TransAct Technologies (TACT) 10-Q 14 May 24 2024 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2024	Apr. 30, 2024
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2024
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q1
Document Transition Report	false
Entity File Number	0-21121
Entity Registrant Name	TRANSACT TECHNOLOGIES INC
Entity Central Index Key	0001017303
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	06-1456680
Entity Address, Address Line One	One Hamden Center
Entity Address, Address Line Two	2319 Whitney Avenue, Suite 3B
Entity Address, City or Town	Hamden
Entity Address, State or Province	CT
Entity Address, Postal Zip Code	06518
City Area Code	203
Local Phone Number	859-6800
Title of 12(b) Security	Common stock, par value $0.01 per share
Trading Symbol	TACT
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		9,994,907

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Current assets:
Cash and cash equivalents	$ 10,631	$ 12,321
Accounts receivable, net of allowance for expected credit losses of $668 and $768	7,780	9,824
Inventories	19,171	17,759
Prepaid income taxes	352	322
Other current assets	931	773
Total current assets	38,865	40,999
Fixed assets, net of accumulated depreciation of $18,947 and $18,646	2,187	2,421
Right-of-use assets	1,371	1,602
Goodwill	2,621	2,621
Deferred tax assets	6,691	6,304
Intangible assets, net of accumulated amortization of $1,556 and $1,518	50	88
Other assets	133	163
Total noncurrent assets	13,053	13,199
Total assets	51,918	54,198
Current liabilities:
Revolving loan payable	2,250	2,250
Accounts payable	4,226	4,431
Accrued liabilities	4,126	4,947
Lease liabilities	941	929
Deferred revenue	925	1,079
Total current liabilities	12,468	13,636
Deferred revenue, net of current portion	196	209
Lease liabilities, net of current portion	468	720
Other liabilities	215	219
Total noncurrent liabilities	879	1,148
Total liabilities	13,347	14,784
Commitments and contingencies (see Notes 5 and 7)
Shareholders' equity:
Common stock, $0.01 par value, 20,000,000 shares authorized; 14,039,749 and 14,003,653 shares issued, respectively; 9,994,907 and 9,958,811 shares outstanding, respectively	140	140
Additional paid-in capital	57,249	57,055
Retained earnings	13,342	14,378
Accumulated other comprehensive loss, net of tax	(50)	(49)
Treasury stock, at cost (4,044,842 shares)	(32,110)	(32,110)
Total shareholders' equity	38,571	39,414
Total liabilities and shareholders' equity	$ 51,918	$ 54,198

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Current assets:
Allowance for expected credit losses	$ 668	$ 768
Fixed assets, accumulated depreciation	18,947	18,646
Intangible assets, accumulated amortization	$ 1,556	$ 1,518
Shareholders' equity:
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	20,000,000	20,000,000
Common stock, shares issued (in shares)	14,039,749	14,003,653
Common stock, shares outstanding (in shares)	9,994,907	9,958,811
Treasury stock (in shares)	4,044,842	4,044,842

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS [Abstract]
Net sales	$ 10,687	$ 22,270
Cost of sales	5,063	10,015
Gross profit	5,624	12,255
Operating expenses:
Engineering, design and product development	1,966	2,269
Selling and marketing	2,083	2,757
General and administrative	2,876	3,416
Operating expenses	6,925	8,442
Operating (loss) income	(1,301)	3,813
Interest and other (expense) income:
Interest, net	48	(66)
Other, net	(60)	21
Interest and other income (expense)	(12)	(45)
(Loss) income before income taxes	(1,313)	3,768
Income tax (benefit) expense	(277)	629
Net (loss) income	$ (1,036)	$ 3,139
Net (loss) income per common share:
Basic (in dollars per share)	$ (0.1)	$ 0.32
Diluted (in dollars per share)	$ (0.1)	$ 0.31
Shares used in per-share calculations:
Basic (in shares)	9,972	9,930
Diluted (in shares)	9,972	10,043

