 |
Operating expenses: | ||||
Compensation and Related Cost | 128,229 | 248,614 | 428,021 | 594,300 |
Consulting Fee | 15,780 | 22,611 | 50,670 | 356,001 |
Rent and lease | 18,000 | 17,100 | 54,000 | 49,700 |
Accounting and Legal | 6,271 | 19,763 | 51,921 | 42,763 |
General and administrative | 105,222 | 95,607 | 308,773 | 238,659 |
Research and Development | ||||
Total operating expenses | 273,503 | 403,695 | 893,386 | 1,281,423 |
Loss from operations | (244,778) | (349,167) | (773,023) | (1,124,368) |
Other Income ( expense) | ||||
Commission on municipal bonds | 8,680 | 473 | 12,577 | 473 |
Financing cost | (155,439) | 2,305 | (440,307) | |
Write off convertible notes and bad debt | 85,912 | (324,970) | 146,701 | 625,064 |
Gain (loss) in changes in fair value of derivative liability | 155,439 | 1,757,044 | 332,812 | 5,044,879 |
Total other (income) expense | 94,592 | 1,434,852 | 51,783 | 5,670,416 |
Net income (loss) | (150,186) | 1,085,685 | (721,240) | 4,546,048 |
Net profit attributable to minority shareholder | (3,514) | (3,080) | (8,195) | (9,794) |
Preferred dividend | ||||
Net income (loss) attributed to common stockholders | $ (153,699) | $ 1,082,605 | $ (729,434) | $ 4,536,254 |
Basic and diluted loss per share: | ||||
Loss from continuing operations attributable to Sparta Commercial Services, Inc. common stockholders, basic | ||||
Loss from continuing operations attributable to Sparta Commercial Services, Inc. common stockholders, diluted | ||||
Net loss attributable to Sparta Commercial Services, Inc. common stockholders, basic | (0.01) | (0.05) | (0.04) | 0.25 |
Net loss attributable to Sparta Commercial Services, Inc. common stockholders, diluted | $ (0.01) | $ (0.05) | $ (0.04) | $ 0.25 |
Weighted average shares outstanding, basic | 25,432,999 | 19,686,822 | 18,074,511 | 18,074,511 |
Weighted average shares outstanding, diluted | 25,432,999 | 19,686,822 | 18,074,511 | 18,074,511 |
Information technology [Member] | ||||
Revenue | ||||
Total Revenue | $ 30,071 | $ 60,120 | $ 128,142 | $ 173,559 |
New World Health [Member] | ||||
Revenue | ||||
Total Revenue | $ 6,665 | $ 3,550 | $ 23,291 | $ 15,483 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Shareholder's Deficits - USD ($) | Preferred Stock [Member] Series A Preferred Stock [Member] | Preferred Stock [Member] Series C Preferred Stock [Member] | Preferred Stock [Member] Series D Preferred Stock [Member] | Common Stock [Member] | Common Stock to be Issued [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Noncontrolling Interest [Member] | Total |
Balance at Apr. 30, 2022 | $ 12,500 | $ 2,363 | $ 618 | $ 15,128 | $ 8,292 | $ 53,210,921 | $ (73,984,686) | $ 984,175 | $ (19,750,689) |
Balance, shares at Apr. 30, 2022 | 125 | 2,163,000 | 618,411 | 15,128,005 | 8,916,805 | ||||
Conversion of notes to common shares | |||||||||
Issuance of common shares for cash | $ 1,824 | 93,175 | 94,999 | ||||||
Issuance of stock for services, shares | 1,824,771 | ||||||||
Shares issued for services | $ (1,595) | (243,786) | (245,381) | ||||||
Conversion of Preferred to common shares | $ (60) | 60 | 9,940 | 9,940 | |||||
Net loss for the quarter | 1,101,351 | 3,924 | 1,105,275 | ||||||
Issuance of stock for services | 1,595 | 243,786 | 245,381 | ||||||
Issuance of preferred shares | |||||||||
Issuance of shares for equity | 518 | 44,128 | 44,646 | ||||||
Balance at Jul. 31, 2022 | $ 12,500 | $ 2,303 | $ 618 | $ 17,301 | $ 10,116 | 53,601,950 | (72,883,335) | 988,099 | (18,250,448) |
Balance, shares at Jul. 31, 2022 | 125 | 2,103,000 | 618,411 | 17,301,298 | 10,741,576 | ||||
Balance at Apr. 30, 2022 | $ 12,500 | $ 2,363 | $ 618 | $ 15,128 | $ 8,292 | 53,210,921 | (73,984,686) | 984,175 | (19,750,689) |
Balance, shares at Apr. 30, 2022 | 125 | 2,163,000 | 618,411 | 15,128,005 | 8,916,805 | ||||
Balance at Jan. 31, 2023 | $ 12,500 | $ 1,979 | $ 938 | $ 21,113 | $ 23,334 | 54,570,072 | (70,684,736) | 994,402 | (15,060,398) |
Balance, shares at Jan. 31, 2023 | 125 | 1,979,157 | 937,754 | 21,581,449 | 23,333,438 | ||||
Balance at Apr. 30, 2022 | $ 12,500 | $ 2,363 | $ 618 | $ 15,128 | $ 8,292 | 53,210,921 | (73,984,686) | 984,175 | (19,750,689) |
Balance, shares at Apr. 30, 2022 | 125 | 2,163,000 | 618,411 | 15,128,005 | 8,916,805 | ||||
Issuance of shares for services, shares | 1,594,960 | ||||||||
Conversion of Preferred to common shares, shares | (60,000) | 60,000 | |||||||
Issuance of shares for equity, shares | 518,333 | ||||||||
Balance at Jul. 31, 2023 | $ 12,500 | $ 1,979 | $ 938 | $ 23,951 | $ 24,007 | 55,052,142 | (66,362,200) | 972,004 | (10,274,679) |
Balance, shares at Jul. 31, 2023 | 125 | 1,979,157 | 937,701 | 23,951,111 | 24,006,882 | ||||
Balance at Jul. 31, 2022 | $ 12,500 | $ 2,303 | $ 618 | $ 17,301 | $ 10,116 | 53,601,950 | (72,883,335) | 988,099 | (18,250,448) |
Balance, shares at Jul. 31, 2022 | 125 | 2,103,000 | 618,411 | 17,301,298 | 10,741,576 | ||||
Net loss for the quarter | 2,352,298 | 2,789 | 2,355,087 | ||||||
Issuance of shares for equity | $ 330 | 24,670 | 25,000 | ||||||
Issuance of shares for equity, shares | 330,179 | ||||||||
Conversion of Preferred to common shares C | $ (581) | $ 581 | 96,915 | 96,915 | |||||
Conversion of Preferred to common shares C, shares | (581,000) | 581,000 | |||||||
Conversion of Preferred to common shares D | $ (141) | $ 141 | 141,053 | 141,053 | |||||
Conversion of Preferred to common shares D, shares | (141,000) | 141,000 | |||||||
Stocks issued as note holder incentive | $ 213 | 19,388 | 19,601 | ||||||
Stocks issued as note holder incentive, shares | 212,500 | ||||||||
Issuance of common shares for cash | $ 135 | 506 | 49,359 | 50,000 | |||||
Issuance of common shares for cash, shares | 134,805 | ||||||||
Balance at Oct. 31, 2022 | $ 12,500 | $ 1,722 | $ 477 | $ 18,701 | $ 10,622 | 53,933,335 | (70,531,037) | 990,888 | (15,562,792) |
