View Filing Data

Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 30, 2020	Jul. 31, 2020
Cover [Abstract]
Entity Registrant Name	TRANSACT TECHNOLOGIES INC
Entity Central Index Key	0001017303
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Shell Company	false
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		7,548,385
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2020
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q2
Document Quarterly Report	true
Document Transition Report	false
Entity File Number	0-21121
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	06-1456680
Entity Address, Address Line One	One Hamden Center
Entity Address, Address Line Two	2319 Whitney Avenue, Suite 3B
Entity Address, City or Town	Hamden
Entity Address, State or Province	CT
Entity Address, Postal Zip Code	06518
City Area Code	203
Local Phone Number	859-6800
Title of 12(b) Security	Common stock, par value $0.01 per share
Trading Symbol	TACT
Security Exchange Name	NASDAQ

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 3,082	$ 4,203
Accounts receivable, net	3,290	6,418
Note receivable	100	1,017
Inventories	11,905	12,099
Prepaid income taxes	126	180
Other current assets	970	998
Total current assets	19,473	24,915
Fixed assets, net of accumulated depreciation of $19,334 and $19,010, respectively	2,396	2,244
Note receivable, net of current portion	1,547	0
Right-of-use asset	3,970	2,855
Goodwill	2,621	2,621
Deferred tax assets	4,057	2,565
Intangible assets, net of accumulated amortization of $3,896 and $3,771, respectively	692	817
Other assets	218	44
Total noncurrent assets	15,501	11,146
Total assets	34,974	36,061
Current liabilities:
Accounts payable	1,316	2,960
Accrued liabilities	2,638	3,041
Revolving bank loan payable	6	0
Lease liability	878	945
Deferred revenue	519	700
Total current liabilities	5,357	7,646
Long-term debt	2,173	0
Deferred revenue, net of current portion	145	219
Lease liability, net of current portion	3,241	2,104
Other liabilities	170	166
Total noncurrent liabilities	5,729	2,489
Total liabilities	11,086	10,135
Shareholders' equity:
Common stock, $0.01 par value, 20,000,000 shares authorized; 11,592,202 and 11,515,090 shares issued, respectively; 7,547,360 and 7,470,248 shares outstanding, respectively	116	115
Additional paid-in capital	33,329	32,604
Retained earnings	22,503	25,348
Accumulated other comprehensive income (loss), net of tax	50	(31)
Treasury stock, at cost, 4,044,842 shares	(32,110)	(32,110)
Total shareholders' equity	23,888	25,926
Total liabilities and shareholders' equity	$ 34,974	$ 36,061

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Assets:
Fixed assets, accumulated depreciation	$ 19,334	$ 19,010
Intangible assets, accumulated amortization	$ 3,896	$ 3,771
Shareholders' equity:
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	20,000,000	20,000,000
Common stock, shares issued (in shares)	11,592,202	11,515,090
Common stock, shares outstanding (in shares)	7,547,360	7,470,248
Treasury stock (in shares)	4,044,842	4,044,842

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) [Abstract]
Net sales	$ 5,285	$ 11,350	$ 15,532	$ 22,900
Cost of sales	2,995	5,646	8,324	11,110
Gross profit	2,290	5,704	7,208	11,790
Operating expenses:
Engineering, design and product development	1,367	1,115	2,752	2,280
Selling and marketing	1,419	2,089	3,627	3,943
General and administrative	2,242	2,191	4,862	4,481
Operating expenses	5,028	5,395	11,241	10,704
Operating (loss) income	(2,738)	309	(4,033)	1,086
Interest and other expense:
Interest, net	(25)	(7)	(22)	(13)
Other, net	(11)	(142)	(176)	(52)
Interest and other expense	(36)	(149)	(198)	(65)
(Loss) income before income taxes	(2,774)	160	(4,231)	1,021
Income tax (benefit) provision	(921)	(26)	(1,386)	89
Net (loss) income	$ (1,853)	$ 186	$ (2,845)	$ 932
Net (loss) income per common share:
Basic (in dollars per share)	$ (0.25)	$ 0.02	$ (0.38)	$ 0.12
Diluted (in dollars per share)	$ (0.25)	$ 0.02	$ (0.38)	$ 0.12
Shares used in per-share calculation:
Basic (in shares)	7,543	7,462	7,525	7,461
Diluted (in shares)	7,543	7,597	7,525	7,607

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (unaudited) [Abstract]
Net (loss) income	$ (1,853)	$ 186	$ (2,845)	$ 932
Foreign currency translation adjustment, net of tax	10	90	81	99
Comprehensive (loss) income	$ (1,843)	$ 276	$ (2,764)	$ 1,031

