Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | |
Dec. 29, 2018 | Mar. 08, 2019 | |
Document And Entity Information | ||
Entity Registrant Name | CPS TECHNOLOGIES CORP/DE/ | |
Entity Central Index Key | 0000814676 | |
Document Type | 10-K | |
Document Period End Date | Dec. 29, 2018 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-29 | |
Is Entity a Well-known Seasoned Issuer? | Yes | |
Is Entity a Voluntary Filer? | No | |
Is Entity's Reporting Status Current? | Yes | |
Is Entity Emerging Growth Company? | false | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Public Float | $ 11,000,000 | |
Entity Common Stock, Shares Outstanding | 13,205,936 | |
Document Fiscal Period Focus | FY | |
Document Fiscal Year Focus | 2018 | |
Entity Shell Company | false |
Balance Sheets
Balance Sheets - USD ($) | 12 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
Current assets: | ||
Cash and cash equivalents | $ 628,804 | $ 1,339,572 |
Accounts receivable-trade, net | 3,053,091 | 2,943,373 |
Inventories, net | 3,192,933 | 2,109,513 |
Prepaid expenses and other current assets | 156,338 | 101,086 |
Total current assets | 7,031,166 | 6,493,544 |
Property and equipment: | ||
Production equipment | 9,550,043 | 9,299,515 |
Furniture and office equipment | 519,779 | 499,679 |
Leasehold improvements | 891,817 | 891,817 |
Total cost | 10,961,639 | 10,691,011 |
Accumulated depreciation and amortization | (9,722,767) | (9,287,006) |
Construction in progress | 34,314 | 86,493 |
Net property and equipment | 1,273,186 | 1,490,498 |
Deferred taxes, net | 186,747 | 3,038,666 |
Total assets | 8,491,099 | 11,022,708 |
Current liabilities: | ||
Accounts payable | 1,680,263 | 946,385 |
Accrued expenses | 975,315 | 655,489 |
Deferred revenue | 100,000 | |
Total current liabilities | $ 2,655,578 | 1,701,874 |
Commitments & Contingencies (note 4) | (4) Commitments & Contingencies Operating Lease Obligations In February 2018, the Company signed a lease for the Norton facilities through February 2021. The leased facilities comprise approximately 38 thousand square feet. 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 are $152 thousand through maturity. In February 2011, the Company entered into a lease for an additional 13.8 thousand square feet in Attleboro, MA. The lease terms have been for one year and have been renewed annually. The current lease expires in February 2020 and the Company has two, one-year options at the current annual rental payments of $83 thousand, with minor escalation for real estate tax increases. Future minimum rental payments over the terms of the lease agreements, excluding any renewals, are approximately as follows: Fiscal year: 2019 $ 235,200 2020 166,200 2021 25,400 $ 426,800 Loss contingency The Company manufactures baseplates for power module manufacturers. Most baseplates manufactured by CPS require a nickel coating be applied to the baseplate (“Ni plating”). CPS warranties its baseplates meet the Ni plating specifications required by our customers, and we flow this requirement to our Ni plating vendors. On January 24, 2018 the Company received a “Claim and Non-Conformance Notification” from one of its European customers relating to the Ni plating on our baseplates. Upon investigation, it was determined that one employee of the Ni plating vendor used by CPS had deviated from the prescribed work instruction for Ni plating from mid-September 2017 until mid-January 2018. The Company's Ni plating vendor has acknowledged this violation and is committed to correcting the problem. In the case of affected baseplates, which have not been assembled into modules, it is a straight-forward process for the Ni plating vendor to rework these baseplates. The larger issue is baseplates that have already been assembled into modules. During this four-month period approximately 15,000 baseplates from this Ni plating vendor were assembled into modules; only a small portion of these baseplates are affected. On April 11, 2018 the Company received a “Follow-up Claim and Non-Conformance Notification” from the European customer. The customer estimated the total value of the claim to be $1.0 million “as of today”, and reserves the right to claim additional damages in the future. The Company has informed its insurer of this claim and the Ni plating vendor has done the same with its insurer. The Company believes that it is not possible at this time to quantify the potential financial impact, if any, to the Company. No amounts for damages have been recorded in the accompanying financial statements. Although the Company expects this issue to be resolved amicably, there is a possibility that this could result in legal proceedings. | |
Stockholders Equity: | ||
Common stock, $0.01 par value, authorized 20,000,000 shares; issued 13,425,992 and 13,423,492 shares; outstanding 13,205,936 and 13,203,436; at December 29, 2018 and December 30, 2017, respectively | $ 134,260 | 134,235 |
Additional paid-in capital | 35,960,545 | 35,739,916 |
Accumulated deficit | (29,742,231) | (26,036,264) |
Less cost of 220,056 common shares repurchased at December 29, 2018 and December 30, 2017 | (517,053) | (517,053) |
Total stockholders equity | 5,835,521 | 9,320,834 |
Total liabilities and stockholders equity | $ 8,491,099 | $ 11,022,708 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - $ / shares | Dec. 29, 2018 | Dec. 30, 2017 |
Statement of Financial Position [Abstract] | ||
Common stock, authorized shares | 20,000,000 | 20,000,000 |
Common stock, issued shares | 13,425,992 | 13,423,492 |
Common stock, outstanding shares | 13,205,936 | 13,203,436 |
Common stock, par value | $ .01 | $ .01 |
Statements of Operations
Statements of Operations - USD ($) | 12 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
Income Statement [Abstract] | ||
Product sales | $ 21,580,904 | $ 14,577,183 |
Cost of product sales | 18,668,052 | 12,919,065 |
Gross margin | 2,912,852 | 1,658,118 |
Selling, general, and administrative expenses | 3,813,415 | 3,609,328 |
Income (loss) from operations | (900,563) | (1,951,210) |
Other income (expense) | (20,985) | 11,476 |
Income (loss) before income tax | (921,548) | (1,939,734) |
Income tax provision (benefit) | 2,784,419 | (222,032) |
Net income (loss) | $ (3,705,967) | $ (1,717,702) |
Net income (loss) per basic common share | $ (0.28) | $ (0.13) |
Weighted average number of basic common shares outstanding | 13,205,936 | 13,203,436 |
Net income (loss) per diluted common share | $ (0.28) | $ (0.13) |
Weighted average number of diluted common shares outstanding | 13,205,936 | 13,203,436 |
Statements of Cash Flows
Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (3,705,967) | $ (1,717,702) |
