UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the period ended ~~March~~June 3029, 2024

☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from to

Commission file number 0-16088

CPS TECHNOLOGIES CORP.

(Exact Name of Registrant as Specified in its Charter)

Delaware (State or Other Jurisdiction of Incorporation or Organization)	04-2832509 (I.R.S. Employer Identification No.)

111 South Worcester Street Norton MA (Address of principal executive offices)	02766-2102 (Zip Code)

(508) 222-0614 Registrant’s Telephone Number, including Area Code:

~~Registrant’s~~CPS ~~Telephone~~Technologies ~~Number, including Area Code:~~Corp.

CPS TECHNOLOGIES CORP.

111 South Worcester Street

Norton, MA 02766-2102

Former Name, Former Address and Former Fiscal Year if Changed since Last Report

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period than the registrant was required to file such reports), and (2) has been subject to the filing requirements for the past 90 days. ☒ Yes ☐ No

Indicate by check mark whether the registrant has submitted electronically ~~and posted on its corporate web site, if any,~~ every Interactive Data File required to be submitted ~~and posted~~ pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit ~~and post~~ such files). ☒ Yes ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer or a non-accelerated filer or a smaller reporting company, or an emerging growth company. See definition of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company”” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐ Accelerated filer ☐ Non-accelerated filer ☒ Smaller reporting company ☒ Emerging growth company ☐

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (~~15 U~~15U.S.C. 7262(b)) by the registered public ~~accounting~~ firm that prepared or issued its audit report. ~~Yes ☐ No ☒~~

~~Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act):~~ ☐ Yes ☒ No

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act):

☐Yes ☒ No

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.01 par value	CPSH	~~Nasdaq~~NASDAQ Capital ~~Market~~Markets

APPLICABLE ONLY TO CORPORATE ISSUERS:

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date. Number of shares of common stock outstanding as of ~~April~~July 3024, 2024: 14,~~519~~525,~~215~~960.

PART I FINANCIAL INFORMATION

ITEM 1 FINANCIAL STATEMENTS (Unaudited)

CPS TECHNOLOGIES CORP.

Balance Sheets (Unaudited)

	March 30, 2024			December 30, 2023
	June 29,			December 30,
	2024			2023
ASSETS
Current assets:
Cash and cash equivalents	$	86,~~667~~306,~~728~~244		$	8,813,626
Accounts receivable-trade, net		3,848,635			4,389,155
Marketable securities, at fair value		758,701			-
Accounts receivable-other		27,490			83,191
Accounts receivable-trade, net		4,064,293			4,389,155
Inventories, net		4,611,460			4,581,930
Accounts receivable-other		198,348			83,191
Prepaid expenses and other current assets		391,953			276,349
Inventories, net		4,121,678			4,581,930
Total current assets		17,547,266			18,144,251
Prepaid expenses and other current assets		366,655			276,349
Total current assets		15,815,919			18,144,251
Property and equipment:
Production equipment		119,~~155~~940,~~183~~480			11,271,982
Furniture and office equipment		~~952~~891,~~883~~921			952,883
Leasehold improvements		~~985~~873,~~649~~730			985,649
Total cost		1311,~~093~~706,~~715~~131			13,210,514
Accumulated depreciation and amortization		(1110,~~581~~068,~~885~~557	)		(11,936,004	)
Construction in progress		~~206~~496,~~250~~331			281,629
Net property and equipment		12,~~718~~133,~~080~~905			1,556,139
Right-of-use lease asset (note 4, leases)		297,000			332,000
Right-of-use lease asset		261,000			332,000
Deferred taxes		1,609,982			1,569,726
Deferred taxes, net		1,877,302			1,569,726
Total Assets	$	21,172,328			21,602,116
Total assets	$	20,088,126		$	21,602,116
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Note payable, current portion		43,478			46,797
Accounts payable		2,409,773			2,535,086
Accrued expenses		843,770			1,075,137
Deferred revenue		207,247			251,755
Lease liability, current portion		160,000			160,000
Total current liabilities		3,664,268			4,068,775
Note payable less current portion		-			8,090
Deferred revenue – long term		31,277			31,277
Long term lease liability		137,000			172,000
Total liabilities		3,832,545			4,280,142
Commitments & Contingencies
Stockholders’ equity:
Common stock, $0.01 par value, authorized 20,000,000 shares; issued 14,601,487 shares; outstanding 14,519,215 shares at each March 30, 2024 and December 30, 2023		146,015			146,015
Additional paid-in capital		40,341,855			40,180,893
Accumulated deficit		(22,897,949	)		(22,754,796	)
Less cost of 82,272 common shares repurchased at each March 30, 2024 and December 30, 2023		(250,138	)		(250,138	)
Total stockholders’ equity		17,339,783			17,321,974
Total liabilities and stockholders’ equity	$	21,172,328		$	21,602,116

See accompanying notes to financial statements.

(continued)

CPS TECHNOLOGIES CORP.

~~Statements~~Balance ofSheets ~~Operations~~ (Unaudited)

	Fiscal Quarters Ended
	March 30, 2024			April 1, 2023
Revenues:
Product sales	$	5,912,634		$	7,100,267
Total revenues		5,912,634			7,100,267
Cost of product sales		5,006,324			4,855,564
Gross Margin		906,310			2,244,703
Selling, general, and administrative expense		1,165,922			1,550,522
Operating income (loss)		(259,612	)		694,181
Other income, net		79,171			15,590
Income (loss) before taxes		(180,441	)		709,771
Income tax provision (benefit)		(37,288	)		250,570
Net income (loss)	$	(143,153	)	$	459,201
Net income (loss) per basic common share	$	(0.01	)	$	0.03
Weighted average number of basic common shares outstanding		14,519,215			14,452,284
Net income (loss) per diluted common share	$	(0.01	)	$	0.03
Weighted average number of diluted common shares outstanding		14,519,215			14,639,600

(concluded)

