Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Jul. 31, 2016 | Sep. 12, 2016 | |
Document Information [Line Items] | ||
Entity Registrant Name | WPCS INTERNATIONAL INC | |
Entity Central Index Key | 1,086,745 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jul. 31, 2016 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --04-30 | |
Entity Filer Category | Smaller Reporting Company | |
Trading Symbol | WPCS | |
Entity Common Stock, Shares Outstanding | 2,848,659 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Jul. 31, 2016 | Apr. 30, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 1,939,900 | $ 2,235,597 |
Accounts receivable, net of allowance of $92,000 at July 31, 2016 and April 30, 2016, respectively | 4,328,118 | 2,886,154 |
Costs and estimated earnings in excess of billings on uncompleted contracts | 437,185 | 357,210 |
Prepaid expenses and other current assets | 123,977 | 66,256 |
Total current assets | 6,829,180 | 5,545,217 |
Property and equipment, net | 298,559 | 237,800 |
Other assets | 24,940 | 21,162 |
Total assets | 7,152,679 | 5,804,179 |
Current liabilities: | ||
Current portion of loans payable | 60,848 | 53,996 |
Accounts payable and accrued expenses | 2,276,717 | 2,071,765 |
Billings in excess of costs and estimated earnings on uncompleted contracts | 1,901,295 | 1,358,289 |
Total current liabilities | 4,238,860 | 3,484,050 |
Loans payable, net of current portion | 108,833 | 94,825 |
Total liabilities | 4,347,693 | 3,578,875 |
Commitments and contingencies | ||
Stockholders' equity | ||
Preferred stock | ||
Common stock - $0.0001 par value, 100,000,000 shares authorized, 2,706,159 and 2,691,055 shares issued and outstanding as of July 31, 2016 and April 30, 2016, respectively | 271 | 269 |
Additional paid-in capital | 85,962,888 | 85,940,389 |
Accumulated deficit | (84,263,759) | (84,820,940) |
Total stockholders' equity | 2,804,986 | 2,225,304 |
Total liabilities and stockholders' equity | 7,152,679 | 5,804,179 |
Convertible Series H [Member] | ||
Stockholders' equity | ||
Preferred stock | 406,262 | 406,262 |
Convertible Series H-1 [Member] | ||
Stockholders' equity | ||
Preferred stock | $ 699,324 | $ 699,324 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS [Parenthetical] - USD ($) | Jul. 31, 2016 | Apr. 30, 2016 |
Allowance for accounts receivable | $ 92,000 | $ 92,000 |
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 2,706,159 | 2,691,055 |
Common stock, shares outstanding | 2,706,159 | 2,691,055 |
Convertible Series H [Member] | ||
Preferred stock, shares authorized | 8,500 | |
Preferred stock, shares issued | 2,638 | 2,638 |
Preferred Stock, Shares Outstanding | 2,638 | 2,638 |
Preferred Stock, liquidation preference (in dollars) | $ 406,000 | $ 406,000 |
Convertible Series H-1 [Member] | ||
Preferred stock, shares authorized | 9,488 | |
Preferred stock, shares issued | 8,119 | 8,119 |
Preferred Stock, Shares Outstanding | 8,119 | 8,119 |
Preferred Stock, liquidation preference (in dollars) | $ 1,348,000 | $ 1,348,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 3 Months Ended | |
Jul. 31, 2016 | Jul. 31, 2015 | |
Revenue | $ 3,416,453 | $ 4,464,003 |
Costs and expenses: | ||
Cost of revenue | 2,635,508 | 3,447,203 |
Selling, general and administrative expenses | 1,352,986 | 1,312,803 |
Depreciation and amortization | 20,666 | 14,969 |
Costs and expenses | 4,009,160 | 4,774,975 |
Operating loss | (592,707) | (310,972) |
Other income (expense): | ||
Interest expense | (1,981) | (892) |
Income from Section 16 settlement | 0 | 400,000 |
Income from Arbitration settlement | 1,150,000 | 0 |
Other income (expense) | 4,487 | (2,906) |
Income from continuing operations before income tax provision | 559,799 | 85,230 |
Income tax provision | 2,618 | 1,099 |
Income from continuing operations | 557,181 | 84,131 |
Discontinued operations: | ||
Income from discontinued operations | 0 | 41,261 |
Consolidated net income | 557,181 | 125,392 |
Net income attributable to noncontrolling interest | 0 | 16,505 |
Net loss attributable to WPCS | 557,181 | 108,887 |
Dividends declared on preferred stock | 0 | (3,587,121) |
Deemed dividend on convertible preferred stock, due to beneficial conversion feature | 0 | (703,770) |
Net income (loss) attributable to WPCS common shareholders | $ 557,181 | $ (4,182,004) |
