Cover
Cover - USD ($) | 12 Months Ended | |
Dec. 28, 2019 | Mar. 06, 2020 | |
Cover [Abstract] | ||
Document Type | 10-K | |
Amendment Flag | false | |
Document Period End Date | Dec. 28, 2019 | |
Document Fiscal Period Focus | FY | |
Document Fiscal Year Focus | 2019 | |
Current Fiscal Year End Date | --12-28 | |
Entity File Number | 0-16088 | |
Entity Registrant Name | CPS TECHNOLOGIES CORP/DE/ | |
Entity Central Index Key | 0000814676 | |
Entity Incorporation, State or Country Code | DE | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
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 Public Float | $ 8,067,514 | |
Entity Common Stock, Shares Outstanding | 13,207,436 |
Balance Sheets
Balance Sheets - USD ($) | 12 Months Ended | |
Dec. 28, 2019 | Dec. 29, 2018 | |
Current assets: | ||
Cash and cash equivalents | $ 133,965 | $ 628,804 |
Accounts receivable-trade, net | 4,086,945 | 3,053,091 |
Inventories | 3,099,824 | 3,192,933 |
Prepaid expenses and other current assets | 147,786 | 156,338 |
Total current assets | 7,468,520 | 7,031,166 |
Property and equipment: | ||
Production equipment | 9,649,169 | 9,550,043 |
Furniture and office equipment | 508,423 | 519,779 |
Leasehold improvements | 934,195 | 891,817 |
Total cost | 11,091,787 | 10,961,639 |
Accumulated depreciation and amortization | (10,110,663) | (9,722,767) |
Construction in progress | 255,754 | 34,314 |
Net property and equipment | 1,236,878 | 1,273,186 |
Right-of-use lease asset (note 4, leases) | 171,000 | |
Deferred taxes, net | 147,873 | 186,747 |
Total assets | 9,024,271 | 8,491,099 |
Current liabilities: | ||
Borrowings against line of credit | 1,249,588 | |
Accounts payable | 1,436,417 | 1,680,263 |
Accrued expenses | 815,166 | 975,315 |
Deferred revenue | 21,110 | |
Current portion lease liability | 148,000 | |
Total current liabilities | 3,670,281 | 2,655,578 |
Long term lease liability | 23,000 | |
Total liabilities | $ 3,693,281 | 2,655,578 |
Commitments & Contingencies | (4) Leases The Company has two real estate leases—one expiring in February 2021 and one with a 12 month duration with options to extend additional years. Since the latter is not reasonably certain that any options will be exercised, it has not been recorded on the balance sheet in accordance with the accounting policy elected in Note 2. CPS also has a few other leases for equipment which are minor in nature and are generally short-term in duration. None of these have been capitalized. The lease expiring in 2021 (the “Norton facility lease’) is included as a right-of-use lease asset and corresponding lease liability on the balance sheet. This asset and liability was recognized on December 30, 2018 based on the present value of remaining lease payments over the remaining lease term using the Company’s incremental borrowing rate at date of adoption. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. The Norton facility lease comprises approximately 38 thousand square feet. The lease is a 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 buy the property and a first right of refusal during the term of the lease. Annual rental payments are $152 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 as of December 28, 2019 (Dollars in Thousands) December 28, 2019 Maturity of capitalized lease liabilities Lease payments 2020 152 2021 26 Total undiscounted operating lease payments $ 178 Less: Imputed interest (7) Present value of operating lease liability $ 171 Balance Sheet Classification Current lease liability $ 148 Long-term lease liability 23 Total operating lease liability $ 171 Other Information Weighted-average remaining lease term for capitalized operating leases 14 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 $152 thousand during 2019 and is included in operating cash flows. Operating Lease Costs Operating lease cost was $152 thousand during 2019. This cost is related to its long-term operating lease. All other short-term leases were immaterial. Finance Leases The company does not have any finance leases. | |
Stockholders’ Equity: | ||
Common stock, $0.01 par value, authorized 20,000,000 shares; issued 13,427,492 and 13,425,992 shares; outstanding 13,207,436 and 13,205,936; at December 28, 2019 and December 29, 2018, respectively | $ 134,275 | 134,260 |
Additional paid-in capital | 36,094,201 | 35,960,545 |
Accumulated deficit | (30,380,433) | (29,742,231) |
Less cost of 220,056 common shares repurchased at December 28, 2019 and December 29, 2018 | (517,053) | (517,053) |
Total stockholders’ equity | 5,365,990 | 5,835,521 |
Total liabilities and stockholders’ equity | $ 9,024,271 | $ 8,491,099 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - $ / shares | Dec. 28, 2019 | Dec. 29, 2018 |
Statement of Financial Position [Abstract] | ||
Common stock, authorized shares | 20,000,000 | 20,000,000 |
Common stock, issued shares | 13,427,492 | 13,425,992 |
Common stock, outstanding shares | 13,207,436 | 13,205,936 |
Common stock, par value | $ .01 | $ .01 |
Statements of Operations
Statements of Operations - USD ($) | 12 Months Ended | |
Dec. 28, 2019 | Dec. 29, 2018 | |
Income Statement [Abstract] | ||
Product sales | $ 21,468,414 | $ 21,580,904 |
Cost of product sales | 18,928,173 | 18,668,052 |
Gross margin | 2,540,241 | 2,912,852 |
Selling, general, and administrative expenses | 3,137,440 | 3,813,415 |
Income (loss) from operations | (597,199) | (900,563) |
Other income (expense) | (35,547) | (20,985) |
Income (loss) before income tax | (632,746) | (921,548) |
Income tax provision (benefit) | 5,456 | 2,784,419 |
Net income (loss) | $ (638,202) | $ (3,705,967) |
Net income (loss) per basic common share | $ (0.05) | $ (0.28) |
Weighted average number of basic common shares outstanding | 13,207,097 | 13,205,936 |
Net income (loss) per diluted common share | $ (0.05) | $ (0.28) |
Weighted average number of diluted common shares outstanding | 13,207,097 | 13,205,396 |
Statements of Cash Flows
Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 28, 2019 | Dec. 29, 2018 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (638,202) | $ (3,705,967) |
Adjustments to reconcile net income (loss) to cash provided (used) by operating activities: | ||
Share-based compensation | 133,671 | 220,654 |
Depreciation and amortization | 525,783 | 568,164 |
Deferred taxes | 38,874 | 2,851,919 |
Gain on sale of property and equipment | (6,946) | (13,645) |
Changes in operating assets and liabilities: | ||
Accounts receivable – trade | (1,033,854) | (109,718) |
Inventories | 93,109 | (1,083,420) |
Prepaid expenses and other current assets | 8,552 | (55,252) |
Accounts payable | (243,846) | 733,878 |
Accrued expenses | (160,149) | 319,826 |
Deferred revenue | 21,110 | (100,000) |
Net cash provided (used) by operating activities | (1,261,898) | (373,561) |
Cash flows from investing activities: | ||
Purchases of property and equipment | (489,475) | (350,852) |
Proceeds from sale of property and equipment | 6,946 | 13,645 |
Net cash used by investing activities | (482,529) | (337,207) |
Cash flows from financing activities: | ||
