Ayro (AYRO) 10-Q/A 19 Jun 19 2018 Q2 Quarterly report (amended) Financial data

Document And Entity Information

Document And Entity Information - shares	6 Months Ended
	Jun. 30, 2018	Aug. 09, 2018
Document And Entity Information [Abstract]
Document Type	10-Q/A
Amendment Flag	true
Amendment Description	We are filing this Amendment No. 1 to the Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2018 (“Form 10-Q/A”), which was filed with the United States Securities and Exchange Commission (“SEC”) on August 14, 2018 (the “Original Filing”), to reflect restatements of the Consolidated Balance Sheet at June 30, 2018, the Consolidated Statement of Operations for the six months ended June 30, 2018, Consolidated Statement of Changes in Shareholders’ Equity (Deficit), and Consolidated Statement of Cash Flows for the six months ended June 30, 2018, and the related notes thereto.
Document Period End Date	Jun. 30, 2018
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q2
Entity Registrant Name	DropCar, Inc.
Entity Central Index Key	0001086745
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Current Reporting Status	Yes
Entity Emerging Growth Company	false
Entity Small Business	true
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		1,358,625

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Jun. 30, 2018	Dec. 31, 2017
CURRENT ASSETS:
Cash	$ 2,212,109	$ 372,011
Accounts receivable, net	290,448	187,659
Prepaid expenses and other current assets	558,222	51,532
Current assets of discontinued operations	5,671,021	0
Total current assets	8,731,801	611,202
Property and equipment, net	45,256	5,981
Capitalized software costs, net	638,151	589,584
Other assets	0	3,000
Noncurrent assets of discontinued operations	5,460,320	0
TOTAL ASSETS	14,875,528	1,209,767
CURRENT LIABILITIES:
Accounts payable and accrued expenses	1,740,883	1,820,731
Deferred income	222,525	236,433
Accrued interest	0	135,715
Current liabilities of discontinued operations	3,640,507	0
Total current liabilities	5,603,915	2,192,879
Noncurrent liabilities of discontinued operations	81,618	0
Convertible note payable, net of debt discount	0	3,506,502
TOTAL LIABILITIES	5,685,533	5,699,381
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY (DEFICIT):
Common stock, $0.0001 par value; 100,000,000 shares authorized, 1,358,625 and 374,285 issued and outstanding as of June 30, 2018 and December 31, 2017, respectively	136	37
Additional paid in capital	27,584,599	5,115,158
Accumulated deficit	(18,394,743)	(9,604,897)
TOTAL STOCKHOLDERS' EQUITY (DEFICIT)	9,189,995	(4,489,614)
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)	14,875,528	1,209,767
Series Seed Preferred Stock [Member]
STOCKHOLDERS' EQUITY (DEFICIT):
Preferred stock	0	27
Series A Preferred Stock [Member]
STOCKHOLDERS' EQUITY (DEFICIT):
Preferred stock	0	61
Series H Preferred Stock [Member]
STOCKHOLDERS' EQUITY (DEFICIT):
Preferred stock	0	0
Series H-1 Preferred Stock [Member]
STOCKHOLDERS' EQUITY (DEFICIT):
Preferred stock	0	0
Series H-2 Preferred Stock [Member]
STOCKHOLDERS' EQUITY (DEFICIT):
Preferred stock	0	0
Series H-3 Preferred Stock [Member]
STOCKHOLDERS' EQUITY (DEFICIT):
Preferred stock	0	0
Series H-4 Preferred Stock [Member]
STOCKHOLDERS' EQUITY (DEFICIT):
Preferred stock	$ 3	$ 0

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2018	Dec. 31, 2017
Preferred stock, par value	$ 0.0001	$ .0001
Preferred stock, shares authorized	5,000,000	5,000,000
Common stock, par value	$ 0.0001	$ .0001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	1,358,624	347,285
Common stock, shares outstanding	1,358,624	347,285
Series Seed Preferred Stock [Member]
Preferred stock, shares authorized	275,691	275,691
Preferred stock, shares issued	0	275,691
Preferred stock, shares outstanding	0	275,691
Series A Preferred Stock [Member]
Preferred stock, shares authorized	642,728	642,728
Preferred stock, shares issued	0	611,944
Preferred stock, shares outstanding	0	611,944
Series H Preferred Stock [Member]
Preferred stock, shares authorized	8,500	8,500
Preferred stock, shares issued	8	0
Preferred stock, shares outstanding	8	0
Series H-1 Preferred Stock [Member]
Preferred stock, shares authorized	9,488	9,488
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Series H-2 Preferred Stock [Member]
Preferred stock, shares authorized	3,500	3,500
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Series H-3 Preferred Stock [Member]
Preferred stock, shares authorized	8,461	8,461
Preferred stock, shares issued	2,189	0
Preferred stock, shares outstanding	2,189	0
Series H-4 Preferred Stock [Member]
Preferred stock, shares authorized	30,000	30,000
Preferred stock, shares issued	26,843	0
Preferred stock, shares outstanding	26,843	0

Consolidated Statement of Opera

Consolidated Statement of Operations - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Income Statement [Abstract]
SERVICE REVENUES	$ 1,873,997	$ 889,295	$ 3,566,072	$ 1,527,853
COST OF REVENUE	2,528,781	953,907	4,824,562	1,443,121
GROSS PROFIT (LOSS)	(654,784)	(64,612)	(1,258,490)	84,732
OPERATING EXPENSES
Research and development expenses	63,971	0	178,132	0
Selling, general and administrative expenses	3,341,601	1,354,906	6,252,398	1,851,017
Depreciation and amortization	84,177	45,487	163,409	90,827
TOTAL OPERATING EXPENSES	3,489,749	1,400,393	6,593,939	1,941,844
OPERATING LOSS	(4,144,533)	(1,465,005)	(7,852,429)	(1,857,112)
Interest income (expense), net	718	(328,393)	(1,081,499)	(328,393)
LOSS FROM CONTINUING OPERATIONS	(4,143,815)	(1,793,398)	(8,933,928)	(2,185,505)
INCOME FROM DISCONTINUED OPERATIONS	151,565	0	460,943	0
NET LOSS	(3,992,250)	(1,793,398)	(8,472,985)	(2,185,505)
Deemed dividend on exchange of warrants	(316,861)	0	(316,861)	0
NET LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS	$ (4,309,111)	$ (1,793,398)	$ (8,789,846)	$ (2,185,505)
LOSS PER SHARE FROM CONTINUING OPERATIONS:
Basic	$ (3.12)	$ (6.08)	$ (7.65)	$ (7.70)
Diluted	(3.12)	(6.08)	(7.65)	(7.70)
EARNINGS PER SHARE FROM DISCONTINUED OPERATIONS:
Basic	0.11	.00	0.39	.00
Diluted	0.11	.00	0.39	.00
NET LOSS PER SHARE:
Basic	(3.24)	(6.08)	(7.53)	(7.70)
Diluted	$ (3.24)	$ (6.08)	$ (7.53)	$ (7.70)
WEIGHTED AVERAGE SHARES OUTSTANDING
Basic	1,328,654	294,973	1,167,432	283,909
Diluted	1,328,654	294,973	1,167,432	283,909

Consolidated Statement of Chang

Consolidated Statement of Changes in Stockholders' Equity (Deficit) - USD ($)	Series Seed Preferred Stock [Member]	Series A Preferred Stock [Member]	Series H Preferred Stock [Member]	Series H-3 Preferred Stock [Member]	Series H-4 Preferred Stock [Member]	Common Stock [Member]	Subscription Receivable [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Total
Beginning balance, shares at Dec. 31, 2016	275,691	530,065				272,720
Beginning balance, amount at Dec. 31, 2016	$ 27	$ 53				$ 27	$ (69,960)	$ 2,117,237	$ (1,964,091)	$ 83,293
Issuance of Series A Preferred Stock, shares		73,845
Issuance of Series A Preferred Stock, amount		$ 7					69,960	150,001		219,968
Issuance of Series A Preferred stock for services, shares		8,034
Issuance of Series A Preferred stock for services, amount		$ 1						24,999		25,000
Fair value of warrants issued with convertible notes								987,158		987,158
Issuance of common stock to officers, shares						101,565
Issuance of common stock to officers, amount						$ 10		255,782		255,792
Stock based compensation								137,900		137,900
Net loss									(2,185,505)	(2,185,505)
Ending balance, shares at Jun. 30, 2017	275,691	611,944	0	0	0	374,285
Ending balance, amount at Jun. 30, 2017	$ 27	$ 61	$ 0	$ 0	$ 0	$ 37	0	3,673,077	(4,149,596)	(476,394)
Beginning balance, shares at Dec. 31, 2017	275,691	611,944	0	0	0	374,285
Beginning balance, amount at Dec. 31, 2017	$ 27	$ 61	$ 0	$ 0	$ 0	$ 37	0	5,115,158	(9,604,897)	(4,489,614)
Issuance of common stock for cash, shares						10,057
Issuance of common stock for cash, amount						$ 1		299,999		300,000
Conversion of debt into common stock, shares						136,785
Conversion of debt into common stock, amount						$ 14		3,682,488		3,682,502
Conversion of accrued interest into common stock, shares						4,518
Conversion of accrued interest into common stock, amount								159,584		159,584
Interest on lock-up shares in relation to convertible debt, shares						85,571
Interest on lock-up shares in relation to convertible debt, amount						$ 9		672,135		672,144
Exchange of shares in connection with Merger, shares						490,422
Exchange of shares in connection with Merger, amount						$ 49		9,792,174		9,792,223
Conversion of outstanding Preferred Stock in connection with merger, shares	(275,691)	(611,944)				147,939
Conversion of outstanding Preferred Stock in connection with merger, amount	$ (27)	$ (64)				$ 15		73		0
Issuance of Series H preferred stock in connection with merger, shares			8
Issuance of Series H preferred stock in connection with merger, amount										0
Issuance of Series H-3 preferred stock in connection with merger, shares				2,189
Issuance of Series H-3 preferred stock in connection with merger, amount										0
Issuance of Series H-4 preferred stock and warrants in private placement, net of costs, shares					25,472
Issuance of Series H-4 preferred stock and warrants in private placement, net of costs, amount					$ 3			5,898,336		5,898,339
Stock based compensation for options issued to employees								84,516		84,516
Stock based compensation for restricted stock units issued to employees								1,084,336		1,084,336
Stock based compensation for common stock issued to service provider, shares						60,262
Stock based compensation for common stock issued to service provider, amount						$ 6		478,944		478,950
Series H-4 preferred stock and warrants issued to service provider, shares					1,371
Series H-4 preferred stock and warrants issued to service provider, amount										0
Deemed dividend on exchange of merger warrants to Series I warrants and common stock, shares						48,786
Deemed dividend on exchange of merger warrants to Series I warrants and common stock, amount						$ 5		316,856	(316,861)	0
Net loss									(8,472,985)	(8,472,985)
Ending balance, shares at Jun. 30, 2018	0	0	8	2,189	26,843	1,358,625
Ending balance, amount at Jun. 30, 2018	$ 0	$ 0	$ 0	$ 0	$ 3	$ 136	$ 0	$ 27,584,599	$ (18,394,743)	$ 9,189,995