Balance, shares at Oct. 31, 2022 | 125 | 1,522,000 | 477,411 | 18,700,782 | 11,247,437 | ||||
Issuance of stock for services, shares | 333,939 | ||||||||
Shares issued for services | $ (334) | (37,261) | (37,595) | ||||||
Net loss for the quarter | (153,699) | 3,514 | (150,186) | ||||||
Issuance of stock for services | 334 | 37,261 | 37,595 | ||||||
Issuance of shares for equity | $ 952 | 83,098 | 84,050 | ||||||
Issuance of shares for equity, shares | 952,036 | ||||||||
Conversion of preferred shares | $ (1,922) | $ 747 | $ 1,175.10 | 190,103 | 190,103 | ||||
Conversion of preferred shares, shares | (1,922,101) | 747,000 | 1,175,101 | ||||||
Issuance for Notes payable | $ 379 | 34,160 | 34,539 | ||||||
Issuance for Notes payable, shares | 378,909 | ||||||||
Adjustment | $ 2,179 | $ 461 | $ 11,537 | 292,115 | 306,292 | ||||
Adjustment, shares | 2,379,258 | 460,343 | 468,783 | 10,910,900 | |||||
Balance at Jan. 31, 2023 | $ 12,500 | $ 1,979 | $ 938 | $ 21,113 | $ 23,334 | 54,570,072 | (70,684,736) | 994,402 | (15,060,398) |
Balance, shares at Jan. 31, 2023 | 125 | 1,979,157 | 937,754 | 21,581,449 | 23,333,438 | ||||
Balance at Apr. 30, 2023 | $ 12,500 | $ 1,979 | $ 938 | $ 23,045 | $ 23,705 | 54,872,206 | (66,150,857) | 969,295 | (10,247,189) |
Balance, shares at Apr. 30, 2023 | 125 | 1,979,157 | 937,701 | 23,045,205 | 23,704,788 | ||||
Issuance of Preferred and Common Stock for Cash | $ 1,133 | 103,867 | 105,000 | ||||||
Issuance of Preferred and Common Stock for Cash, shares | 1,133,000 | ||||||||
Conversion of notes to common shares | $ 75 | 6,900 | 6,975 | ||||||
Conversion of notes to common shares, shares | 75,000 | ||||||||
Issuance of common shares for cash | $ 831 | $ (831) | 69,169 | 2,709 | 71,878 | ||||
Issuance of stock for services, shares | 830,906 | (830,906) | |||||||
Shares issued for services | (211,343) | (211,343) | |||||||
Conversion of Preferred to common shares | |||||||||
Preferred dividend | |||||||||
Net loss for the quarter | |||||||||
Issuance of stock for services | 211,343 | 211,343 | |||||||
Balance at Jul. 31, 2023 | $ 12,500 | $ 1,979 | $ 938 | $ 23,951 | $ 24,007 | 55,052,142 | (66,362,200) | 972,004 | (10,274,679) |
Balance, shares at Jul. 31, 2023 | 125 | 1,979,157 | 937,701 | 23,951,111 | 24,006,882 | ||||
Balance at Apr. 30, 2023 | $ 12,500 | $ 1,979 | $ 938 | $ 23,045 | $ 23,705 | 54,872,206 | (66,150,857) | 969,295 | (10,247,189) |
Balance, shares at Apr. 30, 2023 | 125 | 1,979,157 | 937,701 | 23,045,205 | 23,704,788 | ||||
Balance at Jan. 31, 2024 | $ 12,500 | $ 1,919 | $ 401 | $ 26,141 | $ 26,322 | 55,533,691 | (66,880,291) | 977,490 | (10,301,828) |
Balance, shares at Jan. 31, 2024 | 125 | 1,979,157 | 937,701 | 26,141,106 | 25,587,887 | ||||
Balance at Jul. 31, 2023 | $ 12,500 | $ 1,979 | $ 938 | $ 23,951 | $ 24,007 | 55,052,142 | (66,362,200) | 972,004 | (10,274,679) |
Balance, shares at Jul. 31, 2023 | 125 | 1,979,157 | 937,701 | 23,951,111 | 24,006,882 | ||||
Issuance of Preferred and Common Stock for Cash | $ 988 | 64,012 | 65,000 | ||||||
Issuance of Preferred and Common Stock for Cash, shares | 988,000 | ||||||||
Issuance of common shares for cash | $ 25 | 3,850 | 3,875 | ||||||
Issuance of stock for services, shares | 25,000 | ||||||||
Preferred dividend | $ 347 | $ (347) | 24,653 | 24,653 | |||||
Net loss for the quarter | (364,392) | 1,972 | (362,420) | ||||||
Stocks issued as a note holder incentive | $ 54 | 4,946 | 5,000 | ||||||
Stocks issued as a note holder incentive, shares | 54,000 | ||||||||
Preferred dividend, shares | 346,995 | (346,995) | |||||||
Balance at Oct. 31, 2023 | $ 12,500 | $ 1,979 | $ 938 | $ 24,323 | $ 24,702 | 55,149,603 | (66,726,592) | 973,976 | (10,538,571) |
Balance, shares at Oct. 31, 2023 | 125 | 1,979,157 | 937,701 | 24,323,106 | 24,701,887 | ||||
Shares issued for services | $ (151) | (23,340) | (23,491) | ||||||
Net loss for the quarter | (155,699) | 3,514 | (150,186) | ||||||
Conversion of notes payables | $ 900 | $ 886 | 303,653 | 305,439 | |||||
Conversion of notes payables, shares | 900,000 | 886,000 | |||||||
Conversion of preferred shares | (60) | (537) | $ 767 | $ (170) | |||||
Conversion of preferred shares, shares | 767,000 | ||||||||
Issuance of stock for services | $ 151 | 23,340 | 23,491 | ||||||
Issuance of shares for services, shares | 151,000 | ||||||||
Issuance for cash received | 904 | 57,095 | 57,999 | ||||||
Balance at Jan. 31, 2024 | $ 12,500 | $ 1,919 | $ 401 | $ 26,141 | $ 26,322 | $ 55,533,691 | $ (66,880,291) | $ 977,490 | $ (10,301,828) |
Balance, shares at Jan. 31, 2024 | 125 | 1,979,157 | 937,701 | 26,141,106 | 25,587,887 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Jan. 31, 2024 | Jan. 31, 2023 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net Income ( loss ) | $ (721,240) | $ 4,546,048 |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | ||
Loss (Gain) from change in fair value of derivative liabilities | 332,812 | (5,044,879) |
Amortization of debt discount | ||
Non-cash financing cost | ||
Non-cash consulting fees | 2,480 | |
Write off promissory notes | (625,064) | |
Changes in operating assets and liabilities | ||
Accounts receivable | (2,890) | (2,168) |
Inventory | (3,831) | 3,166 |
Accounts payable and accrued expenses | (110,969) | 78,215 |
Deferred revenue | (5,348) | |
Net cash used in operating activities | (506,118) | (1,047,550) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Bank overdraft | (54,410) | 13,895 |
Proceeds from sale of stock | 293,000 | 135,000 |
Proceeds from notes payable | 254,000 | |
Proceeds from related party notes | (37,650) | |
Payments on related party notes | ||
Net adjustments /conversion of promissory notes | 31,307 | 936,600 |
Net cash provided by financing activities | 523,897 | 1,047,845 |
Net (decrease) increase in cash | 17,779 | 295 |
Cash and cash equivalents, beginning of period | 4,028 | 317 |
Cash and cash equivalents, end of period | 21,807 | 612 |
Cash paid for: | ||
