BASIC AND DILUTED NET LOSS PER COMMON SHARE

6 Months Ended

Oct. 31, 2015

BASIC AND DILUTED NET LOSS PER COMMON SHARE

NOTE 5 - 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.

The table below presents the computations of loss per share from continuing operations applicable to common stockholders, after consideration of noncontrolling interest and dividends declared on preferred stock, as follows:

	For the three months ended				For the six months ended
	October 31,				October 31,
	2015		2014		2015		2014
Numerator:

Loss from continuing operations attributable to WPCS common shareholders	$	(2,823,466)	$	(1,998,369)	$	(7,030,226)	$	(4,720,356)
Income (loss) from discontinued operations, basic and diluted		837,720		(1,834,269)		862,476		(1,424,467)
Net loss attributable to WPCS common shareholders, basic and diluted	$	(1,985,746)	$	(3,832,638)	$	(6,167,750)	$	(6,144,823)

Denominator:

Basic and diluted weighted average shares outstanding		2,415,113		632,417		1,942,681		632,417

Basic and diluted loss from continuing operations per common share	$	(1.17)	$	(3.16)	$	(3.62)	$	(7.46)
Basic and diluted income (loss) from discontinued operations per common share		0.35		(2.91)		0.44		(2.26)
Basic and diluted loss per common share	$	(0.82)	$	(6.06)	$	(3.17)	$	(9.72)

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

	As of October 31,
	2015		2014
Common stock equivalents:
Common stock options		2,724,000		4,000
Series E preferred stock		-		21,000
Series F and F-1 preferred stock		-		239,000
Series G and G-1 preferred stock		76,000		116,000
Series H and H-1 preferred stock		1,135,000		-
Make-whole on preferred shares		21,000		-
Conversion of senior secured convertible notes		-		1,378,000
Common stock purchase warrants		1,296,000		114,000
Totals		5,252,000		1,872,000