☒ |
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
☐ |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Delaware
|
06-1456680
|
|
(State or Other Jurisdiction of Incorporation or Organization)
|
(I.R.S. Employer Identification No.)
|
One Hamden Center, 2319 Whitney Avenue, Suite 3B, Hamden, CT
|
06518
|
|
(Address of Principal Executive Offices)
|
(Zip Code)
|
(203) 859-6800
|
(Registrant’s Telephone Number, Including Area Code)
|
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
||
Common stock, par value $0.01 per share
|
TACT
|
NASDAQ Global Market
|
Large accelerated filer ☐
|
Accelerated filer ☐
|
Non-accelerated filer ☒
|
Smaller reporting company ☒
|
Emerging growth company ☐
|
PART I - Financial Information:
|
Page
|
|
Item 1
|
Financial Statements (unaudited)
|
|
3
|
||
4
|
||
5
|
||
6
|
||
7
|
||
8
|
||
Item 2
|
14
|
|
Item 3
|
23
|
|
Item 4
|
24
|
|
PART II - Other Information:
|
||
Item 1
|
25
|
|
Item 1A
|
25
|
|
Item 2
|
25
|
|
Item 3
|
25
|
|
Item 4
|
25
|
|
Item 5
|
25
|
|
Item 6
|
25
|
|
26
|
Item 1. |
FINANCIAL STATEMENTS
|
|
March 31, 2021
|
December 31, 2020
|
||||||
Assets:
|
(In thousands, except share data)
|
|||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$
|
8,728
|
$
|
10,359
|
||||
Accounts receivable, net
|
4,712
|
3,377
|
||||||
Note receivable
|
–
|
100
|
||||||
Inventories
|
10,000
|
11,286
|
||||||
Prepaid income taxes
|
2,411
|
2,409
|
||||||
Other current assets
|
911
|
644
|
||||||
Total current assets
|
26,762
|
28,175
|
||||||
Fixed assets, net of accumulated depreciation of $20,124 and $19,979, respectively
|
1,852
|
1,950
|
||||||
Note receivable, net of current portion
|
–
|
1,584
|
||||||
Right-of-use asset
|
3,429
|
3,618
|
||||||
Goodwill
|
2,621
|
2,621
|
||||||
Deferred tax assets
|
3,489
|
2,939
|
||||||
Intangible assets, net of accumulated amortization of $4,056 and $4,005, respectively
|
532
|
583
|
||||||
Other assets
|
678
|
777
|
||||||
12,601
|
14,072
|
|||||||
Total assets
|
$
|
39,363
|
$
|
42,247
|
||||
Liabilities and Shareholders’ Equity:
|
||||||||
Current liabilities:
|
||||||||
Accounts payable
|
$
|
1,919
|
$
|
1,691
|
||||
Accrued liabilities
|
2,498
|
3,665
|
||||||
Lease liability
|
813
|
837
|
||||||
Deferred revenue
|
569
|
504
|
||||||
Total current liabilities
|
5,799
|
6,697
|
||||||
Long-term debt
|
2,173
|
2,173
|
||||||
Deferred revenue, net of current portion
|
202
|
111
|
||||||
Lease liability, net of current portion
|
2,666
|
2,864
|
||||||
Other liabilities
|
160
|
166
|
||||||
5,201
|
5,314
|
|||||||
Total liabilities
|
11,000
|
12,011
|
||||||
Shareholders’ equity:
|
||||||||
Common stock, $0.01 par value, 20,000,000 shares authorized; 13,010,383 and 12,976,227 shares issued, respectively; 8,965,541 and 8,931,385 shares outstanding, respectively
|
130
|
130
|
||||||
Additional paid-in capital
|
42,816
|
42,536
|
||||||
Retained earnings
|
17,512
|
19,718
|
||||||
Accumulated other comprehensive income (loss), net of tax
|
15
|
(38
|
)
|
|||||
Treasury stock, at cost, 4,044,842 shares
|
(32,110
|
)
|
(32,110
|
)
|
||||
Total shareholders’ equity
|
28,363
|
30,236
|
||||||
Total liabilities and shareholders’ equity
|
$
|
39,363
|
$
|
42,247
|
||||
Three Months Ended
March 31,
|
||||||||
2021
|
2020
|
|||||||
(In thousands, except per share data)
|
||||||||
Net sales
|
$
|
8,301
|
$
|
10,247
|
||||
Cost of sales
|
5,112
|
5,329
|
||||||
Gross profit
|
3,189
|
4,918
|
||||||
Operating expenses:
|
||||||||
Engineering, design and product development
|
