Ayro (AYRO) 10-Q 12 Sep 16 2017 Q1 Quarterly report Financial data

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