WPCS International auditor resigns

WPCS International (WPCS +67.5%) discloses that it received a notice of resignation from its auditor, CohnReznick LLP, on Dec. 20. (8-K)

"The Former Accountant's reports ... for the past two years do not contain an adverse opinion or disclaimer of opinion ... except as that the reports ... indicated conditions which raised substantial doubt about the Company's ability to continue as a going concern."

WPCS has not yet engaged a replacement.

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Comments (3)
  • fisherman.tu333
    , contributor
    Comments (3) | Send Message
    It's interesting who ever post this excerpt intentionally omits the date and make it sounds like WPCS' s current condition raise substantial doubt about the company ability to continue....when this statement refers to two previous fiscal years ended on April 30, 2013..." The Former Accountant’s reports on the Company’s financial statements for the past two years do not contain an adverse opinion or a disclaimer of opinion, and are not qualified or modified as to uncertainty, audit scope, or accounting principles, except as that the reports of the Former Accountant for the past two fiscal years ended April 30, 2013 and 2012 indicated conditions which raised substantial doubt about the Company’s ability to continue as a going concern."
    28 Dec 2013, 06:39 AM Reply Like
  • Brice Mckalip
    , contributor
    Comments (198) | Send Message
    WPCS lost $6.4M in the first half of the year and only had $4.5M of shareholder equity at the end of October. $2.4M of interest expense last quarter alone will have eaten up the remaining $1.5M of cash.


    So yes, the editor removed the dates of the last two years and yet fairly represented the information. I haven't dug into the company but based on their last couple of quarters, it looks like they're having a rough time.
    28 Dec 2013, 04:56 PM Reply Like
  • PU600
    , contributor
    Comments (8) | Send Message
    Well, WPCS price dropped after trading hours. For the past financia years, the financial results are not good. But the company is perceived to be looking at other business opportunities, like operating a trading platform (most probably doing what IG Markets and Saxo Capital Markets for investors to trade in foreign currencies, CFDs, futures, binaries, etc). And, It has the initiative of letting investors using bitcoins to trade. I would rather look at it positively, instead of letting the company go into dust, WPCS's Board is looking at business opportunities to turn the company around.


    Besides equities markets, I also trade in foreign currencies, CFD and binaries very actively. The spread between the bid and offer prices quoted to any investors using WPCS trading platform would quickly turn the company around, especially for foreign currencies trading, it is almost 24 hours trading worldwide. Also, I do not think WPCS needs a lot of capital injection. I believe, same as other trading platforms worldwide, in order to open an account to use the trading platform, the investor has to put in cash margin for a trading limit.


    The dropped in prices definitely presents buying opportunities. I have bought 6000 shares@ 1.55 range and let every share out at 3.30. I am waiting sideline very eagerly for re-entry.
    28 Dec 2013, 11:27 PM Reply Like
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