1,803
|
1,385
|
||||||
Selling and marketing
|
1,443
|
2,208
|
||||||
General and administrative
|
2,609
|
2,620
|
||||||
5,855
|
6,213
|
|||||||
Operating loss
|
(2,666
|
)
|
(1,295
|
)
|
||||
Interest and other (expense) income:
|
||||||||
Interest, net
|
(13
|
)
|
3
|
|||||
Other, net
|
(83
|
)
|
(165
|
)
|
||||
(96
|
)
|
(162
|
)
|
|||||
Loss before income taxes
|
(2,762
|
)
|
(1,457
|
)
|
||||
Income tax benefit
|
556
|
465
|
||||||
Net loss
|
$
|
(2,206
|
)
|
$
|
(992
|
)
|
||
Net loss per common share:
|
||||||||
Basic
|
$
|
(0.25
|
)
|
$
|
(0.13
|
)
|
||
Diluted
|
$
|
(0.25
|
)
|
$
|
(0.13
|
)
|
||
Shares used in per-share calculation:
|
||||||||
Basic
|
8,948
|
7,507
|
||||||
Diluted
|
8,948
|
7,507
|
|
Three Months Ended
March 31,
|
|||||||
2021
|
2020
|
|||||||
(In thousands)
|
||||||||
Net loss
|
$
|
(2,206
|
)
|
$
|
(992
|
)
|
||
Foreign currency translation adjustment, net of tax
|
53
|
71
|
||||||
Comprehensive loss
|
$
|
(2,153
|
)
|
$
|
(921
|
)
|
Three Months Ended
|
||||||||
|
March 31,
|
|||||||
2021
|
2020
|
|||||||
(In thousands)
|
||||||||
Cash flows from operating activities:
|
||||||||
Net loss
|
$
|
(2,206
|
)
|
$
|
(992
|
)
|
||
Adjustments to reconcile net loss to net cash used in operating activities:
|
||||||||
Share-based compensation expense
|
264
|
187
|
||||||
Depreciation and amortization
|
240
|
238
|
||||||
Deferred income taxes
|
(555
|
)
|
(518
|
)
|
||||
Gain on the sale of fixed assets
|
(8
|
)
|
–
|
|||||
Foreign currency transaction losses
|
90
|
194
|
||||||
Changes in operating assets and liabilities:
|
||||||||
Accounts receivable
|
(1,330
|
)
|
106
|
|||||
Inventories
|
1,309
|
(573
|
)
|
|||||
Prepaid income taxes
|
(2
|
)
|
51
|
|||||
Other current and long-term assets
|
(103
|
)
|
(266
|
)
|
||||
Accounts payable
|
227
|
(1,243
|
)
|
|||||
Accrued liabilities and other liabilities
|
(1,020
|
)
|
(755
|
)
|
||||
Net cash used in operating activities
|
(3,094
|
)
|
(3,571
|
)
|
||||
Cash flows from investing activities:
|
||||||||
Capital expenditures
|
(68
|
)
|
(328
|
)
|
||||
Proceeds from the sale of fixed assets
|
8
|
–
|
||||||
Collection (issuance) of note receivable
|
1,598
|
(600
|
)
|
|||||
Net cash provided by (used in) investing activities
|
1,538
|
(928
|
)
|
|||||
Cash flows from financing activities:
|
||||||||
Revolving credit line borrowings
|
–
|
1,000
|
||||||
Revolving credit line payments
|
–
|
(206
|
)
|
|||||
Proceeds from stock option exercises
|
91
|
353
|
||||||
Withholding taxes paid on stock issuances
|
(75
|
)
|
(41
|
)
|
||||
Payment of bank financing costs
|
(31
|
)
|
(201
|
)
|
||||
Net cash (used in) provided by financing activities
|
(15
|
)
|
905
|
|||||
Effect of exchange rate changes on cash and cash equivalents
|
(60
|
)
|
6
|
|||||
Decrease in cash and cash equivalents
|
(1,631
|
)
|
(3,588
|
)
|
||||
Cash and cash equivalents, beginning of period
|
10,359
|
4,203
|
||||||
Cash and cash equivalents, end of period
|
$
|
8,728
|
$
|
615
|
||||
Supplemental schedule of non-cash investing activities:
|
||||||||
Capital expenditures included in accounts payable
|
$
|
27
|
$
|
38
|
Three Months Ended
|
||||||||
March 31,
|
||||||||
2021
|
2020
|
|||||||
(In thousands)
|
||||||||
Equity beginning balance
|
$
|
30,236
|
$
|
25,926
|
||||
Common stock
|
||||||||
Balance, beginning of period
|
130
|
115
|
||||||
Issuance of shares from stock awards
|
–
|
1
|
||||||
Balance, end of period
|
130
|
116
|
||||||
Additional paid-in capital
|
||||||||
Balance, beginning of period
