Quarterly report pursuant to Section 13 or 15(d)

Discontinued Operations and Disposition of Operating Segment

v3.19.2
Discontinued Operations and Disposition of Operating Segment
6 Months Ended
Jun. 30, 2018
Discontinued Operations and Disposal Groups [Abstract]  
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