CPS Technologies (CPSH) 10-Q 6 Nov 19 2019 Q3 Quarterly report Financial data

Cover

Cover - shares	9 Months Ended
	Sep. 28, 2019	Oct. 29, 2019
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 28, 2019
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2019
Current Fiscal Year End Date	--12-28
Entity File Number	0-16088
Entity Registrant Name	CPS TECHNOLOGIES CORP/DE/
Entity Central Index Key	0000814676
Entity Tax Identification Number	04-2832509
Entity Incorporation, State or Country Code	DE
Title of 12(b) Security	Common stock, par value 0.01
Trading Symbol	CPSH
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		13,207,436

Balance Sheets (Unaudited)

Balance Sheets (Unaudited) - USD ($)	Sep. 28, 2019	Dec. 29, 2018
Current assets:
Cash and cash equivalents	$ 470,284	$ 628,804
Accounts receivable- trade, net of allowance for doubtful accounts of $10,000	2,795,743	3,053,091
Inventories, net	2,791,111	3,192,933
Prepaid expenses and other current assets	173,320	156,338
Total current assets	6,230,458	7,031,166
Property and equipment:
Production equipment	9,587,303	9,550,043
Furniture and office equipment	525,055	519,779
Leasehold improvements	891,817	891,817
Total cost	11,004,175	10,961,639
Accumulated depreciation and amortization	(10,113,918)	(9,722,767)
Construction in progress	241,901	34,314
Net property and equipment	1,132,158	1,273,186
Right-of-use lease asset (note 4, leases)	207,000
Deferred taxes	186,747	186,747
Total assets	7,756,363	8,491,099
Current liabilities:
Line of credit	412,732
Accounts payable	1,474,059	1,680,263
Accrued expenses	700,990	975,315
Current portion lease liability	148,000
Total current liabilities	2,735,781	2,655,578
Long term lease liability	59,000
Total liabilities	2,794,781	2,655,578
Stockholders equity:
Common stock, $0.01 par value, authorized 20,000,000 shares; issued 13,427,492 and 13,425,992; outstanding 13,207,436 and 13,205,936; at September 28, 2019 and December 29, 2018	134,275	134,260
Additional paid-in capital	36,076,177	35,960,545
Accumulated deficit	(30,731,817)	(29,742,231)
Less cost of 220,056 common shares repurchased at September 28, 2019 and December 29, 2018	(517,053)	(517,053)
Total stockholders equity	4,961,582	5,835,521
Total liabilities and stockholders equity	$ 7,756,363	$ 8,491,099

Balance Sheets (Parenthetical)

Balance Sheets (Parenthetical) - $ / shares	Sep. 28, 2019	Dec. 29, 2018
Statement of Financial Position [Abstract]
Common stock, authorized shares	20,000,000	20,000,000
Common stock, issued shares	13,427,492	13,425,992
Common stock, outstanding shares	13,207,436	13,205,936
Common stock, par value	$ 0.01	$ 0.01

Statements of Operations (Unaud

Statements of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 28, 2019	Sep. 29, 2018	Sep. 28, 2019	Sep. 29, 2018
Revenues:
Product sales	$ 4,387,125	$ 6,116,448	$ 16,023,615	$ 15,500,173
Total Revenues	4,387,125	6,116,448	16,023,615	15,500,173
Cost of product sales	4,164,187	5,152,598	14,466,266	13,786,762
Gross Margin	222,938	963,850	1,557,349	1,713,411
Selling, general and administrative expense	702,413	982,765	2,523,178	2,822,240
Operating loss	(479,475)	(18,915)	(965,829)	(1,108,829)
Interest income (expense), net	(16,495)	(13,679)	(23,757)	(25,313)
Other income		13,645		13,645
Net loss before income tax expense	(495,970)	(18,949)	(989,586)	(1,120,497)
Income tax (benefit)		(5,000)		(275,000)
Net (loss)	$ (495,970)	$ (13,949)	$ (989,586)	$ (845,497)
Net (loss) per basic common share	$ (0.04)	$ 0	$ (0.07)	$ (0.06)
Weighted average number of basic common shares outstanding	13,206,069	13,203,436	13,206,984	13,203,436
Net (loss) per diluted common share	$ (0.04)	$ 0	$ (0.07)	$ (0.06)
Weighted average number of diluted common shares outstanding	13,206,069	13,203,436	13,206,984	13,203,436

Shareholders Equity (Unaudited)