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME [Abstract]
Net (loss) income	$ (1,036)	$ 3,139
Foreign currency translation adjustment, net of tax	(1)	2
Comprehensive (loss) income	$ (1,037)	$ 3,141

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Cash flows from operating activities:
Net (loss) income	$ (1,036)	$ 3,139
Adjustments to reconcile net (loss) income to net cash used in operating activities:
Share-based compensation expense	265	278
Depreciation and amortization	395	352
Deferred income taxes	(386)	501
Unrealized foreign currency transaction losses	62	21
Changes in operating assets and liabilities:
Accounts receivable	2,029	(3,044)
Employee retention credit receivable	0	1,500
Inventories	(1,440)	(351)
Prepaid income taxes	(30)	0
Other current and long-term assets	(139)	(175)
Accounts payable	(214)	(2,846)
Accrued liabilities and other liabilities	(996)	(132)
Net cash used in operating activities	(1,490)	(757)
Cash flows from investing activities:
Capital expenditures	(106)	(378)
Net cash used in investing activities	(106)	(378)
Cash flows from financing activities:
Withholding taxes paid on stock issuances	(71)	(86)
Net cash used in financing activities	(71)	(86)
Effect of exchange rate changes on cash and cash equivalents	(23)	(81)
Decrease in cash and cash equivalents	(1,690)	(1,302)
Cash and cash equivalents, beginning of period	12,321	7,946
Cash and cash equivalents, end of period	10,631	6,644
Supplemental schedule of non-cash investing activities:
Non-cash capital expenditure items	$ 31	$ 25

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Treasury Stock [Member]	Accumulated Other Comprehensive Loss [Member]	Total
Beginning balance at Dec. 31, 2022	$ 139	$ 56,282	$ 9,630	$ (32,110)	$ (79)	$ 33,862
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock from restricted stock units	1
Share-based compensation expense		278
Relinquishment of stock awards to pay for withholding taxes		(86)
Net (loss) income			3,139			3,139
Foreign currency translation adjustment, net of tax					2	2
Ending balance at Mar. 31, 2023	140	56,474	12,769	(32,110)	(77)	$ 37,196
Supplemental share information
Issuance of shares from stock awards (in shares)						54
Relinquishment of stock awards to pay withholding taxes (in shares)						12
Beginning balance at Dec. 31, 2023	140	57,055	14,378	(32,110)	(49)	$ 39,414
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock from restricted stock units	0
Share-based compensation expense		265
Relinquishment of stock awards to pay for withholding taxes		(71)
Net (loss) income			(1,036)			(1,036)
Foreign currency translation adjustment, net of tax					(1)	(1)
Ending balance at Mar. 31, 2024	$ 140	$ 57,249	$ 13,342	$ (32,110)	$ (50)	$ 38,571
Supplemental share information
Issuance of shares from stock awards (in shares)						47
Relinquishment of stock awards to pay withholding taxes (in shares)						11