Adjustments to reconcile net income (loss) to cash provided (used) by operating activities: | ||
Share-based compensation | 220,654 | 287,231 |
Depreciation and amortization | 568,164 | 566,787 |
Deferred taxes | 2,851,919 | (211,317) |
Gain on sale of property and equipment | (13,645) | |
Changes in operating assets and liabilities: | ||
Accounts receivable – trade, net | (109,718) | (983,767) |
Inventories | (1,083,420) | (138,552) |
Prepaid expenses and other current assets | (55,252) | (12,643) |
Accounts payable | 733,878 | 283,903 |
Accrued expenses | 319,826 | 31,530 |
Deferred revenue | (100,000) | 100,000 |
Net cash provided (used) by operating activities | (373,561) | (1,794,530) |
Cash flows from investing activities: | ||
Purchases of property and equipment | (350,852) | (273,658) |
Proceeds from sale of property and equipment | 13,645 | |
Net cash used by investing activities | (337,207) | (273,658) |
Cash flows from financing activities: | ||
Net cash provided by financing activities | ||
Net increase (decrease) in cash and cash equivalents | (710,768) | (2,068,188) |
Cash and cash equivalents at beginning of year | 1,339,572 | 3,407,760 |
Cash and cash equivalents at end of year | 628,804 | 1,339,572 |
Supplemental cash flow information: | ||
Income taxes paid, net of refund | 436 | 436 |
Interest paid | $ 34,791 |
Shareholders Equity
Shareholders Equity - USD ($) | Common Stock | Additional Paid-In Capital | Retained Earnings / Accumulated Deficit | Treasury Stock | Comprehensive Income / Loss | Total |
Beginning balance, stockholders equity at Dec. 26, 2015 | $ 11,007,155 | |||||
Beginning balance, shares at Dec. 26, 2015 | 13,412,292 | |||||
Beginning balance, par value of shares issued at Dec. 26, 2015 | $ 134,123 | |||||
Share-based compensation expense | $ 193,117 | |||||
Tax benefit from exercise of stock options | 2,815 | |||||
Repurchase of common stock | $ (10,000) | |||||
Issuance of common stock pursuant to exercise of stock options | 11,723 | |||||
Issuance of common stock pursuant to exercise of stock options, number of shares issued | 11,200 | |||||
Issuance of common stock pursuant to exercise of stock options, par value | $ 112 | |||||
Net income(loss) | $ 453,617 | |||||
Ending balance, stockholders equity at Dec. 31, 2016 | $ 10,751,305 | |||||
Ending Ending balance, shares at Dec. 31, 2016 | 13,423,492 | 13,423,492 | ||||
Ending balance, par value shares issued at Dec. 31, 2016 | $ 134,235 | $ 134,235 | ||||
Share-based compensation expense | 287,231 | |||||
Net income(loss) | 1,717,702 | (1,717,702) | ||||
Ending balance, stockholders equity at Dec. 30, 2017 | $ 9,320,834 | |||||
Ending Ending balance, shares at Dec. 30, 2017 | 13,423,492 | |||||
Ending balance, par value shares issued at Dec. 30, 2017 | $ 134,235 | $ 134,235 | ||||
Issuance of common stock pursuant to exercise of stock options | $ 3,200 | |||||
Issuance of common stock pursuant to exercise of stock options, number of shares issued | 2,500 | |||||
Issuance of common stock pursuant to exercise of stock options, par value | $ 25 | |||||
Net income(loss) | $ 3,705,967 | (3,705,967) | ||||
Ending balance, stockholders equity at Dec. 29, 2018 | $ 5,835,521 | |||||
Ending Ending balance, shares at Dec. 29, 2018 | 13,425,992 | |||||
Ending balance, par value shares issued at Dec. 29, 2018 | $ 134,260 |
(1) Nature of Business
(1) Nature of Business | 12 Months Ended |
Dec. 29, 2018 | |
Accounting Policies [Abstract] | |
(1) Nature of Business | (1) Nature of Business CPS Technologies Corporation (the ‘Company’ or ‘CPS’) provides advanced material solutions to the transportation, automotive, energy, computing/internet, telecommunications, aerospace, defense and oil and gas end markets. Our primary material solution is metal matrix composites. We design, manufacture and sell custom metal matrix composite components which improve the performance and reliability of systems in these end markets. |
(2) Summary of Significant Acco
(2) Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 29, 2018 | |
Accounting Policies [Abstract] | |
(2) Summary of Significant Accounting Policies | (2) Summary of Significant Accounting Policies (2)(a) Cash and Cash Equivalents The Company considers all highly liquid investments with a maturity of three months or less at the date of purchase to be cash equivalents. (2)(b) Accounts Receivable The Company reports its accounts receivable at the invoiced amount less an allowance for doubtful accounts. The Company’s management provides appropriate provisions for uncollectible accounts based upon factors surrounding the credit risk and activity of specific customers, historical trends, economic conditions and other information. Adjustments to the allowance are charged to operations in the period in which information becomes available that may affect the allowance. (2)(c) Inventories Inventories are stated at the lower of cost, as determined under the first-in, first-out method (FIFO), or net realizable value. A reserve for obsolete inventories is based on factors regarding the sales and usage of such inventories, including inventories manufactured for specific customers. The Company’s general obsolescence policy is to write off obsolete inventory when there has been no activity on a particular part for a twelve month period and there are no pending customer orders. (2)(d) Property and Equipment Property and equipment are stated at cost. Depreciation of equipment is calculated on a straight-line basis over the estimated useful life, generally five years for production equipment and three to five years for furniture and office equipment. Leasehold improvements are depreciated over the shorter of the lease term or their useful life. Maintenance and repairs are charged to expense as incurred. Upon retirement or sale, the cost and related accumulated depreciation or amortization are removed from their respective accounts. Any gains or losses on the disposition of property and equipment are included in the results of operations in the period in which they occur. (2)(e) Impairment of Long-Lived Assets The Company reviews long-lived assets for impairment whenever circumstances and situations change such that there is an indication that the carrying amounts may not be recovered. Recoverability is assessed based on estimated undiscounted future cash flows. As of December 29, 2018 and December 30, 2017, the Company believes that there has been no impairment of its long-lived assets. (2)(f) Revenue Recognition Revenue Recognition - Change in Accounting Policy The Company adopted Accounting Standards Codification (ASC) 606, “Revenue from Contracts with Customers” in fiscal 2018. The core principle