Discontinued Operations and Disposition of Operating Segment

6 Months Ended

Jun. 30, 2019

DropCar Operating Services OnDemand [Member]

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 and six months ended June 30, 2018 were as follows:

	For the Three Months Ended June 30, 2018			For the Six Months Ended June 30, 2018
Revenues	$	4,466,370		$	7,648,849
Cost of revenues		3,601,403			5,927,679
Gross profit		864,967			1,721,170
Selling, general and administrative expenses		626,886			1,116,686
Depreciation and amortization		86,098			142,943
Total Operating Expenses		712,984			1,259,629
Operating income		151,983			461,541
Interest expense, net		(418	)		(598	)
Net income from discontinued operations	$	151,565		$	460,943