What changed in this filing

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Item 1. Financial Statements

2024-11-01 compared with 2024-08-02 · 113 added, 120 removed, 294 unchanged (44% of the section changed)

2 unchanged sentences

Balance Sheets (Unaudited)

September 28,

Current assets:

18 unchanged sentences

Balance Sheets (Unaudited)

September 28,

LIABILITIES AND STOCKHOLDERS` EQUITY

1 unchanged sentence

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

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 7)

2 unchanged sentences

issued 14,661,487 shares;

outstanding 14,519,215 shares at each June 29, 2024 and December 30, 2023

146,015 146,015

outstanding 14,525,960 shares at September 28, 2024 and issued 14,601,487 shares;

outstanding 14,519,215 shares at December 30, 2023

Preferred stock, no shares issued or outstanding

Additional paid-in capital

40,386,335 40,180,893

Accumulated other comprehensive income

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 )

Less cost of 135,527 common shares repurchased at September 28, 2024 and 82,272 common shares repurchased at December 30, 2023

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.

2 unchanged sentences

Three Months Ended

Six Months Ended

Nine Months Ended

September 28,

September 30,

September 28,

September 30,

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

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

Gross profit (loss)

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

Other income (expense), net

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)

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.

1 unchanged sentence

STATEMENTS OF STOCKHOLDERS’ EQUITY (UNAUDITED)

FOR THE THREE AND SIX MONTHS ENDED JUNE 29, 2024 AND JULY 1, 2023

other comprehensive

FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 28, 2024 AND SEPTEMBER 30, 2023

comprehensive

stockholders’

Balance at March 30, 2024

Balance at June 29, 2024

Share-based compensation expense

Employee option exercises

Other comprehensive income

Balance at June 29, 2024

other comprehensive

Balance at September 28, 2024

comprehensive

stockholders’

1 unchanged sentence

Share-based compensation expense

Employee option exercises

Other comprehensive income

Balance at June 29, 2024

stockholders'

Balance at September 28, 2024

shares issued

Balance at April 1, 2023

stockholders'

Balance at July 1, 2023

Share-based compensation expense

Employee option exercises

Balance at July 1, 2023

stockholders'

Balance at September 30, 2023

shares issued

stockholders'

Balance at December 31, 2022

1 unchanged sentence

Employee options exercised

Balance at July 1, 2023

Balance at September 30, 2023

See accompanying notes to financial statements.

1 unchanged sentence

Statements of Cash Flows (Unaudited)

Six Months Ended

Nine Months Ended

September 28,

September 30,

Cash flows from operating activities:

3 unchanged sentences

Share-based compensation

Deferred taxes

Accounts receivable-trade

3 unchanged sentences

Accrued expenses

Deferred taxes

Deferred revenue

10 unchanged sentences

Cash and cash equivalents at beginning of period

Cash, cash equivalents and restricted cash at end of period

Restricted cash at end of period

Cash and cash equivalents at end of period

Supplemental disclosures of cash flows information:

Cash paid for income taxes

Cash paid for interest

Supplemental disclosures of non-cash activity:

Net exercise of stock options

Share repurchases as a reduction of stock option exercise proceeds

See accompanying notes to financial statements.

17 unchanged sentences

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

(3) Cash, Cash Equivalents and Restricted Cash

Our cash and cash equivalents are carried at fair value and consist primarily of cash, money market funds, cash deposits with commercial banks, U.S.

government bonds and notes, and highly rated direct short-term instruments with an original maturity of 90 days or less.

The Company has a restricted cash account in the amount of $ 84,715 , as of September 28, 2024 to cover an open letter of credit for overseas purchases.

Upon presentation of documents evidencing shipment of these goods, the issuing bank will draw on this account and make payment to the vendor.

There was no restricted cash as of December 30, 2023.

September 28, 2024

December 30, 2023

Cash and cash equivalents

Restricted cash 1

Total cash, cash equivalents and restricted cash

Recognized in prepaid expenses and other current assets on our Balance Sheet.

(4) Marketable Securities

1 unchanged sentence

Treasury Bills with maturities up to one year.

Since it is not management’s intention to hold these debt securities until the maturity dates, these have been classified as available-for-sale (“AFS”) and are recorded on the balance sheet at fair value, with changes in fair value recorded as a component of other comprehensive income.