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$ (8,472,985)	$ (2,185,505)
Income from discontinued operations	(460,943)	0
Loss from continuing operations	(8,933,928)	(2,185,505)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	163,409	90,827
Amortization of debt discount	176,000	296,860
Stock based compensation	1,647,802	418,692
Non-cash interest expense	696,013	0
Changes in operating assets and liabilities:
Accounts receivable	(102,789)	(123,330)
Prepaid expenses and other assets	(503,690)	2,270
Accounts payable and accrued expenses	(79,850)	(27,798)
Accrued interest	0	31,667
Deferred revenue	(13,908)	122,689
NET CASH USED IN OPERATING ACTIVITIES - CONTINUING OPERATIONS	(6,950,941)	(1,373,628)
NET CASH PROVIDED BY OPERATING ACTIVITIES - DISCONTINUED OPERATIONS	(1,131,108)	0
NET CASH USED IN OPERATING ACTIVITIES	(8,082,049)	(1,373,628)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property and equipment	(43,108)	(6,600)
Capitalization of software costs	(208,143)	(111,184)
NET CASH USED IN INVESTING ACTIVITIES - CONTINUING OPERATIONS	(251,251)	(117,784)
NET CASH PROVIDED BY INVESTING ACTIVITIES - DISCONTINUED OPERATIONS	3,997,483	0
NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES	3,746,232	(117,784)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from the sale of common stock	300,000	0
Proceeds from the sale of Series H-4 preferred stock	6,000,000	0
Financing costs from the sale of Series H-4 preferred stock and warrants	(101,661)	0
Proceeds from issuance of Series A Preferred Stock and subscription receivable	0	219,968
Proceeds from issuance of convertible notes and warrants	0	2,240,000
Offering costs - Convertible Notes	0	(208,200)
NET CASH PROVIDED BY FINANCING ACTIVITIES - CONTINUING OPERATIONS	6,198,339	2,251,768
NET CASH USED IN FINANCING ACTIVITIES - DISCONTINUED OPERATIONS	(22,424)	0
NET CASH PROVIDED BY FINANCING ACTIVITIES	6,175,915	2,251,768
Net increase in cash	1,840,098	760,356
Cash, beginning of period	372,011	51,366
Cash, end of period	2,212,109	811,722
NON-CASH FINANCING ACTIVITIES:
Fair value of stock warrants issued with convertible notes	0	978,158
Fair value of common stock sold to founders	0	137,900
Stock issued to WPCS Shareholder in the merger net of cash received of $4,947,023	4,845,200	0
Series H-4 offering cost paid in H-4 shares and warrants	568,468	0
Stock issued for convertible note payable	3,682,502	0
Stock issued for accrued interest on convertible note payable	$ 159,584	$ 0

Consolidated Statements of Ca_2

Consolidated Statements of Cash Flows (Parenthetical)	6 Months Ended
	Jun. 30, 2018USD ($)
Statement of Cash Flows [Abstract]
Cash acquired from acquisition	$ 4,947,023

The Company

The Company	6 Months Ended
	Jun. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
The Company	Reverse Merger and Exchange Ratio On January 30, 2018, DC Acquisition Corporation (“Merger Sub”), a wholly-owned subsidiary of WPCS International Incorporated (“WPCS”), completed its merger with and into DropCar, Inc. (“Private DropCar”), with Private DropCar surviving as a wholly owned subsidiary of WPCS. This transaction is referred to as the “Reverse Merger.” The Reverse Merger was effected pursuant to an Agreement and Plan of Merger and Reorganization (the “Merger Agreement”), dated September 6, 2017, by and among WPCS, Private DropCar and Merger Sub. As a result of the Reverse Merger, each outstanding share of Private DropCar share capital (including shares of Private DropCar share capital issued upon the conversion of outstanding convertible debt) automatically converted into the right to receive approximately 0.3273 shares of WPCS’s common stock, par value $0.0001 per share (the “Exchange Ratio”). Following the closing of the Reverse Merger, holders of WPCS’s common stock immediately prior to the Reverse Merger owned approximately 22.9% on a fully diluted basis, and holders of Private DropCar common stock immediately prior to the Reverse Merger owned approximately 77.1% on a fully diluted basis, of WPCS’s common stock. The Reverse Merger has been accounted for as a reverse acquisition under the acquisition method of accounting where Private DropCar is considered the accounting acquirer and WPCS is the acquired company for financial reporting purposes. Private DropCar was determined to be the accounting acquirer based on the terms of the Merger Agreement and other factors, such as relative voting rights and the composition of the combined company’s board of directors and senior management, which was deemed to have control. The pre-acquisition financial statements of Private DropCar became the historical financial statements of WPCS following the Reverse Merger. The historical financial statements, outstanding shares and all other historical share information have been adjusted by multiplying the respective share amount by the Exchange Ratio as if the Exchange Ratio had been in effect for all periods presented. Immediately following the Reverse Merger, the combined company changed its name from WPCS International Incorporation to DropCar, Inc. The combined company following the Reverse Merger may be referred to herein as “the combined company,” “DropCar,” or the “Company.” The Company’s shares of common stock listed on The Nasdaq Capital Market, previously trading through the close of business on January 30, 2018 under the ticker symbol “WPCS,” commenced trading on The Nasdaq Capital Market, on a post-Reverse Stock Split adjusted basis, under the ticker symbol “DCAR” on January 31, 2018. Discontinued Operations On December 24, 2018, the Company completed the sale of WPCS International – Suisun City, Inc., a California corporation (the “Suisun City Operations”), its wholly-owned subsidiary, pursuant to the terms of a stock purchase agreement, dated December 10, 2018 (the “Purchase Agreement”) by and between the Company and World Professional Cabling Systems, LLC, a California limited liability company (the “Purchaser”). Upon the closing of the sale, the Purchaser acquired all of the issued and outstanding shares of common stock, no par value per share, of Suisun City Operations, for an aggregate purchase price of $3,500,000. The sale of Suisun City Operations represented a strategic shift that has had a major effect on the Company’s operations, and therefore, is presented as discontinued operations in the 2018 consolidated statement of operations. The 2017 statement of operations is not recast as the business was not owned by DropCar at that time. Reverse Stock Split On March 8, 2019, the Company filed a certificate of amendment to its amended and restated certificate of incorporation with the Secretary of State of the State of Delaware to affect a one-for-six reverse stock split of its outstanding shares of common stock. Proportional adjustments for the reverse stock split were made retroactively to the Company's shares of common stock, outstanding stock options, warrants and equity incentive plans for all periods presented. Acquisition Accounting The fair value of WPCS assets acquired and liabilities assumed was based upon management’s estimates assisted by an independent third-party valuation firm. The assumptions are subject to change within the measurement period up to one year from date of acquisition. Critical estimates in valuing certain intangible assets include, but are not limited to, future expected cash flows from customer relationships and the trade name, present value and discount rates. Management’s estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable and, as a result, actual results may differ from estimates. The purchase price allocation of $9.8 million was as follows: Fair value of equity consideration 506,423 WPCS common shares $ 9,792,000 Liability assumed: notes payable 158,000 Total purchase price consideration $ 9,950,000 Tangible assets Net working capital (1) $ 6,664,000 Deferred revenue (2,300,000 ) Fixed assets & equipment 376,000 Intangible assets (2) Customer contracts 1,200,000 Trade name 600,000 Goodwill 3,410,000 Total allocation of purchase price consideration $ 9,950,000 (1) Net working capital consists of cash of $4,947,000; accounts receivable and contract assets of $3,934,000; other assets of $317,000; and accounts payable and accrued liabilities of $2,534,000. (2) The useful lives related to the acquired customer relationships and trade name are expected to be approximately 10 years. Unaudited Interim Consolidated Financial Information The accompanying consolidated balance sheets as of June 30, 2018, the consolidated statements of operations for the three and six months ended June 30, 2018 and 2017, the consolidated statements of cash flows for the six months ended June 30, 2018 and 2017, and the consolidated statement of stockholders’ equity (deficit) for the six months ended June 30, 2018 and 2017 are unaudited. These financial statements should be read in conjunction with the DropCar, Inc’s. 2017 financial statements included in the Company’s Form 8-K/A filed on April 2, 2018. The unaudited interim consolidated financial statements have been prepared on the same basis as the audited annual financial statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary for the fair statement of the Company’s financial position as of June 30, 2018 and December 31, 2017 and the results of its operations for the three and six months ended June 30, 2018 and 2017, and its cash flows for the six months ended June 30, 2018 and 2017. The financial data and other information disclosed in the notes to the consolidated financial statements related to the six months ended June 30, 2018 and 2017 are unaudited. DropCar Operating DropCar Operating is a provider of automotive vehicle support, fleet logistics, and concierge services for both consumers and the automotive industry. Its cloud-based Enterprise Vehicle Assistance and Logistics (“VAL”) platform and mobile application (“app”) assists consumers and automotive-related companies to reduce the costs, hassles and inefficiencies of owning a car, or fleet of cars, in urban centers. As further discussed in Note 10 “Subsequent Events”, in July 2018, DropCar Operating launched its Mobility Cloud platform which provides automotive-related businesses with a 100% self-serve SaaS version of its VAL platform to manage their own operations and drivers, as well as customer relationship management (“CRM”) tools that enable their clients to schedule and track their vehicles for service pickup and delivery. DropCar Operating’s Mobility Cloud also provides access to private APIs (application programming interface) which automotive-businesses can use to integrate DropCar Operating’s logistics and field support directly into their own applications and processes natively, to create more seamless client experiences. On the enterprise side, OEMs, dealers, and other service providers in the automotive space are increasingly being challenged with consumers who have limited time to bring in their vehicles for maintenance and service, making it difficult to retain valuable post-sale service contracts or scheduled consumer maintenance and service appointments. Additionally, many of the vehicle support centers for automotive providers (i.e., dealerships, including body work and diagnostic shops) have moved out of urban areas thus making it more challenging for OEMs and dealers in urban areas to provide convenient and efficient service for their consumer and business clientele. Similarly, shared mobility providers and other fleet managers, such as rental car companies, face a similar urban mobility challenge: getting cars to and from service bays, rebalancing vehicle availability to meet demand and getting vehicles from dealer lots to fleet locations. While DropCar Operating’s business-to-business (“B2B”) and business-to-consumer (“B2C”) services generate revenue and help meet the unmet demand for vehicle support services, DropCar Operating is also building-out a platform and customer base that it believes positions it well for developments in the automotive space when vehicle ownership becomes more subscription based with transportation services and concierge options well-suited to match a customer’s immediate needs. To date, the Company operates primarily in the New York metropolitan area. In May 2018, we expanded operations with our B2B business in San Francisco and in June 2018 we expanded operations with our B2B business in Washington DC, both new market expansions are with a major original equipment manufacturer (“OEM”) customer.

