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CPS Technologies (CPSH) Risk Analysis

Public companies are required to disclose risks that can affect the business and impact the stock. These disclosures are known as “Risk Factors”. Companies disclose these risks in their yearly (Form 10-K), quarterly earnings (Form 10-Q), or “foreign private issuer” reports (Form 20-F). Risk factors show the challenges a company faces. Investors can consider the worst-case scenarios before making an investment. TipRanks’ Risk Analysis categorizes risks based on proprietary classification algorithms and machine learning. CPS Technologies disclosed 21 risk factors in its most recent earnings report. CPS Technologies reported the most risks in the “Production” category.

Risk Overview Q2, 2026

Source: the company's latest filing for the period ended Jun 27, 2026, filed Aug 11, 2026

Risk Distribution
21Risks
Sector Avg.Finance & CorporateTech & InnovationLegal & RegulatoryProductionAbility to SellMacro & Political
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Risk Change Over Time

CPS Technologies disclosed risks per quarterNo. of Risks1416182022Q3Q4Q4Q2Q3Q4Q2Q3Q4Q2Showing: Q4, 2025
Risks removedRisks addedRisks changedCPS Technologies Risk Factors
  • Accounting & Financial Operations - Risk 1
    Our lengthy and variable sales cycle makes it difficult to predict our accurately forecast financial results.

    The sales cycle for our products is often prolonged, ranging from several months to several years. Prospective customers typically conduct extensive evaluations of our products relative to their existing solutions. In many cases, customers must also redesign other components of their end products to fully realize the benefits of our offerings. As a result, the extended sales cycle makes it difficult to predict the timing and volume of sales and increases the risk that customers may delay or cancel the launch of their end products, which could adversely affect demand for our products. The duration of the sales cycle varies based on the size and complexity of the project and the level of evaluation required by the customer.

  • Corporate Activity and Growth - Risk 2
    Acquisitions can result in an may increase in our operating costs, divert management's attention away from other operational matters priorities, and expose us to other associated additional risks.

    We periodically evaluate potential acquisitions of businesses or technologies and view targeted acquisitions that expand our core competencies as an important part of our growth strategy. While acquisitions may offer synergies in products, services, and technologies, they involve risks, including: - challenges and higher costs in integrating personnel, operations, technologies, products, and services - diversion of management's focus from other operational matters - failure to successfully commercialize acquired technology - loss of key employees from acquired companies - inability to achieve expected synergies - potential dilution of existing shareholders if our common stock is issued as part of a transaction - difficulties in obtaining or protecting intellectual property rights, and - impairment of acquired assets due to technological advances or underperformance. These risks could materially and adversely affect our business, financial condition, and results of operations.

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Risk Highlights Q2, 2026

Main Risk Category
Production
With 7 Risks
Number of Disclosed Risks
21
No changes from last report
S&P 500 Average: 32
Recent Changes
0Risks added
0Risks removed
0Risks changed
Since Jun 2026
Number of Risk Changed
0
-14
From last report
S&P 500 Average: 1

Risk Word Cloud

fluctuations in the prices and availability of raw materials may adversely affect margins, operating results, and cash flows.availability of raw materialscompliance with u.s. government requirements for handling controlled unclassified information (cui) could increase cps's operating costs.handling controlled unclassified informationwe may face increasing price pressure, which could adversely affect our margins.face increasing price pressurethe price of our common shares is volatile and could decline significantly.price of our common sharesclaims related to product defects, safety, or performance could result in significant costs, reputational harm, and operational disruption.claims related to product defectsvolatile and cyclical demand for our products may make it difficult to accurately budget expenses, which are partially based on projected revenues.difficult to accurately budget expenseswe operate in highly competitive markets, have fewer resources than some competitors, and may be subject to future import duties that could adversely affect our business.subject to future import dutiesacquisitions may increase our operating costs, divert management's attention from other priorities, and expose us to additional risks.expose us to additional risksour lengthy and variable sales cycle makes it difficult to accurately forecast financial results.variable sales cycle makesour success depends heavily on the contributions of key executives and employees, and we may be unable to retain them or recruit suitable replacements.contributions of key executives

Risk Factors Full Breakdown - Total Risks 21

Manufacturing2 | 9.5%
  • Manufacturing - Risk 1
    Claims related to product defects, safety, or performance could result in significant costs, reputational harm, and operational disruption.

    We may be subject to product liability, warranty, or recall claims arising from alleged defects, failures to meet specifications, or misuse of its products. Even if products are designed and manufactured in compliance with applicable standards, defects may occur due to design flaws, manufacturing errors, supplier issues, or unforeseen usage conditions. Such claims could lead to litigation, settlements, fines, penalties, or the costs of product recalls and corrective actions. In addition to direct financial impacts, adverse product liability or warranty claims could damage the Company's reputation, reduce customer confidence, and negatively affect demand for its products. The Company maintains insurance coverage for certain liabilities, but such coverage may be insufficient to cover all losses or may not be available on commercially reasonable terms in the future.

  • Manufacturing - Risk 2
    Manufacturing interruptions or delays could impair our ability to meet customer demand and increase operating costs.

