Company: CPSH
Filing Date: 2025-05-02
Form Type: 10-Q
Source: 0001437749-25-014320
Chunk: 2

Company: CPS TECHNOLOGIES CORP/DE/
Filing Date: 2025-05-02
Form: 10-Q
Item: Part I, Item 1
Chunk 2
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ed-average remaining lease term for capitalized operating leases (in months)                     11  
  Weighted-average discount rate for capitalized operating leases                                       6.6  

Operating Lease Costs and Cash Flows

Operating lease cost and cash paid was $41thousand during the firstquarter of2025. This cost is related to its long-term operating lease. All other short-term leases were immaterial.

Finance Leases

The Company does nothave any finance leases.

(7)Share-Based Payments

The Company measures the cost of employee services received in exchange for an award of equity instruments based on the grant date fair value of the award. That cost is recognized over the period during which an employee is required to provide services in exchange for the award, the requisite service period (usually the vesting period). The Company provides an estimate of forfeitures at initial grant date. Reductions in compensation expense associated with the forfeited options are estimated at the date of grant, and this estimated forfeiture rate is adjusted periodically based on actual forfeiture experience. The Company uses the Black-Scholes option pricing model to determine the fair value of the stock options granted.

During the quarters endedMarch 29, 2025andMarch 30, 2024, a total of115,000and135,500stock options, respectively, were granted to employees under the Company’s2020Equity Incentive Plan (the “ Plan”) and a total of75,000and75,000stock options, respectively, were granted to outside directors during the quarters endedMarch 29, 2025and March 30, 2024.

During the quarters endedMarch 29, 2025and March 30, 2024, there were0options exercised.

During the quarters endedMarch 29, 2025and March 30, 2024, the Company repurchased0shares for employees to facilitate their exercise of stock options.

There were also1,083,300options outstanding at a weighted average price of $2.45with a weighted average remaining contractual term of7.6years as ofMarch 29, 2025and there were581,900shares exercisable at a weighted average price of $2.37with a weighted average remaining term of6.7years. There were1,097,900options outstanding at a weighted average price of $2.61with a weighted average remaining contractual term of7.1years as ofMarch 30, 2024and there were582,800shares exercisable at a