Interest | ||
Income taxes |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Jan. 31, 2024 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 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. We are a multi-disciplined parent corporation operating across three business sectors – Financial Services, E-Commerce & Mobile Technology, and Health and Wellness. Sparta’s historic roots were in the Powersports industry until the financial crisis that began 2008. The Company provided consumer retail installment loans and leases through authorized motorcycle dealerships in 33 states, with financing lines of credit provided by institutional lenders. In 2007, the Company introduced a Municipal Financing program which has financed over 100 jurisdictions to date. Vehicle History Reports are a staple of Sparta’s E-Commerce Technology subsidiary iMobile Solutions, Inc. Whether a vehicle is intended for personal, business or recreational use, Sparta’s Vehicle History Reports are highly regarded for accuracy and completeness and have been sold across all 50 states and in 62 countries worldwide. With iMobile App, the Company additionally provides mobile technology services, including web and mobile application creation, development and management, text messaging services, CRM (Customer Relationship Management) tools, and custom kitchen ordering systems for a wide range of businesses to increase revenue, build brand recognition, and improve customer engagement. Sparta’s subsidiary, New World Health Brands, Inc., offers high quality dietary supplements. Sparta’s subsidiary, Sparta Crypto, Inc., 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 various goods and services; and has completed and tested a cryptocurrency payment gateway called SpartaPayIQ. Agoge Global USA, Inc. (“Agoge”) was formed as a subsidiary of Sparta Crypto, Inc. in December 2022 and entered into a Joint Venture Agreement with WeDev Group of Brazil to facilitate cross-border transactions between importers and exporters of goods from the U.S. and Brazil and is expected to launch in last fiscal quarter of 2024 Basis of Presentation The accompanying unaudited condensed consolidated financial statements as of January 31, 2024 and for the nine months ended January 31, 2024 and 2023 have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission, including 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 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, 2023 as disclosed in the Company’s Form 10-K for that year as filed with the Securities and Exchange Commission on August 15, 2023. The results of operations for the nine months ended January 31, 2024 are not necessarily indicative of the results to be expected for any other interim period or the full year ending April 30, 2024. 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 statements have been prepared in accordance with accounting principles generally accepted in the United States of America, which require management to make estimates and assumptions that affect the 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 During the first quarter of 2018, the Company adopted A.S.U. 2014-09, Revenue from Contracts with Customers (Topic 606) The Company acts as a principal in its revenue transactions as it is the primary obligor. SCHEDULE OF DISAGGREGATION REVENUE 3-months ended 9-months ended Revenue Jan 2024 Jan 2023 Jan 2024 Jan 2023 Information technology $ 30,071 $ 60,120 $ 128,142 $ 173,559 New World Health $ 6,665 $ 3,550 $ 23,291 $ 15,483 Total 36,736 63,670 151,433 189,042 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. Cash Equivalents All liquid investments with three months or less maturity are cash equivalents for the accompanying financial statements. Fair Value Measurements The Company has adopted ASC 820, “Fair Value Measurements .” ● Level 1 — ● Level 2 — ● Level 3 — 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 The Company recognizes the impact of a position in the financial statements only if that position is more likely than not to be sustained upon examination by taxing authorities based on the technical merits of the position. Our practice recognizes interest 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 We use the fair value method for equity instruments granted to non-employees and the Black-Scholes model to measure options’ fair value. The stock-based fair value compensation is determined as of the date of the grant or 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. Significant 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. The estimated useful lives of significant depreciable assets are as follows: SCHEDULE OF ESTIMATED USEFUL OF PROPERTY AND EQUIPMENT Leasehold improvements 3 years Furniture and fixtures 7 years Website costs 3 years Computer Equipment 5 years Estimated Useful of Property and 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 Derivative Liabilities The Company assessed the classification of its derivative financial instruments as of January 31, 2024, and April 30, 2024, which consist 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. 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 31, 2024 and April 30, 2023, which consist 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. 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 to be conventional, as described. 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- No recent pronouncements have been made or adopted in the quarter ended January 31, 2024. All of the pronouncements that affect our business have been adopted. |
GOING CONCERN MATTERS
GOING CONCERN MATTERS | 9 Months Ended |
Jan. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
