false 0000814676 0000814676 2024-11-01 2024-11-01
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 8-K
 
Current Report
 
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
 
 
Date of Report (Date of earliest event reported): November 1, 2024
 
 
CPS TECHNOLOGIES CORP.
(Exact Name of Registrant as Specified in its Charter)
 
 
Delaware
0-16088
04-2832509
(State or other jurisdiction of incorporation)
(Commission File Number)
(IRS Employer Identification No.)
 
111 South Worcester Street, Norton, Massachusetts
02766
(Address of principal executive offices)
(Zip Code)
 
Registrants telephone number, including area code
508-222-0614
 
(Former name or former address, if changed since last report.)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
 
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
Soliciting material pursuant to Rule 14a-12 under the exchange Act (17 CFR 240.14a-12)
 
Pre-commencement communications pursuant to rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
Pre-commencement communications pursuant to Rule 13e-4( c)) under the Exchange Act (17 CFR 240.13e-4(c)).
 
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
 
Securities registered pursuant to Section 12(b) of the Act: 
 
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Common Stock, $0.01 par value
CPSH
Nasdaq Capital Market
 
 

 
Item 2.02 Results of Operations and Financial Condition
 
On October 30, 2024, the Company issued a press release announcing its financial results for the quarter and nine months ended September 28, 2024. A copy of the press release is attached hereto as Exhibit 99 and is incorporated herein in its entirety by reference.
 
The information in this Item 2.02, including Exhibit 99.1 attached hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (The “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such a filing. 
 
Cautionary Note Regarding Forward-Looking Statements.
Except for historical information contained in the press release attached as an exhibit hereto, the press release contains forward-looking statements which involve certain risks and uncertainties that could cause actual results to differ materially from those expressed or implied by these statements. Please refer to the cautionary note in the press release regarding these forward-looking statements.
 
Item 8.01 Other Events 
 
Exhibit 99.2 is incorporated herein in its entirety by reference. 
 
Item 9.01 Financial Statements and Exhibits
 
EXHIBIT
NUMBER
DESCRIPTION
99.1
99.2
104
Cover Page Interactive Data File (embedded within the Inline XBRL document)
 
 

 
SIGNATURE
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
 
CPS Technologies Corp.
(Registrant)
Date:  November 1, 2024
/s/ Charles K. Griffith, Jr.
Charles K. Griffith Jr.
Chief Financial Officer
 
 

Exhibit 99.1

 

FOR RELEASE: IMMEDIATE

 

 

CPS Technologies Corporation Announces Third Quarter 2024 Financial Results

 

Set for Improved Financial Performance in Fourth Quarter and Beyond

 

Norton, Massachusetts – October 30, 2024 – CPS Technologies Corporation (NASDAQ:CPSH) (“CPS” or the “Company”) today announced financial results for the fiscal third quarter ended September 28, 2024.

 

Third Quarter Summary

 

 

Revenue of $4.2 million for the third quarter of 2024 versus $6.3 million in the prior-year period, reflecting lower overall shipments due to the previously-announced end of the Company’s HybridTech Armor® contract with Kinetic Protection for the U.S. Navy

 

 

Gross margin of (12) percent versus 20 percent in the third quarter of 2023, largely reflecting lower manufacturing efficiencies as well as start-up costs tied to hiring and training of a third shift, the benefit of which will be seen in the fourth quarter and beyond.

 

 

Operating loss of $1.5 million for the quarter ended September 28, 2024 compared to an operating profit of $0.1 million in the prior-year period

 

 

Recently won a Phase II contract from the U.S. Department of Energy, worth $1.1 million over 24 months, to continue development of “Modular Radiation Shielding for Transportation and Use of Microreactors”

 

 

Secured a new $200K development contract from the U.S. Naval Air Systems Command, or NAVAIR, under which CPS will continue development of metal matrix composite solutions for applications requiring high strength at reduced weight.

 

 

The Company today announced that it has received an award, valued at approximately $12 million, from a longstanding global semiconductor customer to provide power module components and related solutions. See separate press release for further details.

 

“While this quarter was negatively impacted by the costs related to staffing and training a third operating shift, we are optimistic about significantly improved performance in the fourth quarter and beyond,” said Brian Mackey, President and CEO. “We recently won another Phase II award from the U.S. government – with the Department of Energy – and just today announced a $12.0 million power module component contract, with a well-known global semiconductor manufacturer. Our third shift began production in the third quarter, though the impact on revenue will not be felt until the fourth quarter. We anticipate higher deliveries going forward. Overall, our book to bill ratio – currently 1.22 – provides confidence that we are weathering the storm of headwinds caused by the end of our HybridTech Armor® contract, supply chain inefficiencies, and a challenging staffing environment. We are now confident that the Company’s long-term strategy of expanding its product portfolio, working with the government to fund innovative R&D initiatives, and growing our core product lines are starting to bear fruit. We appreciate our investors’ continued patience and interest, and we look forward to the quarters to come.”