Since it is not currently managements intention to hold these debt securities until the maturity dates, these have been classified as available-for-sale (“AFS”) and are recorded on the balance sheet at fair value, with changes in fair value recorded as a component of other comprehensive income.

(5) Fair value of Marketable Securities

6 unchanged sentences

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 .

The fair value of these bonds as of September 28, 2024 was $ 1,020,952 .

CPS held no investments in marketable securities as of December 30, 2023.

June 29, 2024

September 28, 2024

December 30, 2023

8 unchanged sentences

Three Months Ended

Six Months Ended

Nine Months Ended

September 28,

September 30,

September 28,

September 30,

Basic EPS Computation:

Net income (loss)

$ ( 954,304 ) $ 600,503 $ ( 1,097,458 ) $ 1,059,704

Weighted average

Common shares

14,519,215 14,493,970 14,519,215 14,473,128

$ ( 0.07 ) $ 0.04 $ ( 0.08 ) $ 0.07

Diluted EPS Computation:

Net income (loss)

$ ( 954,304 ) $ 600,503 $ ( 1,097,458 ) $ 1,059,704

Weighted average

Common shares

14,519,215 14,493,970 14,519,215 14,473,128

Dilutive effect of stock options

- 127,959 - 157,637

14,519,215 14,621,929 14,519,215 14,630,765

$ ( 0.07 ) $ 0.04 $ ( 0.08 ) $ 0.07

(7) Commitments & Contingencies

10 unchanged sentences

Annual rental payments range from $ 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 lease as of June 29, 2024:

The following table presents information about the amount, timing and uncertainty of cash flows arising from the Company’s capitalized operating lease as of September 28, 2024:

(Dollars in Thousands)

June 29, 2024

Maturity of capitalized lease liabilities

11 unchanged sentences

Operating Lease Costs and Cash Flows

Operating lease cost and cash paid was $ 41 thousand during the second quarter of 2024 and $ 82 thousand for the six months ended June 29, 2024.

Operating lease cost and cash paid was $ 41 thousand during the third quarter of 2024 and $ 123 thousand for the nine months ended September 28, 2024.

These costs are related to its long-term operating lease.

8 unchanged sentences

The company uses the Black-Scholes option pricing model to determine the fair value of the stock options granted.

During the quarter ended June 29, 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 June 29, 2024 .

During the quarter ended July 1, 2023, a total of 60,000 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 July 1, 2023, issued at a weighted average price of $ 2.66 per share.

During the three and six months ended June 29, 2024, there were no options exercised and corresponding shares issued.

During the three and six months ended July 1, 2023, there were 79,000 and 86,001 options exercised and corresponding shares issued at a weighted average price of $ 1.20 and $ 1.22 , respectively.

During the three and six months ended June 29, 2024, the Company did not repurchase any shares for employees to facilitate their exercise of stock options.

During the three and six months ended July 1, 2023, the Company repurchased 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 term of 6.81 years as of June 29, 2024, and there were 610,000 options exercisable at a weighted average price of $ 2.45 with a weighted average remaining term of 5.09 years as of June 29, 2024.

During the quarter ended September 28, 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 September 28, 2024 .

During the quarter ended September 30, 2023, a total of 229,500 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 September 30, 2023 .

During the three and nine months ended September 28, 2024, there were 60,000 options exercised and corresponding shares issued at a weighted average price of $ 1.50 .

During the three and nine months ended September 28, 2024, 53,100 and 69,200 options were forfeited, respectively, and none expired.

During the three and nine months ended September 30, 2023, there were 55,000 and 141,001 options exercised and corresponding shares issued at a weighted average price of $ 2.65 and $ 1.78 , respectively.

During the three and nine months ended September 30, 2023, 27,400 and 233,000 options were forfeited and none and 25,000 expired, respectively.

During the three and nine months ended September 28, 2024, the Company repurchased 53,255 shares for employees to facilitate their exercise of stock options.

During the three and nine months ended September 30, 2023, the Company repurchased 47,329 and 72,256 shares, respectively, for employees to facilitate their exercise of stock options.

There were also 984,800 options outstanding at a weighted average price of $ 2.68 with a weighted average remaining term of 6.73 years as of September 28, 2024, and there were 543,800 options exercisable at a weighted average price of $ 2.58 with a weighted average remaining term of 5.13 years as of September 28, 2024.