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2018
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Liquidity and Basis of Presentation The Company has a limited operating history and the sales and income potential of its business and market are unproven. As of June 30, 2018, the Company has an accumulated deficit of $18.4 million and has experienced net losses each year since its inception. The Company anticipates that it will continue to incur net losses into the foreseeable future and will need to raise additional capital to continue. The Company’s cash is not sufficient to fund its operations into the first quarter of 2019. These factors raise substantial doubt about the Company’s ability to continue as a going concern for the twelve months following the date of the filing of this Form 10-Q. Management’s plan includes raising funds from outside investors and, as further discussed in Note 10 “Subsequent Events”, through the potential sale of the assets of the Company’s subsidiary, WPCS International Suisan City, Inc. However, there is no assurance that outside funding will be available to the Company, outside funding will be obtained on favorable terms or will provide the Company with sufficient capital to meet its objectives. These financial statements do not include any adjustments relating to the recoverability and classification of assets, carrying amounts or the amount and classification of liabilities that may be required should the Company be unable to continue as a going concern. The accompanying unaudited consolidated financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Company’s Form 8-K/A filed with the SEC on April 2, 2018. The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information, the instructions for Form 10-Q and the rules and regulations of the SEC. Accordingly, since they are interim statements, the accompanying consolidated financial statements do not include all of the information and notes required by GAAP for annual financial statements, but reflect all adjustments consisting of normal, recurring adjustments, that are necessary for a fair presentation of the financial position, results of operations and cash flows for the interim periods presented. Interim results are not necessarily indicative of the results that may be expected for any future periods. The December 31, 2017 balance sheet information was derived from the audited financial statements as of that date. Restatement The Company, while undergoing the audit of its consolidated financial statements for the year ended December 31, 2018, commenced an evaluation of its accounting in connection with the Reverse Merger for (1) lock-up agreements entered into with the holders of the Notes (see Note 5), and (2) shares of common stock issued to Alpha Capital Anstalt and Palladium Capital Advisors (see Note 7, Service Based Common Stock). These agreements, which management originally deemed to be primarily equity in nature and would not be recognized as compensatory, were recorded as a debit and credit to additional paid in capital. On March 29, 2019, under the authority of the board of directors, the Company determined that these agreements should have been recorded as compensatory in nature which gives rise to an adjustment in the amount of $1,119,294 for the period ended June 30, 2018. The following tables sets forth the effects of the adjustments on affected items within the Company’s previously reported Consolidated Interim Balance Sheet at June 30, 2018, and includes a reclassification adjustment for the stock split of $679: June 30, 2018 As previously reported Adjustment As restated Additional paid in capital $ 26,464,626 $ 1,119,973 $ 27,584,599 Accumulated deficit $ (17,275,449 ) $ (1,119,294 ) $ (18,394,743 ) The following table sets forth the effects of the adjustments on affected items within the Company’s previously reported Consolidated Interim Statement of Operations for the six months ended June 30, 2018: Six Months Ended June 30, 2018 As previously reported Adjustment As restated Effect of Discontinued Operations As currently reported Selling, general and administrative expenses $ 6,923,599 $ 447,150 $ 7,370,749 $ (1,116,686 ) $ 6,254,063 Depreciation and amortization 304,687 - 304,687 $ (142,943 ) $ 161,744 Total operating expenses $ 7,406,418 $ 447,150 $ 7,853,568 $ (1,259,629 ) $ (6,593,939 ) Operating loss $ (6,943,738 ) $ (447,150 ) $ (7,390,888 ) $ (461,541 ) $ (7,852,429 ) Interest income (expense), net $ (409,953 ) $ (672,144 ) $ (1,082,097 ) $ 598 $ (1,081,499 ) Loss from continuing operations $ (7,353,691 ) $ (1,119,294 ) $ (8,472,985 ) $ (460,943 ) $ (8,933,928 ) Income from discontinued operations $ - $ - $ - $ 460,943 $ 460,943 Net loss $ (7,353,691 ) $ (1,119,294 ) $ (8,472,985 ) $ 460,943 $ (8,472,985 ) Net loss attributable to common shareholders $ (7,670,552 ) $ (1,119,294 ) $ (8,789,846 ) $ - $ (8,789,846 ) Net loss per common shares, basic and diluted $ (6.57 ) $ (7.53 ) $ (7.53 ) The following table sets forth the effects of the adjustments on affected items within the Company’s previously reported Consolidated Interim Statement of Cash Flows for the six months ended June 30, 2018: Six Months Ended June 30, 2018 As previously reported Adjustment As restated Net loss $(7,353,691) $(1,119,294) $(8,472,985) Stock based compensation $1,200,652 $447,150 $1,647,802 Non-cash interest expense $23,869 $672,144 $696,013 Use of Estimates The preparation of consolidated financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Principles of Consolidation The unaudited consolidated financial statements represent the consolidation of the accounts of the Company and its subsidiaries in conformity with GAAP. All intercompany accounts and transactions have been eliminated in consolidation. Revenue Recognition The Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, codified as ASC 606: Revenue from Contracts with Customers, which provides a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers. The Company adopted ASC 606 effective January 1, 2018 using modified retrospective basis and the cumulative effect was immaterial to the financial statements. Revenue from contracts with customers is recognized when, or as, we satisfy our performance obligations by transferring the promised goods or services to the customers. A good or service is transferred to a customer when, or as, the customer obtains control of that good or service. A performance obligation may be satisfied over time or at a point in time. Revenue from a performance obligation satisfied over time is recognized by measuring our progress in satisfying the performance obligation in a manner that depicts the transfer of the goods or services to the customer. Revenue from a performance obligation satisfied at a point in time is recognized at the point in time that we determine the customer obtains control over the promised good or service. The amount of revenue recognized reflects the consideration we expect to be entitled to in exchange for those promised goods or services (i.e., the “transaction price”). In determining the transaction price, we consider multiple factors, including the effects of variable consideration. Variable consideration is included in the transaction price only to the extent it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainties with respect to the amount are resolved. In determining when to include variable consideration in the transaction price, we consider the range of possible outcomes, the predictive value of our past experiences, the time period of when uncertainties expect to be resolved and the amount of consideration that is susceptible to factors outside of our influence, such as the judgment and actions of third parties. DropCar Operating contracts are generally designed to provide cash fees to us on a monthly basis or an agreed upfront rate based upon demand services. The Company’s performance obligation is satisfied over time as the service is provided continuously throughout the service period. The Company recognizes revenue evenly over the service period using a time-based measure because the Company is providing a continuous service to the customer. Contracts with minimum performance guarantees or price concessions include variable consideration and are subject to the revenue constraint. The Company uses an expected value method to estimate variable consideration for minimum performance guarantees and price concessions. The Company has constrained revenue for expected price concessions during the period ending June 30, 2018. DropCar Operating We are a provider of automotive vehicle support, fleet logistics, and concierge services for both consumers and the automotive industry. Our cloud-based Enterprise Vehicle Assistance and Logistics (“VAL”) platform and mobile application (“app”) assists consumers and automotive-related companies reduce the costs, hassles and inefficiencies of owning a car, or fleet of cars, in urban centers. As further discussed in Note 10 “Subsequent Events”, we launched our Mobility Cloud platform which provides automotive-related businesses with a 100% self-serve SaaS version of its VAL platform to manage our own operations and drivers, as well as customer relationship management (“CRM”) tools that enable their clients to schedule and track their vehicles for service pickup and delivery. Our Mobility Cloud also provides access to private APIs (application programming interface) which automotive-businesses can use to integrate our logistics and field support directly into their own applications and processes natively, to create more seamless client experiences. On the enterprise side, OEMs, dealers, and other service providers in the automotive space are increasingly being challenged with consumers who have limited time to bring in their vehicles for maintenance and service, making it difficult to retain valuable post-sale service contracts or scheduled consumer maintenance and service appointments. Additionally, many of the vehicle support centers for automotive providers (i.e., dealerships, including body work and diagnostic shops) have moved out of urban areas thus making it more challenging for OEMs and dealers in urban areas to provide convenient and efficient service for their consumer and business clientele. Similarly, shared mobility providers and other fleet managers, such as rental car companies, face a similar urban mobility challenge: getting cars to and from service bays, rebalancing vehicle availability to meet demand and getting vehicles from dealer lots to fleet locations. While our business-to-business (“B2B”) and business-to-consumer (“B2C”) services generate revenue and help meet the unmet demand for vehicle support services, we are also building-out a platform and customer base that positions us well for developments in the automotive space where vehicle ownership becomes more subscription based with transportation services and concierge options well-suited to match a customer’s immediate needs. For example, certain car manufacturers are testing new services in which customers pay the manufacturer a flat fee per month to drive a number of different models for any length of time. The Company operates primarily in the New York metropolitan area. In May 2018, the Company started operations in its B2B business in San Francisco and in May 2018 in June 2018 in Washington DC with a major original equipment manufacturer (“OEM”) customer. Monthly Subscriptions During the second quarter DropCar Operating offered a selection of subscriptions and on-demand services which include parking, valet, and access to other services. The contract terms are on a month-to-month subscription contract with fixed monthly or contract term fees. These subscription services include a fixed number of round trip deliveries of the customer’s vehicle to a designated location. The Company allocates the purchase price among the performance obligations which results in deferring revenue until the service is utilized or the service period has expired. On Demand Valet and Parking Services During the second quarter, DropCar Operating offered its customers on demand services through its mobile application. The customer was billed at an hourly rate upon completion of the services. Revenue was recognized when the Company had satisfied all performance obligations which is upon completion of the service. DropCar 360 Services During the second quarter, DropCar Operating offered an additional service to its customers by offering to take the vehicle for inspection, maintenance, car washes or to fill up with gas. The customers were charged a fee in addition to the cost of the third-party services provided. Revenue was recognized when the Company had satisfied all performance obligations which is upon completion of the service. On Demand Business-To-Business DropCar Operating also has contracts with car dealerships and others in the automotive industry in moving their fleet of cars. Revenue is recognized at the point in time all performance obligations are satisfied which is when the Company provide the delivery service of the vehicles. Disaggregated Revenues The following table presents our revenues from contracts with customers disaggregated by revenue source. Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 DropCar Operating Subscription Services $ 1,282,962 $ 671,202 $ 2,639,555 $ 1,171,888 DropCar Operating Services On-Demand 591,035 218,093 926,517 355,965 DropCar Operating Revenue (1)(2) 1,873,997 889,295 3,566,072 1,527,853 (1) Represents revenues recognized by type of services. (2) All revenues are generated in the United States. Employee Stock-Based Compensation The Company recognizes all employee share-based compensation as a cost in the financial statements. Equity-classified awards principally related to stock options, restricted stock units (“RSUs”) and equity-based compensation, are measured at the grant date fair value of the award. The Company determines grant date fair value of stock option awards using the Black-Scholes option-pricing model. The fair value of RSUs are determined using the closing price of the Company’s common stock on the grant date. For service-based vesting grants, expense is recognized over the requisite service period based on the number of options or shares expected to ultimately vest. Forfeitures are estimated at the date of grant and revised when actual or expected forfeiture activity differs materially from original estimates. The Company has one equity incentive plan, the 2014 Equity Incentive Plan (the “Plan”). As of June 30, 2018, there were 5,127 shares reserved for future issuance under the Plan. Property and Equipment The Company accounts for property and equipment at cost less accumulated depreciation. The Company computes depreciation using the straight-line method over the estimated useful lives of the assets. The Company generally depreciates property and equipment over a period of three to seven years. Depreciation for property and equipment commences once they are ready for its intended use. Impairment of Long-Lived Assets Long-lived assets are primarily comprised of intangible assets, property and equipment, and capitalized software costs. The Company evaluates its Long-Lived Assets for impairment whenever events or changes in circumstances indicate the carrying value of an asset or group of assets may not be recoverable. If these circumstances exist, recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset group to future undiscounted net cash flows expected to be generated by the asset group. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. There were no impairments to long-lived assets for the periods ended June 30, 2018 and 2017. Income Taxes The Company provides for income taxes using the asset and liability approach. Deferred tax assets and liabilities are recorded based on the differences between the financial statement and tax bases of assets and liabilities and the tax rates in effect when these differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance if, based on the weight of available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. As of June 30, 2018, and December 31, 2017, the Company had a full valuation allowance against its deferred tax assets. The Tax Cuts and Jobs Act (the “Tax Act”), enacted on December 22, 2017, among other things, permanently lowered the statutory federal corporate tax rate from 35% to 21%, effective for tax years including or beginning January 1, 2018. Under the guidance of ASC 740, “Income Taxes” (“ASC 740”), the Company revalued its net deferred tax assets on the date of enactment based on the reduction in the overall future tax benefit expected to be realized at the lower tax rate implemented by the new legislation. Although in the normal course of business the Company is required to make estimates and assumptions for certain tax items which cannot be fully determined at period end, the Company did not identify items for which the income tax effects of the Tax Act have not been completed as of June 30, 2018 and, therefore, considers its accounting for the tax effects of the Tax Act on its deferred tax assets and liabilities to be complete as of June 30, 2018. Fair Value Measurements The Company accounts for financial instruments in accordance with ASC 820, “Fair Value Measurements and Disclosures” (“ASC 820”). ASC 820 establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under ASC 820 are described below: Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2 - Quoted prices in markets that are not active or financial instruments for which all significant inputs are observable, either directly or indirectly; and Level 3 - Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable. Financial instruments with carrying values approximating fair value include cash, accounts receivable, accounts payable and accrued expenses, deferred income, and accrued interest, due to their short-term nature. Earnings/Loss Per Share Basic earnings per share is computed by dividing net loss attributable to common shareholders (the numerator) by the weighted-average number of common shares outstanding (the denominator) for the period. Diluted earnings per share are computed by assuming that any dilutive convertible securities outstanding were converted, with related preferred stock dividend requirements and outstanding common shares adjusted accordingly. It also assumes that outstanding common shares were increased by shares issuable upon exercise of those stock options for which market price exceeds the exercise price, less shares which could have been purchased by us with the related proceeds. In periods of losses, diluted loss per share is computed on the same basis as basic loss per share as the inclusion of any other potential shares outstanding would be anti-dilutive. The following securities were excluded from weighted average diluted common shares outstanding because their inclusion would have been antidilutive. As of June 30, 2018 2017 Common stock equivalents: Common stock options 202,058 - Series A, H-1, H-3, H-4, I and Merger common stock purchase warrants 585,307 - Series H, H-3, and H-4 Convertible Preferred Stock 2,739,225 - Restricted shares (unvested) 244,643 - Convertible notes - 63,307 Series seed preferred stock - 275,691 Series A preferred stock - 611,944 Totals 3,771,233 950,942 Adoption of New Accounting Standards In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers. Under the new standard, revenue is recognized at the time a good or service is transferred to a customer for the amount of consideration for which the entity expects to be entitled for that specific good or service. Entities may use a full retrospective approach or on a prospective basis and report the cumulative effect as of the date of adoption. The Company adopted the new standard on January 1, 2018 using prospective basis and the cumulative effect was immaterial to the financial statements. The new standard also requires enhanced disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts. In July 2017, the FASB issued ASU No. 2017-11, Earnings Per Share (Topic 260); Distinguishing Liabilities from Equity (Topic 480); Derivatives and Hedging (Topic 815): (Part I) Accounting for Certain Financial Instruments with Down Round Features. These amendments simplify the accounting for certain financial instruments with down round features. The amendments require companies to disregard the down round feature when assessing whether the instrument is indexed to its own stock, for purposes of determining liability or equity classification. The adoption of this standard on January 1, 2018 did not have a material effect on the Company’s financial statements. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business. The new guidance dictates that, when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, it should be treated as an acquisition or disposal of an asset. The guidance was adopted as of January 1, 2018 and did not have a material effect on the Company’s financial statements. Recently Issued Accounting Standards From time to time, new accounting pronouncements are issued by the FASB or other standard setting bodies. Unless otherwise discussed, the Company believes that the impact of recently issued standards that are not yet effective will not have a material impact on its consolidated financial position or results of operations upon adoption. In February 2016, the FASB issued ASU No. 2016-02, amended and codified as Topic 842, Leases. The new standard establishes a right-of-use ("ROU") model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Either a prospective approved or a modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The Company is in the process of evaluating the impact of this guidance on its consolidated financial statements and related disclosures; however, based on the Company's current operating leases, it is expected to have a material impact on the Company's consolidated balance sheet by increasing assets and liabilities. In January 2017, the FASB issued Accounting Standards Update No. 2017-04 (ASU 2017-04), Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. ASU 2017-04 eliminates step two of the goodwill impairment test and specifies that goodwill impairment should be measured by comparing the fair value of a reporting unit with its carrying amount. Additionally, the amount of goodwill allocated to each reporting unit with a zero or negative carrying amount of net assets should be disclosed. ASU 2017-04 is effective for annual or interim goodwill impairment tests performed in fiscal years beginning after December 15, 2019; early adoption is permitted. The Company currently anticipates that the adoption of ASU 2017-04 will not have a material impact on its consolidated financial statements. In June 2018, the FASB issued ASU 2018-07, Compensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting, which simplifies the accounting for nonemployee share-based payment transactions. The amendments specify that Topic 718 applies to all share-based payment transactions in which a grantor acquires goods or services to be used or consumed in a grantor’s own operations by issuing share-based payment awards. The standard will be effective in the first quarter of 2020, although early adoption is permitted. The Company is currently evaluating the effect the adoption of this ASU will have on its consolidated financial statements.

