Document_and_Entity_Informatio
Document and Entity Information (USD $) | 3 Months Ended | |
Mar. 29, 2014 | 12-May-14 | |
Document And Entity Information | ' | ' |
Entity Registrant Name | 'CPS Technologies Corp/DE/ | ' |
Entity Central Index Key | '0000814676 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 29-Mar-14 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--12-27 | ' |
Is Entity a Well-known Seasoned Issuer? | 'No | ' |
Is Entity a Voluntary Filer? | 'No | ' |
Is Entity's Reporting Status Current? | 'Yes | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Public Float | ' | $22,000,000 |
Entity Common Stock, Shares Outstanding | ' | 13,084,577 |
Document Fiscal Period Focus | 'Q1 | ' |
Document Fiscal Year Focus | '2014 | ' |
Balance_Sheets_Unaudited
Balance Sheets (Unaudited) (USD $) | Mar. 29, 2014 | Dec. 28, 2013 |
Adjustments to reconcile net income to cash used in operating activities | ' | ' |
Cash and cash equivalents | $856,719 | $1,571,054 |
Accounts receivable-trade, net | 4,490,388 | 2,900,457 |
Inventories, net | 2,208,982 | 2,183,699 |
Prepaid expenses and other current assets | 156,061 | 175,726 |
Deferred taxes | 531,377 | 649,420 |
Total current assets | 8,243,527 | 7,480,356 |
Property and equipment: | ' | ' |
Production equipment | 7,766,239 | 7,728,408 |
Furniture and office equipment | 397,988 | 383,990 |
Leasehold improvements | 759,819 | 759,819 |
Total cost | 8,924,046 | 8,872,217 |
Accumulated depreciation and amortization | -7,621,363 | -7,470,815 |
Construction in progress | 486,363 | 431,385 |
Net property and equipment | 1,789,046 | 1,832,787 |
Deferred taxes, non-current portion | 1,797,811 | 1,826,482 |
Total Assets | 11,830,384 | 11,139,625 |
Current liabilities: | ' | ' |
Accounts payable | 1,502,233 | 1,091,909 |
Accrued expenses | 1,066,213 | 1,106,813 |
Obligations under capital leases, current portion | 55,848 | 76,372 |
Total current liabilities | 2,624,294 | 2,275,094 |
Total liabilities | 2,624,294 | 2,275,094 |
Stockholders equity: | ' | ' |
Common stock, $0.01 par value, authorized 15,000,000 shares; issued 13,210,942 and 13,178,042 shares; outstanding 13,084,577 and 13,066,641 shares; at March 29, 2014 and December 28, 2013, respectively | 132,109 | 131,781 |
Additional paid-in capital | 34,416,460 | 34,278,757 |
Accumulated deficit | -25,070,713 | -25,318,332 |
Less cost of 126,365 and 111,401 common shares repurchased at March 29, 2014 and December 28, 2013, respectively | -271,766 | -227,675 |
Total stockholders equity | 9,206,090 | 8,864,531 |
Total liabilities and stockholders equity | $11,830,384 | $11,139,625 |
Balance_Sheets_Parenthetical
Balance Sheets (Parenthetical) (USD $) | Mar. 29, 2014 | Dec. 28, 2013 |
Statement of Financial Position [Abstract] | ' | ' |
Common Stock, authorized | 15,000,000 | 15,000,000 |
Common Stock, issued shares | 13,210,942 | 13,178,042 |
Common Stock, outstanding shares | 13,084,577 | 13,066,641 |
Common Stock, par value | $0.01 | $0.01 |
Statements_of_Operations_Unaud
Statements of Operations (Unaudited) (USD $) | 3 Months Ended | |
Mar. 29, 2014 | Mar. 30, 2013 | |
Income Statement [Abstract] | ' | ' |
Product sales | $5,952,080 | $4,913,347 |
Research and development under cooperative agreement | 33,971 | 117,731 |
Total revenues | 5,986,051 | 5,031,078 |
Cost of product sales | 4,419,360 | 4,018,754 |
Cost of research and development under cooperative agreement | 28,322 | 97,887 |
Gross Margin | 1,538,369 | 914,437 |
Selling, general, and administrative | 1,125,788 | 899,915 |
Income from operations | 412,581 | 14,522 |
Interest expense, net | -962 | -10,192 |
Income before taxes | 411,619 | 4,330 |
Income tax provision | 164,000 | 1,720 |
Net income | $247,619 | $2,610 |
Net income per basic common share | $0.02 | $0 |
Weighted average number of basic common shares outstanding | 13,069,577 | 12,871,759 |
Net income per diluted common share | $0.02 | $0 |
Weighted average number of diluted common shares outstanding | 13,696,583 | 13,112,626 |
Statements_of_Cash_Flows_Unaud
Statements of Cash Flows (Unaudited) (USD $) | 3 Months Ended | |
Mar. 29, 2014 | Mar. 30, 2013 | |