	June 29,			December 30,
	2024			2023
LIABILITIES AND STOCKHOLDERS` EQUITY

Current liabilities:
Note payable, current portion	$	31,885		$	46,797
Accounts payable		2,587,874			2,535,086
Accrued expenses		671,853			1,075,137
Deferred revenue		65,578			251,755
Lease liability, current portion		160,000			160,000

Total current liabilities		3,517,190			4,068,775

Note payable less current portion		-			8,090
Deferred revenue – long term		31,277			31,277
Long term lease liability		101,000			172,000

Total liabilities		3,649,467			4,280,142

Commitments and contingencies (note 6)

Stockholders` equity:
Common stock, $0.01 par value, authorized 20,000,000 shares; issued 14,601,487 shares; outstanding 14,519,215 shares at each June 29, 2024 and December 30, 2023		146,015			146,015
Additional paid-in capital		40,386,335			40,180,893
Accumulated other comprehensive income		8,701			-
Accumulated deficit		(23,852,254	)		(22,754,796	)
Less cost of 82,272 common shares repurchased at each June 29, 2024 and December 30, 2023		(250,138	)		(250,138	)

Total stockholders` equity		16,438,659			17,321,974

Total liabilities and stockholders` equity	$	20,088,126		$	21,602,116

See accompanying notes to financial statements.

CPS TECHNOLOGIES ~~CORPORATION STATEMENTS OF STOCKHOLDERS’ EQUITY (UNAUDITED) FOR THE THREE MONTHS ENDED March 30, 2024 AND April 1, 2023~~CORP.

	Common Stock
	Number of shares issued		Par Value		Additional paid-in capital		Accumulated deficit			Stock repurchased			Total stockholders’ equity
Balance at December 30, 2023		14,601,487	$	146,015	$	40,180,893	$	(22,754,796	)	$	(250,138	)	$	17,321,974
Share-based compensation expense		—		—		160,962		—			—			160,962
Net loss		—		—		—		(143,153	)		—			(143,153	)
Balance at March 30, 2024		14,601,487		146,015	$	40,341,855	$	(22,897,949	)	$	(250,138	)	$	17,339,783
Balance at December 31, 2022		14,460,486	$	144,605	$	39,726,851	$	(24,125,092	)	$	(40,848	)	$	15,705,516
Share-based compensation expense		—		—		130,441		—			—			130,441
Employee options exercises		7,001		70		10,215		—			(790	)		9,495
Net income		—		—		—		459,201			—			459,201
Balance at April 1, 2023		14,467,487		144,675	$	39,867,507	$	(23,665,891	)	$	(41,638	)	$	16,304,653

Statements of Operations and Other Comprehensive Income (Unaudited)

	Three Months Ended					Six Months Ended
	June 29,			July 1,		June 29,			July 1,
	2024			2023		2024			2023
Revenues:
Product sales	$	5,030,313		$	7,418,138	$	10,942,947		$	14,518,405

Total revenues		5,030,313			7,418,138		10,942,947			14,518,405

Cost of product sales		5,260,305			5,221,879		10,266,629			10,077,444

Gross margin		(229,992	)		2,196,259		676,318			4,440,961

Selling, general, and administrative expense		1,084,995			1,465,349		2,250,917			3,015,871

Income (loss) from operations		(1,314,987	)		730,910		(1,574,599	)		1,425,090

Interest income (expense), net		90,851			79,652		170,021			95,242

Net income (loss) before income tax		(1,224,136	)		810,562		(1,404,578	)		1,520,332
Income tax provision (benefit)		(269,832	)		210,058		(307,120	)		460,628

Net income (loss)	$	(954,304	)	$	600,503	$	(1,097,458	)	$	1,059,704
Other comprehensive income
Net unrealized gains on available for sale securities		8,701			--		8,701			--
Total other comprehensive income		8,701			--		8,701			--

Total comprehensive income (loss)		(945,603	)		600,503		(1,088,757	)		1,059,704	)

Net income (loss) per basic common share	$	(0.07	)	$	0.04	$	(0.08	)	$	0.07

Weighted average number of basic common shares outstanding		14,519,215			14,493,970		14,519,215			14,473,128

Net income (loss) per diluted common share	$	(0.07	)	$	0.04	$	(0.08	)	$	0.07

Weighted average number of diluted common shares outstanding		14, 519,215			14,621,929		14,519,215			14,630,765

See accompanying notes to financial statements.

CPS TECHNOLOGIES CORP.
STATEMENTS OF STOCKHOLDERS’ EQUITY (UNAUDITED)
FOR THE THREE AND SIX MONTHS ENDED JUNE 29, 2024 AND JULY 1, 2023

	Common Stock

	Number of shares issued		Par Value		Additional paid-in capital		Accumulated other comprehensive income		Accumulated deficit			Stock repurchased			Total stockholders' equity
Balance at March 30, 2024		14,601,487	$	146,015	$	40,341,855	$	-	$	(22,897,950	)	$	(250,138	)	$	17,339,782
Share-based compensation expense		-		-		44,480		-		-			-			44,480
Other comprehensive income		-		-		-		8,701		-			-			8,701
Net loss		-		-		-		-		(954,304	)		-			(954,304	)
Balance at June 29, 2024		14,601,487	$	146,015	$	40,386,335	$	8,701	$	(23,852,254	)	$	(250,138	)	$	16,438,659

	Common Stock
	Number of shares issued		Par Value		Additional paid-in capital		Accumulated other comprehensive income		Accumulated deficit			Stock repurchased			Total stockholders' equity
Balance at December 30, 2023		14,601,487	$	146,015	$	40,180,893	$	-	$	(22,754,796	)	$	(250,138	)	$	17,321,974
Share-based compensation expense		-		-		205,442		-		-			-			205,442
Other comprehensive income		-		-		-		8,701		-			-			8,701
Net loss		-		-		-		-		(1,097,458	)		-			(1,097,458	)
Balance at June 29, 2024		14,601,487	$	146,015	$	40,386,335	$	8,701	$	(23,852,254	)	$	(250,138	)	$	16,438,659