Net borrowings on lines of credit | 1,249,588 | |
Net cash provided by financing activities | 1,249,588 | |
Net increase (decrease) in cash and cash equivalents | (494,839) | (710,768) |
Cash and cash equivalents at beginning of year | 628,804 | 1,339,572 |
Cash and cash equivalents at end of year | 133,965 | 628,804 |
Supplemental cash flow information: | ||
Income taxes paid (refunded), net | (67,311) | 436 |
Interest paid | $ 44,113 | $ 34,791 |
Shareholders Equity
Shareholders Equity - USD ($) | Common Stock | Additional Paid-In Capital | Retained Earnings / Accumulated Deficit | Comprehensive Income / Loss | Total |
Beginning balance, stockholders equity at Dec. 31, 2016 | $ 10,751,305 | ||||
Beginning balance, shares at Dec. 31, 2016 | 13,423,492 | 13,423,492 | |||
Beginning balance, par value of shares issued at Dec. 31, 2016 | $ 134,235 | $ 134,235 | |||
Share-based compensation expense | $ 287,231 | ||||
Net income(loss) | $ 1,717,702 | $ (1,717,702) | |||
Ending Ending balance, shares at Dec. 30, 2017 | 13,423,492 | 13,423,492 | |||
Ending balance, par value shares issued at Dec. 30, 2017 | $ 134,235 | $ 134,235 | |||
Share-based compensation expense | 217,430 | ||||
Issuance of common stock pursuant to exercise of stock options | 3,200 | ||||
Issuance of common stock pursuant to exercise of stock options, number of shares issued | 2,500 | ||||
Issuance of common stock pursuant to exercise of stock options, par value | $ 25 | ||||
Net income(loss) | 3,705,967 | (3,705,967) | |||
Ending balance, stockholders equity at Dec. 29, 2018 | $ 5,835,521 | ||||
Ending Ending balance, shares at Dec. 29, 2018 | 134,260 | 13,425,992 | |||
Share-based compensation expense | 131,421 | ||||
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) | $ 638,202 | $ (638,202) | |||
Ending balance, stockholders equity at Dec. 28, 2019 | $ 5,365,990 | ||||
Ending Ending balance, shares at Dec. 28, 2019 | 13,427,492 | ||||
Ending balance, par value shares issued at Dec. 28, 2019 | $ 134,275 |
(1) Nature of Business
(1) Nature of Business | 12 Months Ended |
Dec. 28, 2019 | |
Accounting Policies [Abstract] | |
(1) Nature of Business | (1) Nature of Business CPS Technologies Corporation (the ‘Company’ or ‘CPS’) provides advanced material solutions to the transportation, automotive, energy, computing/internet, telecommunications, aerospace, defense and oil and gas end markets. Our primary material solution is metal matrix composites. We design, manufacture and sell custom metal matrix composite components which improve the performance and reliability of systems in these end markets. |
(2) Summary of Significant Acco
(2) Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 28, 2019 | |
Accounting Policies [Abstract] | |
(2) Summary of Significant Accounting Policies | (2) Summary of Significant Accounting Policies (2)(a) Cash and Cash Equivalents The Company considers all highly liquid investments with a maturity of three months or less at the date of purchase to be cash equivalents. (2)(b) Accounts Receivable The Company reports its accounts receivable at the invoiced amount less an allowance for doubtful accounts. The Company’s management provides appropriate provisions for uncollectible accounts based upon factors surrounding the credit risk and activity of specific customers, historical trends, economic conditions and other information. Adjustments to the allowance are charged to operations in the period in which information becomes available that may affect the allowance. (2)(c) Inventories Inventories are stated at the lower of cost, as determined under the first-in, first-out method (FIFO), or net realizable value. A reserve for obsolete inventories is based on factors regarding the sales and usage of such inventories, including inventories manufactured for specific customers. The Company’s general obsolescence policy is to write off obsolete inventory when there has been no activity on a particular part for a twelve month period and there are no pending customer orders. (2)(d) Property and Equipment Property and equipment are stated at cost. Depreciation of equipment is calculated on a straight-line basis over the estimated useful life, generally five years for production equipment and three to five years for furniture and office equipment. Leasehold improvements are depreciated over the shorter of the lease term or their useful life. Maintenance and repairs are charged to expense as incurred. Upon retirement or sale, the cost and related accumulated depreciation or amortization are removed from their respective accounts. Any gains or losses on the disposition of property and equipment are included in the results of operations in the period in which they occur. (2)(e) Impairment of Long-Lived Assets The Company reviews long-lived assets for impairment whenever circumstances and situations change such that there is an indication that the carrying amounts may not be recovered. Recoverability is assessed based on estimated undiscounted future cash flows. As of December 28, 2019 and December 29, 2018, the Company believes that there has been no impairment of its long-lived assets. (2)(f) Revenue Recognition The Company adopted Accounting Standards Codification (ASC) 606, “Revenue from Contracts with Customers” in fiscal 2018. The adoption of FASB ASC Topic 606 did not have a material impact on the Company’s financial statements and no cumulative adjustment was required. Identifying the Contract with the Customer The Company identifies contracts with customers as agreements that create enforceable rights and obligations. In the case of a few large customers the Company has executed long-term Master Sales Agreements (“MSA”). These are umbrella agreements which typically define the terms and conditions under which a customer can order goods from CPS. These in themselves do not constitute a contract as no products are committed to be transferred and the customer has no obligation to make payments. The Company contract is only enforceable once both parties have approved it, and is usually in the form of a written purchase order from a customer combined with acknowledgement from the Company. In cases without an MSA, the customer submits a blueprint for a product, the Company provides a quote and the customer responds with a purchase order. In these cases the Company’s acceptance of the purchase order constitutes an enforceable contract. Identifying the Performance Obligations in the Contract For each contract, the Company considers the promise to transfer products, each of which are distinct, to be the identified performance obligations. Shipping and handling activities for which the Company is responsible are not a separate promised service but instead are activities to fulfill the entity’s promise to transfer goods. Shipping and handling fees will be recognized at the same time as the related performance obligations are satisfied. The Company provides an assurance-type warranty. This guarantees that the product functions as promised and meets specifications. Under its terms and conditions