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 1A
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121641772&loc=SL7669619-108580

Reference 2: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22694-107794

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(22))
-URI http://asc.fasb.org/extlink&oid=120399700&loc=SL114874048-224260

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22694-107794

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=109222650&loc=SL51721683-107760

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22595-107794

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 1B
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121641772&loc=SL7669625-108580

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599

Reference 11: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(18))
-URI http://asc.fasb.org/extlink&oid=120400993&loc=SL114874131-224263

Reference 12: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(20))
-URI http://asc.fasb.org/extlink&oid=120395209&loc=SL114868664-224227

Reference 13: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 230
-SubTopic 10
-Section 45
-Paragraph 28
-URI http://asc.fasb.org/extlink&oid=121586364&loc=d3e3602-108585

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (b)(2)
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22499-107794

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22663-107794

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 28
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=75031198&loc=d3e14064-108612

Reference 17: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8906-108599

Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22583-107794

Reference 19: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(g)(1)(ii))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 20: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 60B
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121326447&loc=SL5780133-109256

Reference 21: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 323
-SubTopic 10
-Section 50
-Paragraph 3
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=114001798&loc=d3e33918-111571

Reference 22: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 23: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22658-107794

+ Details

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Cash flows from operating activities:
Net (loss) income	$ (2,845)	$ 932
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:
Share-based compensation expense	413	386
Depreciation and amortization	495	488
Deferred income taxes	(1,485)	(70)
Foreign currency transaction losses	215	90
Changes in operating assets and liabilities:
Accounts receivable	3,060	1,678
Inventories	101	(1,402)
Prepaid income taxes	49	87
Other current and long term assets	73	(328)
Accounts payable	(1,660)	296
Accrued liabilities and other liabilities	(725)	(566)
Net cash (used in) provided by operating activities	(2,309)	1,591
Cash flows from investing activities:
Capital expenditures	(489)	(422)
Additions to capitalized software	0	(4)
Issuance of note receivable	(600)	0
Net cash used in investing activities	(1,089)	(426)
Cash flows from financing activities:
Revolving credit line borrowings	2,756	0
Revolving credit line payments	(2,750)	0
Long-term debt borrowings	2,173	0
Payment of dividends on common stock	0	(1,339)
Proceeds from stock option exercises	353	0
Withholding taxes paid on stock issuances	(41)	(214)
Payment of bank financing costs	(213)	0
Net cash provided by (used in) financing activities	2,278	(1,553)
Effect of exchange rate changes on cash and cash equivalents	(1)	(6)
Decrease in cash and cash equivalents	(1,121)	(394)
Cash and cash equivalents, beginning of period	4,203	4,691
Cash and cash equivalents, end of period	3,082	4,297
Supplemental schedule of non-cash investing activities:
Capital expenditures included in accounts payable	$ 36	$ 135

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (unaudited) - USD ($) shares in Thousands, $ in Thousands	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Treasury Stock [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Total
Beginning balance at Dec. 31, 2018	$ 115	$ 32,129	$ 27,515		$ (82)	$ 27,567
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Share-based compensation expense		386
Issuance of shares from exercise of stock options	0	0
Relinquishment of stock awards and deferred stock units to pay for withholding taxes		(214)
Net income			932			932
Dividends declared and paid on common stock			(1,339)
Foreign currency translation adjustment, net of tax					99	99
Ending balance at Jun. 30, 2019		32,301	27,108	$ (32,110)	17	$ 27,431
Supplemental share information
Issuance of shares from stock awards (in shares)						73
Relinquishment of stock awards to pay withholding taxes (in shares)						21
Dividends per share of common stock (in dollars per share)						$ 0.18
Beginning balance at Mar. 31, 2019	115	32,103	27,593		(73)	$ 27,628
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Share-based compensation expense		213
Issuance of shares from exercise of stock options	0	0
Relinquishment of stock awards and deferred stock units to pay for withholding taxes		(15)
Net income			186			186
Dividends declared and paid on common stock			(671)
Foreign currency translation adjustment, net of tax					90	90
Ending balance at Jun. 30, 2019		32,301	27,108	(32,110)	17	$ 27,431
Supplemental share information
Issuance of shares from stock awards (in shares)						16
Relinquishment of stock awards to pay withholding taxes (in shares)						2
Dividends per share of common stock (in dollars per share)						$ 0.09
Beginning balance at Dec. 31, 2019	115	32,604	25,348		(31)	$ 25,926
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Share-based compensation expense		413
Issuance of shares from exercise of stock options	1	353
Relinquishment of stock awards and deferred stock units to pay for withholding taxes		(41)
Net income			(2,845)			(2,845)
Dividends declared and paid on common stock			0
Foreign currency translation adjustment, net of tax					81	81
Ending balance at Jun. 30, 2020	116	33,329	22,503	(32,110)	50	$ 23,888
Supplemental share information
Issuance of shares from stock awards (in shares)						91
Relinquishment of stock awards to pay withholding taxes (in shares)						14
Dividends per share of common stock (in dollars per share)						$ 0
Beginning balance at Mar. 31, 2020	116	33,103	24,356		40	$ 25,505
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Share-based compensation expense		226
Issuance of shares from exercise of stock options	0	0
Relinquishment of stock awards and deferred stock units to pay for withholding taxes		0
Net income			(1,853)			(1,853)
Dividends declared and paid on common stock			0
Foreign currency translation adjustment, net of tax					10	10
Ending balance at Jun. 30, 2020	$ 116	$ 33,329	$ 22,503	$ (32,110)	$ 50	$ 23,888
Supplemental share information
Issuance of shares from stock awards (in shares)						9
Relinquishment of stock awards to pay withholding taxes (in shares)						0
Dividends per share of common stock (in dollars per share)						$ 0