	Common Stock				Additional								Total
	Number of				paid-in		Accumulated			Stock			stockholders'
	shares issued		Par Value		capital		deficit			repurchased			equity
Balance at April 1, 2023		14,467,487	$	144,675	$	39,867,507	$	(23,665,891	)	$	(41,638	)	$	16,304,653
Share-based compensation expense		-		-		17,316		-			-			17,316
Employee option exercises		79,000		790		93,630		-			(70,300	)		24,120
Net income		-		-		-		600,503			-			600,503
Balance at July 1, 2023		14,546,487	$	145,465	$	39,978,453	$	(23,065,388	)	$	(111,938	)	$	16,946,592

	Common Stock				Additional								Total
	Number of				paid-in		Accumulated			Stock			stockholders'
	shares issued		Par Value		capital		deficit			repurchased			equity
Balance at December 31, 2022		14,460,486	$	144,605	$	39,726,851	$	(24,125,092	)	$	(40,848	)	$	15,705,516
Share-based compensation expense		-		-		147,757		-			-			147,757
Employee options Exercised		86,001		860		103,845		-			(71,090	)		33,615
Net income		-		-		-		1,059,704			-			1,059,704
Balance at July 1, 2023		14,546,487	$	145,465	$	39,978,453	$	(23,065,388	)	$	(111,938	)	$	16,946,592

See accompanying notes to financial statements.

CPS TECHNOLOGIES CORP.

Statements of Cash Flows (Unaudited)

	Fiscal Quarters Ended
	Six Months Ended
	March 30, 2024			April 1, 2023
	June 29,			July 1,
	2024			2023
Cash flows from operating activities:
Net income (loss)	$	(~~143~~1,~~153~~097,458	)	$	~~459~~1,~~201~~059,704
Adjustments to reconcile net income (loss) to cash provided by (used in) operating activities:
Depreciation and amortization		~~101~~237,~~405~~954			~~124~~252,~~608~~969
Share-based compensation		~~160~~205,~~962~~442			~~130~~147,~~441~~757
Changes in:
Accounts receivable - trade		540,520			(936,163	)
Accounts receivable-trade		324,862			(1,296,584	)
Accounts receivable - other		55,701			(15,035	)
Accounts receivable-other		(115,157	)		611,028
Inventories		~~(29~~460,~~530~~252	)		~~183~~62,~~246~~148
Prepaid expenses and other current assets		(~~115~~90,~~604~~306	)		(8877,~~359~~073	)
Accounts payable		~~(125~~52,~~313~~788	)		~~210~~522,~~028~~667
Accrued expenses		(~~231~~403,~~367~~284	)		~~(89~~40,~~402~~658	)
Deferred taxes		(40307,~~256~~576	)		~~226~~405,~~444~~404
Deferred revenue		(44186,~~508~~177	)		(~~924~~892,~~080~~803	)
Net cash provided by (used in) operating activities		~~128~~(918,~~857~~660	)		~~(719~~835,~~071~~875	)
Cash flows from investing activities:
Purchases of property and equipment		(~~263~~815,~~346~~720	)		(~~176~~433,~~618~~579	)
Net cash used in investing activities		(263,346	)		(176,618	)
Purchase of marketable securities		(750,000	)		-
Net cash used in investing activities		(1,565,720	)		(433,579	)
Cash flows from financing activities:
Proceeds from exercise of employee stock options		-			9,495
Proceeds from exercise of employee stock options, net of repurchases		-			33,615
Payments on note payable		(1123,~~409~~002	)		(1021,~~696~~439	)
Net cash used in financing activities		(11,409	)		(1,201	)
Net cash provided by (used in) financing activities		(23,002	)		12,176
Net decrease in cash and cash equivalents		(145,898	)		(896,890	)
Net increase (decrease) in cash and cash equivalents		(2,507,382	)		414,472
Cash and cash equivalents at beginning of period		8,813,626			8,266,753
Cash and cash equivalents at end of period	$	86,~~667~~306,~~728~~244		$	78,~~369~~681,~~863~~225
Supplemental disclosures of cash flows information:
Cash paid for interest	$	~~825~~1,465		$	12,~~538~~902
Supplemental disclosures of non-cash activity:
Net exercise of stock options	$	-		$	~~790~~71,090

See accompanying notes to financial statements.

CPS TECHNOLOGIES CORP. Notes to Financial Statements (Unaudited)

Notes to Financial Statements

(Unaudited)

(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.

Using its proprietary MMC technology, the Company also produces light-weight armor, particularly for extreme environments and heavy threat levels.

The Company also engages in research and development, in some cases government funded and in others internally funded, focused on developing new products in response to customer requirements. These products expand our offerings in existing markets and enable penetration into new markets.

The Company sells into several end markets including the wireless communications infrastructure market, high-performance microprocessor market, motor controller market, and other microelectronic and defense markets.

(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 30, 2023 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 30, 2023 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.cpstechnologysolutions.com.

The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year.

(3) ~~Net~~Marketable ~~Income (Loss) Per Common and Common Equivalent Share~~Securities

~~Basic~~ Investments ~~net~~consist ~~income~~of ~~(loss)~~U.S. ~~per~~Treasury ~~common~~Bills ~~share~~with ismaturities ~~calculated~~up byto ~~dividing~~one ~~net income (loss) by the weighted average number of common shares outstanding during the period~~year. ~~Diluted~~Since ~~net~~it ~~income (loss) per common share~~ is ~~calculated~~not bymanagement’s ~~dividing~~intention ~~net~~to ~~income~~hold ~~(loss)~~these bydebt ~~the~~securities ~~sum~~until of the ~~weighted~~maturity ~~average~~dates, ~~number~~these ~~of common shares plus additional common shares that would~~ have been ~~outstanding~~classified ifas ~~potential dilutive common shares had been issued~~ available-for-sale ~~granted~~(“AFS”) ~~stock options~~ and ~~stock~~are ~~purchase~~recorded ~~rights.~~on ~~Had there been a profit in Q1 2024,~~ the ~~dilutive~~balance ~~effect~~sheet ~~would~~at ~~have~~fair ~~been 74~~value,~~285~~ ~~shares. Common~~with ~~stock~~changes ~~equivalents~~in ~~are~~fair ~~excluded~~value ~~from~~recorded ~~the~~as ~~diluted calculations when~~ a ~~net~~component ~~loss~~of isother ~~incurred~~comprehensive ~~as they would be anti-dilutive~~income.