the Company offers a 30 day warranty and replaces defective or non-conforming products. The expense of replacement is recorded at the time the Company agrees to replace a defective or non-conforming product. This assurance type warranty is not considered to be a distinct performance obligation. Determining the Transaction Price The Company determines the transaction price as the amount of consideration specified in the contract that it expects to receive in exchange for transferring promised goods to the customer. Amounts collected from customers for sales value added and other taxes are excluded from the transaction prices. Product sales are recorded net of trade discounts and sales returns. If a contract includes a variable amount, such as a rebate, then the Company estimates the transaction price using either the expected value or the most likely amount of consideration to be received, depending upon the specific facts and circumstances. The Company includes estimated variable consideration in the transaction price only to the extent it is probable that a significant reversal of revenue will not occur when the uncertainty is resolved. The Company updates its estimate of variable consideration at the end of each reporting period to reflect changes in facts and circumstances. As of December 28, 2019 there are no contracts with variable consideration. When credit is granted to customers, payment is typically due 30 to 90 days from billing and accordingly our contracts with customers do not include a significant financing component. Allocating the Transaction Price to the Performance Obligations In virtually all cases the transaction price is tied to a specific product in the contract obviating the need for any allocation. Recognizing Revenue When (or as) the Performance Obligations are Satisfied The Company recognizes revenue at the point in time when it transfers control of the promised goods or services to the customer, which typically occurs once the product has shipped or has been delivered to the customer. Occasionally, for the purpose of ensuring a steady flow of product, the Company ships products on consignment. In these instances, delivery is deemed to have occurred when the customer pulls inventory out of the warehouse for use in their production, or upon a specified period of time as agreed upon by both parties. As of December 28, 2019 there are no products on consignment. The Company generally expenses sales commissions when incurred because the amortization period would have been one year or less. The costs are recorded within, selling, general and administrative expenses. The Company does not disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less (2)(g) Income Taxes The Company uses the liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are recorded for the expected future tax consequences of temporary differences between the financial reporting and income tax bases of assets and liabilities and are measured using the enacted tax rates and laws that are expected to be in affect when the differences reverse. A valuation allowance is established to reduce net deferred tax assets to the amount expected to be realized. The Company’s policy is to recognize interest and penalties related to income tax matters in income tax expense. As of December 28, 2019 and December 29, 2018, the Company has no accruals for interest or penalties related to income tax matters. The Company does not have any uncertain tax positions at December 28, 2019 or December 29, 2018 which required accrual or disclosure. (2)(h) Net Income (Loss) Per Common 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 option 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. (2)(i) Reclassification Certain amounts in prior year’s financial statements have been reclassified to conform to the current year’s presentation. (2)(j) Recent Accounting Pronouncements In the normal course of business, management evaluates all the new accounting pronouncements issued by the Financial Accounting Standard Board (“FASB”). Based upon this review, except as noted below, management does not expect any of the recently issued accounting pronouncements, which have not already been adopted, to have a material impact on the Company’s consolidated financial statements. New Accounting Pronouncements Pronouncements adopted in 2019 The Company adopted Accounting Standards Codification (ASC) 842 for leases effective at the beginning of the fiscal year, December 30, 2018, using the cumulative-effect adjustment transition method, which applies the provisions of the standard at the effective date without adjusting the comparative periods presented. The Company elected an accounting policy for short-term leases, which allows lessees to avoid recognizing right-of-use assets and liabilities for leases with terms of 12 months or fewer. We have lease agreements with lease and non-lease components, which are generally accounted for separately. We have not elected the practical expedient to account for lease and non-lease components as one lease component. The Company has elected certain practical expedients upon adoption and therefore has not reassessed whether any expired or existing contracts contain leases, has not reassessed the lease classification for any expired or existing leases and has not reassessed initial direct costs for any existing leases. Adoption of the standard resulted in the recognition of operating lease right-of-use assets and corresponding lease liabilities of $310 thousand on the balance sheet as of December 30, 2018. The standard did not materially impact operating results or liquidity. Disclosures related to the amount, timing and uncertainty of cash flows arising from leases are included in Note 4, Leases. (2)(k) Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the amounts of revenues and expenses recorded during the reporting period. Such estimates are adjusted by management periodically as a result of existing or anticipated economic changes which effect, or may effect, the Company’s financial statements. Actual results could differ from these estimates. (2)(l) Fiscal Year-End The Company’s fiscal year end is the last Saturday in December which could result in a 52 or 53 week year. Fiscal years 2019 and 2018 each consisted of 52 weeks. (2)(m) 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, 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 stock options granted. (2)(n) Segment Reporting The Company views its operations and manages its business as one segment. The Company produces and sells advanced material solutions, primarily metal matrix composites, to assemblers of high density electronics and other specialty components and subassemblies. The Company also assembles housings and packages for hybrid circuits, selling to the same customers mentioned above. These customers represent a single market or segment with similar stringent and well-defined requirements. The Company’s customers, in turn, sell the components and subassemblies which incorporate the products into many different end markets, however, these end markets are two to three levels removed from the Company. The Company makes operating decisions and assesses financial performance only for the Company as a whole and does not make operating decisions or assess financial performance by the end markets which ultimately use the products. |