GOING CONCERN MATTERS | 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. As shown in the accompanying unaudited condensed consolidated financial statements, the Company has incurred recurring losses and generated negative cash flows from operating activities since inception. As of January 31, 2024, the Company had an accumulated deficit of $ 66,880,291 10,301,828 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 improve the Company’s liquidity, the Company’s management is actively pursuing 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. 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. |
NOTES PAYABLE AND DERIVATIVES
NOTES PAYABLE AND DERIVATIVES | 9 Months Ended |
Jan. 31, 2024 | |
Debt Disclosure [Abstract] | |
NOTES PAYABLE AND DERIVATIVES | NOTE C – NOTES PAYABLE AND DERIVATIVES The Company has numerous outstanding notes payable to various parties. The notes bear interest at rates of 5 20 SCHEDULE OF NOTES PAYABLE Notes Payable January 31, 2024 April 30, 2023 Notes convertible at holder’s option $ 2,313,697 $ 3,112,734 Notes convertible at Company’s option 335,700 335,700 Non-convertible notes payable 2,438,308 1,861,650 Subtotal 5,087,705 5,310,084 Total $ 5,087,705 $ 5,310,084 The balance of accrued interest of the above notes as of January 31, 2024, and April 30, 2023, were 1,651,532 1,508,934 142,598 Certain notes payable contain 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 30 48 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 in fair value of the derivative liabilities on January 31, 2024, was calculated with the following average assumptions using a Black-Scholes option pricing model are as follows: SCHEDULE OF DERIVATIVE LIABILITIES ASSUMPTIONS USING BLACK-SCHOLES OPTION Significant Assumptions: Risk-free interest rate Ranging from 0.16 0.2 % Expected stock price volatility Ranging from 155 270 % Expected dividend payout 0 Expected life in years Ranging from 0.25 3.0 Expected life in years Ranging from 0.25 3.0 Changes in derivative liability during the three months ended January 31, 2024, and 2023 were: SCHEDULE OF CHANGES IN DERIVATIVE LIABILITIES January 31, January 31, 2024 2023 Balance, beginning of year $ 1,375,767 $ 9,549,640 Derivative liability extinguished (100,797 ) (336,418 ) Derivative financial liability arising on the issuance of convertible notes and warrants - Fair value adjustments (76,576 ) (4,168,344 ) Balance, end of period $ 1,198,394 $ 4,504,762 |
LOANS PAYABLE TO RELATED PARTIE
LOANS PAYABLE TO RELATED PARTIES | 9 Months Ended |
Jan. 31, 2024 | |
Related Party Transactions [Abstract] | |
LOANS PAYABLE TO RELATED PARTIES | NOTE D – LOANS PAYABLE TO RELATED PARTIES As of January 31, 2024, and April 30, 2023, aggregated loans and notes payable, without demand and with no interest, to officers, directors, and other related parties were $ 436,253 435,753 |
EQUITY TRANSACTIONS
EQUITY TRANSACTIONS | 9 Months Ended |
Jan. 31, 2024 | |
Equity [Abstract] | |
EQUITY TRANSACTIONS | NOTE E EQUITY TRANSACTIONS Preferred Stock The Company is authorized to issue 10,000,000 0.001 35,850 100 1,000 10,000 4,200,000 1.00 2,000,000 1 During the nine months ended January 31, 2024, the Company: ● Issued 1,349,005 107,000 ● Issued 153,864 48,490 ● Issued 75,000 6,975 ● Sold to eleven accredited investors 2,747,339 191,000 ● Issued 60,000 10,000 ● Issued 536,824 134,206 During the nine months ended January 31, 2023, the Company: ● Issued 1,388,376 231,396 ● Issued 564,212 141,053 Common Stock The Company is authorized to issue 750,000,000 0.001 26,141,106 23,045,205 During the nine months ended January 31, 2024, the Company: ● Issued 1,349,005 107,000 ● Issued 153,864 48,490 ● Issued 75,000 6,975 ● Sold to eleven accredited investors 2,747,339 191,000 ● Issued 60,000 10,000 ● Issued 536,824 134,206 During the nine months ended January 31, 2023, the Company: ● Sold 3,102,346 212,500 ● Issued 330,179 ● Issued 1,388,376 ● Issued 564,212 ● Issued 950,833 83,447 ● Issued 378,909 35,000 ● Issued 1,928,899 282,981 During the nine months ended January 31, 2023, the Company: Sold to six accredited investors 2,726,036 182,500 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended |
Jan. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | NOTE F – FAIR VALUE MEASUREMENTS The Company follows the guidelines established according 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 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 31, 2024: SCHEDULE OF FAIR VALUES OF FINANCIAL LIABILITIES Fair Value at Fair Value Measurement Using January 31, 2024 Level 1 Level 2 Level 3 Derivative liabilities $ 1,042,955 - - $ 1,042,955 Fair values of financial liabilities as of April 30, 2022, are as follows: Fair Value at Fair Value Measurement Using April 30, 2023 Level 1 Level 2 Level 3 Derivative liabilities $ 1,375,767 - - $ 1,375,767 The following is a description of the valuation methodologies used for these items: Derivative liabilities 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 |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 9 Months Ended |
Jan. 31, 2024 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | NOTE G – PROPERTY AND EQUIPMENT Significant classes of property and equipment on January 31, 2024, and April 30, 2023, consist of the following: SCHEDULE OF PROPERTY AND EQUIPMENT January 31, 2024 April 30, 2023 Computer equipment, software and furniture $ 213,262 $ 213,262 Less: accumulated depreciation (213,262 ) (213,262 ) Net property and equipment $ - $ - All equipment is fully depreciated as of January 31, 2023, and 2022. No additional investment in equipment for both fiscal years. |
WARRANTS
WARRANTS | 9 Months Ended |
Jan. 31, 2024 | |
Warrants | |
