Cover
Cover - shares | 9 Months Ended | |
Sep. 26, 2020 | Nov. 06, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 26, 2020 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2020 | |
Current Fiscal Year End Date | --12-26 | |
Entity File Number | 0-16088 | |
Entity Registrant Name | CPS TECHNOLOGIES CORP/DE/ | |
Entity Central Index Key | 0000814676 | |
Entity Incorporation, State or Country Code | DE | |
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 Shell Company | false | |
Entity Common Stock, Shares Outstanding | 13,296,168 |
Balance Sheets (Unaudited)
Balance Sheets (Unaudited) - USD ($) | Sep. 26, 2020 | Dec. 28, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 112,575 | $ 133,965 |
Accounts receivable-trade, net | 3,961,606 | 4,086,945 |
Inventories, net | 4,187,272 | 3,099,824 |
Prepaid expenses and other current assets | 173,583 | 147,786 |
Total current assets | 8,435,036 | 7,468,520 |
Property and equipment: | ||
Production equipment | 10,282,980 | 9,649,169 |
Furniture and office equipment | 508,423 | 508,423 |
Leasehold improvements | 934,195 | 934,195 |
Total cost | 11,725,598 | 11,091,787 |
Accumulated depreciation and amortization | (10,478,054) | (10,110,663) |
Construction in progress | 127,408 | 255,754 |
Net property and equipment | 1,374,952 | 1,236,878 |
Right-of-use lease asset | 63,000 | 171,000 |
Deferred taxes, net | 114,253 | 147,873 |
Total assets | 9,987,241 | 9,024,271 |
Current liabilities: | ||
Borrowings against line of credit | 835,123 | 1,249,588 |
Note payable, current portion | 55,795 | |
Accounts payable | 1,221,642 | 1,436,417 |
Accrued expenses | 720,182 | 815,166 |
Deferred revenue | 358,000 | 21,110 |
Lease liability, current portion | 63,000 | 148,000 |
Total current liabilities | 3,253,742 | 3,670,281 |
Note payable less current portion | 169,388 | |
Long term lease liability | 23,000 | |
Total liabilities | 3,423,130 | 3,693,281 |
Stockholders` equity: | ||
Common stock, $0.01 par value, authorized 20,000,000 shares; issued 13,716,242 and 13,427,492, respectively; outstanding 13,296,168 and 13,207,436, respectively; at September 26, 2020 and December 28, 2019; | 137,162 | 134,275 |
Additional paid-in capital | 36,633,553 | 36,094,201 |
Accumulated deficit | (29,248,532) | (30,380,433) |
Less cost of 420,074 and 220,056 common shares repurchased, respectively; at September 26, 2020 and December 28, 2019 | (958,072) | (517,053) |
Total stockholders` equity | 6,564,111 | 5,330,990 |
Total liabilities and stockholders` equity | $ 9,987,241 | $ 9,024,271 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - $ / shares | Sep. 26, 2020 | Dec. 28, 2019 |
Statement of Financial Position [Abstract] | ||
Common stock, authorized shares | 20,000,000 | 20,000,000 |
Common stock, issued shares | 13,716,242 | 13,427,492 |
Common stock, outstanding shares | 13,296,168 | 13,207,436 |
Common stock, par value | $ .01 | $ .01 |
Statements of Operations (Unaud
Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 26, 2020 | Sep. 28, 2019 | Sep. 26, 2020 | Sep. 28, 2019 | |
Income Statement [Abstract] | ||||
Product sales | $ 4,452,387 | $ 4,387,125 | $ 16,721,973 | $ 16,023,615 |
Total Revenues | 4,452,387 | 4,387,125 | 16,721,973 | 16,023,615 |
Cost of product sales | 3,514,813 | 4,164,187 | 13,050,860 | 14,466,266 |
Gross Margin | 937,574 | 222,938 | 3,671,113 | 1,557,349 |
Selling, general and administrative expense | 684,836 | 702,413 | 2,466,198 | 2,523,178 |
Operating income (loss) | 252,738 | (479,475) | 1,204,915 | (965,829) |
Interest income (expense), net | (21,263) | (16,495) | (87,004) | (23,757) |
Other income (expense), net | (3) | 14,446 | ||
Net income (loss) before income tax expense | 231,472 | (495,970) | 1,132,357 | (989,586) |
Income tax provision | 456 | 456 | ||
Net income (loss) | $ 231,016 | $ (495,970) | $ 1,131,901 | $ (989,586) |
Net income (loss) per basic common share | $ 0.02 | $ (0.04) | $ 0.09 | $ (0.07) |
Weighted average number of basic common shares outstanding | 13,288,652 | 13,206,069 | 13,234,508 | 13,206,984 |
Net income (loss) per diluted common share | $ 0.02 | $ (0.04) | $ 0.09 | $ (0.07) |