Cash flows from operating activities: | ' | ' |
Net income | $247,619 | $2,610 |
Depreciation and amortization | 150,547 | 161,835 |
Share-based compensation | 72,448 | 53,631 |
Deferred taxes | 164,000 | 1,720 |
Excess tax benefit from stock options exercised | -17,286 | ' |
Accounts receivable-trade | -1,589,931 | -1,267,966 |
Inventories | -25,283 | 404,146 |
Prepaid expenses and other current assets | 19,665 | 7,609 |
Accounts payable | 410,324 | 187,219 |
Accrued expenses | -40,600 | 407,812 |
Net cash used in operating activities | -608,497 | -41,384 |
Cash flows from investing activities: | ' | ' |
Purchases of property and equipment | -106,806 | -187,163 |
Net cash used in investing activities | -106,806 | -187,163 |
Cash flows from financing activities: | ' | ' |
Payment of capital lease obligations | -20,524 | -35,788 |
Excess tax benefit from stock options exercised | 17,286 | ' |
Proceeds from equipment lease line | ' | 163,155 |
Proceeds from line of credit | ' | 100,000 |
Proceeds from issuance of common stock | 48,297 | ' |
Repurchase of common stock | -44,091 | ' |
Net cash provided in financing activities | 968 | 227,367 |
Net decrease in cash and cash equivalents | -714,335 | -1,180 |
Cash and cash equivalents at beginning of period | 1,571,054 | 306,854 |
Cash and cash equivalents at end of period | 856,719 | 305,674 |
Supplemental cash flow information: | ' | ' |
Cash paid for taxes, net of refunds | 27,456 | ' |
Interest paid | $962 | $10,192 |
Statements_of_Cash_Flows_Paren
Statements of Cash Flows (Parenthetical) (USD $) | 3 Months Ended | |
Mar. 29, 2014 | Mar. 30, 2013 | |
Statement of Cash Flows [Abstract] | ' | ' |
Cash paid for taxes, net of refunds | $27,456 | ' |
Interest paid | $962 | $10,192 |
Nature_of_Business
Nature of Business | 3 Months Ended |
Mar. 29, 2014 | |
Accounting Policies [Abstract] | ' |
Nature of Business | ' |
(1) Nature of Business | |
CPS Technologies Corporation (the “Company” or “CPS”) provides advanced material solutions to the electronics, power generation, automotive and other industries. The Company’s primary advanced material solution is metal-matrix composites which are a combination of metal and ceramic. | |
CPS also assembles housings and packages for hybrid circuits. These housings and packages may include components made of metal-matrix composites or they may include components made of more traditional materials such as aluminum, copper-tungsten, etc. | |
The Company sells into several end markets including the wireless communications infrastructure market, high-performance microprocessor market, motor controller market, and other microelectronic and structural markets. |
Interim_Financial_Statements
Interim Financial Statements | 3 Months Ended |
Mar. 29, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Interim Financial Statements | ' |
(2) Interim Financial Statements | |
As permitted by the rules of the Securities and Exchange Commission applicable to quarterly reports on Form 10-Q, these notes are condensed and do not contain all disclosures required by generally accepted accounting principles. | |
The accompanying financial statements are unaudited. In the opinion of management, the unaudited financial statements of CPS reflect all normal recurring adjustments which are necessary to present fairly the financial position and results of operations for such periods. | |
The Company’s balance sheet at December 28, 2013 has been derived from the audited financial statements at that date, but does not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. | |
For further information, refer to the financial statements and footnotes thereto included in the Registrant’s Annual Report on Form 10-K for the year ended December 28, 2013. | |
The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. |
Net_Income_Per_Common_and_Comm
Net Income Per Common and Common Equivalent Share | 3 Months Ended | ||||||||
Mar. 29, 2014 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
Net Income Per Common and Common Equivalent Share | ' | ||||||||
(3) Net Income Per Common and Common Equivalent Share | |||||||||