Basic income (loss) from continuing operations per common share | $ 0.21 | $ (2.86) |
Basic income from discontinued operations per common share | 0 | 0.02 |
Basic income (loss) per common share | 0.21 | (2.84) |
Diluted income (loss) from continuing operations per common share | 0.14 | (2.86) |
Diluted income from discontinued operations per common share | 0 | 0.02 |
Diluted income (loss) per common share | $ 0.14 | $ (2.84) |
Weighted average shares outstanding - basic | 2,701,404 | 1,470,248 |
Weighted average shares outstanding - diluted | 3,937,628 | 1,470,248 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) | 3 Months Ended | |
Jul. 31, 2016 | Jul. 31, 2015 | |
Consolidated net income | $ 557,181 | $ 125,392 |
Foreign currency translation adjustments | 0 | (647) |
Comprehensive income | 557,181 | 124,745 |
Less: comprehensive loss attributable to noncontrolling interest | 0 | (431) |
Comprehensive income attributable to WPCS shareholders | $ 557,181 | $ 125,176 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY - 3 months ended Jul. 31, 2016 - USD ($) | Total | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] |
Balance at Apr. 30, 2016 | $ 2,225,304 | $ 1,105,586 | $ 269 | $ 85,940,389 | $ (84,820,940) |
Balance (in shares) at Apr. 30, 2016 | 10,757 | 2,691,055 | |||
Share based compensation | 22,501 | $ 0 | $ 2 | 22,499 | 0 |
Share based compensation (in shares) | 0 | 15,104 | |||
Net income | 557,181 | $ 0 | $ 0 | 0 | 557,181 |
Balance at Jul. 31, 2016 | $ 2,804,986 | $ 1,105,586 | $ 271 | $ 85,962,888 | $ (84,263,759) |
Balance (in shares) at Jul. 31, 2016 | 10,757 | 2,706,159 |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 3 Months Ended | |
Jul. 31, 2016 | Jul. 31, 2015 | |
Operating activities: | ||
Net income from operations | $ 557,181 | $ 84,131 |
Consolidated net income from discontinued operations | 0 | 41,261 |
Adjustments to reconcile consolidated net income to net cash (used in) provided by operating activities: | ||
Depreciation and amortization | 20,666 | 14,969 |
Shares based compensation | 22,501 | |
Income on Section 16 settlement | 0 | (400,000) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (1,441,964) | 1,424,935 |
Costs and estimated earnings in excess of billings on uncompleted contracts | (79,975) | (103,324) |
Current assets held for sale | 0 | (506,215) |
Prepaid expenses and other current assets | (57,721) | 84,464 |
Other assets | (3,778) | 0 |
Other assets held for sale | 0 | (34,522) |
Income taxes payable | 0 | (2,658) |
Accounts payable and accrued expenses | 204,952 | (1,277,741) |
Current liabilities held for sale | 0 | 2,200,030 |
Billings in excess of costs and estimated earnings on uncompleted contracts | 543,006 | 125,355 |
Net cash (used in) provided by operating activities | (235,132) | 1,650,685 |
Investing activities: | ||
Acquisition of property and equipment | (30,803) | (10,707) |
Net cash used in investing activities | (30,803) | (10,707) |
Financing activities: | ||
Borrowings under loan payable obligations | 0 | 7,762 |
Repayment under loan payable obligations | (29,762) | 0 |
Repayments under other payable to Zurich | 0 | (135,000) |
Repayments of short term convertible note | 0 | (4,000) |
Net cash (used in) provided by financing activities | (29,762) | 1,443,762 |
Effect of exchange rate changes on cash | 0 | 91,510 |
Net (decrease) increase in cash and cash equivalents | (295,697) | 3,175,250 |
Cash and cash equivalents, beginning of the period | 2,235,597 | 2,364,360 |
Cash and cash equivalents, end of the period | 1,939,900 | 5,539,610 |
Schedule of non-cash investing and financing activities: | ||
Asset financing | 50,622 | 0 |
Declaration on preferred dividend payable | 0 | 3,587,121 |
Warrants issued with convertible preferred stock | 0 | 841,405 |
Deemed dividend on conversion of preferred stock to common stock | 0 | 703,770 |
Conversion of dividends payable related to make-whole amount to common stock | 0 | 3,375,792 |
Series F-1 Preferred Stock [Member] | ||
Schedule of non-cash investing and financing activities: | ||
Conversion of dividends payable related to make-whole amount to common stock | 0 | 501,826 |
Series G-1 Preferred Stock [Member] | ||
Schedule of non-cash investing and financing activities: | ||
Conversion of dividends payable related to make-whole amount to common stock | 0 | 158,481 |
