Company: CPSH
Filing Date: 2025-05-02
Form Type: 10-Q
Source: 0001437749-25-014320
Chunk: 1

Company: CPS TECHNOLOGIES CORP/DE/
Filing Date: 2025-05-02
Form: 10-Q
Item: Part I, Item 1
Chunk 1
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, high-performance microprocessor market, motor controller market, and other microelectronic and defense markets.

(2) Summary of Significant Accounting Policies

As permitted by the rules of the Securities and Exchange Commission applicable to quarterly reports on Form10-Q, these notes are condensed and do notcontain all disclosures required by generally accepted accounting principles.

The accompanying financial statements are unaudited. In the opinion of management, the unaudited financial statements of CPS reflect all normal recurring adjustments which are necessary to present fairly the financial position and results of operations for such periods.

The Company’s balance sheet atDecember 28, 2024has been derived from the audited financial statements at that date, but does notinclude all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements.

For further information, refer to the financial statements and footnotes thereto included in the Registrant’s Annual Report on Form10-K for the year endedDecember 28, 2024and in CPS’s other SEC reports, which are accessible on the SEC’s website at www. sec. gov and the Company’s website at www. cpstechnologysolutions. com.

The results of operations for interim periods are notnecessarily indicative of the results to be expected for the full year.

(3) Marketable Securities

Investments consist of U. S. Treasury Bills with maturities up to one year. Since it is not currently managements intention to hold these debt securities until the maturity dates, these have been classified as available-for-sale (“ AFS”) and are recorded on the balance sheet at fair value, with changes in fair value recorded as a component of other comprehensive income.

(4) Fair value of Marketable Securities

ASC 820, Fair Value Measurements (“ ASC 820”) states that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability. The three-tiered fair value hierarchy, which prioritizes which inputs should be used in measuring fair value, is comprised of: (Level I) observable inputs such as quoted prices in active markets; (Level II) inputs other than quoted prices in active markets that are observable either directly or indirectly and (Level III) unobservable inputs for which there is little or no market data. The fair value hierarchy requires the use