Sparta Capital Ltd.
TSX VENTURE : SAY

Sparta Capital Ltd.

August 28, 2007 18:31 ET

Sparta Capital Ltd. Releases Second Quarter Financial Statements

EDMONTON, ALBERTA--(Marketwire - Aug. 28, 2007) - Sparta Capital Ltd. ("Sparta") (TSX VENTURE:SAY) released today its unaudited financial statements for its three month and nine month periods ended June 30, 2007.

The net loss for the three month and nine month periods ended June 30, 2007 was $80,419 and $216,062 respectively.



SUMMARY OF INCOME STATEMENT INFORMATION

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April 1 to October 1 to
Income Statement June 30, 2007 June 30, 2007
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Sales $ - $ 28,054
Cost of sales $ - $ 19,804
Operating expenses $ 80,037 $ 344,431
Other income (loss) ($ 382) $ 120,119
Net income (loss) for period ($ 80,419) ($ 216,062)
Per share - basic and diluted ($ 0.002) ($ 0.006)
Weighted average shares outstanding - basic 35,115,631 35,115,631
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SUMMARY OF CASH FLOW INFORMATION

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April 1, to October 1 to
Cash Flow June 30, 2007 June 30, 2007
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Cash from operating activities ($116,640) ($ 501,780)
Cash from financing activities $ - ($ 2,038)
Cash from investing activities $ 16,630 $ 154,692
Decrease in cash and cash equivalents ($100,010) ($ 349,126)
Cash and cash equivalents - beginning of
period $862,981 $1,112,097
Cash and cash equivalents - end of period $762,971 $ 762,971
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SUMMARY OF BALANCE SHEET INFORMATION

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June 30, September 30,
Balance Sheet 2007 2006
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Cash and cash equivalents $ 762,971 $1,112,097
Total Assets $1,767,671 $2,237,514
Total Liabilities $ 8,634 $ 280,377
Share capital $5,001,646 $5,003,684
Total Shareholders' Equity $1,759,037 $1,957,137
Total Liabilities & Shareholders' Equity $1,767,671 $2,237,514
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RESULTS OF OPERTIONS

For the nine month period ended June 30, 2007 the Corporation had a net loss of $216,062 as compared to June 30, 2006 net loss of $113,693. For the three month period ended June 30, 2007 the Corporation had a net loss of $80,419 as compared to June 30, 2006 net profit of $20,187.

Advertising & Promotion increased from $11,066 to $77,643 for the nine month period due to the addition of investor relation fees and increase in promotional expense of the Hy-Drive system. Advertising and Promotion decreased from $9,859 to $9,651 for the three month period.

Consulting fees increased from $69,000 to $155,606 for the nine month period and from $24,000 to $48,767 for the three month period mainly due to the payment of consultant fees to manage Sparta's operations in Australia and increased monthly fees paid to Officers of the Corporation.

Licenses and fees increased from $10,508 to $15,764 for the nine month period mainly as a result of increased TSX Venture and other regulatory fees. Licenses and fees decreased from $2,406 to $2,377 for the three month period.

Office rent increased from $5,715 to $11,596 for the nine month period and from $1,905 to $6,150 for the three month period as a result of leasing larger office space during the period.

Professional fees decreased from $44,616 to $29,892 for the nine month period and from $25,565 to $1,344 for the three month period 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.

Travel increased from $8,237 to $17,027 for the nine month period due to an increase in international travel and promotional expenses. Travel decreased from $6,084 to $4,162 for the three month period.

The Company's June 30, 2007 financial statements 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