|
42,536
|
32,604
|
||||||
Share-based compensation expense
|
264
|
187
|
||||||
Issuance of shares from exercise of stock options
|
91
|
353
|
||||||
Relinquishment of stock awards and deferred stock units to pay for withholding taxes
|
(75
|
)
|
(41
|
)
|
||||
Balance, end of period
|
42,816
|
33,103
|
||||||
Retained earnings
|
||||||||
Balance, beginning of period
|
19,718
|
25,348
|
||||||
Net loss
|
(2,206
|
)
|
(992
|
)
|
||||
Balance, end of period
|
17,512
|
24,356
|
||||||
Treasury stock
|
||||||||
Balance, beginning and end of period
|
(32,110
|
)
|
(32,110
|
)
|
||||
Accumulated other comprehensive income (loss)
|
||||||||
Balance, beginning of period
|
(38
|
)
|
(31
|
)
|
||||
Foreign currency translation adjustment, net of tax
|
53
|
71
|
||||||
Balance, end of period
|
15
|
40
|
||||||
Equity ending balance
|
28,363
|
25,505
|
||||||
Supplemental share information
|
||||||||
Issuance of shares from stock awards
|
65
|
83
|
||||||
Relinquishment of stock awards to pay withholding taxes
|
31
|
14
|
● |
Public Offering – On October 16, 2020, the Company raised net proceeds of $8.7 million, after deducting underwriting discounts, commissions and offering expenses, through an underwritten public offering (the “Offering”) and sold an aggregate of 1,380,000 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 Act (the “CARES” Act), which enabled us to return employees we furloughed earlier in 2020 to full time employment and to restore certain pay cuts until the PPP Loan proceeds were exhausted.
|
● |
New Credit Facility – On March 13, 2020, we entered into a new credit facility with Siena Lending Group LLC that provides a revolving credit line of up to $10.0 million, subject to a borrowing base. See Note 6 for further details regarding this facility.
|
● |
Reduced Capital Expenditures – We limited capital expenditures during 2020.
|
Three Months Ended
|
||||||||||||||||||||||||
|
March 31,
|
|||||||||||||||||||||||
2021
|
2020
|
|||||||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||
United States
|
International
|
Total
|
United States
|
International
|
Total
|
|||||||||||||||||||
Food service technology
|
$
|
2,564
|
$
|
183
|
$
|
2,747
|
$
|
1,239
|
$
|
132
|
$
|
1,371
|
||||||||||||
POS automation
|
1,160
|
4
|
1,164
|
1,554
|
4
|
1,558
|
||||||||||||||||||
Casino and gaming
|
1,964
|
901
|
2,865
|
2,558
|
2,373
|
4,931
|
||||||||||||||||||
Printrex
|
27
|
132
|
159
|
61
|
56
|
117
|
||||||||||||||||||
Transact Services Group
|
1,280
|
86
|
1,366
|
2,003
|
267
|
2,270
|
||||||||||||||||||
Total net sales
|
$
|
6,995
|
$
|
1,306
|
$
|
8,301
|
$
|
7,415
|
$
|
2,832
|
$
|
10,247
|
|
March 31, 2021
|
December 31, 2020
|
||||||
(In thousands)
|
||||||||
Unbilled receivables, current
|
$
|
293
|
$
|
290
|
||||
Unbilled receivables, non-current
|
516
|
591
|
||||||
Customer pre-payments
|
(146
|
)
|
(216
|
)
|
||||
Deferred revenue, current
|
(569
|
)
|
(504
|
)
|
||||
Deferred revenue, non-current
|
(202
|
)
|
(111
|
)
|
||||
Total net contract (liabilities) assets
|
$
|
(108
|
)
|
$
|
50
|
|
March 31, 2021
|
December 31, 2020
|
||||||
(In thousands)
|
||||||||
Raw materials and purchased component parts
|
$
|
4,672
|
$
|
5,467
|
||||
Finished goods
|
5,328
|
5,819
|
||||||
$
|
10,000
|
$
|
11,286
|
Three Months Ended
|
||||||||
|
March 31,
|
|||||||
2021
|
2020
|
|||||||
(In thousands)
|
||||||||
Balance, beginning of period
|
$
|
140
|
$
|
215
|
||||
Warranties issued
|
5
|
45
|
||||||
Warranty settlements
|
(29
|
)
|
(47
|
)