Basis of presentation

Basis of presentation	3 Months Ended
	Mar. 31, 2024
Basis of Presentation [Abstract]
Basis of Presentation	1. Basis of presentation The . The Condensed Consolidated Balance Sheet data was derived from audited financial statements, but does not include all disclosures required by U.S. GAAP. These interim financial statements should be read in conjunction with the audited financial statements in our Annual Report on Form 10-K for the year ended (the “2023 Form 10-K”). The results of operations for the three months ended March 31, 2024 are not necessarily indicative of the results to be expected for the full year ending December 31, 2024. Current Business Trends After strong demand during most of 2023 due in part to our primary competitor’s struggle to deliver products in the face of supply chain constraints, in late 2023, we began to see indications of a temporary slowdown in demand in the casino and gaming market, as customers that had built up excess inventory due to supply chain concerns advised us that they would temporarily reduce orders until their stock normalized. This slowdown impacted our results in the fourth quarter of 2023 and the first quarter of 2024, and we expect this trend to continue to impact results during 2024 until these customers are able to sell their on-hand inventory. Further, our primary competitor in the casino and gaming market has resumed supplying product and continued to increase volume at what we believe is full capacity, which has resulted in the beginning of downward pricing pressure in that market and could exacerbate the demand slowdown, which has negatively impacted our worldwide casino and gaming sales. In addition, we have experienced cost increases as a result of current economic conditions, most of which we have been able to offset by increasing prices of our products. However, there can be no guarantee that we will be able to increase prices sufficiently to offset any future such cost increases that cannot be predicted, and we may be further impacted by supply chain disruptions, inflationary pressures and other global economic conditions that may affect the markets we serve and from which we source our supplies and parts. Balance Sheet, Cash Flow and Liquidity 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 Condensed Consolidated Financial Statements included in this Quarterly Report on Form 10-Q were issued, including consideration of the actions 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 the date that the Condensed Consolidated Financial Statements were issued. 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 unaudited Condensed Consolidated Financial Statements were issued is based on assumptions which involve significant judgment and estimates of future revenues, inflation, rising interest rates, capital expenditures and other operating costs. Though demand for our products at casinos has increased substantially post-pandemic, 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 future economic downturn and we would be able to take additional financial and operational actions to cut costs and/or increase liquidity.

Significant accounting policies

Significant accounting policies	3 Months Ended
	Mar. 31, 2024
Significant accounting policies [Abstract]
Significant accounting policies	2. Significant accounting policies For a discussion of our significant accounting policies, see Note 2, Summary of significant accounting policies Recently issued accounting pronouncements: On November 27, 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280) On December 14, 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740)

Revenue

Revenue	3 Months Ended
	Mar. 31, 2024
Revenue [Abstract]
Revenue	3. Revenue We account for revenue in accordance with ASC Topic 606: Revenue from Contracts with Customers. Disaggregation of revenue The following tables disaggregate our revenue by market type, as we believe this best depicts how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors. Sales and usage-based taxes are excluded from revenues. Three Months Ended March 31, 2024 2023 (In thousands) United States International Total United States International Total Food service technology $ 3,023 $ 277 $ 3,300 $ 3,263 $ 195 $ 3,458 POS automation 651 – 651 1,782 15 1,797 Casino and gaming 3,238 2,458 5,696 11,569 4,242 15,811 TransAct Services Group 853 187 1,040 983 221 1,204 Total net sales $ 7,765 $ 2,922 $ 10,687 $ 17,597 $ 4,673 $ 22,270 Contract balances Contract assets consist of unbilled receivables. Pursuant to the over-time revenue recognition model, revenue may be recognized prior to the customer being invoiced. An unbilled receivable is recorded to reflect revenue that is recognized when such revenue exceeds the amount invoiced to the customer. Unbilled receivables are separated into current and non-current assets and included within “Accounts receivable, net” and “Other assets” in the Condensed Consolidated Balance Sheets. Contract liabilities consist of customer pre-payments and deferred revenue. Customer prepayments are reported as “Accrued liabilities” in current liabilities in the Condensed Consolidated Balance Sheets and represent customer payments made in advance of performance obligations in instances where credit has not been extended and are recognized as revenue when the performance obligation is complete. Deferred revenue is reported separately in current liabilities and non-current liabilities and consists of our extended warranty contracts, technical support for our food service technology terminals, EPICENTRAL maintenance contracts and prepaid software subscriptions for our BOHA! software applications, and is recognized as revenue as (or when) we perform under the contract. For the three months ended March 31, 2024, we recognized revenue of $0.4 million related to our contract liabilities at December 31, 2023. Total net contract liabilities consisted of the following: March 31, 2024 December 31, 2023 (In thousands) Unbilled receivables, current $ 155 $ 145 Unbilled receivables, net of current portion 103 120 Customer pre-payments (123 ) (155 ) Deferred revenue, current (925 ) (1,079 ) Deferred revenue, net of current portion (196 ) (209 ) Total net contract liabilities $ (986 ) $ (1,178 ) 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 March 31, 2024, the aggregate amount of transaction prices allocated to remaining performance obligations was $6.8 million. The Company expects to recognize revenue of $6.5 million of its remaining performance obligations within the next 12 months following March 31, 2024, $0.2 million within the next 24 months balance 36 months

