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
9 Months Ended
Sep. 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 nine months ended September 30, 2018 were as follows:

 

   

   For the Three Months Ended September 30,

2018

   

   For the Nine Months Ended September 30,

2018

 
Revenues   3,222,928     10,871,777  
Cost of revenues     2,649,168       8,576,847  
Gross profit     573,760       2,294,930  
                 
Selling, general and administrative expenses     575,248       1,691,934  
Depreciation and amortization     78,954       221,897  
Total Operating Expenses     654,202       1,913,831  
                 
Operating (loss) income     (80,442 )     381,099  
                 
Interest expense, net     (3,294 )     (3,892 )
                 
Net (loss) income from discontinued operations   (83,736 )   377,207