CPSH — what changed in the latest 10-Q

Text added vs the prior filing · source: 10-Q · 2026-05-05

• The Company’s products contribute to the electrification of the green economy. The products we provide include baseplates for motor controllers used in high-speed electric trains, subway cars, wind turbines, hybrid and electric vehicles and the transmission of High Voltage Direct Current (HVDC). We …

• We provide baseplates and housings used in modules built with Wide Band Gap Semiconductors like SiC and GaN. CPS also assembles housings and packages for hybrid circuits. These housings and packages may include MMC components; they may include components made of more traditional materials such as al…

• Results of Operations for the First Fiscal Quarter of 2026 (Q1 2026) Compared to the First Fiscal Quarter of 2025 (Q1 2025); (all $ in 000’s)

• Revenues totaled $7,029 in Q1 2026 compared with $7,506 in Q1 2025, a decrease of 6%. The major factor contributing to this decrease is the reduction in demand from one of our major customers. As announced in Q4 2025, CPS received a large order from this customer covering the twelve month period beg…

• Gross margin in Q1 2026 totaled $607 or 9% of sales. This compares with gross margin in Q1 2025 totaled $1,231 or 16% of sales. This decrease was primarily due to the impact of lower sales volumes on fixed costs, the impact of the price of gold, billed at $1,019 at approximately a 0% margin, and inc…

Text removed vs the prior filing · source: 10-Q · 2025-10-31

• On July 4, 2025, the One Big Beautiful Bill Act (Public Law 119-21) was enacted, introducing significant changes to the Internal Revenue Code that affect the Company’s tax accounting estimates. These changes involve a high degree of estimation uncertainty and are reasonably likely to have a material…

• Deferred Tax Asset Realizability: The restoration of immediate expensing for domestic R&E expenditures under new Section 174A and enhanced Section 179 limits may materially alter the timing and magnitude of deductible expenses. The Company is reassessing the realizability of deferred tax assets tied…

• International Tax Provisions (NeCTIe and FDDEI): The restructuring of GILTI and FDII regimes introduces new deduction rates, foreign tax credit limitations, and eligibility criteria. These changes affect the Company’s assumptions regarding foreign income inclusions, expense allocations, and valuatio…

• Bonus Depreciation and Enhancement of Section 179 Expensing: The reinstatement of 100% bonus depreciation and enhancement of Section 179 requires updated modeling of book-tax differences and deferred balances. The Company is evaluating the impact on capital expenditure forecasts and financing strate…

• The Company’s critical accounting estimates related to income taxes are subject to change as further guidance is issued and as the Company refines its tax planning strategies. Management continues to monitor developments and will update assumptions and disclosures as necessary.

Text added vs the prior filing · source: 10-Q · 2026-05-05

• The Company is not significantly exposed to the impact of interest rate changes. The Company has not used derivative financial instruments. As one of our major competitors is located in Japan, currency fluctuations can have an impact on how we price our product in order to remain competitive.

• As of the date of this document, we are not aware of any material negative impacts that tariffs have on our business. Nevertheless, this issue is currently in flux. We could be negatively impacted in the sourcing of raw materials, or, reciprocal tariffs on CPS product could make it more difficult fo…

• We are not a party to any litigation which could have a material adverse effect on us or on our business.

• There have been no material changes to the risk factors as discussed in our 2025 Form 10-K.

Text removed vs the prior filing · source: 10-Q · 2025-10-31

• The Company is not significantly exposed to the direct impact of interest rate changes or foreign currency fluctuations. Nevertheless, one of the Company’s major competitors is located in Japan. The relative strength of the US dollar versus the Japanese yen can have a negative impact on the Company’…

• There have been no material changes to the risk factors as discussed in our 2024 Form 10-K.

Text added vs the prior filing · source: 10-Q · 2026-05-05

• We are not a party to any litigation which could have a material adverse effect on us or on our business.

• There have been no material changes to the risk factors as discussed in our 2025 Form 10-K.

Text removed vs the prior filing · source: 10-Q · 2025-10-31

• There have been no material changes to the risk factors as discussed in our 2024 Form 10-K.

Text added vs the prior filing · source: 10-Q · 2026-05-05

• We are not a party to any litigation which could have a material adverse effect on us or on our business.

• There have been no material changes to the risk factors as discussed in our 2025 Form 10-K.

Text removed vs the prior filing · source: 10-Q · 2025-10-31

• There have been no material changes to the risk factors as discussed in our 2024 Form 10-K.