Sparta Capital Ltd.
TSX VENTURE : SAY

Sparta Capital Ltd.

January 17, 2008 18:22 ET

Sparta Capital Ltd. Releases Annual Audited Financial Statements

EDMONTON, ALBERTA--(Marketwire - Jan. 17, 2008) - Sparta Capital Ltd. ("Sparta") (TSX VENTURE:SAY) released today its audited financial statements for the year ended September 30, 2007.

The net loss and comprehensive loss for the year ended September 30, 2007 was $349,110 (2006 - $337,141).



SUMMARY OF INCOME STATEMENT INFORMATION
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Income Statement 2007 2006
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Sales $ 28,054 $ -
Cost of sales $ 19,804 $ -
Operating expenses $ 441,976 $ 422,612
Other income (loss) $ 84,616 $ 85,471
Net income (loss) for period $ (349,110) $ (337,141)
Per share - basic and diluted $ (0.010) $ (0.011)
Weighted average shares outstanding - basic 35,115,631 31,340,359
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SUMMARY OF CASH FLOW INFORMATION
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Cash Flow 2007 2006
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Cash from operating activities $ (569,744) $ (402,812)
Cash from financing activities $ (2,038) $ 1,299,346
Cash from investing activities $ 154,692 $ 98,468
Increase (Decrease) in cash and cash
equivalents $ (417,090) $ 995,002
Cash and cash equivalents - beginning of
period $ 1,112,097 $ 117,095
Cash and cash equivalents - end of period $ 695,007 $ 1,112,097
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SUMMARY OF BALANCE SHEET INFORMATION
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Balance Sheet 2007 2006
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Cash and cash equivalents $ 695,007 $ 1,112,097
Total Assets $ 1,670,012 $ 2,237,514
Total Liabilities $ 16,237 $ 280,377
Share capital $ 5,001,646 $ 5,003,684
Total Shareholders' Equity $ 1,653,775 $ 1,957,137
Total Liabilities & Shareholders' Equity $ 1,670,012 $ 2,237,514
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RESULTS OF OPERTIONS

For the year ended September 30, 2007 the Corporation had a net loss and comprehensive loss of $349,110 as compared to September 30, 2006 net loss of $337,141.

Advertising & Promotion increased from $32,676 to $81,369 due to the addition of investor relation fees and increase in promotional expense of the Hy-Drive system.

Consulting fees increased from $146,533 to $210,472 due to additional consultant fees to manage Sparta's operations in Australia and increased monthly fees to Officers of the Corporation.

Licenses and fees increased from $14,843 to $18,347 mainly as a result of increased TSX Venture and other regulatory fees.

Office rent increased from $7,680 to $17,776 as a result of leasing larger office space during the year.

Professional fees decreased from $54,632 to $51,706 due to decreased third party accounting costs and legal costs related to filings and contract review as well as reduced costs to develop international markets.

Stock based compensation for officers and directors of the Corporation decreased from $134,750 to $nil since no options were granted during the year.

Travel increased from $13,618 to $17,805 due to an increase in international travel and promotional expenses to promote the Hy-Drive system.

Interest income increased from $6,504 to $35,853 as a result of increased cash on hand from the private placement in 2006 for an entire year.

The gain on disposal of long-term investments of $15,000 relates to sale of Drumlin Energy Corp. shares during the year.

The unrealized loss on short-term investments of $29,230 during the year resulted from the adoption of CICA Handbook Section 3855 relating to the adjustment of short-term investments to fair market value.

The Company's September 30, 2007 audited annual financial statements and management discussion may be viewed on SEDAR at www.sedar.com.

The TSX Venture Exchange Inc. does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Sparta Capital Ltd.
    Theodore Rousseau
    (780) 489-8334