Company: CPSH
Filing Date: 2025-05-02
Form Type: 10-Q
Source: 0001437749-25-014320
Chunk: 4

Company: CPS TECHNOLOGIES CORP/DE/
Filing Date: 2025-05-02
Form: 10-Q
Item: Part I, Item 1
Chunk 4
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 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% at March 29, 2025). OnMarch 29, 2025 and March 30, 2024, 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 LOC remains in effect until terminated per mutual agreement by both parties. Total interest expense forQ12025was $0 and was $0 forQ12024.

(11) Income Taxes

A valuation allowance against deferred tax assets is required to be established or maintained when it is "more likely than not"that all or a portion of deferred tax assets will notbe realized.

The Company believes that it is “more likely than not” that the Company will be able to fully utilize the deferred tax asset. For the firstquarter of2025the deferred tax asset was decreased $84for the estimated tax onQ1net income.

(12) Segment Reporting

The Company views its operations and manages its business as one segment. The Company produces and sells advanced material solutions, primarily metal matrix composites, to assemblers of high density electronics and other specialty components and subassemblies. The Company also assembles housings and packages for hybrid circuits, selling to the same customers mentioned above. These customers represent a single market or segment with similar stringent and well-defined requirements. The Company’s customers, in turn, sell the components and subassemblies which incorporate the products into many different end markets, however, these end markets are twoto threelevels removed from the Company. The Company also sells armor strike faces to armor manufacturers, using the same manufacturing process used in its other product solutions. The Company makes operating decisions and assesses financial performance only for the Company as a whole and does notmake operating decisions or assess financial performance by the end markets which ultimately use the products. Our chief operating decision maker (CODM) is Brian Mackey, our President and CEO. The Company's CODM regularly reviews financial information presented and does not evaluate the Company's operating segment using asset or liability information. Instead, the CODM uses revenue, gross margin, and net income or loss to allocate operating and capital resources and assess performance by comparing actual results to historical results and previously forecasted financial information.

The following table presents segment information for the Company's single reporting segment:

                                                     March 29, 2025