Company: CPSH
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0001437749-25-032553
Chunk: 2

Company: CPS TECHNOLOGIES CORP/DE/
Filing Date: 2025-10-31
Form: 10-Q
Item: Part I, Item 1
Chunk 2
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  Common shares                                                                                                                                                         
  Outstanding                                                   14,527,126                          14,525,664                             14,526,349       14,521,365  
  Dilutive effect of stock options                                 147,257                                  --                                 72,227               --  
  Total Shares                                                  14,674,384                          14,525,664                             14,598,576       14,521,365  
  Diluted EPS                           $                             0.01      $                       ( 0.07      $                            0.03           ( 0.15  

(6)Commitments & Contingencies

Commitments

Operating Leases

The Company has onereal estate lease now expiring in February 2028. In August 2025 the Company exercised its option to extend the lease term for two additional years. CPS also has a few other leases for equipment which are minor in nature and are generally short-term in duration. Noneof these equipment leases have been capitalized as the Company elected an accounting policy for short-term leases, which allows lessees to avoid recognizing right-of-use assets and liabilities for leases with terms of12months or fewer.

The real estate lease expiring in2028(the “ Norton facility lease”) is included as a right-of-use lease asset and corresponding lease liability on the balance sheet. This asset and liability was recognized based on the present value of lease payments over the lease term using the Company’s incremental borrowing rate at commencement date, for the portion expiring in February 2026, and the option exercise date, for the final two years of the lease. The Company’s lease agreements do notcontain any material residual value guarantees or material restrictive covenants.

The Norton facility lease comprises approximately38thousand square feet. The lease is triple net lease wherein the Company is responsible for payment of all real estate taxes, operating costs and utilities. The Company also has two, two year options to renew the lease inMarch 2028and again inMarch 2030throughFebruary 2032. The Company is not reasonably certain these extensions will be exercised at this time, and therefore are not included in the lease asset or liability. Annual rental payments range from $165thousand to $169thousand through maturity.

The following table presents information about the amount, timing and uncertainty of cash flows arising from the Company’s capitalized operating lease as ofSeptember 27, 2025:

  (Dollars in Thousands)                                             September 27,