Discontinued Operations and Dis

Discontinued Operations and Disposition of Operating Segment	6 Months Ended
	Jun. 30, 2018
Discontinued Operations and Disposal Groups [Abstract]
Discontinued Operations and Disposition of Operating Segment	On December 24, 2018, the Company completed the sale of WPCS International – Suisun City, Inc., a California corporation, its wholly-owned subsidiary, pursuant to the terms of a stock purchase agreement, dated December 10, 2018 by and between the Company and World Professional Cabling Systems, LLC, a California limited liability company. Upon the closing of the sale, the Purchaser acquired all of the issued and outstanding shares of common stock, no par value per share, of Suisun City Operations, for an aggregate purchase price of $3,500,000. The operations and cash flows of the Suisun City Operations are presented as discontinued operations. The operating results of the Suisun City Operations for the three and six months ended June 30, 2018 were as follows: For the Three Months Ended June 30, 2018 For the Six Months Ended June 30, 2018 Revenues $ 4,466,370 $ 7,648,849 Cost of revenues 3,601,403 5,927,679 Gross profit 864,967 1,721,170 Selling, general and administrative expenses 626,886 1,116,686 Depreciation and amortization 86,098 142,943 Total Operating Expenses 712,984 1,259,629 Operating income 151,983 461,541 Interest expense, net (418 ) (598 ) Net income from discontinued operations $ 151,565 $ 460,943

Capitalized Software

Capitalized Software	6 Months Ended
	Jun. 30, 2018
Capitalized Computer Software, Net [Abstract]
Capitalized Software	Capitalized software consists of the following as of June 30, 2018 and December 31, 2017: June 30, 2018 December 31, 2017 Software $ 1,112,526 $ 904,383 Accumulated amortization (474,375 ) (314,799 ) Total $ 638,151 $ 589,584 Amortization expense for the three months ended June 30, 2018 and 2017, was $81,392 and $45,487, respectively. Amortization expense for the six months ended June 30, 2018 and 2017 was $159,576 and $90,827, respectively.

Convertible Notes Payable

Convertible Notes Payable	6 Months Ended
	Jun. 30, 2018
Debt Disclosure [Abstract]
Convertible Notes Payable	During the year ended December 31, 2017, the Company issued convertible notes totaling $4,840,000 and warrants to acquire 146,358 shares of common stock at an exercise price of $59.04 per share in connection with the convertible notes (the “Notes”). The Notes all had a maturity date of one year from the date of issuance, and accrued interest at a rate of 6% per annum, compounded annually. The Notes were convertible at $35.40 per share and, including accrued interest, were converted into 136,785 shares of common stock in connection with the Reverse Merger. At June 30, 2018 and December 31, 2017, the aggregate carrying value of the Notes was $0 and $3,506,502, respectively. In connection with the Reverse Merger, the holders of the Notes entered into lock-up agreements pursuant to which they have agreed not to sell the 85,573 shares of common stock received in the Reverse Merger. The length of the lock-up period was up to 120 days. For the six months ended June 30, 2018, the Company recorded $672,144 as interest expense in relation to the lock-up agreements in the accompanying consolidated statement of operations.

Commitments

Commitments	6 Months Ended
	Jun. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
Commitments	Lease Agreements The Company has short term leases for office space in New York City that expire on August 31, 2018. For the three months ended June 30, 2018 and 2017, rent expense for the Company’s facilities was $45,000 and $9,000, respectively. For the six months ended June 30, 2018 and 2017, rent expense for the Company’s facilities was $74,000 and $18,000, respectively. Litigation The Company’s DropCar Operating segment is subject to various legal proceedings and claims, either asserted or unasserted, which arise in the ordinary course of business that it believes are incidental to the operation of its business. While the outcome of these claims cannot be predicted with certainty, management does not believe that the outcome of any of these legal matters will have a material adverse effect on its results of operations, financial positions or cash flows. In February 2018, DropCar was served an Amended Summons and Complaint in the Supreme Court of the City of New York, Bronx county originally served solely on an individual, a former DropCar customer, for injuries sustained by plaintiffs alleging such injuries were caused by either the customer, a DropCar valet operating the customer’s vehicle or an unknown driver operating customer’s vehicle. DropCar to date has cooperated with the NYC Police Department and no charges have been brought against any employee of DropCar. DropCar has referred the matter to its insurance carrier. On February 9, 2016, a DropCar employee was transporting a customer’s vehicle when the vehicle caught fire. On November 22, 2016, an insurance company (as subrogee of the vehicle’s owner) filed for indemnification and subrogation against the Company in the Supreme Court of the State of New York County of New York. Management believes that it is not responsible for the damage caused by the vehicle fire and that the fire was not due to any negligence on the part of the DropCar and that the resolution will not have a material outcome. Other As of December 31, 2017, the Company had accrued approximately $96,000 for the potential settlement of multiple employment disputes. During the six months ended June 30, 2018, approximately $44,000 of this amount was settled upon payment. An additional $30,000 was expensed and accrued for potential settlements during the three months ended June 30, 2018. As of June 30, 2018, approximately $82,000 remains accrued for the potential settlement of employment disputes. On March 23, 2018, DropCar was made aware of an audit being conducted by the New York State Department of Labor (“DOL”) regarding a claim filed by an employee. The DOL is investigating whether DropCar properly paid overtime for which DropCar has raised several defenses. In addition, the DOL is conducting its audit to determine whether the Company owes spread of hours pay (an hour’s pay for each day an employee worked or was scheduled for a period over ten hours in a day). If the DOL determines that monies are owed, the DOL will seek a backpay order, which management believes will not, either individually or in the aggregate, have a material adverse effect on DropCar’s business, consolidated financial position, results of operations or cash flows.

