$FABC

WPCS INTERNATIONAL INC

CIK:0001086745|SEC Filings

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Income Statement [Abstract]
Revenue
Cost of goods sold		239,040		239,040
Gross loss		(239,040)		(239,040)
Operating expenses:
Research and development	689,892	349,951	814,756	657,681
General and administrative	2,639,185	1,199,323	4,215,376	2,865,145
Total operating expenses	3,329,077	1,549,274	5,030,132	3,522,826
Loss from operations	(3,329,077)	(1,788,314)	(5,030,132)	(3,761,866)
Other income (expense):
Interest income	30,594	7,961	40,595	34,201
Change in fair value - warrant liability		(13,254,700)		(12,174,100)
Change in fair value - derivative liability	43,000	1,130,000	37,000	2,661,000
Change in fair value - anti-dilution liability	(8,044,334)		(8,044,334)
Unrealized gain (loss) on marketable securities	62,805	(7,457)	53,959	(79,164)
Change in fair value of digital assets	75,054		(538,609)
Realized gain on marketable securities	26,123	94,492	64,100	305,554
Consent and waiver fee - Series H-7		(350,000)		(350,000)
Gain on sale of assets	218,803		218,803
Other income (expense), net	(1,565,000)	25,000	(1,697,889)	66,368
Total other income (expense), net	(9,152,955)	(12,354,704)	(9,866,375)	(9,536,141)
Net loss prior to provision for income taxes	(12,482,032)	(14,143,018)	(14,896,507)	(13,298,007)
Provision for income taxes
Net loss	(12,482,032)	(14,143,018)	(14,896,507)	(13,298,007)
Dividends earned on convertible preferred stock	(353,912)	(870,461)	(520,583)	(1,704,194)
Accretion of discounts to redemption value of Series I and Series H-7 convertible preferred stock	(1,748,453)	(1,562,047)	(2,689,931)	(3,248,901)
Net loss attributable to common stockholders	$ (14,584,397)	$ (16,575,526)	$ (18,107,021)	$ (18,251,102)
Net loss per share basic	$ (3.52)	$ (29.87)	$ (6.45)	$ (33.52)
Net loss per share diluted	$ (3.52)	$ (29.87)	$ (6.45)	$ (33.52)
Basic weighted average Common Stock outstanding	4,139,606	554,989	2,805,204	544,474
Diluted weighted average Common Stock outstanding	4,139,606	554,989	2,805,204	544,474

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended				6 Months Ended		12 Months Ended
	Jun. 30, 2026	Mar. 31, 2026	Jun. 30, 2025	Mar. 31, 2025	Jun. 30, 2026	Jun. 30, 2025	Dec. 31, 2025
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$ (12,482,032)	$ (2,414,475)	$ (14,143,018)	$ 845,011	$ (14,896,507)	$ (13,298,007)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization						6,703
Stock-based compensation					1,940,282	69,480
Series H-7 preferred stock waiver						350,000
Non-cash financing expense related to Series H-7 and Series I convertible preferred stock					1,565,000
Gain on sale of assets	(218,803)				(218,803)
Change in fair value - derivative liability	(43,000)		(1,130,000)		(37,000)	(2,661,000)
Change in fair value - warrant liability			13,254,700			12,174,100
Change in fair value - anti-dilution liability	8,044,334				8,044,334
Amortization of right-of-use asset					110,209	98,478
Change in fair value of digital assets	(75,054)				538,609
Unrealized loss on marketable securities	(62,805)		7,457		(53,959)	79,164
Realized gain on marketable securities	(26,123)		(94,492)		(64,100)	(305,554)
Change in operating assets and liabilities:
Prepaid expenses and other current assets					(4,228,759)	785,631
Deposits and other assets					20,883	7,203
Accounts payable					71,996	(828,324)
Accounts payable - related party					(28,533)
Accrued expenses and other current liabilities					137,887	(472,719)
Lease obligations - operating leases					(121,406)	(106,115)
Net cash used in operating activities					(7,219,867)	(4,100,960)
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sale of marketable securities, net					4,755,373	24,282,063
Proceeds from sale of digital assets					1,410,390
Purchase of marketable securities					(19,504,729)	(23,257,290)
Investment in Kopin license rights					(128,521)
Net cash provided by (used in) investing activities					(13,467,487)	1,024,773
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from sale of preferred stock (K), net of transaction costs					19,720,000
Proceeds from exercise of Series H-7 and Series I preferred warrants					5,029,269
Payment of preferred stock dividends (Series H-7 and Series I)					(403,531)	(7,881,527)
Net cash provided by (used in) financing activities					24,345,738	(7,881,527)
Net change in cash, cash equivalents and restricted cash					3,658,384	(10,957,714)
Cash, cash equivalents and restricted cash, beginning of period		$ 5,092,062		$ 16,200,157	5,092,062	16,200,157	$ 16,200,157
Cash, cash equivalents and restricted cash, end of period	8,750,446		5,242,443		8,750,446	5,242,443	5,092,062
Supplemental disclosure of cash and non-cash transactions:
Common stock issued for cashless conversion of Series H-7 and Series I convertible preferred stock					7,832,182
Accrual of Series H-7 convertible preferred stock dividends					9,075	1,041,643
Accretion of discounts to redemption value of I convertible preferred stock					2,689,931	3,248,901
Accrual of Series I Convertible Preferred Stock Dividends					240,900
Deemed dividend Series H-7 warrants					11,508,195	662,551
Accretion of discounts to redemption value of H-7 convertible preferred stock						1,686,854
Accrued Series H-7 preferred stock redemption payable						11,878,064
Non-cash redemption of Series H-7 preferred stock						394,615
Accrued waiver fee related to Series H-7 preferred stock						350,000
Prepaid insurance financed through accrued expenses						110,208
Supplemental disclosure of restricted cash:
Cash and cash equivalents	3,635,883		5,132,867		3,635,883	5,132,867	$ 4,981,798
Restricted cash	5,114,563		109,576		5,114,563	109,576
Total cash, cash equivalents and restricted cash	$ 8,750,446		$ 5,242,443		$ 8,750,446	$ 5,242,443