of ASC 606 is to recognize revenue in a manner that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. The framework in support of this core principle includes: (1) identifying the contract with the customer; (2) identifying the performance obligations in the contract; (3) determining the transaction price; (4) allocating the transaction price to the performance obligations; and (5) recognizing revenue when (or as) the performance obligations are satisfied. The adoption of FASB ASC Topic 606 did not have a material impact on the Company’s financial statements and no cumulative adjustment was required. Identifying the Contract with the Customer The Company identifies contracts with customers as agreements that create enforceable rights and obligations. In the case of a few large customers the Company has executed long-term Master Sales Agreements (“MSA”). These are umbrella agreements which typically define the terms and conditions under which a customer can order goods from CPS. These in themselves do not constitute a contract as no products are committed to be transferred and the customer has no obligation to make payments. The Company contract is only enforceable once both parties have approved it, and is usually in the form of a written purchase order from a customer combined with acknowledgement from the Company. In cases without an MSA, the customer submits a blueprint for a product, the Company provides a quote and the customer responds with a purchase order. In these cases the Company’s acceptance of the purchase order constitutes an enforceable contract. Identifying the Performance Obligations in the Contract For each contract, the Company considers the promise to transfer products, each of which are distinct, to be the identified performance obligations. Shipping and handling activities for which the Company is responsible are not a separate promised service but instead are activities to fulfill the entity’s promise to transfer goods. Shipping and handling fees will be recognized at the same time as the related performance obligations are satisfied. The Company provides an assurance-type warranty. This guarantees that the product functions as promised and meets specifications. Under its terms and conditions the Company offers a 30 day warranty and replaces defective or non-conforming products. The expense of replacement is recorded at the time the Company agrees to replace a defective or non-conforming product. This assurance type warranty is not considered to be a distinct performance obligation. Determining the Transaction Price The Company determines the transaction price as the amount of consideration specified in the contract that it expects to receive in exchange for transferring promised goods to the customer. Amounts collected from customers for sales value added and other taxes are excluded from the transaction prices. Product sales are recorded net of trade discounts and sales returns. If a contract includes a variable amount, such as a rebate, then the Company estimates the transaction price using either the expected value or the most likely amount of consideration to be received, depending upon the specific facts and circumstances. The Company includes estimated variable consideration in the transaction price only to the extent it is probable that a significant reversal of revenue will not occur when the uncertainty is resolved. The Company updates its estimate of variable consideration at the end of each reporting period to reflect changes in facts and circumstances. As of December 29, 2018 there are no contracts with variable consideration. When credit is granted to customers, payment is typically due 30 to 90 days from billing and accordingly our contracts with customers do not include a significant financing component. Allocating the Transaction Price to the Performance Obligations In virtually all cases the transaction price is tied to a specific product in the contract obviating the need for any allocation. Recognizing Revenue When (or as) the Performance Obligations are Satisfied The Company recognizes revenue at the point in time when it transfers control of the promised goods or services to the customer, which typically occurs once the product has shipped or has been delivered to the customer. Occasionally, for the purpose of insuring a steady flow of product, the Company ships products on consignment. In these instances, delivery is deemed to have occurred when the customer pulls inventory out of the warehouse for use in their production, or upon a specified period of time as agreed upon by both parties. The Company generally expenses sales commissions when incurred because the amortization period would have been one year or less. The costs are recorded within, selling, general and administrative expenses. The Company does not disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less. (2)(g) Income Taxes The Company uses the liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are recorded for the expected future tax consequences of temporary differences between the financial reporting and income tax bases of assets and liabilities and are measured using the enacted tax rates and laws that are expected to be in affect when the differences reverse. A valuation allowance is established to reduce net deferred tax assets to the amount expected to be realized. The Company’s policy is to recognize interest and penalties related to income tax matters in income tax expense. As of December 29, 2018 and December 30, 2017, the Company has no accruals for interest or penalties related to income tax matters. The Company does not have any uncertain tax positions at December 29, 2018 or December 30, 2017 which required accrual or disclosure. (2)(h) Net Income (Loss) Per Common Share Basic net income (loss) per common share is calculated by dividing net income (loss) by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per common share is calculated by dividing net income (loss) 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 option 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. (2)(i) Reclassification Certain amounts in prior year’s financial statements have been reclassified to conform to the current year’s presentation. (2)(j) Recent Accounting Pronouncements In the normal course of business, management evaluates all the new accounting pronouncements issued by the Financial Accounting Standard Board (“FASB”). Based upon this review, except as noted below, management does not expect any of the recently issued accounting pronouncements, which have not already been adopted, to have a material impact on the Company’s consolidated financial statements. In