WARRANTS | NOTE H – WARRANTS : No warrants were issued to employees or services. As of January 31, 2024 , a total of 9,229,370 211,614 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Jan. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE I – 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 $ 5,100 Rent expense was $ 54,000 49,700 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 31, 2024, we have not been named as parties to any further legal proceedings except those disclosed prior and updated below. From time to time, we may become involved in other legal proceedings, which sometimes arise due to the very nature of and in the ordinary course of this business. By way of background, the Company had received notices dated April 1, 2016, May 13, 2016, and July 22, 2016, from two lenders claiming defaults relating to conversion requests of $ 8,365.00 5,000.00 55,125.00 27,500.00 For the above claims, on September 22, 2016, a motion for summary judgment instead of complaint was filed in the Supreme Court in the State of New York: County of Kings against the Company by a lender for the amount of $ 102,170.82 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Jan. 31, 2024 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE J – SUBSEQUENT EVENTS The Company had evaluated subsequent events for recognition and disclosure as of March 25, 2024 when the financial statements were available to be issued. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Jan. 31, 2024 | |
Accounting Policies [Abstract] | |
Business | Business General Overview Sparta Commercial Services, Inc. (“Sparta,” “we,” “us,” or the “Company”) is a Nevada corporation with headquarters in New York City. We are a multi-disciplined parent corporation operating across three business sectors – Financial Services, E-Commerce & Mobile Technology, and Health and Wellness. Sparta’s historic roots were in the Powersports industry until the financial crisis that began 2008. The Company provided consumer retail installment loans and leases through authorized motorcycle dealerships in 33 states, with financing lines of credit provided by institutional lenders. In 2007, the Company introduced a Municipal Financing program which has financed over 100 jurisdictions to date. Vehicle History Reports are a staple of Sparta’s E-Commerce Technology subsidiary iMobile Solutions, Inc. Whether a vehicle is intended for personal, business or recreational use, Sparta’s Vehicle History Reports are highly regarded for accuracy and completeness and have been sold across all 50 states and in 62 countries worldwide. With iMobile App, the Company additionally provides mobile technology services, including web and mobile application creation, development and management, text messaging services, CRM (Customer Relationship Management) tools, and custom kitchen ordering systems for a wide range of businesses to increase revenue, build brand recognition, and improve customer engagement. Sparta’s subsidiary, New World Health Brands, Inc., offers high quality dietary supplements. Sparta’s subsidiary, Sparta Crypto, Inc., 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 various goods and services; and has completed and tested a cryptocurrency payment gateway called SpartaPayIQ. Agoge Global USA, Inc. (“Agoge”) was formed as a subsidiary of Sparta Crypto, Inc. in December 2022 and entered into a Joint Venture Agreement with WeDev Group of Brazil to facilitate cross-border transactions between importers and exporters of goods from the U.S. and Brazil and is expected to launch in last fiscal quarter of 2024 |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements as of January 31, 2024 and for the nine months ended January 31, 2024 and 2023 have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission, including 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 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, 2023 as disclosed in the Company’s Form 10-K for that year as filed with the Securities and Exchange Commission on August 15, 2023. The results of operations for the nine months ended January 31, 2024 are not necessarily indicative of the results to be expected for any other interim period or the full year ending April 30, 2024. |
Principles of Consolidation | 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 | Estimates These financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America, which require management to make estimates and assumptions that affect the 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 Recognition During the first quarter of 2018, the Company adopted A.S.U. 2014-09, Revenue from Contracts with Customers (Topic 606) The Company acts as a principal in its revenue transactions as it is the primary obligor. SCHEDULE OF DISAGGREGATION REVENUE 3-months ended 9-months ended Revenue Jan 2024 Jan 2023 Jan 2024 Jan 2023 Information technology $ 30,071 $ 60,120 $ 128,142 $ 173,559 New World Health $ 6,665 $ 3,550 $ 23,291 $ 15,483 Total 36,736 63,670 151,433 189,042 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. |
Cash Equivalents | Cash Equivalents All liquid investments with three months or less maturity are cash equivalents for the accompanying financial statements. |
Fair Value Measurements | Fair Value Measurements The Company has adopted ASC 820, “Fair Value Measurements .” ● Level 1 — ● Level 2 — ● Level 3 — 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 | Income Taxes We utilize ASC 740, “ Income Taxes The Company recognizes the impact of a position in the financial statements only if that position is more likely than not to be sustained upon examination by taxing authorities based on the technical merits of the position. Our practice recognizes interest or penalties related to income tax matters in income tax expense. |
Stock-Based Compensation | Stock-Based Compensation We account for our stock-based compensation under ASC 718 “ Compensation–Stock Compensation We use the fair value method for equity instruments granted to non-employees and the Black-Scholes model to measure options’ fair value. The stock-based fair value compensation is determined as of the date of the grant or at which the performance of the services is completed (measurement date) and is recognized over the vesting periods. |
