Company: CPSH
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0001437749-25-024312
Chunk: 2

Company: CPS TECHNOLOGIES CORP/DE/
Filing Date: 2025-08-01
Form: 10-Q
Item: Part I, Item 1
Chunk 2
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 The Company is not reasonably certain these extensions will be exercised at this time, and therefore are not included in the lease asset or liability. Annual rental payments range from $160thousand to $165thousand through maturity.

The following table presents information about the amount, timing and uncertainty of cash flows arising from the Company’s capitalized operating lease as ofJune 28, 2025:

  (Dollars in Thousands)                                             June 28, 2025            
 ──────────────────────────────────────────────────────────────────────────────────────────────
  Maturity of capitalized lease liabilities                          Lease payments           
  2025                                                                                    83  
  2026                                                                                    28  
  Total undiscounted operating lease payments                        $                   111  
  Less: Imputed interest                                                                 ( 3  
  Present value of operating lease liability                         $                   108  
  Balance Sheet Classification                                                                
  Current lease liability                                            $                   108  
  Long-term lease liability                                                                -  
  Total operating lease liability                                    $                   108  
  Other Information                                                                           
  Remaining lease term for capitalized operating lease (months)                            8  
  Discount rate for capitalized operating leases                                         6.6  

Operating Lease Costs and Cash Flows

Operating lease cost and cash paid was $41thousand during the secondquarter of2025and $83thousand for the sixmonths ended June 28, 2025. These costs are related to its long-term operating lease. All other short-term leases were immaterial.

Finance Leases

The company does nothave any finance leases.

(7)Share-Based Payments

The Company measures the cost of employee services received in exchange for an award of equity instruments based on the grant date fair value of the award. That cost is recognized over the period during which an employee is required to provide services in exchange for the award, the requisite service period (usually the vesting period). The Company provides an estimate of forfeitures at initial grant date. Reductions in compensation expense associated with the forfeited options are estimated at the date of grant, and this estimated forfeiture rate is adjusted periodically based on actual forfeiture experience. The company uses the Black-Scholes option pricing model to determine the fair value of the stock options granted.

During the quarter endedJune 28, 2025, nostock options were granted to employees under the Company’s2020Equity Incentive Plan Stock Incentive Plan (the “ Plan”) and nostock options were granted to outside directors during the quarter endedJune