Series F And F1 Preferred Stock [Member] | ||
Schedule of non-cash investing and financing activities: | ||
Conversion of preferred stock through the issuance of common stock | 0 | 2,731,984 |
Series G And G1 Preferred Stock [Member] | ||
Schedule of non-cash investing and financing activities: | ||
Conversion of preferred stock through the issuance of common stock | 0 | 1,084,230 |
Series H Preferred Stock [Member] | ||
Schedule of non-cash investing and financing activities: | ||
Conversion of Stock, Amount Converted | 0 | 1,299,000 |
Conversion of preferred stock through the issuance of common stock | 0 | 691,768 |
Series H-1 Preferred Stock [Member] | ||
Financing activities: | ||
Proceeds from issuance of Series H-1 preferred stock and warrants | $ 0 | $ 1,575,000 |
DESCRIPTION OF THE BUSINESS AND
DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION | 3 Months Ended |
Jul. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION | Description of the Business The Company currently specializes in low voltage communications, audio-visual and security contracting services, conducting business in one segment but three operation centers, through its wholly-owned domestic subsidiaries, WPCS International - Suisun City, Inc. (“Suisun City Operations”) and WPCS International - Texas Operations, Inc. (“Texas Operations”). The Company is a full-service low voltage contractor that specializes in the installation and service of Voice & Data Networks, Security Systems, Audio-Visual Solutions, and Distributed Antenna Systems and provides experienced project management and delivers complex projects to key vertical markets that include Healthcare, Education, Transportation, Energy & Utilities, Oil & Gas, Manufacturing, Commercial Real Estate, Financial, Government, etc. The Company also has strategic alliances with technology partners to provide consulting and application software development services for collaboration, visualization and unified communications and is aligned with major manufacturers to provide the products and technology for seamless integrated and enhanced user experience for enterprise solutions. Basis of Presentation The condensed consolidated financial statements of WPCS International Incorporated, a Delaware corporation (“WPCS”) and its wholly and majority-owned subsidiaries, (collectively, the “Company”) included in this Report for the three months ended July 31, 2016 and 2015, reflect the accounts of current and former entities as either continued or discontinued operations, as discussed below. Continuing operations for the three months ended July 31, 2016 and 2015 include the results of operations of: (i) WPCS International Incorporated (corporate operating expenses); (ii) Suisun City Operations and the Texas Operations, the Company’s only two active operating subsidiaries; (iii) WPCS Incorporated, an inactive subsidiary; and (iv) WPCS International Trenton, Inc. (“Trenton Operations”), which operations were closed in September 2013. Discontinued operations for the three months ended July 31, 2015 include the results of WPCS Asia Limited, a 60 The unaudited condensed consolidated financial information furnished herein reflects all adjustments (consisting of normal recurring accruals) which are, in the opinion of management, considered necessary for a fair presentation of the financial position and the results of operations and cash flows of the Company for the periods presented. All intercompany accounts and transactions have been eliminated in consolidation. These unaudited condensed consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") for interim financial information. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. These interim condensed consolidated financial statements should be read in conjunction with the financial statements included in the Annual Report on Form 10-K for the fiscal year ended April 30, 2016. The results of operations for the three months ended July 31, 2016 are not necessarily indicative of the results to be expected for the full fiscal year. |
LIQUIDITY AND CAPITAL RESOURCES
LIQUIDITY AND CAPITAL RESOURCES | 3 Months Ended |
Jul. 31, 2016 | |
Liquidity and Capital Resources [Abstract] | |