Inventories | 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 Property and equipment are recorded at cost. Minor additions and renewals are expensed in the year incurred. Significant 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. The estimated useful lives of significant depreciable assets are as follows: SCHEDULE OF ESTIMATED USEFUL OF PROPERTY AND EQUIPMENT Leasehold improvements 3 years Furniture and fixtures 7 years Website costs 3 years Computer Equipment 5 years Estimated Useful of Property and Equipment 5 years |
Concentrations of Credit Risk | 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 | Net Loss Per Share The Company uses ASC 260-10, “ Earnings Per Share |
Derivative Liabilities | Derivative Liabilities The Company assessed the classification of its derivative financial instruments as of January 31, 2024, and April 30, 2024, which consist 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. 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 | 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 31, 2024 and April 30, 2023, which consist 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. 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 to be conventional, as described. |
Reclassifications | 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- | Recent Accounting Pronouncements- No recent pronouncements have been made or adopted in the quarter ended January 31, 2024. All of the pronouncements that affect our business have been adopted. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 9 Months Ended |
Jan. 31, 2024 | |
Accounting Policies [Abstract] | |
SCHEDULE OF DISAGGREGATION REVENUE | The Company acts as a principal in its revenue transactions as it is the primary obligor. SCHEDULE OF DISAGGREGATION REVENUE 3-months ended 9-months ended Revenue Jan 2024 Jan 2023 Jan 2024 Jan 2023 Information technology $ 30,071 $ 60,120 $ 128,142 $ 173,559 New World Health $ 6,665 $ 3,550 $ 23,291 $ 15,483 Total 36,736 63,670 151,433 189,042 |
SCHEDULE OF ESTIMATED USEFUL OF PROPERTY AND EQUIPMENT | SCHEDULE OF ESTIMATED USEFUL OF PROPERTY AND EQUIPMENT Leasehold improvements 3 years Furniture and fixtures 7 years Website costs 3 years Computer Equipment 5 years Estimated Useful of Property and Equipment 5 years |
NOTES PAYABLE AND DERIVATIVES (
NOTES PAYABLE AND DERIVATIVES (Tables) | 9 Months Ended |
Jan. 31, 2024 | |
Debt Disclosure [Abstract] | |
SCHEDULE OF NOTES PAYABLE | The Company has numerous outstanding notes payable to various parties. The notes bear interest at rates of 5 20 SCHEDULE OF NOTES PAYABLE Notes Payable January 31, 2024 April 30, 2023 Notes convertible at holder’s option $ 2,313,697 $ 3,112,734 Notes convertible at Company’s option 335,700 335,700 Non-convertible notes payable 2,438,308 1,861,650 Subtotal 5,087,705 5,310,084 Total $ 5,087,705 $ 5,310,084 |
SCHEDULE OF DERIVATIVE LIABILITIES ASSUMPTIONS USING BLACK-SCHOLES OPTION | The change in fair value of the derivative liabilities on January 31, 2024, was calculated with the following average assumptions using a Black-Scholes option pricing model are as follows: SCHEDULE OF DERIVATIVE LIABILITIES ASSUMPTIONS USING BLACK-SCHOLES OPTION Significant Assumptions: Risk-free interest rate Ranging from 0.16 0.2 % Expected stock price volatility Ranging from 155 270 % Expected dividend payout 0 Expected life in years Ranging from 0.25 3.0 Expected life in years Ranging from 0.25 3.0 |
SCHEDULE OF CHANGES IN DERIVATIVE LIABILITIES | Changes in derivative liability during the three months ended January 31, 2024, and 2023 were: SCHEDULE OF CHANGES IN DERIVATIVE LIABILITIES January 31, January 31, 2024 2023 Balance, beginning of year $ 1,375,767 $ 9,549,640 Derivative liability extinguished (100,797 ) (336,418 ) Derivative financial liability arising on the issuance of convertible notes and warrants - Fair value adjustments (76,576 ) (4,168,344 ) Balance, end of period $ 1,198,394 $ 4,504,762 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended |
Jan. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
SCHEDULE OF FAIR VALUES OF FINANCIAL LIABILITIES | The table below summarizes the fair values of financial liabilities as of January 31, 2024: SCHEDULE OF FAIR VALUES OF FINANCIAL LIABILITIES Fair Value at Fair Value Measurement Using January 31, 2024 Level 1 Level 2 Level 3 Derivative liabilities $ 1,042,955 - - $ 1,042,955 Fair values of financial liabilities as of April 30, 2022, are as follows: Fair Value at Fair Value Measurement Using April 30, 2023 Level 1 Level 2 Level 3 Derivative liabilities $ 1,375,767 - - $ 1,375,767 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 9 Months Ended |
Jan. 31, 2024 | |
Property, Plant and Equipment [Abstract] | |
SCHEDULE OF PROPERTY AND EQUIPMENT | Significant classes of property and equipment on January 31, 2024, and April 30, 2023, consist of the following: SCHEDULE OF PROPERTY AND EQUIPMENT January 31, 2024 April 30, 2023 Computer equipment, software and furniture $ 213,262 $ 213,262 Less: accumulated depreciation (213,262 ) (213,262 ) Net property and equipment $ - $ - |
SCHEDULE OF DISAGGREGATION REVE
SCHEDULE OF DISAGGREGATION REVENUE (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2024 | Jan. 31, 2023 | |
Product Information [Line Items] | ||||
Total | $ 36,736 | $ 63,670 | $ 151,433 | $ 189,042 |
Information technology [Member] | ||||
Product Information [Line Items] | ||||
Total | 30,071 | 60,120 | 128,142 | 173,559 |
New World Health [Member] | ||||
Product Information [Line Items] | ||||
Total | $ 6,665 | $ 3,550 | $ 23,291 | $ 15,483 |
SCHEDULE OF ESTIMATED USEFUL OF
SCHEDULE OF ESTIMATED USEFUL OF PROPERTY AND EQUIPMENT (Details) | Jan. 31, 2024 |
Leasehold Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful of Property and Equipment | 3 years |