Basic net income per common share is calculated by dividing net income by the weighted average number of common shares outstanding during the period. Diluted net income per common share is calculated by dividing net income by the sum of the weighted average number of common shares plus additional common shares that would have been outstanding if potential dilutive common shares had been issued for granted stock options and stock purchase rights. Common stock equivalents are excluded from the diluted calculations when a net loss is incurred as they would be anti-dilutive. | |||||||||
The following table presents the calculation of both basic and diluted earnings per share (“EPS”): | |||||||||
For periods ended | |||||||||
March 29, | March 30, | ||||||||
2014 | 2013 | ||||||||
Basic EPS Computation: | |||||||||
Numerator: | |||||||||
Net income | $ | 247,619 | $ | 2,610 | |||||
Denominator: | |||||||||
Weighted average | |||||||||
common shares | |||||||||
Outstanding | 13,069,577 | 12,871,759 | |||||||
Basic EPS | $ | 0.02 | $ | 0 | |||||
Diluted EPS Computation: | |||||||||
Numerator: | |||||||||
Net income | $ | 247,619 | $ | 2,610 | |||||
Denominator: | |||||||||
Weighted average | |||||||||
common shares | |||||||||
Outstanding | 13,069,577 | 12,871,759 | |||||||
stock options | 627,006 | 240,867 | |||||||
Total Shares | 13,696,583 | 13,112,626 | |||||||
Diluted EPS | $ | 0.02 | $ | 0 | |||||
ShareBased_Payments
Share-Based Payments | 3 Months Ended |
Mar. 29, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' |
Share-Based Payments | ' |
(4) 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 quarter ended March 29, 2014, a total of 108,500 stock options were granted to employees under the Company’s 2009 Stock Incentive Plan (the “Plan) and a total of 30,000 stock options were granted to outside directors. There were no shares granted under the Plan during the quarter ended March 30, 2013. | |
During the quarter ended March 29, 2014 the Company issued 32,900 shares as a result of employee option exercises. There were no stock option exercises during the quarter ended March 30, 2013. During the quarters ended March 29, 2014 and March 30, 2013 there were no expired stock options. | |
During the quarter ended March 29, 2014 the Company repurchased 14,964 shares from employees to facilitate their exercise of stock options. | |
As of March 29, 2014, there was $646,584 of total unrecognized compensation cost related to nonvested share-based compensation arrangements granted under the plans; that cost is expected to be recognized over a weighted average period of 2.88 years. | |
During the quarters ended March 29, 2014 and March 30, 2013, the Company recognized $72,447 and $53,631 respectively as shared-based compensation expense related to previously granted shares under the Plan. |
Inventories
Inventories | 3 Months Ended | ||||||||
Mar. 29, 2014 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Inventories | ' | ||||||||
(5) Inventories | |||||||||
Inventories consist of the following: | |||||||||
March 29, | December 28, | ||||||||
2014 | 2013 | ||||||||
Raw materials | $ | 395,077 | $ | 359,535 | |||||
Work in process | 1,121,756 | 1,135,413 | |||||||
Finished goods | 1,082,649 | 1,079,251 | |||||||
Gross inventory | 2,599,482 | 2,574,199 | |||||||
Reserve for obsolescence | -390,500 | -390,500 | |||||||
Inventories, net | $ | 2,208,982 | $ | 2,183,699 | |||||
Accrued_Expenses
Accrued Expenses | 3 Months Ended | ||||||||
Mar. 29, 2014 | |||||||||
Payables and Accruals [Abstract] | ' | ||||||||
Accrued Expenses | ' | ||||||||
(6) Accrued Expenses | |||||||||
Accrued expenses consist of the following: | |||||||||
March 29, | December 28, | ||||||||
2014 | 2013 | ||||||||
Accrued legal and accounting | $ | 60,000 | $ | 92,000 | |||||
Accrued payroll | 690,242 | 823,196 | |||||||
Accrued other | 309,926 | 158,116 | |||||||
Accrued income taxes | 6,045 | 33,501 | |||||||
Total Accrued Expenses | $ | 1,066,213 | $ | 1,106,813 | |||||
Line_of_Credit_and_Equipment_L
Line of Credit and Equipment Lease Facility Agreements | 3 Months Ended |
Mar. 29, 2014 | |