 

Results of Operations

CPS reported revenue of $4.2 million in the third quarter of fiscal 2024 versus $6.3 million in the prior-year period, primarily reflecting the previously-announced completion of the Company’s HybridTech Armor® contract with Kinetic Protection, the prime contractor for the U.S. Navy; another major customer has also purchased less, year-over-year, as it works through excess inventory.

 

Gross loss was $0.5 million, or (12) percent of revenue, versus a gross profit of $1.2 million, or 20 percent of revenue, in the fiscal 2023 third quarter, with the negative variance year-over-year due to lower overall revenue and reduced manufacturing efficiencies, along with costs associated with staffing and training a third shift that began operating the last week of August. During the quarter, this new staff worked alongside other workers for training, impacting overall cost of goods sold without a corresponding top line revenue component in the quarter.

 

The Company reported an operating loss of $1.5 million in the fiscal 2024 third quarter compared with an operating profit of $0.1 million in the prior-year period. Reported net loss was $1.0 million, or $(0.07) per diluted share, versus net income of $0.2 million, or $0.01 per diluted share, in the quarter ended September 30, 2023.

 

Conference Call

The Company will be hosting its third quarter 2024 earnings call at 9:00 am tomorrow, October 31, 2024. Those interested in participating in the conference call should dial the following: 

Call in Number: 1-844-943-2942

Participant Passcode: 475242

 

 

 

The Company encourages those who wish to participate to call in 10 minutes before the scheduled start time to ensure the operator can connect all participants.

 

About CPS

CPS is a technology and manufacturing leader in producing high-performance materials solutions for its customers. The company’s products and intellectual property address critical needs in a variety of applications, including electric trains and subway cars, wind turbines, hybrid vehicles, electric vehicles, Navy ships, the smart electric grid, 5G infrastructure and others. CPS hermetic packages can be found in many Aerospace and Satellite applications.  CPS’ armor products provide exceptional ballistic protection and environmental durability at very light weight. CPS is committed to innovation and to supporting our customers in building solutions for the transition to clean energy.

 

 

Safe Harbor

Statements made in this document that are not historical facts or which apply prospectively, including those relating to 2024 financial results, are forward-looking statements that involve risks and uncertainties. These forward-looking statements are identified by the use of terms and phrases such as "will," "intends," "believes," "expects," "plans," "anticipates" and similar expressions. Investors should not rely on forward looking statements because they are subject to a variety of risks and uncertainties and other factors that could cause actual results to differ materially from the company's expectation. Additional information concerning risk factors is contained from time to time in the company's SEC filings, including its Annual Report on Form 10-K and other periodic reports filed with the SEC. Forward-looking statements contained in this press release speak only as of the date of this release. Subsequent events or circumstances occurring after such date may render these statements incomplete or out of date. The company expressly disclaims any obligation to update the information contained in this release.

 

 

CPS Technologies Corporation                                      
111 South Worcester Street
Norton, MA 02766

www.cpstechnologysolutions.com

 

Investor Relations:

Chris Witty

646-438-9385

cwitty@darrowir.com

 

 

 

 

CPS TECHNOLOGIES CORPORATION

Statements of Operations (Unaudited)

 

   

Three Months Ended

   

Nine Months Ended

 
   

September 28,

   

September 30,

   

September 28,

   

September 30,

 
   

2024

   

2023

   

2024

   

2023

 

Revenues:

                               

Product sales

  $ 4,247,116     $ 6,285,041     $ 15,190,063     $ 20,803,447  
                                 

Total revenues

    4,247,116       6,285,041       15,190,063       20,803,447  
                                 

Cost of product sales

    4,770,548       5,049,177       15,037,177       15,126,621  
                                 

Gross profit (loss)

    (523,432 )     1,235,864       152,886       5,676,826  
                                 

Selling, general, and administrative expense

    963,064       1,105,227       3,214,831       4,121,099  
                                 

Income (loss) from operations

    (1,486,496 )     130,637       (3,061,945 )     1,555,727  
                                 

Interest income (expense), net

    71,650       78,181       241,686       176,325  

Other income (expense), net

    (676 )     (1,228 )     159       (4,130 )
                                 

Net income (loss) before income tax

    (1,415,522 )     207,590       (2,820,100 )     1,727,922  

Income tax provision (benefit)

    (372,683 )     36,509       (679,803 )     497,137  
                                 

Net income (loss)

  $ (1,042,839 )   $ 171,081     $ (2,140,297 )   $ 1,230,785  

Other comprehensive income

                               