February 2016 the FASB issued ASU No. 2016-02, Leases, which requires a lessee to recognize lease liabilities for the lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis, and right-of-use assets, representing the lessee’s right to use, or control the use of, specified assets for the lease term. The ASU became effective on December 30, 2018 (Q1 of 2019). It is expected that assets and liabilities will increase by approximately $350 thousand based upon the present value of remaining lease payments for leases in place at the adoption date. (2)(k) Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the amounts of revenues and expenses recorded during the reporting period. Such estimates are adjusted by management periodically as a result of existing or anticipated economic changes which effect, or may effect, the Company’s financial statements. Actual results could differ from these estimates. (2)(l) Fiscal Year-End The Company’s fiscal year end is the last Saturday in December which could result in a 52 or 53 week year. Fiscal years 2018 and 2017 each consisted of 52 weeks. (2)(m) 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, 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 stock options granted. (2)(n) Segment Reporting The Company views its operations and manages its business as one segment. The Company produces and sells advanced material solutions, primarily metal matrix composites, to assemblers of high density electronics and other specialty components and subassemblies. The Company also assembles housings and packages for hybrid circuits, selling to the same customers mentioned above. These customers represent a single market or segment with similar stringent and well-defined requirements. The Company’s customers, in turn, sell the components and subassemblies which incorporate the products into many different end markets, however, these end markets are two to three levels removed from the Company. The Company makes operating decisions and assesses financial performance only for the Company as a whole and does not make operating decisions or assess financial performance by the end markets which ultimately use the products. |
(3) Inventories
(3) Inventories | 12 Months Ended |
Dec. 29, 2018 | |
Inventory Disclosure [Abstract] | |
(3) Inventories | (3) Inventories As of December 29, 2018 and December 30, 2017 inventories consisted of the following: 2018 2017 Raw materials $ 706,982 $ 478,567 Work in process 2,248,370 1,003,285 Finished goods 693,943 1,014,023 Gross Inventory 3,649,295 2,495,875 Reserve for obsolescence (456,362) (386,362) Total $ 3,192,933 $ 2,109,513 |
(4) Commitments & Contingencies
(4) Commitments & Contingencies | 12 Months Ended |
Dec. 29, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
(4) Commitments & Contingencies | (4) Commitments & Contingencies Operating Lease Obligations In February 2018, the Company signed a lease for the Norton facilities through February 2021. The leased facilities comprise approximately 38 thousand square feet. 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 are $152 thousand through maturity. In February 2011, the Company entered into a lease for an additional 13.8 thousand square feet in Attleboro, MA. The lease terms have been for one year and have been renewed annually. The current lease expires in February 2020 and the Company has two, one-year options at the current annual rental payments of $83 thousand, with minor escalation for real estate tax increases. Future minimum rental payments over the terms of the lease agreements, excluding any renewals, are approximately as follows: Fiscal year: 2019 $ 235,200 2020 166,200 2021 25,400 $ 426,800 Loss contingency The Company manufactures baseplates for power module manufacturers. Most baseplates manufactured by CPS require a nickel coating be applied to the baseplate (“Ni plating”). CPS warranties its baseplates meet the Ni plating specifications required by our customers, and we flow this requirement to our Ni plating vendors. On January 24, 2018 the Company received a “Claim and Non-Conformance Notification” from one of its European customers relating to the Ni plating on our baseplates. Upon investigation, it was determined that one employee of the Ni plating vendor used by CPS had deviated from the prescribed work instruction for Ni plating from mid-September 2017 until mid-January 2018. The Company's Ni plating vendor has acknowledged this violation and is committed to correcting the problem. In the case of affected baseplates, which have not been assembled into modules, it is a straight-forward process for the Ni plating vendor to rework these baseplates. The larger issue is baseplates that have already been assembled into modules. During this four-month period approximately 15,000 baseplates from this Ni plating vendor were assembled into modules; only a small portion of these baseplates are affected. On April 11, 2018 the Company received a “Follow-up Claim and Non-Conformance Notification” from the European customer. The customer estimated the total value of the claim to be $1.0 million “as of today”, and reserves the right to claim additional damages in the future. The Company has informed its insurer of this claim and the Ni plating vendor has done the same with its insurer. The Company believes that it is not possible at this time to quantify the potential financial impact, if any, to the Company. No amounts for damages have been recorded in the accompanying financial statements. Although the Company expects this issue to be resolved amicably, there is a possibility that this could result in legal proceedings. |
(5) Share-Based Compensation Pl
(5) Share-Based Compensation Plans | 12 Months Ended |
Dec. 29, 2018 | |
Retirement Benefits [Abstract] | |