Shareholders Equity (Unaudited) - USD ($)	Common Stock	Additional Paid-In Capital	Treasury Stock	Comprehensive Income / Loss	Retained Earnings / Accumulated Deficit	Total
Beginning balance, stockholders equity at Dec. 30, 2017					$ 9,320,834
Beginning balance, shares at Dec. 30, 2017	13,423,492
Beginning balance, par value of shares issued at Dec. 30, 2017	$ 134,235
Share-based compensation expense		$ 135,698
Tax benefit from exercise of stock options
Repurchase of common stock
Net income(loss)				$ 845,497		$ (845,497)
Ending balance, stockholders equity at Sep. 29, 2018						8,611,035
Ending Ending balance, shares at Sep. 29, 2018	13,423,492
Ending balance, par value shares issued at Sep. 29, 2018	$ 134,235
Beginning balance, stockholders equity at Dec. 29, 2018					$ 5,835,521	$ 5,835,521
Beginning balance, shares at Dec. 29, 2018	13,425,992					13,425,992
Beginning balance, par value of shares issued at Dec. 29, 2018	$ 134,260
Share-based compensation expense		113,397				$ 113,397
Issuance of common stock pursuant to exercise of stock options		$ 2,235
Issuance of common stock pursuant to exercise of stock options, number of shares issued	1,500
Issuance of common stock pursuant to exercise of stock options, par value	$ 15
Net income(loss)				$ 989,586		(989,586)
Ending balance, stockholders equity at Sep. 28, 2019						$ 4,961,582
Ending Ending balance, shares at Sep. 28, 2019	13,427,492					13,427,492
Ending balance, par value shares issued at Sep. 28, 2019	$ 134,275

Statements of Cash Flows (Unaud

Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 28, 2019	Sep. 29, 2018
Cash flows from operating activities:
Net loss	$ (989,586)	$ (845,497)
Adjustments to reconcile net loss to cash provided by (used in) operating activities
Depreciation & amortization	391,156	411,499
Share-based compensation	115,647	135,698
Deferred taxes		(275,000)
Gain on sale of property and equipment		(13,645)
Changes in:
Accounts receivable-trade	257,348	(958,744)
Inventories	401,822	(1,461,763)
Prepaid expenses	(16,982)	(7,907)
Accounts payable	(206,204)	1,046,607
Deferred revenue		(100,000)
Accrued expenses	(274,325)	247,087
Net cash provided by (used in) operating activities	(321,124)	(1,821,665)
Cash flows from investing activities:
Purchases of property and equipment	(250,128)	(343,576)
Proceeds from sale of property and equipment		13,645
Net cash provided by (used in) investing activities	(250,128)	(329,931)
Cash flows from financing activities:
Net borrowings on line of credit	412,732	900,000
Net cash provided by (used in) financing activities	412,732	900,000
Net increase (decrease) in cash and cash equivalents	(158,520)	(1,251,596)
Cash and cash equivalents at beginning of period	628,804	1,339,572
Cash and cash equivalents at end of period	470,284	87,976
Cash paid for taxes, net of refunds	$ 485	$ 486

(1) Nature of Business

(1) Nature of Business	9 Months Ended
	Sep. 28, 2019
Accounting Policies [Abstract]
(1) 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.

(2) Interim Financial Statement

(2) Interim Financial Statements	9 Months Ended
	Sep. 28, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
(2) 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 29, 2018 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 29, 2018 and in CPS’s other SEC reports, which are accessible on the SEC’s website at www.sec.gov and the Company’s website at www.alsic.com. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. New Accounting Pronouncements Pronouncements adopted in 2019 The Company adopted Accounting Standards Codification (ASC) 842 for leases effective at the beginning of the fiscal year, December 30, 2018, using the cumulative-effect adjustment transition method, which applies the provisions of the standard at the effective date without adjusting the comparative periods presented. The Company elected an accounting policy for short-term leases, which allows lessees to avoid recognizing right-of-use assets and liabilities for leases with terms of 12 months or fewer. We have lease agreements with lease and non-lease components, which are generally accounted for separately. We have not elected the practical expedient to account for lease and non-lease components as one lease component. The Company has elected certain practical expedients upon adoption and therefore has not reassessed whether any expired or existing contracts contain leases, has not reassessed the lease classification for any expired or existing leases and has not reassessed initial direct costs for any existing leases. Adoption of the standard resulted in the recognition of operating lease right-of-use assets and corresponding lease liabilities of $310 thousand on the consolidated balance sheet as of December 30, 2018. The standard did not materially impact operating results or liquidity. Disclosures related to the amount, timing and uncertainty of cash flows arising from leases are included in Note 4, Leases.

