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                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                  FORM 10-QSB/A

          (X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 150(D) OF THE
                         SECURITIES EXCHANGE ACT OF 1934

                FOR THE QUARTERLY PERIOD ENDING: August 31, 2006

          ( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
                         SECURITIES EXCHANGE ACT OF 1934

              For the transition period from _________ to _________

                           COMMISSION FILE NO. 1-11047

                           SPARTA SURGICAL CORPORATION
           (Name of Small Business Issuer as specified in its Charter)


             Delaware                                       22-2870438
       (State Incorporated)                         (I.R.S. Employer ID Number)

5445 DTC Parkway, Suite 520
Greenwood Village, CO                                         80111
(Address of Principal Executive Offices)                    (Zip Code)

                                  848-391-2893
                           (Issuer's Telephone Number)

Check whether the issuer (I) has filed all reports required to be filed by
Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding
12 months (or for such shorter period that the registrant was required to file
such reports), and (2) has been subject to such filing requirements for the past
90 days: Yes (X) No ( ).

           Securities registered pursuant to Section 12(b) of the Act:

                                                          Name of each exchange
Title of Class                                             on which registered

$0.002 Par Value Common Stock                                      None.
$4.00 Par Value Redeemable Convertible Preferred Stock             None.
$4.00 Par Value Series A Convertible Preferred Stock               None.

          Securities registered pursuant to Section 12 (g) of the Act:

                $0.002 Par Value Common Stock
                $4.00 Par Value Series A Convertible Preferred Stock
                $4.00 Par Value Series Convertible Preferred Stock

The Registrant had no revenues for its most recent fiscal year. As of August 31,
2006, 9,973,830 shares of Registrant's Common Stock, 82,533 shares of Redeemable
Convertible Preferred Stock, and 28,068 shares of Series A Convertible Preferred
Stock were outstanding.


<PAGE>



                           SPARTA SURGICAL CORPORATION

                                  Form 10-QSB/A

                                      INDEX
Part I.   Financial Information

          Item 1.    Financial Statements (Unaudited)                         3

                     Balance Sheet for the six months ended
                     August 31, 2006 (Unaudited)                              3

                     Statements of Operations for the three months and
                     six months ended August 31, 2006 and 2005 (Unaudited)    4

                     Statements of Cash Flows for the six months
                     ended August 31, 2006 and 2005 (Unaudited)               5

          Item 2.    Management's Discussion and Analysis of
                     Financial Condition and Results of Operations
                     (Unaudited)                                             11

          Item 3.    Controls and Procedures                                 15

Part II.  Other Information and Change in Securities

          Item 1.    Legal Proceedings                                       15

          Item 2.    Change in Securities                                    15

          Item 3.    Default upon Senior Securities                          15

          Item 4.    Submission of Matters to Vote of Security Holders       15

          Item 5.    Other Information                                       15

          Item 6.    Exhibits and Signatures                                 16


                                       2
<PAGE>


                           Sparta Surgical Corporation
                                  Balance Sheet
                                 August 31, 2006
                                   (unaudited)



ASSETS                                                         $              -
                                                               -----------------


      TOTAL ASSETS                                             $              -
                                                               =================



LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES
    Accounts Payable                                           $        195,141
    Accrued Interest and Other                                           77,517
    Notes Payable to Trust                                              198,718
    Notes Payable to Trust                                              181,568
    Notes Payable to Credit Facility                                     27,268
    Dividend Payable on Preferred Stock                                  83,840
                                                               -----------------

      TOTAL CURRENT LIABILITIES                                         764,052


      TOTAL LIABILITIES                                                 764,052
                                                               -----------------


STOCKHOLDERS' EQUITY
    Preferred Stock:
      1992 Non-cumulative Convertible
         Redeemable Preferred Stock, 165,000 shares
         authorized, 82533 shares issued and
         outstanding                                                    330,132
      Series A Cumulative Convertible Preferred Stock,
         30,000 shares authorized, 27,818 shares issued
         and outstanding                                                111,272
      Series AA Cumulative Convertible Preferred Stock,
         875,000 shares authorized, none issued and
         outstanding                                                          -
    Common Stock, $0.002 par value, 25,000,000 authorized
         and 9,973,830 outstanding                                       15,467
    Additional Paid in Capital                                       14,486,197
    Accumulated Deficit                                             (15,707,120)
                                                               -----------------

      TOTAL STOCKHOLDERS' EQUITY                                       (764,052)
                                                               -----------------

      TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY               $              -
                                                               =================


   The accompanying notes are an integral part of these financial statements.


