CPS Technologies (CPSH) 21st Virtual Investor Summit Microcap Event summary

Management and Company Overview

• Leadership team has 1–5 years tenure, with a single 40,000 sq ft facility in Norton, MA operating three shifts.

• Balanced domestic (53%) and international (47%) revenue, with about half from aerospace and defense markets.

• Workforce increased to support production scale-up, especially for third shift.

• ISO-certified and ITAR-compliant, serving mission-critical applications.

• Leadership team brings deep expertise in advanced materials, manufacturing, and financial management.

Product Lines and Technology

• Four focus areas: metal matrix composites, hermetic packaging, composite armor, and product development.

• Metal matrix composites used in high-performance electronics, with a recent $12M order to be fulfilled over 12 months starting October 2024.

• Hermetic packaging primarily serves aerospace and defense, with new five-axis machining capability and a $200k matching award to enhance offerings.

• Composite armor panels installed on Navy aircraft carriers, with ongoing opportunities for destroyer-class vessels.

• Advanced R&D leverages SBIR-funded projects and three new research contracts totaling $2.3M, supporting growth and potential for sole-source government contracts.

Financial Performance and Outlook

• 2023 marked by record revenue of $27.6M, but also a net loss of $2.14M for the nine months ended September 28, 2024, due to production diverted to quality testing and increased costs.

• Production challenges addressed by adding a third shift, expected to improve results in Q4 and 2025.

• Maintained strong cash position: $4.7M cash, $1M in marketable securities, current ratio of 4.0, and virtually no debt.

• $3M undrawn line of credit available; resources sufficient for R&D investment and SG&A expenses under control.

• No immediate plans to raise capital, but S-3 filing kept active for flexibility.