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Segment reporting
 3 Months Ended
Mar. 31, 2025
Segment reporting [Abstract]  
Segment reporting
6. Segment reporting
We apply the provisions of FASB ASC Topic 280, “Segment Reporting.”  We view our operations and manage our business as one segment: the design, development, and marketing of software-driven technology and printing solutions for high growth markets, and provide related services, supplies and spare parts.  Factors used to identify TransAct’s single operating segment include the similar design, construction and functionality of our products and services, the combined research & development team that supports the entire company, a combined assembly, production and supply chain logistics process used to construct our products and services and a similar class of customers within our core markets (distributors, resellers, original equipment manufacturers (“OEMs”) and end users).
Other factors used to identify TransAct’s single operating segment include the organizational structure of the Company and the financial information available for evaluation by the chief operating decision-maker (“CODM”) in making decisions about how to allocate resources and assess performance.  The Company’s chief operating decision makers, who are the Company’s Chief Executive Officer and the Company’s Chief Financial Officer, utilize a consolidated approach to assess the performance of and allocate resources to the business.
We generally use measures of sales, gross margin percentage, net income, earnings before interest, taxes, depreciation and amortization (“EBITDA”) and adjusted EBITDA to make operational and strategic decisions.  These financial measures are compared to budgeted and forecasted amounts by the CODMs on a regular basis to measure our progress towards our strategic plans, pursue product enhancements, conduct research and development initiatives and make any other necessary overall strategic changes to the business. We disclose these non-GAAP segment results because we believe they provide meaningful supplemental information and are used by the CODM in making decisions about how to allocate resources and assess performance.
We are currently dependent upon one manufacturer located in Thailand for the manufacturing and assembly of substantially all of our printers and terminals. The majority of raw components used in the manufacturing and assembly of our printers and terminals are sourced locally in Thailand, and to a lessor extent, from other countries in the region, including China.
The following table provides the operating financial results of our segment:

   
March 31,
  

 
2025
    
2024
  
   
(In thousands)
  
Revenues
  
$
13,053
    
$
10,687
  
                 
Cost of materials sold
    
4,964
      
3,200
  
Compensation costs
    
4,837
      
5,146
  
Professional services
    
971
      
924
  
Occupancy costs
    
364
      
362
  
Marketing expenses
    
244
      
251
  
IT expenses
    
329
      
298
  
Severance expense
    
7
      
27
  
Depreciation and amortization
    
173
      
395
  
Other segment expenses (1)
    
1,179
      
1,385
  
      13,068
       11,988  
Operating loss
    
(15
)
    
(1,301
)
                 
Interest income
    
107
      
128
  
Interest expense
    
(85
)
    
(80
)
Other, net
    
63
      
(60
)
Income tax (expense) benefit
    
(51
)
    
277
  
Net income (loss)
  
$
19
    
$
(1,036
)

(1)
 Other segment expenses included in segment net income primarily include other cost of goods sold, other administrative costs and engineering costs.

A reconciliation of net income (loss) to EBITDA and adjusted EBITDA follows:

   
March 31,
  

 
2025
    
2024
  
   
(In thousands)
  
Net income (loss)
  
$
19
    
$
(1,036
)
Interest income, net
    
(22
)
    
(48
)
Income tax expense (benefit)
    
51
      
(277
)
Depreciation and amortization
    
173
      
395
  
EBITDA
    
221
      
(966
)
                 
Share-based compensation
    
323
      
265
  
                 
Adjusted EBITDA
  
$
544
    
$
(701
)