|
||||
Balance, end of period
|
$
|
116
|
$
|
213
|
Three Months Ended
|
||||||||
|
March 31,
|
|||||||
2021
|
2020
|
|||||||
Operating cash outflows from leases
|
$
|
262
|
$
|
259
|
|
March 31, 2021
|
December 31, 2020
|
||||||
Weighted average remaining lease term (in years)
|
4.7
|
4.9
|
||||||
Weighted average discount rate
|
4.1
|
%
|
4.1
|
%
|
|
March 31, 2021
|
December 31, 2020
|
||||||
2021
|
$
|
709
|
$
|
971
|
||||
2022
|
880
|
879
|
||||||
2023
|
713
|
713
|
||||||
2024
|
718
|
718
|
||||||
2025
|
463
|
464
|
||||||
Thereafter
|
340
|
180
|
||||||
Total undiscounted lease payments
|
3,823
|
3,925
|
||||||
Less imputed interest
|
344
|
224
|
||||||
Total lease liabilities
|
$
|
3,479
|
$
|
3,701
|
Item 2. |
MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
● |
Public Offering – On October 16, 2020, the Company raised net proceeds of $8.7 million, after deducting underwriting discounts, commissions and offering expenses, through an underwritten public offering (the “Offering”) and sold an aggregate of 1,380,000 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 the Coronavirus Aid, Relief, and Economic Security Act (the “CARES” Act), which has enabled us to return our furloughed employees to full time employment and to restore certain pay cuts until the PPP Loan proceeds were exhausted.
|
● |
New Credit Facility - We also entered into a new credit facility with Siena Lending Group LLC (the “Siena Credit Facility”) that provides a revolving credit line of up to $10 million, subject to a borrowing base.
|
● |
Reduced Capital Expenditures - We limited capital expenditures during 2020.
|
● |
staggered shifts and a rotational/flexible work schedule to minimize the number of employees at any particular facility at a single time;
|
● |
mandated use of protective equipment, such as masks and gloves, when in common areas, which is provided to employees;
|
● |
spacing seating in workspaces such as manufacturing cells, lunch/break rooms, conference rooms and other common areas to comply with social distancing guidelines;
|
● |
employees who (i) show symptoms of COVID-19 or (ii) have been exposed to someone who shows symptoms or has tested positive for COVID-19 are prohibited from reporting to work for 10 days;
|
● |
visitors are prohibited from entering all facilities;
|
● |
cleaning and disinfecting protocols at all facilities; and
|
● |
daily temperature taking of all employees before entering all facilities.
|
Three Months Ended
|
Three Months Ended
|
|||||||||||||||||||||||
(In thousands, except percentages)
|
March 31, 2021
|
March 31, 2020
|
$ Change
|
% Change
|
||||||||||||||||||||
Food service technology (“FST”)
|
$
|
2,747
|
33.1
|
%
|
$
|
1,371
|
13.4
|
%
|
$
|
1,376
|
100.4
|
%
|
||||||||||||
POS automation
|
1,164
|
14.0
|
%
|
1,558
|
15.2
|
%
|
(394
|
)
|
(25.3
|
%)
|
||||||||||||||
Casino and gaming
|
2,865
|
34.5
|
%
|
4,931
|
48.1
|
%
|
(2,066
|
)
|
(41.9
|
%)
|
||||||||||||||
Printrex
|
159
|
1.9
|
%
|
117
|
1.1
|
%
|
42
|
35.9
|
%
|
|||||||||||||||
TSG
|
1,366
|
16.5
|
%
|
2,270
|
22.2
|
%
|
(904
|
)
|
(39.8
|
%)
|
||||||||||||||
$
|
8,301
|
100.0
|
%
|
$
|
10,247
|
100.0
|
%
|
$
|
(1,946
|
)
|
(19.0
|
%)
|
||||||||||||
International *
|
$
|
1,306
|
15.7
|
%
|
$
|
2,832
|
27.6
|
%
|
$
|
(1,526
|
)
|
(53.9
|
%)
|
* |
International sales do not include sales of printers and terminals made to domestic distributors or other domestic customers who may, in turn, ship those printers and terminals to international destinations.
