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Segment reporting
 6 Months Ended
Jun. 30, 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 large and emerging 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 lesser extent, from other countries in the region, including China.
The following table provides the operating financial results of our segment:

   
Three Months Ended
    
Six Months Ended
  

 
June 30,
    
June 30,
  
   
2025
    
2024
    
2025
    
2024
  
   
(In thousands)
  
Revenues
  
$
13,798
    
$
11,599
    
$
26,851
    
$
22,286
  
                                 
Cost of materials sold
    
5,203
      
3,856
      
10,167
      
7,056
  
Compensation costs
    
5,486
      
4,554
      
10,323
      
9,700
  
Professional services
    
879
      
1,002
      
1,851
      
1,927
  
Occupancy costs
    
368
      
369
      
732
      
731
  
Marketing expenses
    
232
      
329
      
476
      
580
  
IT expenses
    
319
      
318
      
648
      
616
  
Severance expenses
    
1
      
43
      
8
      
70
  
Depreciation and amortization
    
171
      
241
      
344
      
636
  
Other segment expenses (1)
    
1,397
      
1,325
      
2,575
      
2,709
  
     
14,056
      
12,037
      
27,124
      
24,025
  
Operating loss
    
(258
)
    
(438
)
    
(273
)
    
(1,739
)
                                 
Interest income
    
126
      
106
      
233
      
234
  
Interest expense
    
(86
)
    
(80
)
    
(171
)
    
(160
)
Other, net
    
115
      
7
      
178
      
(53
)
Income tax (expense) benefit
    
(40
)
    
86
      
(91
)
    
363
  
Net loss
  
$
(143
)
  
$
(319
)
  
$
(124
)
  
$
(1,355
)

(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 loss to EBITDA and adjusted EBITDA follows:

   
Three Months Ended
    
Six Months Ended
  

 
June 30,
    
June 30,
  
   
2025
    
2024
    
2025
    
2024
  
   
(In thousands)
  
Net loss
  
$
(143
)
  
$
(319
)
  
$
(124
)
  
$
(1,355
)
Interest income, net
    
(40
)
    
(26
)
    
(62
)
    
(74
)
Income tax expense (benefit)
    
40
      
(86
)
    
91
      
(363
)
Depreciation and amortization
    
171
      
241
      
344
      
636
  
EBITDA
    
28
      
(190
)
    
249
      
(1,156
)
                                 
Share-based compensation
    
450
      
279
      
773
      
544
  
                                 
Adjusted EBITDA
  
$
478
    
$
89
    
$
1,022
    
$
(612
)