(3) Inventories
(3) Inventories | 12 Months Ended |
Dec. 28, 2019 | |
Inventory Disclosure [Abstract] | |
(3) Inventories | (3) Inventories As of December 28, 2019 and December 29, 2018 inventories consisted of the following: 2019 2018 Raw materials $ 778,409 $ 706,982 Work in process 1,898,916 2,248,370 Finished goods 871,861 693,943 Gross Inventory 3,549,186 3,649,295 Reserve for obsolescence (449,362) (456,362) Total $ 3,099,824 $ 3,192,933 |
(4) Leases
(4) Leases | 12 Months Ended |
Dec. 28, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
(4) Leases | (4) Leases The Company has two real estate leases—one expiring in February 2021 and one with a 12 month duration with options to extend additional years. Since the latter is not reasonably certain that any options will be exercised, it has not been recorded on the balance sheet in accordance with the accounting policy elected in Note 2. CPS also has a few other leases for equipment which are minor in nature and are generally short-term in duration. None of these have been capitalized. The lease expiring in 2021 (the “Norton facility lease’) is included as a right-of-use lease asset and corresponding lease liability on the balance sheet. This asset and liability was recognized on December 30, 2018 based on the present value of remaining lease payments over the remaining lease term using the Company’s incremental borrowing rate at date of adoption. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. The Norton facility lease comprises approximately 38 thousand square feet. The lease is a 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 buy the property and a first right of refusal during the term of the lease. Annual rental payments are $152 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 as of December 28, 2019 (Dollars in Thousands) December 28, 2019 Maturity of capitalized lease liabilities Lease payments 2020 152 2021 26 Total undiscounted operating lease payments $ 178 Less: Imputed interest (7) Present value of operating lease liability $ 171 Balance Sheet Classification Current lease liability $ 148 Long-term lease liability 23 Total operating lease liability $ 171 Other Information Weighted-average remaining lease term for capitalized operating leases 14 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 $152 thousand during 2019 and is included in operating cash flows. Operating Lease Costs Operating lease cost was $152 thousand during 2019. This cost is related to its long-term operating lease. All other short-term leases were immaterial. Finance Leases The company does not have any finance leases. |
(5) Share-Based Compensation Pl
(5) Share-Based Compensation Plans | 12 Months Ended |
Dec. 28, 2019 | |
Retirement Benefits [Abstract] | |
(5) Share-Based Compensation Plans | (5) Share-Based Compensation Plans The Company adopted the 2009 Stock Incentive Plan ("2009 Plan") on December 10, 2009. Under the terms of the 2009 Plan all of the Company’s employees, officers, directors, consultants and advisors are eligible to be granted options, restricted stock awards, or other stock-based awards. Some outstanding options are nonstatutory stock options; some are incentive stock options. All options granted are exercisable at the fair market value of the stock on the date of grant, and expire ten years from the date of grant. The options granted to employees generally vest in equal annual installments over a five-year period. The options granted to directors generally vest immediately on date of grant. Under the 2009 Plan a total of 2,848,100 shares of common stock are available for issuance, of which 1,053,995 shares remain available for grant as of December 28, 2019. A summary of stock option activity as of December 28, 2019 and changes during the year then ended is presented below: Weighted Weighted Average Remaining Aggregate Exercise Contractual Intrinsic Shares Price Life (years) Value Outstanding at beginning of year 1,753,605 $ 1.75 Granted 199,500 $ 1.44 Exercised — — Forfeited (127,000) $ 1.61 Expired (32,000) $ 1.58 Outstanding at end of year 1,794,105 $ 1.72 3.8 $ 11,120 Options exercisable at year-end 1,471,905 $ 1.74 3.1 $ 10,550 No options were exercised during fiscal 2019 or 2018. The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model. The following table presents the annualized weighted average values of the significant assumptions used to estimate the fair values of the options granted during 2019 and 2018: 2019 2018 Risk-free interest rate 2.48% 2.76% Expected life in years 6.1 6.1 Expected volatility 54% 54% Expected dividend yield 0 0 Weighted average fair value of grants $ .79 $ .84 All options are granted with an exercise price equal to the fair market value of the underlying common stock on the date of grant. The Company recognized $133,671 and $220,654 as stock based compensation expense in 2019 and 2018, respectively including $131,421 related to stock options outstanding and $2,250 related to the issue of common stock in 2019. As of December 28, 2019, there was $171,332 of total unrecognized compensation cost related to non-vested share-based compensation arrangements granted under the plan; that cost is expected to be recognized over a weighted average period of 2.2 years. |
(6) Accrued Expenses
(6) Accrued Expenses | 12 Months Ended |
Dec. 28, 2019 | |
Payables and Accruals [Abstract] | |
(6) Accrued Expenses | (6) Accrued Expenses Accrued expenses at December 28, 2019 and December 29, 2018 consist of the following: 2019 2018 Accrued legal and accounting $ 62,725 $ 67,000 Accrued payroll and related costs 518,015 594,641 Accrued other 234,426 313,674 $ 815,166 $ 975,315 |
(7) Revolving Line of Credit
(7) Revolving Line of Credit | 12 Months Ended |
Dec. 28, 2019 | |
Debt Disclosure [Abstract] | |
(7) Revolving Line of Credit | (7) Revolving Line of Credit In September 2019, the Company entered into revolving line of credit (“LOC”) with Massachusetts Business Development Corporation(“BDC”) in the amount of $2.5 million. This agreement replaces the $1.25 million line of credit with Santander Bank. The agreement includes a demand note allowing the Lender to call the loan at any time. The Company may terminate the agreement without a termination fee after 3 years. The LOC is secured by the accounts receivable and other assets of the Company and has an interest rate of LIBOR plus 650 basis points. The LOC was initially limited to a maximum of $2.0 million and included a requirement that the total loss for 2019 be $640 thousand or better before the company will be able to access the full $2.5 million. At December 28, 2019 the Company had $1.25 million of borrowings under this LOC and its borrowing base at the time would have permitted an additional $750 thousand to have been borrowed . Total Interest Expense for 2019 was $44 thousand. |