Net unrealized gains on available for sale securities

    8,745       --       17,446       --  

Total other comprehensive income

    8,745       --       17,446       --  

Total comprehensive income (loss)

  $ (1,034,094 )   $ 171,081     $ (2,122,851 )   $ 1,230,785  
                                 

Net income (loss) per basic common share

  $ (0.07 )   $ 0.01     $ (0.15 )   $ 0.08  
                                 

Weighted average number of basic common shares outstanding

    14,525,664       14,517,364       14,520,827       14,487,873  
                                 

Net income (loss) per diluted common share

  $ (0.07 )   $ 0.01     $ (0.15 )   $ 0.08  
                                 

Weighted average number of diluted common shares outstanding

    14,525,664       14,636,241       14,520,827       14,632,591  

 

 

 

 

CPS TECHNOLOGIES CORP.

Balance Sheets (Unaudited)

 

   

September 28,

   

December 30,

 
   

2024

   

2023

 

ASSETS

               
                 

Current assets:

               

Cash and cash equivalents

  $ 4,689,004     $ 8,813,626  

Marketable securities, at fair value

    1,020,952        

Accounts receivable-trade, net

    3,654,549       4,389,155  

Accounts receivable-other

    362,312       83,191  

Inventories, net

    4,433,412       4,581,930  

Prepaid expenses and other current assets

    506,126       276,349  
                 

Total current assets

    14,666,355       18,144,251  
                 

Property and equipment:

               

Production equipment

    9,953,702       11,271,982  

Furniture and office equipment

    891,921       952,883  

Leasehold improvements

    988,804       985,649  
                 

Total cost

    11,834,427       13,210,514  
                 

Accumulated depreciation and amortization

    (10,200,302 )     (11,936,004 )

Construction in progress

    448,184       281,629  
                 

Net property and equipment

    2,082,309       1,556,139  
                 

Right-of-use lease asset

    224,000       332,000  

Deferred taxes, net

    2,249,985       1,569,726  
                 

Total assets

  $ 19,222,649     $ 21,602,116  

 

   

September 28,

   

December 30,

 
   

2024

   

2023

 

LIABILITIES AND STOCKHOLDERS` EQUITY

               
                 

Current liabilities:

               

Note payable, current portion

  $ 20,103     $ 46,797  

Accounts payable

    2,497,055       2,535,086  

Accrued expenses

    840,757       1,075,137  

Deferred revenue

    160,412       251,755  

Lease liability, current portion

    160,000       160,000  
                 

Total current liabilities

    3,678,327       4,068,775  
                 

Note payable less current portion

          8,090  

Deferred revenue – long term

    31,277       31,277  

Long term lease liability

    64,000       172,000  
                 

Total liabilities

    3,773,604       4,280,142  
                 

Commitments and contingencies (note 7)

               
                 

Stockholders` equity:

               

Common stock, $0.01 par value, authorized 20,000,000 shares; issued 14,661,487 shares; outstanding 14,525,960 shares at September 28, 2024 and issued 14,601,487 shares; outstanding 14,519,215 shares at December 30, 2023

    146,615       146,015  

Preferred stock, no shares issued or outstanding

           

Additional paid-in capital

    40,520,215       40,180,893  

Accumulated other comprehensive income

    17,446        

Accumulated deficit

    (24,895,093 )     (22,754,796 )

Less cost of 135,527 common shares repurchased at September 28, 2024 and 82,272 common shares repurchased at December 30, 2023

    (340,138 )     (250,138 )
                 

Total stockholders` equity

    15,449,045       17,321,974  
                 

Total liabilities and stockholders` equity

  $ 19,222,649     $ 21,602,116  

 

 

 

Exhibit 99.2

 

CPS TECHNOLOGIES CORPORATION

Statements of Operations (Unaudited)

 

   

Three Months Ended

   

Nine Months Ended

 
   

September 28,

   

September 30,

   

September 28,

   

September 30,

 
   

2024

   

2023

   

2024

   

2023

 

Revenues:

                               

Product sales

  $ 4,247,116     $ 6,285,041     $ 15,190,063     $ 20,803,447  
                                 

Total revenues

    4,247,116       6,285,041       15,190,063       20,803,447  
                                 

Cost of product sales

    4,770,548       5,049,177       15,037,177       15,126,621  
                                 

Gross profit (loss)

    (523,432 )     1,235,864       152,886       5,676,826  
                                 

Selling, general, and administrative expense

    963,064       1,105,227       3,214,831       4,121,099  
                                 

Income (loss) from operations

    (1,486,496 )     130,637       (3,061,945 )     1,555,727  
                                 

Interest income (expense), net

    71,650       78,181       241,686       176,325  

Other income (expense), net

    (676 )     (1,228 )     159       (4,130 )
                                 

