Company: CPSH
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0001437749-25-024312
Chunk: 13

Company: CPS TECHNOLOGIES CORP/DE/
Filing Date: 2025-08-01
Form: 10-Q
Item: Part I, Item 1
Chunk 13
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’s liquid assets at June 29, 2025 consist of cash and cash equivalents of $2,374 and marketable debt securities with a fair value of $1,045. This compares to cash and cash equivalents at December 28, 2024 of $3,281 and $1,031 marketable debt securities held at December 28, 2024. While cash is down from the end of 2024, it has moved in a “ U” shaped pattern with a reduction to $1.9 million at the end of Q1 2025 now recovering to about $2.4 million at the end of Q2 2025. We expect this recovery to continue.

Accounts receivable at June 28, 2025 totaled $5,603 compared with $4,858 at December 28, 2024. Days Sales Outstanding (DSO) decreased from 76 days at the end of 2024 to 67 days at the end of Q2 2025. The decrease in DSO was due to increasing sales volumes as we neared the end of 2024. As a result our receivables at the end of 2024 were a higher percentage of than if revenue was spread out evenly during the period. The accounts receivable balances at December 28, 2024, and June 28, 2025, are both net of an allowance for doubtful accounts of $10.

Inventories totaled $5,198 at June 28, 2025 compared with inventory totaling $4,331 at December 28, 2024. The inventory turnover in the most recent four quarters ending Q2 2025 was 5.2 times (based on a 5 quarter end average) compared with 4.8 times averaged during the four quarters of 2024.

The Company expects it will continue to be able to fund its operations for the remainder of 2025 from operations and existing cash balances.

The Company continues to sell to a limited number of customers and the loss of any one of these customers could cause the Company to require additional external financing. Failure to generate sufficient revenues, raise additional capital or reduce certain discretionary spending could have a material adverse effect on the Company’s ability to achieve its business objectives.

Management believes that existing cash balances will be sufficient to fund our cash requirements for the foreseeable future. However, there is no assurance that we will be able to generate sufficient revenues or reduce certain discretionary spending in the event that planned operational goals are not met