Basis of presentation

6 Months Ended

Jun. 30, 2020

Basis of presentation [Abstract]

Basis of presentation

1. Basis of presentation

The accompanying unaudited financial statements of TransAct Technologies Incorporated (“TransAct”, the “Company”, “we”, “us”, or “our”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP to be included in full year financial statements. In the opinion of management, all adjustments considered necessary for a fair statement of the results for the periods presented have been included and are of a normal recurring nature. The December 31, 2019 Condensed Consolidated Balance Sheet data was derived from audited financial statements, but does not include all disclosures required by U.S. GAAP. These interim financial statements should be read in conjunction with the audited financial statements for the year ended December 31, 2019 included in our Annual Report on Form 10-K for the year ended December 31, 2019.

The financial position and results of operations of our U.K. subsidiary are measured using local currency as the functional currency. Assets and liabilities of such subsidiary have been translated at the end of period exchange rates, and related revenues and expenses have been translated at the exchange rate as of the date the transaction was recognized, with the resulting translation gain or loss recorded in “Accumulated other comprehensive income (loss), net of tax”, in the Condensed Consolidated Balance Sheets and Condensed Consolidated Statements of Changes in Shareholders’ Equity. Transaction gains and losses are included in “Other, net” in the Condensed Consolidated Statements of Operations.

The results of operations for the three and six months ended June 30, 2020 are not necessarily indicative of the results to be expected for the full year ending December 31, 2020.

Impact of the COVID-19 Pandemic

The unprecedented and rapid spread of COVID-19 and the resulting social distancing measures, including closures and restricted openings of restaurants and casinos implemented by federal, state and local authorities, have significantly reduced recent customer demand and disrupted portions of our supply chain, including delayed product shipments from our two manufacturers located in China and Thailand. We are monitoring indicators of demand recovery, including our sales pipeline, customer orders and product shipments to ascertain an estimate of the full-year impact; however, the length and severity of the reduction in demand due to the pandemic is uncertain. Accordingly, we expect that the second half of 2020 will continue to be negatively impacted.

While we do expect a modest recovery in the second half of 2020 as state and local authorities continue to lift business closures and restrictions, the exact timing and pace of recovery is uncertain given the significant disruption of the pandemic on the operations of our customers. In response to these developments, we have implemented measures to help mitigate the impact on our financial position and operations. These measures include, but are not limited to, the following:

Expense Management. With the reduction in net sales, we have implemented, and will continue to implement cost saving initiatives, including:

•	a reduction of our workforce starting in July by approximately 20% through a combination of employee terminations and temporary furloughs which we expect to continue through the end of 2020;

•

a 10% reduction in the salaries of all salaried, non-commissioned employees, including executive officers starting in March. From May 1, 2020 subsequent to receiving the PPP Loan (see definition below) until early July 2020, employees below the vice president level were paid their full salary in order to maximize the use of the PPP Loan proceeds. Beginning in July 2020, we also instituted a 10% pay reduction for all hourly employees;

•	a reduction in sales commissions for all commissioned employees starting in March;

•	a 10% reduction of cash retainer fees for all non-employee directors starting in March; and

•	the elimination of discretionary spending wherever possible starting in March.

Balance Sheet, Cash Flow and Liquidity. In addition to the expense management actions noted above, we have taken the following actions to increase liquidity and strengthen our financial position.