Weighted average number of diluted common shares outstanding | 13,456,486 | 13,206,069 | 13,320,915 | 13,206,984 |
Statements of Cash Flows (Unaud
Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 26, 2020 | Sep. 28, 2019 | |
Cash flows from operating activities: | ||
Net income | $ 1,131,901 | $ (989,586) |
Adjustments to reconcile net income (loss) to cash provided by (used in) operating activities | ||
Depreciation & amortization | 382,121 | 391,156 |
Share-based compensation | 100,452 | 115,647 |
Deferred taxes | 33,620 | |
Gain on sale of property and equipment | (5,000) | |
Changes in: | ||
Accounts receivable-trade | 125,339 | 257,348 |
Inventories | (1,087,448) | 401,822 |
Prepaid expenses | (25,797) | (16,982) |
Accounts payable | (214,775) | (206,204) |
Deferred revenue | 336,890 | |
Accrued expenses | (94,984) | (274,325) |
Net cash provided by (used in) operating activities | 682,319 | (321,124) |
Cash flows from investing activities: | ||
Purchases of property and equipment | (285,909) | (250,128) |
Proceeds from sale of property and equipment | 5,000 | |
Net cash provided by (used in) investing activities | (280,909) | (250,128) |
Cash flows from financing activities: | ||
Net borrowings on line of credit | (414,465) | 412,732 |
Net proceeds from employee stock options | ||
Payments on note payable | (9,103) | |
Net cash provided by (used in) financing activities | (422,800) | 412,732 |
Net increase (decrease) in cash and cash equivalents | (21,390) | (158,520) |
Cash and cash equivalents at beginning of period | 133,965 | 628,804 |
Cash and cash equivalents at end of period | 112,575 | 470,284 |
Supplemental disclosures of cash flows information: | ||
Cash paid for income taxes | 485 | |
Cash paid for interest | 87,004 | |
Supplemental disclosures of non-cash activity: | ||
Net exercise of stock options | 441,022 | |
Issuance of long term debt to finance equipment purchases | $ 247,807 |
Shareholders Equity (Unaudited)
Shareholders Equity (Unaudited) - USD ($) | Common Stock | Additional Paid-In Capital | Retained Earnings / Accumulated Deficit | Total |
Beginning balance, stockholders equity at Dec. 29, 2018 | $ 5,835,521 | |||
Beginning balance, shares at Dec. 29, 2018 | 13,425,992 | |||
Beginning balance, par value of shares issued at Dec. 29, 2018 | $ 134,260 | |||
Share-based compensation expense | $ 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 balance, shares at Sep. 28, 2019 | 13,427,492 | |||
Ending balance, par value shares issued at Sep. 28, 2019 | $ 134,275 | |||
Beginning balance, stockholders equity at Dec. 28, 2019 | 5,330,990 | $ 5,330,990 | ||
Beginning balance, shares at Dec. 28, 2019 | 13,427,492 | 13,427,492 | ||
Beginning balance, par value of shares issued at Dec. 28, 2019 | $ 134,275 | |||
Share-based compensation expense | 100,452 | |||
Issuance of common stock pursuant to exercise of stock options | $ 438,903 | |||
Issuance of common stock pursuant to exercise of stock options, number of shares issued | 288,750 | |||
Issuance of common stock pursuant to exercise of stock options, par value | $ 2,887 | |||
Net income(loss) | $ 1,131,901 | $ 1,131,901 | ||
Ending balance, stockholders equity at Sep. 26, 2020 | $ 6,564,111 | |||
Ending balance, shares at Sep. 26, 2020 | 13,716,242 | 13,716,242 | ||
Ending balance, par value shares issued at Sep. 26, 2020 | $ 137,162 |
(1) Nature of Business
(1) Nature of Business | 9 Months Ended |
Sep. 26, 2020 | |
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 (MMC’s) 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) Summary of Significant Acco
(2) Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 26, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