(3) Net Income (loss) Per Commo

(3) Net Income (loss) Per Common and Common Equivalent Share	9 Months Ended
	Sep. 28, 2019
Earnings Per Share [Abstract]
(3) Net Income (loss) Per Common and Common Equivalent Share	(3) Net Income (loss) Per Common and Common Equivalent 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 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.

(4) Commitments & Contingencies

(4) Commitments & Contingencies	9 Months Ended
	Sep. 28, 2019
Commitments (note 4)
(4) Commitments & Contingencies	(4) Commitments & Contingencies Commitments Leases The Company has two real estate leases—one expiring in February 2021 and one with a 12 month duration with options to extend additional years. Since the latter is not reasonably certain that any options will be exercised, it has not been recorded on the balance sheet in accordance with the accounting policy elected in Note 2. CPS also has a few other leases for equipment which are minor in nature and are generally short-term in duration. None of these have been capitalized. The lease expiring in 2021 (the “Norton facility lease’) is included as a right-of-use lease asset and corresponding lease liability on the balance sheet. This asset and liability was recognized on December 30, 2018 based on the present value of remaining lease payments over the remaining lease term using the Company’s incremental borrowing rate at date of adoption. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. Operating Leases Lease expense for operating leases is recognized on a straight-line basis over the lease term. Lease expense is allocated between Cost of Product Sales and Selling, General and Administrative Expense in the income statement The following table presents information about the amount, timing and uncertainty of cash flows arising from the Company’s capitalized operating leases as of September 28, 2019 (Dollars in Thousands) Sept 28, 2019 Maturity of capitalized lease liabilities Lease payments 2019 (remaining) $ 38 2020 152 2021 26 Total undiscounted operating lease payments $ 216 Less: Imputed interest (9) Present value of operating lease liability $ 207 Balance Sheet Classification Current lease liability $ 148 Long-term lease liability 59 Total operating lease liability $ 207 Other Information Weighted-average remaining lease term for capitalized operating leases 17 months Weighted-average discount rate for capitalized operating leases 6.5% Cash Flows An initial right-of-use asset of $310 thousand was recognized as a non-cash asset addition with the adoption of the new lease accounting standard on December 30, 2018. Cash paid for the amounts included in the present value of operating lease liabilities was $114 thousand during the first nine months of 2019 and is included in operating cash flows. Operating Lease Costs Operating lease cost was $114 thousand during the first nine months of 2019. This cost is related to its long-term operating lease. All other short-term leases were immaterial. Finance Leases The company does not have any finance leases. 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 flows this requirement to its 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 acknowledged this violation and worked with the customer to resolve the problem. 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 informed its insurer of this claim and the Ni plating vendor did the same with its insurer. No amounts for damages had been recorded in the financial statements as management believed that it was not possible at the time to quantify the potential impact, if any, to the Company. On July 9, 2019, the Company received confirmation from its customer accepting the settlement offer of the Company’s insurer. The settlement is covered by the Company’s insurance policy and the Company does not expect to incur any losses as part of the settlement.

(5) Share-Based Payments

(5) Share-Based Payments	9 Months Ended
	Sep. 28, 2019
Share-based Payment Arrangement [Abstract]
(5) Share-Based Payments	(5) 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. There were no stock options granted or issued under the Plan during the quarters ended September 28, 2019 and September 29, 2018. During the quarter ended September 28, 2019, 24,000 options were forfeited and 16,000 expired. During the quarter ended September 29, 2018, 18,600 options were forfeited and 8,000 options expired. During the quarters ended September 28, 2019 and September 29, 2018 there were no shares repurchased. During the three and nine months ended September 28, 2019 the Company recognized approximately $28 thousand and $113 thousand, respectively as share-based compensation expense related to previously granted shares under the Plan. These amounts are included as a component of selling, general and administrative expenses in the statement of operations. During the three and nine months ended September 29, 2018 the Company recognized approximately $33 thousand and $136 thousand, respectively as share-based compensation expense related to previously granted shares under the Plan. These amounts are included as a component of selling, general and administrative expenses in the statement of operations.

