Sparta Capital Ltd.
TSX VENTURE : SAY

Sparta Capital Ltd.

May 14, 2008 13:25 ET

Sparta Capital Ltd. Releases Second Quarter Financial Statements

EDMONTON, ALBERTA--(Marketwire - May 14, 2008) -

NOT FOR DISSEMINATION IN THE UNITED STATES OR TO US PERSONS.

Sparta Capital Ltd. ("Sparta") (TSX VENTURE:SAY) released today its unaudited financial statements for its three month and six month periods ended March 31, 2008.

The net loss for the three month and six month periods ended March 31, 2008 was $103,254 and $159,418 respectively.



SUMMARY OF INCOME STATEMENT INFORMATION

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Income Statement January 1 to October 1 to
March 31, 2008 March 31, 2008
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Sales $ - $ -
Cost of sales $ - $ -
Operating expenses $ 108,217 $ 175,137
Other income $ 4,963 $ 15,719
Net income (loss) for period $ (103,254) $ (159,418)
Per share - basic and diluted $ (0.003) $ (0.005)
Weighted average shares outstanding - basic 35,247,631 35,215,364
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SUMMARY OF CASH FLOW INFORMATION

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Cash Flow January 1 to October 1 to
March 31, 2008 March 31, 2008
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Cash from operating activities $ (95,557) $ (157,038)
Cash from financing activities $ - $ 14,440
Cash from investing activities $ 4,770 $ 4,010
Decrease in cash and cash equivalents $ (90,787) $ (138,858)
Cash and cash equivalents - beginning of
period $ 647,206 $ 695,007
Cash and cash equivalents - end of period $ 556,419 $ 556,419
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SUMMARY OF BALANCE SHEET INFORMATION

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Balance Sheet March 31, September 30,
2008 2007
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Cash and cash equivalents $ 556,419 $ 695,007
Total Assets $1,528,512 $1,670,012
Total Liabilities $ 6,815 $ 16,237
Share capital $5,059,586 $5,001,646
Total Shareholders' Equity $1,521,697 $1,653,775
Total Liabilities & Shareholders' Equity $1,528,512 $1,670,012
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RESULTS OF OPERTIONS

For the six month period ended March 31, 2008 the Corporation had an operating loss of $159,418 as compared to March 31, 2007 loss of $135,643. For the three month period ended March 31, 2008 the Corporation had an operating loss of $103,254 as compared to March 31, 2007 loss of $64,419.

Advertising & Promotion decreased from $67,992 to $10,464 for the 6 month period and from $24,427 to $5,746 for the three month period due to the reduction of investor relation fees and decrease in promotional expense of the Hy-Drive system.

Consulting fees increased from $106,839 to $114,169 for the 6 month period and decreased slightly from $65,023 to $63,800 for the 3 month period mainly due to increased finance staff. Included within consulting fees is stock based compensation expense which increased from $5,000 to $17,900 for the 6 month period and from $5,000 to $17,900 for the 3 month period as a result of the issuance of stock options to an officer of the Corporation.

Licenses and fees decreased from $13,387 to $9,671 for the 6 month period resulting from decreased regulatory and exchange filing fees incurred and slightly increased from $8,477 to $9,671 for the 3 month period.

Office rent increased from $5,446 to $12,486 for the 6 month period and from $3,451 to $6,306 for the 3 month period as a result of leasing larger office space during the period.

Professional fees decreased from $28,548 to $7,717 for the 6 month period and from $10,203 to $7,282 for the 3 month period due to decreased legal costs related to filings and contract review as well as decreased accounting fees for financial reporting functions now being performed internally.

Travel decreased from $13,045 to $6,657 for the 6 month period due to a decrease in international travel and promotional expenses of the Hy-Drive system and increased slightly from $5,610 to $6,353 for the three month period.

The Corporation's March 31, 2008 financial statements management discussion may be viewed on SEDAR at www.sedar.com

READER ADVISORY

This news release may contain certain forward-looking statements, including management's assessment of future plans and operations, and capital expenditures and the timing thereof, that involve substantial known and unknown risks and uncertainties, certain of which are beyond the Corporation's control. Such risks and uncertainties include, without limitation, risks associated, loss of markets, currency fluctuations, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources, the impact of general economic conditions in Canada, the United States and overseas, industry conditions, changes in laws and regulations and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, fluctuations in foreign exchange or interest rates, stock market volatility and market valuations of companies with respect to announced transactions and the final valuations thereof, and obtaining required approvals of regulatory authorities. The Corporation's actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits, including the amount of proceeds, that the Corporation will derive therefrom. Readers are cautioned that the foregoing list of factors is not exhaustive. All subsequent forward-looking statements, whether written or oral, attributable to the Corporation or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release.

The TSX Venture Exchange has neither approved nor disapproved the contents of this news release. The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

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