Net income (loss) before income tax

    (1,415,522 )     207,590       (2,820,100 )     1,727,922  

Income tax provision (benefit)

    (372,683 )     36,509       (679,803 )     497,137  
                                 

Net income (loss)

  $ (1,042,839 )   $ 171,081     $ (2,140,297 )   $ 1,230,785  

Other comprehensive income

                               

Net unrealized gains on available for sale securities

    8,745       --       17,446       --  

Total other comprehensive income

    8,745       --       17,446       --  

Total comprehensive income (loss)

  $ (1,034,094 )   $ 171,081     $ (2,122,851 )   $ 1,230,785  
                                 

Net income (loss) per basic common share

  $ (0.07 )   $ 0.01     $ (0.15 )   $ 0.08  
                                 

Weighted average number of basic common shares outstanding

    14,525,664       14,517,364       14,520,827       14,487,873  
                                 

Net income (loss) per diluted common share

  $ (0.07 )   $ 0.01     $ (0.15 )   $ 0.08  
                                 

Weighted average number of diluted common shares outstanding

    14,525,664       14,636,241       14,520,827       14,632,591  

 

 

 

 

CPS TECHNOLOGIES CORP.

Balance Sheets (Unaudited)

 

   

September 28,

   

December 30,

 
   

2024

   

2023

 

ASSETS

               
                 

Current assets:

               

Cash and cash equivalents

  $ 4,689,004     $ 8,813,626  

Marketable securities, at fair value

    1,020,952        

Accounts receivable-trade, net

    3,654,549       4,389,155  

Accounts receivable-other

    362,312       83,191  

Inventories, net

    4,433,412       4,581,930  

Prepaid expenses and other current assets

    506,126       276,349  
                 

Total current assets

    14,666,355       18,144,251  
                 

Property and equipment:

               

Production equipment

    9,953,702       11,271,982  

Furniture and office equipment

    891,921       952,883  

Leasehold improvements

    988,804       985,649  
                 

Total cost

    11,834,427       13,210,514  
                 

Accumulated depreciation and amortization

    (10,200,302 )     (11,936,004 )

Construction in progress

    448,184       281,629  
                 

Net property and equipment

    2,082,309       1,556,139  
                 

Right-of-use lease asset

    224,000       332,000  

Deferred taxes, net

    2,249,985       1,569,726  
                 

Total assets

  $ 19,222,649     $ 21,602,116  

 

   

September 28,

   

December 30,

 
   

2024

   

2023

 

LIABILITIES AND STOCKHOLDERS` EQUITY

               
                 

Current liabilities:

               

Note payable, current portion

  $ 20,103     $ 46,797  

Accounts payable

    2,497,055       2,535,086  

Accrued expenses

    840,757       1,075,137  

Deferred revenue

    160,412       251,755  

Lease liability, current portion

    160,000       160,000  
                 

Total current liabilities

    3,678,327       4,068,775  
                 

Note payable less current portion

          8,090  

Deferred revenue – long term

    31,277       31,277  

Long term lease liability

    64,000       172,000  
                 

Total liabilities

    3,773,604       4,280,142  
                 

Commitments and contingencies (note 7)

               
                 

Stockholders` equity:

               

Common stock, $0.01 par value, authorized 20,000,000 shares; issued 14,661,487 shares; outstanding 14,525,960 shares at September 28, 2024 and issued 14,601,487 shares; outstanding 14,519,215 shares at December 30, 2023

    146,615       146,015  

Preferred stock, no shares issued or outstanding

           

Additional paid-in capital

    40,520,215       40,180,893  

Accumulated other comprehensive income

    17,446        

Accumulated deficit

    (24,895,093 )     (22,754,796 )

Less cost of 135,527 common shares repurchased at September 28, 2024 and 82,272 common shares repurchased at December 30, 2023

    (340,138 )     (250,138 )
                 

Total stockholders` equity

    15,449,045       17,321,974  
                 

Total liabilities and stockholders` equity

  $ 19,222,649     $ 21,602,116  

 

 

 

 
v3.24.3
Document And Entity Information
Nov. 01, 2024
Document Information [Line Items]  
Entity, Registrant Name CPS TECHNOLOGIES CORP.
Document, Type 8-K
Document, Period End Date Nov. 01, 2024
Entity, Incorporation, State or Country Code DE
Entity, File Number 0-16088
Entity, Tax Identification Number 04-2832509
Entity, Address, Address Line One 111 South Worcester Street
Entity, Address, City or Town Norton
Entity, Address, State or Province MA
Entity, Address, Postal Zip Code 02766
City Area Code 508
Local Phone Number 222-0614
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Entity, Emerging Growth Company false
Title of 12(b) Security Common Stock
Trading Symbol CPSH
Security Exchange Name NASDAQ
Amendment Flag false
Entity, Central Index Key 0000814676

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