Inventories

Inventories	3 Months Ended
	Mar. 31, 2024
Inventories [Abstract]
Inventories	4. Inventories The components of inventories were: March 31, 2024 December 31, 2023 (In thousands) Raw materials and purchased component parts $ 10,644 $ 9,382 Finished goods 8,527 8,377 $ 19,171 $ 17,759

Borrowings

Borrowings	3 Months Ended
	Mar. 31, 2024
Borrowings [Abstract]
Borrowings	5. Borrowings Credit Facility On March 13, 2020, we entered into the Loan and Security Agreement governing Borrowings under the Siena Credit Facility are subject to a The Siena Credit Facility imposes a financial covenant on the Company and restricts, among other things, our ability to incur additional indebtedness and create other liens. 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 ended July 31, 2021. From July 31, 2021 through March 31, 2024, we remained in compliance with our excess availability covenant. As of March 31, 2024, we had $2.3 million of outstanding borrowings under the Siena Credit Facility and $3.0 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 Siena Credit Facility Amendment No. 2. 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 the 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. On May 1, 2023, the Company and the Lender agreed to a letter amendment to the Loan and Security Agreement governing the Siena Credit Facility. Prior to such amendment, as Chief Executive Officer

Earnings per share

Earnings per share	3 Months Ended
	Mar. 31, 2024
Earnings per share [Abstract]
Earnings per share	6. Earnings per share The following table sets forth the reconciliation of basic and diluted weighted average shares outstanding : Three Months Ended March 31, 2024 2023 (In thousands, except per-share data) Net (loss) income $ (1,036 ) $ 3,139 Shares: Basic: Weighted average common shares outstanding 9,972 9,930 Add: Dilutive effect of outstanding options and restricted stock units as determined by the treasury stock method - 113 Diluted: Weighted average common and common equivalent shares outstanding 9,972 10,043 Net (loss) income per common share: Basic $ (0.10 ) $ 0.32 Diluted $ (0.10 ) $ 0.31 The computation of diluted earnings per share excludes the effect of the potential exercise of stock awards, including stock options and restricted stock units, when the average market price of the common stock is lower than the exercise price of the related stock award during the period, as the inclusion of these stock awards in the computation of diluted earnings would be anti-dilutive. For the three months ended March 31, 2024, there were 89 thousand of potentially dilutive shares consisting of stock awards that were excluded from the calculation of earnings per diluted share. Furthermore, in periods when a net loss is reported, such as the three months ended March 31, 2024, basic and diluted net loss per common share are calculated using the same method.

Leases

Leases	3 Months Ended
	Mar. 31, 2024
Leases [Abstract]
Leases	7. Leases We account for leases in accordance with ASC Topic 842: Leases We enter into lease agreements for the use of real estate space and certain equipment under operating leases and we have no financing leases. Our leases are included in “Right-of-use-assets” and “Lease liabilities” in our Condensed Consolidated Balance Sheets. Our leases have various lease terms, some of which include options to extend. Lease expense is recognized on a straight-line basis over the lease term. Operating lease expense for the three months ended March 31, 2024 and 2023 was $282 thousand and $237 thousand, respectively, and is reported as “Cost of sales”, “Engineering, design and product development expense”, “Selling and marketing expense”, and “General and administrative expense” in the Condensed Consolidated Statements of Operations. Operating lease expenses include short-term lease costs, which were immaterial during the periods presented. The following information represents supplemental disclosure for the statement of cash flows related to operating leases (in thousands): Three Months Ended March 31, 2024 2023 Operating cash outflows from leases $ 257 $ 252 The following summarizes additional information related to our leases as of March 31, 2024 and December 31, 2023: March 31, 2024 December 31, 2023 Weighted average remaining lease term (in years) 1.5 1.7 Weighted average discount rate 4.4 % 4.4 % The maturity of the Company’s operating lease liabilities as of March 31, 2024 and December 31, 2023 were as follows (in thousands): March 31, 2024 December 31, 2023 2024 727 985 2025 712 713 2026 22 22 Total undiscounted lease payments 1,461 1,720 Less imputed interest 52 71 Total lease liabilities $ 1,409 $ 1,649