LIQUIDITY AND CAPITAL RESOURCES | NOTE 2 LIQUIDITY AND CAPITAL RESOURCES As of July 31, 2016, the Company had a working capital surplus of approximately $ 2,590,000 2,061,000 The Company’s cash and cash equivalents balance at July 31, 2016 was $ 1,940,000 2,236,000 The Company's future plans and growth are dependent on its ability to increase revenues and continue its business development efforts surrounding its contract award backlog. If the Company continues to incur losses and revenues do not generate from the backlog as expected, the Company may need to raise additional capital to expand its business and continue as a going concern. The Company currently anticipates that its current cash position will be sufficient to meet its working capital requirements to continue its sales and marketing efforts for at least 12 months from the filing date of this report. If in the future the Company’s plans or assumptions change or prove to be inaccurate, the Company may need to raise additional funds through public or private debt or equity offerings, financings, corporate collaborations, or other means. The Company may also be required to reduce operating expenditures or investments in its infrastructure. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Jul. 31, 2016 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES There have been no material changes in the Company’s significant accounting policies to those previously disclosed in the Form 10-K for the year ended April 30, 2016. Accounting standards that have been issued or proposed by the Financial Accounting Standards Board (“FASB”), Securities and Exchange Commission (“SEC”) or other standard setting bodies that do not require adoption until a future date are not expected to have a material impact on the consolidated financial statements upon adoption. Certain reclassifications have been made in prior years’ consolidated financial statements to conform to the current year’s presentation. These reclassifications reflect the results of the China Operations as discontinued operations for all periods presented. |
CONCENTRATIONS
CONCENTRATIONS | 3 Months Ended |
Jul. 31, 2016 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATIONS | NOTE 4 CONCENTRATIONS Accounts Receivable As of July 31, 2016, two customers comprised 42 404,000 326,000 Revenue Recognition For the three months ended July 31, 2016, 8 21 15 |
BASIC AND DILUTED NET INCOME (L
BASIC AND DILUTED NET INCOME (LOSS) PER COMMON SHARE | 3 Months Ended |
Jul. 31, 2016 | |
Earnings Per Share [Abstract] | |
BASIC AND DILUTED NET LOSS PER COMMON SHARE | NOTE 5 BASIC AND DILUTED NET INCOME (LOSS) PER COMMON SHARE Basic and diluted net income (loss) per common share from continuing operations is computed as net income (loss) from continuing operations less non-controlling interest and dividends on preferred stock, divided by the weighted average number of common shares outstanding for the period. For the three months ended July 31, 2016 2015 Numerator: Income (loss) from continuing operations attributable to WPCS common shareholders $ 557,181 $ (4,206,760) Income from discontinued operations, basic and diluted - 24,756 Net income (loss) attributable to WPCS common shareholders, basic and diluted $ 557,181 $ (4,182,004) Denominator: Weighted average shares outstanding basic 2,701,404 1,470,248 Stock options 160,524 - Series H and H-1 convertible preferred stock 1,075,700 - Weighted average shares outstanding diluted 3,937,628 1,470,248 Basic income (loss) from continuing operations per common share $ 0.21 $ (2.86) Basic income from discontinued operations per common share - 0.02 Basic income (loss) per common share $ 0.21 $ (2.84) Diluted income (loss) from continuing operations per common share $ 0.14 $ (2.86) Diluted income from discontinued operations per common share - 0.02 Diluted income (loss) per common share $ 0.14 $ (2.84) As of July 31, 2016 2015 Common stock equivalents: Common stock options 865,000 41,000 Series F and F-1 preferred stock - 84,000 Series G and G-1 preferred stock - 118,000 Series H and H-1 preferred stock - 1,248,000 Make-whole on preferred shares - 56,000 Common stock purchase warrants 1,295,000 1,295,000 Totals 2,160,000 2,842,000 |
COSTS AND ESTIMATED EARNINGS ON
COSTS AND ESTIMATED EARNINGS ON UNCOMPLETED CONTRACTS | 3 Months Ended |
Jul. 31, 2016 | |
Contractors [Abstract] | |