(6) Inventories

(6) Inventories	9 Months Ended
	Sep. 28, 2019
Inventory Disclosure [Abstract]
(6) Inventories	(6) Inventories Inventories consist of the following: September 28, December 29, 2019 2018 Raw materials $ 668,141 $ 706,982 Work in process 1,973,122 2,248,370 Finished goods 614,210 693,943 Total inventory 3,255,473 3,649,295 Reserve for obsolescence (464,362) (456,362) Inventories, net $ 2,791,111 $ 3,192,933

(7) Accrued Expenses

(7) Accrued Expenses	9 Months Ended
	Sep. 28, 2019
Payables and Accruals [Abstract]
(7) Accrued Expenses	(7) Accrued Expenses Accrued expenses consist of the following: September 28, December 29, 2019 2018 Accrued legal and accounting $ 68,433 $ 67,000 Accrued payroll 498,633 594,641 Accrued other 133,924 313,674 $ 700,990 $ 975,315

(8) Line of Credit

(8) Line of Credit	9 Months Ended
	Sep. 28, 2019
Commitments (note 4)
(8) Line of Credit	(8) Line of Credit In September 2019, the Company entered into revolving line of credit with The Massachusetts Business Development Corporation in the amount of $2.5 million. This agreement replaces the $1.25 million line of credit with Santander Bank, set to expire September 30, 2019. The agreement includes a demand note allowing the Lender to call the loan at any time. CPS may terminate the agreement without a termination fee after 3 years. The LOC is secured by the accounts receivable and other assets of the Company and has an interest rate of LIBOR plus 650 basis points. The Company has provided BDC with an earnings projection for the year ended December 28, 2019 and the covenant states that until the projection is met, $500 thousand of the line will be locked. At September 29, 2019 the Company had $413 thousand of borrowings under this LOC and its borrowing base at the time would have permitted an additional $1.335 million to have been borrowed. The line of credit is subject to certain financial covenants.

(9) Income Taxes

(9) Income Taxes	9 Months Ended
	Sep. 28, 2019
Notes to Financial Statements
(9) Income Taxes	(9) Income Taxes A valuation allowance against deferred tax assets 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. In December 2018, the Company established a partial valuation allowance reserve, as it is judged more likely than not that a majority of its deferred tax assets will not be used before they expire. This decision was reached after giving greater weight to its losses over the previous three years compared with its forecast of the future. Consistent with this conclusion, no income tax provision/(benefit) has been recorded for the quarter and nine months ending September 28, 2019. The Company recorded a tax benefit of $4 thousand and tax benefit of $231 thousand for federal income taxes during the three and nine months ended September 29, 2018, respectively. The Company recorded a tax benefit of $1 thousand and a tax benefit of $44 thousand for state income taxes during the three and nine months ended September 29, 2018, respectively.

(2) Interim Financial Stateme_2

(2) Interim Financial Statements (Policies)	9 Months Ended
	Sep. 28, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
New Accounting Pronouncements	New Accounting Pronouncements Pronouncements adopted in 2019 The Company adopted Accounting Standards Codification (ASC) 842 for leases effective at the beginning of the fiscal year, December 30, 2018, using the cumulative-effect adjustment transition method, which applies the provisions of the standard at the effective date without adjusting the comparative periods presented. The Company elected an accounting policy for short-term leases, which allows lessees to avoid recognizing right-of-use assets and liabilities for leases with terms of 12 months or fewer. We have lease agreements with lease and non-lease components, which are generally accounted for separately. We have not elected the practical expedient to account for lease and non-lease components as one lease component. The Company has elected certain practical expedients upon adoption and therefore has not reassessed whether any expired or existing contracts contain leases, has not reassessed the lease classification for any expired or existing leases and has not reassessed initial direct costs for any existing leases. Adoption of the standard resulted in the recognition of operating lease right-of-use assets and corresponding lease liabilities of $310 thousand on the consolidated balance sheet as of December 30, 2018. The standard did not materially impact operating results or liquidity. Disclosures related to the amount, timing and uncertainty of cash flows arising from leases are included in Note 4, Leases.

(4) Commitments & Contingenci_2

(4) Commitments & Contingencies (Tables)	9 Months Ended
	Sep. 28, 2019
Commitments (note 4)
Maturity of capitalized lease liabilities	(Dollars in Thousands) Sept 28, 2019 Maturity of capitalized lease liabilities Lease payments 2019 (remaining) $ 38 2020 152 2021 26 Total undiscounted operating lease payments $ 216 Less: Imputed interest (9) Present value of operating lease liability $ 207 Balance Sheet Classification Current lease liability $ 148 Long-term lease liability 59 Total operating lease liability $ 207 Other Information Weighted-average remaining lease term for capitalized operating leases 17 months Weighted-average discount rate for capitalized operating leases 6.5%

(6) Inventories (Tables)