•

PPP Loan - On May 1, 2020, the Company was granted a $2.2 million loan under the Paycheck Protection Program (the “PPP Loan”) administered by the Small Business Administration (“SBA”) established under Division A, Title I of the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act, which enabled us to return our furloughed employees to full time employment until the PPP Loan was fully utilized by allowable payroll costs through June 30, 2020.

•	New Credit Facility - On March 13, 2020, we entered into a new credit with Siena Lending Group LLC that provides a revolving credit line of up to $10.0 million, subject to a borrowing base.

•	Reduced Capital Expenditures - We also have limited capital expenditures until market conditions improve.

We may further modify or supplement the expense management measures we have implemented and the actions we have taken to increase liquidity as the timing and extent of customer demand recovery develops.

After reviewing whether conditions and/or events raise substantial doubt about our ability to meet future financial obligations over the next twelve months, including consideration of the actions taken to manage expenses and liquidity, we believe that our net cash to be provided by operations combined with our cash and cash equivalents and borrowing availability under our revolving credit facility will provide sufficient liquidity to fund our current obligations, capital spending, and working capital requirements and to comply with the financial covenants of our credit facility over at least twelve months from the date these financial statements were issued.

Use of Assumptions and Estimates

Management’s belief that the Company will be able to fund its planned operations over at least the next 12 months is based on assumptions which involve significant judgment and estimates of future revenues, capital spend and other operating costs. Our current assumptions are that casinos and restaurants will continue to gradually reopen, although in a limited capacity, during the second half of 2020, but that many casinos and restaurants may delay purchases of new slot machines and our BOHA! products, respectively, due to the extended business closures. Based on these assumptions we anticipate that sales in casino and gaming and food service technology will continue to be negatively impacted. We have performed a sensitivity analysis on these assumptions to forecast the impact of a slower-than-anticipated recovery and believe that we will be able to take additional financial and operational actions if necessary to mitigate the impact of lower-than-anticipated sales. These actions include additional expense reductions and capital raising activities, including participation in certain programs established under the CARES Act.

In addition, the presentation of the accompanying unaudited financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenue and expenses, and the disclosure of contingent assets and liabilities. Our estimates include those related to revenue recognition, inventory obsolescence, the valuation of deferred tax assets and liabilities, depreciable lives of equipment, warranty obligations, and contingent liabilities. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances.

Valuation of Goodwill, Indefinite-Lived Intangible Assets and Long-Lived Assets

We perform a fair value-based impairment test to the carrying value of goodwill and indefinite-lived intangible assets on an annual basis (as of December 31) and, if certain events or circumstances indicate that an impairment loss may have been incurred, on an interim basis. Our fourth quarter 2019 quantitative impairment test of goodwill and indefinite-lived intangible assets indicated that there was no indication of impairment as the fair value exceeded our carrying value.

During the three months ended March 31, 2020, our stock price declined to the lowest price since 2009. We determined that the significant decline in our market capitalization and broader economic downturn arising from the COVID-19 pandemic was a triggering event and an indicator that it was more likely than not that the carrying value of goodwill exceeded its fair value. Therefore, we concluded that quantitative analyses were required to be performed due to the triggering event occurring during the first quarter of 2020.

We view our operations and manage our business as one operating unit. We utilized an implied market value method under the market approach to calculate the fair value of the Company as of March 31, 2020, which we determined was the best approximation of fair value in the current social and economic environment. Based on our interim impairment assessment as of March 31, 2020, we determined that no goodwill or intangible asset impairment occurred and the fair value of goodwill was substantially higher than our carrying value.

As of June 30, 2020, we determined that no new triggering events had occurred during the second quarter of 2020 and as a result an updated impairment review was not performed. We will continue to monitor and evaluate the carrying value of goodwill. We may be subject to impairments in the future depending on how long the economic and social disruptions resulting from COVID-19 pandemic persist.

Revenue

6 Months Ended

Jun. 30, 2020

Revenue [Abstract]

Revenue

2. Revenue

We account for revenue in accordance with ASC Topic 606: Revenue from Contracts with Customers.

Disaggregation of revenue

The following table disaggregates our revenue by market-type, as we believe it best depicts how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors. Sales and usage-based taxes are excluded from revenues. We have reclassified sales of labels and other recurring revenue items, which includes extended warranty and service contracts, and technical support services related to our food service technology market, previously included in TSG, to food service technology for all periods presented.