COSTS AND ESTIMATED EARNINGS ON UNCOMPLETED CONTRACTS | NOTE 6 COSTS AND ESTIMATED EARNINGS ON UNCOMPLETED CONTRACTS Costs and estimated earnings in excess of billings on uncompleted contracts represents revenue recognized in excess of amounts billed. The liability, “Billings in excess of costs and estimated earnings on uncompleted contracts”, represents billings in excess of revenue recognized. July 31, 2016 April 30, 2016 Costs incurred on uncompleted contracts $ 30,127,451 $ 28,884,776 Estimated contract earnings 4,663,183 4,367,463 34,790,634 33,252,239 Less: Billings to date 36,254,744 34,253,318 Total $ (1,464,110) $ (1,001,079) Costs and estimated earnings in excess of billings on uncompleted contracts $ 437,185 $ 357,210 Billings in excess of cost and estimated earnings on uncompleted contracts 1,901,295 1,358,289 Total $ (1,464,110) $ (1,001,079) Revisions in the estimated gross profits on contracts and contract amounts are made in the period in which circumstances requiring the revisions become known. Although management believes it has established adequate procedures for estimating costs to complete on open contracts, it is at least reasonably possible that additional significant costs could occur on contracts prior to completion. |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | 3 Months Ended |
Jul. 31, 2016 | |
Discontinued Operations | |
DISCONTINUED OPERATIONS | NOTE 7 DISCONTINUED OPERATIONS The Company previously disclosed the details regarding the sales of its China Operations in its Form 10-K filed for the year ended April 30, 2016. For the three months ended July 31, 2016 2015 Revenue $ - $ 839,969 Costs and expenses: Cost of revenue - 546,296 Selling, general and administrative expenses - 111,324 Depreciation and amortization - 80,971 - 738,591 Operating income (loss) from discontinued operations - 101,378 Interest expense - 49,234 Income (loss) from discontinued operations before income tax provision - 52,144 Income tax provision - 10,883 Total income from discontinued operations $ - $ 41,261 Due Related Party As of July 31, 2016 and April 30, 2016, the China Operations had outstanding payables, representing interest accrued on working capital loans and cash provided for the purpose of retiring the short term bank loan in the amounts of $0 and $0, respectively, due on demand to a related party, TGG. This loan, which was paid off at the time of sale of our China Operations was not guaranteed by WPCS. Interest expense for the quarter ended July 31, 2015 was immaterial. The China Operations earned revenue for contracting services provided to TGG (noncontrolling interest in China Operations) and subsidiaries of $0 and $212,000 for the three months ended July 31, 2016 and 2015, respectively. |
INCOME FROM SECTION 16 SETTLEME
INCOME FROM SECTION 16 SETTLEMENT | 3 Months Ended |
Jul. 31, 2016 | |
Income From Section Sixteen Settlements [Abstract] | |
INCOME FROM SECTION 16 SETTEMENTS | NOTE 8 INCOME FROM SECTION 16 SETTLEMENT For the three months ended July 31, 2016, the Company received no income from Section 16 settlements. For the same period in 2015, the Company received $ 400,000 |
BANK LINE OF CREDIT
BANK LINE OF CREDIT | 3 Months Ended |
Jul. 31, 2016 | |
Line of Credit Facility [Abstract] | |
BANK LINE OF CREDIT | NOTE 9 BANK LINE OF CREDIT On May 20, 2015 1,000,000 2 , such as, amongst As of the filing date of this report, the Company has not drawn down on the line of credit. |
LOANS PAYABLE
LOANS PAYABLE | 3 Months Ended |
Jul. 31, 2016 | |
Debt Disclosure [Abstract] | |
LOANS PAYABLE | NOTE 10 LOANS PAYABLE As of July 31, 2016 and April 30, 2016, the Company had approximately $ 170,000 149,000 3.89 4.89 61,000 109,000 |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 3 Months Ended |
Jul. 31, 2016 | |
Stockholders' Equity Note [Abstract] | |
STOCKHOLDERS’ EQUITY | NOTE 11 STOCKHOLDERS’ EQUITY Issuance of Common Shares On August 1, 2015, the Company entered into an engagement letter with an investment bank to provide investment advisory services for a period of twelve (12) months, which may be extended by mutual consent of the parties. The Company agreed to pay a $ 7,500 15,104 22,501 63,073 The Company did not renew this agreement beyond the July 31, 2016 termination date |
INCOME FROM ARBITRATION SETTLEM
INCOME FROM ARBITRATION SETTLEMENT | 3 Months Ended |