Income taxes

Income taxes	3 Months Ended
	Mar. 31, 2024
Income taxes [Abstract]
Income taxes	8. Income taxes We recorded an income tax benefit in the first quarter of 2024 of $277 thousand at an effective tax rate of (21.1%) compared to an income tax expense in the first quarter of 2023 of $629 thousand at an effective tax rate of 16.7%. We are subject to U.S. federal income tax, as well as income tax in certain U.S. state and foreign jurisdictions. We have substantially concluded all U.S. federal, state and local income tax, and foreign tax regulatory examination matters through 2019. However, our federal tax returns for the years 2020 through 2023 remain open to examination. Various U.S. state and foreign tax jurisdiction tax years remain open to examination as well, but we believe that any additional assessment would be immaterial to the Condensed Consolidated Financial Statements. The Company maintains a valuation allowance against certain deferred tax assets where realization is not certain.

Subsequent events

Subsequent events	3 Months Ended
	Mar. 31, 2024
Subsequent events [Abstract]
Subsequent events	9. Subsequent events The Company has evaluated all events or transactions that occurred up to the date the Condensed Consolidated Financial Statements were available to be issued. Based upon this review, the Company did not identify any subsequent events that would have required adjustment or disclosure in the Condensed Consolidated Financial Statements.

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Mar. 31, 2024
Insider Trading Arrangements [Line Items]
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Basis of presentation (Policies

Basis of presentation (Policies)	3 Months Ended
	Mar. 31, 2024
Basis of Presentation [Abstract]
Basis of Accounting	The . The Condensed Consolidated Balance Sheet data was derived from audited financial statements, but does not include all disclosures required by U.S. GAAP. These interim financial statements should be read in conjunction with the audited financial statements in our Annual Report on Form 10-K for the year ended (the “2023 Form 10-K”).
Use of Assumptions and Estimates	Use of Assumptions and Estimates Management’s belief that the Company will be able to fund its planned operations over the 12 months following the date on which the unaudited Condensed Consolidated Financial Statements were issued is based on assumptions which involve significant judgment and estimates of future revenues, inflation, rising interest rates, capital expenditures and other operating costs. Though demand for our products at casinos has increased substantially post-pandemic, 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 future economic downturn and we would be able to take additional financial and operational actions to cut costs and/or increase liquidity.

Significant Accounting Polici_2

Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2024
Significant accounting policies [Abstract]
Recently issued accounting pronouncements	Recently issued accounting pronouncements: On November 27, 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280) On December 14, 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740)

Revenue (Tables)

Revenue (Tables)	3 Months Ended
	Mar. 31, 2024
Revenue [Abstract]
Disaggregation of Revenue	The following tables disaggregate our revenue by market type, as we believe this best depicts how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors. Sales and usage-based taxes are excluded from revenues. Three Months Ended March 31, 2024 2023 (In thousands) United States International Total United States International Total Food service technology $ 3,023 $ 277 $ 3,300 $ 3,263 $ 195 $ 3,458 POS automation 651 – 651 1,782 15 1,797 Casino and gaming 3,238 2,458 5,696 11,569 4,242 15,811 TransAct Services Group 853 187 1,040 983 221 1,204 Total net sales $ 7,765 $ 2,922 $ 10,687 $ 17,597 $ 4,673 $ 22,270
Net Contract Liabilities	Total net contract liabilities consisted of the following: March 31, 2024 December 31, 2023 (In thousands) Unbilled receivables, current $ 155 $ 145 Unbilled receivables, net of current portion 103 120 Customer pre-payments (123 ) (155 ) Deferred revenue, current (925 ) (1,079 ) Deferred revenue, net of current portion (196 ) (209 ) Total net contract liabilities $ (986 ) $ (1,178 )