(4) Fair value of Marketable Securities

ASC 820, Fair Value Measurements (“ASC 820”) states that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability. The three-tiered fair value hierarchy, which prioritizes which inputs should be used in measuring fair value, is comprised of: (Level I) observable inputs such as quoted prices in active markets; (Level II) inputs other than quoted prices in active markets that are observable either directly or indirectly and (Level III) unobservable inputs for which there is little or no market data. The fair value hierarchy requires the use of observable market data when available in determining fair value. CPS’ marketable securities consist solely of US Government bonds with a maturity of 12 months or less and which fall under level II of the fair value hierarchy. The value of these bonds as of June 29, 2024 was $758,701. CPS held no investments in marketable securities as of December 30, 2023.

	June 29, 2024	December 30, 2023
Cost basis	$ 750,000	--
Unrealized gain	$ 8,701	--
Total fair value	$ 758,701	--

(5) Net Income Per Common and Common Equivalent Share

Basic net income per common share is calculated by dividing net income by the weighted average number of common shares outstanding during the period. Diluted net income per common share is calculated by dividing net income by the sum of the weighted average number of common shares plus additional common shares that would have been outstanding if potential dilutive common shares had been issued for granted stock options and stock purchase rights. Common stock equivalents are excluded from the diluted calculations when a net loss is incurred as they would be anti-dilutive. Had there been a profit in Q2 2024, the dilutive effect would have been 29,254 shares.

The following table presents the calculation of both basic and diluted EPS:

	Three Months Ended					Six Months Ended
	March 30, 2024			April 1, 2023
	June 29,			July 1,		June 29,			July 1,
Basic EPS Computation:
	2024			2023		2024			2023
Numerator:
Basic EPS Computation:
Net income (loss)	$	(143,153	)	$	459,201
Numerator:
Denominator:
Net income (loss)	$	(954,304	)	$	600,503	$	(1,097,458	)	$	1,059,704
Weighted average common shares outstanding		14,519,215			14,452,284
Denominator:
Basic EPS	$	(0.01	)	$	0.03
Weighted average
Diluted EPS Computation:
Common shares
Numerator:
Outstanding		14,519,215			14,493,970		14,519,215			14,473,128
Net income (loss)	$	(143,153	)	$	459,201
Basic EPS	$	(0.07	)	$	0.04	$	(0.08	)	$	0.07
Denominator:
Diluted EPS Computation:
Weighted average common shares outstanding		14,519,215			14,452,284
Numerator:
Dilutive effect of stock options		-			187,316
Net income (loss)	$	(954,304	)	$	600,503	$	(1,097,458	)	$	1,059,704
Total Shares		14,519,215			14,639,600
Denominator:
Diluted EPS	$	(0.01	)	$	0.03
Weighted average
Common shares
Outstanding		14,519,215			14,493,970		14,519,215			14,473,128
Dilutive effect of stock options		-			127,959		-			157,637
Total Shares		14,519,215			14,621,929		14,519,215			14,630,765
Diluted EPS	$	(0.07	)	$	0.04	$	(0.08	)	$	0.07

(46) Commitments & Contingencies

Commitments

Operating Leases

The Company has one real estate lease expiring in February 2026. CPS also has a few other leases for equipment which are minor in nature and are generally short-term in duration. None of these equipment leases have been capitalized as 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.

The real estate lease expiring in 2026 (the “Norton facility lease”) is included as a right-of-use lease asset and corresponding lease liability ~~(current~~ ~~and noncurrent portions)~~ on the balance sheet. This asset and liability was recognized ~~on March 30, 2024~~ based on the present value of lease payments over the lease term using the Company’s incremental borrowing rate at commencement date. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants.

The Norton facility lease comprises approximately 38 thousand square feet. The lease is 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 renew the lease starting in March 2026 through February 2032. ~~The Company is not reasonably certain these extensions will be exercised at this time, and therefore are not included in the lease asset or liability.~~ Annual rental payments range from $~~152~~160 thousand to $165 thousand through maturity.

The following table presents information about the amount, timing and uncertainty of cash flows arising from the Company’s capitalized operating ~~leases~~lease as of ~~March~~June 3029, 2024:

(Dollars in Thousands)	June 29, 2024
Maturity of capitalized lease liabilities	Lease payments
Remaining 2024	$	124
2024	$	83
2025		165
2026		28
Total undiscounted operating lease payments	$	~~317~~276
Less: Imputed interest		(2015	)
Present value of operating lease liability	$	~~297~~261
Balance Sheet Classification
Current lease liability	$	160
Long-term lease liability		137
Total operating lease liability	$	297
Other Information
Weighted-average remaining lease term for capitalized operating leases (in months)		23
Weighted-average discount rate for capitalized operating leases		6.6	%

Balance Sheet Classification
Current lease liability	$	160
Long-term lease liability		101
Total operating lease liability	$	261

Other Information
Remaining lease term for capitalized operating lease (months)		20
Discount rate for capitalized operating leases		6.6	%

Operating Lease Costs and Cash Flows

Operating lease cost and cash paid was $41 thousand during the ~~first~~second quarter of 2024 and $82 thousand for the six months ended June 29, 2024. ~~This~~These ~~cost~~costs isare related to its long-term operating lease. All other short-term leases were immaterial.

Finance Leases

The ~~Company~~company does not have any finance leases.