Jul. 31, 2016 | |
Income From Legal Settlements [Abstract] | |
INCOME FROM ARBITRATION SETTLEMENTS | NOTE 12 INCOME FROM ARBITRATION SETTLEMENT On June 16, 2016, the Company entered into a global settlement agreement and mutual release to resolve all disputes and claims regarding the construction of the Cooper Medical School at Rowan University, located in Camden, New Jersey, in which the Company served as an electrical prime contractor. As a result of such settlement, the Company received proceeds of $ 1,150,000 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Jul. 31, 2016 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 13 SUBSEQUENT EVENTS On August 4, 2016 the Company issued 142,500 1,425 On August 8, 2016, the Company settled a $ 232,000 125,000 107,000 |
SUMMARY OF SIGNIFICANT ACCOUN21
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Jul. 31, 2016 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | There have been no material changes in the Company’s significant accounting policies to those previously disclosed in the Form 10-K for the year ended April 30, 2016. |
Recently Issued Accounting Pronouncements | Recent Accounting Pronouncements Accounting standards that have been issued or proposed by the Financial Accounting Standards Board (“FASB”), Securities and Exchange Commission (“SEC”) or other standard setting bodies that do not require adoption until a future date are not expected to have a material impact on the consolidated financial statements upon adoption. |
Reclassifications | Reclassifications Certain reclassifications have been made in prior years’ consolidated financial statements to conform to the current year’s presentation. These reclassifications reflect the results of the China Operations as discontinued operations for all periods presented. |
BASIC AND DILUTED NET INCOME 22
BASIC AND DILUTED NET INCOME (LOSS) PER COMMON SHARE (Tables) | 3 Months Ended |
Jul. 31, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | Diluted net income per common share reflects the potential dilution that could occur from common stock issuable through the exercise of stock options and warrants and note conversions. For the three months ended July 31, 2016 2015 Numerator: Income (loss) from continuing operations attributable to WPCS common shareholders $ 557,181 $ (4,206,760) Income from discontinued operations, basic and diluted - 24,756 Net income (loss) attributable to WPCS common shareholders, basic and diluted $ 557,181 $ (4,182,004) Denominator: Weighted average shares outstanding basic 2,701,404 1,470,248 Stock options 160,524 - Series H and H-1 convertible preferred stock 1,075,700 - Weighted average shares outstanding diluted 3,937,628 1,470,248 Basic income (loss) from continuing operations per common share $ 0.21 $ (2.86) Basic income from discontinued operations per common share - 0.02 Basic income (loss) per common share $ 0.21 $ (2.84) Diluted income (loss) from continuing operations per common share $ 0.14 $ (2.86) Diluted income from discontinued operations per common share - 0.02 Diluted income (loss) per common share $ 0.14 $ (2.84) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following securities were excluded from the weighted average dilutive common shares outstanding because their inclusion would have been antidilutive. As of July 31, 2016 2015 Common stock equivalents: Common stock options 865,000 41,000 Series F and F-1 preferred stock - 84,000 Series G and G-1 preferred stock - 118,000 Series H and H-1 preferred stock - 1,248,000 Make-whole on preferred shares - 56,000 Common stock purchase warrants 1,295,000 1,295,000 Totals 2,160,000 2,842,000 |
COSTS AND ESTIMATED EARNINGS 23
COSTS AND ESTIMATED EARNINGS ON UNCOMPLETED CONTRACTS (Tables) | 3 Months Ended |
Jul. 31, 2016 | |
Contractors [Abstract] | |
Schedule of Costs and Estimated Earnings on Uncompleted Contracts | Costs and estimated earnings on uncompleted contracts consist of the following at July 31, 2016 and April 30, 2016: July 31, 2016 April 30, 2016 Costs incurred on uncompleted contracts $ 30,127,451 $ 28,884,776 Estimated contract earnings 4,663,183 4,367,463 34,790,634 33,252,239 Less: Billings to date 36,254,744 34,253,318 Total $ (1,464,110) $ (1,001,079) Costs and estimated earnings in excess of billings on uncompleted contracts $ 437,185 $ 357,210 Billings in excess of cost and estimated earnings on uncompleted contracts 1,901,295 1,358,289 Total $ (1,464,110) $ (1,001,079) |
