CPS TECHNOLOGIES CORP/DE/ 10-Q/A

ITEM 3 QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK   The Company is not significantly exposed to the impact of interest rate changes or foreign currency fluctuations. The Company has not used derivative financial instruments.   The COVID-19 pandemic presents several risks for the Company. The Company is part of the Defense Industrial Base and thus has remained open and operating throughout the pandemic. The primary risks resulting from the pandemic are potential declines in customer demand and increased operating costs resulting from pandemic-related factors such as increased freight costs and increased employee absenteeism causing labor inefficiencies and increased use of overtime.   The COVID-19 pandemic has affected financial results for the quarter ended June 26, 2021. One of our major customers uses a significant portion of our product in the manufacture of products used in high-speed rail trains. As a result of decreased ridership due to the pandemic, demand from their customers has declined. This has resulted in this customer reducing Q2 purchases. The Company believes the worst is behind us, but COVID-19 variants, lack of vaccinations on a world-wide scale and other factors could continue to negatively affect our financial results moving forward.