CPS Technologies (CPSH) risk factors, FY2024 10-K

CPS Technologies's FY2024 10-K, filed Mar 17, 2025, lists 18 risk factors. There is no earlier 10-K to compare against, so the most company-specific risks are listed below.

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Risk factors listed
180 groups
Section length
3k wordsItem 1A

CPS Technologies's biggest risks in the FY2024 10-K

  • Customer concentration is high, with three customers accounting for 58% of revenue in 2024.
  • Manufacturing relies heavily on specific, sometimes sole-source, approved vendor steps like plating.
  • Sales cycles are lengthy and variable, often requiring customer product redesigns.

The risks most specific to CPS Technologies

  • We have a highly concentrated customer base so that changes in ordering patterns, delays or order cancellations could have a material adverse effect on our business and results of operations

    Three customers accounted for 58% of our revenue in 2024, making the loss of any major customer difficult to replace.

  • Our lengthy and variable sales cycle makes it difficult to predict our financial results

    Our sales cycle is lengthy, ranging from months to years, as customers evaluate properties and often must redesign other components.

  • Our dependence on outside vendors to perform particular steps in our manufacturing process could negatively impact us should those vendors be unable or unwilling to provide such service at a reasonable cost

    Customers require us to use approved, sometimes sole-source, outside vendors for specific manufacturing steps like plating before shipment.

  • Changes in trade policy could seriously impact our business

    Tariffs on raw materials originating outside the United States could cause our vendors to increase prices.

  • We may experience increasing price pressure

    Customer budgetary constraints and inflationary trends increase price pressure despite our focus on product performance over lowest price.

  • Continued growth could result in the need to move or expand our facilities. The costs of such a move or expansion could be significant to our profitability

    Future growth could require us to move or expand our current facility, incurring significant costs that could impact profitability.

All 18 risk factors

Headings as the filing states them, in filing order.

Other

  1. 01We have a highly concentrated customer base so that changes in ordering patterns, delays or order cancellations could have a material adverse effect on our business and results of operations
  2. 02Our lengthy and variable sales cycle makes it difficult to predict our financial results
  3. 03Fluctuations in foreign exchange rates can negatively impact our ability to compete against foreign based competitors
  4. 04Our dependence on outside vendors to perform particular steps in our manufacturing process could negatively impact us should those vendors be unable or unwilling to provide such service at a reasonable cost
  5. 05Our success is highly dependent on managerial contributions of key individuals and we may be unable to retain these individuals or recruit others
  6. 06Business or economic disruptions or global health concerns could seriously harm our business
  7. 07Changes in trade policy could seriously impact our business
  8. 08Acquisitions can result in an increase in our operating costs, divert management’s attention away from other operational matters and expose us to other associated risks
  9. 09The conditions of the markets in which we operate are volatile. The demand for our products and the profitability of our products can change significantly from period to period as a result of numerous factors
  10. 10Volatile and cyclical demand for our products may make it difficult for us to accurately budget our expense levels, which are based in part on our projections of future revenues
  11. 11We face significant competition, are relatively small in size and have fewer resources in comparison with some of our competitors
  12. 12We may experience increasing price pressure
  13. 13Manufacturing interruptions or delays could affect our ability to meet customer demand and lead to higher costs
  14. 14Continued growth could result in the need to move or expand our facilities. The costs of such a move or expansion could be significant to our profitability
  15. 15We have made investments in our proprietary technologies. If third parties violate our proprietary rights, or accuse us of infringing upon their proprietary rights, such events could result in a loss of value of some of our intellectual property or costly litigation
  16. 16The price of our common shares is volatile and could decline significantly
  17. 17the occurrence of major catastrophic events, including the effects of a possible resurgence of the novel coronavirus (COVID-19)
  18. 18If we are subject to cyber-attacks, we could incur substantial costs and, if such attacks are successful, we could incur significant liabilities, reputational harm, and disruption to our operations

Other CPS Technologies 10-Ks

  • FY2025 10-K risk factors
    23 risks11 new6 dropped12 reworded

    CPS Technologies faces manufacturing vendor risks, potential facility relocation disruptions, and new cybersecurity compliance costs under CMMC.

    Filed Mar 03, 2026

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.