Stockholders' Equity

Stockholders' Equity	6 Months Ended
	Jun. 30, 2018
STOCKHOLDERS' EQUITY (DEFICIT):
Stockholders' Equity	Common Stock On January 18, 2018, the Company sold 10,057 shares of common stock for proceeds of $300,000. On January 30, 2018, the Company converted $3,682,502, the net carrying value of the principal balance of $4,840,000 convertible notes payable, into 136,785 shares of common stock just prior to the Reverse Merger. During the period ended June 30, 2018, the Company converted $159,584 of accrued interest related to the convertible notes into 4,518 shares of common stock. During the period ended June 30, 2018, the Company granted 3,333 shares of common stock to a service provider and recorded $31,800 as general and administrative expense in the Company’s consolidated statements of operations. Preferred Stock Series Seed On January 30, 2018, the Company converted 275,691 shares of Series Seed Preferred Stock into common stock in connection with the Reverse Merger. Series A On January 30, 2018, the Company converted 611,944 shares of Series A Preferred Stock into common stock in connection with the Reverse Merger. Series H Convertible On January 30, 2018, in accordance with the Merger the Company issued 8 shares of Series H Convertible Preferred Stock. Series H-1 and H-2 Convertible The Company has designated 9,458 Series H-1 Preferred Stock and designated 3,500 Series H-2 Preferred Stock, none of which are outstanding. Series H-3 Convertible On January 30, 2018, in accordance with the Merger the Company issued 2,189 shares of Series H-3 Convertible Preferred Stock. Series H-4 Convertible On March 8, 2018, the Company entered into a Securities Purchase Agreement (the “Securities Purchase Agreement”) with investors pursuant to which the Company issued to the Investors an aggregate of 25,472 shares of the Company’s newly designated Series H-4 Convertible Preferred Stock, par value $0.0001 per share (the “Series H-4 Shares”) convertible into 424,533 shares of common stock of the Company, and warrants to purchase 424,533 shares of common stock of the Company, with an exercise price of $15.60 per share, subject to adjustments (the “Warrants”). The purchase price per Series H-4 Share and warrant was $235.50, equal to (i) the closing price of the Common Stock on the Nasdaq Capital Market on March 7, 2018, plus $0.125 multiplied by (ii) 100. The aggregate purchase price for the Series H-4 Shares and Warrants was approximately $6.0 million. Subject to certain ownership limitations, the Warrants are immediately exercisable from the issuance date and are exercisable for a period of five years from the issuance date. On March 8, 2018, the Company filed the Certificate of Designations, Preferences and Rights of the Series H-4 Convertible Preferred Stock (the “Certificate of Designation”) with the Secretary of State of the State of Delaware, establishing and designating the rights, powers and preferences of the Series H-4 Convertible Preferred Stock (the “Series H-4 Stock”). The Company designated up to 30,000 shares of Series H-4 Stock and each share has a stated value of $235.50 (the “Stated Value”). Each share of Series H-4 Stock is convertible at any time at the option of the holder thereof, into a number of shares of Common Stock determined by dividing the Stated Value by the initial conversion price of $14.15 per share, subject to a 9.99% blocker provision. The Series H-4 Stock has the same dividend rights as the Common Stock, and no voting rights except as provided for in the Certificate of Designation or as otherwise required by law. In the event of any liquidation or dissolution of the Company, the Series H-4 Stock ranks senior to the Common Stock in the distribution of assets, to the extent legally available for distribution Stock Based Compensation Service Based Restricted Stock Units On February 28, 2018, the Company issued 244,643 restricted stock units (“RSUs”) to two members of management. The RSUs vest on the one-year anniversary from the grant date. The RSUs were valued using the fair market value of the Company’s closing stock price on the date of grant totaling $3,243,966 which is being amortized over the vesting period. At June 30, 2018, unamortized stock compensation for the RSUs was $2,159,630, which will be recognized over the next 8 months. Service Based Warrants On March 8, 2018, in connection with the financing discussed above, the Company issued 1,371 Series H-4 Shares and 22,850 common stock Warrants to a service provider. The Company valued these Warrants using the Black-Scholes option pricing model with the following inputs: exercise price of $15.60; fair market value of underlying stock of $13.20; expected term of 5 years; risk free rate of 2.63%; volatility of 120.63%; and dividend yield of 0%. For the six months ended June 30, 2018, the Company recorded the fair market value of the Series H-4 Shares and warrants as an increase and decrease to additional paid in capital in the amount of $568,648 as these services were provided in connection with the sale of the Series H-4 shares. Employee and Non-employee Stock Options The following table summarizes stock option activity during the six months ended June 30, 2018: Shares Underlying Options Weighted Average Exercise Price Weighted average Remaining Contractual Life (years) Aggregate Intrinsic Value Outstanding at December 31, 2017 - $ - - - Acquired in Reverse Merger 133,711 36.42 4.40 - Granted 68,347 12.24 9.76 - Outstanding at June 30, 2018 202,058 $ 25.74 8.49 - At June 30, 2018, unamortized stock compensation for stock options was $618,137, with a weighted-average recognition period of 2 years. Share Based Compensation Stock based compensation for RSUs and options issued to employees and non-employees was recorded as part of selling, general, and administrative expense for the three months ended June 30, 2018 and 2017 in the amount of $876,114 and $0, respectively. Stock based compensation for RSUs and options issued to employees and non-employees was recorded as part of selling, general, and administrative expense for the six months ended June 30, 2018 and 2017 in the amount of $1,200,652 and $418,692, respectively. On May 14, 2018, the Company approved of annual option grants to the Chairman of the Board and to each non-executive member of the Board. The Chairman shall receive an annual option grant to purchase shares of common stock equal to the intrinsic value of $30,000 and each non-executive member of the Board (other than the Chairman) shall receive an annual option grant to purchase shares of common stock equal to an intrinsic value of $20,000, each such grant to vest in equal quarterly installments over a one-year period. The option grants are subject to stockholder approval of an amendment to the Plan increasing the number of shares available for grant thereunder and will not be granted if the Company’s stockholders do not approve such an increase. The Company will fair value and record these board grants upon stockholder approval of an amendment to the Plan. Service Based Common Stock On January 30, 2018 the Company issued 213,707 and 35,558 shares of common stock to Alpha Capital Anstalt and Palladium Capital Advisors, respectively, in connection with the Reverse Merger. For the Alpha Capital Anstalt issuance, the Company recorded 90% of the issuance, or 192,336 common shares, as cost of capital raise and 10% of the issuance, or 21,371 common shares, as advisory services. The Reverse Merger costs in the amount of $1,510,722 was recorded as a reduction to additional paid in capital and the advisory service costs in the amount of $167,858 were recorded as general and administrative expense in the consolidated statement of operations. For the Palladium Capital Advisors issuance, the Company recorded $279,292 as general and administrative expense in the consolidated statement of operations. Stock option pricing model The fair value of the stock options granted during the three months ended June 30, 2018, was estimated at the date of grant using the Black-Scholes options pricing model with the following assumptions: Fair value of common stock $10.92-$13.26 Expected volatility 118.10% - 118.83% Dividend yield $0 Risk-free interest 2.87% - 3.00% Expected life (years) 5.33 Warrants On April 19, 2018, the Company entered into separate Warrant Exchange Agreements (the “Exchange Agreements”) with the holders (the “Merger Warrant Holders”) of existing warrants issued in the Reverse Merger (the “Merger Warrants”) to purchase shares of Common Stock, pursuant to which, on the closing date, the Merger Warrant Holders exchanged each Merger Warrant for 1/18 of a share of Common Stock and 1/12 of a warrant to purchase a share of Common Stock (collectively, the “Series I Warrants”). The Series I Warrants have an exercise price of $13.80 per share. In connection with the Exchange Agreements, the Company issued an aggregate of (i) 48,786 new shares of common stock and (ii) Series I Warrants to purchase an aggregate of 73,178 shares of common stock. The Company valued the (a) stock and warrants issued in the amount of $972,368, (b) the warrants retired in the amount of $655,507, and (c) recorded the difference as deemed dividend in the amount of $316,861. The warrants were valued using the Black-Scholes option-pricing model on the date of the exchange using the following assumptions: (a) fair value of common stock $10.32, (b) expected volatility of 103% and 110%, (c) dividend yield of $0, (d) risk-free interest rate of 2.76% and 2.94%, (e) expected life of 3 years and 4.13 years. A summary of the Company’s warrants to purchase common stock activity is as follows: Number of Warrants Weighted Average Exercise Price Outstanding, December 31, 2017 146,358 $ 59.04 Acquired, H-1 warrants 50,744 29.04 Acquired, H-3 warrants 14,001 33.12 Granted, H-4 warrants(1) 447,383 3.60 Granted, I warrants 73,178 13.80 Retired, Merger Warrants (146,357 ) 59.04 Outstanding, June 30, 2018 585,307 $ 16.98 (1) Excludes 1,342,150 H-4 warrants representing 150% coverage of H-4 warrants granted. The warrants expire through the years 2020-2024.

