CPS Technologies Corp. (NASDAQ:CPSH), a company specializing in pottery and related products, announced a change in its independent accounting firm.
On Monday, the company's Audit Committee dismissed Wolf & Company, P.C., effective upon completion of the review for the quarter ended September 28, 2024. The dismissal was confirmed not to be due to any disagreements on accounting principles, practices, financial statement disclosure, or auditing scope or procedure.
The reports from Wolf & Company for the fiscal years ending December 30, 2023, and December 31, 2022, did not contain any adverse opinions or disclaimers and were not qualified or modified regarding uncertainties, audit scope, or accounting principles. Furthermore, there were no disagreements or "reportable events" during the fiscal years mentioned and the interim periods through June 29, 2024.
CPS Technologies has provided Wolf & Company with the disclosures made in this report and has received a letter from Wolf & Company, dated today, agreeing with the statements made by CPS Technologies. This letter has been filed with the SEC as part of the company's Form 8-K.
In addition, on Sunday, the Audit Committee approved the engagement of PKF O’Connor Davies ("PKFOD") as the new independent registered public accounting firm for the fiscal year ending December 28, 2024, subject to the completion of PKFOD's client acceptance procedures.
This news is based on a press release statement and provides investors and stakeholders with the latest corporate governance developments at CPS Technologies Corp.
In other recent news, CPS Technologies has been awarded a $1.1 million contract from the U.S. Department of Energy. This funding is for a 24-month project that advances modular radiation shielding development for microreactors, marking the company's second Phase II Small Business Innovation Research (SBIR) contract this year.
CPS Technologies continues to refine lightweight shielding materials capable of blocking gamma and neutron radiation under the guidance of materials scientist Matthew Karnick.
In other developments, CPS Technologies reported a decline in second-quarter revenue to $5.0 million, down from $7.4 million in the same period last year.
The company faced challenges including the completion of a significant U.S. Navy Armor contract, shipment delays due to labor shortages, and production issues with a new hermetic packaging product. Despite these setbacks, CPS Technologies expressed optimism for future growth, particularly in the year 2025 and beyond.
These recent developments are part of CPS Technologies' ongoing efforts to innovate and expand its product portfolio. The company continues to focus on cost control, new product development, and pursuing federal funding opportunities.
CPS Technologies has also collaborated with NETCO, a division of Curtiss-Wright (NYSE:CW) Nuclear, bringing additional expertise in radiation shielding to the project.
InvestingPro Insights
As CPS Technologies Corp. (NASDAQ:CPSH) transitions to a new independent accounting firm, it's crucial to consider the company's current financial position. According to InvestingPro data, CPSH has a market capitalization of $20.34 million, with a revenue of $23.98 million for the last twelve months as of Q2 2024. However, the company has experienced a revenue decline of 12.44% over the same period.
InvestingPro Tips highlight that CPSH holds more cash than debt on its balance sheet, which could provide financial flexibility during this transition period. Additionally, the company's liquid assets exceed short-term obligations, potentially indicating a stable short-term financial position.
It's worth noting that CPSH is not currently profitable, with a negative P/E ratio of -25.93. This aligns with the InvestingPro Tip that the company has not been profitable over the last twelve months. The gross profit margin is also weak, which may be a concern for investors looking at the company's operational efficiency.
For investors seeking a more comprehensive analysis, InvestingPro offers 5 additional tips for CPSH, providing a deeper understanding of the company's financial health and market position.
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