	Three Months Ended						Three Months Ended
	June 30, 2020						June 30, 2019
	(In thousands)
	United States		International		Total		United States		International		Total
Food service technology	$	1,056	$	148	$	1,204	$	978	$	145	$	1,123
POS automation and banking		481		-		481		1,639		5		1,644
Casino and gaming		970		390		1,360		3,492		2,139		5,631
Lottery		817		-		817		132		2		134
Printrex		6		2		8		230		55		285
TransAct Services Group		1,271		144		1,415		2,244		289		2,533
Total net sales	$	4,601	$	684	$	5,285	$	8,715	$	2,635	$	11,350

	Six Months Ended						Six Months Ended
	June 30, 2020						June 30, 2019
	(In thousands)
	United States		International		Total		United States		International		Total
Food service technology	$	2,295	$	280	$	2,575	$	2,095	$	241	$	2,336
POS automation and banking		2,035		4		2,039		2,898		23		2,921
Casino and gaming		3,528		2,763		6,291		6,916		4,198		11,114
Lottery		817		-		817		829		2		831
Printrex		67		58		125		527		100		627
TransAct Services Group		3,274		411		3,685		4,457		614		5,071
Total net sales	$	12,016	$	3,516	$	15,532	$	17,722	$	5,178	$	22,900

Contract balances

Our contract liabilities consist of customer pre-payments and deferred revenue. Customer prepayments are reported as “Accrued liabilities” in current liabilities in the Condensed Consolidated Balance Sheets and represent customer payments made in advance of performance obligations in instances where credit has not been extended and are recognized as revenue when the performance obligation is complete. Deferred revenue is reported separately in current liabilities and non-current liabilities and consists of our extended warranty contracts, technical support for our food service technology terminals, EPICENTRAL™ maintenance contracts and testing service contracts and prepaid software subscriptions for our BOHA! software applications, and is recognized as revenue as (or when) we perform under the contract. We do not have any contract asset balances as of June 30, 2020 or December 31, 2019. For the first six months of 2020, we recognized revenue of $0.7 million related to our contract liabilities at December 31, 2019. For the six months ended June 30, 2019, the Company recognized revenue of $0.3 million related to our contract liabilities at December 31, 2018. Total contract liabilities consist of the following:

	June 30, 2020		December 31, 2019
	(In thousands)

Customer pre-payments	$	72	$	232
Deferred revenue, current		519		700
Deferred revenue, non-current		145		219
Total contract liabilities	$	736	$	1,151

Remaining performance obligations

Remaining performance obligations represent the transaction price of firm orders for which a good or service has not been delivered to our customer. As of June 30, 2020, the aggregate amount of transaction prices allocated to remaining performance obligations was $1.8 million. The Company expects to recognize revenue on $1.6 million of its remaining performance obligations within the next 12 months, $0.1 million within the next 24 months and the balance of these remaining performance obligations within the next 36 months.

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI http://asc.fasb.org/topic&trid=49130388

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130551-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130556-203045

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130550-203045

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130558-203045

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

+ Details

Note receivable	6 Months Ended
Note receivable	Jun. 30, 2020
Note receivable [Abstract]
Note receivable	3. Note receivable The note receivable balance relates to a loan given to a third party with an interest rate of 4.5%, which was due in April 2020. The note includes a lender recourse provision that enables us to apply payments that would have been due to the third party under a previously signed long-term royalty agreement towards the loan balance. A $100 thousand royalty fee is scheduled to be paid to the third party in January 2021 that will instead be applied towards the note receivable balance as it becomes due. As a result, $100 thousand of the balance was classified as current and the remaining $1.5 million is expected to be reduced thereafter using the lender recourse provision. Notes receivable are stated at unpaid balances and interest income is recognized on the accrual method. In March 2020, we loaned an additional $600 thousand to the third party. For the three and six months ended June 30, 2020 we recorded $18 thousand and $31 thousand of interest income, respectively. As of June 30, 2020, we have no allowances for loan losses, unamortized deferred loan fees or unearned discounts.

Inventories

6 Months Ended

Jun. 30, 2020

Inventories [Abstract]

Inventories

4. Inventories

The components of inventories were:

	June 30, 2020		December 31, 2019
	(In thousands)

Raw materials and purchased component parts	$	8,391	$	7,724
Work-in-process		5		–
Finished goods		3,509		4,375
	$	11,905	$	12,099

Accrued product warranty liability

6 Months Ended

Jun. 30, 2020

Accrued product warranty liability [Abstract]

Accrued product warranty liability

5. Accrued product warranty liability

We generally provide warranties on our products for up to 24 months and record the estimated cost of such product warranties at the time the sale is recorded. Estimated warranty costs are based upon actual past experience of product repairs and the related estimated cost of labor and material to make the necessary repairs.