(6) Inventories (Tables)	9 Months Ended
	Sep. 28, 2019
Inventory Disclosure [Abstract]
Inventories	September 28, December 29, 2019 2018 Raw materials $ 668,141 $ 706,982 Work in process 1,973,122 2,248,370 Finished goods 614,210 693,943 Total inventory 3,255,473 3,649,295 Reserve for obsolescence (464,362) (456,362) Inventories, net $ 2,791,111 $ 3,192,933

(7) Accrued Expenses (Tables)

(7) Accrued Expenses (Tables)	9 Months Ended
	Sep. 28, 2019
Payables and Accruals [Abstract]
Accrued expenses	September 28, December 29, 2019 2018 Accrued legal and accounting $ 68,433 $ 67,000 Accrued payroll 498,633 594,641 Accrued other 133,924 313,674 $ 700,990 $ 975,315

(4) Commitments & Contingenci_3

(4) Commitments & Contingencies - Maturity of capitalized lease liabilities (Details)	9 Months Ended
	Sep. 28, 2019USD ($)
Commitments (note 4)
Maturity of capitalized lease liabilities (Dollars in Thousands)	(Dollars in Thousands) Sept 28, 2019 Maturity of capitalized lease liabilities Lease payments 2019 (remaining) $ 38 2020 152 2021 26 Total undiscounted operating lease payments $ 216 Less: Imputed interest (9) Present value of operating lease liability $ 207 Balance Sheet Classification Current lease liability $ 148 Long-term lease liability 59 Total operating lease liability $ 207 Other Information Weighted-average remaining lease term for capitalized operating leases 17 months Weighted-average discount rate for capitalized operating leases 6.5%
2019 (remaining)	$ 38
2020	152
2021	26
Total undiscounted operating lease payments	216
Less: Imputed interest	(9)
Present value of operating lease liability	$ 207
Balance Sheet Classification	(Dollars in Thousands) Sept 28, 2019 Maturity of capitalized lease liabilities Lease payments 2019 (remaining) $ 38 2020 152 2021 26 Total undiscounted operating lease payments $ 216 Less: Imputed interest (9) Present value of operating lease liability $ 207 Balance Sheet Classification Current lease liability $ 148 Long-term lease liability 59 Total operating lease liability $ 207 Other Information Weighted-average remaining lease term for capitalized operating leases 17 months Weighted-average discount rate for capitalized operating leases 6.5%
Current lease liability	$ 148
Long-term lease liability	59
Total operating lease liability	$ 207
Weighted-average remaining lease term for capitalized operating leases	17 months
Weighted-average discount rate for capitalized operating leases	650.00%

(5) Share-Based Payments (Detai

(5) Share-Based Payments (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 28, 2019	Sep. 29, 2018	Sep. 28, 2019	Sep. 29, 2018
Share-based Payment Arrangement [Abstract]
Options forfeited	24,000	18,600
Options Expired	16,000	8,000
Share-based compensation expense ($ in 000's)	$ 28	$ 33	$ 113	$ 136

(6) Inventories - Inventories (

(6) Inventories - Inventories (Details) - USD ($)	Sep. 28, 2019	Dec. 29, 2018
Inventory Disclosure [Abstract]
Raw materials	$ 668,141	$ 706,982
Work in process	1,973,122	2,248,370
Finished goods	614,210	693,943
Total inventory	3,255,473	3,649,295
Reserve for obsolescence	(464,362)	(456,362)
Inventories, net	$ 2,791,111	$ 3,192,933

(7) Accrued Expenses - Accrued

(7) Accrued Expenses - Accrued expenses (Details) - USD ($)	Sep. 28, 2019	Dec. 29, 2018
Payables and Accruals [Abstract]
Accrued legal and accounting	$ 68,433	$ 67,000
Accrued payroll	498,633	594,641
Accrued other	133,924	313,674
Total accrued expenses	$ 700,990	$ 975,315

(8) Line of Credit (Details Nar

(8) Line of Credit (Details Narrative)	3 Months Ended
	Sep. 28, 2019USD ($)
The Massachusetts Business Development Corporation
Revolving line of credit maximum borrowing capacity	$ 2,500,000
Line of credit agreement length (terms in years)	3 years
Borrowing base available	$ 1,335,000

(9) Income Taxes (Details Narra

(9) Income Taxes (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 28, 2019	Sep. 29, 2018	Sep. 28, 2019	Sep. 29, 2018
Notes to Financial Statements
Tax benefit recorded for federal income taxes ($ in 000's)		$ 4		$ 231
Tax benefit recorded for state income taxes ($ in 000's)		$ 1		$ 44