                                       3
<PAGE>


<TABLE>
<CAPTION>
                                               Sparta Surgical Corporation
                                                Statements of Operations
                                                       (unaudited)


                                                  For the three months ended:           For the six months ended:


                                              August 31, 2006    August 31, 2005    August 31, 2006    August 31, 2005
                                              -------------------------------------------------------------------------
<S>                                           <C>                <C>                <C>                <C>
Sales                                         $             -    $             -    $             -    $             -

Selling, General and Administrative
  Expenses                                             87,569                  -             91,053                  -
                                              -------------------------------------------------------------------------

Loss from Operations                                   87,569                  -             91,053                  -
                                              -------------------------------------------------------------------------

Other Income (Expense):
   Interest Expense                                    (5,660)            (5,556)           (11,337)           (11,111)
   Gain on extinguishment of debt'                          -                  -                  -                  -
                                              -------------------------------------------------------------------------

   Total Other Income (Expense)                        (5,660)            (5,556)           (11,337)           (11,111)
                                              -------------------------------------------------------------------------

   Loss before income taxes                           (93,229)            (5,556)          (102,390)           (11,111)

Income Tax Expense                                          -                  -                  -               (800)
                                              -------------------------------------------------------------------------

   Net Loss                                           (93,229)            (5,556)          (102,390)           (11,911)

Cumulative Preferred Dividends                         (4,656)                 -             (9,312)                 -
                                              -------------------------------------------------------------------------

   Net Loss to Common Shareholders            $       (97,885)   $        (5,556)   $      (111,702)   $       (11,911)
                                              =========================================================================

   Weighted average shares                          9,973,830          9,973,830          9,973,830          9,973,830

Basic and Diluted Earnings per Share,
   Net income (loss) per share                          (0.01)             (0.00)             (0.01)             (0.00)




                         The accompanying notes are an integral part of these financial statements.


                                                            4
</TABLE>
<PAGE>


                           Sparta Surgical Corporation
                            Statements of Cash Flows
                                  (unaudited)



                                                  For the six months ended:

                                              August 31, 2006   August 31, 2005
RECONCILIATION OF INCOME FROM OPERATIONS
  TO NET CASH PROVIDED BY OPERATING
  ACTIVITIES:

  Net income (loss)                           $      (111,702)  $       (11,911)
                                              ----------------------------------
  Adjustments to reconcile operating
    income to net cash from operating
    activities:
       Gain on extinguishment of debt                       -                 -
       Change in operating assets and
        liabilities:
         Accounts payable                                   -                 -
         Accrued expenses                             111,702            11,911
         Income taxes payable                               -                 -
         Notes payable                                      -                 -
                                              ----------------------------------

           Net cash from operating
            activities                        $             -   $             -
                                              ==================================





   The accompanying notes are an integral part of these financial statements.


                                       5
<PAGE>


                           Sparta Surgical Corporation
                        Notes to the Financial Statement

Note 1. Business and Summary of Significant Accounting Policies

Sparta Surgical Corporation, (the "Company"), a non-operating public company was
incorporated in Delaware on March 23, 1984. The Company was engaged in the
research, development, manufacturing and marketing of surgical and
electrotherapy products for the worldwide healthcare industry. In May 2002, the
Company divested substantially all of its assets and ceased operations on May 2,
2002. As a result, the Company retained no assets after ceasing operation, and
has performed only administrative duties as a transitory, or shell, corporation.