|
Three Months Ended
|
Three Months Ended
|
|||||||||||||||||||||||
(In thousands, except percentages)
|
March 31, 2021
|
March 31, 2020
|
$ Change
|
% Change
|
||||||||||||||||||||
Domestic
|
$
|
2,564
|
93.3
|
%
|
$
|
1,239
|
90.4
|
%
|
$
|
1,325
|
106.9
|
%
|
||||||||||||
International
|
183
|
6.7
|
%
|
132
|
9.6
|
%
|
51
|
38.6
|
%
|
|||||||||||||||
$
|
2,747
|
100.0
|
%
|
$
|
1,371
|
100.0
|
%
|
$
|
1,376
|
100.4
|
%
|
Three Months Ended
|
Three Months Ended
|
|||||||||||||||||||||||
(In thousands, except percentages)
|
March 31, 2021
|
March 31, 2020
|
$ Change
|
% Change
|
||||||||||||||||||||
Hardware
|
$
|
1,542
|
56.1
|
%
|
$
|
755
|
55.1
|
%
|
$
|
787
|
104.2
|
%
|
||||||||||||
Software, labels and other recurring revenue
|
1,205
|
43.9
|
%
|
616
|
44.9
|
%
|
589
|
95.6
|
%
|
|||||||||||||||
$
|
2,747
|
100.0
|
%
|
$
|
1,371
|
100.0
|
%
|
$
|
1,376
|
100.4
|
%
|
Three Months Ended
|
Three Months Ended
|
|||||||||||||||||||||||
(In thousands, except percentages)
|
March 31, 2021
|
March 31, 2020
|
$ Change
|
% Change
|
||||||||||||||||||||
Domestic
|
$
|
1,160
|
99.7
|
%
|
$
|
1,554
|
99.7
|
%
|
$
|
(394
|
)
|
(25.4
|
%)
|
|||||||||||
International
|
4
|
0.3
|
%
|
4
|
0.3
|
%
|
-
|
0.0
|
%
|
|||||||||||||||
$
|
1,164
|
100.0
|
%
|
$
|
1,558
|
100.0
|
%
|
$
|
(394
|
)
|
(25.3
|
%)
|
Three Months Ended
|
Three Months Ended
|
|||||||||||||||||||||||
(In thousands, except percentages)
|
March 31, 2021
|
March 31, 2020
|
$ Change
|
% Change
|
||||||||||||||||||||
Domestic
|
$
|
1,964
|
68.6
|
%
|
$
|
2,558
|
51.9
|
%
|
$
|
(594
|
)
|
(23.2
|
%)
|
|||||||||||
International
|
901
|
31.4
|
%
|
2,373
|
48.1
|
%
|
(1,472
|
)
|
(62.0
|
%)
|
||||||||||||||
$
|
2,865
|
100.0
|
%
|
$
|
4,931
|
100.0
|
%
|
$
|
(2,066
|
)
|
(41.9
|
%)
|
Three Months Ended
|
Three Months Ended
|
|||||||||||||||||||||||
(In thousands, except percentages)
|
March 31, 2021
|
March 31, 2020
|
$ Change
|
% Change
|
||||||||||||||||||||
Domestic
|
$
|
27
|
17.0
|
%
|
$
|
61
|
52.1
|
%
|
$
|
(34
|
)
|
(55.7
|
%)
|
|||||||||||
International
|
132
|
83.0
|
%
|
56
|
47.9
|
%
|
76
|
135.7
|
%
|
|||||||||||||||
$
|
159
|
100.0
|
%
|
$
|
117
|
100.0
|
%
|
$
|
42
|
35.9
|
%
|
Three Months Ended
|
Three Months Ended
|
|||||||||||||||||||||||
(In thousands, except percentages)
|
March 31, 2021
|
March 31, 2020
|
$ Change
|
% Change
|
||||||||||||||||||||
Domestic
|
$
|
1,280
|
93.7
|
%
|
$
|
2,003
|
88.2
|
%
|
$
|
(723
|
)
|
(36.1
|
%)
|
|||||||||||
International
|
86
|
6.3
|
%
|
267
|
11.8
|
%
|
(181
|
)
|
(67.8
|
%)
|
||||||||||||||
$
|
1,366
|
100.0
|
%
|
$
|
2,270
|
100.0
|
%
|
$
|
(904
|
)
|
(39.8
|
%)
|
Three Months Ended March 31,
|
Percent
|
Percent of
|
Percent of
|
|||||||||||||||
2021
|
2020
|
Change
|
Total Sales - 2021
|
Total Sales - 2020
|