(57) 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~~company uses the Black-Scholes option pricing model to determine the fair value of the stock options granted.

During the ~~quarters~~quarter ended ~~March~~June 3029, 2024, no stock options were granted to employees under the Company’s 2020 Equity Incentive Plan Stock Incentive Plan (the “Plan”) and no stock options were granted to outside directors during the quarter ended ~~April~~June 29, 2024. During the quarter ended July 1, 2023, a total of ~~135~~60,~~500~~000 ~~and 0~~ stock options, ~~respectively,~~ were granted to employees under the Company’s 2020 Equity Incentive Plan Stock Incentive Plan (the “Plan”) and ano ~~total of 75,000 and 50,000~~ stock options, ~~respectively,~~ were granted to outside directors during the ~~quarters~~quarter ended ~~March~~July 301, ~~2024~~2023, ~~and April~~issued 1,at ~~2023~~a weighted average price of $2.66 per share.

During the ~~quarter~~three and six months ended ~~March~~June 3029, 2024, there were 0no options exercised and corresponding shares issued. During the ~~quarter~~three and six months ended ~~April~~July 1, 2023, there were 779,000 and 86,001 options exercised and corresponding shares issued at a weighted average price of $1.4720 and $1.22, respectively.

During the ~~quarter~~three and six months ended ~~March~~June 3029, 2024, the Company ~~repurchased~~did 0not repurchase any shares for employees to facilitate their exercise of stock options. During the ~~quarter~~three and six months ended ~~April~~July 1, 2023, the Company repurchased ~~285~~24,642 and 24,927 shares, respectively, for employees to facilitate their exercise of stock options.

There were also 1,097,900 options outstanding at a weighted average price of $2.61 with a weighted average remaining ~~contractual~~ term of 76.0681 years as of ~~March~~June 3029, 2024, and there were ~~582~~610,~~800~~000 ~~shares~~options exercisable at a weighted average price of $2.4445 with a weighted average remaining term of 5.309 years~~. There~~ ~~were 1,004,400 options outstanding at a weighted average price of $2.51 with a weighted average remaining contractual term of 6.10 years~~ as of ~~April~~June 129, ~~2023~~2024. The Plan, as amended, is authorized to issue 1,500,000 shares of common stock. As of ~~March~~June 3029, 2024, there were 638,300 shares available for future grants under the 2020 Plan and 236,200 shares outstanding under the 2009 Plan.

As of ~~March~~June 3029, 2024, there was $~~693~~648 thousand of total unrecognized compensation cost related to ~~nonvested~~non-vested share-based compensation arrangements granted under the Plan; that cost is expected to be recognized over a weighted average period of 2.4493 years.

During the ~~quarters~~three ~~ended March~~and ~~30,~~six ~~2024~~months ~~and~~ended ~~April~~June 129, ~~2023~~2024, the Company recognized ~~approximately~~ $~~161~~44,480 ~~thousand~~ and $~~130 thousand~~205,442, respectively, as shared-based compensation expense related to previously granted shares under the Plan.

~~(6) Inventories~~During the three and six months ended July 1, 2023, the Company recognized $17,316 and $147,757, respectively, as shared-based compensation expense related to previously granted shares under the Plan.

(8) Inventories

Inventories consist of the following:

	March 30, 2024			December 30, 2023
	June 29,			December 30,
Raw materials	$	2,745,792		$	2,861,333
	2024			2023
Work in process		1,577,574			1,493,582
Raw materials	$	2,567,758		$	2,861,333
Finished goods		616,054			537,975
Work in process		1,579,991			1,493,582
Gross inventory		4,939,420			4,892,890
Finished goods		393,889			537,975
Reserve for obsolescence		(327,960	)		(310,960	)
Total inventory		4,541,638			4,892,890
Inventories, net	$	4,611,460		$	4,581,930
Reserve for obsolescence		(419,960	)		(310,960	)
Inventories, net	$	4,121,678		$	4,581,930

(79) Accrued Expenses

Accrued expenses consist of the following:

	March 30, 2024		December 30, 2023
	June 29,		December 30,
Accrued legal and accounting	$	57,460	$	86,000
	2024		2023
Accrued payroll and related expenses		387,271		649,201
Accrued legal and accounting	$	67,846	$	86,000
Accrued other		399,039		339,936
Accrued payroll and related expenses		246,953		649,201
Total Accrued Expenses	$	843,770	$	1,075,137
Accrued product returns		288,000		288,000
Accrued other		69,054		51,936
	$	671,853	$	1,075,137

(810) ~~Revolving~~ Line of Credit

In May 2023, the Company terminated its $3.0 million revolving line of credit (LOC) with Massachusetts Business Development Corporation (BDC). A new LOC in the amount of $3.0 million was entered into with Rockland Trust Company. The LOC is secured by the accounts receivable and other assets of the Company and has an interest rate of the National Prime Rate as published by the Wall Street Journal (8.5% at ~~March~~June 3029, 2024). On ~~March~~June 3029, 2024, the Company had $0 of borrowings under this LOC and its borrowing base at the time would have permitted an additional $3.0 million to have been borrowed. The ~~LOC~~line of credit remains in effect until terminated ~~per~~by mutual agreement byof both parties. ~~Total interest expense for Q1 2024 was $0 and was $0 thousand for Q1 2023.~~

(911) Note Payable

In March 2020, the Company acquired inspection equipment for a price of $208 thousand. The full amount was financed through a 5 year note payable with a third -party equipment finance company. The note is collateralized by the equipment and is being paid in monthly installments of $4 thousand, consisting of principal plus interest at a ~~fixed~~ rate of 6.47%.

The aggregate maturities of the notes payable based on the payment terms of the agreement are as follows:

Remaining in:	Payments due by period
FY 2024	$	3523,~~388~~795
FY 2025	$	8,090
Total	$	4331,~~478~~885

Total interest expense on notes payable during Q1 2024 was $~~825 compared to $~~1,~~538 in Q1 2023~~465.