    Our manufacturing operations may be subject to interruptions, delays, increased costs, or customer order cancellations due to a variety of factors, including: - the failure or inability of suppliers to deliver materials and components in sufficient quantities or on a timely and cost-effective basis,- volatility in the availability or cost of raw materials and components,- unexpected equipment failures requiring production delays or the outsourcing of certain manufacturing processes,- difficulties or delays in obtaining required import or export licenses, permits, or approvals,- information technology, systems, or infrastructure failures,- natural disasters or other events beyond our control, such as earthquakes, floods, severe weather, regional economic downturns, pandemics, social unrest, political instability, terrorism, or acts of war, and - the effects of pandemics or public health emergencies on our employees, suppliers, logistics providers, and other third parties on whom we rely. Any of these events could disrupt our operations, delay product deliveries, increase costs, or harm customer relationships, which could materially and adversely affect our business, financial condition, and results of operations.

See a full breakdown of risk according to category and subcategory. The list starts with the category with the most risk. Click on subcategories to read relevant extracts from the most recent report.

FAQ

What are “Risk Factors”?
Risk factors are any situations or occurrences that could make investing in a company risky. The Securities and Exchange Commission (SEC) requires that publicly traded companies disclose their most significant risk factors. This is so that potential investors can consider any risks before they make an investment. They also offer companies protection, as a company can use risk factors as liability protection. This could happen if a company underperforms and investors take legal action as a result. It is worth noting that smaller companies, that is those with a public float of under $75 million on the last business day, do not have to include risk factors in their 10-K and 10-Q forms, although some may choose to do so.
How do companies disclose their risk factors?
Publicly traded companies initially disclose their risk factors to the SEC through their S-1 filings as part of the IPO process. Additionally, companies must provide a complete list of risk factors in their Annual Reports (Form 10-K) or (Form 20-F) for “foreign private issuers”. Quarterly Reports also include a section on risk factors (Form 10-Q) where companies are only required to update any changes since the previous report. According to the SEC, risk factors should be reported concisely, logically and in “plain English” so investors can understand them.
How can I use TipRanks risk factors in my stock research?
Use the Risk Factors tab to get data about the risk factors of any company in which you are considering investing. You can easily see the most significant risks a company is facing. Additionally, you can find out which risk factors a company has added, removed or adjusted since its previous disclosure. You can also see how a company’s risk factors compare to others in its sector. Without reading company reports or participating in conference calls, you would most likely not have access to this sort of information, which is usually not included in press releases or other public announcements. A simplified analysis of risk factors is unique to TipRanks.
What are all the risk factor categories?
TipRanks has identified 6 major categories of risk factors and a number of subcategories for each. You can see how these categories are broken down in the list below. 1. Financial & Corporate Accounting & Financial Operations - risks related to accounting loss, value of intangible assets, financial statements, value of intangible assets, financial reporting, estimates, guidance, company profitability, dividends, fluctuating results. Share Price & Shareholder Rights – risks related to things that impact share prices and the rights of shareholders, including analyst ratings, major shareholder activity, trade volatility, liquidity of shares, anti-takeover provisions, international listing, dual listing. Debt & Financing – risks related to debt, funding, financing and interest rates, financial investments. Corporate Activity and Growth – risks related to restructuring, M&As, joint ventures, execution of corporate strategy, strategic alliances. 2. Legal & Regulatory Litigation and Legal Liabilities – risks related to litigation/ lawsuits against the company. Regulation – risks related to compliance, GDPR, and new legislation. Environmental / Social – risks related to environmental regulation and to data privacy. Taxation & Government Incentives – risks related to taxation and changes in government incentives. 3. Production Costs – risks related to costs of production including commodity prices, future contracts, inventory. Supply Chain – risks related to the company’s suppliers. Manufacturing – risks related to the company’s manufacturing process including product quality and product recalls. Human Capital – risks related to recruitment, training and retention of key employees, employee relationships & unions labor disputes, pension, and post retirement benefits, medical, health and welfare benefits, employee misconduct, employee litigation. 4. Technology & Innovation Innovation / R&D – risks related to innovation and new product development. Technology – risks related to the company’s reliance on technology. Cyber Security – risks related to securing the company’s digital assets and from cyber attacks. Trade Secrets & Patents – risks related to the company’s ability to protect its intellectual property and to infringement claims against the company as well as piracy and unlicensed copying. 5. Ability to Sell Demand – risks related to the demand of the company’s goods and services including seasonality, reliance on key customers. Competition – risks related to the company’s competition including substitutes. Sales & Marketing – risks related to sales, marketing, and distribution channels, pricing, and market penetration. Brand & Reputation – risks related to the company’s brand and reputation. 6. Macro & Political Economy & Political Environment – risks related to changes in economic and political conditions. Natural and Human Disruptions – risks related to catastrophes, floods, storms, terror, earthquakes, coronavirus pandemic/COVID-19. International Operations – risks related to the global nature of the company. Capital Markets – risks related to exchange rates and trade, cryptocurrency.