||||||||||||||
$
|
3,189
|
$
|
4,918
|
(35.2
|
%)
|
38.4
|
%
|
48.0
|
%
|
Three Months Ended March 31,
|
Percent
|
Percent of
|
Percent of
|
|||||||||||||||
2021
|
2020
|
Change
|
Total Sales - 2021
|
Total Sales - 2020
|
||||||||||||||
$
|
1,803
|
$
|
1,385
|
30.2
|
%
|
21.7
|
%
|
13.5
|
%
|
Three Months Ended March 31,
|
Percent
|
Percent of
|
Percent of
|
|||||||||||||||
2021
|
2020
|
Change
|
Total Sales - 2021
|
Total Sales - 2020
|
||||||||||||||
$
|
1,443
|
$
|
2,208
|
(34.6
|
%)
|
17.4
|
%
|
21.5
|
%
|
Three Months Ended March 31,
|
Percent
|
Percent of
|
Percent of
|
|||||||||||||||
2021
|
2020
|
Change
|
Total Sales - 2021
|
Total Sales - 2020
|
||||||||||||||
$
|
2,609
|
$
|
2,620
|
(0.4
|
%)
|
31.4
|
%
|
25.6
|
%
|
Three Months Ended March 31,
|
Percent
|
Percent of
|
Percent of
|
|||||||||||||||
2021
|
2020
|
Change
|
Total Sales - 2021
|
Total Sales - 2020
|
||||||||||||||
$
|
(2,666
|
)
|
$
|
(1,295
|
)
|
105.9
|
%
|
(32.1
|
%)
|
(12.6
|
%)
|
● |
We reported a net loss of $2.2 million.
|
● |
We recorded depreciation and amortization of $0.2 million, and share-based compensation expense of $0.3 million.
|
● |
Accounts receivable increased $1.3 million, or 40%, primarily due to increased sales volume late in the first quarter of 2021.
|
● |
Inventory decreased $1.3 million, or 11%, due to the utilization of inventory on hand to fulfill sales in response to the pandemic.
|
● |
Other current and long-term assets increased $0.1 million, or 7%, due largely to advance payments made in the first quarter of 2021 for annual ERP software maintenance.
|
● |
Accounts payable increased $0.2 million, or 13%, due primarily to the timing of payments during the first quarter of 2020.
|
● |
Accrued liabilities and other liabilities decreased $1.0 million, or 13%, due primarily to the payment of 2020 annual bonuses in March 2021.
|
● |
We reported a net loss of $1.0 million.
|
● |
We recorded depreciation and amortization of $0.2 million, and share-based compensation expense of $0.2 million.
|
● |
Accounts receivable decreased $0.1 million, or 1%, primarily due to lower sales volume during the first three months of 2020.
|
● |
Inventory increased $0.6 million, or 5%, due to the purchase of inventory during the first quarter of 2020 to support anticipated sales that did not occur due to the impact of the COVID-19 pandemic on our sales in March 2020.
|
● |
Other current and long-term assets increased $0.3 million, or 26%, due largely to advance payments made in the first quarter of 2020 for our annual ERP software maintenance.
|
● |
Accounts payable decreased $1.2 million, or 42%, due primarily to inventory purchases made towards the end of the fourth quarter of 2019 that were subsequently paid in the first quarter of 2020.