(1012) 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. Management has determined that a valuation allowance is not needed as it expects that the deferred tax asset will be fully utilized.

~~The~~For ~~Company believes that it is “more likely than not” that~~ the ~~Company~~three ~~will~~and besix ~~able~~months toended June ~~fully~~29, ~~utilize the deferred tax asset. For the first quarter of~~ 2024 the deferred tax asset was increased $40,256 and $307,576 for the estimated tax benefit on Q1Q2 and year to date net ~~loss.~~losses, respectively

ITEM 2

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion and analysis of financial condition and results of operations is based upon and should be read in conjunction with the financial statements of the Company and notes thereto included in this report and the Company’s Annual Report on Form 10-K for the year ended December 30, 2023 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.cpstechnologysolutions.com.

Forward-Looking Statements

This Quarterly Report on Form 10-Q contains forward-looking statements that involve a number of risks and uncertainties. There are a number of factors that could cause the Company’s actual results to differ materially from those forecasted or projected in such forward-looking statements. This includes the impact of the Russian invasion of Ukraine and other conflicts and potential conflicts throughout the world and the impact of a strong dollar on the prices the Company charges to foreign customers, which are discussed in Item 3 of this report. Readers are cautioned not to place undue reliance on these forward-looking statements which speak only as of the date hereof. The Company undertakes no obligation to publicly release the results of any revisions to these forward-looking statements which may be made to reflect events or changed circumstances after the date hereof or to reflect the occurrence of unanticipated events.

Critical Accounting ~~Policies~~Estimates

The critical accounting ~~policies~~estimates utilized by the Company in preparation of the accompanying financial statements are set forth in Part II, Item 7 of the Company’s Annual Report on Form 10-K for the year ended December 30, 2023, under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations”. There have been no material changes to these policies since December 30, 2023.

Overview

Products we provide include baseplates for motor controllers used in high-speed electric trains, subway cars, wind turbines, and hybrid and electric vehicles. We provide baseplates and housings used in radar, satellite and avionics applications. We provide lids and heat spreaders used with high performance integrated circuits for use in internet switches and routers. We provide baseplates and housings used in modules built with Wide Band Gap Semiconductors like Silicon Carbide (“SiC”) and Gallium Nitride (“GaN”), collectively Metal Matrix Composites (“MMC”). CPS also assembles housings and packages for hybrid circuits. These housings and packages may include MMC components; they may include components made of more traditional materials such as aluminum, cold rolled steel and Kovar. Using its proprietary MMC technology, the Company also produces light-weight vehicle armor, particularly for extreme environments and heavy threat levels. In addition the Company engages in research and development activities with the goal of developing new products that address challenging customer requirements. These activities typically leverage the company’s extensive knowledge base in the development and volume manufacturing of advanced materials.

CPS’s products are custom rather than catalog items. They are made to customers’ designs and are used as components in systems built and sold by our customers. At any point in time our product mix will consist of some products with on-going production demand, and some products which are in the prototyping or evaluation stages at our customers. The Company seeks to have a portfolio of products which include products in every stage of the technology adoption lifecycle at our customers. CPS’ growth is dependent upon the level of demand for those products already in production, as well as its success in achieving new "design wins" for future products.

As a manufacturer of highly technical and custom products, the Company incurs fixed costs needed to support the business, but which do not vary significantly with changes in sales volume. These costs include the fixed costs of applications such as engineering, tooling design and fabrication, process engineering, and others. Accordingly, particularly given our current size, changes in sales volume generally result in even greater changes in financial performance on a percentage basis as fixed costs are spread over a larger or smaller base. Sales volume is therefore a key financial metric used by management.

The Company believes the underlying demand for MMC, housings for hybrid circuits and our proprietary armor solution is growing as the electronics and other industries seek higher performance, higher reliability, and reduced costs. CPS believes that the Company is well positioned to offer our solutions to current and new customers as these demands grow.

CPS was incorporated in Massachusetts in 1984 as Ceramics Process Systems Corporation and reincorporated in Delaware in April 1987 through a merger into a wholly-owned Delaware subsidiary organized for purposes of the reincorporation. In July 1987, CPS completed our initial public offering of 1.5 million shares of our Common Stock. In March 2007, we changed our name from Ceramics Process Systems Corporation to CPS Technologies Corporation.

Results of Operations for the ~~First~~Second Fiscal Quarter of 2024 (Q1Q2 2024) Compared to the ~~First~~Second Fiscal Quarter of 2023 (Q1Q2 2023); (all $ in 000’s)

Revenues totaled $5,~~913~~030 in Q1Q2 2024 compared with $7,~~100~~418 generated in Q1Q2 2023, a decrease of 1732%. ~~Two~~This ~~factors~~decrease inwas ~~particular~~mainly ~~contributed~~due to ~~this~~the ~~decrease~~completion of the armor contract for the US Navy in Q2 2024 as compared to 2023. ~~One~~In addition, one of ~~our~~the ~~largest~~Company’s major customers in 2023 significantly reduced their purchases in Q2 due to their having excess inventory that they are in the process of working down. Additionally, while we are cautiously optimistic that identified quality issues have been resolved, we continue to run tests which occupy machine time that would otherwise have been spent on production for customers.

Gross ~~margin~~loss in Q1Q2 2024 totaled $~~906~~230 or 15-5% of sales. This compares with gross ~~margin~~profit in Q1Q2 2023 of $2,~~245~~196 or 3230% of sales. This percentage decrease was due to ~~the~~several ~~lower~~factors ~~sales~~including ~~volumes~~the onimpact of fixed costs on significantly lower revenues, as well as ~~the~~abnormally ~~aforementioned~~low ~~testing~~production ~~being~~yield ~~done~~levels onin ~~the~~some ~~quality~~of ~~issues~~our hermetic package products.