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2018
Subsequent Events [Abstract]
Subsequent Events	Consumer Services Product Offering Change In July 2018, DropCar Operating began assessing demand for a Self-Park Spaces monthly parking plan whereby consumers could designate specific garages for their vehicles to be stored at a base monthly rate, with 24/7 access for picking up and returning their vehicle directly, and the option to pay a la carte on a per hour basis for a driver to perform functions such as picking up and returning the vehicle to the client’s front door. This model aligns more directly with how the Company has structured the enterprise B2B side of its business, where every interaction with a vehicle on behalf of its drivers generates net new revenue. DropCar Operating has decided that the Self-Park Spaces plan combined with its on-demand valet service will be the only plans that it will offer consumers from September 1, 2018 onwards. Subscriber plans prior to this date will continue to receive service on a prorated basis. Additionally, the Company is scaling back its 360 Services for the Consumer portion of the market. As a result of this shift, in August 2018, the Company has begun to significantly streamline its field teams, operations and back office support tied to its pre-September 1, 2018 consumer subscription plans. Consulting Agreement, Related Party On July 11, 2018, the Company entered into a consulting agreement (the “Consulting Agreement”) with Ascentaur, LLC (“Ascentaur”). Sebastian Giordano is the Chief Executive Officer of Ascentaur, LLC. Mr. Giordano has served on the board of directors of the Company since February 2013 and served as the Company’s Interim Chief Executive Officer from August 2013 through April 2016 and as the Company’s Chief Executive Officer from April 2016 through January 2018. Pursuant to the terms of the Consulting Agreement, Ascentaur has agreed to provide advisory services with respect to the strategic development and growth of the Company, including advising the Company on market strategy and overall Company strategy, advising the Company on the sale of the Company’s WPCS International business segment, providing assistance to the Company in identifying and recruiting prospective employees, customers, business partners, investors and advisors that offer desirable administrative, financing, investment, technical, marketing and/or strategic expertise, and performing such other services pertaining to the Company’s business as the Company and Ascentaur may from time to time mutually agree. As consideration for its services under the Consulting Agreement, Ascentaur shall be entitled to receive (i) a fee of $10,000 per month for a period of nine months from the effective date of the Consulting Agreement, (ii) a lump sum fee of $90,000 upon the closing of the sale of the Company’s WPCS International business segment and (iii) reimbursement for reasonable and customary business expenses incurred in connection with Ascentaur’s performance under the Consulting Agreement. The term of the Consulting Agreement commenced on July 11, 2018 and will continue until April 9, 2019 or until terminated in accordance with the terms of the Consulting Agreement. Change in Bylaws Effective July 26, 2018, the Board of Directors (the “Board”) of the “Company amended and restated the Company’s Amended and Restated Bylaws (the “Bylaws”) by amending Section 4.06. As amended, Section 4.06 provides that the Chairman of the Board need not be an officer of the Company.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2018
Accounting Policies [Abstract]
Liquidity and Basis of Presentation	The Company has a limited operating history and the sales and income potential of its business and market are unproven. As of June 30, 2018, the Company has an accumulated deficit of $18.4 million and has experienced net losses each year since its inception. The Company anticipates that it will continue to incur net losses into the foreseeable future and will need to raise additional capital to continue. The Company’s cash is not sufficient to fund its operations into the first quarter of 2019. These factors raise substantial doubt about the Company’s ability to continue as a going concern for the twelve months following the date of the filing of this Form 10-Q. Management’s plan includes raising funds from outside investors and, as further discussed in Note 10 “Subsequent Events”, through the potential sale of the assets of the Company’s subsidiary, WPCS International Suisan City, Inc. However, there is no assurance that outside funding will be available to the Company, outside funding will be obtained on favorable terms or will provide the Company with sufficient capital to meet its objectives. These financial statements do not include any adjustments relating to the recoverability and classification of assets, carrying amounts or the amount and classification of liabilities that may be required should the Company be unable to continue as a going concern. The accompanying unaudited consolidated financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Company’s Form 8-K/A filed with the SEC on April 2, 2018. The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information, the instructions for Form 10-Q and the rules and regulations of the SEC. Accordingly, since they are interim statements, the accompanying consolidated financial statements do not include all of the information and notes required by GAAP for annual financial statements, but reflect all adjustments consisting of normal, recurring adjustments, that are necessary for a fair presentation of the financial position, results of operations and cash flows for the interim periods presented. Interim results are not necessarily indicative of the results that may be expected for any future periods. The December 31, 2017 balance sheet information was derived from the audited financial statements as of that date.
Restatement	The Company, while undergoing the audit of its consolidated financial statements for the year ended December 31, 2018, commenced an evaluation of its accounting in connection with the Reverse Merger for (1) lock-up agreements entered into with the holders of the Notes (see Note 5), and (2) shares of common stock issued to Alpha Capital Anstalt and Palladium Capital Advisors (see Note 7, Service Based Common Stock). These agreements, which management originally deemed to be primarily equity in nature and would not be recognized as compensatory, were recorded as a debit and credit to additional paid in capital. On March 29, 2019, under the authority of the board of directors, the Company determined that these agreements should have been recorded as compensatory in nature which gives rise to an adjustment in the amount of $1,119,294 for the period ended June 30, 2018. The following tables sets forth the effects of the adjustments on affected items within the Company’s previously reported Consolidated Interim Balance Sheet at June 30, 2018, and includes a reclassification adjustment for the stock split of $679: June 30, 2018 As previously reported Adjustment As restated Additional paid in capital $ 26,464,626 $ 1,119,973 $ 27,584,599 Accumulated deficit $ (17,275,449 ) $ (1,119,294 ) $ (18,394,743 ) The following table sets forth the effects of the adjustments on affected items within the Company’s previously reported Consolidated Interim Statement of Operations for the six months ended June 30, 2018: Six Months Ended June 30, 2018 As previously reported Adjustment As restated Effect of Discontinued Operations As currently reported Selling, general and administrative expenses $ 6,923,599 $ 447,150 $ 7,370,749 $ (1,116,686 ) $ 6,254,063 Depreciation and amortization 304,687 - 304,687 $ (142,943 ) $ 161,744 Total operating expenses $ 7,406,418 $ 447,150 $ 7,853,568 $ (1,259,629 ) $ (6,593,939 ) Operating loss $ (6,943,738 ) $ (447,150 ) $ (7,390,888 ) $ (461,541 ) $ (7,852,429 ) Interest income (expense), net $ (409,953 ) $ (672,144 ) $ (1,082,097 ) $ 598 $ (1,081,499 ) Loss from continuing operations $ (7,353,691 ) $ (1,119,294 ) $ (8,472,985 ) $ (460,943 ) $ (8,933,928 ) Income from discontinued operations $ - $ - $ - $ 460,943 $ 460,943 Net loss $ (7,353,691 ) $ (1,119,294 ) $ (8,472,985 ) $ 460,943 $ (8,472,985 ) Net loss attributable to common shareholders $ (7,670,552 ) $ (1,119,294 ) $ (8,789,846 ) $ - $ (8,789,846 ) Net loss per common shares, basic and diluted $ (6.57 ) $ (7.53 ) $ (7.53 ) The following table sets forth the effects of the adjustments on affected items within the Company’s previously reported Consolidated Interim Statement of Cash Flows for the six months ended June 30, 2018: Six Months Ended June 30, 2018 As previously reported Adjustment As restated Net loss $(7,353,691) $(1,119,294) $(8,472,985) Stock based compensation $1,200,652 $447,150 $1,647,802 Non-cash interest expense $23,869 $672,144 $696,013
Use of Estimates	The preparation of consolidated financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Principles of Consolidation	The unaudited consolidated financial statements represent the consolidation of the accounts of the Company and its subsidiaries in conformity with GAAP. All intercompany accounts and transactions have been eliminated in consolidation.
Revenue Recognition	The Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, codified as ASC 606: Revenue from Contracts with Customers, which provides a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers. The Company adopted ASC 606 effective January 1, 2018 using modified retrospective basis and the cumulative effect was immaterial to the financial statements. Revenue from contracts with customers is recognized when, or as, we satisfy our performance obligations by transferring the promised goods or services to the customers. A good or service is transferred to a customer when, or as, the customer obtains control of that good or service. A performance obligation may be satisfied over time or at a point in time. Revenue from a performance obligation satisfied over time is recognized by measuring our progress in satisfying the performance obligation in a manner that depicts the transfer of the goods or services to the customer. Revenue from a performance obligation satisfied at a point in time is recognized at the point in time that we determine the customer obtains control over the promised good or service. The amount of revenue recognized reflects the consideration we expect to be entitled to in exchange for those promised goods or services (i.e., the “transaction price”). In determining the transaction price, we consider multiple factors, including the effects of variable consideration. Variable consideration is included in the transaction price only to the extent it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainties with respect to the amount are resolved. In determining when to include variable consideration in the transaction price, we consider the range of possible outcomes, the predictive value of our past experiences, the time period of when uncertainties expect to be resolved and the amount of consideration that is susceptible to factors outside of our influence, such as the judgment and actions of third parties. DropCar Operating contracts are generally designed to provide cash fees to us on a monthly basis or an agreed upfront rate based upon demand services. The Company’s performance obligation is satisfied over time as the service is provided continuously throughout the service period. The Company recognizes revenue evenly over the service period using a time-based measure because the Company is providing a continuous service to the customer. Contracts with minimum performance guarantees or price concessions include variable consideration and are subject to the revenue constraint. The Company uses an expected value method to estimate variable consideration for minimum performance guarantees and price concessions. The Company has constrained revenue for expected price concessions during the period ending June 30, 2018. DropCar Operating We are a provider of automotive vehicle support, fleet logistics, and concierge services for both consumers and the automotive industry. Our cloud-based Enterprise Vehicle Assistance and Logistics (“VAL”) platform and mobile application (“app”) assists consumers and automotive-related companies reduce the costs, hassles and inefficiencies of owning a car, or fleet of cars, in urban centers. As further discussed in Note 10 “Subsequent Events”, we launched our Mobility Cloud platform which provides automotive-related businesses with a 100% self-serve SaaS version of its VAL platform to manage our own operations and drivers, as well as customer relationship management (“CRM”) tools that enable their clients to schedule and track their vehicles for service pickup and delivery. Our Mobility Cloud also provides access to private APIs (application programming interface) which automotive-businesses can use to integrate our logistics and field support directly into their own applications and processes natively, to create more seamless client experiences. On the enterprise side, OEMs, dealers, and other service providers in the automotive space are increasingly being challenged with consumers who have limited time to bring in their vehicles for maintenance and service, making it difficult to retain valuable post-sale service contracts or scheduled consumer maintenance and service appointments. Additionally, many of the vehicle support centers for automotive providers (i.e., dealerships, including body work and diagnostic shops) have moved out of urban areas thus making it more challenging for OEMs and dealers in urban areas to provide convenient and efficient service for their consumer and business clientele. Similarly, shared mobility providers and other fleet managers, such as rental car companies, face a similar urban mobility challenge: getting cars to and from service bays, rebalancing vehicle availability to meet demand and getting vehicles from dealer lots to fleet locations. While our business-to-business (“B2B”) and business-to-consumer (“B2C”) services generate revenue and help meet the unmet demand for vehicle support services, we are also building-out a platform and customer base that positions us well for developments in the automotive space where vehicle ownership becomes more subscription based with transportation services and concierge options well-suited to match a customer’s immediate needs. For example, certain car manufacturers are testing new services in which customers pay the manufacturer a flat fee per month to drive a number of different models for any length of time. The Company operates primarily in the New York metropolitan area. In May 2018, the Company started operations in its B2B business in San Francisco and in May 2018 in June 2018 in Washington DC with a major original equipment manufacturer (“OEM”) customer. Monthly Subscriptions During the second quarter DropCar Operating offered a selection of subscriptions and on-demand services which include parking, valet, and access to other services. The contract terms are on a month-to-month subscription contract with fixed monthly or contract term fees. These subscription services include a fixed number of round trip deliveries of the customer’s vehicle to a designated location. The Company allocates the purchase price among the performance obligations which results in deferring revenue until the service is utilized or the service period has expired. On Demand Valet and Parking Services During the second quarter, DropCar Operating offered its customers on demand services through its mobile application. The customer was billed at an hourly rate upon completion of the services. Revenue was recognized when the Company had satisfied all performance obligations which is upon completion of the service. DropCar 360 Services During the second quarter, DropCar Operating offered an additional service to its customers by offering to take the vehicle for inspection, maintenance, car washes or to fill up with gas. The customers were charged a fee in addition to the cost of the third-party services provided. Revenue was recognized when the Company had satisfied all performance obligations which is upon completion of the service. On Demand Business-To-Business DropCar Operating also has contracts with car dealerships and others in the automotive industry in moving their fleet of cars. Revenue is recognized at the point in time all performance obligations are satisfied which is when the Company provide the delivery service of the vehicles. Disaggregated Revenues The following table presents our revenues from contracts with customers disaggregated by revenue source. Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 DropCar Operating Subscription Services $ 1,282,962 $ 671,202 $ 2,639,555 $ 1,171,888 DropCar Operating Services On-Demand 591,035 218,093 926,517 355,965 DropCar Operating Revenue (1)(2) 1,873,997 889,295 3,566,072 1,527,853 (1) Represents revenues recognized by type of services. (2) All revenues are generated in the United States.
Employee Stock-Based Compensation	The Company recognizes all employee share-based compensation as a cost in the financial statements. Equity-classified awards principally related to stock options, restricted stock units (“RSUs”) and equity-based compensation, are measured at the grant date fair value of the award. The Company determines grant date fair value of stock option awards using the Black-Scholes option-pricing model. The fair value of RSUs are determined using the closing price of the Company’s common stock on the grant date. For service-based vesting grants, expense is recognized over the requisite service period based on the number of options or shares expected to ultimately vest. Forfeitures are estimated at the date of grant and revised when actual or expected forfeiture activity differs materially from original estimates. The Company has one equity incentive plan, the 2014 Equity Incentive Plan (the “Plan”). As of June 30, 2018, there were 5,127 shares reserved for future issuance under the Plan.
Property and Equipment	The Company accounts for property and equipment at cost less accumulated depreciation. The Company computes depreciation using the straight-line method over the estimated useful lives of the assets. The Company generally depreciates property and equipment over a period of three to seven years. Depreciation for property and equipment commences once they are ready for its intended use.
Impairment of Long-Lived Assets	Long-lived assets are primarily comprised of intangible assets, property and equipment, and capitalized software costs. The Company evaluates its Long-Lived Assets for impairment whenever events or changes in circumstances indicate the carrying value of an asset or group of assets may not be recoverable. If these circumstances exist, recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset group to future undiscounted net cash flows expected to be generated by the asset group. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. There were no impairments to long-lived assets for the periods ended June 30, 2018 and 2017.
Income Taxes	The Company provides for income taxes using the asset and liability approach. Deferred tax assets and liabilities are recorded based on the differences between the financial statement and tax bases of assets and liabilities and the tax rates in effect when these differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance if, based on the weight of available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. As of June 30, 2018, and December 31, 2017, the Company had a full valuation allowance against its deferred tax assets. The Tax Cuts and Jobs Act (the “Tax Act”), enacted on December 22, 2017, among other things, permanently lowered the statutory federal corporate tax rate from 35% to 21%, effective for tax years including or beginning January 1, 2018. Under the guidance of ASC 740, “Income Taxes” (“ASC 740”), the Company revalued its net deferred tax assets on the date of enactment based on the reduction in the overall future tax benefit expected to be realized at the lower tax rate implemented by the new legislation. Although in the normal course of business the Company is required to make estimates and assumptions for certain tax items which cannot be fully determined at period end, the Company did not identify items for which the income tax effects of the Tax Act have not been completed as of June 30, 2018 and, therefore, considers its accounting for the tax effects of the Tax Act on its deferred tax assets and liabilities to be complete as of June 30, 2018.
Fair Value Measurements	The Company accounts for financial instruments in accordance with ASC 820, “Fair Value Measurements and Disclosures” (“ASC 820”). ASC 820 establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under ASC 820 are described below: Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2 - Quoted prices in markets that are not active or financial instruments for which all significant inputs are observable, either directly or indirectly; and Level 3 - Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable. Financial instruments with carrying values approximating fair value include cash, accounts receivable, accounts payable and accrued expenses, deferred income, and accrued interest, due to their short-term nature.
Earnings/Loss Per Share	Basic earnings per share is computed by dividing net loss attributable to common shareholders (the numerator) by the weighted-average number of common shares outstanding (the denominator) for the period. Diluted earnings per share are computed by assuming that any dilutive convertible securities outstanding were converted, with related preferred stock dividend requirements and outstanding common shares adjusted accordingly. It also assumes that outstanding common shares were increased by shares issuable upon exercise of those stock options for which market price exceeds the exercise price, less shares which could have been purchased by us with the related proceeds. In periods of losses, diluted loss per share is computed on the same basis as basic loss per share as the inclusion of any other potential shares outstanding would be anti-dilutive. The following securities were excluded from weighted average diluted common shares outstanding because their inclusion would have been antidilutive. As of June 30, 2018 2017 Common stock equivalents: Common stock options 202,058 - Series A, H-1, H-3, H-4, I and Merger common stock purchase warrants 585,307 - Series H, H-3, and H-4 Convertible Preferred Stock 2,739,225 - Restricted shares (unvested) 244,643 - Convertible notes - 63,307 Series seed preferred stock - 275,691 Series A preferred stock - 611,944 Totals 3,771,233 950,942
Accounting Standards	Adoption of New Accounting Standards In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers. Under the new standard, revenue is recognized at the time a good or service is transferred to a customer for the amount of consideration for which the entity expects to be entitled for that specific good or service. Entities may use a full retrospective approach or on a prospective basis and report the cumulative effect as of the date of adoption. The Company adopted the new standard on January 1, 2018 using prospective basis and the cumulative effect was immaterial to the financial statements. The new standard also requires enhanced disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts. In July 2017, the FASB issued ASU No. 2017-11, Earnings Per Share (Topic 260); Distinguishing Liabilities from Equity (Topic 480); Derivatives and Hedging (Topic 815): (Part I) Accounting for Certain Financial Instruments with Down Round Features. These amendments simplify the accounting for certain financial instruments with down round features. The amendments require companies to disregard the down round feature when assessing whether the instrument is indexed to its own stock, for purposes of determining liability or equity classification. The adoption of this standard on January 1, 2018 did not have a material effect on the Company’s financial statements. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business. The new guidance dictates that, when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, it should be treated as an acquisition or disposal of an asset. The guidance was adopted as of January 1, 2018 and did not have a material effect on the Company’s financial statements. Recently Issued Accounting Standards From time to time, new accounting pronouncements are issued by the FASB or other standard setting bodies. Unless otherwise discussed, the Company believes that the impact of recently issued standards that are not yet effective will not have a material impact on its consolidated financial position or results of operations upon adoption. In February 2016, the FASB issued ASU No. 2016-02, amended and codified as Topic 842, Leases. The new standard establishes a right-of-use ("ROU") model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Either a prospective approved or a modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The Company is in the process of evaluating the impact of this guidance on its consolidated financial statements and related disclosures; however, based on the Company's current operating leases, it is expected to have a material impact on the Company's consolidated balance sheet by increasing assets and liabilities. In January 2017, the FASB issued Accounting Standards Update No. 2017-04 (ASU 2017-04), Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. ASU 2017-04 eliminates step two of the goodwill impairment test and specifies that goodwill impairment should be measured by comparing the fair value of a reporting unit with its carrying amount. Additionally, the amount of goodwill allocated to each reporting unit with a zero or negative carrying amount of net assets should be disclosed. ASU 2017-04 is effective for annual or interim goodwill impairment tests performed in fiscal years beginning after December 15, 2019; early adoption is permitted. The Company currently anticipates that the adoption of ASU 2017-04 will not have a material impact on its consolidated financial statements. In June 2018, the FASB issued ASU 2018-07, Compensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting, which simplifies the accounting for nonemployee share-based payment transactions. The amendments specify that Topic 718 applies to all share-based payment transactions in which a grantor acquires goods or services to be used or consumed in a grantor’s own operations by issuing share-based payment awards. The standard will be effective in the first quarter of 2020, although early adoption is permitted. The Company is currently evaluating the effect the adoption of this ASU will have on its consolidated financial statements.