(8) Income Taxes
(8) Income Taxes | 12 Months Ended |
Dec. 28, 2019 | |
Income Tax Disclosure [Abstract] | |
(8) Income Taxes | (8) Income Taxes Components of income tax expense (benefit) for each year are as follows: 2019 2018 Current Federal $ (33,874) $ (67,956) State 456 456 Current income tax provision (benefit): (33,418) (67,500) Deferred: Federal (6,387) 2,285,758 State 45,261 566,161 Deferred income tax provision (benefit), net 38,874 2,851,919 Total $ 5,456 $ 2,784,419 Deferred tax assets as of December 28, 2019 and December 29, 2018 are as follows: December 28, 2019 December 29, 2018 Deferred Tax Assets: Net operating loss carryforwards $ 884,508 $ 738,213 Stock compensation 543,614 524,893 Credit carryforwards 1,317,445 1,365,068 Inventory 316,943 281,192 Accrued liabilities 18,920 21,615 Depreciation 237,449 215,936 Other 2,732 2,985 Gross deferred tax assets 3,321,611 3,149,902 Valuation allowance 3,173,738 2,963,155 Net deferred tax assets $ 147,873 $ 186,747 At December 28, 2019 and December 29, 2018 the Company had net operating loss carryforwards of approximately $3,278,463 and $2,742,700, respectively, available to offset future income for U.S. Federal income tax purposes. The Company established a valuation reserve as it is judged more likely than not that all or a portion of the tax credits will not be used before they expire. This decision was initially reached in 2018 after giving greater weight to its losses over the last three years compared with its forecast of the future. A summary of the change in the deferred tax asset is as follows: 2019 2018 Balance at beginning of year $ 3,150,155 $ 3,038,666 Deferred tax benefit (provision) 171,456 111,236 Valuation allowance (3,173,738) (2,963,155) Balance at end of year $ 147,873 $ 186,747 Income tax expense is different from the amounts computed by applying the U.S. federal statutory income tax rate of 21 percent to pretax income as a result of the following: 2019 2018 Tax at statutory rate $ (125,527) $ (193,000) State tax, net of federal benefit 360 450 Net operating loss and credit carryforwards 153,204 (68,857) Valuation allowance 210,836 2,962,902 Other (233,417) 82,924 Total $ 5,456 $ 2,784,419 The Company’s income tax filings are subject to review and examination by federal and state taxing authorities. The Company is currently open to audit under the applicable statutes of limitations for the years 2016 through 2019. |
(9) Retirement Savings Plan
(9) Retirement Savings Plan | 12 Months Ended |
Dec. 28, 2019 | |
Retirement Benefits [Abstract] | |
(9) Retirement Savings Plan | (9) Retirement Savings Plan The Company sponsors a Retirement Savings Plan (the ‘Plan’) under the provisions of Section 401 of the Internal Revenue Code. Employees, as defined in the Plan, are eligible to participate in the Plan after 30 days of employment. Under the terms of the Plan, the Company may match employee contributions under such method as described in the Plan and as determined each year by the Board of Directors. During 2019 and 2018 the Company did not offer a 401k match. |
(10) Concentrations of Credit R
(10) Concentrations of Credit Rick, Significant Customers and Geographic Information | 12 Months Ended |
Dec. 28, 2019 | |
Accounting Policies [Abstract] | |
(10) Concentrations of Credit Risk, Significant Customers and Geographic Information | (10) Concentrations of Credit Risk, Significant Customers and Geographic Information Financial instruments which subject the Company to concentrations of credit risk consist principally of cash, cash equivalents and trade accounts receivable. The Company maintains such cash deposits in a high credit quality financial institution. The Company extends credit to customers who consist principally of microelectronics systems companies in the United States, Europe and Asia. The Company generally does not require collateral or other security as a condition of sale rather relying on credit approval, balance limitation and monitoring procedures to control credit risk of trade accounts receivable. Management conducts on-going credit evaluations of its customers, and historically the Company has not experienced any significant credit-related losses with respect to its trade accounts receivable. Revenues from significant customers as a percentage of total revenues in 2019 and 2018 were as follows: Percent of Total Revenues Significant Customer 2019 2018 A 43 % 36 % B 14 % 17 % C 13 % 12 % As of December 28, 2019, the Company had trade accounts receivable due from these three customers that accounted for 85% of total trade accounts receivable as of that date. No other customer balances constitute 10% or more of accounts receivable at December 28, 2019. To further mitigate the potential for credit losses the Company has acquired a credit insurance policy covering most of our sales to non-US accounts. Management believes that any credit risks have been properly provided for in the accompanying financial statements. The Company’s revenue was derived from the following countries in 2018 and 2017: Percent of Total Revenues Country 2019 2018 United States of America 25 % 33 % Germany 44 % 53 % Other 31 % 14 % Many of the Company’s customers based in the United States conduct design, purchasing and payable functions in the United States, but manufacture overseas. Revenue generated from shipments made to customers’ locations outside the United States accounted for 75% and 67% of total revenue in 2019 and 2018, respectively. All of the Company’s long-lived assets and operations are located in the United States. |
(2) Summary of Significant Ac_2
(2) Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 28, 2019 | |
Accounting Policies [Abstract] | |
Cash and Cash Equivalents | (2)(a) Cash and Cash Equivalents The Company considers all highly liquid investments with a maturity of three months or less at the date of purchase to be cash equivalents. |
(2)(b) Accounts Receivable | (2)(b) Accounts Receivable The Company reports its accounts receivable at the invoiced amount less an allowance for doubtful accounts. The Company’s management provides appropriate provisions for uncollectible accounts based upon factors surrounding the credit risk and activity of specific customers, historical trends, economic conditions and other information. Adjustments to the allowance are charged to operations in the period in which information becomes available that may affect the allowance. |
(2)(c) Inventories | (2)(c) Inventories Inventories are stated at the lower of cost, as determined under the first-in, first-out method (FIFO), or net realizable value. A reserve for obsolete inventories is based on factors regarding the sales and usage of such inventories, including inventories manufactured for specific customers. The Company’s general obsolescence policy is to write off obsolete inventory when there has been no activity on a particular part for a twelve month period and there are no pending customer orders. |
