The Company (Tables)

9 Months Ended

12 Months Ended

Sep. 30, 2019

Dec. 31, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

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	)
Property and 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 consisted of cash of $4,947,000; accounts receivable and contract assets of $3,934,000; other assets of $317,000; accounts payable and accrued liabilities of $2,534,000.
(2)	The useful lives related to the acquired customer relationships and trade name were expected to be approximately 10 years.

Schedule of Concentration of Accounts Receivable

Accounts Receivable

The Company’s concentration of accounts receivable are as follows:

	As of
	September 30, 2019			December 31, 2018
Customer A		34	%		58	%
Customer B		31	%		23	%
Customer C		12	%		-%
Customer D		10	%		-%

Revenue

The concentration of revenue for the three and nine months ended September 30, 2019 and 2018, respectively are as follows:

	For the three months ended September 30,				For the nine months ended September 30,
	2019		2018		2019			2018
Customer A		-		-		10	%		-

- Represents less than 10%

Accounts Receivable

The Company’s concentration of accounts receivable are as follows:

	As of December 31,
	2018			2017
Customer A		58	%		21	%
Customer B		23	%		15	%