(5) Share-Based Compensation Plans | (5) Share-Based Compensation Plans The Company adopted the 2009 Stock Incentive Plan ("2009 Plan") on December 10, 2009. Under the terms of the 2009 Plan all of the Company’s employees, officers, directors, consultants and advisors are eligible to be granted options, restricted stock awards, or other stock-based awards. Some outstanding options are nonstatutory stock options; some are incentive stock options. All options granted are exercisable at the fair market value of the stock on the date of grant, and expire ten years from the date of grant. The options granted to employees generally vest in equal annual installments over a five-year period. The options granted to directors generally vest immediately on date of grant. Under the 2009 Plan a total of 2,849,600 shares of common stock are available for issuance, of which 1,095,995 shares remain available for grant as of December 29, 2018. A summary of stock option activity as of December 29, 2018 and changes during the year then ended is presented below: Weighted Weighted Average Remaining Aggregate Exercise Contractual Intrinsic Shares Price Life (years) Value Outstanding at beginning of year 1,666,905 $ 1.77 Granted 163,000 $ 1.54 Exercised — — Forfeited (68,300) $ 1.74 Expired (8,000) $ 1.70 Outstanding at end of year 1,753,605 $ 1.75 4.8 $ 10,550 Options exercisable at year-end 1,356,505 $ 1.74 3.9 $ 10,550 No options were exercised during fiscal 2018 or 2017. The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model. The following table presents the annualized weighted average values of the significant assumptions used to estimate the fair values of the options granted during 2018 and 2017: 2018 2017 Risk-free interest rate 2.73-2.89% 2.08-2.23% Expected life in years 6.1 6.1 Expected volatility 54% 54% Expected dividend yield 0 0 Weighted average fair value of grants $ .84 $ .84 All options are granted with an exercise price equal to the fair market value of the underlying common stock on the date of grant. The Company recognized $220,654 and $287,231 as stock based compensation expense in 2018 and 2017, respectively including $217,430 related to stock options outstanding and $3,224 related to the issue of common stock in 2018. As of December 29, 2018, there was $235,679 of total unrecognized compensation cost related to nonvested share-based compensation arrangements granted under the plan; that cost is expected to be recognized over a weighted average period of 2.2 years. |
(6) Accrued Expenses
(6) Accrued Expenses | 12 Months Ended |
Dec. 29, 2018 | |
Payables and Accruals [Abstract] | |
(6) Accrued Expenses | (6) Accrued Expenses Accrued expenses at December 29, 2018 and December 30, 2017 consist of the following: 2018 2017 Accrued legal and accounting $ 67,000 $ 78,925 Accrued payroll and related 594,641 455,518 Accrued other 313,674 121,046 $ 975,315 $ 655,489 |
(7) Revolving Line of Credit
(7) Revolving Line of Credit | 12 Months Ended |
Dec. 29, 2018 | |
Debt Disclosure [Abstract] | |
(7) Revolving Line of Credit | (7) Revolving Line of Credit n early November 2018, the Company renewed its $1.5 million revolving line of credit line with Santander Bank. The agreement will mature on June 30, 2019. The LOC is secured by the accounts receivable and other assets of the Company and has an interest rate of prime plus 100 basis points. Under the terms of the agreement, the Company is required to maintain its operating accounts with Santander Bank. The Company is also subject to certain financial covenants. As of December 29, 2018 the Company had no borrowings under this LOC and its borrowing base at the time would have permitted an additional $1.5 million to have been borrowed. |
(8) Income Taxes
(8) Income Taxes | 12 Months Ended |
Dec. 29, 2018 | |
Income Tax Disclosure [Abstract] | |
(8) Income Taxes | (8) Income Taxes Components of income tax expense (benefit) for each year are as follows: 2018 2017 Current Federal $ (67,956) $ (6,529) State 456 (4,186) Current income tax provision (benefit): (67,500) (10,715) Deferred: United States: Federal 2,285,758 (246,458) State 566,161 35,141 Deferred income tax provision (benefit), net 2,851,919 (211,317) Total $ 2,784,419 $ (222,032) Deferred tax assets as of December 29, 2018 and December 30, 2017 are as follows: December 39, 2018 December 30, 2017 Deferred Tax Assets: Net operating loss carryforwards $ 738,213 $ 634,000 Stock compensation 524,893 478,000 Credit carryforwards 1,365,068 1,494,000 Inventory 281,192 235,000 Accrued liabilities 21,615 20,000 Depreciation 215,936 175,000 Other 3,238 3,000 Gross deferred tax assets 3,150,155 3,039,000 Valuation allowance 2,963,155 — Net deferred tax assets $ 187,000 $ 3,039,000 At December 29, 2018 and December 30, 2017 the Company had net operating loss carryforwards of approximately $2,742,700 and $2,367,000, respectively, available to offset future income for U.S. Federal income tax purposes. On December 22, 2017, the President of the United States signed into law the Tax Cuts and Jobs Act (“the Act”). The Act makes significant changes to the U.S. tax code including the following: · Reduction of the corporate federal income tax rate from 35% to 21%; · Repeal of the domestic manufacturing deduction; · Repeal of the corporate alternative minimum tax; · Acceleration of business asset expensing. Due to the Act, U.S. deferred tax assets and liabilities were re-measured from 35% to 21% resulting in an expense of $680,000 in the fourth quarter of 2017. Despite the Company’s strong performance in the fourth quarter and favorable outlook for the future, the Company established a valuation reserve as it is judged more likely than not that all or a portion of the tax credits will not be used before they expire. This decision was reached after giving greater weight to its losses over the last three years compared with its forecast of the future. A summary of the change in the deferred tax asset is as follows: 2018 2017 Balance at beginning of year $ 3,038,666 $ 2,827,349 Deferred tax benefit (provision) 111,236 211,317 Valuation allowance (2,963,155) — Balance at end of year $ 186,747 $ 3,038,666 Income tax expense is different from the amounts computed by applying the U.S. federal statutory income tax rate of 21 percent to pretax income as a result of the following: 2018 2017 Tax at statutory rate $ (193,000) $ (660,000) State tax, net of federal benefit 450 450 Net operating loss and credit carryforwards (68,857) (282,450) Valuation allowance 2,962,902 — Effect of tax cuts and jobs act — 628,000 Other 82,924 92,000 Total $ 2,784,419 $ (222,000) The Company’s income tax filings are subject to review and examination by federal and state taxing authorities. The Company is currently open to audit under the applicable statutes of limitations for the years 2015 through 2018. |
(9) Retirement Savings Pllan
(9) Retirement Savings Pllan | 12 Months Ended |
Dec. 29, 2018 | |
Retirement Benefits [Abstract] | |
(9) Retirement Savings Pllan | (9) Retirement Savings Plan The Company sponsors a Retirement Savings Plan (the ‘Plan’) under the provisions of Section 401 of the Internal Revenue Code. Employees, as defined in the Plan, are eligible to participate in the Plan after 30 days of employment. Under the terms of the Plan, the Company may match employee contributions under such method as described in the Plan and as determined each year by the Board of Directors. During 2018 and 2017 the Company did not offer a 401k match. |
(10) Concentration of Credit Ri
(10) Concentration of Credit Risk, Significant Customers and Geographic Information | 12 Months Ended |