(2)(d) Property and Equipment | (2)(d) Property and Equipment Property and equipment are stated at cost. Depreciation of equipment is calculated on a straight-line basis over the estimated useful life, generally five years for production equipment and three to five years for furniture and office equipment. Leasehold improvements are depreciated over the shorter of the lease term or their useful life. Maintenance and repairs are charged to expense as incurred. Upon retirement or sale, the cost and related accumulated depreciation or amortization are removed from their respective accounts. Any gains or losses on the disposition of property and equipment are included in the results of operations in the period in which they occur. |
(2)(e) Impairment of Long-Lived Assets | (2)(e) Impairment of Long-Lived Assets The Company reviews long-lived assets for impairment whenever circumstances and situations change such that there is an indication that the carrying amounts may not be recovered. Recoverability is assessed based on estimated undiscounted future cash flows. As of December 28, 2019 and December 29, 2018, the Company believes that there has been no impairment of its long-lived assets. |
(2)(f) Revenue Recognition | (2)(f) Revenue Recognition The Company adopted Accounting Standards Codification (ASC) 606, “Revenue from Contracts with Customers” in fiscal 2018. The adoption of FASB ASC Topic 606 did not have a material impact on the Company’s financial statements and no cumulative adjustment was required. Identifying the Contract with the Customer The Company identifies contracts with customers as agreements that create enforceable rights and obligations. In the case of a few large customers the Company has executed long-term Master Sales Agreements (“MSA”). These are umbrella agreements which typically define the terms and conditions under which a customer can order goods from CPS. These in themselves do not constitute a contract as no products are committed to be transferred and the customer has no obligation to make payments. The Company contract is only enforceable once both parties have approved it, and is usually in the form of a written purchase order from a customer combined with acknowledgement from the Company. In cases without an MSA, the customer submits a blueprint for a product, the Company provides a quote and the customer responds with a purchase order. In these cases the Company’s acceptance of the purchase order constitutes an enforceable contract. Identifying the Performance Obligations in the Contract For each contract, the Company considers the promise to transfer products, each of which are distinct, to be the identified performance obligations. Shipping and handling activities for which the Company is responsible are not a separate promised service but instead are activities to fulfill the entity’s promise to transfer goods. Shipping and handling fees will be recognized at the same time as the related performance obligations are satisfied. The Company provides an assurance-type warranty. This guarantees that the product functions as promised and meets specifications. Under its terms and conditions the Company offers a 30 day warranty and replaces defective or non-conforming products. The expense of replacement is recorded at the time the Company agrees to replace a defective or non-conforming product. This assurance type warranty is not considered to be a distinct performance obligation. Determining the Transaction Price The Company determines the transaction price as the amount of consideration specified in the contract that it expects to receive in exchange for transferring promised goods to the customer. Amounts collected from customers for sales value added and other taxes are excluded from the transaction prices. Product sales are recorded net of trade discounts and sales returns. If a contract includes a variable amount, such as a rebate, then the Company estimates the transaction price using either the expected value or the most likely amount of consideration to be received, depending upon the specific facts and circumstances. The Company includes estimated variable consideration in the transaction price only to the extent it is probable that a significant reversal of revenue will not occur when the uncertainty is resolved. The Company updates its estimate of variable consideration at the end of each reporting period to reflect changes in facts and circumstances. As of December 28, 2019 there are no contracts with variable consideration. When credit is granted to customers, payment is typically due 30 to 90 days from billing and accordingly our contracts with customers do not include a significant financing component. Allocating the Transaction Price to the Performance Obligations In virtually all cases the transaction price is tied to a specific product in the contract obviating the need for any allocation. Recognizing Revenue When (or as) the Performance Obligations are Satisfied The Company recognizes revenue at the point in time when it transfers control of the promised goods or services to the customer, which typically occurs once the product has shipped or has been delivered to the customer. Occasionally, for the purpose of ensuring a steady flow of product, the Company ships products on consignment. In these instances, delivery is deemed to have occurred when the customer pulls inventory out of the warehouse for use in their production, or upon a specified period of time as agreed upon by both parties. As of December 28, 2019 there are no products on consignment. The Company generally expenses sales commissions when incurred because the amortization period would have been one year or less. The costs are recorded within, selling, general and administrative expenses. The Company does not disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less |
(2)(g) Income Taxes | (2)(g) Income Taxes The Company uses the liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are recorded for the expected future tax consequences of temporary differences between the financial reporting and income tax bases of assets and liabilities and are measured using the enacted tax rates and laws that are expected to be in affect when the differences reverse. A valuation allowance is established to reduce net deferred tax assets to the amount expected to be realized. The Company’s policy is to recognize interest and penalties related to income tax matters in income tax expense. As of December 28, 2019 and December 29, 2018, the Company has no accruals for interest or penalties related to income tax matters. The Company does not have any uncertain tax positions at December 28, 2019 or December 29, 2018 which required accrual or disclosure. |
(2)(h) Net Income (Loss) Per Common Share | (2)(h) Net Income (Loss) Per Common 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 option 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. |
(2)(i) Reclassification | (2)(i) Reclassification Certain amounts in prior year’s financial statements have been reclassified to conform to the current year’s presentation. |
