Company: CPSH
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0001437749-25-024312
Chunk: 4

Company: CPS TECHNOLOGIES CORP/DE/
Filing Date: 2025-08-01
Form: 10-Q
Item: Part I, Item 1
Chunk 4
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,540, respectively, as shared-based compensation expense related to previously granted shares under the Plan.

During the threeand sixmonths endedJune 29, 2024, the Company recognized $44,480and $205,442, respectively, as shared-based compensation expense related to previously granted shares under the Plan.

(8) Inventories

Inventories consist of the following:

                                June 28,                     December 28,                 
                                2025                         2024                         
 ──────────────────────────────────────────────────────────────────────────────────────────
  Raw materials                 $             2,719,237      $                 2,625,305  
  Work in process                             2,678,705                        1,880,396  
  Finished goods                                351,716                          343,722  
  Total inventory                             5,749,658                        4,849,423  
  Reserve for obsolescence                    ( 551,412                        ( 518,357  
  Inventories, net              $             5,198,246      $                 4,331,066  

(9) Accrued Expenses

Accrued expenses consist of the following:

                                            June 28,                     December 28,               
                                            2025                         2024                       
 ────────────────────────────────────────────────────────────────────────────────────────────────────
  Accrued legal and accounting              $                77,177      $                 138,600  
  Accrued payroll and related expenses                      354,631                        254,737  
  Accrued product returns                                   500,283                        429,617  
  Accrued other                                             104,372                         90,325  
                                            $             1,036,463      $                 913,279  

(10) Line of Credit

The Company has a $3.0million revolving line of credit (LOC) with Rockland Trust Company. The LOC is secured by the accounts receivable and other assets of the Company and has an interest rate of the National Prime Rate as published by the Wall Street Journal (7.5% atJune 28, 2025). OnJune 28, 2025, the Company had $0of borrowings under this LOC and its borrowing base at the time would have permitted an additional $3.0million to have been borrowed. The line of credit remains in effect and has been extended to August 5, 2025.

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