Debt Disclosure [Abstract] | ' |
Line of Credit and Equipment Lease Facility Agreements | ' |
(7) Line of Credit and Equipment Lease Facility Agreements | |
In early May 2014, the Company renewed its $2 million revolving line of credit (“LOC”) and $500 thousand of an equipment finance facility (“Lease Line”) with Santander Bank. Both agreements mature in May 2015. The LOC is secured by the accounts receivable and other assets of the Company, has an interest rate of prime (3.25% at March 29, 2014) plus one half of percent (0.5%) and a one-year term. The LOC and the Lease Line are cross defaulted and cross collateralized. The Company is also subject to certain financial covenants within the terms of the line of credit that require the Company to maintain a targeted coverage ratio as well as targeted debt to equity and current ratios. At March 29, 2014, the Company was in compliance with existing covenants. | |
At March 29, 2014, the Company had $56 thousand of capital equipment financed by capital lease obligations under the Lease Line and $444 thousand available remaining. Equipment financed by the Santander equipment lease qualifies for treatment as a capital lease once converted from the Lease Line to a lease. | |
At March 29, 2014 the Company had no borrowings under the LOC while its borrowing base at the time would have permitted borrowings up to the full $2 million of the line. | |
Income_Taxes
Income Taxes | 3 Months Ended |
Mar. 29, 2014 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
(8) Income Taxes | |
At December 28, 2013, the Company had approximately $1,710,000 of net operating loss carryforwards available to offset future income for U.S. Federal income tax purpose. | |
The Company recorded a tax expense of $128,000 for federal income taxes and $36,000 for state income taxes during the quarter ended March 29, 2014. | |
The Company has a current and non-current deferred tax asset aggregating $2,329,188 and $2,475,902 on the Company’s balance sheet at March 29, 2014 and December 28, 2013, respectively. A valuation allowance is required to be established or maintained when it is "more likely than not" that all or a portion of deferred tax assets will not be realized. The Company believes that it will generate sufficient future taxable income to realize the tax benefits related to the remaining deferred tax assets and as such no valuation allowance has been provided against the deferred tax asset. | |
Commitments
Commitments | 3 Months Ended |
Mar. 29, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments | ' |
(9) Commitment | |
In July 2006, the Company entered into a lease for its current operating facilities of approximately 37,520 square feet of rentable space located on approximately seven acres at its current site in Norton, MA. The term of the lease is ten years. The lease is a triple net lease wherein the Company is responsible for payment of all real estate taxes, operating costs and utilities. The Company also has an option to buy the property and a first right of refusal during the term of the lease. Annual rental payments were $100,000 in year one increasing to $150,000 in year ten. | |
In February 2011, the Company entered into a one-year lease, with five options to renew for one year periods, for approximately 13,800 square feet of rentable space inside a larger building located at 79 Walton Street, Attleboro, Massachusetts. Monthly rent, which includes utilities, is $6,900. In October 2013, the Company renewed the lease for one additional year. In December 2013 the Company agreed with the landlord for two additional, one-year options. As a result, if the Company exercises all of the options, it will be able to use the space through February 2019. |
Subsequent_Events
Subsequent Events | 3 Months Ended |
Mar. 29, 2014 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
(10) Subsequent Events | |
See Note 7 for a description of the Line of Credit and Equipment Lease Facility Agreements renewal with Santander Bank. |
Net_Income_Per_Common_and_Comm1
Net Income Per Common and Common Equivalent Share (Tables) | 3 Months Ended | ||||||||