The Company (Tables)

The Company (Tables)	6 Months Ended
	Jun. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Schedule of recognized identified assets acquired and liabilities assumed	Fair value of equity consideration 506,423 WPCS common shares $ 9,792,000 Liability assumed: notes payable 158,000 Total purchase price consideration $ 9,950,000 Tangible assets Net working capital (1) $ 6,664,000 Deferred revenue (2,300,000 ) Fixed assets & equipment 376,000 Intangible assets (2) Customer contracts 1,200,000 Trade name 600,000 Goodwill 3,410,000 Total allocation of purchase price consideration $ 9,950,000 (1) Net working capital consists of cash of $4,947,000; accounts receivable and contract assets of $3,934,000; other assets of $317,000; and accounts payable and accrued liabilities of $2,534,000. (2) The useful lives related to the acquired customer relationships and trade name are expected to be approximately 10 years.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	6 Months Ended
	Jun. 30, 2018
Accounting Policies [Abstract]
Schedule of restatements	The following tables sets forth the effects of the adjustments on affected items within the Company’s previously reported Consolidated Interim Balance Sheet at June 30, 2018, and includes a reclassification adjustment for the stock split of $679: June 30, 2018 As previously reported Adjustment As restated Additional paid in capital $ 26,464,626 $ 1,119,973 $ 27,584,599 Accumulated deficit $ (17,275,449 ) $ (1,119,294 ) $ (18,394,743 ) The following table sets forth the effects of the adjustments on affected items within the Company’s previously reported Consolidated Interim Statement of Operations for the six months ended June 30, 2018: Six Months Ended June 30, 2018 As previously reported Adjustment As restated Effect of Discontinued Operations As currently reported Selling, general and administrative expenses $ 6,923,599 $ 447,150 $ 7,370,749 $ (1,116,686 ) $ 6,254,063 Depreciation and amortization 304,687 - 304,687 $ (142,943 ) $ 161,744 Total operating expenses $ 7,406,418 $ 447,150 $ 7,853,568 $ (1,259,629 ) $ (6,593,939 ) Operating loss $ (6,943,738 ) $ (447,150 ) $ (7,390,888 ) $ (461,541 ) $ (7,852,429 ) Interest income (expense), net $ (409,953 ) $ (672,144 ) $ (1,082,097 ) $ 598 $ (1,081,499 ) Loss from continuing operations $ (7,353,691 ) $ (1,119,294 ) $ (8,472,985 ) $ (460,943 ) $ (8,933,928 ) Income from discontinued operations $ - $ - $ - $ 460,943 $ 460,943 Net loss $ (7,353,691 ) $ (1,119,294 ) $ (8,472,985 ) $ 460,943 $ (8,472,985 ) Net loss attributable to common shareholders $ (7,670,552 ) $ (1,119,294 ) $ (8,789,846 ) $ - $ (8,789,846 ) Net loss per common shares, basic and diluted $ (6.57 ) $ (7.53 ) $ (7.53 ) The following table sets forth the effects of the adjustments on affected items within the Company’s previously reported Consolidated Interim Statement of Cash Flows for the six months ended June 30, 2018: Six Months Ended June 30, 2018 As previously reported Adjustment As restated Net loss $(7,353,691) $(1,119,294) $(8,472,985) Stock based compensation $1,200,652 $447,150 $1,647,802 Non-cash interest expense $23,869 $672,144 $696,013
Disaggregation of revenue	Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 DropCar Operating Subscription Services $ 1,282,962 $ 671,202 $ 2,639,555 $ 1,171,888 DropCar Operating Services On-Demand 591,035 218,093 926,517 355,965 DropCar Operating Revenue (1)(2) 1,873,997 889,295 3,566,072 1,527,853 (1) Represents revenues recognized by type of services. (2) All revenues are generated in the United States.
Schedule of antidilutive securities excluded from computation of earnings per share	As of June 30, 2018 2017 Common stock equivalents: Common stock options 202,058 - Series A, H-1, H-3, H-4, I and Merger common stock purchase warrants 585,307 - Series H, H-3, and H-4 Convertible Preferred Stock 2,739,225 - Restricted shares (unvested) 244,643 - Convertible notes - 63,307 Series seed preferred stock - 275,691 Series A preferred stock - 611,944 Totals 3,771,233 950,942

Discontinued Operations and D_2

Discontinued Operations and Disposition of Operating Segment (Tables)	6 Months Ended
	Jun. 30, 2018
Discontinued Operations and Disposal Groups [Abstract]
Schedule of discontinued operations	For the Three Months Ended June 30, 2018 For the Six Months Ended June 30, 2018 Revenues $ 4,466,370 $ 7,648,849 Cost of revenues 3,601,403 5,927,679 Gross profit 864,967 1,721,170 Selling, general and administrative expenses 626,886 1,116,686 Depreciation and amortization 86,098 142,943 Total Operating Expenses 712,984 1,259,629 Operating income 151,983 461,541 Interest expense, net (418 ) (598 ) Net income from discontinued operations $ 151,565 $ 460,943

Capitalized Software (Tables)

Capitalized Software (Tables)	6 Months Ended
	Jun. 30, 2018
Capitalized Computer Software, Net [Abstract]
Schedule of capitalized computer software, net	June 30, 2018 December 31, 2017 Software $ 1,112,526 $ 904,383 Accumulated amortization (474,375 ) (314,799 ) Total $ 638,151 $ 589,584

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	6 Months Ended
	Jun. 30, 2018
STOCKHOLDERS' EQUITY (DEFICIT):
Schedule of share-based compensation, stock options, activity	Shares Underlying Options Weighted Average Exercise Price Weighted average Remaining Contractual Life (years) Aggregate Intrinsic Value Outstanding at December 31, 2017 - $ - - - Acquired in Reverse Merger 133,711 36.42 4.40 - Granted 68,347 12.24 9.76 - Outstanding at June 30, 2018 202,058 $ 25.74 8.49 -
Schedule of share-based payment award, stock options, valuation assumptions	Fair value of common stock $10.92-$13.26 Expected volatility 118.10% - 118.83% Dividend yield $0 Risk-free interest 2.87% - 3.00% Expected life (years) 5.33
Schedule of common stock warrant activity	Number of Warrants Weighted Average Exercise Price Outstanding, December 31, 2017 146,358 $ 59.04 Acquired, H-1 warrants 50,744 29.04 Acquired, H-3 warrants 14,001 33.12 Granted, H-4 warrants(1) 447,383 3.60 Granted, I warrants 73,178 13.80 Retired, Merger Warrants (146,357 ) 59.04 Outstanding, June 30, 2018 585,307 $ 16.98 (1) Excludes 1,342,150 H-4 warrants representing 150% coverage of H-4 warrants granted.

