Company: CPSH
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0001437749-25-024312
Chunk: 5

Company: CPS TECHNOLOGIES CORP/DE/
Filing Date: 2025-08-01
Form: 10-Q
Item: Part I, Item 1
Chunk 5
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) Segment Reporting

The Company views its operations and manages its business as onesegment. 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:

                                                     Three Months Ended                                                         Six Months Ended                                   
                                                     June 28, 2025                          June 29, 2024                       June 28, 2025                                      
 ───────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Product sales                                      $                       8,078,657      $                    5,030,313      $                     15,584,578       10,942,947  
  Cost of product sales                                                      6,742,341                           5,260,305                            13,017,261       10,266,629  
  Gross profit (loss)                                                        1,336,316                           ( 229,992                             2,567,317          676,318  
  Selling, general, and administrative expenses                              1,199,389                           1,084,995                             2,300,739        2,250,917  
  Income (loss) from operations                                                136,927                         ( 1,314,987                               266,578