The Plan, as amended, is authorized to issue 1,500,000 shares of common stock.

As of June 29, 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 June 29, 2024, there was $ 648 thousand of total unrecognized compensation cost related to non-vested share-based compensation arrangements granted under the Plan;

As of September 28, 2024, there were 626,400 shares available for future grants under the 2020 Plan and 248,400 shares outstanding under the 2009 Plan.

As of September 28, 2024, there was $ 604 thousand of total unrecognized compensation cost related to nonvested share-based compensation arrangements granted under the Plan;

that cost is expected to be recognized over a weighted average period of 3.15 years.

During the three and six months ended June 29, 2024, the Company recognized $ 44,480 and $ 205,442 , respectively, as shared-based compensation expense related to previously granted shares under the Plan.

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.

During the three and nine months ended September 28, 2024, the Company recognized $ 44,480 and $ 249,922 , respectively, as shared-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 30, 2023, the Company recognized $ 27,941 and $ 175,698 , respectively, as shared-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.

( 9 ) Inventories

Inventories consist of the following:

September 28,

Raw materials

$ 2,567,758 $ 2,861,333

Work in process

1,579,991 1,493,582

Finished goods

393,889 537,975

Total inventory

4,541,638 4,892,890

Reserve for obsolescence

( 419,960 ) ( 310,960 )

Inventories, net

$ 4,121,678 $ 4,581,930

( 10 ) Accrued Expenses

Accrued expenses consist of the following:

September 28,

Accrued legal and accounting

$ 67,846 $ 86,000

Accrued payroll and related expenses

246,953 649,201

Accrued product returns

Accrued other

69,054 51,936

$ 671,853 $ 1,075,137

( 11 ) Line of Credit

1 unchanged sentence

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 June 29, 2024) .

On June 29, 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 line of credit remains in effect until terminated by mutual agreement of both parties.

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 ( 8.0 % at September 28, 2024) .

On September 28, 2024, the Company had $ 0 of borrowings under this LOC and its borrowing base at the time, consisting of eligible accounts receivable, would have permitted an additional $ 2.9 million to have been borrowed.

The line of credit remains in effect and has been extended to August 5, 2025.

( 12 ) Note Payable

4 unchanged sentences

Remaining in:

Payments due by period

Payments due by

Total interest expense on notes payable during 2024 was $ 1,917 .

2 unchanged sentences

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

For the three and six months ended June 29, 2024 the deferred tax asset was increased $ 40,256 and $ 307,576 for the estimated tax benefit on Q2 and year to date net losses, respectively

For the three and nine months ended September 28, 2024 the deferred tax asset was increased $ 372,683 and $ 680,259 for the estimated tax benefit on Q3 and year to date net losses, respectively.

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

3 unchanged sentences

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.

This includes the impact of the Russian invasion of Ukraine, the ongoing conflict in Gaza and Lebanon and other conflicts and potential conflicts throughout the world.

It also includes 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 Estimates

The critical accounting 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”.

Critical Accounting Policies

The critical accounting policies 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.

22 unchanged sentences

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 Second Fiscal Quarter of 2024 (Q2 2024) Compared to the Second Fiscal Quarter of 2023 (Q2 2023);

In March 2007, we changed our name from Ceramics Process Systems Corporation to CPS Technologies Corp.

Results of Operations for the Third Fiscal Quarter of 2024 (Q3 2024) Compared to the Third Fiscal Quarter of 2023 (Q3 2023);

(all $ in 000 ’ s)

4 unchanged sentences

This compares with gross profit in Q3 2023 of $1,236 or 20% of sales.

This percentage decrease was due to several factors including the impact of fixed costs on significantly lower revenues, as well as abnormally low production yield levels in some of our hermetic package products.

Selling, general and administrative (SG&A) expenses totaled $1,085 in Q2 2024 compared with SG&A expenses of $1,465 in Q2 2023.

This percentage decrease was mainly due to the impact of fixed costs on significantly lower revenues.

In addition, CPS opened a third shift effective the last week of August.

During Q3 those folks were added to payroll and came in during the first shift to work alongside our experienced operators for training, which added to the overall cost of goods sold for the quarter.

Selling, general and administrative (SG&A) expenses totaled $963 in Q3 2024 compared with SG&A expenses of $1,105 in Q3 2023, a 13% reduction year over year.

