Company: CPSH
Filing Date: 2025-10-08
Form Type: 424B5
Source: 0001437749-25-030673
Chunk: 38

Company: CPS TECHNOLOGIES CORP/DE/
Filing Date: 2025-10-08
Form: 424B5
Chunk 38
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 competitors with greater financial resources may decrease prices, thereby putting us under financial pressure.

We may experience increasing price pressure.

Our historical business strategy for many of our products has focused on product performance and customer service rather than on price. As a result of budgetary constraints, many of our customers are extremely price sensitive when purchasing our products. Recent inflationary trends could further exacerbate this issue. If we are unable to obtain prices that allow us to continue to compete on the basis of product performance and customer service, our profit margins will be reduced.

Manufacturing interruptions or delays could affect our ability to meet customer demand and lead to higher costs.

We may experience significant interruptions of our manufacturing operations, delays in our ability to deliver products or services, increased costs or customer order cancellations as a result of:

| l | the failure or inability of suppliers to timely deliver sufficient quantities of materials and components on a cost-effective basis; |

| l | volatility in the availability and cost of materials; |

| l | unforeseen equipment failures resulting in the need to delay or outsource certain production processes; |

| l | difficulties or delays in obtaining required import or export approvals; |

| l | information technology or infrastructure failures; |

| l | natural disasters or other events beyond our control (such as earthquakes, floods or storms, regional economic downturns, pandemics, social unrest, political instability, terrorism, or acts of war); and |

| l | the effects of a global pandemic on our employees, suppliers and other third-parties upon which we rely. |

Continued growth could result in the need to move or expand our facilities. The costs of such a move or expansion could be significant to our profitability.

Our ability to meet our customer’s needs including the on-time shipment of products, is paramount to our success. Our current facility may not be able to adequately handle future growth and our ability to meet the needs of our customers. This could result in our having to relocate to a new facility which could have a material impact on our profitability.

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We have made investments in our proprietary technologies. If third parties violate our proprietary rights, or accuse us ofinfringing upon their proprietary rights, such events could result in a loss of value of some of our intellectual property or costly litigation.

Our success is dependent in part on our technologies and our other proprietary rights. We believe that while patents can be useful and may be utilized by us in the future, they are not always necessary or feasible to protect our intellectual property. The