TransAct Technologies (TACT) 10-Q 14 Nov 22 2022 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2022	Oct. 31, 2022
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2022
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q3
Document Transition Report	false
Entity File Number	0-21121
Entity Registrant Name	TRANSACT TECHNOLOGIES INC
Entity Central Index Key	0001017303
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	06-1456680
Entity Address, Address Line One	One Hamden Center
Entity Address, Address Line Two	2319 Whitney Avenue, Suite 3B
Entity Address, City or Town	Hamden
Entity Address, State or Province	CT
Entity Address, Postal Zip Code	06518
City Area Code	203
Local Phone Number	859-6800
Title of 12(b) Security	Common stock, par value $0.01 per share
Trading Symbol	TACT
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		9,911,533

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 6,364	$ 19,457
Accounts receivable, net	13,639	7,593
Employee retention credit receivable	1,500	1,500
Inventories	11,115	7,711
Prepaid income taxes	188	137
Other current assets	984	738
Total current assets	33,790	37,136
Fixed assets, net of accumulated depreciation of $17,499 and $16,736, respectively	2,737	2,684
Right-of-use asset	2,693	2,553
Goodwill	2,621	2,621
Deferred tax assets	7,520	5,143
Intangible assets, net of accumulated amortization of $1,325 and $1,209, respectively	281	397
Other assets	297	400
Total noncurrent assets	16,149	13,798
Total assets	49,939	50,934
Current liabilities:
Current portion of revolving loan payable	2,250	0
Accounts payable	6,156	4,308
Accrued liabilities	3,998	3,894
Lease liability	827	789
Deferred revenue	1,158	805
Total current liabilities	14,389	9,796
Deferred revenue, net of current portion	164	186
Lease liability, net of current portion	1,909	1,781
Other liabilities	195	187
Total noncurrent liabilities	2,268	2,154
Total liabilities	16,657	11,950
Shareholders' equity:
Common stock, $0.01 par value, 20,000,000 shares authorized; 13,956,375 and 13,917,731 shares issued, respectively; 9,911,533 and 9,872,889 shares outstanding, respectively	139	139
Additional paid-in capital	55,995	55,246
Retained earnings	9,370	15,566
Accumulated other comprehensive (loss) income, net of tax	(112)	143
Treasury stock, at cost, 4,044,842 shares	(32,110)	(32,110)
Total shareholders' equity	33,282	38,984
Total liabilities and shareholders' equity	$ 49,939	$ 50,934

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Assets:
Fixed assets, accumulated depreciation	$ 17,499	$ 16,736
Intangible assets, accumulated amortization	$ 1,325	$ 1,209
Shareholders' equity:
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	20,000,000	20,000,000
Common stock, shares issued (in shares)	13,956,375	13,917,731
Common stock, shares outstanding (in shares)	9,911,533	9,872,889
Treasury stock (in shares)	4,044,842	4,044,842

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS [Abstract]
Net sales	$ 17,856	$ 10,637	$ 40,181	$ 28,263
Cost of sales	9,663	6,332	23,988	17,187
Gross profit	8,193	4,305	16,193	11,076
Operating expenses:
Engineering, design and product development	1,985	1,876	6,440	5,483
Selling and marketing	2,748	1,899	8,724	5,109
General and administrative	3,073	2,146	9,200	7,264
Operating expenses	7,806	5,921	24,364	17,856
Operating income (loss)	387	(1,616)	(8,171)	(6,780)
Interest and other income (expense):
Interest, net	(53)	(29)	(145)	(71)
Other, net	132	(69)	(167)	(169)
Gain on forgiveness of long-term debt	0	2,173	0	2,173
Interest and other income (expense)	79	2,075	(312)	1,933
Income (loss) before income taxes	466	459	(8,483)	(4,847)
Income tax benefit	62	442	2,287	1,629
Net income (loss)	$ 528	$ 901	$ (6,196)	$ (3,218)
Net income (loss) per common share:
Basic (in dollars per share)	$ 0.05	$ 0.1	$ (0.63)	$ (0.35)
Diluted (in dollars per share)	$ 0.05	$ 0.09	$ (0.63)	$ (0.35)
Shares used in per-share calculation:
Basic (in shares)	9,911	9,408	9,902	9,112
Diluted (in shares)	9,911	9,846	9,902	9,112

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) [Abstract]
Net income (loss)	$ 528	$ 901	$ (6,196)	$ (3,218)
Foreign currency translation adjustment, net of tax	(205)	23	(255)	108
Comprehensive income (loss)	$ 323	$ 924	$ (6,451)	$ (3,110)

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Cash flows from operating activities:
Net loss	$ (6,196)	$ (3,218)
Adjustments to reconcile net loss to net cash used in operating activities:
Share-based compensation expense	868	952
Depreciation and amortization	984	721
Deferred income taxes	(2,387)	(1,520)
Gain on the sale of fixed assets	0	(8)
Foreign currency transaction losses	165	175
Gain on forgiveness of long-term debt	0	(2,173)
Changes in operating assets and liabilities:
Accounts receivable	(6,343)	(3,124)
Inventories	(3,551)	4,677
Prepaid income taxes	(51)	(110)
Other current and long-term assets	(137)	(213)
Accounts payable	1,926	(241)
Accrued liabilities and other liabilities	508	143
Net cash used in operating activities	(14,214)	(3,939)
Cash flows from investing activities:
Capital expenditures	(955)	(804)
Proceeds from the sale of fixed assets	0	8
Collection of note receivable	0	1,598
Net cash (used in) provided by investing activities	(955)	802
Cash flows from financing activities:
Proceeds from the issuance of common stock	0	12,214
Proceeds from bank borrowings	2,250	0
Payment of common stock issuance costs	0	(867)
Proceeds from stock option exercises	0	284
Withholding taxes paid on stock issuances	(119)	(100)
Payment of bank financing costs	(69)	(31)
Net cash provided by financing activities	2,062	11,500
Effect of exchange rate changes on cash and cash equivalents	14	(64)
(Decrease) increase in cash and cash equivalents	(13,093)	8,299
Cash and cash equivalents, beginning of period	19,457	10,359
Cash and cash equivalents, end of period	$ 6,364	$ 18,658

