NOTE 4 BASIC AND DILUTED NET LOSS PER COMMON SHARE

Basic and diluted net loss per common share from continuing operations is computed as net loss from continuing operations less noncontrolling interest and dividends on preferred stock, divided by the weighted average number of common shares outstanding for the period. Diluted net loss per common share reflects the potential dilution that could occur from common stock issuable through exercise of stock options, warrants and Note conversions.

The table below presents the computations of loss per share from continuing operations applicable to common stockholders, after consideration of noncontrolling interest and dividends declared on preferred stock, as follows:

	For the years ended
	April 30,
	2017		2016
Numerator:

Loss from continuing operations attributable to WPCS common shareholders	$	(2,256,194)	$	(9,118,522)
Income from discontinued operations, basic and diluted		-		848,476
Net loss attributable to WPCS common shareholders, basic and diluted	$	(2,256,194)	$	(8,270,046)

Denominator:

Basic and diluted weighted average shares outstanding		2,967,984		2,290,050

Basic and diluted loss from continuing operations per common share	$	(0.76)	$	(3.98)
Basic and diluted income from discontinued operations per common share		-		0.37
Basic and diluted loss per common share	$	(0.76)	$	(3.61)

The following were excluded from the computation of diluted shares outstanding due to the losses for the years ended April 30, 2017 and 2016, as they would have had an anti-dilutive impact on the Company’s net loss.

	As of April 30,
	2017		2016
Common stock equivalents:
Common stock options		3,328,000		3,290,000
Series H, H-1, H-2 and H-3 preferred stock		1,462,000		1,076,000
Common stock purchase warrants		2,893,000		1,295,000
Totals		7,683,000		5,661,000

About Earnings Per Share Disclosures

The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.

Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.

Fabric.AI, Inc. Earnings Per Share Disclosure

About Earnings Per Share Disclosures

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