Sparta Capital Ltd.
TSX VENTURE : SAY

Sparta Capital Ltd.

August 13, 2008 11:02 ET

Sparta Capital Ltd. Releases Third Quarter Financial Statements

EDMONTON, ALBERTA--(Marketwire - Aug. 13, 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 nine month periods ended June 30, 2008.

The net loss for the three month and nine month periods ended June 30, 2008 was $65,097 and $224,515 respectively.



SUMMARY OF INCOME STATEMENT INFORMATION
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April 1 to October 1 to
Income Statement June 30, 2008 June 30, 2008
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Sales - -
Cost of sales - -
Operating expenses $ 67,109 $ 242,246
Other income $ 2,012 $ 17,731
Net income (loss) for period $ (65,097) $ (224,515)
Per share - basic and diluted $ (0.002) $ (0.006)
Weighted average shares outstanding - basic 35,247,631 35,211,500
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SUMMARY OF CASH FLOW INFORMATION
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April 1 to October 1 to
Cash Flow June 30, 2008 June 30, 2008
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Cash from operating activities $ (50,825) $ (207,863)
Cash from financing activities - $ 14,440
Cash from investing activities $ (969) $ 3,041
Decrease in cash and cash equivalents $ (51,794) $ (190,382)
Cash and cash equivalents - beginning of period $ 556,419 $ 695,007
Cash and cash equivalents - end of period $ 504,625 $ 504,625
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SUMMARY OF BALANCE SHEET INFORMATION
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September 30,
Balance Sheet June 30, 2008 2007
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Cash and cash equivalents $ 504,625 $ 695,007
Total Assets $ 1,471,326 $ 1,670,012
Total Liabilities $ 14,726 $ 16,237
Share capital $ 5,059,586 $ 5,001,646
Total Shareholders' Equity $ 1,456,600 $ 1,653,775
Total Liabilities & Shareholders' Equity $ 1,471,326 $ 1,670,012
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RESULTS OF OPERATIONS

For the nine month period ended June 30, 2008 the Corporation had an operating loss of $224,515 as compared to June 30, 2007 loss of $216,062. For the three month period ended June 30, 2008 the Corporation had an operating loss of $65,097 as compared to June 30, 2007 loss of $80,419.

Advertising & Promotion decreased from $77,643 to $13,373 for the nine month period and from $9,651 to $2,909 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 $155,606 to $161,002 for the nine month period and decreased slightly from $48,767 to $46,833 for the 3 month period mainly due to increased finance staff. Included within consulting fees is stock based compensation expense which increased from $16,667 to $17,900 for the nine month period as a result of the issuance of stock options to an officer of the Corporation and decreased from $6,667 to $Nil for the 3 month period as a result of the amortization of existing stock based compensation.

Licenses and fees decreased from $15,764 to $12,010 for the nine month period resulting from decreased regulatory and exchange filing fees incurred and slightly decreased from $2,377 to $2,339 for the 3 month period.

Office rent increased from $11,596 to $16,182 for the nine month period as a result of leasing larger office space during the period and decreased from $6,150 to $3,696 for the 3 month period due to office relocation with reduced lease costs during the current period.

Professional fees decreased from $29,892 to $9,033 for the nine month period and from $1,344 to $1,316 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 $17,207 to $10,515 for the nine month period due to a decrease in international travel and promotional expenses of the Hy-Drive system and decreased slightly from $4,162 to $3,858 for the three month period.

The Corporation's June 30, 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, loss of markets, volatility of commodity prices, 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 and the Corporation does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

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