Furniture and Fixtures [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful of Property and Equipment | 7 years |
Website Costs [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful of Property and Equipment | 3 years |
Computer Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful of Property and Equipment | 5 years |
GOING CONCERN MATTERS (Details
GOING CONCERN MATTERS (Details Narrative) - USD ($) | Jan. 31, 2024 | Apr. 30, 2023 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accumulated deficit | $ 66,880,291 | $ 66,150,857 |
Working capital deficit | $ 10,301,828 |
SCHEDULE OF NOTES PAYABLE (Deta
SCHEDULE OF NOTES PAYABLE (Details) - USD ($) | Jan. 31, 2024 | Apr. 30, 2023 |
Debt Instrument [Line Items] | ||
Subtotal | $ 5,087,705 | $ 5,310,084 |
Total | 5,087,705 | 5,310,084 |
Notes Convertible at Holders Option [Member] | ||
Debt Instrument [Line Items] | ||
Subtotal | 2,313,697 | 3,112,734 |
Notes Convertible at Companys Option [Member] | ||
Debt Instrument [Line Items] | ||
Subtotal | 335,700 | 335,700 |
Non Convertible Notes Payable [Member] | ||
Debt Instrument [Line Items] | ||
Subtotal | $ 2,438,308 | $ 1,861,650 |
Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate | 5% | |
Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate | 20% |
SCHEDULE OF DERIVATIVE LIABILIT
SCHEDULE OF DERIVATIVE LIABILITIES ASSUMPTIONS USING BLACK-SCHOLES OPTION (Details) | 9 Months Ended |
Jan. 31, 2024 | |
Measurement Input, Risk Free Interest Rate [Member] | Minimum [Member] | |
Debt Instrument [Line Items] | |
Derivative liability, measurement input, expected dividend payout | 0.16 |
Measurement Input, Risk Free Interest Rate [Member] | Maximum [Member] | |
Debt Instrument [Line Items] | |
Derivative liability, measurement input, expected dividend payout | 0.2 |
Measurement Input, Price Volatility [Member] | Minimum [Member] | |
Debt Instrument [Line Items] | |
Derivative liability, measurement input, expected dividend payout | 155 |
Measurement Input, Price Volatility [Member] | Maximum [Member] | |
Debt Instrument [Line Items] | |
Derivative liability, measurement input, expected dividend payout | 270 |
Measurement Input Dividend Payout [Member] | |
Debt Instrument [Line Items] | |
Derivative liability, measurement input, expected dividend payout | 0 |
Measurement Input, Expected Term [Member] | Minimum [Member] | |
Debt Instrument [Line Items] | |
Derivative liability, measurement input, expected life | 3 months |
Measurement Input, Expected Term [Member] | Maximum [Member] | |
Debt Instrument [Line Items] | |
Derivative liability, measurement input, expected life | 3 years |
SCHEDULE OF CHANGES IN DERIVATI
SCHEDULE OF CHANGES IN DERIVATIVE LIABILITIES (Details) - USD ($) | 9 Months Ended | |
Jan. 31, 2024 | Jan. 31, 2023 | |
Debt Disclosure [Abstract] | ||
Balance, beginning of year | $ 1,375,767 | $ 9,549,640 |
Derivative liability extinguished | (100,797) | (336,418) |
Derivative financial liability arising on the issuance of convertible notes and warrants | ||
Fair value adjustments | (76,576) | (4,168,344) |
Balance, end of period | $ 1,198,394 | $ 4,504,762 |
NOTES PAYABLE AND DERIVATIVES_2
NOTES PAYABLE AND DERIVATIVES (Details Narrative) - USD ($) | 9 Months Ended | |
Jan. 31, 2024 | Apr. 30, 2023 | |
Debt Instrument [Line Items] | ||
Balance of accrued interest | $ 1,651,532 | $ 1,508,934 |
Increase of interest expenses | $ 142,598 | |
Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Common stock discount rate, percentage | 30% | |
Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Common stock discount rate, percentage | 48% |
LOANS PAYABLE TO RELATED PART_2
LOANS PAYABLE TO RELATED PARTIES (Details Narrative) - USD ($) | Jan. 31, 2024 | Apr. 30, 2023 |
Related Party Transactions [Abstract] | ||
Loans and notes payable | $ 436,253 | $ 435,753 |
EQUITY TRANSACTIONS (Details Na
EQUITY TRANSACTIONS (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | 15 Months Ended | ||||||
Jan. 31, 2024 | Oct. 31, 2023 | Jul. 31, 2023 | Jan. 31, 2023 | Jul. 31, 2022 | Jan. 31, 2024 | Jan. 31, 2023 | Jul. 31, 2023 | Apr. 30, 2023 | |
Class of Stock [Line Items] | |||||||||
Preferred stock, shares designated | 10,000,000 | 10,000,000 | 10,000,000 | ||||||
Preferred stock, par value | $ 0.001 | $ 0.001 | $ 0.001 | ||||||
Number of shares issued during period, value | $ 3,875 | $ 71,878 | $ 94,999 | ||||||
Number of shares issued services, value | $ 23,491 | 211,343 | $ 37,595 | 245,381 | |||||
Common stock, shares authorized | 750,000,000 | 750,000,000 | 750,000,000 | ||||||
Common stock, par value | $ 0.001 | $ 0.001 | $ 0.001 | ||||||
Common stock, shares issued | 26,141,106 | 26,141,106 | 23,045,205 | ||||||
Common stock, shares outstanding | 26,141,106 | 26,141,106 | 23,045,205 | ||||||
Stocks issued as note holder incentives, value | 9,940 | ||||||||
Common Stock [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Number of shares issued during period, shares | 25,000 | 830,906 | 333,939 | ||||||
Number of shares issued during period, value | $ 25 | $ 831 | |||||||
Number of shares issued services, shares | 151,000 | 1,594,960 | |||||||
Number of shares issued services, value | $ 151 | $ 334 | 1,595 | ||||||
Sale of stock, shares | 3,102,346 | ||||||||
Sale of stock, value | $ 212,500 | ||||||||
Stocks issued as note holder incentives, shares | 60,000 | ||||||||
Stocks issued as note holder incentives, value | $ 60 | ||||||||
Six Accredited Investors [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Number of shares issued during period, shares | 1,349,005 | ||||||||
Number of shares issued during period, value | $ 107,000 | ||||||||
Sale of stock, shares | 2,726,036 | ||||||||
Sale of stock, value | $ 182,500 | ||||||||
Six Accredited Investors [Member] | Common Stock [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Number of shares issued during period, shares | 1,349,005 | ||||||||