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Treasury Stock [Member]	Accumulated Other Comprehensive Income (Loss), Net of Tax [Member]	Total
Beginning balance at Dec. 31, 2020	$ 130	$ 42,536	$ 19,607	$ (32,110)	$ (38)	$ 30,125
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock, net of issuance costs	9	11,201
Share-based compensation expense		952
Issuance of shares from exercise of stock options		284
Relinquishment of stock awards and restricted stock units to pay for withholding taxes		(100)
Net income (loss)			(3,218)			(3,218)
Foreign currency translation adjustment, net of tax					108	108
Ending balance at Sep. 30, 2021	139	54,873	16,389	(32,110)	70	$ 39,361
Supplemental share information
Issuance of common stock (in shares)						842
Issuance of shares from stock awards (in shares)						94
Relinquishment of stock awards to pay withholding taxes (in shares)						32
Beginning balance at Jun. 30, 2021	130	43,408	15,488	(32,110)	47	$ 26,963
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock, net of issuance costs	9	11,201
Share-based compensation expense		257
Issuance of shares from exercise of stock options		7
Relinquishment of stock awards and restricted stock units to pay for withholding taxes		0
Net income (loss)			901			901
Foreign currency translation adjustment, net of tax					23	23
Ending balance at Sep. 30, 2021	139	54,873	16,389	(32,110)	70	$ 39,361
Supplemental share information
Issuance of common stock (in shares)						842
Issuance of shares from stock awards (in shares)						3
Relinquishment of stock awards to pay withholding taxes (in shares)						0
Beginning balance at Dec. 31, 2021	139	55,246	15,566	(32,110)	143	$ 38,984
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock, net of issuance costs	0	0
Share-based compensation expense		868
Issuance of shares from exercise of stock options		0
Relinquishment of stock awards and restricted stock units to pay for withholding taxes		(119)
Net income (loss)			(6,196)			(6,196)
Foreign currency translation adjustment, net of tax					(255)	(255)
Ending balance at Sep. 30, 2022	139	55,995	9,370	(32,110)	(112)	$ 33,282
Supplemental share information
Issuance of common stock (in shares)						0
Issuance of shares from stock awards (in shares)						65
Relinquishment of stock awards to pay withholding taxes (in shares)						26
Beginning balance at Jun. 30, 2022	139	55,708	8,842	(32,110)	93	$ 32,672
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock, net of issuance costs	0	0
Share-based compensation expense		287
Issuance of shares from exercise of stock options		0
Relinquishment of stock awards and restricted stock units to pay for withholding taxes		0
Net income (loss)			528			528
Foreign currency translation adjustment, net of tax					(205)	(205)
Ending balance at Sep. 30, 2022	$ 139	$ 55,995	$ 9,370	$ (32,110)	$ (112)	$ 33,282
Supplemental share information
Issuance of common stock (in shares)						0
Issuance of shares from stock awards (in shares)						2
Relinquishment of stock awards to pay withholding taxes (in shares)						0

Basis of presentation

Basis of presentation	9 Months Ended
	Sep. 30, 2022
Basis of presentation [Abstract]
Basis of presentation	1. Basis of presentation The . The Condensed Consolidated Balance Sheet data was derived from audited financial statements, but does not include all disclosures required by U.S. GAAP. These interim financial statements should be read in conjunction with the audited financial statements in our Annual Report on Form 10-K for the year ended . The financial position and results of operations of our U.K. subsidiary are measured using the local currency as the functional currency. Assets and liabilities of such subsidiary have been translated at the end-of-period exchange rates, and related revenues and expenses have been translated at the exchange rate as of the date the transaction was recognized, with the resulting translation gain or loss recorded in “Accumulated other comprehensive income (loss), net of tax” in the Condensed Consolidated Balance Sheets and “Accumulated other comprehensive income (loss), net of tax” in the Condensed Consolidated Statements of Changes in Shareholders’ Equity. Transaction gains and losses are included in “Other, net” in the Condensed Consolidated Statements of Operations. The results of operations for the three and nine months ended September 30, 2022 are not necessarily indicative of the results to be expected for the full year ending December 31, 2022. See Note 9 for a discussion of a change in accounting principle which occurred in the second quarter of 2022. TransAct changed its method of inventory valuation from standard costing which approximates first-in first-out (“FIFO”) to the average costing methodology. All prior periods presented have been retrospectively adjusted to apply the new method of accounting. Certain prior period amounts have been adjusted to conform with the current year presentation. Impact of the COVID-19 pandemic and Global Supply Chain Disruptions Since early 2020, the COVID-19 pandemic has continued to cause uncertainty and disruption in the global economy and financial markets, such as increased shipping and logistics costs and supply chain disruptions. We have also been impacted by global supply chain issues and inflationary pressures, which have increased our costs and, in some instances, slowed our ability to deliver products to customers. During 2021, our inventory levels decreased significantly as a result of these supply chain disruptions and we experienced significantly lower sales levels because of the global economic slowdown. However, during the first nine months of 2022, we have been able to increase our inventory levels and minimize the impact to our customers by successfully modifying our products that were affected by supply chain disruptions as well as sourcing component parts from alternate suppliers. This strategy allowed us to meet expanding customer demands and significantly grow our sales after the first quarter of 2022 as the pandemic eased. Although we have been able to increase inventory levels during the first nine months of 2022, there can be no assurance that new supply chain disruptions will not affect our products or that we will be able to make timely modifications to address any future supply chain issues that arise. Further, while we have offset most of our cost increases by increasing prices of our products, there can be no guarantee that we will be able to offset any future cost increases should they arise. After a slowdown in the first quarter of 2022 resulting from the Omicron and other variants of COVID-19, we have continued to experience demand recovery in the second and third quarters of 2022. We expect this recovery to continue during the remainder of 2022. Balance Sheet, Cash Flow and Liquidity. We have taken the following actions to increase liquidity and strengthen our financial position in an effort to mitigate the negative impacts from the COVID pandemic, supply chain disruptions and inflationary pressures: ● Public Offering – On October 16, 2020 and August 16, 2021, the Company raised net proceeds of $ million and $ million ( ), respectively, after deducting underwriting discounts, commissions and offering expenses, through underwritten public offerings in which we sold an aggregate of and shares of common stock, respectively. ● PPP Loan – On May 1, 2020, the Company was granted a $2.2 million loan (the “PPP Loan”) under the Paycheck Protection Program (the “PPP”) administered by the Small Business Administration (“SBA”) established under Division A, Title I of the Coronavirus Aid, Relief, and Economic Security (“CARES Act”). On July 8, 2021, we received notice that the PPP Loan had been forgiven as of July 1, 2021. See Note 5 for further details regarding the PPP Loan. ● Employee Retention Credit – Under the provisions of the CARES Act, the Company was eligible for a refundable employee retention credit subject to certain criteria. In connection with the CARES Act, the Company recognized the employee retention credit during the fourth quarter of 2021 as a $1.5 million “Gain from employee retention credit” in the Consolidated Statement of Operations for the year ended December 31, 2021 and recorded a $1.5 million “Employee retention credit receivable” in the Condensed Consolidated Balance Sheets as of September 30, 2022 and December 31, 2021. We expect to receive these funds within the next twelve months. ● Credit Facility – On March 13, 2020, we entered into a new credit facility with Siena Lending Group LLC (the “Lender”) that provides a revolving credit line of up to $10.0 million, subject to a borrowing base, and on July 19, 2022, we entered into an amendment to extend the maturity of the facility to March 13, 2025. See Note 5 for further details regarding this facility. ● Reduced Capital Expenditures – We limited capital expenditures during 2020 and 2021 and are gradually increasing expenditures during 2022 as sales improve. After reviewing whether conditions and/or events raise substantial doubt about our ability to meet future financial obligations over the 12 months following the issuance date of the Condensed Consolidated Financial Statements included in this Quarterly Report on Form 10-Q (this “Form 10-Q”), including consideration of the actions taken to manage expenses and liquidity, we believe that our net cash to be provided by operations combined with our cash and cash equivalents and borrowing availability under our revolving credit facility will provide sufficient liquidity to fund our current obligations, capital spending, and working capital requirements and to comply with the financial covenants of our credit facility over at least 12 months following such issuance date. Use of Assumptions and Estimates Management’s belief that the Company will be able to fund its planned operations over the 12 months following the date on which the Condensed Consolidated Financial Statements were issued is based on assumptions which involve significant judgment and estimates of future revenues, inflation, rising interest rates, capital expenditures and other operating costs. Our current assumptions are that casinos and restaurants will remain open and consumer traffic will continue to increase during the balance of 2022. Though demand for our products at casinos has increased substantially in 2022, and we expect this trend to continue, we cannot predict the ultimate impact of the current economic environment, including inflation, rising interest rates and supply chain disruptions on our customers, which may impact sales. We believe that we are positioned to withstand the impact of any potential economic downturn or slower than anticipated economic recovery. However, despite our recent large backlog of orders and increasing market share, should such conditions arise, we believe we will be able to take additional financial and operational actions to cut costs and/or increase liquidity. In addition, the presentation of the accompanying unaudited financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenue and expenses, and the disclosure of contingent assets and liabilities. Our estimates include those related to revenue recognition, accounts receivable, inventory obsolescence, goodwill and intangible assets, the valuation of deferred tax assets and liabilities, depreciable lives of equipment, warranty obligations, share-based compensation and contingent liabilities. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances. Actual results could differ from those estimates used. For a discussion of our significant accounting policies, see Note 2, Summary of Significant Accounting Policies