The following table summarizes the activity recorded in the accrued product warranty liability during the six months ended June 30, 2020 and 2019:

	Six Months Ended June 30,
	2020			2019
	(In thousands)

Balance, beginning of period	$	215		$	273
Warranties issued		55			81
Warranty settlements		(78	)		(130	)
Balance, end of period	$	192		$	224

As of June 30, 2020, $153 thousand of the accrued product warranty liability was classified as current in "Accrued liabilities" in the Condensed Consolidated Balance Sheets and the remaining $39 thousand was classified as non-current in "Other liabilities".

Debt	6 Months Ended
Debt	Jun. 30, 2020
Debt [Abstract]
Debt	6. Debt On March 13, 2020, we entered into a new credit facility (the “Siena Credit Facility”) with Siena Lending Group LLC. The Siena Credit Facility provides for a revolving credit line of up to $10.0 million expiring on March 13, 2023. Borrowings under the Siena Credit Facility bear a floating rate of interest equal to the greatest of (i) the prime rate plus 1.75%, (ii) the federal funds rate plus 2.25%, and (iii) 6.50%. The total deferred financing costs related to expenses incurred to complete the Siena Credit Facility was $245 thousand, which were reported as "other current assets" in current assets and "other assets" in non-current assets in the Condensed Consolidated Balance Sheets. We also pay a fee of 0.50% on unused borrowings under the facility. Borrowings under the facility are secured by a lien on substantially all the assets of the Company. The Siena Credit Facility imposes a minimum EBITDA financial covenant on the Company and borrowings are subject to a borrowing base based on (i) 85% of eligible accounts receivable plus the lesser of (a) $5.0 million and (b) 50% of eligible raw material and 60% of finished goods inventory. As of June 30, 2020, we had $4.4 million of additional borrowing capacity available under the Siena Credit Facility. We were in compliance with all financial covenants of the Siena Credit Facility at June 30, 2020. On May 1, 2020 (the “Loan Date”), the Company was granted the PPP Loan from Berkshire Bank in the aggregate amount of $2.2 million, pursuant to the Paycheck Protection Program (the “PPP”). The PPP Loan, which is evidenced by a Note dated the Loan Date issued by the Company (the “Note”), matures on May 1, 2022 and bears interest at a fixed rate of 1.0% per annum, accruing from the Loan Date and payable monthly. No payments are due on the PPP Loan for six months from the date of first disbursement, but interest will continue to accrue during the deferment period. The Note is unsecured and guaranteed by the SBA. The Note may be prepaid by the Company at any time prior to maturity with no prepayment penalties. The Note provides for customary defaults, including failure to make payment when due or to fulfill the Company’s obligations under the Note or related documents, reorganizations, mergers, consolidations or other changes to the Company’s business structure, and certain defaults on other indebtedness, bankruptcy events, adverse changes in financial condition or civil or criminal actions. The PPP Loan may be accelerated upon the occurrence of a default. Under the terms of the PPP, the PPP Loan may be forgiven to the extent that funds from the PPP Loan are used for payroll costs and costs to continue group health care benefits, as well as for interest on mortgage obligations incurred before February 15, 2020, rent under lease agreements in effect before February 15, 2020, utilities for which service began before February 15, 2020, and interest on debt obligations incurred before February 15, 2020 (collectively, “qualifying expenses”), subject to conditions and limitations provided in the CARES Act. At least 60% (as amended) of the proceeds from the PPP Loan must be used for eligible payroll costs for the PPP Loan to be forgiven. The Company has maximized the use of PPP Loan proceeds for qualifying expenses and intends to apply for forgiveness of the PPP Loan in accordance with the terms of the CARES Act, as amended by the Paycheck Protection Flexibility Act of 2020. Whether forgiveness will be granted and in what amount is subject to an application to, and approval by, the SBA and may also be subject to further requirements in any regulations and guidelines the SBA may adopt. The PPP Loan is classified as “Long-term debt” in the Condensed Consolidated Balance Sheet until the forgiveness determination has been made by the SBA.