Dec. 29, 2018 | |
Risks and Uncertainties [Abstract] | |
(10) Concentration of Credit Risk, Significant Customers and Geographic Information | (10) Concentrations of Credit Risk, Significant Customers and Geographic Information Financial instruments which subject the Company to concentrations of credit risk consist principally of cash, cash equivalents and trade accounts receivable. The Company maintains such cash deposits in a high credit quality financial institution. The Company extends credit to customers who consist principally of microelectronics systems companies in the United States, Europe and Asia. The Company generally does not require collateral or other security as a condition of sale rather relying on credit approval, balance limitation and monitoring procedures to control credit risk of trade accounts receivable. Management conducts on-going credit evaluations of its customers, and historically the Company has not experienced any significant credit-related losses with respect to its trade accounts receivable. Revenues from significant customers as a percentage of total revenues in 2018 and 2017 were as follows: Percent of Total Revenues Significant Customer 2018 2017 A 36 % 28 % B 17 % 14 % C 12 % 9 % D <10 % <10 % As of December 29, 2018, the Company had trade accounts receivable due from these four customers that accounted for 61% of total trade accounts receivable as of that date. No other customer balances constitute 10% or more of accounts receivable at December 29, 2018. Management believes that any credit risks have been properly provided for in the accompanying financial statements. The Company’s revenue was derived from the following countries in 2018 and 2017: Percent of Total Revenues Country 2018 2017 United States of America 33 % 30 % Germany 53 % 42 % Other 14 % 28 % Many of the Company’s customers based in the United States conduct design, purchasing and payable functions in the United States, but manufacture overseas. Revenue generated from shipments made to customers’ locations outside the United States accounted for 67% and 70% of total revenue in 2018 and 2017, respectively. All of the Company’s long-lived assets and operations are located in the United States. |
(2) Summary of Significant Ac_2
(2) Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 29, 2018 | |
Accounting Policies [Abstract] | |
(2)(a) Cash and Cash Equivalents | (2)(a) Cash and Cash Equivalents The Company considers all highly liquid investments with a maturity of three months or less at the date of purchase to be cash equivalents. |
(2)(b) Accounts Receivable | (2)(b) Accounts Receivable The Company reports its accounts receivable at the invoiced amount less an allowance for doubtful accounts. The Company’s management provides appropriate provisions for uncollectible accounts based upon factors surrounding the credit risk and activity of specific customers, historical trends, economic conditions and other information. Adjustments to the allowance are charged to operations in the period in which information becomes available that may affect the allowance. |
(2)(c) Inventories | (2)(c) Inventories Inventories are stated at the lower of cost, as determined under the first-in, first-out method (FIFO), or net realizable value. A reserve for obsolete inventories is based on factors regarding the sales and usage of such inventories, including inventories manufactured for specific customers. The Company’s general obsolescence policy is to write off obsolete inventory when there has been no activity on a particular part for a twelve month period and there are no pending customer orders. |
(2)(d) Property and Equipment | (2)(d) Property and Equipment Property and equipment are stated at cost. Depreciation of equipment is calculated on a straight-line basis over the estimated useful life, generally five years for production equipment and three to five years for furniture and office equipment. Leasehold improvements are depreciated over the shorter of the lease term or their useful life. Maintenance and repairs are charged to expense as incurred. Upon retirement or sale, the cost and related accumulated depreciation or amortization are removed from their respective accounts. Any gains or losses on the disposition of property and equipment are included in the results of operations in the period in which they occur. |
(2)(e) Impairment of Long-Lived Assets | (2)(e) Impairment of Long-Lived Assets The Company reviews long-lived assets for impairment whenever circumstances and situations change such that there is an indication that the carrying amounts may not be recovered. Recoverability is assessed based on estimated undiscounted future cash flows. As of December 29, 2018 and December 30, 2017, the Company believes that there has been no impairment of its long-lived assets. |
(2)(f) Revenue Recognition | (2)(f) Revenue Recognition Revenue Recognition - Change in Accounting Policy The Company adopted Accounting Standards Codification (ASC) 606, “Revenue from Contracts with Customers” in fiscal 2018. The core principle of ASC 606 is to recognize revenue in a manner that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. The framework in support of this core principle includes: (1) identifying the contract with the customer; (2) identifying the performance obligations in the contract; (3) determining the transaction price; (4) allocating the transaction price to the performance obligations; and (5) recognizing revenue when (or as) the performance obligations are satisfied. The adoption of FASB ASC Topic 606 did not have a material impact on the Company’s financial statements and no cumulative adjustment was required. Identifying the Contract with the Customer The Company identifies contracts with customers as agreements that create enforceable rights and obligations. In the case of a few large customers the Company has executed long-term Master Sales Agreements (“MSA”). These are umbrella agreements which typically define the terms and conditions under which a customer can order goods from CPS. These in themselves do not constitute a contract as no products are committed to be transferred and the customer has no obligation to make payments. The Company contract is only enforceable once both parties have approved it, and is usually in the form of a written purchase order from a customer combined with acknowledgement from the Company. In cases without an MSA, the customer submits a blueprint for a product, the Company provides a quote and the customer responds with a purchase order. In these cases the Company’s acceptance of the purchase order constitutes an enforceable contract. |