Inventories (Tables)

Inventories (Tables)	3 Months Ended
	Mar. 31, 2024
Inventories [Abstract]
Inventories	The components of inventories were: March 31, 2024 December 31, 2023 (In thousands) Raw materials and purchased component parts $ 10,644 $ 9,382 Finished goods 8,527 8,377 $ 19,171 $ 17,759

Earnings per share (Tables)

Earnings per share (Tables)	3 Months Ended
	Mar. 31, 2024
Earnings per share [Abstract]
Earnings per Share	The following table sets forth the reconciliation of basic and diluted weighted average shares outstanding : Three Months Ended March 31, 2024 2023 (In thousands, except per-share data) Net (loss) income $ (1,036 ) $ 3,139 Shares: Basic: Weighted average common shares outstanding 9,972 9,930 Add: Dilutive effect of outstanding options and restricted stock units as determined by the treasury stock method - 113 Diluted: Weighted average common and common equivalent shares outstanding 9,972 10,043 Net (loss) income per common share: Basic $ (0.10 ) $ 0.32 Diluted $ (0.10 ) $ 0.31

Leases (Tables)

Leases (Tables)	3 Months Ended
	Mar. 31, 2024
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): Three Months Ended March 31, 2024 2023 Operating cash outflows from leases $ 257 $ 252
Additional Information Related to Leases	The following summarizes additional information related to our leases as of March 31, 2024 and December 31, 2023: March 31, 2024 December 31, 2023 Weighted average remaining lease term (in years) 1.5 1.7 Weighted average discount rate 4.4 % 4.4 %
Maturity of Operating Lease Liabilities	The maturity of the Company’s operating lease liabilities as of March 31, 2024 and December 31, 2023 were as follows (in thousands): March 31, 2024 December 31, 2023 2024 727 985 2025 712 713 2026 22 22 Total undiscounted lease payments 1,461 1,720 Less imputed interest 52 71 Total lease liabilities $ 1,409 $ 1,649

Basis of presentation (Details)

Basis of presentation (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2024
Basis of presentation [Abstract]
Operating expenses	$ 6,925	$ 8,442
Forecast [Member]
Basis of presentation [Abstract]
Operating expenses			$ 3,000

Revenue, Disaggregation of Reve

Revenue, Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Disaggregation of revenue [Abstract]
Net sales	$ 10,687	$ 22,270
United States [Member]
Disaggregation of revenue [Abstract]
Net sales	7,765	17,597
International [Member]
Disaggregation of revenue [Abstract]
Net sales	2,922	4,673
Food Service Technology [Member]
Disaggregation of revenue [Abstract]
Net sales	3,300	3,458
Food Service Technology [Member] | United States [Member]
Disaggregation of revenue [Abstract]
Net sales	3,023	3,263
Food Service Technology [Member] | International [Member]
Disaggregation of revenue [Abstract]
Net sales	277	195
POS Automation [Member]
Disaggregation of revenue [Abstract]
Net sales	651	1,797
POS Automation [Member] | United States [Member]
Disaggregation of revenue [Abstract]
Net sales	651	1,782
POS Automation [Member] | International [Member]
Disaggregation of revenue [Abstract]
Net sales	0	15
Casino and Gaming [Member]
Disaggregation of revenue [Abstract]
Net sales	5,696	15,811
Casino and Gaming [Member] | United States [Member]
Disaggregation of revenue [Abstract]
Net sales	3,238	11,569
Casino and Gaming [Member] | International [Member]
Disaggregation of revenue [Abstract]
Net sales	2,458	4,242
TransAct Services Group [Member]
Disaggregation of revenue [Abstract]
Net sales	1,040	1,204
TransAct Services Group [Member] | United States [Member]
Disaggregation of revenue [Abstract]
Net sales	853	983
TransAct Services Group [Member] | International [Member]
Disaggregation of revenue [Abstract]
Net sales	$ 187	$ 221

