BASIC AND DILUTED NET LOSS PER COMMON SHARE

3 Months Ended

Jul. 31, 2015

BASIC AND DILUTED NET LOSS PER COMMON SHARE

NOTE 3 - BASIC AND DILUTED NET LOSS PER COMMON SHARE

Basic and diluted net loss per common share from continuing operations is computed as net loss from continuing operations less non-controlling interest and dividends on preferred stock, divided by the weighted average number of common shares outstanding for the period. Diluted net loss per common share reflects the potential dilution that could occur from common stock issuable through the exercise of stock options and warrants and note conversions.

	For the three months ended
	July 31,
	2015		2014
Numerator:

Loss from continuing operations attributable to WPCS common shareholders	$	(4,206,760)	$	(2,721,987)
Income from discontinued operations, basic and diluted		24,756		409,802
Net loss attributable to WPCS common shareholders, basic and diluted	$	(4,182,004)	$	(2,312,185)

Denominator:

Basic and diluted weighted average shares outstanding		1,470,248		632,417

Basic and diluted loss from continuing operations per common share	$	(2.86)	$	(4.30)
Basic and diluted income from discontinued operations per common share		0.02		0.64
Basic and diluted loss per common share	$	(2.84)	$	(3.66)

The following were excluded from the computation of diluted shares outstanding due to the losses from continuing operations for the three months ended July 31, 2015 and 2014, as they would have had an anti-dilutive impact on the Company’s net loss.

	As of July 31,
	2015		2014
Common stock equivalents:
Stock options		40,682		3,600
Series E preferred stock		-		31,662
Series F-1 preferred stock		84,455		-
Series G-1 preferred stock		118,349		-
Series H and H-1 preferred stock		1,247,500		-
Make-whole on preferred series F-1 and G-1 shares		55,718		-
Conversion of senior secured convertible notes		-		1,643,950
Stock warrants		1,295,269		171,582
Totals		2,841,973		1,850,794