(2) Summary of Significant Accounting Policies | (2) Summary of Significant Accounting Policies As permitted by the rules of the Securities and Exchange Commission applicable to quarterly reports on Form 10-Q, these notes are condensed and do not contain all disclosures required by generally accepted accounting principles. The accompanying financial statements are unaudited. In the opinion of management, the unaudited financial statements of CPS reflect all normal recurring adjustments which are necessary to present fairly the financial position and results of operations for such periods. The Company’s balance sheet at December 28, 2019 has been derived from the audited financial statements at that date, but does not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. For further information, refer to the financial statements and footnotes thereto included in the Registrant’s Annual Report on Form 10-K for the year ended December 28, 2019 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. |
(3) Net Income (loss) Per Commo
(3) Net Income (loss) Per Common and Common Equivalent Share | 9 Months Ended |
Sep. 26, 2020 | |
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. The following table presents the calculation of both basic and diluted EPS: Three Months Ended Nine Months Ended September 26, September 28, September 26, September 28, 2020 2019 2020 2019 Basic EPS Computation: Numerator: Net income (loss) $ 231,016 $ (495,970) $ 1,131,901 $ (989,586) Denominator: Weighted average Common shares Outstanding 13,288,652 13,206,069 13,234,508 13,206,984 Basic EPS $ 0.02 $ (0.04) $ 0.09 $ (0.07) Diluted EPS Computation: Numerator: Net income (loss) $ 231,016 $ (495,970) $ 1,131,901 $ (989,586) Denominator: Weighted average Common shares Outstanding 13,288,652 13,206,069 13,234,508 13,206,984 Dilutive effect of stock options 167,834 — 87,217 — Total Shares 13,456,486 13,206,069 13,320,915 13,206,984 Diluted EPS $ 0.02 $ (0.04) $ 0.09 $ (0.07) |
(4) Commitments & Contingencies
(4) Commitments & Contingencies | 9 Months Ended |
Sep. 26, 2020 | |
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 an 11 month duration expiring December 2020. The latter is not expected to be renewed and has not been recorded on the balance sheet in accordance with Accounting Standards Codification (ASC) 842 for leases. 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 26, 2020 (Dollars in Thousands) Sept 26, 2020 Maturity of capitalized lease liabilities Lease payments 2020 (remaining) 39 2021 26 Total undiscounted operating lease payments $ 65 Less: Imputed interest (2) Present value of operating lease liability $ 63 Balance Sheet Classification Current lease liability $ 63 Long-term lease liability — Total operating lease liability $ 63 Other Information Weighted-average remaining lease term for capitalized operating leases 5 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 2020 and is included in operating cash flows. Operating Lease Costs Operating lease cost was $114 thousand during the first nine months of 2020. This cost is related to its long-term operating lease. All other short-term leases were immaterial. |
(5) Share-Based Payments
(5) Share-Based Payments | 9 Months Ended |
Sep. 26, 2020 | |
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 26, 2020 and September 28, 2019. During the quarter ended September 26, 2020, 288,250 options were exercised and 261,355 options expired. Also, during the quarter 500 shares were gifted to an employee for completing 20 years of service to the company. During the quarter ended September 28, 2019, 24,000 options were forfeited and 16,000 options expired. During the quarter ended September 26, 2020 the Company repurchased 200,018 shares for employees to facilitate their exercise of stock options. During the quarter ended September 28, 2019 there were no shares repurchased. During the three and nine months ended September 26, 2020 the Company recognized approximately $17 thousand and $100 thousand, respectively as share-based compensation expense related to share and option grants. 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 28, 2019 the Company recognized approximately $28 thousand and $113 thousand, respectively as share-based compensation expense related to share and option grants. 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. 26, 2020 | |
Inventory Disclosure [Abstract] | |
(6) Inventories | (6) Inventories Inventories consist of the following: September 26, December 28, 2020 2019 Raw materials $ 968,182 $ 778,409 Work in process 1,865,505 1,898,916 Finished goods 1,789,740 871,861 Total inventory 4,623,427 3,549,186 Reserve for obsolescence (436,155) (449,362) Inventories, net $ 4,187,272 $ 3,099,824 |
(7) Accrued Expenses
(7) Accrued Expenses | 9 Months Ended |
Sep. 26, 2020 | |
Payables and Accruals [Abstract] | |
(7) Accrued Expenses | (7) Accrued Expenses Accrued expenses consist of the following: September 26, December 28, 2020 2019 Accrued legal and accounting $ 73,171 $ 62,725 Accrued payroll 552,272 518,015 Accrued other 94,737 234,426 $ 720,182 $ 815,166 |
(8) Line of Credit
(8) Line of Credit | 9 Months Ended |
Sep. 26, 2020 | |
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 (BDC) in the amount of $2.5 million. In May of 2020 this credit line was increased to $3.0 million. 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. At September 26, 2020 the Company had $835 thousand of borrowings under this LOC and its borrowing base at the time would have permitted an additional $1.835 million to have been borrowed. The line of credit is subject to certain financial covenants. |
(9) Note Payable
(9) Note Payable | 9 Months Ended |
Sep. 26, 2020 | |
Debt Disclosure [Abstract] | |
(9) Note Payable | (9) Note Payable In March 2020, the company acquired a Sonoscan ultrasound microscope for a price of $208 thousand. The full amount was financed through a 5 year note payable with Crest Capital Corporation. The note is collateralized by the microscope and is being paid in monthly installments of $4 thousand, consisting of principal plus interest at a rate of 6.47%. In July 2020 CPS placed into service a piece of manufacturing equipment which it financed with the machine’s vendor. The equipment cost of $40 thousand will be paid at the rate of $2 thousand per month over 2 years, resulting in an implied interest rate of 1.90%. The Company’s obligations including interest at September 26, 2020 consist of the following: Remaining in: Payments due by period FY 2020 $ 17,250 FY 2021 $ 69,000 FY 2022 $ 63,984 FY 2023 $ 48,934 FY 2024 and thereafter $ 57,089 Total $ 256,257 |
(10) Income Taxes
(10) Income Taxes | 9 Months Ended |
Sep. 26, 2020 | |
Income Tax Disclosure [Abstract] | |
(10) Income Taxes | (10) 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 valuation allowance reserve, as it is judged more likely than not that all or a portion of its deferred tax assets will not be utilized before they expire. This decision was reached after giving greater weight to the Company’s losses in recent years as compared to its forecasts. No provision for income taxes was provided during the quarter and nine months ended September 26, 2020, as the Company continues to maintain a full valuation allowance against the majority of its deferred tax assets and no current tax is forecasted for the year. |
(3) Net Income (loss) Per Com_2
(3) Net Income (loss) Per Common and Common Equivalent Share (Tables) | 9 Months Ended |
Sep. 26, 2020 | |
Earnings Per Share [Abstract] | |
Calculation of both basic and diluted EPS | Three Months Ended Nine Months Ended September 26, September 28, September 26, September 28, 2020 2019 2020 2019 Basic EPS Computation: Numerator: Net income (loss) $ 231,016 $ (495,970) $ 1,131,901 $ (989,586) Denominator: Weighted average Common shares Outstanding 13,288,652 13,206,069 13,234,508 13,206,984 Basic EPS $ 0.02 $ (0.04) $ 0.09 $ (0.07) Diluted EPS Computation: Numerator: Net income (loss) $ 231,016 $ (495,970) $ 1,131,901 $ (989,586) Denominator: Weighted average Common shares Outstanding 13,288,652 13,206,069 13,234,508 13,206,984 Dilutive effect of stock options 167,834 — 87,217 — Total Shares 13,456,486 13,206,069 13,320,915 13,206,984 Diluted EPS $ 0.02 $ (0.04) $ 0.09 $ (0.07) |
(4) Commitments & Contingenci_2
(4) Commitments & Contingencies (Tables) | 9 Months Ended |
Sep. 26, 2020 | |
Commitments (note 4) | |
Table | (Dollars in Thousands) Sept 26, 2020 Maturity of capitalized lease liabilities Lease payments 2020 (remaining) 39 2021 26 Total undiscounted operating lease payments $ 65 Less: Imputed interest (2) Present value of operating lease liability $ 63 Balance Sheet Classification Current lease liability $ 63 Long-term lease liability — Total operating lease liability $ 63 Other Information Weighted-average remaining lease term for capitalized operating leases 5 months Weighted-average discount rate for capitalized operating leases 6.5% |