Condensed Consolidated Balance Sheets (Unaudited) - USD ($)	Jun. 30, 2026	Dec. 31, 2025
Current assets:
Cash and cash equivalents	$ 3,635,883	$ 4,981,798
Restricted cash	5,114,563	110,264
Marketable securities	18,035,777	3,168,362
Prepaid expenses and other current assets	5,566,896	951,175
Total current assets	32,353,119	9,211,599
Operating lease – right-of-use asset	116,962	227,171
Intangible assets	17,238,716
Digital assets		1,948,999
Deposits and other assets		20,883
Total assets	49,708,797	11,408,652
Current liabilities:
Accounts payable	988,682	916,685
Accrued expenses and other current liabilities	585,946	476,592
Current portion lease obligation – operating lease	162,336	250,517
Total current liabilities	1,736,964	1,643,794
Derivative liability	89,000	19,000
Anti-dilution liability	19,552,529
Lease obligation - operating lease, net of current portion		33,225
Total liabilities	21,378,493	1,696,019
Stockholders’ equity:
Preferred stock, value
Common Stock, ($0.0001 par value; authorized – 1,200,000,000 and 200,000,000 shares as of June 30, 2026, and December 31, 2025, respectively; issued and outstanding – 6,663,912 and 1,455,975 shares as of June 30, 2026, and December 31, 2025, respectively)	666	146
Additional paid-in capital	164,236,279	141,884,878
Accumulated deficit	(153,071,170)	(138,174,663)
Total stockholders’ equity	11,165,775	3,710,361
Total liabilities, mezzanine equity and stockholders’ equity	49,708,797	11,408,652
Series H-7 Convertible Preferred Stock [Member]
Mezzanine equity:
Redeemable preferred stock, value		1,551,232
Series I Convertible Preferred Stock [Member]
Mezzanine equity:
Redeemable preferred stock, value	417,833	4,451,040
Series K Convertible Preferred Stock [Member]
Mezzanine equity:
Redeemable preferred stock, value	11,110,676
Series J Convertible Preferred Stock [Member]
Mezzanine equity:
Redeemable preferred stock, value	5,636,020
Series H Convertible Preferred Stock [Member]
Stockholders’ equity:
Preferred stock, value
Convertible Preferred Stock Series H-3 [Member]
Stockholders’ equity:
Preferred stock, value
Series H-6 Convertible Preferred Stock [Member]
Stockholders’ equity:
Preferred stock, value