(2)(g) Income Taxes | (2)(g) Income Taxes The Company uses the liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are recorded for the expected future tax consequences of temporary differences between the financial reporting and income tax bases of assets and liabilities and are measured using the enacted tax rates and laws that are expected to be in affect when the differences reverse. A valuation allowance is established to reduce net deferred tax assets to the amount expected to be realized. The Company’s policy is to recognize interest and penalties related to income tax matters in income tax expense. As of December 29, 2018 and December 30, 2017, the Company has no accruals for interest or penalties related to income tax matters. The Company does not have any uncertain tax positions at December 29, 2018 or December 30, 2017 which required accrual or disclosure. |
(2)(h) Net Income (Loss) Per Common Share | (2)(h) Net Income (Loss) Per Common Share Basic net income (loss) per common share is calculated by dividing net income (loss) by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per common share is calculated by dividing net income (loss) 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 option 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. |
(2)(i) Reclassification | (2)(i) Reclassification Certain amounts in prior year’s financial statements have been reclassified to conform to the current year’s presentation. |
(2)(j) Recent Accounting Pronouncements | (2)(j) Recent Accounting Pronouncements In the normal course of business, management evaluates all the new accounting pronouncements issued by the Financial Accounting Standard Board (“FASB”). Based upon this review, except as noted below, management does not expect any of the recently issued accounting pronouncements, which have not already been adopted, to have a material impact on the Company’s consolidated financial statements. In February 2016 the FASB issued ASU No. 2016-02, Leases, which requires a lessee to recognize lease liabilities for the lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis, and right-of-use assets, representing the lessee’s right to use, or control the use of, specified assets for the lease term. The ASU became effective on December 30, 2018 (Q1 of 2019). It is expected that assets and liabilities will increase by approximately $350 thousand based upon the present value of remaining lease payments for leases in place at the adoption date. |
(2)(k) Use of Estimates in the Preparation of Financial Statements | (2)(k) Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the amounts of revenues and expenses recorded during the reporting period. Such estimates are adjusted by management periodically as a result of existing or anticipated economic changes which effect, or may effect, the Company’s financial statements. Actual results could differ from these estimates. |
(2)(l) Fiscal Year-End | (2)(l) Fiscal Year-End The Company’s fiscal year end is the last Saturday in December which could result in a 52 or 53 week year. Fiscal years 2018 and 2017 each consisted of 52 weeks. |
(2)(m) Share-Based Payments | (2)(m) 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, 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 stock options granted. |
(2)(n) Segment Reporting | (2)(n) Segment Reporting The Company views its operations and manages its business as one segment. The Company produces and sells advanced material solutions, primarily metal matrix composites, to assemblers of high density electronics and other specialty components and subassemblies. The Company also assembles housings and packages for hybrid circuits, selling to the same customers mentioned above. These customers represent a single market or segment with similar stringent and well-defined requirements. The Company’s customers, in turn, sell the components and subassemblies which incorporate the products into many different end markets, however, these end markets are two to three levels removed from the Company. The Company makes operating decisions and assesses financial performance only for the Company as a whole and does not make operating decisions or assess financial performance by the end markets which ultimately use the products. |
(3) Inventories (Tables)
(3) Inventories (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Inventory Disclosure [Abstract] | |
(3) Inventories | 2018 2017 Raw materials $ 706,982 $ 478,567 Work in process 2,248,370 1,003,285 Finished goods 693,943 1,014,023 Gross Inventory 3,649,295 2,495,875 Reserve for obsolescence (456,362) (386,362) Total $ 3,192,933 $ 2,109,513 |
(4) Commitments & Contingenci_2
(4) Commitments & Contingencies (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future minimum rental payments over the terms of the lease agreements | Fiscal year: 2019 $ 235,200 2020 166,200 2021 25,400 $ 426,800 |
(5) Share-Based Compensation _2
(5) Share-Based Compensation Plans (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Retirement Benefits [Abstract] | |
Summary of stock option activity as of December 29, 2018 | Weighted Weighted Average Remaining Aggregate Exercise Contractual Intrinsic Shares Price Life (years) Value Outstanding at beginning of year 1,666,905 $ 1.77 Granted 163,000 $ 1.54 Exercised — — Forfeited (68,300) $ 1.74 Expired (8,000) $ 1.70 Outstanding at end of year 1,753,605 $ 1.75 4.8 $ 10,550 Options exercisable at year-end 1,356,505 $ 1.74 3.9 $ 10,550 |
Table of assumptions used to estimate the fair valuesof options granted 2018 and 2017 | 2018 2017 Risk-free interest rate 2.73-2.89% 2.08-2.23% Expected life in years 6.1 6.1 Expected volatility 54% 54% Expected dividend yield 0 0 Weighted average fair value of grants $ .84 $ .84 |
(6) Accrued Expenses (Tables)
(6) Accrued Expenses (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Payables and Accruals [Abstract] | |
(6) Accrued Expenses | 2018 2017 Accrued legal and accounting $ 67,000 $ 78,925 Accrued payroll and related 594,641 455,518 Accrued other 313,674 121,046 $ 975,315 $ 655,489 |
(8) Income Taxes (Tables)
(8) Income Taxes (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Income Tax Disclosure [Abstract] | |
Components of income tax expense (benefit) for each year | 2018 2017 Current Federal $ (67,956) $ (6,529) State 456 (4,186) Current income tax provision (benefit): (67,500) (10,715) Deferred: United States: Federal 2,285,758 (246,458) State 566,161 35,141 Deferred income tax provision (benefit), net 2,851,919 (211,317) Total $ 2,784,419 $ (222,032) |