Number of shares issued during period, value | $ 107,000 | ||||||||
Consulting [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Number of shares issued services, shares | 153,864 | ||||||||
Number of shares issued services, value | $ 48,490 | ||||||||
Consulting [Member] | Common Stock [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Number of shares issued services, shares | 153,864 | 1,928,899 | |||||||
Number of shares issued services, value | $ 48,490 | $ 282,981 | |||||||
Incentive Noteholders [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Number of shares issued during period, shares | 75,000 | ||||||||
Number of shares issued during period, value | $ 6,975 | ||||||||
Incentive Noteholders [Member] | Common Stock [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Number of shares issued during period, shares | 75,000 | ||||||||
Number of shares issued during period, value | $ 6,975 | ||||||||
Eleven Accredited Investors [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Sale of stock, shares | 2,747,339 | ||||||||
Sale of stock, value | $ 191,000 | ||||||||
Eleven Accredited Investors [Member] | Common Stock [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Sale of stock, shares | 2,747,339 | ||||||||
Sale of stock, value | $ 191,000 | ||||||||
Accredited Investors [Member] | Common Stock [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Number of shares issued during period, shares | 330,179 | ||||||||
Stocks issued as note holder incentives, shares | 950,833 | ||||||||
Stocks issued as note holder incentives, value | $ 83,447 | ||||||||
Accredited Investors One [Member] | Common Stock [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Stocks issued as note holder incentives, shares | 378,909 | ||||||||
Stocks issued as note holder incentives, value | $ 35,000 | ||||||||
Series A Convertible Preferred Stock [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Preferred stock, shares designated | 35,850 | 35,850 | 35,850 | ||||||
Preferred stock, par value | $ 100 | $ 100 | $ 100 | ||||||
Series B Preferred Stock [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Preferred stock, shares designated | 1,000 | 1,000 | |||||||
Preferred stock, liquidation and redemption value per share | $ 10,000 | $ 10,000 | |||||||
Series C Preferred Stock [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Preferred stock, shares designated | 4,200,000 | 4,200,000 | 4,200,000 | ||||||
Preferred stock, par value | $ 0.001 | $ 0.001 | $ 0.001 | ||||||
Preferred stock, liquidation and redemption value per share | $ 1 | $ 1 | $ 1 | ||||||
Number of shares issued conversion of preferred stock, shares | 60,000 | 1,388,376 | |||||||
Number of shares issued conversion of preferred stock, value | $ 10,000 | $ 231,396 | |||||||
Series C Preferred Stock [Member] | Common Stock [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Number of shares issued conversion of preferred stock, shares | 60,000 | ||||||||
Number of shares issued conversion of preferred stock, value | $ 10,000 | ||||||||
Series D Preferred Stock [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Preferred stock, shares designated | 2,000,000 | 2,000,000 | 2,000,000 | ||||||
Preferred stock, par value | $ 0.001 | $ 0.001 | $ 0.001 | ||||||
Preferred stock, liquidation and redemption value per share | $ 1 | $ 1 | $ 1 | ||||||
Number of shares issued conversion of preferred stock, shares | 536,824 | 564,212 | |||||||
Number of shares issued conversion of preferred stock, value | $ 134,206 | $ 141,053 | |||||||
Series D Preferred Stock [Member] | Common Stock [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Number of shares issued conversion of preferred stock, shares | 536,824 | ||||||||
Number of shares issued conversion of preferred stock, value | $ 134,206 | ||||||||
Series C Convertible Preferred Stock [Member] | Common Stock [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Number of shares issued conversion of preferred stock, shares | 1,388,376 | ||||||||
Series D Convertible Preferred Stock [Member] | Common Stock [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Number of shares issued conversion of preferred stock, shares | 564,212 |
SCHEDULE OF FAIR VALUES OF FINA
SCHEDULE OF FAIR VALUES OF FINANCIAL LIABILITIES (Details) - USD ($) | Jan. 31, 2024 | Apr. 30, 2023 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | $ 1,042,955 | $ 1,375,767 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | ||
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | ||
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | $ 1,042,955 | $ 1,375,767 |
SCHEDULE OF PROPERTY AND EQUIPM
SCHEDULE OF PROPERTY AND EQUIPMENT (Details) - USD ($) | Jan. 31, 2024 | Apr. 30, 2023 |
Property, Plant and Equipment [Abstract] | ||
Computer equipment, software and furniture | $ 213,262 | $ 213,262 |
Less: accumulated depreciation | (213,262) | (213,262) |
Net property and equipment |
WARRANTS (Details Narrative)
WARRANTS (Details Narrative) | Jan. 31, 2024 USD ($) shares |
Warrants | |
Warrants vested | shares | 9,229,370 |
Fair value adjustment of warrants | $ | $ 211,614 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($) | 4 Months Ended | 9 Months Ended | ||
Sep. 22, 2016 | Jul. 22, 2016 | Jan. 31, 2024 | Jan. 31, 2023 | |
Property, Plant and Equipment [Line Items] | ||||
Rent expenses | $ 54,000 | $ 49,700 | ||
Lender [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Promissory note amount | $ 8,365 | |||
Lender claiming total amount | $ 102,170.82 | |||
Lender Two [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Promissory note amount | 27,500 | |||
Lender claiming total amount | $ 5,000 | |||
Lender One [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Promissory note amount | 55,125 | |||
Executive Office Space [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Rent expenses | $ 5,100 |