DISCONTINUED OPERATIONS (Tables
DISCONTINUED OPERATIONS (Tables) | 3 Months Ended |
Jul. 31, 2016 | |
Discontinued Operations | |
Schedule of Disposal Groups, Including Discontinued Operations, Income Statement | The schedule below shows the results of discontinued operations from China for the three months ended July 31, 2016 and 2015. For the three months ended July 31, 2016 2015 Revenue $ - $ 839,969 Costs and expenses: Cost of revenue - 546,296 Selling, general and administrative expenses - 111,324 Depreciation and amortization - 80,971 - 738,591 Operating income (loss) from discontinued operations - 101,378 Interest expense - 49,234 Income (loss) from discontinued operations before income tax provision - 52,144 Income tax provision - 10,883 Total income from discontinued operations $ - $ 41,261 |
DESCRIPTION OF THE BUSINESS A25
DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION (Details Textual) | 3 Months Ended | |
Jul. 31, 2016 | Jul. 31, 2015 | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||
Percentage Of International Operation | 0.00% | 60.00% |
LIQUIDITY AND CAPITAL RESOURC26
LIQUIDITY AND CAPITAL RESOURCES (Details Textual) - USD ($) | Jul. 31, 2016 | Apr. 30, 2016 | Jul. 31, 2015 | Apr. 30, 2015 |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||
Working Capital Surplus | $ 2,590,000 | $ 2,061,000 | ||
Cash and Cash Equivalents, at Carrying Value, Total | $ 1,939,900 | $ 2,235,597 | $ 5,539,610 | $ 2,364,360 |
CONCENTRATIONS (Details Textual
CONCENTRATIONS (Details Textual) - USD ($) | 3 Months Ended | ||
Jul. 31, 2016 | Jul. 31, 2015 | Apr. 30, 2016 | |
Concentration Risk [Line Items] | |||
Contract Receivable Retainage, Total | $ 404,000 | $ 326,000 | |
Accounts Receivable [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 42.00% | ||
Sales Revenue, Net [Member] | Customer One [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 8.00% | 21.00% | |
Sales Revenue, Net [Member] | Customer Two [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 15.00% |
BASIC AND DILUTED NET INCOME 28
BASIC AND DILUTED NET INCOME (LOSS) PER COMMON SHARE (Details) - USD ($) | 3 Months Ended | |
Jul. 31, 2016 | Jul. 31, 2015 | |
Numerator: | ||
Income (loss) from continuing operations attributable to WPCS common shareholders | $ 557,181 | $ (4,206,760) |
Income from discontinued operations, basic and diluted | 0 | (41,261) |
Net income (loss) attributable to WPCS common shareholders, basic and diluted | $ 557,181 | $ (4,182,004) |
Denominator: | ||
Weighted average shares outstanding - basic (in shares) | 2,701,404 | 1,470,248 |
Stock options | 160,524 | 0 |
Series H and H-1 convertible preferred stock | 1,075,700 | 0 |
Less: unvested issued restricted stock | (219,769) | 0 |
Weighted average shares outstanding - diluted (in shares) | 3,937,628 | 1,470,248 |
Basic income (loss) from continuing operations per common share | $ 0.21 | $ (2.86) |
Basic income from discontinued operations per common share | 0 | 0.02 |
Basic income (loss) per common share | 0.21 | (2.84) |
Diluted income (loss) from continuing operations per common share | 0.14 | (2.86) |
Diluted income from discontinued operations per common share | 0 | 0.02 |
Diluted income (loss) per common share | $ 0.14 | $ (2.84) |
BASIC AND DILUTED NET INCOME 29
BASIC AND DILUTED NET INCOME (LOSS) PER COMMON SHARE (Details 1) - shares | 3 Months Ended | |
Jul. 31, 2016 | Jul. 31, 2015 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 219,769 | 0 |
Common stock options [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 865,000 | 41,000 |
Make-whole on preferred shares [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 56,000 |
Common stock purchase warrants [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 1,295,000 | 1,295,000 |
Series F and F1 Preferred Stock [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 84,000 |
Series G and G1 Preferred Stock [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 118,000 |
Series H and H1 Preferred Stock [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 1,248,000 |
COSTS AND ESTIMATED EARNINGS 30
COSTS AND ESTIMATED EARNINGS ON UNCOMPLETED CONTRACTS (Details) - USD ($) | Jul. 31, 2016 | Apr. 30, 2016 |
