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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
)