In June 2002 and March 2004, the Company issued to LKDTBJP Living Trust, (the
Living Trust"), various Convertible Secured Promissory Notes, (the "Convertible
Notes") in the aggregate amount of $380,286 for assuming certain of the
Company's debt and notes payable. The Convertible Notes, both principal and
accrued interest, are due on December 20, 2006. Furthermore, at the option of
the Living Trust, the Convertible Notes are convertible at any time into
3,000,000 shares of the Company's common stock, valued at $300.00 to Living
Trust.

In September 2005, the Company entered into a secured Revolving Credit Facility
Agreement (the"Agreement') with Gary A. Agron and the Living Trust (collectively
the "Lender"). As a consideration for the secured Credit Facility, the Company
agreed that the Lender shall have a first priority security interest in the
Company's assets. Subject to certain conditions, the Agreement allows the
Company to borrow up to $100,000 with interest charged at 6% per annum, and both
principal and accrued interest is due on February 27, 2007. Furthermore, the
Company agreed not to issue any additional equity or any other type of security
without the written consent of the Lender. The Company further agreed to issue
each of Agron and Living Trust 5,000,000 shares for a total of 10,000,000
shares of the Company's common stock valued at $9,253.80 to Lender as of August
31, 2005 (the "Loan Shares"). The Company further acknowledged that it currently
does not have sufficient shares of common stock authorized for the issuance of
the Loan Shares, however, the Company shall take all reasonable actions
necessary, including the holding of a shareholder meeting to amend the Company's
Certificate of Incorporation to authorized shares of the Company's common stock
so that the Loan shares may be issued/

In September 2005, since the Company did not have sufficient funds to pay Allan
J. Korn, its President for his past services, the Company authorized to issue
5,443,415 shares of its Common Stock valued at $544.34 as of August 31, 2005 to
Mr. Korn, who has acted as the Company's sole officer and director without
compensation for the past four years.


                                       6
<PAGE>


Significant Accounting Policies

There have been no significant changes in Company's significant accounting
policies during the six months ended August 31, 2006 as compared to what was
previously disclosed.

Income Taxes

No provision for federal and state income taxes has been recorded as the Company
has incurred net operating losses through August 31, 2006. The Company believes
sufficient uncertainty exists regarding the realizability of the deferred tax
assets such that a full valuation allowance is required, leaving a net deferred
tax asset of $-0-. The Company retained no assets after ceasing operations on
May 2, 2002, and has performed only administrative duties as a transitory, or
shell, corporation. The Company seeks to merge with an operating company and
does not believe net operating loss carryforwards will be available to offset
future taxable income after such merger.

Basic and Diluted Earnings Per Common Shares

In accordance with Financial Accounting Standards Boards (FASB) No. 128, basic
earnings per share computed by dividing net income by the number of weighted
average common shares outstanding during the year. Diluted earnings per share is
computed by dividing net income by the number of weighted average common shares
outstanding during the year. Statement of Financial Accounting Standards No.
128, "Earnings per Share", requires that employee equity share options,
nonvested shares and similar equity instruments granted by the Company be
treated as potential common shares outstanding in computing diluted earnings per
share. Diluted shares outstanding include the dilutive effect of in-the-money
options which is calculated based on the average share price for each fiscal
period using the treasury stock method. Under the treasury stock method, the
amount the employee must pay for the exercise stock options, the amount of
compensation cost for future service that the Company has not yet recognized,
and the amount of benefits that would be recorded in additional paid-capital
when the award becomes deductible are assumed to be used to repurchase shares.

For six months ended August 31, 2006 and 2005, there is no difference between
the basic and diluted income (loss) per shares, as there were no dilutive stock
options.


                                       7
<PAGE>

                                                          2006          2005
Numerator:                                             ----------    ----------
Net Loss applicable to common stockholders             $ (111,702)   $  (11,911)

Denominator
Weighted average shares outstanding during the year     9,973,830     9,973,830

Basic and diluted income/(loss) per common share            (0.01)        (0.00)

Revenue Recognition

The Company recognized revenue when the products are shipped. Provisions for
discounts and rebates to customers, estimated returns and allowances and other
adjustments are provided for in the same period the related revenues are
recorded.