(2)(j) Recent Accounting Pronouncements | (2)(j) Recent Accounting Pronouncements In the normal course of business, management evaluates all the new accounting pronouncements issued by the Financial Accounting Standard Board (“FASB”). Based upon this review, except as noted below, management does not expect any of the recently issued accounting pronouncements, which have not already been adopted, to have a material impact on the Company’s consolidated financial statements. New Accounting Pronouncements Pronouncements adopted in 2019 The Company adopted Accounting Standards Codification (ASC) 842 for leases effective at the beginning of the fiscal year, December 30, 2018, using the cumulative-effect adjustment transition method, which applies the provisions of the standard at the effective date without adjusting the comparative periods presented. The Company elected an accounting policy for short-term leases, which allows lessees to avoid recognizing right-of-use assets and liabilities for leases with terms of 12 months or fewer. We have lease agreements with lease and non-lease components, which are generally accounted for separately. We have not elected the practical expedient to account for lease and non-lease components as one lease component. The Company has elected certain practical expedients upon adoption and therefore has not reassessed whether any expired or existing contracts contain leases, has not reassessed the lease classification for any expired or existing leases and has not reassessed initial direct costs for any existing leases. Adoption of the standard resulted in the recognition of operating lease right-of-use assets and corresponding lease liabilities of $310 thousand on the balance sheet as of December 30, 2018. The standard did not materially impact operating results or liquidity. Disclosures related to the amount, timing and uncertainty of cash flows arising from leases are included in Note 4, Leases. |
(2)(k) Use of Estimates in the Preparation of Financial Statements | (2)(k) Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the amounts of revenues and expenses recorded during the reporting period. Such estimates are adjusted by management periodically as a result of existing or anticipated economic changes which effect, or may effect, the Company’s financial statements. Actual results could differ from these estimates. |
(2)(l) Fiscal Year-End | (2)(l) Fiscal Year-End The Company’s fiscal year end is the last Saturday in December which could result in a 52 or 53 week year. Fiscal years 2019 and 2018 each consisted of 52 weeks. |
(2)(m) Share-Based Payments | (2)(m) 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, 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 stock options granted. |
(2)(n) Segment Reporting | (2)(n) Segment Reporting The Company views its operations and manages its business as one segment. The Company produces and sells advanced material solutions, primarily metal matrix composites, to assemblers of high density electronics and other specialty components and subassemblies. The Company also assembles housings and packages for hybrid circuits, selling to the same customers mentioned above. These customers represent a single market or segment with similar stringent and well-defined requirements. The Company’s customers, in turn, sell the components and subassemblies which incorporate the products into many different end markets, however, these end markets are two to three levels removed from the Company. The Company makes operating decisions and assesses financial performance only for the Company as a whole and does not make operating decisions or assess financial performance by the end markets which ultimately use the products. |
(3) Inventories (Tables)
(3) Inventories (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | 2019 2018 Raw materials $ 778,409 $ 706,982 Work in process 1,898,916 2,248,370 Finished goods 871,861 693,943 Gross Inventory 3,549,186 3,649,295 Reserve for obsolescence (449,362) (456,362) Total $ 3,099,824 $ 3,192,933 |
(4) Leases (Tables)
(4) Leases (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Capital Lease Liabilities | (Dollars in Thousands) December 28, 2019 Maturity of capitalized lease liabilities Lease payments 2020 152 2021 26 Total undiscounted operating lease payments $ 178 Less: Imputed interest (7) Present value of operating lease liability $ 171 Balance Sheet Classification Current lease liability $ 148 Long-term lease liability 23 Total operating lease liability $ 171 Other Information Weighted-average remaining lease term for capitalized operating leases 14 months Weighted-average discount rate for capitalized operating leases 6.5% |
(5) Share-Based Compensation _2
(5) Share-Based Compensation Plans (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Retirement Benefits [Abstract] | |
Schedule of Share-Based Compensation | Weighted Weighted Average Remaining Aggregate Exercise Contractual Intrinsic Shares Price Life (years) Value Outstanding at beginning of year 1,753,605 $ 1.75 Granted 199,500 $ 1.44 Exercised — — Forfeited (127,000) $ 1.61 Expired (32,000) $ 1.58 Outstanding at end of year 1,794,105 $ 1.72 3.8 $ 11,120 Options exercisable at year-end 1,471,905 $ 1.74 3.1 $ 10,550 ======== ===== ======== |
Annualized Weighted Average values of the significant assumptions used | 2019 2018 Risk-free interest rate 2.48% 2.76% Expected life in years 6.1 6.1 Expected volatility 54% 54% Expected dividend yield 0 0 Weighted average fair value of grants $ .79 $ .84 |
(6) Accrued Expenses (Tables)
(6) Accrued Expenses (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | 2019 2018 Accrued legal and accounting $ 62,725 $ 67,000 Accrued payroll and related costs 518,015 594,641 Accrued other 234,426 313,674 $ 815,166 $ 975,315 |
(8) Income Taxes (Tables)
(8) Income Taxes (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Income Tax Disclosure [Abstract] | |
Components of income tax expense (benefit) | 2019 2018 Current Federal $ (33,874) $ (67,956) State 456 456 Current income tax provision (benefit): (33,418) (67,500) Deferred: Federal (6,387) 2,285,758 State 45,261 566,161 Deferred income tax provision (benefit), net 38,874 2,851,919 Total $ 5,456 $ 2,784,419 |
Deferred tax assets | December 28, 2019 December 29, 2018 Deferred Tax Assets: Net operating loss carryforwards $ 884,508 $ 738,213 Stock compensation 543,614 524,893 Credit carryforwards 1,317,445 1,365,068 Inventory 316,943 281,192 Accrued liabilities 18,920 21,615 Depreciation 237,449 215,936 Other 2,732 2,985 Gross deferred tax assets 3,321,611 3,149,902 Valuation allowance 3,173,738 2,963,155 Net deferred tax assets $ 147,873 $ 186,747 |
Summary of the change in the deferred tax asset | 2019 2018 Balance at beginning of year $ 3,150,155 $ 3,038,666 Deferred tax benefit (provision) 171,456 111,236 Valuation allowance (3,173,738) (2,963,155) Balance at end of year $ 147,873 $ 186,747 |