Earnings per share

6 Months Ended

Jun. 30, 2020

Earnings per share [Abstract]

Earnings per share

7. Earnings per share

The following table sets forth the reconciliation of basic weighted average shares outstanding and diluted weighted average shares outstanding:

	Three Months Ended June 30,					Six Months Ended June 30,
	2020			2019		2020			2019
	(In thousands, except per share data)
Net (loss) income	$	(1,853	)	$	186	$	(2,845	)	$	932

Shares:
Basic: Weighted average common shares outstanding		7,543			7,462		7,525			7,461
Add: Dilutive effect of outstanding options and restricted stock units as determined by the treasury stock method		–			135		–			146
Diluted: Weighted average common and common equivalent shares outstanding		7,543			7,597		7,525			7,607

Net (loss) income per common share:
Basic	$	(0.25	)	$	0.02	$	(0.38	)	$	0.12
Diluted	$	(0.25	)	$	0.02	$	(0.38	)	$	0.12

The computation of diluted earnings per share excludes the effect of the potential exercise of stock awards, including stock options and restricted stock units, when the average market price of the common stock is lower than the exercise price of the related stock award during the period, as the inclusion of these stock awards in the computation of diluted earnings would be anti-dilutive. For the three months ended June 30, 2020 and 2019, there were 1.4 million and 0.5 million, respectively, of potentially dilutive shares consisting of stock awards that were excluded from the calculation of earnings per diluted share. For the six months ended June 30, 2020 and 2019, there were 1.3 million and 0.5 million, respectively, of potentially dilutive shares consisting of stock awards that were excluded from the calculation of earnings per diluted share. Regarding the three and six months ended June 30, 2020, when a net loss is reported, basic and diluted net loss per common share are calculated using the same method.

Shareholders' equity	6 Months Ended
Shareholders' equity	Jun. 30, 2020
Shareholders' equity [Abstract]
Shareholders' equity	8. Shareholders’ equity For the three months ended June 30, 2019, dividends declared and paid totaled $0.7 million, or $0.09 per share. Dividends declared and paid totaled $1.3 million, or $0.18 per share for the six months ended June 30, 2019. On January 23, 2020, our Board of Directors announced the cessation of our quarterly cash dividend on the Company’s common stock. The final dividend payment was made in December 2019.

Leases

6 Months Ended

Jun. 30, 2020

Leases [Abstract]

Leases

9. Leases

We account for leases in accordance with ASC Topic 842: Leases.

We enter into lease agreements for the use of real estate space and certain other equipment under operating leases and we have no financing leases. Our leases are included in Right-of-use-assets and Lease liabilities in our Condensed Consolidated Balance Sheet. Our leases have remaining lease terms of one year to seven years, some of which include options to extend. The majority of our leases with options to extend provide for extensions of up to five years with the ability to terminate the lease within one year. Our right-of-use-asset and lease liability was higher at June 30, 2020 compared to December 31, 2019 due to the extension of one of our leases. On February 28, 2020, we entered into an amendment to extend the lease on our facility in Ithaca, New York, which resulted in recording an additional right-of-use-asset and lease liability of $1.5 million. The lease, which was last amended on January 14, 2016, was scheduled to expire on May 31, 2021. The lease amendment provides for an extension of the lease for four additional years from June 1, 2021 to May 31, 2025. Lease expense is recognized on a straight-line basis over the lease term.

Operating lease expense for the three months ended June 30, 2020 and 2019 was $241 thousand and $254 thousand, respectively, and was included within Cost of sales, Engineering, design and product development expense, Selling and marketing expense, and General and administrative expense. Operating lease expense for the six months ended June 30, 2020 and 2019 was $492 thousand and $509 thousand, respectively. Operating expenses include short-term lease costs which were immaterial during the period.

The following information represents supplemental disclosure for the statement of cash flows related to operating leases (in thousands):

	Six Months Ended June 30,
	2020		2019
Operating cash outflows from leases	$	519	$	515

The following summarizes additional information related to our leases as of June 30, 2020:

	June 30, 2020			December 31, 2019
Weighted average remaining lease term (in years)		5.4			5.0
Weighted average discount rate		4.1	%		3.7	%

The maturity of the Company’s operating lease liabilities as of June 30, 2020 and December 31, 2019 are as follows (in thousands):

	June 30, 2020		December 31, 2019
2020	$	519	$	1,042
2021		967		711
2022		875		434
2023		709		268
2024		714		273
Thereafter		797		616
Total undiscounted lease payments		4,581		3,344
Less imputed interest		462		295
Total lease liabilities	$	4,119	$	3,049

