Quarterly report pursuant to Section 13 or 15(d)

The Company (Tables)

v3.19.2
The Company (Tables)
6 Months Ended
Jun. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Schedule of recognized identified assets acquired and liabilities assumed
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 )
Fixed assets & 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 consists of cash of $4,947,000; accounts receivable and contract assets of $3,934,000; other assets of $317,000; and accounts payable and accrued liabilities of $2,534,000.
  (2) The useful lives related to the acquired customer relationships and trade name are expected to be approximately 10 years.