|
● |
Accrued liabilities and other liabilities decreased $0.8 million, or 11%, due primarily to the payment of 2019 annual bonuses in March 2020.
|
Financial Covenant
|
Requirement
|
Calculation for the period from April 1, 2020 to March 31, 2021
|
||
EBITDA
|
Minimum of $(7,984)
|
$(7,144)
|
Item 3. |
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|
Item 4. |
CONTROLS AND PROCEDURES
|
Item 1. |
LEGAL PROCEEDINGS
|
Item 1A. |
RISK FACTORS
|
Item 2. |
UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
|
Item 3. |
DEFAULTS UPON SENIOR SECURITIES
|
Item 4. |
MINE SAFETY DISCLOSURES
|
Item 5. |
OTHER INFORMATION
|
Item 6. |
EXHIBITS
|
10.1*
|
Second Amendment to Lease by and between 2319 Hamden Center I, L.L.C. and TransAct Technologies dated April 30, 2021.
|
|
31.1 *
|
Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
31.2 *
|
Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
32.1 **
|
Certification pursuant to 18 U.S.C. Section 1350 as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002.
|
|
101.INS
|
Inline XBRL Instance Document.
|
|
101.SCH
|
Inline XBRL Taxonomy Extension Schema Document.
|
|
101.CAL
|
Inline XBRL Taxonomy Extension Calculation Linkbase Document.
|
|
101.DEF
|
Inline XBRL Taxonomy Extension Definition Linkbase Document.
|
|
101.LAB
|
Inline XBRL Taxonomy Extension Label Linkbase Document.
|
|
101.PRE
|
Inline XBRL Taxonomy Extension Presentation Linkbase Document.
|
|
104
|
Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).
|
* |
Filed herewith.
|
** |
Furnished herewith.
|
TRANSACT TECHNOLOGIES INCORPORATED
|
|
(Registrant)
|
|
By: /s/ Steven A. DeMartino
|
|
Dated: May 13, 2021
|
Steven A. DeMartino
|
President, Chief Financial Officer, Treasurer and Secretary
|
|
(Principal Financial Officer)
|
|
By: /s/ David B. Peters
|
|
Dated: May 13, 2021
|
David B. Peters
|
Vice President and Chief Accounting Officer
|
|
(Principal Accounting Officer)
|
Period
|
Base Rent Per SF
|
Monthly Base Rent
|
Annual Base Rent
|
|||||||||
5/1/2021 – 4/30/2022
|
$
|
19.48
|
$
|
17,981.90
|
$
|
215,782.85
|
||||||
5/1/2022 – 4/30/2023
|
$
|
19.87
|
$
|
18,338.36
|
$
|
220,060.25
|
||||||
5/1/2023 – 10/31/2023
|
$
|
20.27
|
$
|
18,707.52
|
$
|
224,490.25
|
||||||
If the option period is exercised:
|
||||||||||||
11/1/2023 – 10/31/2024
|
$
|
20.68
|
$
|
19,085.92
|
$
|
229,031.00
|
||||||
11/1/2024 – 10/31/2025
|
$
|
21.10
|
$
|
19,473.55
|
$
|
233,682.50
|
1. |
I have reviewed this quarterly report on Form 10-Q of TransAct Technologies Incorporated;
|
2. |
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3. |
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4. |
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a) |
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b) |
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c) |
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d) |
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant's fourth fiscal quarter in case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5. |
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):
|
(a) |
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
(b) |
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
/s/ Bart C. Shuldman
|
|
Bart C. Shuldman
|
|
Chairman and Chief Executive Officer
|
|
1. |
I have reviewed this quarterly report on Form 10-Q of TransAct Technologies Incorporated;
|
2. |
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3. |
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4. |
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a) |
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b) |
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c) |
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d) |
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant's fourth fiscal quarter in case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5. |
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):
|
(a) |
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
(b) |
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
/s/ Steven A. DeMartino
|
|
Steven A. DeMartino
|
|
President, Chief Financial Officer, Treasurer and Secretary
|
|
(1) |
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2) |
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
/s/ Bart C. Shuldman
|
|
Bart C. Shuldman
|
|
Chairman and Chief Executive Officer
|
|
/s/ Steven A. DeMartino
|
|
Steven A. DeMartino
|
|
President, Chief Financial Officer, Treasurer and Secretary
|
|