Selling, general and administrative (SG&A) expenses totaled $1,~~166~~085 in Q1Q2 2024 compared with SG&A expenses of $1,~~551~~465 in Q1Q2 2023. This decrease was primarily due ~~in part~~ to athe reduction in variable compensation as ~~well~~a asresult ~~lower~~of ~~commission~~weaker ~~expense~~results ~~due~~from tooperations ~~lower~~in ~~revenue~~Q2 ~~numbers~~2024 ~~and~~as ~~their~~compared ~~impact~~to onQ2 ~~profitability~~2023. In addition, ~~there~~the ~~are~~Company awas ~~number of areas in which management has been~~ able to reduce ~~SG&A~~its ~~expenses~~outside ~~compared~~consulting ~~to last year~~costs.

The Company experienced an operating loss of $~~260~~1,315 in Q1Q2 2024 compared with an operating profit of $~~694~~731 in Q1Q2 2023, a decrease of ~~137~~280%. This decrease was a result of the decreased gross margin, partially offset by the decrease in SG&A expenses.

Results of Operations for the First Six Months of 2024 Compared to the First Six Months of 2023 (all $ in 000s)

Total revenue was $10,943 in the first half of 2024, a 25% decrease compared with total revenue of $14,518 in the first half of 2023. This decrease was mainly due to the completion of our armor order for the US Navy in 2024 as compared to 2023. In addition, one of the Company’s major customers in 2023 significantly reduced their purchases in both Q1 and Q2 due to their having excess inventory that they are in the process of working down.

Gross margin in the first six months of 2024 totaled $676 or 6% of sales. In the first six months of 2023 gross margin totaled $4,441 or 31% of sales. This decrease was due to the decrease in revenue and the decreased coverage of our fixed costs, as well as the increased costs incurred by the Company in non-revenue producing activities, designed to increase revenue in the future, including fiber reinforced aluminum and new armor configurations. .

Selling, general and administrative (SG&A) expenses were $2,251 during the first six months of 2024, down 25% compared with SG&A expenses of $3,016 in the first six months of 2023. Decreased variable compensation accruals due to lower 2024 profitability as well as reduced commission and consulting expenses were the primary reasons for this decrease.

During the first half of 2024, the Company had net interest income of $170. This compares with interest income of $95 realized during the first half of 2023. The increase in interest income is primarily due to higher interest rates.

In the first six months of 2024 the Company had an operating loss of $1,575 compared with operating income $1,425 in the same period last year. The net loss for the first six months of 2024 totaled $1,097 versus operating income of $1,060 in the first six months of 2023.

CPS does not rely on raw materials from Ukraine, Russia, Israel or Gaza. As a result, we do not believe that the Russian invasion of Ukraine or the conflict in Israel and Gaza will have a direct impact on our results. Nevertheless, there could be an indirect impact regarding supply chain and inflationary issues as a result of these conflicts.

Inflation has had an impact on our costs. Thus far, we have been able to pass along these increases to our customers, but there is no guarantee that we will be able to continue this in the future. In addition, there is often a lag between when the costs increase and when we can adjust customer prices. Some of our larger customers will have pricing agreements, typically for one year, and we must wait for those agreements to end before making any pricing adjustments. ~~Wage~~Further, ~~increases~~several ~~are~~of ~~also~~our ~~part~~larger ofcustomers ~~the~~buy ~~inflation~~from ~~impact.~~our Wemajor ~~have~~competitor ~~instituted~~in aJapan. ~~combination~~The devaluation of ~~wage~~the ~~increases~~Japanese asyen ~~well~~related asto ~~richer~~the ~~benefits,~~US ~~such~~dollar ashas ~~the~~made ~~increased~~it ~~401k~~more ~~match~~difficult ~~mentioned~~for ~~above,~~us to increase our prices in ~~order~~an toamount ~~retain~~necessary ~~the~~to ~~folks~~fully ~~making~~make up ~~our~~for ~~workforce~~higher costs.

These factors combine to create a higher degree of uncertainty regarding future financial performance.

Liquidity and Capital Resources (all $ in 000’s unless noted)

The Company’s liquid assets at June 29, 2024 consist of cash and cash equivalents atof ~~March 30~~$6,306 ~~2024~~and ~~totaled~~marketable debt securities with a fair value of $~~8,668~~759. This compares to cash and cash equivalents at December 30, 2023 of $8,814. ~~The~~and ~~Company~~no ~~has~~marketable ~~invested~~debt securities held at December 30, 2023. The decrease in ~~new~~cash ~~equipment~~was due primarily to ~~enable~~a usdecrease toin beworking ~~more~~capital, ~~cost~~higher ~~effective~~expenditures asfor ~~well~~capital asequipment ~~improving~~acquired ~~our~~to ~~quality~~improve ~~department’s~~future ~~ability~~performance toas ~~ensure~~well weas ~~are~~the ~~shipping~~operating ~~better~~losses ~~product,~~incurred ~~going~~in ~~forward~~2024.

Accounts receivable at ~~March~~June 3029, 2024 totaled $34,~~876~~263 compared with $4,472 at December 30, 2023. Days Sales Outstanding (DSO) ~~decreased~~increased from 60 days at the end of 2023 to 5977 days at the end of Q1Q2 2024. The increase in DSO was due to several large payments due at the end of Q2 2024 being delayed to the beginning of Q3 2024, as well as significantly higher sales volumes at the end of Q2 2024 as compared to the beginning of Q2 2024. The accounts receivable balances at December 30, 2023, and ~~March~~June 3029, 2024 were both net of an allowance for doubtful accounts of $10.

Inventories totaled $4,~~611~~122 at ~~March~~June 3029, 2024 compared with inventory totaling $4,582 at December 30, 2023. The inventory turnover in the most recent four quarters ending Q1Q2 2024 was 4.46 times (based on a 5 quarter end average) compared with 4.3 times averaged during the four quarters of 2023.

The Company expects it will continue to be able to fund its operations for the remainder of 2024 from operations and existing cash balances.