Revenue

Revenue	9 Months Ended
	Sep. 30, 2022
Revenue [Abstract]
Revenue	2. Revenue We account for revenue in accordance with ASC Topic 606: Revenue from Contracts with Customers. Disaggregation of revenue The following tables disaggregate our revenue by market type, as we believe it best depicts how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors. Sales and usage-based taxes are excluded from revenues. Three Months Ended September 30, 2022 2021 (In thousands) United States International Total United States International Total Food service technology $ 3,496 $ 252 $ 3,748 $ 3,065 $ 217 $ 3,282 POS automation 5,228 – 5,228 1,188 – 1,188 Casino and gaming 3,758 3,985 7,743 2,656 1,380 4,036 Printrex – – – – 160 160 TransAct Services Group 983 154 1,137 1,856 115 1,971 Total net sales $ 13,465 $ 4,391 $ 17,856 $ 8,765 $ 1,872 $ 10,637 Nine Months Ended September 30, 2022 2021 (In thousands) United States International Total United States International Total Food service technology $ 8,723 $ 587 $ 9,310 $ 8,616 $ 487 $ 9,103 POS automation 7,700 – 7,700 3,600 8 3,608 Casino and gaming 10,475 8,555 19,030 7,058 3,310 10,368 Printrex – – – 52 379 431 TransAct Services Group 3,396 745 4,141 4,388 365 4,753 Total net sales $ 30,294 $ 9,887 $ 40,181 $ 23,714 $ 4,549 $ 28,263 Contract balances Contract assets consist of unbilled receivables. Pursuant to the over-time revenue recognition model, revenue may be recognized prior to the customer being invoiced. An unbilled receivable is recorded to reflect revenue that is recognized when such revenue exceeds the amount invoiced to the customer. Unbilled receivables are separated into current and non-current assets and included within “Accounts receivable, net” and “Other assets” in non-current assets in the Condensed Consolidated Balance Sheets. Contract liabilities consist of customer pre-payments and deferred revenue. Customer prepayments are reported as “Accrued liabilities” in current liabilities in the Condensed Consolidated Balance Sheets and represent customer payments made in advance of performance obligations in instances where credit has not been extended and are recognized as revenue when the performance obligation is complete. Deferred revenue is reported separately in current liabilities and non-current liabilities and consists of our extended warranty contracts, technical support for our food service technology terminals, EPICENTRAL® maintenance contracts and prepaid software subscriptions for our BOHA! software applications and is recognized as revenue as (or when) we perform under the contract. For the months ended , we recognized revenue of $ million related to our contract liabilities at . Total net contract liabilities consisted of the following: September 30, 2022 December 31, 2021 (In thousands) Unbilled receivables, current $ 393 $ 314 Unbilled receivables, non-current 196 308 Customer pre-payments (221 ) (99 ) Deferred revenue, current (1,158 ) (805 ) Deferred revenue, non-current (164 ) (186 ) Total net contract liabilities $ (954 ) $ (468 ) Remaining performance obligations Remaining performance obligations represent the transaction price of firm orders for which a good or service has not been delivered to our customer. As of September 30, 2022, the aggregate amount of transaction prices allocated to remaining performance obligations was $19.0 million. The Company expects to recognize revenue of $18.5 million of its remaining performance obligations within the next 12 months following September 30, 2022, $0.4 million within the next 24 months balance 36 months

Inventories

Inventories	9 Months Ended
	Sep. 30, 2022
Inventories [Abstract]
Inventories	3. Inventories The components of inventories were: September 30, 2022 December 31, 2021 (In thousands) Raw materials and purchased component parts $ 10,183 $ 6,470 Work-in-process – 11 Finished goods 932 1,230 $ 11,115 $ 7,711

Accrued product warranty liabil

Accrued product warranty liability	9 Months Ended
	Sep. 30, 2022
Accrued product warranty liability [Abstract]
Accrued product warranty liability	4. Accrued product warranty liability We generally provide hardware warranties on our products for up to 24 months and record the estimated cost of such product warranties at the time the sale is recorded. Estimated warranty costs are based upon actual past experience of product repairs and the related estimated cost of labor and material to make the necessary repairs. The following table summarizes the activity recorded in the accrued product warranty liability during the nine months ended September 30, 2022 and 2021: Nine Months Ended September 30, 2022 2021 (In thousands) Balance, beginning of period $ 101 $ 140 Warranties issued 40 39 Warranty settlements (64 ) (70 ) Balance, end of period $ 77 $ 109 As of September 30, 2022, $57 thousand of the accrued product warranty liability was classified as current in “Accrued liabilities” in the Condensed Consolidated Balance Sheet and the remaining $20 thousand was classified as non-current in “Other liabilities”.

Debt

Debt	9 Months Ended
	Sep. 30, 2022
Debt [Abstract]
Debt	5. Debt Credit Facility On March 13, 2020, we entered into a credit facility (the “Siena Credit Facility”) with the Lender and terminated our credit facility with TD Bank, N.A. The Siena Credit Facility provides for a revolving credit line of up to $10.0 million and was originally scheduled to expire on March 13, 2023. Borrowings under the Siena Credit Facility bear a floating rate of interest equal to the greatest of (i) the prime rate plus 1.75%, (ii) the federal funds rate plus 2.25%, and (iii) 6.50%. The total deferred financing costs related to expenses incurred to complete the Siena Credit Facility was $245 thousand, which were reported as “Other current assets” in current assets and “Other assets” in non-current assets in the Condensed Consolidated Balance Sheets. We also pay a fee of 0.50% on unused borrowings under the Siena Credit Facility. Borrowings under the Siena Credit Facility are secured by a lien on substantially all the assets of the Company. The Siena Credit Facility imposes a financial covenant on the Company and borrowings are subject to a borrowing base based on (i) 85% of eligible accounts receivable plus the lesser of (a) $5.0 million and (b) 50% of eligible raw material and 60% of finished goods inventory and restricts, among other things, our ability to incur additional indebtedness and create other liens. The three-month period from April 1, 2020 to June 30, 2020 was the first period we were subject to the original financial covenant, which required the Company to maintain a minimum EBITDA and continued through the 12-month period from April 1, 2020 to March 31, 2021. On July 21, 2021, the Company entered into an amendment (“Siena Credit Facility Amendment No. 1”) to the Siena Credit Facility. Siena Credit Facility Amendment No. 1 changed the financial covenant under the Siena Credit Facility from a minimum EBITDA covenant to an excess availability covenant requiring that the Company maintain excess availability of at least $750 thousand under the Siena Credit Facility, tested as of the end of each calendar month, beginning with the calendar month ending July 31, 2021. From July 31, 2021 to September 30, 2022, we remained in compliance with our excess availability covenant. As of September 30, 2022, we had $2.3 million of outstanding borrowings under the Siena Credit Facility and $2.5 million of net borrowing capacity available under the Siena Credit Facility. On July 19, 2022, the Company and the Lender entered into Amendment No. 2 (“Siena Credit Facility Amendment No. 2”) to the Siena Credit Facility, as amended by Siena Credit Facility Amendment No. 1. Also on July 19, 2022, the Company and the Lender entered into an Amended and Restated Fee Letter (the “Amended Fee Letter”) in connection with the Siena Credit Facility Amendment No. 2. The Siena Credit Facility Amendment No. 2 did not modify the aggregate amount of the revolving commitment or the interest rate applicable to the loans . The changes to the Siena Credit Facility provided for in Siena Credit Facility Amendment No. 2 include, among other things, the following: (i) The extension of the maturity date from March 13, 2023 to March 13, 2025; and (ii) The termination of the existing blocked account control agreement and entry into a new “springing” deposit account control agreement, permitting the Company to direct the use of funds in its deposit account until such time as (a) the sum of excess availability under Siena Credit Facility (as amended) and unrestricted cash is less than $5 million for 3 consecutive business days or (b) an event of default occurs and is continuing. In addition, the Amended Fee Letter requires the Company, while it retains the ability to direct the use of funds in the deposit account, to maintain outstanding borrowings of at least $2,250,000 in principal amount. If the Company does not have the ability to direct the use of funds in the deposit account, then the Amended Fee Letter requires the Company to pay interest on at least $2,250,000 principal amount of loans, whether or not such amount of loans is actually outstanding. PPP Loan On May 1, 2020, the Company was granted the PPP Loan from Berkshire Bank in the aggregate amount of $ million, pursuant to the PPP. On July 8, 2021, the Company received notifications from Berkshire Bank and the SBA that the PPP Loan (including all interest accrued thereon) of $2.2 million had been fully forgiven by the SBA and that the forgiveness payment date was July 1, 2021. The forgiveness of the PPP Loan was reported as “Gain on forgiveness of long-term debt” in the Consolidated Statement of Operations during the year ended December 31, 2021.

Earnings per share

Earnings per share	9 Months Ended
	Sep. 30, 2022
Earnings per share [Abstract]
Earnings per share	6. Earnings per share The following table sets forth the reconciliation of basic weighted average shares outstanding and diluted weighted average shares outstanding (as adjusted, See Note 9): Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 (In thousands, except per share data) Net income (loss) $ 528 $ 901 $ (6,196 ) $ (3,218 ) Shares: Basic: Weighted average common shares outstanding 9,911 9,408 9,902 9,112 Add: Dilutive effect of outstanding options and restricted stock units as determined by the treasury stock method – 438 – – Diluted: Weighted average common and common equivalent shares outstanding 9,911 9,846 9,902 9,112 Net income (loss) per common share: Basic $ 0.05 $ 0.10 $ (0.63 ) $ (0.35 ) Diluted $ 0.05 $ 0.09 $ (0.63 ) $ (0.35 ) The computation of diluted earnings per share excludes the effect of the potential exercise of stock awards, including stock options and restricted stock units, when the average market price of the common stock is lower than the exercise price of the related stock award during the period, as the inclusion of these stock awards in the computation of diluted earnings would be anti-dilutive. For the three months ended and , there were million and million, respectively, of potentially dilutive shares consisting of stock awards that were excluded from the calculation of earnings per diluted share. For the and , there were million and million, respectively, of potentially dilutive shares consisting of stock awards that were excluded from the calculation of earnings per diluted share. In periods for which For the three months ended September 30, 2022, the d ilutive effect of outstanding options and restricted stock units, as determined by the treasury stock method, one

Leases

Leases	9 Months Ended
	Sep. 30, 2022
Leases [Abstract]
Leases	7. Leases We account for leases in accordance with ASC Topic 842: Leases. We enter into lease agreements for the use of real estate space and certain equipment under operating leases and we have no financing leases. Our leases are included in “Right-of-use-assets” and “Lease liabilities” in our Condensed Consolidated Balance Sheets. Our leases have remaining lease terms of two On April 30, 2021, we entered into an amendment to modify the expiration date of our lease on our Hamden, Connecticut facility. . On April 26, 2022, we entered into an amendment to modify the expiration date of our lease on our Las Vegas, Nevada facility. The lease was set to expire on November 1, 2022 and the amendment extended the lease term to November 30, 2025. The lease amendment resulted in an increase to the right-of-use-asset and lease liability of $0.8 million . The lease amendment modified the base rent and extended the lease term from October 31, 2022 to November 30, 2025. Operating lease expense for the three months ended September 30, 2022 and 2021 was $261 thousand and $235 thousand, respectively, and is reported as “Cost of sales”, “Engineering, design and product development expense”, “Selling and marketing expense”, and “General and administrative expense” in the Condensed Consolidated Statements of Operations. Operating lease expense for the nine months ended September 30, 2022 and 2021 was $748 thousand and $717 thousand, respectively. Operating lease expenses include short-term lease costs, which were immaterial during the periods presented. The following information represents supplemental disclosure for the statement of cash flows related to operating leases (in thousands): Nine Months Ended September 30, 2022 2021 Operating cash outflows from leases $ 617 $ 750 The following summarizes additional information related to our leases as of September 30, 2022 and December 31, 2021: September 30, 2022 December 31, 2021 Weighted average remaining lease term (in years) 3.0 3.5 Weighted average discount rate 4.5 % 4.4 % The maturity of the Company’s operating lease liabilities as of September 30, 2022 and December 31, 2021 were as follows (in thousands): September 30, 2022 December 31, 2021 2022 $ 218 $ 886 2023 968 721 2024 1,019 721 2025 707 426 2026 19 23 Total undiscounted lease payments 2,931 2,777 Less imputed interest 195 207 Total lease liabilities $ 2,736 $ 2,570

Income taxes

Income taxes	9 Months Ended
	Sep. 30, 2022
Income taxes [Abstract]
Income taxes	8. Income taxes We recorded an income tax benefit for the third quarter of 2022 of $62 thousand at an effective tax rate of (13.3%), compared to an income tax benefit for the third quarter of 2021 of $442 thousand at an effective tax rate of (96.3%). For the nine months ended September 30, 2022, we recorded an income tax benefit of $2.3 million at an effective tax rate of (27.0%), compared to an income tax benefit for the nine months ended September 30, 2021 of $1.6 million at an effective tax rate of (33.6%). We are subject to U.S. federal income tax, as well as income tax in certain U.S. states and foreign jurisdictions. We have substantially concluded all U.S. federal, state and local income tax, and foreign tax regulatory examination matters through 2018. However, our federal tax returns from 2019 through 2021 remain open to examination. Various state and foreign tax jurisdiction tax years remain open to examination as well, though we believe that any additional assessment would be immaterial to the Condensed Consolidated Financial Statements. As of , we had $ thousand of total gross unrecognized tax benefits that, if recognized, would favorably affect the effective income tax rate in future periods. We recognize interest and penalties related to uncertain tax positions in the income tax provision. As of September 30, 2022, we had $20 thousand of accrued interest and penalties related to uncertain tax positions. Management evaluates all jurisdictions based on historical pre-tax earnings and taxable income to determine the need for valuation allowances on a quarterly basis. The three months ended September 30, 2022 benefitted from the remeasurement of our deferred tax asset valuation allowance associated with our operations in the United Kingdom. Based on this analysis, we currently have no valuation allowances recorded for any jurisdiction.

Change in accounting principle

Change in accounting principle	9 Months Ended
	Sep. 30, 2022
Change in accounting principle [Abstract]
Change in accounting principle	9. Change in accounting principle Effective April 1, 2022, TransAct changed its method of inventory valuation from standard costing which approximates FIFO to the average costing methodology. We believe this methodology is preferable because it reflects a better estimate of inventory cost as we do not typically perform intensive manufacturing of our finished products, which are therefore better measured under average cost. In addition, our business is projected to include an increasing sales volume of software going forward, which better aligns with average costing. Comparative financial statements of prior periods have been adjusted to apply the new method retrospectively. Tax effects are calculated at the Company’s marginal tax rate, or the tax impact of incremental income changes rather than the average tax rate applied to our total net loss before income taxes. The following financial statement line items for the periods presented were impacted by the change in accounting principle. The effect of the changes made to the Company’s Condensed Consolidated Balance Sheets for the periods presented are as follows: December 31, 2021 Under FIFO Cost Under Average Cost Effect of Change Inventories $ 7,720 $ 7,711 $ (9 ) Deferred tax assets 5,141 5,143 2 Retained earnings 15,573 15,566 (7 ) The ending balance in retained earnings as of December 31, 2020 was adjusted from $19,718 to $19,607. The effect of the changes made to the Company’s Condensed Consolidated Statements of Operations for the periods presented are as follows: Three months ended September 30, 2021 Nine months ended September 30, 2021 Under FIFO Cost Under Average Cost Effect of Change Under FIFO Cost Under Average Cost Effect of Change Cost of sales $ 6,320 $ 6,332 $ 12 $ 17,432 $ 17,187 $ (245 ) Gross profit 4,317 4,305 (12 ) 10,831 11,076 245 Operating loss (1,604 ) (1,616 ) (12 ) (7,025 ) (6,780 ) 245 Income (loss) before income taxes 471 459 (12 ) (5,092 ) (4,847 ) 245 Income tax benefit 439 442 3 1,682 1,629 (53 ) Net income (loss) 910 901 (9 ) (3,410 ) (3,218 ) 192 Net income (loss) per common share: Basic $ 0.10 $ 0.10 $ – $ (0.37 ) $ (0.35 ) $ 0.02 Diluted $ 0.09 $ 0.09 $ – $ (0.37 ) $ (0.35 ) $ 0.02 Shares used in per-share calculation: Basic 9,408 9,408 9,112 9,112 Diluted 9,846 9,846 9,112 9,112 The effect of the changes made to the Company’s Condensed Consolidated Statements of Comprehensive Income (loss) for the periods presented are as follows: Three months ended September 30, 2021 Nine months ended September 30, 2021 Under FIFO Cost Under Average Cost Effect of Change Under FIFO Cost Under Average Cost Effect of Change Net income (loss) $ 910 $ 901 $ (9 ) $ (3,410 ) $ (3,218 ) $ 192 Comprehensive income (loss) 933 924 (9 ) (3,302 ) (3,110 ) 192 The effect of the changes made to the Company’s Condensed Consolidated Statements of Cash Flows for the periods presented are as follows: Nine months ended September 30, 2021 Under FIFO Cost Under Average Cost Effect of Change Net loss $ (3,410 ) $ (3,218 ) $ 192 Deferred income taxes (1,573 ) (1,520 ) 53 Inventories 4,922 4,677 (245 ) The effect of the changes made to the Company’s Condensed Consolidated Statements of Changes in Shareholders’ Equity for the periods presented are as follows: Three months ended September 30, 2021 Nine months ended September 30, 2021 Under FIFO Cost Under Average Cost Effect of Change Under FIFO Cost Under Average Cost Effect of Change Equity beginning balance $ 26,873 $ 26,963 $ 90 $ 30,236 $ 30,125 $ (111 ) Retained earnings -- beginning of period 15,398 15,488 90 19,718 19,607 (111 ) Net income (loss) 910 901 (9 ) (3,410 ) (3,218 ) 192 Retained earnings -- end of period 16,308 16,389 81 16,308 16,389 81 Equity ending balance 39,280 39,361 81 39,280 39,361 81

Subsequent events

Subsequent events	9 Months Ended
	Sep. 30, 2022
Subsequent events [Abstract]
Subsequent events	10. Subsequent events The Company has evaluated all events or transactions that occurred up to the date the Condensed Consolidated Financial Statements were issued. Based upon this review, the Company did not identify subsequent events that would have required adjustment or disclosure in the Condensed Consolidated Financial Statements.

Basis of presentation (Policies

Basis of presentation (Policies)	9 Months Ended
	Sep. 30, 2022
Basis of presentation [Abstract]
Basis of Accounting	The . The Condensed Consolidated Balance Sheet data was derived from audited financial statements, but does not include all disclosures required by U.S. GAAP. These interim financial statements should be read in conjunction with the audited financial statements in our Annual Report on Form 10-K for the year ended .
Foreign Currency Translation	The financial position and results of operations of our U.K. subsidiary are measured using the local currency as the functional currency. Assets and liabilities of such subsidiary have been translated at the end-of-period exchange rates, and related revenues and expenses have been translated at the exchange rate as of the date the transaction was recognized, with the resulting translation gain or loss recorded in “Accumulated other comprehensive income (loss), net of tax” in the Condensed Consolidated Balance Sheets and “Accumulated other comprehensive income (loss), net of tax” in the Condensed Consolidated Statements of Changes in Shareholders’ Equity. Transaction gains and losses are included in “Other, net” in the Condensed Consolidated Statements of Operations.
Use of Assumptions and Estimates	Use of Assumptions and Estimates Management’s belief that the Company will be able to fund its planned operations over the 12 months following the date on which the Condensed Consolidated Financial Statements were issued is based on assumptions which involve significant judgment and estimates of future revenues, inflation, rising interest rates, capital expenditures and other operating costs. Our current assumptions are that casinos and restaurants will remain open and consumer traffic will continue to increase during the balance of 2022. Though demand for our products at casinos has increased substantially in 2022, and we expect this trend to continue, we cannot predict the ultimate impact of the current economic environment, including inflation, rising interest rates and supply chain disruptions on our customers, which may impact sales. We believe that we are positioned to withstand the impact of any potential economic downturn or slower than anticipated economic recovery. However, despite our recent large backlog of orders and increasing market share, should such conditions arise, we believe we will be able to take additional financial and operational actions to cut costs and/or increase liquidity. In addition, the presentation of the accompanying unaudited financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenue and expenses, and the disclosure of contingent assets and liabilities. Our estimates include those related to revenue recognition, accounts receivable, inventory obsolescence, goodwill and intangible assets, the valuation of deferred tax assets and liabilities, depreciable lives of equipment, warranty obligations, share-based compensation and contingent liabilities. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances. Actual results could differ from those estimates used.

Revenue (Tables)

Revenue (Tables)	9 Months Ended
	Sep. 30, 2022
Revenue [Abstract]
Disaggregation of Revenue	The following tables disaggregate our revenue by market type, as we believe it best depicts how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors. Sales and usage-based taxes are excluded from revenues. Three Months Ended September 30, 2022 2021 (In thousands) United States International Total United States International Total Food service technology $ 3,496 $ 252 $ 3,748 $ 3,065 $ 217 $ 3,282 POS automation 5,228 – 5,228 1,188 – 1,188 Casino and gaming 3,758 3,985 7,743 2,656 1,380 4,036 Printrex – – – – 160 160 TransAct Services Group 983 154 1,137 1,856 115 1,971 Total net sales $ 13,465 $ 4,391 $ 17,856 $ 8,765 $ 1,872 $ 10,637 Nine Months Ended September 30, 2022 2021 (In thousands) United States International Total United States International Total Food service technology $ 8,723 $ 587 $ 9,310 $ 8,616 $ 487 $ 9,103 POS automation 7,700 – 7,700 3,600 8 3,608 Casino and gaming 10,475 8,555 19,030 7,058 3,310 10,368 Printrex – – – 52 379 431 TransAct Services Group 3,396 745 4,141 4,388 365 4,753 Total net sales $ 30,294 $ 9,887 $ 40,181 $ 23,714 $ 4,549 $ 28,263
Net Contract Liabilities	Total net contract liabilities consisted of the following: September 30, 2022 December 31, 2021 (In thousands) Unbilled receivables, current $ 393 $ 314 Unbilled receivables, non-current 196 308 Customer pre-payments (221 ) (99 ) Deferred revenue, current (1,158 ) (805 ) Deferred revenue, non-current (164 ) (186 ) Total net contract liabilities $ (954 ) $ (468 )

Inventories (Tables)

Inventories (Tables)	9 Months Ended
	Sep. 30, 2022
Inventories [Abstract]
Inventories	The components of inventories were: September 30, 2022 December 31, 2021 (In thousands) Raw materials and purchased component parts $ 10,183 $ 6,470 Work-in-process – 11 Finished goods 932 1,230 $ 11,115 $ 7,711

Accrued product warranty liab_2

Accrued product warranty liability (Tables)	9 Months Ended
	Sep. 30, 2022
Accrued product warranty liability [Abstract]
Product Warranty Liability	The following table summarizes the activity recorded in the accrued product warranty liability during the nine months ended September 30, 2022 and 2021: Nine Months Ended September 30, 2022 2021 (In thousands) Balance, beginning of period $ 101 $ 140 Warranties issued 40 39 Warranty settlements (64 ) (70 ) Balance, end of period $ 77 $ 109

Earnings per share (Tables)

Earnings per share (Tables)	9 Months Ended
	Sep. 30, 2022
Earnings per share [Abstract]
Earnings per Share	The following table sets forth the reconciliation of basic weighted average shares outstanding and diluted weighted average shares outstanding (as adjusted, See Note 9): Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 (In thousands, except per share data) Net income (loss) $ 528 $ 901 $ (6,196 ) $ (3,218 ) Shares: Basic: Weighted average common shares outstanding 9,911 9,408 9,902 9,112 Add: Dilutive effect of outstanding options and restricted stock units as determined by the treasury stock method – 438 – – Diluted: Weighted average common and common equivalent shares outstanding 9,911 9,846 9,902 9,112 Net income (loss) per common share: Basic $ 0.05 $ 0.10 $ (0.63 ) $ (0.35 ) Diluted $ 0.05 $ 0.09 $ (0.63 ) $ (0.35 )

Leases (Tables)

Leases (Tables)	9 Months Ended
	Sep. 30, 2022
Leases [Abstract]
Cash Flows for Operating Leases	The following information represents supplemental disclosure for the statement of cash flows related to operating leases (in thousands): Nine Months Ended September 30, 2022 2021 Operating cash outflows from leases $ 617 $ 750
Additional Information Related to Leases	The following summarizes additional information related to our leases as of September 30, 2022 and December 31, 2021: September 30, 2022 December 31, 2021 Weighted average remaining lease term (in years) 3.0 3.5 Weighted average discount rate 4.5 % 4.4 %
Maturity of Operating Lease Liabilities	The maturity of the Company’s operating lease liabilities as of September 30, 2022 and December 31, 2021 were as follows (in thousands): September 30, 2022 December 31, 2021 2022 $ 218 $ 886 2023 968 721 2024 1,019 721 2025 707 426 2026 19 23 Total undiscounted lease payments 2,931 2,777 Less imputed interest 195 207 Total lease liabilities $ 2,736 $ 2,570

Change in accounting principle

Change in accounting principle (Tables)	9 Months Ended
	Sep. 30, 2022
Change in accounting principle [Abstract]
Financial Statement Line Items Impacted by Change in Accounting Principle	The effect of the changes made to the Company’s Condensed Consolidated Balance Sheets for the periods presented are as follows: December 31, 2021 Under FIFO Cost Under Average Cost Effect of Change Inventories $ 7,720 $ 7,711 $ (9 ) Deferred tax assets 5,141 5,143 2 Retained earnings 15,573 15,566 (7 ) The ending balance in retained earnings as of December 31, 2020 was adjusted from $19,718 to $19,607. The effect of the changes made to the Company’s Condensed Consolidated Statements of Operations for the periods presented are as follows: Three months ended September 30, 2021 Nine months ended September 30, 2021 Under FIFO Cost Under Average Cost Effect of Change Under FIFO Cost Under Average Cost Effect of Change Cost of sales $ 6,320 $ 6,332 $ 12 $ 17,432 $ 17,187 $ (245 ) Gross profit 4,317 4,305 (12 ) 10,831 11,076 245 Operating loss (1,604 ) (1,616 ) (12 ) (7,025 ) (6,780 ) 245 Income (loss) before income taxes 471 459 (12 ) (5,092 ) (4,847 ) 245 Income tax benefit 439 442 3 1,682 1,629 (53 ) Net income (loss) 910 901 (9 ) (3,410 ) (3,218 ) 192 Net income (loss) per common share: Basic $ 0.10 $ 0.10 $ – $ (0.37 ) $ (0.35 ) $ 0.02 Diluted $ 0.09 $ 0.09 $ – $ (0.37 ) $ (0.35 ) $ 0.02 Shares used in per-share calculation: Basic 9,408 9,408 9,112 9,112 Diluted 9,846 9,846 9,112 9,112 The effect of the changes made to the Company’s Condensed Consolidated Statements of Comprehensive Income (loss) for the periods presented are as follows: Three months ended September 30, 2021 Nine months ended September 30, 2021 Under FIFO Cost Under Average Cost Effect of Change Under FIFO Cost Under Average Cost Effect of Change Net income (loss) $ 910 $ 901 $ (9 ) $ (3,410 ) $ (3,218 ) $ 192 Comprehensive income (loss) 933 924 (9 ) (3,302 ) (3,110 ) 192 The effect of the changes made to the Company’s Condensed Consolidated Statements of Cash Flows for the periods presented are as follows: Nine months ended September 30, 2021 Under FIFO Cost Under Average Cost Effect of Change Net loss $ (3,410 ) $ (3,218 ) $ 192 Deferred income taxes (1,573 ) (1,520 ) 53 Inventories 4,922 4,677 (245 ) The effect of the changes made to the Company’s Condensed Consolidated Statements of Changes in Shareholders’ Equity for the periods presented are as follows: Three months ended September 30, 2021 Nine months ended September 30, 2021 Under FIFO Cost Under Average Cost Effect of Change Under FIFO Cost Under Average Cost Effect of Change Equity beginning balance $ 26,873 $ 26,963 $ 90 $ 30,236 $ 30,125 $ (111 ) Retained earnings -- beginning of period 15,398 15,488 90 19,718 19,607 (111 ) Net income (loss) 910 901 (9 ) (3,410 ) (3,218 ) 192 Retained earnings -- end of period 16,308 16,389 81 16,308 16,389 81 Equity ending balance 39,280 39,361 81 39,280 39,361 81

Basis of presentation (Details)

Basis of presentation (Details) - USD ($) $ in Thousands			3 Months Ended		9 Months Ended		12 Months Ended
	Aug. 16, 2021	Oct. 16, 2020	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021	May 01, 2020	Mar. 13, 2020
Basis of presentation [Abstract]
Proceeds from Public Offering	$ 11,200	$ 8,700			$ 0	$ 12,214
Shares sold in Public Offering (in shares)	842,375	1,380,000	0	842,000	0	842,000
Basis of presentation [Abstract]
Gain from employee retention credit							$ 1,500
Employee retention credit receivable			$ 1,500		$ 1,500		$ 1,500
PPP Loan [Member]
Basis of presentation [Abstract]
Face amount								$ 2,200
Sienna Credit Facility [Member]
Basis of presentation [Abstract]
Maximum borrowing capacity									$ 10,000

Revenue, Disaggregation of Reve

Revenue, Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Disaggregation of revenue [Abstract]
Net sales	$ 17,856	$ 10,637	$ 40,181	$ 28,263
United States [Member]
Disaggregation of revenue [Abstract]
Net sales	13,465	8,765	30,294	23,714
International [Member]
Disaggregation of revenue [Abstract]
Net sales	4,391	1,872	9,887	4,549
Food Service Technology [Member]
Disaggregation of revenue [Abstract]
Net sales	3,748	3,282	9,310	9,103
Food Service Technology [Member] | United States [Member]
Disaggregation of revenue [Abstract]
Net sales	3,496	3,065	8,723	8,616
Food Service Technology [Member] | International [Member]
Disaggregation of revenue [Abstract]
Net sales	252	217	587	487
POS Automation [Member]
Disaggregation of revenue [Abstract]
Net sales	5,228	1,188	7,700	3,608
POS Automation [Member] | United States [Member]
Disaggregation of revenue [Abstract]
Net sales	5,228	1,188	7,700	3,600
POS Automation [Member] | International [Member]
Disaggregation of revenue [Abstract]
Net sales	0	0	0	8
Casino and Gaming [Member]
Disaggregation of revenue [Abstract]
Net sales	7,743	4,036	19,030	10,368
Casino and Gaming [Member] | United States [Member]
Disaggregation of revenue [Abstract]
Net sales	3,758	2,656	10,475	7,058
Casino and Gaming [Member] | International [Member]
Disaggregation of revenue [Abstract]
Net sales	3,985	1,380	8,555	3,310
Printrex [Member]
Disaggregation of revenue [Abstract]
Net sales	0	160	0	431
Printrex [Member] | United States [Member]
Disaggregation of revenue [Abstract]
Net sales	0	0	0	52
Printrex [Member] | International [Member]
Disaggregation of revenue [Abstract]
Net sales	0	160	0	379
TransAct Services Group [Member]
Disaggregation of revenue [Abstract]
Net sales	1,137	1,971	4,141	4,753
TransAct Services Group [Member] | United States [Member]
Disaggregation of revenue [Abstract]
Net sales	983	1,856	3,396	4,388
TransAct Services Group [Member] | International [Member]
Disaggregation of revenue [Abstract]
Net sales	$ 154	$ 115	$ 745	$ 365

Revenue, Contract Balances (Det

Revenue, Contract Balances (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Dec. 31, 2021
Revenue [Abstract]
Revenue recognized	$ 800
Contract liabilities [Abstract]
Unbilled receivables, current	393	$ 314
Unbilled receivables, non-current	196	308
Customer pre-payments	(221)	(99)
Deferred revenue, current	(1,158)	(805)
Deferred revenue, non-current	(164)	(186)
Total net contract liabilities	$ (954)	$ (468)

Revenue, Remaining Performance

Revenue, Remaining Performance Obligations (Details) $ in Millions	Sep. 30, 2022 USD ($)
Remaining performance obligations [Abstract]
Remaining performance obligations	$ 19
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-10-01
Remaining performance obligations [Abstract]
Remaining performance obligations	$ 18.5
Expected timing of satisfaction, period	12 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-10-01
Remaining performance obligations [Abstract]
Remaining performance obligations	$ 0.4
Expected timing of satisfaction, period	12 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-10-01
Remaining performance obligations [Abstract]
Remaining performance obligations
Expected timing of satisfaction, period	12 months

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Inventories [Abstract]
Raw materials and purchased component parts	$ 10,183	$ 6,470
Work-in-process	0	11
Finished goods	932	1,230
Inventories	$ 11,115	$ 7,711

Accrued product warranty liab_3

Accrued product warranty liability (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Accrued product warranty liability [Roll Forward]
Balance, beginning of period	$ 101	$ 140
Warranties issued	40	39
Warranty settlements	(64)	(70)
Balance, end of period	77	$ 109
Accrued product warranty liability, current	57
Other Liabilities [Member]
Accrued product warranty liability [Roll Forward]
Accrued product warranty liability, non-current	$ 20
Maximum [Member]
Warranty [Abstract]
Product warranty period	24 months

Debt (Details)

Debt (Details) - USD ($)		9 Months Ended
	Jul. 01, 2021	Sep. 30, 2022	Jul. 21, 2021	May 01, 2020	Mar. 13, 2020
Sienna Credit Facility [Member]
Debt [Abstract]
Maximum borrowing capacity					$ 10,000,000
Interest rate		6.50%
Deferred financing costs					$ 245,000
Percentage fee on unused borrowings		0.50%
Percentage of eligible accounts receivable		85%
Eligible inventory		$ 5,000,000
Percentage of eligible raw material		50%
Percentage of eligible finished goods inventory		60%
Additional borrowing capacity		$ 2,500,000
Balance outstanding		2,300,000
Minimum excess availability and unrestricted cash required		$ 5,000,000
Number of days to maintain excess availability and unrestricted cash		3 days
Minimum principal amount to be maintained to direct use of funds in deposit account		$ 2,250,000
Minimum principal amount on which interest is paid		$ 2,250,000
Sienna Credit Facility [Member] | Minimum [Member]
Debt [Abstract]
Additional borrowing capacity			$ 750,000
Sienna Credit Facility [Member] | Prime Rate [Member]
Debt [Abstract]
Basis spread on variable rate		1.75%
Sienna Credit Facility [Member] | Federal Funds Rate [Member]
Debt [Abstract]
Basis spread on variable rate		2.25%
PPP Loan [Member]
Debt [Abstract]
Face amount				$ 2,200,000
Loan forgiven	$ 2,200,000

Earnings per share (Details)

Earnings per share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Earnings per share [Abstract]
Net income (loss)	$ 528	$ 901	$ (6,196)	$ (3,218)
Shares [Abstract]
Basic: Weighted average common shares outstanding (in shares)	9,911	9,408	9,902	9,112
Add: Dilutive effect of outstanding options and restricted stock units as determined by the treasury stock method (in shares)	0	438	0	0
Diluted: Weighted average common and common equivalent shares outstanding (in shares)	9,911	9,846	9,902	9,112
Net income (loss) per common share [Abstract]
Basic (in dollars per share)	$ 0.05	$ 0.1	$ (0.63)	$ (0.35)
Diluted (in dollars per share)	$ 0.05	$ 0.09	$ (0.63)	$ (0.35)
Stock Awards [Member]
Earnings per share [Abstract]
Anti-dilutive securities excluded from computation of earnings per dilutive share (in shares)	300	300	1,600	400

Leases (Details)

Leases (Details) - USD ($) $ in Thousands			3 Months Ended		9 Months Ended
	Apr. 26, 2022	Apr. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Leases [Abstract]
Operating lease expense			$ 261	$ 235	$ 748	$ 717
Operating cash outflows from leases					$ 617	$ 750
Weighted average remaining lease term			3 years		3 years		3 years 6 months
Weighted average discount rate			4.50%		4.50%		4.40%
Maturity of Operating Lease Liabilities [Abstract]
2022			$ 218		$ 218		$ 886
2023			968		968		721
2024			1,019		1,019		721
2025			707		707		426
2026			19		19		23
Total undiscounted lease payments			2,931		2,931		2,777
Less imputed interest			195		195		207
Total lease liabilities			$ 2,736		$ 2,736		$ 2,570
Minimum [Member]
Leases [Abstract]
Remaining lease terms			2 years		2 years
Maximum [Member]
Leases [Abstract]
Remaining lease terms			4 years		4 years
Facility in Hamden, Connecticut [Member]
Leases [Abstract]
Extension period for leases			2 years		2 years
Increase (decrease) in right-of-use-asset		$ (300)
Increase (decrease) in operating lease liability		$ (300)
Facility in Las Vegas, Nevada [Member]
Leases [Abstract]
Increase (decrease) in right-of-use-asset	$ 800
Increase (decrease) in operating lease liability	$ 800

Income taxes (Details)

Income taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Income taxes [Abstract]
Income tax benefit	$ (62)	$ (442)	$ (2,287)	$ (1,629)
Effective tax rate	(13.30%)	(96.30%)	(27.00%)	(33.60%)
Unrecognized tax benefits that would favorably affect effective income tax rate if recognized	$ 116		$ 116
Unrecognized tax benefits recognized due to expiration of statute of limitations	28
Accrued interest and penalties related to uncertain tax positions	$ 20		$ 20

Change in accounting principle,

Change in accounting principle, Effect of Change on Balance Sheets (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021	Dec. 31, 2020
Condensed Consolidated Balance Sheets [Abstract]
Inventories	$ 11,115	$ 7,711
Deferred tax assets	7,520	5,143
Retained earnings	$ 9,370	15,566	$ 19,607
Previously Reported [Member]
Condensed Consolidated Balance Sheets [Abstract]
Inventories		7,720
Deferred tax assets		5,141
Retained earnings		15,573	$ 19,718
Effect of Change [Member] | Change in Method of Inventory Valuation to Average Costing [Member]
Condensed Consolidated Balance Sheets [Abstract]
Inventories		(9)
Deferred tax assets		2
Retained earnings		$ (7)

Change in accounting principl_2

Change in accounting principle, Effect of Change on Statements of Operations (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Condensed Consolidated Statements of Operations [Abstract]
Cost of sales	$ 9,663	$ 6,332	$ 23,988	$ 17,187
Gross profit	8,193	4,305	16,193	11,076
Operating loss	387	(1,616)	(8,171)	(6,780)
Income (loss) before income taxes	466	459	(8,483)	(4,847)
Income tax benefit	62	442	2,287	1,629
Net income (loss)	$ 528	$ 901	$ (6,196)	$ (3,218)
Net income (loss) per common share [Abstract]
Basic (in dollars per share)	$ 0.05	$ 0.1	$ (0.63)	$ (0.35)
Diluted (in dollars per share)	$ 0.05	$ 0.09	$ (0.63)	$ (0.35)
Shares used in per-share calculation [Abstract]
Basic (in shares)	9,911	9,408	9,902	9,112
Diluted (in shares)	9,911	9,846	9,902	9,112
Previously Reported [Member]
Condensed Consolidated Statements of Operations [Abstract]
Cost of sales		$ 6,320		$ 17,432
Gross profit		4,317		10,831
Operating loss		(1,604)		(7,025)
Income (loss) before income taxes		471		(5,092)
Income tax benefit		439		1,682
Net income (loss)		$ 910		$ (3,410)
Net income (loss) per common share [Abstract]
Basic (in dollars per share)		$ 0.1		$ (0.37)
Diluted (in dollars per share)		$ 0.09		$ (0.37)
Shares used in per-share calculation [Abstract]
Basic (in shares)		9,408		9,112
Diluted (in shares)		9,846		9,112
Effect of Change [Member] | Change in Method of Inventory Valuation to Average Costing [Member]
Condensed Consolidated Statements of Operations [Abstract]
Cost of sales		$ 12		$ (245)
Gross profit		(12)		245
Operating loss		(12)		245
Income (loss) before income taxes		(12)		245
Income tax benefit		3		(53)
Net income (loss)		$ (9)		$ 192
Net income (loss) per common share [Abstract]
Basic (in dollars per share)		$ 0		$ 0.02
Diluted (in dollars per share)		$ 0		$ 0.02

Change in accounting principl_3

Change in accounting principle, Effect of Change on Statements of Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Condensed Consolidated Statements of Comprehensive Income (Loss) [Abstract]
Net income (loss)	$ 528	$ 901	$ (6,196)	$ (3,218)
Comprehensive income (loss)	$ 323	924	$ (6,451)	(3,110)
Previously Reported [Member]
Condensed Consolidated Statements of Comprehensive Income (Loss) [Abstract]
Net income (loss)		910		(3,410)
Comprehensive income (loss)		933		(3,302)
Effect of Change [Member] | Change in Method of Inventory Valuation to Average Costing [Member]
Condensed Consolidated Statements of Comprehensive Income (Loss) [Abstract]
Net income (loss)		(9)		192
Comprehensive income (loss)		$ (9)		$ 192

Change in accounting principl_4

Change in accounting principle, Effect of Change on Statements of Cash Flows (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Condensed Consolidated Statements of Cash Flows [Abstract]
Net loss	$ 528	$ 901	$ (6,196)	$ (3,218)
Deferred income taxes			(2,387)	(1,520)
Inventories			$ (3,551)	4,677
Previously Reported [Member]
Condensed Consolidated Statements of Cash Flows [Abstract]
Net loss		910		(3,410)
Deferred income taxes				(1,573)
Inventories				4,922
Effect of Change [Member] | Change in Method of Inventory Valuation to Average Costing [Member]
Condensed Consolidated Statements of Cash Flows [Abstract]
Net loss		$ (9)		192
Deferred income taxes				53
Inventories				$ (245)

Change in accounting principl_5

Change in accounting principle, Effect of Change on Statements of Changes in Shareholders' Equity (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Condensed Consolidated Statements of Changes in Shareholders' Equity [Abstract]
Beginning balance	$ 32,672	$ 26,963	$ 38,984	$ 30,125
Net income (loss)	528	901	(6,196)	(3,218)
Ending balance	33,282	39,361	33,282	39,361
Retained Earnings [Member]
Condensed Consolidated Statements of Changes in Shareholders' Equity [Abstract]
Beginning balance	8,842	15,488	15,566	19,607
Net income (loss)	528	901	(6,196)	(3,218)
Ending balance	$ 9,370	16,389	$ 9,370	16,389
Previously Reported [Member]
Condensed Consolidated Statements of Changes in Shareholders' Equity [Abstract]
Beginning balance		26,873		30,236
Net income (loss)		910		(3,410)
Ending balance		39,280		39,280
Previously Reported [Member] | Retained Earnings [Member]
Condensed Consolidated Statements of Changes in Shareholders' Equity [Abstract]
Beginning balance		15,398		19,718
Ending balance		16,308		16,308
Effect of Change [Member] | Change in Method of Inventory Valuation to Average Costing [Member]
Condensed Consolidated Statements of Changes in Shareholders' Equity [Abstract]
Beginning balance		90		(111)
Net income (loss)		(9)		192
Ending balance		81		81
Effect of Change [Member] | Retained Earnings [Member] | Change in Method of Inventory Valuation to Average Costing [Member]
Condensed Consolidated Statements of Changes in Shareholders' Equity [Abstract]
Beginning balance		90		(111)
Ending balance		$ 81		$ 81