Number of shares of Common Stock outstanding as of March 5, 2021: 14,352,542 shares. Documents incorporated by reference. CPS products are important elements in electrifying the green economy. & CPS is a fully qualified manufacturer for many of the world's largest electronics OEMs. & The designer must resolve the thermal management issues or the system will fail. Every product is made to a customer's blueprint. The U.S. military has increasingly used ceramic armor in weight sensitive applications.& The Company believes its armor panels will increasingly be used in these applications. AlSiC is higher cost than steel. This is referred to as a "flip-chip package". We believe the need for thermal management will continue to grow rapidly. & These materials are primarily aluminum ingots, ceramic powders and chemicals. In other cases, we believe we are better served by reliance on trade secret protection. Given this situation, the Company does not believe backlog data are meaningful. We see manufacturers in China seeking to penetrate our markets. The disposal of such waste is governed by state and federal regulations. None of our employees are covered by a collective bargaining agreement. We consider our relations with our employees to be excellent. The leased facilities comprise approximately 38 thousand square feet. Annual rental payments continue at $152 thousand. & On December 26, 2020, we had approximately 2,000 shareholders. We have never paid cash dividends on our Common Stock. We provide baseplates and housings used in radar, satellite and avionics applications.& To date most of our customers remain open and operational. We expect that this volatility will continue for at least the next several quarters. CPS continues to follow CDC and OSHA guidance in our workplace. Therefore, the risk of obsolescence due to the passage of time, per se, is minimal. Often all the components in a lot are not necessary to complete the order. Gross margin in 2020 totaled $4.2 million or 20% of sales.& This compares with $2.5 million, or 12% of sales, generated during 2019. This decrease was directly associated with the decrease in revenue. & The increase was primarily due to the Company's profitability for the year. & The Company had no inventory on consignment at any customers at the end of 2019 or 2020. The agreement includes a demand note allowing the Lender to call the loan at any time.& The Company may terminate the agreement without a termination fee after 3 years.& BDC also required a $201 thousand earnings before taxes for the fourth quarter of 2020. A blanket waiver of compliance was issued by BDC for this and any other 2020 activity.& The Attleboro lease expired December 31, 2020 and has not been renewed.& & Off-Balance Sheet Arrangements We have no off-balance sheet arrangements. Accordingly, we express no such opinion. & We determined that there are no critical audit matters. & Our primary material solution is metal matrix composites.& Maintenance and repairs are charged to expense as incurred. This guarantees that the product functions as promised and meets specifications.& As of December 26, 2020 there are no products on consignment. & This cost is related to its long-term operating lease. All other short-term leases were immaterial. & The options granted to directors generally vest immediately on date of grant. & In May of 2020 this credit line was increased to $3.0 million. Recoverability
is assessed based on estimated undisc