The Company continues to sell to a limited number of customers and the loss of any one of these customers could cause the Company to require additional external financing. Failure to generate sufficient revenues, raise additional capital or reduce certain discretionary spending could have a material adverse effect on the Company’s ability to achieve its business objectives.

Management believes that existing cash balances will be sufficient to fund our cash requirements for the foreseeable future. However, there is no assurance that we will be able to generate sufficient revenues or reduce certain discretionary spending in the event that planned operational goals are not met such that we will be able to meet our obligations as they become due.

Contractual Obligations (all $ in 000’s unless otherwise noted)

In May 2023, the Company terminated its $3.0 million revolving line of credit (LOC) with Massachusetts Business Development Corporation (BDC). A new LOC in the amount of $3.0 million was entered into with Rockland Trust Company. The LOC is secured by the accounts receivable and other assets of the Company and has an interest rate of the National Prime Rate as published by the Wall Street Journal. On ~~March~~June 3029, 2024, the Company had $0 of borrowings under this LOC and its borrowing base at the time would have permitted an additional $3.0 million to have been borrowed. ~~The LOC remains in effect until terminated per mutual agreement by both parties.~~

In March 2020, the ~~Company~~company acquired a scanning acoustic microscope for a price of $208 thousand. The full amount was financed through a 5 year note payable with a financing company. The note is collateralized by the microscope and is being paid in monthly installments of $4 thousand, consisting of principal plus interest at a ~~fixed~~ rate of 6.47%

The Company has one real estate lease expiring in February 2026. 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. (Note 4, Leases)

ITEM 3

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

The Company is not significantly exposed to the direct impact of interest rate changes or foreign currency fluctuations. Nevertheless, one of the Company’s major competitors is located in Japan. The relative strength of the US dollar versus the Japanese yen can have a negative impact on the Company’s ability to raise prices when necessary to offset increasing costs. The Company has not used derivative financial instruments.

Although CPS has not been directly impacted by the war in Ukraine ~~or by the war between Israel and Gaza~~, potential supply chain disruptions and its impact on energy costs are areas where we could be impacted in the future.

Inflation is an area where we have seen some impact on our business. We have seen significant price increases in commodity raw materials, such as aluminum, as well as increases in other costs of doing business. As we receive new orders we have been able to pass on most of these costs to our customers. In the case of longer term pricing agreements, we have been able to pass on some of these costs through surcharges and in other ways to mitigate the impact on our profit. As inflation continues, our ability to continue to absorb higher costs by raising customer prices cannot be guaranteed.

ITEM 4

CONTROLS AND PROCEDURES

(a) The Company’s Chief Executive Officer and Chief Financial Officer have evaluated the effectiveness of the Company’s disclosure controls and procedures (as such term is defined in Rules 13a-14(c) and 15d - 14(c) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) as of the end of the period covered by this Form 10-Q (the “Evaluation Date”). Based on such evaluation, such officers have concluded that, as of the Evaluation Date, 1) the Company’s disclosure controls and procedures are effective to ensure that information required to be disclosed by the Company in reports the Company files under the Securities Exchange Act is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the SEC and 2) the Company’s disclosure controls and procedures are effective to ensure that information required to be disclosed in the reports that the Company files or submits under the Exchange Act is accumulated and communicated to our management, including our chief executive officer and chief financial officer, to allow timely decisions regarding required disclosure.

(b) Changes in Internal Controls. There has been no change in our internal control over financial reporting that occurred during our most recent fiscal quarter that has materially affected or is reasonably likely to materially affect our internal control over financial reporting.

PART II OTHER INFORMATION

ITEM 1

LEGAL PROCEEDINGS

~~We are not a party to any litigation which could have a material adverse effect on us or on our business~~None. The ~~Company~~potential ~~has~~claim ~~received~~mentioned a letter from the attorney of a former European outside sales representative stating that under European law the representative is entitled to compensation as a result of his termination. The Company completely disagrees with the claims. Should this result in ~~litigation~~form ~~the~~10-Q ~~Company~~dated ~~will~~March ~~defend~~30, ~~itself~~2024 tohas ~~the~~been ~~fullest~~fully ~~extent of the law and estimates any losses incurred to be immaterial~~resolved.

ITEM 1A

RISK FACTORS

There have been no material changes to the risk factors as discussed in our 2023 Form 10-K.

ITEM 2

UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.

None.

ITEM 3

DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4

MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5

OTHER INFORMATION

Not applicable.

ITEM 6 EXHIBITS ~~AND REPORTS ON FORM 8-K~~:

(a)

Exhibits:

Exhibit 31.1 Certification Of President and Chief Executive Officer Pursuant To 18 U.S.C. Section 1350, As Adopted Pursuant To Section 302 Of The Sarbanes-Oxley Act Of 2002

Exhibit 31.2 Certification Of Chief Financial Officer Pursuant To 18 U.S.C. Section 1350, As Adopted Pursuant To Section 302 Of The Sarbanes-Oxley Act Of 2002

Exhibit 32.1 Certification Pursuant To 18 U.S.C. Section 1350, As Adopted Pursuant To Section 906 Of The Sarbanes-Oxley Act Of 2002

101.INS Inline XBRL Instance Document

101.SCH Inline XBRL Taxonomy Extension Schema Document

101.CAL Inline XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF Inline XBRL Taxonomy Extension Definition Linkbase Document

101.LAB Inline XBRL Taxonomy Extension Label Linkbase Document

101.PRE Inline XBRL Taxonomy Extension Presentation Linkbase Document

104 Cover Page Interactive Data File (embedded within the Inline XBRL and contained in Exhibit 101)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

CPS TECHNOLOGIES CORPORATION

(Registrant)

Date: ~~May~~August 72, 2024

/s/Brian T. Mackey

Brian T. Mackey

President and Chief Executive Officer

Date: ~~May~~August 72, 2024

/s/ Charles K. Griffith Jr.

Charles K. Griffith Jr.

Chief Financial Officer

Filing Compare · CPS TECHNOLOGIES CORP/DE/