Revenue, Contract Balances (Det

Revenue, Contract Balances (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Revenue [Abstract]
Revenue recognized	$ 400
Contract liabilities [Abstract]
Unbilled receivables, current	155	$ 145
Unbilled receivables, net of current portion	103	120
Customer pre-payments	(123)	(155)
Deferred revenue, current	(925)	(1,079)
Deferred revenue, net of current portion	(196)	(209)
Total net contract liabilities	$ (986)	$ (1,178)

Revenue, Remaining Performance

Revenue, Remaining Performance Obligations (Details) $ in Millions	Mar. 31, 2024 USD ($)
Remaining performance obligations [Abstract]
Remaining performance obligations	$ 6.8
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-01
Remaining performance obligations [Abstract]
Remaining performance obligations	$ 6.5
Expected timing of satisfaction, period	12 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-04-01
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]: 2026-04-01
Remaining performance obligations [Abstract]
Remaining performance obligations
Expected timing of satisfaction, period	12 months

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Inventories [Abstract]
Raw materials and purchased component parts	$ 10,644	$ 9,382
Finished goods	8,527	8,377
Inventories	$ 19,171	$ 17,759

Borrowings (Details)

Borrowings (Details) - Sienna Credit Facility [Member] - USD ($)	3 Months Ended
	Mar. 31, 2024	Jul. 21, 2021	Mar. 13, 2020
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%
Additional borrowing capacity	$ 3,000,000
Balance outstanding	2,300,000
Minimum excess availability and unrestricted cash required	$ 5,000,000
Number of days to maintain excess availability and unrestricted cash	3 days
Minimum principal amount to be maintained to direct use of funds in deposit account	$ 2,250,000
Minimum principal amount on which interest is paid	$ 2,250,000
Minimum [Member]
Borrowings [Abstract]
Additional borrowing capacity		$ 750,000
Prime Rate [Member]
Borrowings [Abstract]
Basis spread on variable rate	1.75%
Federal Funds Rate [Member]
Borrowings [Abstract]
Basis spread on variable rate	2.25%

Earnings per share (Details)

Earnings per share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Earnings per share [Abstract]
Net (loss) income	$ (1,036)	$ 3,139
Shares [Abstract]
Basic: Weighted average common shares outstanding (in shares)	9,972	9,930
Add: Dilutive effect of outstanding options and restricted stock units as determined by the treasury stock method (in shares)	0	113
Diluted: Weighted average common and common equivalent shares outstanding (in shares)	9,972	10,043
Net (loss) income per common share [Abstract]
Basic (in dollars per share)	$ (0.1)	$ 0.32
Diluted (in dollars per share)	$ (0.1)	$ 0.31
Stock Awards [Member]
Earnings per share [Abstract]
Anti-dilutive securities excluded from computation of earnings per dilutive share (in shares)	89

Leases (Details)

Leases (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Leases [Abstract]
Operating lease expense	$ 282	$ 237
Cash Flows Related to Operating Leases [Abstract]
Operating cash outflows from leases	$ 257	$ 252
Operating Lease Weighted Average Remaining Lease Term and Discount Rate [Abstract]
Weighted average remaining lease term	1 year 6 months		1 year 8 months 12 days
Weighted average discount rate	4.40%		4.40%
Maturity of Operating Lease Liabilities [Abstract]
2024	$ 727		$ 985
2025	712		713
2026	22		22
Total undiscounted lease payments	1,461		1,720
Less imputed interest	52		71
Total lease liabilities	$ 1,409		$ 1,649

Income taxes (Details)

Income taxes (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Income taxes [Abstract]
Income tax (benefit) expense	$ (277)	$ 629
Effective tax rate	(21.10%)	16.70%