Costs incurred on uncompleted contracts | $ 30,127,451 | $ 28,884,776 |
Estimated contract earnings | 4,663,183 | 4,367,463 |
Gross Total | 34,790,634 | 33,252,239 |
Less: Billings to date | 36,254,744 | 34,253,318 |
Total | (1,464,110) | (1,001,079) |
Costs and estimated earnings in excess of billings on uncompleted contracts | 437,185 | 357,210 |
Billings in excess of cost and estimated earnings on uncompleted contracts | 1,901,295 | 1,358,289 |
Total | $ (1,464,110) | $ (1,001,079) |
DISCONTINUED OPERATIONS (Detail
DISCONTINUED OPERATIONS (Details) - USD ($) | 3 Months Ended | |
Jul. 31, 2016 | Jul. 31, 2015 | |
Revenue | $ 0 | $ 839,969 |
Costs and expenses: | ||
Cost of revenue | 0 | 546,296 |
Selling, general and administrative expenses | 0 | 111,324 |
Depreciation and amortization | 0 | 80,971 |
Disposal Group, Including Discontinued Operation, Operating Expense | 0 | 738,591 |
Operating income (loss) from discontinued operations | 0 | 101,378 |
Interest expense | 0 | 49,234 |
Income (loss) from discontinued operations before income tax provision | 0 | 52,144 |
Income tax provision | 0 | 10,883 |
Total income from discontinued operations | $ 0 | $ 41,261 |
DISCONTINUED OPERATIONS (Deta32
DISCONTINUED OPERATIONS (Details Textual) - USD ($) | 3 Months Ended | ||
Jul. 31, 2016 | Jul. 31, 2015 | Apr. 30, 2016 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Disposal Group, Including Discontinued Operation, Revenue | $ 0 | $ 839,969 | |
China Operations [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Disposal Group, Including Discontinued Operation, Accrued Liabilities, Current | 0 | $ 0 | |
Disposal Group, Including Discontinued Operation, Revenue | $ 0 | $ 212,000 |
INCOME FROM SECTION 16 SETTLE33
INCOME FROM SECTION 16 SETTLEMENT (Details Textual) | 3 Months Ended |
Jul. 31, 2015USD ($) | |
Income From Section Sixteen Settlements [Line Items] | |
Proceeds from Legal Settlements | $ 400,000 |
BANK LINE OF CREDIT (Details Te
BANK LINE OF CREDIT (Details Textual) | 1 Months Ended |
May 20, 2015USD ($) | |
Line of Credit Facility [Line Items] | |
Line of Credit Facility, Expiration Date | Aug. 15, 2017 |
Revolving Credit Facility [Member] | |
Line of Credit Facility [Line Items] | |
Proceeds from Lines of Credit | $ 1,000,000 |
Line of Credit Facility, Initiation Date | May 20, 2015 |
Line of Credit Facility, Interest Rate During Period | 2.00% |
LOANS PAYABLE (Details Textual)
LOANS PAYABLE (Details Textual) - USD ($) | Jul. 31, 2016 | Apr. 30, 2016 |
Debt Disclosure [Line Items] | ||
Loans Payable, Total | $ 170,000 | $ 149,000 |
Loans Payable, Current, Total | 60,848 | 53,996 |
Loans Payable, Noncurrent, Total | $ 108,833 | $ 94,825 |
Minimum [Member] | Loans Payable [Member] | ||
Debt Disclosure [Line Items] | ||
Debt Instrument, Interest Rate, Effective Percentage | 3.89% | |
Maximum [Member] | Loans Payable [Member] | ||
Debt Disclosure [Line Items] | ||
Debt Instrument, Interest Rate, Effective Percentage | 4.89% |
STOCKHOLDERS' EQUITY (Details T
STOCKHOLDERS' EQUITY (Details Textual) - USD ($) | 3 Months Ended | ||
Jul. 31, 2016 | Jul. 31, 2015 | Aug. 01, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-Based Compensation | $ 22,501 | ||
Common Stock, Capital Shares Reserved for Future Issuance | 7,500 | ||
Stock Issued During Period, Shares, Conversion of Units | 15,104 | ||
Stock Issued During Period, Shares, New Issues | 63,073 |
INCOME FROM ARBITRATION SETTL37
INCOME FROM ARBITRATION SETTLEMENT (Details Textual) - USD ($) | 1 Months Ended | 3 Months Ended |
Jun. 16, 2016 | Jul. 31, 2015 | |
Proceeds from Legal Settlements | $ 400,000 | |
Cooper Medical School [Member] | ||
Proceeds from Legal Settlements | $ 1,150,000 |
SUBSEQUENT EVENTS (Details Text
SUBSEQUENT EVENTS (Details Textual) - Subsequent Event [Member] - USD ($) | Oct. 08, 2016 | Aug. 04, 2016 | Oct. 31, 2016 | Aug. 08, 2016 |
Subsequent Event [Line Items] | ||||
Accounts Payable, Current | $ 232,000 | |||
Payments to Suppliers | $ 125,000 | |||
Trading Gain (Loss) | $ 107,000 | |||
Common Stock [Member] | ||||
Subsequent Event [Line Items] | ||||
Convertible Preferred Stock, Shares Issued upon Conversion | 142,500 | |||
Series H Preferred Stock [Member] | ||||
Subsequent Event [Line Items] | ||||
Conversion of Stock, Shares Converted | 1,425 |