(6) Inventories (Tables)
(6) Inventories (Tables) | 9 Months Ended |
Sep. 26, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories consist of the following | September 26, December 28, 2020 2019 Raw materials $ 968,182 $ 778,409 Work in process 1,865,505 1,898,916 Finished goods 1,789,740 871,861 Total inventory 4,623,427 3,549,186 Reserve for obsolescence (436,155) (449,362) Inventories, net $ 4,187,272 $ 3,099,824 |
(7) Accrued Expenses (Tables)
(7) Accrued Expenses (Tables) | 9 Months Ended |
Sep. 26, 2020 | |
Payables and Accruals [Abstract] | |
Accrued expenses consist of the following | September 26, December 28, 2020 2019 Accrued legal and accounting $ 73,171 $ 62,725 Accrued payroll 552,272 518,015 Accrued other 94738 234,426 $ 720,182 $ 815,166 |
(9) Note Payable (Tables)
(9) Note Payable (Tables) | 9 Months Ended |
Sep. 26, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of remaining obligations | Remaining in: Payments due by period FY 2020 $ 17,250 FY 2021 $ 69,000 FY 2022 $ 63,984 FY 2023 $ 48,934 FY 2024 and thereafter $ 57,089 Total $ 256,257 |
(3) Net Income (loss) Per Com_3
(3) Net Income (loss) Per Common and Common Equivalent Share - Calculation of both basic and diluted EPS (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 26, 2020 | Sep. 28, 2019 | Sep. 26, 2020 | Sep. 28, 2019 | |
Basic EPS Computation: | ||||
Net income (loss) | $ 231,016 | $ (495,970) | $ 1,131,901 | $ (989,586) |
Weighted average Common shares Outstanding | 13,288,652 | 13,206,069 | 13,234,508 | 13,206,984 |
Basic EPS | $ 0.02 | $ (0.04) | $ 0.09 | $ (0.07) |
Diluted EPS Computation: | ||||
Net income (loss) | $ 231,016 | $ (495,970) | $ 1,131,901 | $ (989,586) |
Weighted average Common shares Outstanding | 13,288,652 | 13,206,069 | 13,234,508 | 13,206,984 |
Dilutive effect of stock options | $ 167,834 | $ 87,217 | ||
Total Shares | 13,456,486 | 13,206,069 | 13,320,915 | 13,206,984 |
Diluted EPS | $ 0.02 | $ (0.04) | $ 0.09 | $ (0.07) |
(4) Commitments & Contingenci_3
(4) Commitments & Contingencies - Table (Details) | Sep. 26, 2020USD ($) |
Commitments (note 4) | |
2020 (remaining) | $ 39 |
2021 | 26 |
Total undiscounted operating lease payments | 65 |
Less: Imputed interest | (2) |
Present value of operating lease liability | 63 |
Current lease liability | 63 |
Total operating lease liability | $ 63 |
Weighted-average remaining lease term for capitalized operating leases | 5 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. 26, 2020 | Sep. 28, 2019 | Sep. 26, 2020 | Sep. 28, 2019 | |
Share-based Payment Arrangement [Abstract] | ||||
Stock options exercised in the period | 288,250 | 288,250 | ||
Stock options expired in the period | 261,355 | 16,000 | 261,355 | |
Stock options forfeited in the period | 24,000 | 24,000 | ||
Repurchased shares | 200,018 | 200,018 | ||
Share-based compensation expense recognized (in thousands) | $ 17 | $ 100 | $ 28 | $ 113 |
(6) Inventories - Inventories c
(6) Inventories - Inventories consist of the following (Details) - USD ($) | Sep. 26, 2020 | Dec. 28, 2019 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 968,182 | $ 778,409 |
Work in process | 1,865,505 | 1,898,916 |
Finished goods | 1,789,740 | 871,861 |
Total inventory | 4,623,427 | 3,549,186 |
Reserve for obsolescence | (436,155) | (449,362) |
Inventories, net | $ 4,187,272 | $ 3,099,824 |
(7) Accrued Expenses - Accrued
(7) Accrued Expenses - Accrued expenses consist of the following (Details) - USD ($) | Sep. 26, 2020 | Dec. 28, 2019 |
Payables and Accruals [Abstract] | ||
Accrued legal and accounting | $ 73,171 | $ 62,725 |
Accrued payroll | 552,272 | 518,015 |
Accrued other | 94,739 | 234,426 |
Total Accrued Expenses | $ 720,182 | $ 815,166 |
(8) Line of Credit (Details Nar
(8) Line of Credit (Details Narrative) | 9 Months Ended |
Sep. 26, 2020USD ($) | |
Massachusetts Business Development Corporation (BDC) | |
Revolving line of credit maximum borrowing capacity | $ 3,000,000 |
Line of credit agreement length (terms in years) | 3 years |
Borrowing base available | $ 1,835,000 |