Long-Lived Assets

The Company reviews its long-lived assets for impairment whenever events or
changes in circumstances indicate that the carrying amount of the asset may not
be recovered. The Company looks primarily to the undiscounted future cash flows
in its assessment of whether or not long-lived assets have been impaired.

Recently Issued Accounting Pronouncements

In December 2004, the FASB approved Financial Accounting Standard 123R, "Share
Based Payment, and Amendment of FASB Statements No, 123 and 95." The Standard
covers the accounting transactions in which an enterprise pays for employee
service with share based payments including employee stock options. Under the
Standard, all share based payments would be treated as other forms of
compensation by recognizing the related costs generally measured as the fair
value at the date of grant in the income statement. The company does not believe
that it will have a material effect of the Company's financial statements. This
pronouncement will be effective for interim and year-end periods beginning after
June 15, 2005.

Use of Estimates

The preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America require management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities, disclosures of contingent assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expense during the
reporting period. Actual results could differ from those estimates.


                                       8
<PAGE>


Fair Value of Financial Instrument

The fair value of accounts payable and accrued expenses approximate carrying
value due to the short-term nature of such instruments. The fair value of debt
obligations with related parties and individuals is not determinable due to the
terms of the debt and there is no comparable market for such debt.

Concentration of Credit Risk

There are no financial statements that potentially subject the Company to
significant concentrations of credit risk.

Note 3- Related Party

Amount Due to Related Party

As of August 31, 2006, in connection with the Company's Convertible Notes in the
aggregate amount of $380,286 issued to Living Trust, the Company had amounts
due, including accrued interest in the total amount of $457,743.

Note 4- Stockholders' Equity

Preferred Stock

The authorized Preferred Stock of the Company consists of 2,000,000 shares,
$4.00 par value. The Preferred Stock may be issued in series from time to time
with such designations, rights, preferences, and limitations as the Board of
Directors of the Company may determine by resolution. The rights, preferences
and limitations of separate series of Preferred Stock may differ with respect to
such matters as may be determined by the Board of Directors, including without
limitation, the rate of dividends, method and nature of payment of dividends
terms of redemption, amounts payable on liquidation, sinking fund provisions,
conversion rights and voting rights.

1992 Preferred Stock

The Company has authorized 165,000 shares of Non-Cumulative Convertible
Preferred Stock (the "1992 Preferred Stock"). The holders of the 1992 Preferred
Stock shall be entitled to receive non-cumulative dividends, at the rate of 10%
per annum or $0.40 per share, for each year that the Company has net income
after taxes. The holders of 1992 Preferred Stock are entitled to vote on all
matters upon which holders of the common stock have the right to vote, and shall
be entitled to the number of votes equal to the number of full shares of common
stock stock into which the shares of 1992 Preferred Stock could be converted.
Each share of 1992 Preferred Stock is convertible at the option of the holder
into one third of one share of common stock. Each preferred share is subject to
redemption at the Company's option at $4.00 per share under certain conditions.
The liquidation preference for the 1992 Preferred Stock is $4.00 per share.


                                       9
<PAGE>


Series A Preferred Stock

The Company has authorized 30,000 shares of Series A Convertible Redeemable
Preferred Stock (the "Series A Preferred Stock"). The holders of Series A
Preferred Stock receive cumulative dividends at the quarterly rate of $0.375 per
share. The holders of Series A Preferred Stock have no voting rights except as
to matters affecting the rights of preferred stockholders or as required by law.
In connection with any such vote, each outstanding share of Series A Preferred
Stock has one vote.

The Series A Preferred Stock is redeemable at the Company's option, for cash at
$10.00 per share plus any accrued and unpaid dividends. The Series A Preferred
Stock is $10.00 per share. The 1992 preferred stock carries liquidation rights
senior to the Series A Preferred Stock.

Series AA Preferred Stock

The Company has authorized 875,000 shares of Series AA Convertible Redeemable
Preferred Stock (the "Series AA Preferred Stock"). The holders of Series AA
Preferred Stock receive cumulative dividends at the annual rate of $0.28 per
share, payable semiannually. The holders of the Series AA Preferred Stock have
no voting rights except as to matters affecting the rights of preferred
stockholders or as required by law. In connection with any such vote, each
outstanding share of Series AA Preferred Stock has one vote. The Series AA
Preferred Stock was convertible at any time through February 10, 2001 into
shares of common stock at a rate of 9 shares of common stock each two shares of
Series AA Preferred Stock. The Series AA Preferred Stock will automatically be
converted into common stock at this rate in the event that the daily average bid
and ask price of common stock average $3.00 per share or more over a thirty
consecutive day period through February 10,200 1. At any time subsequent to
February 10, 2001, each two shares of Series AA Preferred Stock are redeemable
at the Company's option for cash at $10.00 or $8.00 plus any accrued and unpaid
dividends in the event that the daily average bid and ask price of the common
stock average at least $2.00 per share or $3.00 per share, respectively, over a
thirty consecutive day period. The liquidation preference for the Series AA
Preferred Stock is $4.00 per share. The 1992 Preferred Stock and Series A
Preferred Stock carry liquidation rights to senior to the Series AA Preferred
Stock.

Note 5. Stock Options and Warrants

The 1987 Stock Option Plan (the "Plan") provided for the grant of both incentive
stock options and non-qualified stock options. A total of 250,000 shares of
common stock have been reserved for issuance under the Plan. In April 2000, the
Company extended the Plan for an additional ten-year period, until October 1,
2007.

In January 2001, Company shareholders approved increasing the number of shares
available under the Plan to 950,000. Options granted under the Plan generally
vest within one year and terminate between five and ten years from the date of
grant. As of May 3 1, 2005, there are no stock options outstanding under the
Plan.

The Company has granted warrants to purchase common stock outside of the Plan to
a consultant. In August 2001, the Company issued 1,500,000 warrants to purchase
Company's common stock at an exercise price of $0.15 to D.H. Blair & Co. The
warrants expired on August 7, 2006.

As of August 31, 2006, the Company has $83,840 accrued for cumulative preferred
dividends.

Note 6 Restatement of Financial Statements

The Company is filing this Form 10-QSB/A for the quarter ended August 31, 2006
to amend and restate the:

     1.  balance sheet as of August 31, 2006 to reflect dividends payable on
         preferred stock of $83,840;
     2.  accumulated deficit as of August 31, 2006.


                                       10
<PAGE>


Item 2.
                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS

We are a non-operating public company with no current revenues as we divested
substantially all of our assets and ceased operations in May 2002. In recent
years we have experienced losses from operations and continue to suffer from a
deficiency in available working capital. Except for the historical information
contained herein the matters set forth in this report are forward-looking
statements within the meaning of "safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. These forward-looking statements are
subject to risks and uncertainties that may cause actual results to differ
materially. These risks are detailed from time to time in our periodic reports
filed with the Securities and Exchange Commission, including our Annual Report
on Form 10- KSB, Quarterly Reports on Form 10-QSB and other periodic filings.
These forward-looking statements speak only as of the date hereof. We disclaim
any intent or obligation to update these forward-looking statements.

These statements relate to future events in future financial performance and
involve known and unknown risks, uncertainties and other factor's that may cause
our or our industry's actual results, performance or achievements to be
materially different from these expressed or implied by any forward-looking
statements. All of these matters are difficult or impossible to predict
accurately and may be beyond our control. Although we believe that the
assumptions underlying our forward-looking statements are reasonable, any of the
assumptions could be inaccurate, therefore, there can be no assurance that the
forward-looking statements included in this Form 10-QSB will prove to be
accurate. The following discussions should be read in conjunction with the
unaudited Financial Statements and notes thereto, appearing elsewhere herein.

Risk Factors Affecting Future Operating Results

The following important factors, among others, could cause actual results to
differ materially from those contained in the forward-looking statements in this
Form 10-QSB, or presented elsewhere by management from time to time. We wish to
caution stockholders and investors that the following important factors, among
others, in some cases have affected, and in the future could affect, our actual
results and could cause our actual results to differ materially, from those
expressed in any forward-looking statements made by us. These statements under
this caption are intended to serve as cautionary statements within the scope of
the Private Securities Litigation Reform Act of 1995. The following information
is not intended to limit in any way the characterization of other statements or
information under other caption as cautionary statements for such purpose. These
factors could have a material adverse effect on our non-operating business,
operating results and financial condition. Our results of operations vary
significantly from year to year and from quarter to quarter. We have incurred
net losses in prior years and can't assure future profitability. At August 31,
2006, our accumulated deficit was approximately $15,707,000.


                                       11
<PAGE>


The following are important factors that could cause actual results to differ
materially from those anticipated in any forward-looking statements made by or
on behalf of us.

We have incurred significant operating losses and will not be profitable in the
future as the Company has experienced circumstances which raise substantial
doubt about its ability to continue as a going concern.

We have discontinued all of our operations since May 2002, as we divested
substantially of our operating assets. We have incurred approximately
$15,707,000 in cumulative net losses from inception.

There is no significant trading market for our common stock.

Our common stock is not eligible for trading on any national or regional
exchange has been quoted on the Pink Sheet of the National Quotation Services
since July 20, 2001. Our common stock has virtually no trading activity.

Because our common stock is classified as "penny stock", trading is limited and
the common stock price declined to virtually no value and therefore is very
difficult to sell.

Because our common stock falls under the definition of "penny stock", the
trading in our common stock is limited because broker-dealers are required to
provide their customers with disclosure documents prior to allowing them to
participate in transactions involving our common stock.

We do not anticipate paying dividends.

We have not paid any cash dividend on our common stock since our inception and
we do not anticipate paying cash dividends in the foreseeable future and since
2001 we have not paid any dividends to the holders of the Company's preferred
stocks.

One of our current stockholders has significant influence over our management
and directors and may take actions that may not be in the best interest of other
stockholders.

Our co-founder beneficially owns approximately sixty-six percent (66%) of our
common stock. Therefore, he will be able, among other things, to elect
directors.


                                       12
<PAGE>


Results of Operations

Three Months Ended August 31, 2006 as Compared to Three Months Ended August 31,
2005.

We had no revenues for the Three Months Ended August 31, 2006 ("First Quarter
Ended Fiscal 2007") and no revenues for the Three Months Ended August 31, 2005
("First Quarter Ended Fiscal 2006") due to the Company divesting substantially
all of its assets and as a result ceased operations on May 2, 2002.

Selling, general and administrative ("SG&A") expenses for the First Quarter
Ended Fiscal 2007 were $87,569, an increase of $82,013 as compared to expenses
for the First Quarter Ended Fiscal 2006. The increase in SG &A expenses for the
First Quarter Ended Fiscal 2007 is attributed to our legal and account fees,
interest expenses, selling, general and administrative expenses.

Total Other Expense for the First Quarter Ended Fiscal 2007 were $5,660, an
increase of $4 as compared to $5,556 for First Quarter Ended Fiscal 2006. The
Total Other Expense is attributed to interest expenses relating to Notes
Payables.

As a result of the foregoing, the net loss for the First Quarter Ended Fiscal
2007 was $97,885, an increase of $92,329 as compared to net loss of $5,556 for
the First Quarter Ended Fiscal 2006. The net loss for the First Quarter Ended
Fiscal 2007 is attributed to legal and accounting fees, interest expenses,
selling, general and administrative expenses.


Six Months Ended August 31, 2006 as
Compared to Six Months Ended August 31, 2005

We had no revenues for the six months ended August 31, 2006 ("Second Quarter
Ended Fiscal 2007") and no revenues for Six Months Ended August 31, 2005
("Second Quarter Ended Fiscal 2006") due to the Company divesting substantially
all of its assets and ceased operations in May 2002.

Selling, general and administrative ("SG&A") expenses for Second Quarter Ended
Fiscal 2007 were $91,053, an increase of $79,942 as compared to expenses for
Second Quarter Ended Fiscal 2006. The increase in SG&A expenses for the Second
Quarter Ended Fiscal 2007 is attributed to our legal and accounting fees
interest and selling expenses, general and administrative expenses.

Total Other Expenses for the Second Quarter Ended Fiscal 2007 were $11,337, a
decrease of $226, as compared to to $11,111 for Second Quarter Ended Fiscal
2006. The Total Other Expense increase is attributed to the interest expenses
relating to our Notes Payable and the Credit Facility obligations.


                                       13
<PAGE>


As a result of the foregoing, the net loss for the Second Quarter Ended Fiscal
2007 were $111,702, an increase of $99,791, as compared to net loss of $11,911
for the Second Quarter Fiscal 2005. The net loss for the Second Quarter Ended
Fiscal 2007 is attributed to our legal and accounting fees, interest, selling,
and administrative expenses.


Liquidity and Capital Resources

Since inception, we have been undercapitalized and have experienced financial
difficulties. Our primary sources of working capital have been revenues from
operations, bank and private party loans and proceeds from the sale of
securities. Many of the bank and private party loans and certain of our other
obligations have required personal guarantees in order to continue to operate
our business. In May 2002, the Company divested substantially all of its assets
and ceased operations, and has performed only administrative duties as a
transitory, or shell, corporation. Our working capital at August 31, 2006 was
negative in deficit.

On June 15,2002, and March 2004, we issued various convertible secured
promissory notes (the "Notes") to Living Trust in the aggregate amount of
$380,286 for assuming certain of our trade and notes payable. The terms of the
Notes are that both of the principal and accrued interest are due on December
20, 2006. The Notes carry a 6% interest per annum and the option of Living Trust
the Notes are convertible at any time into 15,000,000 shares of the Company's
common stock, which subsequently was amended to 3,000,000 shares, valued at
$300.00 to Living Trust.

On October 15, 2001 and May 2, 2002, we completed the sale of substantially all
of our assets, including inventory, accounts receivable, machinery and equipment
and all intangible assets. In connection with the sale of these assets, we paid
all amounts required to our senior lenders who had security interests in all of
our assets and the remaining balance we used to pay our trade payables. As a
result, our senior lender entered into a settlement agreement which contained
customary releases and forever discharges each other from any and all claims and
demands of every kind and nature. The parties dismissed their suits against each
other.


                                       14
<PAGE>


Item 3. Controls and Procedures

The Company maintains controls and procedures designed to ensure that the
information required to be disclosed in the reports that the Company files or
submits under the Securities Exchange Act of 1934, is recorded, processed,
summarized and reported within the time periods specified in the rules and forms
of the Securities Exchange Commission. Based upon their evaluation of those
controls and procedures performed within 90 days of the filing date of this
report, the Company's chief executive officer and the principal financial
officer (or persons performing similar functions) concluded that the Company's
disclosure controls and procedures were adequate.

As a result of its evaluation, the Company has been made no significant changes
in its internal controls or other factors that could significantly affect the
controls and other procedures already in place.


Part II. Other Information

Item 1. Legal Proceedings.

None.

Item 2. Changes in Securities

None.

Item 3. Default Upon Senior Securities.

None.

Item 4. Submission of Matters to a Vote of Security Holders.

None.

Item 5. Other Information

None.



                                       15
<PAGE>


Item 6. Exhibits and Reports on Form 8-K

a) Exhibits

Number        Description
------        -----------

31.1          Certification by Chief Executive and Chief Financial Officer
              pursuant to Sarbanes-Oxley Section 302.

32.1          Certification by Chief Executive and Chief Financial Officer
              pursuant to 18 U.S.C. Section 1350.

b) Reports on Form 8K
None



SIGNATURES

In accordance with the requirements of the Exchange Act, the registrant caused
this report to be signed on its behalf by the undersigned, thereunto duly
authorized.

                                              Sparta Surgical Corporation
                                              (Registrant)

Date: February 20, 2007                       By: /s/ Allan J. Korn
                                                 ---------------------
                                                 Allan J. Korn
                                                 Chief Executive Officer
                                                 Chief Financial Officer
                                                 Director














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