This decrease was primarily due to the reduction in variable compensation as a result of weaker results from operations in Q3 2024 as compared to Q3 2023.

In addition, the Company was able to reduce its outside consulting costs.

The Company experienced an operating loss of $1,315 in Q2 2024 compared with an operating profit of $731 in Q2 2023, a decrease of 280%.

In addition, new hires in 2023 resulted in increased payroll taxes and some overlap in the same position (duplicate salaries) in Q3 2023.

The Company experienced an operating loss of $1,486 in Q3 2024 compared with an operating profit of $131 in Q3 2023.

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.

The net loss for Q3 2024 was $1,043 compared to a net profit in Q3 2023 of $171.

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

Total revenue was $15,190 in the first nine months of 2024, a 27% decrease compared with total revenue of $20,803 in the first nine months 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.

In addition, one of the Company’s major customers in 2023 significantly reduced their purchases during 2024 due to their having excess inventory that they are in the process of working down.

Gross margin in the first nine months of 2024 totaled $153 or 2% of sales.

In the first nine months of 2023 gross margin totaled $5,677 or 27% 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 training incurred during Q3 for the addition of the third shift.

Selling, general and administrative (SG&A) expenses were $3,215 during the first nine months of 2024, down 22% compared with SG&A expenses of $4,121 in the first nine months of 2023.

Decreased variable compensation accruals due to lower 2024 profitability as well as a further reduction in selling and administrative payroll expense.

During the first nine months of 2024, the Company had net interest income of $242.

This compares with interest income of $176 realized during the first nine months 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.

In the first nine months of 2024 the Company had an operating loss of $3,062 compared with operating income $1,556 in the same period last year.

The net loss for the first nine months of 2024 totaled $2,140 versus net income of $1,231 in the first nine months of 2023.

CPS does not rely on raw materials from Ukraine, Russia, Israel, Lebanon or Gaza.

As a result, we do not believe that the Russian invasion of Ukraine or the conflict surrounding Israel 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.

7 unchanged sentences

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 of $6,306 and marketable debt securities with a fair value of $759.

This compares to cash and cash equivalents at December 30, 2023 of $8,814 and no marketable debt securities held at December 30, 2023.

The Company’s liquid assets at September 28, 2024 consist of cash and cash equivalents of $4,689, restricted cash of $85 and marketable debt securities with a fair value of $1,021.

This compares to cash and cash equivalents at December 30, 2023 of $8,814 and no restricted cash or marketable debt securities held at December 30, 2023.

The decrease in cash was due primarily to a decrease in working capital, higher expenditures for capital equipment acquired to improve future performance as well as the operating losses incurred in 2024.

Accounts receivable at June 29, 2024 totaled $4,263 compared with $4,472 at December 30, 2023.

Days Sales Outstanding (DSO) increased from 60 days at the end of 2023 to 77 days at the end of Q2 2024.

Accounts receivable at September 28, 2024 totaled $4,017 compared with $4,472 at December 30, 2023.

Days Sales Outstanding (DSO) increased from 60 days at the end of 2023 to 78 days (calculated based on trade receivables only) at the end of Q3 2024.

The increase in DSO was due to several large payments due at the end of Q3 2024 being delayed to the beginning of Q4 2024, as well as significantly higher sales volumes at the end of Q3 2024 as compared to the beginning of Q3 2024.

The accounts receivable balances at December 30, 2023, and June 29, 2024 were both net of an allowance for doubtful accounts of $10.

Inventories totaled $4,122 at June 29, 2024 compared with inventory totaling $4,582 at December 30, 2023.

The accounts receivable balances at December 30, 2023, and September 28, 2024 were both net of an allowance for doubtful accounts of $10.

Inventories totaled $4,433 at September 28, 2024 compared with inventory totaling $4,582 at December 30, 2023.

The inventory turnover in the most recent four quarters ending Q3 2024 was 4.6 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 expects it will continue to be able to fund its operations for the remainder of 2024 and 2025 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.

6 unchanged sentences

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 June 29, 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.

On September 28, 2024, the Company had $0 of borrowings under this LOC and its borrowing base at the time would have permitted an additional $2.9 million to have been borrowed.

In March 2020, the company acquired a scanning acoustic microscope for a price of $208 thousand.

6 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements