TransAct Technologies (TACT) 10-K 27 Mar 23 2022 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2022	Feb. 28, 2023	Jun. 30, 2022
Cover [Abstract]
Document Type	10-K
Amendment Flag	false
Document Annual Report	true
Document Period End Date	Dec. 31, 2022
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	FY
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 Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
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
ICFR Auditor Attestation Flag	false
Entity Shell Company	false
Entity Public Float			$ 38,300,000
Entity Common Stock, Shares Outstanding		9,935,827
Auditor Firm ID	688
Auditor Name	Marcum LLP
Auditor Location	Hartford, Connecticut

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 7,946	$ 19,457
Accounts receivable, net	13,927	7,593
Employee retention credit receivable	1,500	1,500
Inventories	12,028	7,711
Prepaid income taxes	0	137
Other current assets	724	738
Total current assets	36,125	37,136
Fixed assets, net	2,781	2,684
Right-of-use asset	2,488	2,553
Goodwill	2,621	2,621
Deferred tax assets	7,327	5,143
Intangible assets, net	242	397
Other assets	248	400
Total noncurrent assets	15,707	13,798
Total assets	51,832	50,934
Current liabilities:
Current portion of revolving loan payable	2,250	0
Accounts payable	7,395	4,308
Accrued liabilities	4,077	3,894
Lease liability	875	789
Deferred revenue	1,329	805
Total current liabilities	15,926	9,796
Deferred revenue, net of current portion	143	186
Lease liability, net of current portion	1,683	1,781
Other liabilities	218	187
Total noncurrent liabilities	2,044	2,154
Total liabilities	17,970	11,950
Commitments and contingencies (see Notes 9 and 14)
Shareholders' equity:
Preferred stock	0	0
Common stock, $0.01 par value, 20,000,000 authorized at December 31, 2022 and 2021; 13,956,725 and 13,917,731 shares issued; 9,911,883 and 9,872,889 shares outstanding, at December 31, 2022 and 2021, respectively	139	139
Additional paid-in capital	56,282	55,246
Retained earnings	9,630	15,566
Accumulated other comprehensive (loss) income, net of tax	(79)	143
Treasury stock, 4,044,842 shares, at cost	(32,110)	(32,110)
Total shareholders' equity	33,862	38,984
Total liabilities and shareholders' equity	51,832	50,934
Series A Preferred Stock [Member]
Shareholders' equity:
Preferred stock	$ 0	$ 0

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Dec. 31, 2022	Dec. 31, 2021
Shareholders' equity:
Preferred stock par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	4,800,000	4,800,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
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)	13,956,725	13,917,731
Common stock, shares outstanding (in shares)	9,911,883	9,872,889
Treasury stock (in shares)	4,044,842	4,044,842
Series A Preferred Stock [Member]
Shareholders' equity:
Preferred stock par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	200,000	200,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
CONSOLIDATED STATEMENTS OF OPERATIONS [Abstract]
Net sales	$ 58,139	$ 39,386
Cost of sales	33,727	24,004
Gross profit	24,412	15,382
Operating expenses:
Engineering, design and product development	8,570	7,475
Selling and marketing	11,326	7,658
General and administrative	12,193	9,626
Operating expenses	32,089	24,759
Operating loss	(7,677)	(9,377)
Interest and other income (expense):
Interest expense	(208)	(157)
Interest income	0	61
Other, net	(16)	(283)
Gain from employee retention credit	0	1,500
Gain on forgiveness of long-term debt	0	2,173
Interest and other income (expense)	(224)	3,294
Loss before income taxes	(7,901)	(6,083)
Income tax benefit	1,965	2,042
Net loss	$ (5,936)	$ (4,041)
Net loss per common share:
Basic (in dollars per share)	$ (0.6)	$ (0.43)
Diluted (in dollars per share)	$ (0.6)	$ (0.43)
Shares used in per-share calculation:
Basic (in shares)	9,905	9,298
Diluted (in shares)	9,905	9,298

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2022	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2022	Dec. 31, 2021
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS [Abstract]
Net loss	$ 260	$ 528	$ (2,376)	$ (4,348)	$ (823)	$ 901	$ (2,030)	$ (2,089)	$ (5,936)	$ (4,041)
Foreign currency translation adjustment, net of tax									(222)	181
Comprehensive loss					$ (750)				$ (6,158)	$ (3,860)

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Treasury Stock [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Total
Beginning balance at Dec. 31, 2020	$ 130	$ 42,536	$ 19,607	$ (32,110)	$ (38)	$ 30,125
Beginning balance (in shares) at Dec. 31, 2020	8,931,385
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of shares from exercise of stock options	$ 0	436	0	0	0	436
Issuance of shares from exercise of stock options (in shares)	97,000
Issuance of common stock on restricted stock units	$ 0	0	0	0	0	0
Issuance of common stock on restricted stock units (in shares)	50,525
Issuance of common stock, net of issuance cost	$ 9	11,201	0	0	0	11,210
Issuance of common stock, net of issuance cost (in shares)	842,375
Relinquishments of stock options and deferred stock units to pay withholding taxes	$ 0	(133)	0	0	0	(133)
Relinquishments of stock options and deferred stock units to pay withholding taxes (in shares)	(48,396)
Share-based compensation expense	$ 0	1,206	0	0	0	1,206
Foreign currency translation adjustment, net of tax	0	0	0	0	181	181
Net loss	0	0	(4,041)	0	0	(4,041)
Ending balance at Dec. 31, 2021	$ 139	55,246	15,566	(32,110)	143	$ 38,984
Ending balance (in shares) at Dec. 31, 2021	9,872,889					13,917,731
Beginning balance at Sep. 30, 2021			16,389			$ 39,361
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss						(823)
Ending balance at Dec. 31, 2021	$ 139	55,246	15,566	(32,110)	143	$ 38,984
Ending balance (in shares) at Dec. 31, 2021	9,872,889					13,917,731
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of shares from exercise of stock options	$ 0	0	0	0	0	$ 0
Issuance of shares from exercise of stock options (in shares)	17,500
Issuance of common stock on restricted stock units	$ 0	0	0	0	0	0
Issuance of common stock on restricted stock units (in shares)	47,931
Relinquishments of stock options and deferred stock units to pay withholding taxes	$ 0	(119)	0	0	0	(119)
Relinquishments of stock options and deferred stock units to pay withholding taxes (in shares)	(26,437)
Share-based compensation expense	$ 0	1,155	0	0	0	1,155
Foreign currency translation adjustment, net of tax	0	0	0	0	(222)	(222)
Net loss	0	0	(5,936)	0	0	(5,936)
Ending balance at Dec. 31, 2022	$ 139	$ 56,282	$ 9,630	$ (32,110)	$ (79)	$ 33,862
Ending balance (in shares) at Dec. 31, 2022	9,911,883					13,956,725

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Cash flows from operating activities:
Net loss	$ (5,936)	$ (4,041)
Adjustments to reconcile net loss to net cash used in operating activities:
Share-based compensation expense	1,155	1,206
Depreciation and amortization	1,332	957
Deferred income tax benefit	(2,141)	(2,121)
Loss on the disposal of fixed assets	2	9
Foreign currency transaction losses	6	272
Gain on forgiveness of long-term debt	0	(2,173)
Changes in operating assets and liabilities:
Accounts receivable	(6,421)	(4,217)
Employee retention credit receivable	0	(1,500)
Inventories	(4,378)	3,440
Prepaid income taxes	137	2,210
Other current and long-term assets	167	322
Accounts payable	3,103	2,534
Accrued liabilities and other liabilities	754	592
Net cash used in operating activities	(12,220)	(2,510)
Cash flows from investing activities:
Capital expenditures	(1,299)	(1,384)
Proceeds from the sale of fixed assets	0	8
Collection of note receivable	0	1,598
Net cash (used in) provided by investing activities	(1,299)	222
Cash flows from financing activities:
Proceeds from bank borrowings	2,250	0
Proceeds from stock option exercises	0	436
Proceeds from the issuance of common stock	0	12,214
Payment of common stock issuance costs	0	(1,014)
Withholding taxes paid on stock issuance	(119)	(133)
Payment of bank financing costs	(69)	(31)
Net cash provided by financing activities	2,062	11,472
Effect of exchange rate changes on cash and cash equivalents	(54)	(86)
(Decrease) increase in cash and cash equivalents	(11,511)	9,098
Cash and cash equivalents, beginning of period	19,457	10,359
Cash and cash equivalents, end of period	7,946	19,457
Supplemental cash flow information:
Interest paid	129	76
Income taxes paid	62	57
Non-cash capital expenditure items	$ 54	$ 82

Description of business

Description of business	12 Months Ended
	Dec. 31, 2022
Description of business [Abstract]
Description of business	1. Description of business TransAct Technologies Incorporated (together with its subsidiaries, “TransAct,” the “Company,” “we,” “us,” or “our”), which has its headquarters in Hamden, Connecticut and its primary operating facility in Ithaca, New York, operates in one operating segment: software-driven technology and printing solutions for high growth markets including food service technology, casino and gaming and “point of sale” (“POS”) automation markets. Our solutions are designed from the ground up based on market and customer requirements and are sold under the BOHA! TM 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. We have also been impacted by global supply chain issues, increased shipping costs and inflationary pressures, which have increased our costs and, in some instances, slowed our ability to deliver products to our customers. During 2021, our inventory levels decreased significantly as a result of these supply chain disruptions, and we experienced significantly lower sales levels. However, during 2022 we were 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. Although we were able to increase inventory levels during 2022 and expect to continue to do so in 2023, there can be no assurance that new or continuing 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 continued to experience demand recovery during the remainder of 2022. Based on our strong backlog position and continued market expansion, we expect this recovery to continue into 2023, though the exact timing and pace of recovery may be impacted by global economic conditions. Balance Sheet, Cash Flow and Liquidity. ● Public Offering – On August 16, 2021, the Company raised net proceeds of $11.2 million (including the exercise of the underwriters overallotment option on August 20, 2021), after deducting underwriting discounts, commissions and offering expenses, through an underwritten public offering and sold an aggregate of 842,375 shares of common stock. ● 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, which enabled us to return employees we furloughed earlier in 2020 to full time employment and to restore employees to full pay following certain pay cuts. On July 8, 2021, we received notice that the PPP Loan had been forgiven as of July 1, 2021. See Note 8 for further details regarding the PPP Loan. ● Employee Retention Credit – Under the provisions of the CARES Act, the Company is 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 and recorded $1.5 million as “Gain from employee retention credit” in the Consolidated Statement of Operations for the year ended December 31, 2021 and the related receivable as “Employee retention credit receivable” in the Consolidated Balance Sheet as of December 31, 2021 and 2022. We received these funds in the first quarter of 2023. ● On March 13, 2020, we entered into a Credit Facility with Siena Lending Group LLC 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 8 for further details regarding this facility. ● Reduced Capital Expenditures – We limited capital expenditures during 2020 and 2021 and gradually increased these expenditures during 2022 as sales improved. After reviewing whether conditions and/or events raise substantial doubt about our ability to meet future financial obligations over the 12 months following the date on which the Consolidated Financial Statements included in this “Form 10-K” were issued, 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 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 2023. 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 significant backlog of orders as of December 31, 2022 and increasing market share during 2022, 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 audited Consolidated 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, 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. Smaller Reporting Company As a smaller reporting company, as defined in Item 10(f)(1) of Regulation S-K, we may choose to prepare our disclosures relying on certain scaled disclosure requirements for smaller reporting companies in Regulation S-K and in Article 8 of Regulation S-X. The scaled disclosure requirements for smaller reporting companies permit us (i) to include less extensive narrative disclosure than required of other reporting companies, particularly in the description of executive compensation in our proxy statement and (ii) to provide audited financial statements for two fiscal years in our Form 10-K, in contrast to other reporting companies, which must provide audited financial statements for three years. We may lose our status as a smaller reporting company on the last day of the fiscal year in which we have (i) public float of at least $250 million as of the last day of the second fiscal quarter and (ii) if we have a public float that does not exceed $700 million as of the last day of the second fiscal quarter and at least $100 million in annual revenues.

Summary of significant accounti

Summary of significant accounting policies	12 Months Ended
	Dec. 31, 2022
Summary of significant accounting policies [Abstract]
Summary of significant accounting policies	2. Summary of significant accounting policies Principles of consolidation: Use of estimates : Segment reporting : Cash and cash equivalents : Allowance for doubtful accounts : The following table summarizes the activity recorded in the valuation account for accounts receivable: Years Ended , (In thousands) 2022 2021 Balance, beginning of period $ 219 $ 220 Additions charged to costs and expenses 140 – Deductions (8 ) (1 ) Balance, end of period $ 351 $ 219 Inventories: Effective April 1, 2022, TransAct changed its method of inventory valuation from standard costing which approximated the “first-in, first-out” (“FIFO”) costing methodology to the average costing methodology. Comparative financial statements of prior periods have been adjusted to apply the new method retrospectively. See Note 16 for a discussion of the change in accounting principle during the second quarter of 2022. Fixed assets: Leases: We have elected certain practical expedients available under ASC 842 upon adoption. We have applied the practical expedient for short-term leases. We have lease agreements that include lease and non-lease components, and we have not elected the practical expedients to combine these components for any of our 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. We determine if an arrangement contains a lease at inception. Our leases are included in “Right-of-use asset” and “Lease liability” in our Consolidated Balance Sheets. Right of use assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Lease right of use assets and liabilities are recognized at the commencement date of the lease based on the present value of lease payments over the lease term. 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. On April 30, 2021, we entered into an amendment to modify the expiration date of our lease on our Hamden, CT facility. The lease, which was last amended on January 3, 2017, was scheduled to expire on April 30, 2027. The lease amendment modified the expiration date to October 31, 2025. The modification resulted in reducing the right-of-use-asset and lease liability by $0.3 million. Lease expense is recognized on a straight-line basis over the lease term. As most of our leases do not provide an implicit rate, the Company determines its incremental borrowing rate by using the rate of interest that the Company would have to pay to borrow on a collateralized basis over a similar term, an amount equal to the lease payments in a similar economic environment. Our lease right of use asset excludes lease incentives. Our leases have remaining lease terms of one year to four years, some of which include options to extend. The exercise of lease renewal options is at our sole discretion and our lease right of use assets and liabilities reflect only the options we are reasonably certain that we will exercise. Lease expense is recognized on a straight-line basis over the lease term. Goodwill and intangible assets : As of December 31, 2022, we have determined that no goodwill or intangible asset impairment has occurred and the fair value of goodwill was substantially higher than our carrying value based on our assessment as of December 31, 2022 when our annual review for impairment was performed. Revenue recognition: The transaction price is determined based on the consideration to which the Company will be entitled in exchange for transferring services to the customer. To the extent the transaction price includes variable consideration, such as price protection, reserves for returns and other allowances, the Company estimates the amount of variable consideration that should be included in the transaction price utilizing either the “expected value” method or the “most likely amount” method depending on the nature of the variable consideration. Variable consideration is included in the transaction price if, in the Company’s judgment, it is probable that a significant future reversal of cumulative revenue under the contract will not occur. For a majority of our revenue, which consists of printers, terminals, consumables, and replacement parts, the Company recognizes revenue as of a point of time. The transaction price is recognized upon shipment of the order when control of the goods is transferred to the customer and at the time the performance obligation is fulfilled. We also sell a software solution in our casino and gaming market, EPICENTRAL, that enables casino operators to create promotional coupons and marketing messages and to print them in real time at the slot machine. EPICENTRAL is primarily comprised of both a software component, which is licensed to the customer, and a hardware component. EPICENTRAL software and hardware are integrated to deliver the system’s full functionality. The transaction prices from EPICENTRAL software license and hardware are recognized upon installation and formal acceptance by the customer when control of the license is transferred to the customer. For out-of-warranty repairs, the transaction price is recognized after the repair work is completed and the printer or terminal is returned to the customer, as control of the product is transferred to the customer and our performance obligation is completed. Performance obligations are satisfied over time if the customer receives the benefits as we perform work, if the customer controls the asset as it is being produced, or if the product being produced for the customer has no alternative use and we have a contractual right to payment. For our separately priced extended warranty, BOHA! cloud-based software applications, technical support for our food service technology terminals and maintenance agreements (including free one-year maintenance received by customers upon completion of EPICENTRAL installation) revenue is recognized over time as the customer receives the benefit. The transaction price from the maintenance services is recognized ratably over time, using output methods, as control of the services is transferred to the customer. Our cloud-based BOHA! software allows customers to use hosted software over the contract period on a subscription basis without taking possession of the software and the subscription price is recognized ratably over the contract period. For extended warranties, the transaction price is recognized ratably over the warranty period, using output methods, as control of the services is transferred to the customer. When there is more than one performance obligation in a customer arrangement, the Company typically uses the “standalone selling price” method to determine the transaction price to allocate to each performance obligation. The Company sells the performance obligations separately and has established standalone selling prices for its products and services. In the case of an overall price discount, the discount is applied to each performance obligation proportionately based on standalone selling price. To determine the standalone selling price for initial EPICENTRAL installations, the Company uses the adjusted market assessment approach. For contracts with terms of less than 12 months, the Company expenses sales commissions as they are incurred, since the expected amortization period of the cost to obtain a contract is less than 12 months. Disaggregation of revenue The following table disaggregates 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. Year Ended December 31, 2022 (In thousands) United States International Total Food service technology $ 11,602 $ 762 $ 12,364 POS automation 10,657 2 10,659 Casino and gaming 17,686 12,343 30,029 TransAct Services Group 4,089 998 5,087 Total net sales $ 44,034 $ 14,105 $ 58,139 Year Ended (In thousands) United States International Total Food service technology $ 11,738 $ 887 $ 12,625 POS automation 4,817 8 4,825 Casino and gaming 10,173 5,129 15,302 Printrex 171 460 631 TransAct Services Group 5,501 502 6,003 Total net sales $ 32,400 $ 6,986 $ 39,386 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” on the Consolidated Balance Sheets. We first recorded contract assets during 2020 upon the start of a long-term BOHA! contract. Contract liabilities consist of customer prepayments and deferred revenue. Customer prepayments are reported as “Accrued Liabilities” in current liabilities in the Consolidated Balance Sheets and represent customer payments made in advance of performance obligations in instances where credit has not been extended and is 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. During the year ended December 31, 2022, we recognized revenue of $1.1 million related to our contract liabilities as of December 31, 2021. Net contract (liabilities) assets consist of the following: December 31, (In thousands) 2022 2021 Unbilled receivables, current $ 392 $ 314 Unbilled receivables, non-current 163 308 Customer pre-payments (101 ) (99 ) Deferred revenue, current (1,329 ) (805 ) Deferred revenue, non-current (143 ) (186 ) Net contract (liabilities) assets $ (1,018 ) $ (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 December 31, 2022, the aggregate amount of the transaction price allocated to remaining performance obligations was $29.0 million. The Company expects to recognize revenue on $28.7 million of its remaining performance obligations within the next 12 months following December 31, 2022, $0.2 million within the next 24 36 Concentration of credit risk: Accounts receivable from customers representing 10% or more of total accounts receivable, net were as follows: December 31, 2022 2021 Chain Link Services – 10 % International Gaming Technology (“IGT”) 12 % 3 % NCR Corporation 3 % 11 % The Bright Group 11 % – Sales to customers representing 10% or more of total net sales were as follows: December 31, 2022 2021 IGT 10 % 9 % Engineering, design and product development: Costs incurred in the engineering, design and product development of a computer software product are charged to expense until technological feasibility has been established, at which point all material software costs are capitalized within Intangible assets in our Consolidated Balance Sheet until the product is available for general release to customers. While judgment is required in determining when technological feasibility of a product is established, we have determined that it is reached after all high-risk development issues have been documented in a formal detailed plan design. The amortization of these costs has been included in cost of sales over the estimated life of the product. During 2019, we contracted several third-parties to develop software for our food service technology products, the cost for which we capitalized. Unamortized development costs for such software was $242 thousand and $396 thousand as of December 31, 2022 and 2021, respectively. The total amount charged to cost of sales for capitalized software development costs was $154 thousand in both 2022 and 2021. Advertising: Income taxes: Foreign currency translation: Share-based payments: We use the Black-Scholes option-pricing model to calculate the fair value of share-based awards. The key assumptions for this valuation method include the expected term of the option, stock price volatility, risk-free interest rate, dividend yield, market price of our underlying stock and exercise price. Many of these assumptions require judgment and are highly sensitive in the determination of compensation expense. Forfeitures are recognized as they occur. Net loss per share: Change in accounting principle: See Note 16 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 . Reclassifications:

Inventories

Inventories	12 Months Ended
	Dec. 31, 2022
Inventories [Abstract]
Inventories	3. Inventories The components of inventories are: December 31, (In thousands) 2022 2021 * Raw materials and purchased component parts $ 8,884 $ 5,499 Work-in-process – 11 Finished goods 3,144 2,201 $ 12,028 $ 7,711 * see Note 16, Change in Accounting Principle

Fixed assets, net

Fixed assets, net	12 Months Ended
	Dec. 31, 2022
Fixed assets, net [Abstract]
Fixed assets, net	4. Fixed assets, net The components of fixed assets, net are: December 31, (In thousands) 2022 2021 Tooling, machinery and equipment $ 6,859 $ 6,694 Furniture and office equipment 1,882 1,660 Computer software and equipment 8,348 6,973 Leasehold improvements 2,883 2,872 19,972 18,199 Less: Accumulated depreciation and amortization (17,656 ) (16,736 ) 2,316 1,463 Construction in-process 465 1,221 $ 2,781 $ 2,684

Intangible assets, net

Intangible assets, net	12 Months Ended
	Dec. 31, 2022
Intangible assets, net [Abstract]
Intangible assets, net	5. Intangible assets, net Identifiable intangible assets are recorded in Intangible assets, net in the accompanying Consolidated Balance Sheets and are comprised of the following: December 31, 2022 2021 (In thousands) Gross Amount Accumulated Amortization Gross Amount Accumulated Amortization Purchased technology $ 1,591 $ (1,349 ) $ 1,591 $ (1,195 ) Patents 15 (15 ) 15 (14 ) Total $ 1,606 $ (1,364 ) $ 1,606 $ (1,209 ) Amortization expense was $155 thousand and $186 thousand in 2022 and 2021, respectively. Amortization expense for each of the next five years ending December 31 is expected to be as follows: $154 thousand in 2023 and $88 thousand in 2024; and none thereafter.

Accrued liabilities

Accrued liabilities	12 Months Ended
	Dec. 31, 2022
Accrued liabilities [Abstract]
Accrued liabilities	6. Accrued liabilities The components of accrued liabilities are: December 31, (In thousands) 2022 2021 Salaries and compensation related $ 2,744 $ 2,854 Taxes 530 79 Professional and consulting 371 285 Other 432 676 $ 4,077 $ 3,894

Retirement savings plan

Retirement savings plan	12 Months Ended
	Dec. 31, 2022
Retirement savings plan [Abstract]
Retirement savings plan	7. Retirement savings plan We maintain a 401(k) plan under which all full-time employees are eligible to participate at the beginning of the month immediately following their date of hire. We match employees’ contributions at a rate of 50% of employees’ contributions up to the first 6% of the employees’ compensation contributed to the 401(k) plan. Our matching contributions were $355 thousand and $312 thousand in 2022 and 2021, respectively.

Borrowings

Borrowings	12 Months Ended
	Dec. 31, 2022
Borrowings [Abstract]
Borrowings	8. Borrowings Credit Facility On March 13, 2020, we entered into a credit facility (the “Siena Credit Facility”) with Siena Lending Group LLC (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 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 through December 31, 2022, we remained in compliance with our excess availability covenant. As of December 31, 2022, we had $2.3 million of outstanding borrowings under the Siena Credit Facility and $3.9 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 $2.2 million, pursuant to the PPP. Under the terms of the PPP, the PPP Loan would be forgiven to the extent that funds from the PPP Loan were used for payroll costs and costs to continue group health care benefits, as well as for interest on mortgage obligations incurred before February 15, 2020, rent under lease agreements in effect before February 15, 2020, utilities for which service began before February 15, 2020, and interest on debt obligations incurred before February 15, 2020, subject to conditions and limitations provided in the CARES Act. At least 60% (under the PPP terms, as amended) of the proceeds from the PPP Loan were required to be used for eligible payroll costs for the PPP Loan to be forgiven. 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.

Stock incentive plans

Stock incentive plans	12 Months Ended
	Dec. 31, 2022
Stock incentive plans [Abstract]
Stock incentive plans	9. Stock incentive plans Stock incentive plans . Under the assumptions indicated below, the weighted-average per share fair value of stock option grants for 2022 and 2021 was $4.39 and $5.41, respectively. We also issued restricted stock units for certain executives and directors that vest over a specified period of time, and in some instances require achieving certain performance metrics. The weighted-average per share fair value of these restricted stock units was $8.43 and $10.27 in 2022 and 2021, respectively. The table below indicates the key assumptions (on a weighted-average basis) used in the option valuation calculations for options granted in 2022 and 2021 and a discussion of our methodology for developing each of the assumptions used in the valuation model: Year Ended December 31, 2022 2021 Expected option term (in years) 7.1 6.9 Expected volatility 51.3 % 50.5 % Risk-free interest rate 2.2 % 1.2 % Dividend yield 0.0 % 0.0 % Expected Option Term Expected Volatility Risk-Free Interest Rate Dividend Yield For both 2022 and 2021, we recorded $1.2 million of share-based compensation expense included primarily in general and administrative expense in our Consolidated Statements of Operations. We also recorded income tax benefits of $0.3 million in both 2022 and 2021, related to such share-based compensation. At December 31, 2022, these benefits are recorded as a deferred tax asset in the Consolidated Balance Sheets. Equity award activity in the 2005 Equity Incentive Plan and the 2014 Equity Incentive Plan is summarized below: Stock Options Restricted Stock Units Number of Shares Average Price* Number of Units Average Price** Outstanding at December 31, 2021 1,269,355 $ 9.18 155,225 $ 10.28 Granted 181,100 8.16 129,700 8.78 Exercised (17,500 ) 6.70 (47,931 ) 10.22 Forfeited (49,250 ) 9.38 (22,708 ) 10.27 Expired (27,750 ) 8.51 – – Outstanding at December 31, 2022 1,355,955 $ 9.08 214,286 $ 9.28 * weighted average exercise price per share ** weighted average grant stock price per share The following summarizes information about equity awards outstanding that are vested and expect to vest and equity awards that are exercisable at December 31, 2022: Equity Awards Vested and Expected to Vest Equity Awards That Are Exercisable Awards Average Price* Aggregate Intrinsic Value Remaining Term** Awards Average Price* Aggregate Intrinsic Value Remaining Term** Stock Options 1,355,955 $ 9.08 $ 224 5.0 971,865 $ 9.23 $ 93 3.7 Restricted stock units 145,687 – 921 2.1 – – – – * weighted average exercise price per share ** weighted-average contractual remaining term in years Shares that are issued upon exercise of employee stock awards are newly issued shares and not issued from treasury stock. As of December 31, 2022, unrecognized compensation cost related to non-vested equity awards granted under our stock incentive plans is approximately $2.1 million, which is expected to be recognized over a weighted average period of 2.6 years. The total fair value of awards vested was $1.6 million and $1.7 million during the years ended December 31, 2022 and 2021, respectively. The total intrinsic value (which is the amount by which the stock price exceeded the exercise price on the date of exercise) of stock options exercised during the years ended December 31, 2022 and 2021 was $40 thousand and $268 thousand, respectively, and cash received from option exercises was zero

Income taxes

Income taxes	12 Months Ended
	Dec. 31, 2022
Income taxes [Abstract]
Income taxes	10. Income taxes The components of the income tax benefit are as follows: December 31, (In thousands) 2022 2021 Current: Federal $ 149 $ 26 State 110 51 Foreign (83 ) 2 176 79 Deferred: Federal (1,924 ) (2,057 ) State (217 ) (62 ) Foreign – (2 ) (2,141 ) (2,121 ) Income tax benefit $ (1,965 ) $ (2,042 ) Our effective tax rates were ( ) and ( ) for and , respectively. The tax benefit recorded for 2022 includes the recognition of stock option cancellations for which no benefit was realized and the benefit recorded for 2021 included the recognition of the gain on the forgiveness of the PPP Loan which was not taxable At December 31, 2022, we have $10.9 million of federal net operating loss carryforwards (with an unlimited carryforward), $0.2 million of tax-effected state net operating loss carryforwards (which have varying lives), $1.2 million in R&D credit carryforwards (which generally have a twenty year life), and no state tax credit carryforwards. Foreign income (loss) before taxes was $24 thousand and ($404) thousand in 2022 and 2021, respectively. Deferred income taxes arise from temporary differences between the tax basis of assets and liabilities and their reported amounts in the Consolidated Financial Statements. Our deferred tax assets and liabilities were comprised of the following: December 31, (In thousands) 2022 2021 Deferred tax assets: Federal net operating losses $ 2,297 $ 1,978 Foreign net operating losses 676 624 State net operating losses 149 – Depreciation – 306 Capitalized R&D expenses 1,708 – Inventory reserves 648 710 Deferred revenue 41 24 Warranty reserve 17 22 Stock compensation expense 769 796 Other accrued compensation 222 308 R&D credit carryforward 1,238 901 Other liabilities and reserves 463 250 Gross deferred tax assets 8,228 5,919 Valuation allowance (656 ) (733 ) Net deferred tax assets 7,572 5,186 Deferred tax liabilities: Depreciation 196 – Other 49 43 Net deferred tax liabilities 245 43 Total net deferred tax assets $ 7,327 $ 5,143 As of December 31, 2022 and 2021, we had a $656 thousand and $733 thousand, respectively, of valuation allowances on our net operating loss carryforwards. The following table summarizes the activity recorded in the valuation allowance on the deferred tax assets: Year Ended December 31, (In thousands) 2022 2021 Balance, beginning of period $ 733 $ 659 Subtractions released to income tax provisions (77 ) – Additions charged to income tax provision – 74 Balance, end of period $ 656 $ 733 Differences between the U.S. statutory federal income tax rate and our effective income tax rate are analyzed below: Year Ended December 31, 2022 2021 Federal statutory rate 21.0 % 21.0 % PPP loan forgiveness – 7.4 R&D credit 4.3 7.1 Stock award excess tax benefit – 0.3 State income taxes, net of federal income taxes 1.1 0.1 Business meals and entertainment – (0.2 ) Miscellaneous permanent items – (0.3 ) Uncertain tax positions (0.5 ) (0.4 ) Stock option cancellations (1.9 ) (0.6 ) Valuation allowance and tax accruals 1.0 (1.2 ) Other (0.1 ) 0.4 Effective tax rate 24.9 % 33.6 % We had $142 thousand and $144 thousand of total gross unrecognized tax benefits at December 31, 2022 and 2021, respectively that, if recognized, would favorably affect the effective income tax rate in any future periods. We are not aware of any events that could occur within the next twelve months that could cause a significant change in the total amount of unrecognized tax benefits. A tabular reconciliation of the gross amounts of unrecognized tax benefits at the beginning and end of the year is as follows: December 31, (In thousands) 2022 2021 Balance, beginning of period $ 144 $ 121 Tax positions taken during the current period 26 47 Lapse of statute of limitations (28 ) (24 ) Balance, end of period $ 142 $ 144 We expect $28 thousand of the $142 thousand of unrecognized tax benefits will reverse in 2023 upon the expiration of the statute of limitations. We recognize interest and penalties related to uncertain tax positions in the income tax provision. We have accrued interest and penalties related to uncertain tax positions of $34 thousand and $20 thousand as of December 31, 2022 and 2021, respectively. We are subject to U.S. federal income tax as well as income tax of certain state and foreign jurisdictions. We have substantially concluded all U.S. federal income tax, state and local, and foreign tax matters through 2018. However, our federal tax returns for the years 2019 through 2022 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 Consolidated Financial Statements.

Earnings per share

Earnings per share	12 Months Ended
	Dec. 31, 2022
Earnings per share [Abstract]
Earnings per share	11. Earnings per share Earnings per share was computed as follows (in thousands, except per share amounts): Years Ended December 31, 2022 2021 Net loss $ (5,936 ) $ (4,041 ) Shares: Basic: Weighted average common shares outstanding 9,905 9,298 Add: Dilutive effect of outstanding equity awards as determined by the treasury stock method – – Diluted: Weighted average common and common equivalent shares outstanding 9,905 9,298 Net loss per common share: Basic $ (0.60 ) $ (0.43 ) Diluted (0.60 ) (0.43 ) The computation of diluted earnings per share excludes the effect of the potential exercise of stock awards, including stock options, restricted stock units and performance stock awards, when the average market price of the common stock is lower than the exercise price of the related stock award during the period. These outstanding stock awards are not included in the computation of diluted earnings per share because the effect would be anti-dilutive. Furthermore, in periods when a net loss is reported, such as 2022 and 2021, basic and diluted net loss per common share are calculated using the same method. Anti-dilutive stock awards excluded from the computation of earnings per dilutive share were 1,463,000 and 391,000 at December 31, 2022 and 2021, respectively.

Stock repurchase program

Stock repurchase program	12 Months Ended
	Dec. 31, 2022
Stock repurchase program [Abstract]
Stock repurchase program	12. Stock repurchase program We use the cost method to account for treasury stock purchases, under which the price paid for the stock is charged to the treasury stock account. Repurchases of our common stock are accounted for as of the settlement date. During 2022 and 2021, we did not repurchase any shares of our common stock. From January 1, 2005 through December 31, 2019, we repurchased a total of 4,044,842 shares of common stock for $32.1 million, at an average price of $7.94 per share.

Geographic area information

Geographic area information	12 Months Ended
	Dec. 31, 2022
Geographic area information [Abstract]
Geographic area information	13. Geographic area information Information regarding our operations by geographic area is contained in the following table. These amounts in the geographic area table are based on the location of the customer and asset. Years Ended December 31, (In thousands) 2022 2021 Net sales: United States $ 44,034 $ 32,400 International 14,105 6,986 Total $ 58,139 $ 39,386 Fixed assets, net: United States $ 2,252 $ 1,770 International 529 914 Total $ 2,781 $ 2,684 Sales to international customers were 24% and 18% of total sales in 2022 and 2021, respectively. Sales to Europe represented 68% and 53%, sales to the Pacific Rim (which includes Australia and Asia) represented 28% and 35%, and sales to Canada represented 4% and 11% of total international sales in 2022 and 2021, respectively. International long-lived assets consist of net fixed assets located at our foreign subsidiary in the UK, as well as our contract manufacturer in Thailand.

Leases

Leases	12 Months Ended
	Dec. 31, 2022
Leases [Abstract]
Leases	14. Leases Operating lease expense was $ million for both years ended December 31, and and is reported as Operating costs include short-term lease costs, which were immaterial during the period. The following information represents supplemental disclosure for the statement of cash flows related to operating leases (in thousands): Years Ended December 31, 2022 2021 Operating cash outflows from leases $ 967 $ 982 The following summarizes additional information related to our leases: Years Ended December 31, 2022 2021 Weighted average remaining lease term (in years) 2.7 3.5 Weighted average discount rate 4.5 % 4.4 % The maturity of the Company’s operating lease liabilities are as follows (in thousands): December 31, 2022 2023 $ 972 2024 1,022 2025 710 2026 20 Total undiscounted lease payments 2,724 Less imputed interest 166 Total lease liabilities $ 2,558

Quarterly results of operations

Quarterly results of operations (unaudited)	12 Months Ended
	Dec. 31, 2022
Quarterly results of operations (unaudited) [Abstract]
Quarterly results of operations (unaudited)	15. Quarterly results of operations (unaudited) Our quarterly results of operations for 2022 and 2021 are as follows: Quarter Ended (In thousands, except per share amounts) March 31 June 30 September 30 December 31 2022: Net sales $ 9,702 $ 12,623 $ 17,856 $ 17,958 Gross profit 2,566 5,434 8,193 8,219 Net (loss) income (4,348 ) (2,376 ) 528 260 Net (loss) income per common share: Basic (0.44 ) (0.24 ) 0.05 0.03 Diluted (0.44 ) (0.24 ) 0.05 0.03 2021: Net sales $ 8,301 $ 9,325 $ 10,637 $ 11,123 Gross profit 3,339 3,432 4,305 4,306 Net (loss) income (2,089 ) (2,030 ) 901 (823 ) Net (loss) income per common share: Basic (0.23 ) (0.23 ) 0.10 (0.08 ) Diluted (0.23 ) (0.23 ) 0.09 (0.08 )

Change in accounting principle

Change in accounting principle	12 Months Ended
	Dec. 31, 2022
Change in accounting principle [Abstract]
Change in accounting principle	16. Change in accounting principle Effective April 1, 2022, TransAct changed its method of inventory valuation from standard costing which approximated the FIFO costing methodology 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 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 Consolidated Statements of Operations for the periods presented are as follows: Three months ended December 31, 2021 Year ended December 31, 2021 Under FIFO Cost Under Average Cost Effect of Change Under FIFO Cost Under Average Cost Effect of Change Cost of sales $ 6,705 $ 6,817 $ 112 $ 24,137 $ 24,004 $ (133 ) Gross profit 4,418 4,306 (112 ) 15,249 15,382 133 Operating loss (2,485 ) (2,597 ) (112 ) (9,510 ) (9,377 ) 133 Loss before income taxes (1,124 ) (1,236 ) (112 ) (6,216 ) (6,083 ) 133 Income tax benefit 389 413 24 2,071 2,042 (29 ) Net loss (735 ) (823 ) (88 ) (4,145 ) (4,041 ) 104 Net loss per common share: Basic $ (0.07 ) $ (0.08 ) $ (0.01 ) $ (0.45 ) $ (0.43 ) $ 0.02 Diluted $ (0.07 ) $ (0.08 ) $ (0.01 ) $ (0.45 ) $ (0.43 ) $ 0.02 Shares used in per-share calculation: Basic 9,848 9,848 9,298 9,298 Diluted 9,848 9,848 9,298 9,298 The effect of the changes made to the Company’s Consolidated Statements of Comprehensive Loss for the periods presented are as follows: Three months ended December 31, 2021 Year ended December 31, 2021 Under FIFO Cost Under Average Cost Effect of Change Under FIFO Cost Under Average Cost Effect of Change Net loss $ (735 ) $ (823 ) $ (88 ) $ (4,145 ) $ (4,041 ) $ 104 Comprehensive loss (662 ) (750 ) (88 ) (3,964 ) (3,860 ) 104 The effect of the changes made to the Company’s Consolidated Statements of Cash Flows for the periods presented are as follows: Year ended December 31, 2021 Under FIFO Cost Under Average Cost Effect of Change Net loss $ (4,145 ) $ (4,041 ) $ 104 Deferred income tax benefit (2,150 ) (2,121 ) 29 Inventories 3,573 3,440 (133 ) The effect of the changes made to the Company’s Consolidated Statements of Changes in Shareholders’ Equity for the periods presented are as follows: Three months ended December 31, 2021 Year ended December 31, 2021 Under FIFO Cost Under Average Cost Effect of Change Under FIFO Cost Under Average Cost Effect of Change Equity beginning balance $ 39,280 $ 39,361 $ 81 $ 30,236 $ 30,125 $ (111 ) Retained earnings - beginning of period 16,308 16,389 81 19,718 19,607 (111 ) Net loss (735 ) (823 ) (88 ) (4,145 ) (4,041 ) 104 Retained earnings - end of period 15,573 15,566 (7 ) 15,573 15,566 (7 ) Equity ending balance 38,991 38,984 (7 ) 38,991 38,984 (7 )

Subsequent events

Subsequent events	12 Months Ended
	Dec. 31, 2022
Subsequent events [Abstract]
Subsequent events	17. Subsequent events In the first quarter of 2023, we collected the $1.5 million employee retention credit receivable from the U.S. Government. The Company has evaluated all other events or transactions that occurred up to the date the consolidated financial statements were available to issue. Based upon this review, the Company did not identify any other subsequent events that would have required adjustment or disclosure in the consolidated financial statements.

Summary of significant accoun_2

Summary of significant accounting policies (Policies)	12 Months Ended
	Dec. 31, 2022
Summary of significant accounting policies [Abstract]
Principles of consolidation	Principles of consolidation:
Use of estimates	Use of estimates :
Segment reporting	Segment reporting :
Cash and cash equivalents	Cash and cash equivalents :
Allowance for doubtful accounts	Allowance for doubtful accounts : The following table summarizes the activity recorded in the valuation account for accounts receivable: Years Ended , (In thousands) 2022 2021 Balance, beginning of period $ 219 $ 220 Additions charged to costs and expenses 140 – Deductions (8 ) (1 ) Balance, end of period $ 351 $ 219
Inventories	Inventories: Effective April 1, 2022, TransAct changed its method of inventory valuation from standard costing which approximated the “first-in, first-out” (“FIFO”) costing methodology to the average costing methodology. Comparative financial statements of prior periods have been adjusted to apply the new method retrospectively. See Note 16 for a discussion of the change in accounting principle during the second quarter of 2022.
Fixed assets	Fixed assets:
Leases	Leases: We have elected certain practical expedients available under ASC 842 upon adoption. We have applied the practical expedient for short-term leases. We have lease agreements that include lease and non-lease components, and we have not elected the practical expedients to combine these components for any of our 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. We determine if an arrangement contains a lease at inception. Our leases are included in “Right-of-use asset” and “Lease liability” in our Consolidated Balance Sheets. Right of use assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Lease right of use assets and liabilities are recognized at the commencement date of the lease based on the present value of lease payments over the lease term. 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. On April 30, 2021, we entered into an amendment to modify the expiration date of our lease on our Hamden, CT facility. The lease, which was last amended on January 3, 2017, was scheduled to expire on April 30, 2027. The lease amendment modified the expiration date to October 31, 2025. The modification resulted in reducing the right-of-use-asset and lease liability by $0.3 million. Lease expense is recognized on a straight-line basis over the lease term. As most of our leases do not provide an implicit rate, the Company determines its incremental borrowing rate by using the rate of interest that the Company would have to pay to borrow on a collateralized basis over a similar term, an amount equal to the lease payments in a similar economic environment. Our lease right of use asset excludes lease incentives. Our leases have remaining lease terms of one year to four years, some of which include options to extend. The exercise of lease renewal options is at our sole discretion and our lease right of use assets and liabilities reflect only the options we are reasonably certain that we will exercise. Lease expense is recognized on a straight-line basis over the lease term.
Goodwill and intangible assets	Goodwill and intangible assets : As of December 31, 2022, we have determined that no goodwill or intangible asset impairment has occurred and the fair value of goodwill was substantially higher than our carrying value based on our assessment as of December 31, 2022 when our annual review for impairment was performed.
Revenue recognition	Revenue recognition: The transaction price is determined based on the consideration to which the Company will be entitled in exchange for transferring services to the customer. To the extent the transaction price includes variable consideration, such as price protection, reserves for returns and other allowances, the Company estimates the amount of variable consideration that should be included in the transaction price utilizing either the “expected value” method or the “most likely amount” method depending on the nature of the variable consideration. Variable consideration is included in the transaction price if, in the Company’s judgment, it is probable that a significant future reversal of cumulative revenue under the contract will not occur. For a majority of our revenue, which consists of printers, terminals, consumables, and replacement parts, the Company recognizes revenue as of a point of time. The transaction price is recognized upon shipment of the order when control of the goods is transferred to the customer and at the time the performance obligation is fulfilled. We also sell a software solution in our casino and gaming market, EPICENTRAL, that enables casino operators to create promotional coupons and marketing messages and to print them in real time at the slot machine. EPICENTRAL is primarily comprised of both a software component, which is licensed to the customer, and a hardware component. EPICENTRAL software and hardware are integrated to deliver the system’s full functionality. The transaction prices from EPICENTRAL software license and hardware are recognized upon installation and formal acceptance by the customer when control of the license is transferred to the customer. For out-of-warranty repairs, the transaction price is recognized after the repair work is completed and the printer or terminal is returned to the customer, as control of the product is transferred to the customer and our performance obligation is completed. Performance obligations are satisfied over time if the customer receives the benefits as we perform work, if the customer controls the asset as it is being produced, or if the product being produced for the customer has no alternative use and we have a contractual right to payment. For our separately priced extended warranty, BOHA! cloud-based software applications, technical support for our food service technology terminals and maintenance agreements (including free one-year maintenance received by customers upon completion of EPICENTRAL installation) revenue is recognized over time as the customer receives the benefit. The transaction price from the maintenance services is recognized ratably over time, using output methods, as control of the services is transferred to the customer. Our cloud-based BOHA! software allows customers to use hosted software over the contract period on a subscription basis without taking possession of the software and the subscription price is recognized ratably over the contract period. For extended warranties, the transaction price is recognized ratably over the warranty period, using output methods, as control of the services is transferred to the customer. When there is more than one performance obligation in a customer arrangement, the Company typically uses the “standalone selling price” method to determine the transaction price to allocate to each performance obligation. The Company sells the performance obligations separately and has established standalone selling prices for its products and services. In the case of an overall price discount, the discount is applied to each performance obligation proportionately based on standalone selling price. To determine the standalone selling price for initial EPICENTRAL installations, the Company uses the adjusted market assessment approach. For contracts with terms of less than 12 months, the Company expenses sales commissions as they are incurred, since the expected amortization period of the cost to obtain a contract is less than 12 months. Disaggregation of revenue The following table disaggregates 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. Year Ended December 31, 2022 (In thousands) United States International Total Food service technology $ 11,602 $ 762 $ 12,364 POS automation 10,657 2 10,659 Casino and gaming 17,686 12,343 30,029 TransAct Services Group 4,089 998 5,087 Total net sales $ 44,034 $ 14,105 $ 58,139 Year Ended (In thousands) United States International Total Food service technology $ 11,738 $ 887 $ 12,625 POS automation 4,817 8 4,825 Casino and gaming 10,173 5,129 15,302 Printrex 171 460 631 TransAct Services Group 5,501 502 6,003 Total net sales $ 32,400 $ 6,986 $ 39,386 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” on the Consolidated Balance Sheets. We first recorded contract assets during 2020 upon the start of a long-term BOHA! contract. Contract liabilities consist of customer prepayments and deferred revenue. Customer prepayments are reported as “Accrued Liabilities” in current liabilities in the Consolidated Balance Sheets and represent customer payments made in advance of performance obligations in instances where credit has not been extended and is 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. During the year ended December 31, 2022, we recognized revenue of $1.1 million related to our contract liabilities as of December 31, 2021. Net contract (liabilities) assets consist of the following: December 31, (In thousands) 2022 2021 Unbilled receivables, current $ 392 $ 314 Unbilled receivables, non-current 163 308 Customer pre-payments (101 ) (99 ) Deferred revenue, current (1,329 ) (805 ) Deferred revenue, non-current (143 ) (186 ) Net contract (liabilities) assets $ (1,018 ) $ (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 December 31, 2022, the aggregate amount of the transaction price allocated to remaining performance obligations was $29.0 million. The Company expects to recognize revenue on $28.7 million of its remaining performance obligations within the next 12 months following December 31, 2022, $0.2 million within the next 24 36
Concentration of credit risk	Concentration of credit risk: Accounts receivable from customers representing 10% or more of total accounts receivable, net were as follows: December 31, 2022 2021 Chain Link Services – 10 % International Gaming Technology (“IGT”) 12 % 3 % NCR Corporation 3 % 11 % The Bright Group 11 % – Sales to customers representing 10% or more of total net sales were as follows: December 31, 2022 2021 IGT 10 % 9 %
Engineering, design and product development	Engineering, design and product development: Costs incurred in the engineering, design and product development of a computer software product are charged to expense until technological feasibility has been established, at which point all material software costs are capitalized within Intangible assets in our Consolidated Balance Sheet until the product is available for general release to customers. While judgment is required in determining when technological feasibility of a product is established, we have determined that it is reached after all high-risk development issues have been documented in a formal detailed plan design. The amortization of these costs has been included in cost of sales over the estimated life of the product. During 2019, we contracted several third-parties to develop software for our food service technology products, the cost for which we capitalized. Unamortized development costs for such software was $242 thousand and $396 thousand as of December 31, 2022 and 2021, respectively. The total amount charged to cost of sales for capitalized software development costs was $154 thousand in both 2022 and 2021.
Advertising	Advertising:
Income taxes	Income taxes:
Foreign Currency Translation	Foreign currency translation:
Share-based payments	Share-based payments: We use the Black-Scholes option-pricing model to calculate the fair value of share-based awards. The key assumptions for this valuation method include the expected term of the option, stock price volatility, risk-free interest rate, dividend yield, market price of our underlying stock and exercise price. Many of these assumptions require judgment and are highly sensitive in the determination of compensation expense. Forfeitures are recognized as they occur.
Net income and loss per share	Net loss per share:
Change in accounting principle and Reclassificiations	Change in accounting principle: See Note 16 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 . Reclassifications:

Summary of significant accoun_3

Summary of significant accounting policies (Tables)	12 Months Ended
	Dec. 31, 2022
Summary of significant accounting policies [Abstract]
Allowance for Doubtful Accounts	The following table summarizes the activity recorded in the valuation account for accounts receivable: Years Ended , (In thousands) 2022 2021 Balance, beginning of period $ 219 $ 220 Additions charged to costs and expenses 140 – Deductions (8 ) (1 ) Balance, end of period $ 351 $ 219
Disaggregation of Revenue	Disaggregation of revenue The following table disaggregates 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. Year Ended December 31, 2022 (In thousands) United States International Total Food service technology $ 11,602 $ 762 $ 12,364 POS automation 10,657 2 10,659 Casino and gaming 17,686 12,343 30,029 TransAct Services Group 4,089 998 5,087 Total net sales $ 44,034 $ 14,105 $ 58,139 Year Ended (In thousands) United States International Total Food service technology $ 11,738 $ 887 $ 12,625 POS automation 4,817 8 4,825 Casino and gaming 10,173 5,129 15,302 Printrex 171 460 631 TransAct Services Group 5,501 502 6,003 Total net sales $ 32,400 $ 6,986 $ 39,386
Net Contract Liabilities	Net contract (liabilities) assets consist of the following: December 31, (In thousands) 2022 2021 Unbilled receivables, current $ 392 $ 314 Unbilled receivables, non-current 163 308 Customer pre-payments (101 ) (99 ) Deferred revenue, current (1,329 ) (805 ) Deferred revenue, non-current (143 ) (186 ) Net contract (liabilities) assets $ (1,018 ) $ (468 )
Concentration of Credit Risk	Accounts receivable from customers representing 10% or more of total accounts receivable, net were as follows: December 31, 2022 2021 Chain Link Services – 10 % International Gaming Technology (“IGT”) 12 % 3 % NCR Corporation 3 % 11 % The Bright Group 11 % – Sales to customers representing 10% or more of total net sales were as follows: December 31, 2022 2021 IGT 10 % 9 %

Inventories (Tables)

Inventories (Tables)	12 Months Ended
	Dec. 31, 2022
Inventories [Abstract]
Inventories	The components of inventories are: December 31, (In thousands) 2022 2021 * Raw materials and purchased component parts $ 8,884 $ 5,499 Work-in-process – 11 Finished goods 3,144 2,201 $ 12,028 $ 7,711 * see Note 16, Change in Accounting Principle

Fixed assets, net (Tables)

Fixed assets, net (Tables)	12 Months Ended
	Dec. 31, 2022
Fixed assets, net [Abstract]
Fixed Assets, Net	The components of fixed assets, net are: December 31, (In thousands) 2022 2021 Tooling, machinery and equipment $ 6,859 $ 6,694 Furniture and office equipment 1,882 1,660 Computer software and equipment 8,348 6,973 Leasehold improvements 2,883 2,872 19,972 18,199 Less: Accumulated depreciation and amortization (17,656 ) (16,736 ) 2,316 1,463 Construction in-process 465 1,221 $ 2,781 $ 2,684

Intangible assets, net (Tables)

Intangible assets, net (Tables)	12 Months Ended
	Dec. 31, 2022
Intangible assets, net [Abstract]
Identifiable Intangible Assets	Identifiable intangible assets are recorded in Intangible assets, net in the accompanying Consolidated Balance Sheets and are comprised of the following: December 31, 2022 2021 (In thousands) Gross Amount Accumulated Amortization Gross Amount Accumulated Amortization Purchased technology $ 1,591 $ (1,349 ) $ 1,591 $ (1,195 ) Patents 15 (15 ) 15 (14 ) Total $ 1,606 $ (1,364 ) $ 1,606 $ (1,209 )

Accrued liabilities (Tables)

Accrued liabilities (Tables)	12 Months Ended
	Dec. 31, 2022
Accrued liabilities [Abstract]
Accrued Liabilities	The components of accrued liabilities are: December 31, (In thousands) 2022 2021 Salaries and compensation related $ 2,744 $ 2,854 Taxes 530 79 Professional and consulting 371 285 Other 432 676 $ 4,077 $ 3,894

Stock incentive plans (Tables)

Stock incentive plans (Tables)	12 Months Ended
	Dec. 31, 2022
Stock incentive plans [Abstract]
Assumptions Used in Option Valuation Calculations	The table below indicates the key assumptions (on a weighted-average basis) used in the option valuation calculations for options granted in 2022 and 2021 and a discussion of our methodology for developing each of the assumptions used in the valuation model: Year Ended December 31, 2022 2021 Expected option term (in years) 7.1 6.9 Expected volatility 51.3 % 50.5 % Risk-free interest rate 2.2 % 1.2 % Dividend yield 0.0 % 0.0 %
Stock Option Activity	Equity award activity in the 2005 Equity Incentive Plan and the 2014 Equity Incentive Plan is summarized below: Stock Options Restricted Stock Units Number of Shares Average Price* Number of Units Average Price** Outstanding at December 31, 2021 1,269,355 $ 9.18 155,225 $ 10.28 Granted 181,100 8.16 129,700 8.78 Exercised (17,500 ) 6.70 (47,931 ) 10.22 Forfeited (49,250 ) 9.38 (22,708 ) 10.27 Expired (27,750 ) 8.51 – – Outstanding at December 31, 2022 1,355,955 $ 9.08 214,286 $ 9.28 * weighted average exercise price per share ** weighted average grant stock price per share
Equity Awards Vested and Expected to Vest	The following summarizes information about equity awards outstanding that are vested and expect to vest and equity awards that are exercisable at December 31, 2022: Equity Awards Vested and Expected to Vest Equity Awards That Are Exercisable Awards Average Price* Aggregate Intrinsic Value Remaining Term** Awards Average Price* Aggregate Intrinsic Value Remaining Term** Stock Options 1,355,955 $ 9.08 $ 224 5.0 971,865 $ 9.23 $ 93 3.7 Restricted stock units 145,687 – 921 2.1 – – – – * weighted average exercise price per share ** weighted-average contractual remaining term in years

Income taxes (Tables)

Income taxes (Tables)	12 Months Ended
	Dec. 31, 2022
Income taxes [Abstract]
Components of Income Tax Benefit	The components of the income tax benefit are as follows: December 31, (In thousands) 2022 2021 Current: Federal $ 149 $ 26 State 110 51 Foreign (83 ) 2 176 79 Deferred: Federal (1,924 ) (2,057 ) State (217 ) (62 ) Foreign – (2 ) (2,141 ) (2,121 ) Income tax benefit $ (1,965 ) $ (2,042 )
Deferred Tax Assets and Liabilities	Deferred income taxes arise from temporary differences between the tax basis of assets and liabilities and their reported amounts in the Consolidated Financial Statements. Our deferred tax assets and liabilities were comprised of the following: December 31, (In thousands) 2022 2021 Deferred tax assets: Federal net operating losses $ 2,297 $ 1,978 Foreign net operating losses 676 624 State net operating losses 149 – Depreciation – 306 Capitalized R&D expenses 1,708 – Inventory reserves 648 710 Deferred revenue 41 24 Warranty reserve 17 22 Stock compensation expense 769 796 Other accrued compensation 222 308 R&D credit carryforward 1,238 901 Other liabilities and reserves 463 250 Gross deferred tax assets 8,228 5,919 Valuation allowance (656 ) (733 ) Net deferred tax assets 7,572 5,186 Deferred tax liabilities: Depreciation 196 – Other 49 43 Net deferred tax liabilities 245 43 Total net deferred tax assets $ 7,327 $ 5,143
Valuation Allowance on Deferred Tax Assets	As of December 31, 2022 and 2021, we had a $656 thousand and $733 thousand, respectively, of valuation allowances on our net operating loss carryforwards. The following table summarizes the activity recorded in the valuation allowance on the deferred tax assets: Year Ended December 31, (In thousands) 2022 2021 Balance, beginning of period $ 733 $ 659 Subtractions released to income tax provisions (77 ) – Additions charged to income tax provision – 74 Balance, end of period $ 656 $ 733
Statutory to Effective Tax Rate Reconciliation	Differences between the U.S. statutory federal income tax rate and our effective income tax rate are analyzed below: Year Ended December 31, 2022 2021 Federal statutory rate 21.0 % 21.0 % PPP loan forgiveness – 7.4 R&D credit 4.3 7.1 Stock award excess tax benefit – 0.3 State income taxes, net of federal income taxes 1.1 0.1 Business meals and entertainment – (0.2 ) Miscellaneous permanent items – (0.3 ) Uncertain tax positions (0.5 ) (0.4 ) Stock option cancellations (1.9 ) (0.6 ) Valuation allowance and tax accruals 1.0 (1.2 ) Other (0.1 ) 0.4 Effective tax rate 24.9 % 33.6 %
Unrecognized Tax Benefits	We had $142 thousand and $144 thousand of total gross unrecognized tax benefits at December 31, 2022 and 2021, respectively that, if recognized, would favorably affect the effective income tax rate in any future periods. We are not aware of any events that could occur within the next twelve months that could cause a significant change in the total amount of unrecognized tax benefits. A tabular reconciliation of the gross amounts of unrecognized tax benefits at the beginning and end of the year is as follows: December 31, (In thousands) 2022 2021 Balance, beginning of period $ 144 $ 121 Tax positions taken during the current period 26 47 Lapse of statute of limitations (28 ) (24 ) Balance, end of period $ 142 $ 144

Earnings per share (Tables)

Earnings per share (Tables)	12 Months Ended
	Dec. 31, 2022
Earnings per share [Abstract]
Earnings per Share	Earnings per share was computed as follows (in thousands, except per share amounts): Years Ended December 31, 2022 2021 Net loss $ (5,936 ) $ (4,041 ) Shares: Basic: Weighted average common shares outstanding 9,905 9,298 Add: Dilutive effect of outstanding equity awards as determined by the treasury stock method – – Diluted: Weighted average common and common equivalent shares outstanding 9,905 9,298 Net loss per common share: Basic $ (0.60 ) $ (0.43 ) Diluted (0.60 ) (0.43 )

Geographic area information (Ta

Geographic area information (Tables)	12 Months Ended
	Dec. 31, 2022
Geographic area information [Abstract]
Net Sales and Fixed Assets by Geographic Area	Information regarding our operations by geographic area is contained in the following table. These amounts in the geographic area table are based on the location of the customer and asset. Years Ended December 31, (In thousands) 2022 2021 Net sales: United States $ 44,034 $ 32,400 International 14,105 6,986 Total $ 58,139 $ 39,386 Fixed assets, net: United States $ 2,252 $ 1,770 International 529 914 Total $ 2,781 $ 2,684

Leases (Tables)

Leases (Tables)	12 Months Ended
	Dec. 31, 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): Years Ended December 31, 2022 2021 Operating cash outflows from leases $ 967 $ 982
Additional Information Related to Leases	The following summarizes additional information related to our leases: Years Ended December 31, 2022 2021 Weighted average remaining lease term (in years) 2.7 3.5 Weighted average discount rate 4.5 % 4.4 %
Maturity of Operating Lease Liabilities	The maturity of the Company’s operating lease liabilities are as follows (in thousands): December 31, 2022 2023 $ 972 2024 1,022 2025 710 2026 20 Total undiscounted lease payments 2,724 Less imputed interest 166 Total lease liabilities $ 2,558

Quarterly results of operatio_2

Quarterly results of operations (unaudited) (Tables)	12 Months Ended
	Dec. 31, 2022
Quarterly results of operations (unaudited) [Abstract]
Quarterly Results of Operations	Our quarterly results of operations for 2022 and 2021 are as follows: Quarter Ended (In thousands, except per share amounts) March 31 June 30 September 30 December 31 2022: Net sales $ 9,702 $ 12,623 $ 17,856 $ 17,958 Gross profit 2,566 5,434 8,193 8,219 Net (loss) income (4,348 ) (2,376 ) 528 260 Net (loss) income per common share: Basic (0.44 ) (0.24 ) 0.05 0.03 Diluted (0.44 ) (0.24 ) 0.05 0.03 2021: Net sales $ 8,301 $ 9,325 $ 10,637 $ 11,123 Gross profit 3,339 3,432 4,305 4,306 Net (loss) income (2,089 ) (2,030 ) 901 (823 ) Net (loss) income per common share: Basic (0.23 ) (0.23 ) 0.10 (0.08 ) Diluted (0.23 ) (0.23 ) 0.09 (0.08 )

Change in accounting principle

Change in accounting principle (Tables)	12 Months Ended
	Dec. 31, 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 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 Consolidated Statements of Operations for the periods presented are as follows: Three months ended December 31, 2021 Year ended December 31, 2021 Under FIFO Cost Under Average Cost Effect of Change Under FIFO Cost Under Average Cost Effect of Change Cost of sales $ 6,705 $ 6,817 $ 112 $ 24,137 $ 24,004 $ (133 ) Gross profit 4,418 4,306 (112 ) 15,249 15,382 133 Operating loss (2,485 ) (2,597 ) (112 ) (9,510 ) (9,377 ) 133 Loss before income taxes (1,124 ) (1,236 ) (112 ) (6,216 ) (6,083 ) 133 Income tax benefit 389 413 24 2,071 2,042 (29 ) Net loss (735 ) (823 ) (88 ) (4,145 ) (4,041 ) 104 Net loss per common share: Basic $ (0.07 ) $ (0.08 ) $ (0.01 ) $ (0.45 ) $ (0.43 ) $ 0.02 Diluted $ (0.07 ) $ (0.08 ) $ (0.01 ) $ (0.45 ) $ (0.43 ) $ 0.02 Shares used in per-share calculation: Basic 9,848 9,848 9,298 9,298 Diluted 9,848 9,848 9,298 9,298 The effect of the changes made to the Company’s Consolidated Statements of Comprehensive Loss for the periods presented are as follows: Three months ended December 31, 2021 Year ended December 31, 2021 Under FIFO Cost Under Average Cost Effect of Change Under FIFO Cost Under Average Cost Effect of Change Net loss $ (735 ) $ (823 ) $ (88 ) $ (4,145 ) $ (4,041 ) $ 104 Comprehensive loss (662 ) (750 ) (88 ) (3,964 ) (3,860 ) 104 The effect of the changes made to the Company’s Consolidated Statements of Cash Flows for the periods presented are as follows: Year ended December 31, 2021 Under FIFO Cost Under Average Cost Effect of Change Net loss $ (4,145 ) $ (4,041 ) $ 104 Deferred income tax benefit (2,150 ) (2,121 ) 29 Inventories 3,573 3,440 (133 ) The effect of the changes made to the Company’s Consolidated Statements of Changes in Shareholders’ Equity for the periods presented are as follows: Three months ended December 31, 2021 Year ended December 31, 2021 Under FIFO Cost Under Average Cost Effect of Change Under FIFO Cost Under Average Cost Effect of Change Equity beginning balance $ 39,280 $ 39,361 $ 81 $ 30,236 $ 30,125 $ (111 ) Retained earnings - beginning of period 16,308 16,389 81 19,718 19,607 (111 ) Net loss (735 ) (823 ) (88 ) (4,145 ) (4,041 ) 104 Retained earnings - end of period 15,573 15,566 (7 ) 15,573 15,566 (7 ) Equity ending balance 38,991 38,984 (7 ) 38,991 38,984 (7 )

Description of business (Detail

Description of business (Details) $ in Thousands		12 Months Ended
	Aug. 16, 2021 USD ($) shares	Dec. 31, 2022 USD ($) Segment Solution	Dec. 31, 2021 USD ($)	May 01, 2020 USD ($)	Mar. 13, 2020 USD ($)
Description of business [Abstract]
Number of operating segments | Segment		1
Number of software solutions from the after-market side of the business | Solution		2
Description of business [Abstract]
Proceeds from Public Offering	$ 11,200	$ 0	$ 12,214
Shares sold in Public Offering (in shares) | shares	842,375
Gain from employee retention credit		$ 0	$ 1,500
PPP Loan [Member]
Description of business [Abstract]
Face amount				$ 2,200
Sienna Credit Facility [Member]
Description of business [Abstract]
Maximum borrowing capacity					$ 10,000

Summary of significant accoun_4

Summary of significant accounting policies, Segment reporting (Details)	12 Months Ended
	Dec. 31, 2022 Segment
Segment reporting [Abstract]
Number of business segments	1

Summary of significant accoun_5

Summary of significant accounting policies, Allowance for doubtful accounts (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Allowance for doubtful accounts [Roll Forward]
Balance, beginning of period	$ 219	$ 220
Additions charged to costs and expenses	140	0
Deductions	(8)	(1)
Balance, end of period	$ 351	$ 219

Summary of significant accoun_6

Summary of significant accounting policies, Fixed assets (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Fixed assets [Abstract]
Depreciation expense	$ 1.1	$ 0.7
Tooling [Member]
Fixed assets [Abstract]
Estimated useful life	5 years
Machinery and Equipment [Member]
Fixed assets [Abstract]
Estimated useful life	10 years
Furniture and Office Equipment [Member] | Minimum [Member]
Fixed assets [Abstract]
Estimated useful life	5 years
Furniture and Office Equipment [Member] | Maximum [Member]
Fixed assets [Abstract]
Estimated useful life	10 years
Computer Software and Equipment [Member] | Minimum [Member]
Fixed assets [Abstract]
Estimated useful life	3 years
Computer Software and Equipment [Member] | Maximum [Member]
Fixed assets [Abstract]
Estimated useful life	7 years

Summary of significant accoun_7

Summary of significant accounting policies, Leases (Details) - USD ($) $ in Millions	Apr. 26, 2022	Apr. 20, 2021	Dec. 31, 2022
Minimum [Member]
Leases [Abstract]
Remaining lease terms			1 year
Maximum [Member]
Leases [Abstract]
Remaining lease terms			4 years
Facility in Las Vegas, Nevada [Member]
Leases [Abstract]
Increase (decrease) in right-of-use-asset	$ 0.8
Increase (decrease) in operating lease liability	$ 0.8
Facility in Hamden, Connecticut [Member]
Leases [Abstract]
Increase (decrease) in right-of-use-asset		$ (0.3)
Increase (decrease) in operating lease liability		$ (0.3)

Summary of significant accoun_8

Summary of significant accounting policies, Goodwill and intangible assets (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($)
Summary of significant accounting policies [Abstract]
Impairment of goodwill and intangible assets	$ 0

Summary of significant accoun_9

Summary of significant accounting policies, Revenue recognition - Disaggregation of revenue (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2022	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2022	Dec. 31, 2021
Summary of significant accounting policies [Abstract]
Term of free maintenance upon completion of software installation									1 year
Disaggregation of revenue [Abstract]
Net sales	$ 17,958	$ 17,856	$ 12,623	$ 9,702	$ 11,123	$ 10,637	$ 9,325	$ 8,301	$ 58,139	$ 39,386
United States [Member]
Disaggregation of revenue [Abstract]
Net sales									44,034	32,400
International [Member]
Disaggregation of revenue [Abstract]
Net sales									14,105	6,986
Food Service Technology [Member]
Disaggregation of revenue [Abstract]
Net sales									12,364	12,625
Food Service Technology [Member] | United States [Member]
Disaggregation of revenue [Abstract]
Net sales									11,602	11,738
Food Service Technology [Member] | International [Member]
Disaggregation of revenue [Abstract]
Net sales									762	887
POS Automation [Member]
Disaggregation of revenue [Abstract]
Net sales									10,659	4,825
POS Automation [Member] | United States [Member]
Disaggregation of revenue [Abstract]
Net sales									10,657	4,817
POS Automation [Member] | International [Member]
Disaggregation of revenue [Abstract]
Net sales									2	8
Casino and Gaming [Member]
Disaggregation of revenue [Abstract]
Net sales									30,029	15,302
Casino and Gaming [Member] | United States [Member]
Disaggregation of revenue [Abstract]
Net sales									17,686	10,173
Casino and Gaming [Member] | International [Member]
Disaggregation of revenue [Abstract]
Net sales									12,343	5,129
Printrex [Member]
Disaggregation of revenue [Abstract]
Net sales										631
Printrex [Member] | United States [Member]
Disaggregation of revenue [Abstract]
Net sales										171
Printrex [Member] | International [Member]
Disaggregation of revenue [Abstract]
Net sales										460
TransAct Services Group [Member]
Disaggregation of revenue [Abstract]
Net sales									5,087	6,003
TransAct Services Group [Member] | United States [Member]
Disaggregation of revenue [Abstract]
Net sales									4,089	5,501
TransAct Services Group [Member] | International [Member]
Disaggregation of revenue [Abstract]
Net sales									$ 998	$ 502

Summary of significant accou_10

Summary of significant accounting policies, Revenue recognition - Contract balances (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2022
Summary of significant accounting policies [Abstract]
Revenue recognized	$ 1,100
Contract liabilities [Abstract]
Unbilled receivables, current	314	$ 392
Unbilled receivables, non-current	308	163
Customer pre-payments	(99)	(101)
Deferred revenue, current	(805)	(1,329)
Deferred revenue, non-current	(186)	(143)
Net contract (liabilities) assets	$ (468)	$ (1,018)

Summary of significant accou_11

Summary of significant accounting policies, Revenue Recognition - Remaining performance obligations (Details) $ in Millions	Dec. 31, 2022 USD ($)
Remaining performance obligations [Abstract]
Remaining performance obligations	$ 29
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01
Remaining performance obligations [Abstract]
Remaining performance obligations	$ 28.7
Expected timing of satisfaction, period	12 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01
Remaining performance obligations [Abstract]
Remaining performance obligations	$ 0.2
Expected timing of satisfaction, period	12 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01
Remaining performance obligations [Abstract]
Expected timing of satisfaction, period	12 months

Summary of significant accou_12

Summary of significant accounting policies, Concentration of credit risk (Details) - Customer Concentration Risk [Member]	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Accounts Receivable [Member] | Chain Link Services [Member]
Concentration of credit risk [Abstract]
Concentration risk percentage	0%	10%
Accounts Receivable [Member] | IGT [Member]
Concentration of credit risk [Abstract]
Concentration risk percentage	12%	3%
Accounts Receivable [Member] | NCR Corporation [Member]
Concentration of credit risk [Abstract]
Concentration risk percentage	3%	11%
Accounts Receivable [Member] | The Bright Group [Member]
Concentration of credit risk [Abstract]
Concentration risk percentage	11%	0%
Sales [Member] | IGT [Member]
Concentration of credit risk [Abstract]
Concentration risk percentage	10%	9%

Summary of significant accou_13

Summary of significant accounting policies, Engineering, design and product development (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Engineering, design and product development [Abstract]
Research and development expense	$ 8,570	$ 7,475
Unamortized development costs of software	242	396
Amortization of capitalized software development costs	$ 154	$ 154

Summary of significant accou_14

Summary of significant accounting policies, Advertising (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Advertising [Abstract]
Advertising expense	$ 3.1	$ 1.8

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Inventories [Abstract]
Raw materials and purchased component parts	$ 8,884	$ 5,499
Work-in-process	0	11
Finished goods	3,144	2,201
Inventories	$ 12,028	$ 7,711

Fixed assets, net (Details)

Fixed assets, net (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Fixed assets [Abstract]
Fixed assets	$ 19,972	$ 18,199
Less: Accumulated depreciation and amortization	(17,656)	(16,736)
Fixed assets, net	2,781	2,684
Tooling, Machinery and Equipment [Member]
Fixed assets [Abstract]
Fixed assets	6,859	6,694
Furniture and Office Equipment [Member]
Fixed assets [Abstract]
Fixed assets	1,882	1,660
Computer Software and Equipment [Member]
Fixed assets [Abstract]
Fixed assets	8,348	6,973
Leasehold Improvements [Member]
Fixed assets [Abstract]
Fixed assets	2,883	2,872
Fixed Assets, Excluding Construction in-Process [Member]
Fixed assets [Abstract]
Fixed assets, net	2,316	1,463
Construction in-Process [Member]
Fixed assets [Abstract]
Fixed assets	$ 465	$ 1,221

Intangible assets, net (Details

Intangible assets, net (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Identifiable intangible assets [Abstract]
Gross amount	$ 1,606	$ 1,606
Accumulated amortization	(1,364)	(1,209)
Amortization expense	155	186
Future amortization expense [Abstract]
2023	154
2024	88
Thereafter	0
Purchased Technology [Member]
Identifiable intangible assets [Abstract]
Gross amount	1,591	1,591
Accumulated amortization	(1,349)	(1,195)
Patents [Member]
Identifiable intangible assets [Abstract]
Gross amount	15	15
Accumulated amortization	$ (15)	$ (14)

Accrued liabilities (Details)

Accrued liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Accrued liabilities [Abstract]
Salaries and compensation related	$ 2,744	$ 2,854
Taxes	530	79
Professional and consulting	371	285
Other	432	676
Accrued liabilities	$ 4,077	$ 3,894

Retirement savings plan (Detail

Retirement savings plan (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Retirement savings plan [Abstract]
Employer matching contribution percentage	50%
Employee's contribution percentage for match	6%
Amount of matching contribution	$ 355	$ 312

Borrowings (Details)

Borrowings (Details) - USD ($)		12 Months Ended
	Jul. 01, 2021	Dec. 31, 2022	Jul. 21, 2021	May 01, 2020	Mar. 13, 2020
Sienna Credit Facility [Member]
Borrowings [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%
Balance outstanding		$ 2,300,000
Additional borrowing capacity		3,900,000
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]
Borrowings [Abstract]
Additional borrowing capacity			$ 750,000
Sienna Credit Facility [Member] | Prime Rate [Member]
Borrowings [Abstract]
Basis spread on variable rate		1.75%
Sienna Credit Facility [Member] | Federal Funds Rate [Member]
Borrowings [Abstract]
Basis spread on variable rate		2.25%
PPP Loan [Member]
Borrowings [Abstract]
Face amount				$ 2,200,000
Loan forgiven	$ 2,200,000

Stock incentive plans, Stock in

Stock incentive plans, Stock incentive plans (Details)	12 Months Ended
	Dec. 31, 2022 Plan shares
Stock incentive plans [Abstract]
Number of stock incentive plans | Plan	2
Stock Options [Member]
Stock incentive plans [Abstract]
Exercise price as a percentage of fair market value of common stock at date of grant	100%
Term of award	10 years
Stock Options [Member] | Minimum [Member]
Stock incentive plans [Abstract]
Vesting period	2 years
Stock Options [Member] | Maximum [Member]
Stock incentive plans [Abstract]
Vesting period	4 years
2014 Equity Incentive Plan [Member]
Stock incentive plans [Abstract]
Number of shares authorized (in shares)	2,200,000
Number of shares available for grant (in shares)	347,652
2014 Equity Incentive Plan [Member] | Stock Options [Member]
Stock incentive plans [Abstract]
Term of award	10 years

Stock incentive plans, Assumpti

Stock incentive plans, Assumptions used in option valuation calculations (Details) - $ / shares	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Stock Options [Member]
Assumptions used in valuation model [Abstract]
Term of award	10 years
2014 Equity Incentive Plan [Member]
Assumptions used in valuation model [Abstract]
Expected option term	7 years 1 month 6 days	6 years 10 months 24 days
Expected volatility	51.30%	50.50%
Risk-free interest rate	2.20%	1.20%
Dividend yield	0%	0%
2014 Equity Incentive Plan [Member] | Stock Options [Member]
Assumptions used in valuation model [Abstract]
Weighted average fair value of grants (in dollars per share)	$ 4.39	$ 5.41
Term of award	10 years
2014 Equity Incentive Plan [Member] | Restricted Share Units [Member]
Assumptions used in valuation model [Abstract]
Weighted average fair value of grants (in dollars per share)	$ 8.43	$ 10.27

Stock incentive plans, Share-ba

Stock incentive plans, Share-based compensation expense (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Share-based compensation [Abstract]
Income tax benefit from share-based compensation expense	$ 0.3	$ 0.3
General and Administrative Expense [Member]
Share-based compensation [Abstract]
Share-based compensation expense	$ 1.2	$ 1.2

Stock incentive plans, Stock op

Stock incentive plans, Stock options (Details) - USD ($) $ / shares in Units, $ in Thousands		12 Months Ended
		Dec. 31, 2022	Dec. 31, 2021
Remaining Term [Abstract]
Unrecognized compensation cost related to stock options		$ 2,100
Weighted average period to recognize compensation cost not yet recognized		2 years 7 months 6 days
Fair value of all awards vested		$ 1,600	$ 1,700
Intrinsic value of stock options exercised		40	268
Cash received from exercise of stock options		0	436
Excess tax benefit in provision for income taxes		$ (13)	$ (35)
2005 Equity Incentive Plan and 2014 Equity Incentive Plan [Member] | Stock Options [Member]
Number of Shares [Roll Forward]
Outstanding, beginning of period (in shares)		1,269,355
Granted (in shares)		181,100
Exercised (in shares)		(17,500)	(97,000)
Forfeited (in shares)		(49,250)
Expired (in shares)		(27,750)
Outstanding, end of period (in shares)		1,355,955	1,269,355
Options vested or expected to vest (in shares)		1,355,955
Options exercisable, end of period (in shares)		971,865
Weighted Average Exercise Price [Abstract]
Outstanding, beginning of period (in dollars per share)	[1]	$ 9.18
Granted (in dollars per share)	[1]	8.16
Exercised (in dollars per share)	[1]	6.7
Forfeited (in dollars per share)	[1]	9.38
Expired (in dollars per share)	[1]	8.51
Outstanding, end of period (in dollars per share)	[1]	9.08	$ 9.18
Options vested or expected to vest (in dollars per share)	[1]	9.08
Options exercisable, end of period (in dollars per share)	[1]	$ 9.23
Aggregate Intrinsic Value [Abstract]
Options vested and expected to vest		$ 224
Options exercisable, end of period		$ 93
Remaining Term [Abstract]
Options vested and expected to vest	[2]	5 years
Options exercisable, end of period	[2]	3 years 8 months 12 days
2005 Equity Incentive Plan and 2014 Equity Incentive Plan [Member] | Restricted Share Units [Member]
Number of Shares [Roll Forward]
Options vested or expected to vest (in shares)		145,687
Weighted Average Exercise Price [Abstract]
Options vested or expected to vest (in dollars per share)	[1]	$ 0
Number of Units [Roll Forward]
Outstanding, beginning of period (in shares)		155,225
Granted (in shares)		129,700
Exercised (in shares)		(47,931)
Forfeited (in shares)		(22,708)
Expired (in shares)		0
Outstanding, end of period (in shares)		214,286	155,225
Weighted Average Grant Stock Price [Abstract]
Outstanding, beginning of period (in dollars per share)	[3]	$ 10.28
Granted (in dollars per share)	[3]	8.78
Exercised (in dollars per share)	[3]	10.22
Forfeited (in dollars per share)	[3]	10.27
Expired (in dollars per share)	[3]	0
Outstanding, end of period (in dollars per share)	[3]	$ 9.28	$ 10.28
Aggregate Intrinsic Value [Abstract]
Restricted stock units vested and expected to vest		$ 921
Remaining Term [Abstract]
Restricted stock units vested and expected to vest	[2]	2 years 1 month 6 days
[1]weighted average exercise price per share[2]weighted-average contractual remaining term in years[3]weighted average grant stock price per share

Income taxes, Components of inc

Income taxes, Components of income tax benefit (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2022	Dec. 31, 2021
Current [Abstract]
Federal		$ 149	$ 26
State		110	51
Foreign		(83)	2
Income taxes current		176	79
Deferred [Abstract]
Federal		(1,924)	(2,057)
State		(217)	(62)
Foreign		0	(2)
Income taxes deferred		(2,141)	(2,121)
Income tax benefit	$ (413)	$ (1,965)	$ (2,042)
Effective tax rate		24.90%	33.60%
Federal statutory tax rate		21%	21%
Income taxes [Abstract]
Foreign income (loss) before taxes		$ 24	$ (404)
Federal [Member]
Income taxes [Abstract]
Net operating loss carryforwards not subject to expiration		10,900
State [Member]
Income taxes [Abstract]
Net operating loss carryforwards subject to expiration		200
Tax credit carryforwards subject to expiration		0
R&D Credit [Member]
Income taxes [Abstract]
Tax credit carryforwards subject to expiration		$ 1,200
Life of tax credit carry forward		20 years

Income taxes, Deferred tax asse

Income taxes, Deferred tax assets and liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Deferred tax assets [Abstract]
Deferred Tax Assets, Operating Loss Carryforwards, Domestic	$ 2,297	$ 1,978
Foreign net operating losses	676	624
State net operating losses	149	0
Depreciation	0	306
Capitalized R&D expenses	1,708	0
Inventory reserves	648	710
Deferred revenue	41	24
Warranty reserve	17	22
Stock compensation expense	769	796
Other accrued compensation	222	308
R&D credit carryforward	1,238	901
Other liabilities and reserves	463	250
Gross deferred tax assets	8,228	5,919
Valuation allowance	(656)	(733)
Net deferred tax assets	7,572	5,186
Deferred tax liabilities [Abstract]
Depreciation	196	0
Other	49	43
Net deferred tax liabilities	245	43
Total net deferred tax assets	$ 7,327	$ 5,143

Income taxes, Valuation allowan

Income taxes, Valuation allowance on deferred tax assets (Details) - Foreign Net Operating Loss Carryforwards [Member] - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Valuation allowance [Roll Forward]
Balance, beginning of period	$ 733	$ 659
Subtractions released to income tax provisions	(77)	0
Additions charged to income tax provision	0	74
Balance, end of period	$ 656	$ 733

Income taxes, Statutory to effe

Income taxes, Statutory to effective tax rate reconciliation (Details)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Effective Tax Rate Reconciliation [Abstract]
Federal statutory tax rate	21%	21%
PPP loan forgiveness	0%	7.40%
R&D credit	4.30%	7.10%
Stock award excess tax benefit	0%	0.30%
State income taxes, net of federal income taxes	1.10%	0.10%
Business meals and entertainment	0%	(0.20%)
Miscellaneous permanent items	0%	(0.30%)
Uncertain tax positions	(0.50%)	(0.40%)
Stock option cancellations	(1.90%)	(0.60%)
Valuation allowance and tax accruals	1%	(1.20%)
Other	(0.10%)	0.40%
Effective tax rate	24.90%	33.60%

Income taxes, Unrecognized tax

Income taxes, Unrecognized tax benefits (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Income taxes [Abstract]
Unrecognized tax benefits that would favorably affect effective income tax rate if recognized	$ 142	$ 144
Unrecognized tax benefits [Roll Forward]
Unrecognized tax benefits, beginning of period	144	121
Tax positions taken during the current period	26	47
Lapse of statute of limitations	(28)	(24)
Unrecognized tax benefits, end of period	142	144
Expected decrease in unrecognized tax benefits in next year	28
Accrued interest and penalties related to uncertain tax positions	$ 34	$ 20

Earnings per share (Details)

Earnings per share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2022	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2022	Dec. 31, 2021
Earnings per share [Abstract]
Net loss	$ 260	$ 528	$ (2,376)	$ (4,348)	$ (823)	$ 901	$ (2,030)	$ (2,089)	$ (5,936)	$ (4,041)
Shares [Abstract]
Basic: Weighted average common shares outstanding (in shares)					9,848				9,905	9,298
Add: Dilutive effect of outstanding equity awards as determined by the treasury stock method (in shares)									0	0
Diluted: Weighted average common and common equivalent shares outstanding (in shares)					9,848				9,905	9,298
Net loss per common share [Abstract]
Basic (in dollars per share)	$ 0.03	$ 0.05	$ (0.24)	$ (0.44)	$ (0.08)	$ 0.1	$ (0.23)	$ (0.23)	$ (0.6)	$ (0.43)
Diluted (in dollars per share)	$ 0.03	$ 0.05	$ (0.24)	$ (0.44)	$ (0.08)	$ 0.09	$ (0.23)	$ (0.23)	$ (0.6)	$ (0.43)
Stock Awards [Member]
Earnings per share [Abstract]
Anti-dilutive securities excluded from computation of earnings per dilutive share (in shares)									1,463,000	391,000

Stock repurchase program (Detai

Stock repurchase program (Details) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended		180 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2019
Stock repurchase program [Abstract]
Common stock repurchased (in shares)	0	0	4,044,842
Value of common stock repurchased			$ 32.1
Average purchase price of common stock repurchased (in dollars per share)			$ 7.94

Geographic area information (De

Geographic area information (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2022	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2022	Dec. 31, 2021
Geographical area information [Abstract]
Net sales	$ 17,958	$ 17,856	$ 12,623	$ 9,702	$ 11,123	$ 10,637	$ 9,325	$ 8,301	$ 58,139	$ 39,386
Fixed assets, net	2,781				2,684				2,781	2,684
United States [Member]
Geographical area information [Abstract]
Net sales									44,034	32,400
International [Member]
Geographical area information [Abstract]
Net sales									$ 14,105	$ 6,986
Sales [Member] | Geographic Concentration Risk [Member] | International [Member]
Geographical area information [Abstract]
Concentration risk percentage									24%	18%
Sales [Member] | Geographic Concentration Risk [Member] | Europe [Member]
Geographical area information [Abstract]
Concentration risk percentage									68%	53%
Sales [Member] | Geographic Concentration Risk [Member] | Pacific Rim [Member]
Geographical area information [Abstract]
Concentration risk percentage									28%	35%
Sales [Member] | Geographic Concentration Risk [Member] | Canada [Member]
Geographical area information [Abstract]
Concentration risk percentage									4%	11%
Reportable Geographical Components [Member] | United States [Member]
Geographical area information [Abstract]
Net sales									$ 44,034	$ 32,400
Fixed assets, net	2,252				1,770				2,252	1,770
Reportable Geographical Components [Member] | International [Member]
Geographical area information [Abstract]
Net sales									14,105	6,986
Fixed assets, net	$ 529				$ 914				$ 529	$ 914

Leases (Details)

Leases (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Leases [Abstract]
Operating lease expense	$ 1,000	$ 1,000
Cash Flows Related to Operating Leases [Abstract]
Operating cash outflows from leases	$ 967	$ 982
Operating Lease Weighted Average Remaining Lease Term and Discount Rate [Abstract]
Weighted average remaining lease term	2 years 8 months 12 days	3 years 6 months
Weighted average discount rate	4.50%	4.40%
Maturity of Operating Lease Liabilities [Abstract]
2023	$ 972
2024	1,022
2025	710
2026	20
Total undiscounted lease payments	2,724
Less imputed interest	166
Total lease liabilities	$ 2,558

Quarterly results of operatio_3

Quarterly results of operations (unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2022	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2022	Dec. 31, 2021
Quarterly results of operations (unaudited) [Abstract]
Net sales	$ 17,958	$ 17,856	$ 12,623	$ 9,702	$ 11,123	$ 10,637	$ 9,325	$ 8,301	$ 58,139	$ 39,386
Gross profit	8,219	8,193	5,434	2,566	4,306	4,305	3,432	3,339	24,412	15,382
Net (loss) income	$ 260	$ 528	$ (2,376)	$ (4,348)	$ (823)	$ 901	$ (2,030)	$ (2,089)	$ (5,936)	$ (4,041)
Net (loss) income per common share [Abstract]
Basic (in dollars per share)	$ 0.03	$ 0.05	$ (0.24)	$ (0.44)	$ (0.08)	$ 0.1	$ (0.23)	$ (0.23)	$ (0.6)	$ (0.43)
Diluted (in dollars per share)	$ 0.03	$ 0.05	$ (0.24)	$ (0.44)	$ (0.08)	$ 0.09	$ (0.23)	$ (0.23)	$ (0.6)	$ (0.43)

Change in accounting principle,

Change in accounting principle, Effect of Change on Balance Sheets (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Consolidated Balance Sheets [Abstract]
Inventories	$ 12,028	$ 7,711
Deferred tax assets	7,327	5,143
Retained earnings	$ 9,630	15,566	$ 19,607
Previously Reported [Member]
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]
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								12 Months Ended
	Dec. 31, 2022	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2022	Dec. 31, 2021
Consolidated Statements of Operations [Abstract]
Cost of sales					$ 6,817				$ 33,727	$ 24,004
Gross profit	$ 8,219	$ 8,193	$ 5,434	$ 2,566	4,306	$ 4,305	$ 3,432	$ 3,339	24,412	15,382
Operating loss					(2,597)				(7,677)	(9,377)
Loss before income taxes					(1,236)				(7,901)	(6,083)
Income tax benefit					413				1,965	2,042
Net loss	$ 260	$ 528	$ (2,376)	$ (4,348)	$ (823)	$ 901	$ (2,030)	$ (2,089)	$ (5,936)	$ (4,041)
Net (loss) income per common share [Abstract]
Basic (in dollars per share)	$ 0.03	$ 0.05	$ (0.24)	$ (0.44)	$ (0.08)	$ 0.1	$ (0.23)	$ (0.23)	$ (0.6)	$ (0.43)
Diluted (in dollars per share)	$ 0.03	$ 0.05	$ (0.24)	$ (0.44)	$ (0.08)	$ 0.09	$ (0.23)	$ (0.23)	$ (0.6)	$ (0.43)
Shares used in per-share calculation [Abstract]
Basic (in shares)					9,848				9,905	9,298
Diluted (in shares)					9,848				9,905	9,298
Previously Reported [Member]
Consolidated Statements of Operations [Abstract]
Cost of sales					$ 6,705					$ 24,137
Gross profit					4,418					15,249
Operating loss					(2,485)					(9,510)
Loss before income taxes					(1,124)					(6,216)
Income tax benefit					389					2,071
Net loss					$ (735)					$ (4,145)
Net (loss) income per common share [Abstract]
Basic (in dollars per share)					$ (0.07)					$ (0.45)
Diluted (in dollars per share)					$ (0.07)					$ (0.45)
Shares used in per-share calculation [Abstract]
Basic (in shares)					9,848					9,298
Diluted (in shares)					9,848					9,298
Effect of Change [Member] | Change in Method of Inventory Valuation to Average Costing [Member]
Consolidated Statements of Operations [Abstract]
Cost of sales					$ 112					$ (133)
Gross profit					(112)					133
Operating loss					(112)					133
Loss before income taxes					(112)					133
Income tax benefit					24					(29)
Net loss					$ (88)					$ 104
Net (loss) income per common share [Abstract]
Basic (in dollars per share)					$ (0.01)					$ 0.02
Diluted (in dollars per share)					$ (0.01)					$ 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								12 Months Ended
	Dec. 31, 2022	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2022	Dec. 31, 2021
Consolidated Statements of Comprehensive Loss [Abstract]
Net loss	$ 260	$ 528	$ (2,376)	$ (4,348)	$ (823)	$ 901	$ (2,030)	$ (2,089)	$ (5,936)	$ (4,041)
Comprehensive loss					(750)				$ (6,158)	(3,860)
Previously Reported [Member]
Consolidated Statements of Comprehensive Loss [Abstract]
Net loss					(735)					(4,145)
Comprehensive loss					(662)					(3,964)
Effect of Change [Member] | Change in Method of Inventory Valuation to Average Costing [Member]
Consolidated Statements of Comprehensive Loss [Abstract]
Net loss					(88)					104
Comprehensive loss					$ (88)					$ 104

Change in accounting principl_4

Change in accounting principle, Effect of Change on Statements of Cash Flows (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2022	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2022	Dec. 31, 2021
Consolidated Statements of Cash Flows [Abstract]
Net loss	$ 260	$ 528	$ (2,376)	$ (4,348)	$ (823)	$ 901	$ (2,030)	$ (2,089)	$ (5,936)	$ (4,041)
Deferred income tax benefit									(2,141)	(2,121)
Inventories									$ (4,378)	3,440
Previously Reported [Member]
Consolidated Statements of Cash Flows [Abstract]
Net loss					(735)					(4,145)
Deferred income tax benefit										(2,150)
Inventories										3,573
Effect of Change [Member] | Change in Method of Inventory Valuation to Average Costing [Member]
Consolidated Statements of Cash Flows [Abstract]
Net loss					$ (88)					104
Deferred income tax benefit										29
Inventories										$ (133)

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								12 Months Ended
	Dec. 31, 2022	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2022	Dec. 31, 2021
Consolidated Statements of Changes in Shareholders' Equity [Abstract]
Beginning balance				$ 38,984	$ 39,361			$ 30,125	$ 38,984	$ 30,125
Net loss	$ 260	$ 528	$ (2,376)	(4,348)	(823)	$ 901	$ (2,030)	(2,089)	(5,936)	(4,041)
Ending balance	33,862				38,984	39,361			33,862	38,984
Retained Earnings [Member]
Consolidated Statements of Changes in Shareholders' Equity [Abstract]
Beginning balance				15,566	16,389			19,607	15,566	19,607
Net loss									(5,936)	(4,041)
Ending balance	$ 9,630				15,566	16,389			9,630	15,566
Previously Reported [Member]
Consolidated Statements of Changes in Shareholders' Equity [Abstract]
Beginning balance				38,991	39,280			30,236	38,991	30,236
Net loss					(735)					(4,145)
Ending balance					38,991	39,280				38,991
Previously Reported [Member] | Retained Earnings [Member]
Consolidated Statements of Changes in Shareholders' Equity [Abstract]
Beginning balance				15,573	16,308			19,718	15,573	19,718
Ending balance					15,573	16,308				15,573
Effect of Change [Member] | Change in Method of Inventory Valuation to Average Costing [Member]
Consolidated Statements of Changes in Shareholders' Equity [Abstract]
Beginning balance				(7)	81			(111)	(7)	(111)
Net loss					(88)					104
Ending balance					(7)	81				(7)
Effect of Change [Member] | Retained Earnings [Member] | Change in Method of Inventory Valuation to Average Costing [Member]
Consolidated Statements of Changes in Shareholders' Equity [Abstract]
Beginning balance				$ (7)	81			$ (111)	$ (7)	(111)
Ending balance					$ (7)	$ 81				$ (7)

Subsequent events (Details)

Subsequent events (Details) $ in Millions	3 Months Ended
	Mar. 31, 2023 USD ($)
Subsequent Event [Member]
Subsequent events [Abstract]
Employee retention credit receivable collected	$ 1.5