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Segment reporting
 9 Months Ended
Sep. 30, 2025
Segment reporting [Abstract]  
Segment reporting
6. Segment reporting
We apply the provisions of 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 the provision of 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 CODM, 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 CODM 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
    
Nine Months Ended
  

 
September 30,
    
September 30,
  
   
2025
    
2024
    
2025
    
2024
  
   
(In thousands)
  
Revenues
  
$
13,176
    
$
10,867
    
$
40,027
    
$
33,153
  
                                 
Cost of materials sold
    
4,623
      
4,161
      
14,790
      
11,217
  
Compensation costs
    
5,100
      
4,506
      
15,423
      
14,207
  
Professional services
    
846
      
828
      
2,697
      
2,755
  
Occupancy costs
    
374
      
383
      
1,106
      
1,114
  
Marketing expenses
    
192
      
205
      
668
      
785
  
IT expenses
    
339
      
325
      
986
      
941
  
Severance expenses
    
–
      
5
      
8
      
75
  
Depreciation and amortization
    
163
      
208
      
507
      
844
  
Other segment expenses (1)
    
1,525
      
1,083
      
4,101
      
3,791
  
     
13,162
      
11,704
      
40,286
      
35,729
  
Operating income (loss)
    
14
      
(837
)
    
(259
)
    
(2,576
)
                                 
Interest income
    
147
      
122
      
380
      
355
  
Interest expense
    
(86
)
    
(80
)
    
(257
)
    
(239
)
Other, net
    
(35
)
    
96
      
143
      
43
  
Income tax (expense) benefit
    
(25
)
    
148
      
(116
)
    
511
  
Net income (loss)
  
$
15
    
$
(551
)
  
$
(109
)
  
$
(1,906
)

(1)
 Other segment expenses included in segment net income (loss) 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:

   
Three Months Ended
    
Nine Months Ended
  

 
September 30,
    
September 30,
  
   
2025
    
2024
    
2025
    
2024
  
   
(In thousands)
  
Net income (loss)
  
$
15
    
$
(551
)
  
$
(109
)
  
$
(1,906
)
Interest income, net
    
(61
)
    
(42
)
    
(123
)
    
(116
)
Income tax expense (benefit)
    
25
      
(148
)
    
116
      
(511
)
Depreciation and amortization
    
163
      
208
      
507
      
844
  
EBITDA
    
142
      
(533
)
    
391
      
(1,689
)
                                 
Share-based compensation
    
527
      
329
      
1,300
      
873
  
                                 
Adjusted EBITDA
  
$
669
    
$
(204
)
  
$
1,691
    
$
(816
)