Mar. 29, 2014 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
Basic and Diluted Earnings Per Share Calculation | ' | ||||||||
For periods ended | |||||||||
March 29, | March 30, | ||||||||
2014 | 2013 | ||||||||
Basic EPS Computation: | |||||||||
Numerator: | |||||||||
Net income | $ | 247,619 | $ | 2,610 | |||||
Denominator: | |||||||||
Weighted average | |||||||||
common shares | |||||||||
Outstanding | 13,069,577 | 12,871,759 | |||||||
Basic EPS | $ | 0.02 | $ | 0 | |||||
Diluted EPS Computation: | |||||||||
Numerator: | |||||||||
Net income | $ | 247,619 | $ | 2,610 | |||||
Denominator: | |||||||||
Weighted average | |||||||||
common shares | |||||||||
Outstanding | 13,069,577 | 12,871,759 | |||||||
stock options | 627,006 | 240,867 | |||||||
Total Shares | 13,696,583 | 13,112,626 | |||||||
Diluted EPS | $ | 0.02 | $ | 0 |
Inventories_Tables
Inventories (Tables) | 3 Months Ended | ||||||||
Mar. 29, 2014 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Inventories | ' | ||||||||
March 29, | December 28, | ||||||||
2014 | 2013 | ||||||||
Raw materials | $ | 395,077 | $ | 359,535 | |||||
Work in process | 1,121,756 | 1,135,413 | |||||||
Finished goods | 1,082,649 | 1,079,251 | |||||||
Gross inventory | 2,599,482 | 2,574,199 | |||||||
Reserve for obsolescence | -390,500 | -390,500 | |||||||
Inventories, net | $ | 2,208,982 | $ | 2,183,699 | |||||
Accrued_Expenses_Tables
Accrued Expenses (Tables) | 3 Months Ended | ||||||||
Mar. 29, 2014 | |||||||||
Payables and Accruals [Abstract] | ' | ||||||||
Accrued expenses | ' | ||||||||
March 29, | December 28, | ||||||||
2014 | 2013 | ||||||||
Accrued legal and accounting | $ | 60,000 | $ | 92,000 | |||||
Accrued payroll | 690,242 | 823,196 | |||||||
Accrued other | 309,926 | 158,116 | |||||||
Accrued income taxes | 6,045 | 33,501 | |||||||
Total Accrued Expenses | $ | 1,066,213 | $ | 1,106,813 | |||||
ShareBased_Payments_Details_Na
Share-Based Payments (Details Narrative) (USD $) | 3 Months Ended | |
Mar. 29, 2014 | Mar. 30, 2013 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ' |
Unrecognized Compensation Cost | $646,584 | ' |
Weighted average years unrecognized cost expected to be recognized | '2 years 10 months 17 days | ' |
Share-based compensation expense in period | 72,447 | 53,631 |
Stock Option Grants to employees | 108,500 | ' |
Stock Option Grants to outside Directors | $30,000 | ' |
Shares Issued | 32,900 | ' |
Shares Repurchased by the Company | 14,964 | ' |
Line_of_Credit_and_Equipment_L1
Line of Credit and Equipment Lease Facility Agreements (Details Narrative) (USD $) | Mar. 29, 2014 |
Debt Disclosure [Abstract] | ' |
Line of Credit permitted borrowings available | $2,000,000 |
Revolving Line of Credit permitted | 2,000,000 |
Equipment Finance Facility permitted | 500,000 |
Equipment financed by capital lease obligations | 56,000 |
Lease Line remaining available | $444,000 |
Income_Taxes_Details_Narrative
Income Taxes (Details Narrative) (USD $) | 3 Months Ended | |
Mar. 29, 2014 | Dec. 28, 2013 | |
Income Tax Disclosure [Abstract] | ' | ' |
Net Operating Loss Carryforward | ' | $1,710,000 |
Federal Tax Expense recorded | 128,000 | ' |
State Income Tax expense recorded | 36,000 | ' |
Deferred Tax Asset | ' | 2,475,902 |
Deferred Tax Asset | $2,329,188 | ' |
Inventories_Inventories_Detail
Inventories - Inventories (Details) (USD $) | Mar. 29, 2014 | Dec. 28, 2013 |
Inventory Disclosure [Abstract] | ' | ' |
Raw materials | $395,077 | $359,535 |
Work in process | 1,121,756 | 1,135,413 |
Finished goods | 1,082,649 | 1,079,251 |
Gross inventory | 2,599,482 | 2,574,199 |
Reserve for obsolescence | -390,500 | -390,500 |
Inventories, net | $2,208,982 | $2,183,699 |
Accrued_Expenses_Accrued_expen
Accrued Expenses - Accrued expenses (Details) (USD $) | Mar. 29, 2014 | Dec. 28, 2013 | Mar. 30, 2013 |
Payables and Accruals [Abstract] | ' | ' | ' |
Accrued legal and accounting | $60,000 | ' | $92,000 |
Accrued payroll and related | 690,242 | ' | 823,196 |
Accrued other | 309,926 | ' | 158,116 |
Accrued income tax payable | 6,045 | ' | 33,501 |
Total Accrued Expenses | $1,066,213 | $1,106,813 | $1,106,813 |