Company: CPSH
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0001437749-25-032553
Chunk: 3

Company: CPS TECHNOLOGIES CORP/DE/
Filing Date: 2025-10-31
Form: 10-Q
Item: Part I, Item 1
Chunk 3
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 2025                      
 ───────────────────────────────────────────────────────────────────────────────────────────────
  Maturity of capitalized lease liabilities                          Lease payments            
  2025                                                                                     41  
  2026                                                                                    168  
  2027                                                                                    169  
  2028                                                                                     28  
  Total undiscounted operating lease payments                        $                    406  
  Less: Imputed interest                                                                 ( 36  
  Present value of operating lease liability                         $                    370  
  Balance Sheet Classification                                                                 
  Current lease liability                                            $                    161  
  Long-term lease liability                                                               209  
  Total operating lease liability                                    $                    370  
  Other Information                                                                            
  Remaining lease term for capitalized operating lease (months)                            29  
  Discount rate for capitalized operating leases                                          7.3  

Operating Lease Costs and Cash Flows

Operating lease cost and cash paid was $41thousand during the thirdquarter of2025and $124thousand for the ninemonths ended September 27, 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 endedSeptember 27, 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 endedSeptember 27, 2025. For the nine months endedSeptember 27,2025a total of115,000stock options and75,000stock options were granted to employees and directors, respectively. During the quarter endedSeptember 28, 2024, nostock options were granted to employees under the Company’s2020Equity In