DISCONTINUED OPERATIONS

6 Months Ended

Oct. 31, 2016

Discontinued Operations

DISCONTINUED OPERATIONS

NOTE 7 – DISCONTINUED OPERATIONS

The Company previously disclosed the details regarding the sales of its China Operations in its Form 10-K filed for the year ended April 30, 2016. The schedule below shows the results of discontinued operations from China for the three and six months ended October 31, 2016 and 2015.

	For the three months ended				For the six months ended
	October 31,				October 31,
	2016		2015		2016		2015
Revenue	$	-	$	-	$	-	$	839,969
Costs and expenses:
Cost of revenue		-		-		-		546,296
Selling, general and administrative expenses		-		-		-		111,324
Depreciation and amortization		-		-		-		80,971
		-		-		-		738,591
Operating income from discontinued operations		-		-		-		101,378
Interest expense		-		-		-		(49,234)
Income from discontinued operations before income tax provision		-		-		-		52,144
Income tax provision		-		-		-		(10,883)
Income from discontinued operations, net of tax		-		-		-		41,261
Gain from disposal				837,720		-		837,720
Total income from discontinued operations	$	-	$	837,720	$	-	$	878,981

Due Related Party

As of October 31, 2016 and April 30, 2016, the China Operations had outstanding payables, representing interest accrued on working capital loans and cash provided for the purpose of retiring the short term bank loan in the amounts of $0 and $0, respectively, due on demand to a related party, TGG. This loan, which was paid off at the time of sale of our China Operations was not guaranteed by WPCS. Interest expense for the six months ended October 31, 2015 was immaterial.

The China Operations earned revenue for contracting services provided to TGG (noncontrolling interest in China Operations) and subsidiaries of $0 for the three and six months ended October 31, 2016 and $0 and $212,000 for the three and six months ended October 31, 2015, respectively.