Discontinued Operations and Disposition of Operating Segment

3 Months Ended

Mar. 31, 2019

Discontinued Operations And Disposition Of Operating Segment

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 months ended March 31, 2018 were as follows:

Revenues	$	3,182,479
Cost of revenues		2,326,276
Gross profit		856,203
Selling, general and administrative expenses		489,800
Depreciation and amortization		56,845
Total Operating Expenses		546,645
Interest expense, net		180
Net income from discontinued operations	$	309,378