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 |