Deferred tax assets | December 39, 2018 December 30, 2017 Deferred Tax Assets: Net operating loss carryforwards $ 738,213 $ 634,000 Stock compensation 524,893 478,000 Credit carryforwards 1,365,068 1,494,000 Inventory 281,192 235,000 Accrued liabilities 21,615 20,000 Depreciation 215,936 175,000 Other 3,238 3,000 Gross deferred tax assets 3,150,155 3,039,000 Valuation allowance 2,963,155 — Net deferred tax assets $ 187,000 $ 3,039,000 |
Summary of change in the deferred tax asset | 2018 2017 Balance at beginning of year $ 3,038,666 $ 2,827,349 Deferred tax benefit (provision) 111,236 211,317 Valuation allowance (2,963,155) — Balance at end of year $ 186,747 $ 3,038,666 |
Income tax expense applying federal statutory income tax rate | 2018 2017 Tax at statutory rate $ (193,000) $ (660,000) State tax, net of federal benefit 450 450 Net operating loss and credit carryforwards (68,857) (282,450) Valuation allowance 2,962,902 — Effect of tax cuts and jobs act — 628,000 Other 82,924 92,000 Total $ 2,784,419 $ (222,000) |
(10) Concentration of Credit _2
(10) Concentration of Credit Risk, Significant Customers and Geographic Information (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Risks and Uncertainties [Abstract] | |
Significant Customer | Percent of Total Revenues Significant Customer 2018 2017 A 36 % 28 % B 17 % 14 % C 12 % 9 % D <10 % <10 % |
Revenue derived from the following countries by geographic area | Percent of Total Revenues Country 2018 2017 United States of America 33 % 30 % Germany 53 % 42 % Other 14 % 28 % |
(3) Inventories - (3) Inventori
(3) Inventories - (3) Inventories (Details) - USD ($) | Dec. 29, 2018 | Dec. 30, 2017 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 706,982 | $ 478,567 |
Work in process | 2,248,370 | 1,003,285 |
Finished goods | 693,943 | 1,014,023 |
Gross Inventory | 3,649,295 | 2,495,875 |
Reserve for obsolescence | (456,362) | (386,362) |
Total | $ 3,192,933 | $ 2,109,513 |
(4) Commitments & Contingenci_3
(4) Commitments & Contingencies - Future minimum rental payments over the terms of the lease agreements (Details) | Dec. 29, 2018USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2019 | $ 235,200 |
2020 | 166,200 |
2021 | 25,400 |
Total | $ 426,800 |
(5) Share-Based Compensation _3
(5) Share-Based Compensation Plans - Summary of stock option activity as of December 29, 2018 (Details) | 12 Months Ended |
Dec. 29, 2018USD ($)shares | |
Retirement Benefits [Abstract] | |
Outstanding at beginning of year | 1,666,905 |
Granted | 163,000 |
Exercised | |
Forfeited | 68,300 |
Expired | 8,000 |
Outstanding at end of year | 1,753,605 |
Options exercisable at year-end | 1,356,505 |
Aggregate Intrinsic Value Outstanding at end of year | $ | $ 10,550 |
Aggregate Intrinsic Value Outstanding Exercisable at end of year | $ | $ 10,550 |
Weighted remaining contractual life outstanding | 4 years 8 months |
Weighted remaining contractual life outstanding exercisable | 3 years 9 months |
(5) Share-Based Compensation _4
(5) Share-Based Compensation Plans - Table of assumptions used to estimate the fair valuesof options granted 2018 and 2017 (Details) - $ / shares | 12 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
Retirement Benefits [Abstract] | ||
Risk-free interest rate low | 2.73% | 2.08% |
Risk-free interest rate high | 2.89% | 2.23% |
Expected life in years | 6 years 1 month | 6 years 1 month |
Expected volatility | 54.00% | 54.00% |
Expected dividend yield | 0.00% | 0.00% |
Weighted average fair value of grants | $ .84 | $ .84 |
(6) Accrued Expenses - (6) Accr
(6) Accrued Expenses - (6) Accrued Expenses (Details) - USD ($) | Dec. 29, 2018 | Dec. 30, 2017 |
Payables and Accruals [Abstract] | ||
Accrued legal and accounting | $ 67,000 | $ 78,925 |
Accrued payroll and related | 594,641 | 455,518 |
Accrued other | 313,674 | 121,046 |
Total | $ 975,315 | $ 655,489 |
(8) Income Taxes - Components o
(8) Income Taxes - Components of income tax expense (benefit) for each year (Details) - USD ($) | 12 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
Current | ||
Federal | $ (67,956) | $ (6,529) |
State | 456 | (4,186) |
Current income tax provision (benefit): | (67,500) | (10,715) |
United States: | ||
Federal | 2,285,758 | (246,458) |
State | 566,161 | 35,141 |
Deferred income tax provision (benefit), net | 2,851,919 | (211,317) |
Total | $ 2,784,419 | $ (222,032) |
(8) Income Taxes - Deferred tax
(8) Income Taxes - Deferred tax assets (Details) - USD ($) | Dec. 29, 2018 | Dec. 30, 2017 |
Deferred Tax Assets: | ||
Net operating loss carryforwards | $ 738,213 | $ 634,000 |
Stock compensation | 524,893 | 478,000 |
Credit carryforwards | 1,365,068 | 1,494,000 |
Inventory | 281,192 | 235,000 |
Accrued liabilities | 21,615 | 20,000 |
Depreciation | 215,936 | 175,000 |
Other | 3,238 | 3,000 |
Gross deferred tax assets | 3,150,155 | 3,039,000 |
Valuation allowance | 2,963,155 | |
Net deferred tax assets | $ 187,000 | $ 3,039,000 |
(8) Income Taxes - Summary of c
(8) Income Taxes - Summary of change in the deferred tax asset (Details) - USD ($) | 12 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
Income Tax Disclosure [Abstract] | ||
Balance at beginning of year | $ 3,038,666 | $ 2,827,349 |
Deferred tax benefit (provision) | 111,236 | 211,317 |
Valuation allowance | (2,963,155) | |
Balance at end of year | $ 186,747 | $ 3,038,666 |
(8) Income Taxes - Income tax e
(8) Income Taxes - Income tax expense applying federal statutory income tax rate (Details) - USD ($) | 12 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
Income Tax Disclosure [Abstract] | ||
Tax at statutory rate | (19300000.00%) | (66000000.00%) |
State tax, net of federal benefit | $ 450 | $ 450 |
Net operating loss and credit carryforwards | (68,857) | (282,450) |
Valuation allowance | 2,962,902 | |
Effect of tax cuts and jobs act | 628,000 | |
Other | 82,924 | 92,000 |
Total | $ 2,784,419 | $ (222,000) |
(10) Concentration of Credit _3
(10) Concentration of Credit Risk, Significant Customers and Geographic Information - Significant Customer (Details) | 12 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
Percent of Total Revenues Significant Customer | ||
A | 36.00% | 28.00% |
B | 17.00% | 14.00% |
C | 12.00% | 9.00% |
(10) Concentration of Credit _4
(10) Concentration of Credit Risk, Significant Customers and Geographic Information - Revenue derived from the following countries by geographic area (Details) | 12 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
Percent of Total Revenues | ||
United States of America | 33.00% | 30.00% |
Germany | 53.00% | 42.00% |
Other | 14.00% | 28.00% |
(5) Share-Based Compensation _5
(5) Share-Based Compensation Plans (Details Narrative) | Dec. 29, 2018shares |
Retirement Benefits [Abstract] | |
Shares of common stock available for grant | 1,095,995 |