Applying the U.S. federal statutory income tax tax rate of 21 percent | 2019 2018 Tax at statutory rate $ (125,527) $ (193,000) State tax, net of federal benefit 360 450 Net operating loss and credit carryforwards 153,204 (68,857) Valuation allowance 210,836 2,962,902 Other (233,417) 82,924 Total $ 5,456 $ 2,784,419 |
(10) Concentrations of Credit_2
(10) Concentrations of Credit Rick, Significant Customers and Geographic Information (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Accounting Policies [Abstract] | |
Significant Customer | Percent of Total Revenues Significant Customer 2019 2018 A 43 % 36 % B 14 % 17 % C 13 % 12 % |
Revenue derived from following countries | Percent of Total Revenues Country 2019 2018 United States of America 25 % 33 % Germany 44 % 53 % Other 31 % 14 % |
(3) Inventories - Inventories (
(3) Inventories - Inventories (Details) - USD ($) | Dec. 28, 2019 | Dec. 29, 2018 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 778,409 | $ 706,982 |
Work in process | 1,898,916 | 2,248,370 |
Finished goods | 871,861 | 693,943 |
Gross Inventory | 3,549,186 | 3,649,295 |
Reserve for obsolescence | (449,362) | (456,362) |
Total | $ 3,099,824 | $ 3,192,933 |
(4) Leases - Capital Lease Liab
(4) Leases - Capital Lease Liabilities (Details) | 12 Months Ended |
Dec. 28, 2019USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Maturity of capitalized lease liabilities (Dollars in Thousands) | (Dollars in Thousands) December 28, 2019 Maturity of capitalized lease liabilities Lease payments 2020 152 2021 26 Total undiscounted operating lease payments $ 178 Less: Imputed interest (7) Present value of operating lease liability $ 171 Balance Sheet Classification Current lease liability $ 148 Long-term lease liability 23 Total operating lease liability $ 171 Other Information Weighted-average remaining lease term for capitalized operating leases 14 months Weighted-average discount rate for capitalized operating leases 6.5% |
2020 | $ 152 |
2021 | 26 |
Total undiscounted operating lease payments | 178 |
Less: Imputed interest | (7) |
Present value of operating lease liability | $ 171 |
Balance Sheet Classification | (Dollars in Thousands) December 28, 2019 Maturity of capitalized lease liabilities Lease payments 2020 152 2021 26 Total undiscounted operating lease payments $ 178 Less: Imputed interest (7) Present value of operating lease liability $ 171 Balance Sheet Classification Current lease liability $ 148 Long-term lease liability 23 Total operating lease liability $ 171 Other Information Weighted-average remaining lease term for capitalized operating leases 14 months Weighted-average discount rate for capitalized operating leases 6.5% |
Current lease liability | $ 148 |
Long-term lease liability | 23 |
Total operating lease liability | $ 171 |
Weighted-average remaining lease term for capitalized operating leases | 14 months |
Weighted-average discount rate for capitalized operating leases | 6.50% |
(5) Share-Based Compensation _3
(5) Share-Based Compensation Plans - Schedule of Share-Based Compensation (Details) | 12 Months Ended |
Dec. 28, 2019USD ($)shares | |
Retirement Benefits [Abstract] | |
Outstanding at beginning of year | 1,753,605 |
Granted | 199,500 |
Exercised | |
Forfeited | 127,000 |
Expired | 32,000 |
Outstanding at end of year | 1,794,105 |
Options exercisable at year-end | 1,471,905 |
Aggregate Intrinsic Value Outstanding at end of year | $ | $ 11,120 |
Aggregate Intrinsic Value Outstanding Exercisable at end of year | $ | $ 10,550 |
Weighted remaining contractual life outstanding | 3 years 8 months |
Weighted remaining contractual life outstanding exercisable | 3 years 1 month |
(5) Share-Based Compensation _4
(5) Share-Based Compensation Plans - Annualized Weighted Average values of the significant assumptions used (Details) - $ / shares | 12 Months Ended | |
Dec. 28, 2019 | Dec. 29, 2018 | |
Retirement Benefits [Abstract] | ||
Risk-free interest | 2.48% | 2.08% |
Expected life in years | 6 years 1 month | 6 years 1 month |
Expected volatility | 54.00% | 54.00% |
Expected dividend yield | 0.00% | 0.00% |
Weighted average fair value of grants | $ 0.79 | $ 0.84 |
(6) Accrued Expenses - Accrued
(6) Accrued Expenses - Accrued Expenses (Details) - USD ($) | Dec. 28, 2019 | Dec. 29, 2018 |
Payables and Accruals [Abstract] | ||
Accrued legal and accounting | $ 62,725 | $ 67,000 |
Accrued payroll and related costs | 518,015 | 594,641 |
Accrued other | 234,426 | 313,674 |
Total | $ 815,166 | $ 975,315 |
(8) Income Taxes - Components o
(8) Income Taxes - Components of income tax expense (benefit) (Details) - USD ($) | 12 Months Ended | |
Dec. 28, 2019 | Dec. 29, 2018 | |
Current | ||
Federal | $ (33,874) | $ (67,956) |
State | 456 | 456 |
Current income tax provision (benefit): | (33,418) | (67,500) |
Deferred: | ||
Federal | (6,387) | 2,285,758 |
State | 45,261 | 566,161 |
Deferred income tax provision (benefit), net | 38,874 | 2,851,919 |
Total | $ 5,456 | $ 2,784,419 |
(8) Income Taxes - Deferred tax
(8) Income Taxes - Deferred tax assets (Details) - USD ($) | Dec. 28, 2019 | Dec. 29, 2018 |
Deferred Tax Assets: | ||
Net operating loss carryforwards | $ 884,508 | $ 738,213 |
Stock compensation | 543,614 | 524,893 |
Credit carryforwards | 1,317,445 | 1,365,068 |
Inventory | 316,943 | 281,192 |
Accrued liabilities | 18,920 | 21,615 |
Depreciation | 237,449 | 215,936 |
Other | 2,732 | 2,985 |
Gross deferred tax assets | 3,321,611 | 3,149,902 |
Valuation allowance | 3,173,738 | 2,963,155 |
Net deferred tax assets | $ 147,873 | $ 186,747 |
(8) Income Taxes - Summary of t
(8) Income Taxes - Summary of the change in the deferred tax asset (Details) - USD ($) | 12 Months Ended | |
Dec. 28, 2019 | Dec. 29, 2018 | |
Income Tax Disclosure [Abstract] | ||
Balance at beginning of year | $ 186,747 | $ 3,038,666 |
Deferred tax benefit (provision) | 171,456 | 111,236 |
Valuation allowance | (3,173,738) | (2,963,155) |
Balance at end of year | $ 147,873 | $ 186,747 |
(8) Income Taxes - Applying the
(8) Income Taxes - Applying the U.S. federal statutory income tax tax rate of 21 percent (Details) - USD ($) | 12 Months Ended | |
Dec. 28, 2019 | Dec. 29, 2018 | |
Income Tax Disclosure [Abstract] | ||
Tax at statutory rate | (12552700.00%) | (19300000.00%) |
State tax, net of federal benefit | $ 360 | $ 450 |
Net operating loss and credit carryforwards | 153,204 | (68,857) |
Valuation allowance | 210,836 | 2,962,902 |
Other | (233,417) | 82,924 |
Total | $ 5,456 | $ 2,784,419 |
(10) Concentrations of Credit_3
(10) Concentrations of Credit Rick, Significant Customers and Geographic Information - Significant Customer (Details) | 12 Months Ended | |
Dec. 28, 2019 | Dec. 29, 2018 | |
Significant Customer Percent of Revenue | ||
A | 43.00% | 36.00% |
B | 14.00% | 17.00% |
C | 13.00% | 12.00% |
(10) Concentrations of Credit_4
(10) Concentrations of Credit Rick, Significant Customers and Geographic Information - Revenue derived from following countries (Details) | 12 Months Ended | |
Dec. 28, 2019 | Dec. 29, 2018 | |
Percent of Total Revenues Country | ||
United States of America | 25.00% | 33.00% |
Germany | 44.00% | 53.00% |
Other | 31.00% | 14.00% |