Company: CPSH
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0001437749-25-032553
Chunk: 5

Company: CPS TECHNOLOGIES CORP/DE/
Filing Date: 2025-10-31
Form: 10-Q
Item: Part I, Item 1
Chunk 5
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 Company recognized $44,480and $249,922, respectively, as shared-based compensation expense related to previously granted shares under the Plan.

(8) Inventories

Inventories consist of the following:

                                September 27,                     December 28,                 
                                2025                              2024                         
 ───────────────────────────────────────────────────────────────────────────────────────────────
  Raw materials                 $                  2,422,339      $                 2,625,305  
  Work in process                                  3,175,806                        1,880,396  
  Finished goods                                     328,395                          343,722  
  Total inventory                                  5,926,541                        4,849,423  
  Reserve for obsolescence                         ( 542,860                        ( 518,357  
  Inventories, net              $                  5,383,680      $                 4,331,066  

(9) Accrued Expenses

Accrued expenses consist of the following:

                                            September 27,                     December 28,               
                                            2025                              2024                       
 ─────────────────────────────────────────────────────────────────────────────────────────────────────────
  Accrued legal and accounting              $                     96,450      $                 138,600  
  Accrued payroll and related expenses                           635,051                        254,737  
  Accrued product returns                                        465,696                        429,617  
  Accrued other                                                  101,071                         90,325  
                                            $                  1,298,268      $                 913,279  

(10) Line of Credit

The Company has a $3.0million revolving line of credit (LOC) with Rockland Trust Company. The LOC is secured 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 (7.25% atSeptember 27, 2025). OnSeptember 27, 2025, 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 line of credit remains in effect and has been extended to August 5, 2026.

(11) 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 assembl