The Company (Details)

The Company (Details)	6 Months Ended
	Jun. 30, 2018USD ($)
Fair value of equity consideration, 4,685,164 common shares	$ 9,792,000
Liability assumed: notes payable	158,000
Total purchase price consideration	9,950,000
Tangible assets
Net working capital	6,664,000	[1]
Deferred revenue	(2,300,000)
Fixed assets & equipment	376,000
Intangible assets
Goodwill	3,410,000
Total allocation of purchase price consideration	9,950,000
Customer Contracts [Member]
Intangible assets
Business combination, recognized finite-lived intangibles	1,200,000	[2]
Trade Names [Member]
Intangible assets
Business combination, recognized finite-lived intangibles	$ 600,000	[2]
[1]	Net working capital consists of cash of $4,947,000; accounts receivable and contract assets of $3,934,000; other assets of $317,000; and accounts payable and accrued liabilities of $2,534,000.
[2]	The useful lives related to the acquired customer relationships and trade name are expected to be approximately 10 years.

Summary of Significant Accoun_4

Summary of Significant Accounting Policies (Details) - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Additional paid in capital	$ 27,584,599
Accumulated deficit	(18,394,743)	$ (9,604,897)
As Previously Reported
Additional paid in capital	26,464,626
Accumulated deficit	(17,275,449)
Adjustment
Additional paid in capital	1,119,973
Accumulated deficit	$ (1,119,294)

Summary of Significant Accoun_5

Summary of Significant Accounting Policies (Details 1) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Selling, general and administrative expense	$ 3,341,601	$ 1,354,906	$ 6,252,398	$ 1,851,017
Depreciation and amortization	84,177	45,487	163,409	90,827
Total operating expenses	3,489,749	1,400,393	6,593,939	1,941,844
Operating loss	(4,144,533)	(1,465,005)	(7,852,429)	(1,857,112)
Interest income (expense), net	718	(328,393)	(1,081,499)	(328,393)
Loss from continuing operations	(4,143,815)	(1,793,398)	(8,933,928)	(2,185,505)
Income from discontinued operations	151,565	0	460,943	0
Net loss	(3,992,250)	(1,793,398)	(8,472,985)	(2,185,505)
Net loss attributable to common shareholders	$ (4,309,111)	$ (1,793,398)	$ (8,789,846)	(2,185,505)
Net loss per common shares, basic and diluted			$ (7.53)
Stock based compensation			$ 1,647,802	418,692
Non-cash interest expense			696,013	$ 0
As Previously Reported
Selling, general and administrative expense			6,923,599
Depreciation and amortization			304,687
Total operating expenses			7,406,418
Operating loss			(6,943,738)
Interest income (expense), net			(409,953)
Loss from continuing operations			(7,353,691)
Income from discontinued operations			0
Net loss			(7,353,691)
Net loss attributable to common shareholders			$ (7,670,552)
Net loss per common shares, basic and diluted			$ (6.57)
Stock based compensation			$ 1,200,652
Non-cash interest expense			23,869
Adjustment
Selling, general and administrative expense			447,150
Depreciation and amortization			0
Total operating expenses			447,150
Operating loss			(447,150)
Interest income (expense), net			(672,144)
Loss from continuing operations			(1,119,294)
Income from discontinued operations			0
Net loss			(1,119,294)
Net loss attributable to common shareholders			$ (1,119,294)
Net loss per common shares, basic and diluted			$ .00
Stock based compensation			$ 447,150
Non-cash interest expense			672,144
As Restated
Selling, general and administrative expense			7,370,749
Depreciation and amortization			304,687
Total operating expenses			7,853,568
Operating loss			(7,390,888)
Interest income (expense), net			(1,082,097)
Loss from continuing operations			(8,472,985)
Income from discontinued operations			0
Net loss			(8,472,985)
Net loss attributable to common shareholders			$ (8,789,846)
Net loss per common shares, basic and diluted			$ (7.53)
Effect of Discontinued Operations
Selling, general and administrative expense			$ (1,116,686)
Depreciation and amortization			(142,943)
Total operating expenses			(1,259,629)
Operating loss			(461,541)
Interest income (expense), net			598
Loss from continuing operations			(460,943)
Income from discontinued operations			460,943
Net loss			460,943
Net loss attributable to common shareholders			$ 0
Net loss per common shares, basic and diluted			$ .00

Summary of Significant Accoun_6

Summary of Significant Accounting Policies (Details 2) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Revenues from contracts with customers	$ 1,873,997	$ 889,295	$ 3,566,072	$ 1,527,853
DropCar Operating Subscription Services [Member]
Revenues from contracts with customers	1,282,962	671,202	2,639,555	1,171,888
DropCar Operating Services OnDemand [Member]
Revenues from contracts with customers	$ 591,035	$ 218,093	$ 926,517	$ 355,965

Summary of Significant Accoun_7

Summary of Significant Accounting Policies (Details 3) - shares	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Antidilutive securities excluded from computation of earnings per share	3,771,233	950,942
Common Stock Options [Member]
Antidilutive securities excluded from computation of earnings per share	202,058	0
Series A, H-1, H-3, H-4, I and Merger Common Stock Purchase Warrants [Member]
Antidilutive securities excluded from computation of earnings per share	585,307	0
Series H, H-3, and H-4 Convertible Preferred Stock [Member]
Antidilutive securities excluded from computation of earnings per share	2,739,225	0
Restricted Shares (Unvested) [Member]
Antidilutive securities excluded from computation of earnings per share	244,643	0
Convertible Notes [Member]
Antidilutive securities excluded from computation of earnings per share	0	63,307
Series Seed Preferred Stock [Member]
Antidilutive securities excluded from computation of earnings per share	0	275,691
Series A Preferred Stock [Member]
Antidilutive securities excluded from computation of earnings per share	0	611,944

Summary of Significant Accoun_8

Summary of Significant Accounting Policies (Details Narrative) - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Accounting Policies [Abstract]
Accumulated deficit	$ (18,394,743)	$ (9,604,897)

Discontinued Operations and D_3

Discontinued Operations and Disposition of Operating Segment (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Discontinued Operations and Disposal Groups [Abstract]
Revenues	$ 4,466,370		$ 7,648,849
Cost of revenues	3,601,403		5,927,679
Gross profit	864,967		1,721,170
Selling, general and administrative expenses	626,886		1,116,686
Depreciation and amortization	86,098		142,943
Total operating expenses	712,984		1,259,629
Operating income	151,983		461,541
Interest expense, net	(418)		(598)
Net income from discontinued operations	$ 151,565	$ 0	$ 460,943	$ 0

Capitalized Software (Details)

Capitalized Software (Details) - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Capitalized Computer Software, Net [Abstract]
Software	$ 1,112,526	$ 904,383
Accumulated amortization	(474,375)	(314,799)
Total	$ 638,151	$ 589,584

Capitalized Software (Details N

Capitalized Software (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Capitalized Computer Software, Net [Abstract]
Capitalized computer software, amortization	$ 81,392	$ 45,487	$ 159,576	$ 90,827

Convertible Notes Payable (Deta

Convertible Notes Payable (Details Narrative) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Debt Disclosure [Abstract]
Debt instrument, face amount		$ 4,840,000
Class of warrant or right, number of securities called by warrants or rights		146,358
Class of warrant or right, exercise price of warrants or rights	$ 16.98	$ 59.04
Debt instrument, interest rate, stated percentage		6.00%
Debt instrument, convertible, conversion price		$ 35.40
Debt conversion, converted instrument, shares issued		136,785
Convertible notes payable, noncurrent	$ 0	$ 3,506,502
Interest expense	$ 672,144

Commitments (Details Narrative)

Commitments (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
Rent expense	$ 45,000	$ 9,000	$ 74,000	$ 18,000
Estimated litigation liability	$ 82,000		82,000		$ 96,000
Litigation settlement, amount awarded to other party			$ 44,000

Stockholders' Equity (Details)

Stockholders' Equity (Details)	6 Months Ended
	Jun. 30, 2018USD ($)$ / sharesshares
STOCKHOLDERS' EQUITY (DEFICIT):
Stock options outstanding, beginning | shares	0
Stock options acquired in merger | shares	133,711
Stock options granted | shares	68,347
Stock options outstanding, ending | shares	202,058
Weighted average exercise price outstanding, beginning | $ / shares	$ .00
Weighted average exercise price acquired in merger | $ / shares	36.42
Weighted average exercise price granted | $ / shares	12.24
Weighted average exercise price outstanding, ending | $ / shares	$ 25.74
Weighted average remaining contractual life, beginning	0 years
Weighted average remaining contractual life acquired in merger	4 years 4 months 24 days
Weighted average remaining contractual life granted	9 years 8 months 4 days
Weighted average remaining contractual life, ending	8 years 5 months 26 days
Aggregate intrinsic value outstanding, beginning | $	$ 0
Aggregate intrinsic value acquired in merger | $	0
Aggregate intrinsic value granted | $	0
Aggregate intrinsic value outstanding, ending | $	$ 0

Stockholders' Equity (Details 1

Stockholders' Equity (Details 1)	6 Months Ended
	Jun. 30, 2018$ / shares
Dividend yield	0.00%
Expected life (years)	5 years 3 months 29 days
Minimum [Member]
Fair value of common stock	$ 10.92
Expected volatility	118.10%
Risk-free interest	2.87%
Maximum [Member]
Fair value of common stock	$ 13.26
Expected volatility	118.83%
Risk-free interest	3.00%

Stockholders' Equity (Details 2

Stockholders' Equity (Details 2)	6 Months Ended
	Jun. 30, 2018$ / sharesshares
Warrants outstanding, beginning	1,466,358
Warrants acquired
Warrants granted
Warrants retired
Warrants outstanding, ending	585,307
Weighted average exercise price outstanding, beginning | $ / shares	$ 59.04
Weighted average exercise price outstanding, ending | $ / shares	$ 16.98
Acquired H1 Warrants [Member]
Warrants acquired	50,744
Weighted average exercise price acquired | $ / shares	$ 29.04
Acquired H3 Warrants [Member]
Warrants acquired	14,001
Weighted average exercise price acquired | $ / shares	$ 33.12
Granted H4 warrants [Member]
Warrants granted	447,383	[1]
Weighted average exercise price granted | $ / shares	$ 3.60
Granted I warrants [Member]
Warrants granted	73,178
Weighted average exercise price granted | $ / shares	$ 13.80
Retired Merger Warrants [Member]
Warrants retired	(146,357)
Weighted average exercise price retired | $ / shares	$ 59.04
[1]	Excludes 1,342,150 H-4 warrants representing 150% coverage of H-4 warrants granted.

Stockholders' Equity (Details N

Stockholders' Equity (Details Narrative) - USD ($)	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
STOCKHOLDERS' EQUITY (DEFICIT):
Unamortized stock compensation, RSUs	$ 2,159,630
Unamortized stock compensation, options	$ 618,137
Unamortized stock compensation, period of recognition	2 years
Stock based compensation for RSU’s	$ 1,200,652	$ 418,692