Income taxes	6 Months Ended
Income taxes	Jun. 30, 2020
Income taxes [Abstract]
Income taxes	10. Income taxes We recorded an income tax benefit for the second quarter of 2020 of $921 thousand at an effective tax rate of 33.2%, compared to an income tax benefit for the second quarter of 2019 of $26 thousand at an effective tax rate of (16.3)%. For the six months ended June 30, 2020, we recorded an income tax benefit of $1.4 million at an effective tax rate of 32.8%, compared to an income tax provision for the six months ended June 30, 2019 of $89 thousand at an effective tax rate of 8.7%. The effective tax rate for the second quarter and first six months of 2020 was higher as it included the impact of the net operating loss (“NOL”) that we expect to carry back to prior years. The CARES Act permits NOLs incurred in 2018, 2019 and 2020 to be carried back to each of the five preceding taxable years to generate a refund of previously paid income taxes. We expect to generate a NOL for 2020 which we will carry back to tax years that had a federal statutory tax rate of 34% compared to 21% in 2020. The effective tax rate for the second quarter of 2019 was lower as it included the foreign-derived intangible income (“FDII”) deduction under the Tax Cuts and Jobs Act of 2017 as well as near breakeven pre-tax income in the second quarter of 2019. We are subject to U.S. federal income tax, as well as income tax in certain U.S. state and foreign jurisdictions. We have substantially concluded all U.S. federal, state and local income tax, and foreign tax regulatory examination matters through 2015. However, our federal tax returns for the years 2016 through 2018 remain open to examination. Various state and foreign tax jurisdiction tax years remain open to examination as well, though we believe that any additional assessment would be immaterial to the Condensed Consolidated Financial Statements. As of June 30, 2020, we had $107 thousand of total gross unrecognized tax benefits that, if recognized, would favorably affect the effective income tax rate in any future periods. We expect $27 thousand of the $107 thousand of unrecognized tax benefits will reverse in the third quarter of 2020 upon the expiration of the statute of limitations. We recognize interest and penalties related to uncertain tax positions as income tax (benefit) provision. As of June 30, 2020, we had $24 thousand of accrued interest and penalties related to uncertain tax positions. The Company maintains a valuation allowance against certain deferred tax assets to reduce the future income tax benefits to expected realizable amounts.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References + Details

Basis of presentation (Policies)	6 Months Ended
Basis of presentation (Policies)	Jun. 30, 2020
Basis of presentation [Abstract]
Basis of accounting	The accompanying unaudited financial statements of TransAct Technologies Incorporated (“TransAct”, the “Company”, “we”, “us”, or “our”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP to be included in full year financial statements. In the opinion of management, all adjustments considered necessary for a fair statement of the results for the periods presented have been included and are of a normal recurring nature. The December 31, 2019 Condensed Consolidated Balance Sheet data was derived from audited financial statements, but does not include all disclosures required by U.S. GAAP. These interim financial statements should be read in conjunction with the audited financial statements for the year ended December 31, 2019 included in our Annual Report on Form 10-K for the year ended December 31, 2019.
Foreign currency translation	The financial position and results of operations of our U.K. subsidiary are measured using local currency as the functional currency. Assets and liabilities of such subsidiary have been translated at the end of period exchange rates, and related revenues and expenses have been translated at the exchange rate as of the date the transaction was recognized, with the resulting translation gain or loss recorded in “Accumulated other comprehensive income (loss), net of tax”, in the Condensed Consolidated Balance Sheets and Condensed Consolidated Statements of Changes in Shareholders’ Equity. Transaction gains and losses are included in “Other, net” in the Condensed Consolidated Statements of Operations.
Valuation of goodwill, indefinite-lived intangible assets and long-lived assets	Valuation of Goodwill, Indefinite-Lived Intangible Assets and Long-Lived Assets We perform a fair value-based impairment test to the carrying value of goodwill and indefinite-lived intangible assets on an annual basis (as of December 31) and, if certain events or circumstances indicate that an impairment loss may have been incurred, on an interim basis. Our fourth quarter 2019 quantitative impairment test of goodwill and indefinite-lived intangible assets indicated that there was no indication of impairment as the fair value exceeded our carrying value. During the three months ended March 31, 2020, our stock price declined to the lowest price since 2009. We determined that the significant decline in our market capitalization and broader economic downturn arising from the COVID-19 pandemic was a triggering event and an indicator that it was more likely than not that the carrying value of goodwill exceeded its fair value. Therefore, we concluded that quantitative analyses were required to be performed due to the triggering event occurring during the first quarter of 2020. We view our operations and manage our business as one operating unit. We utilized an implied market value method under the market approach to calculate the fair value of the Company as of March 31, 2020, which we determined was the best approximation of fair value in the current social and economic environment. Based on our interim impairment assessment as of March 31, 2020, we determined that no goodwill or intangible asset impairment occurred and the fair value of goodwill was substantially higher than our carrying value. As of June 30, 2020, we determined that no new triggering events had occurred during the second quarter of 2020 and as a result an updated impairment review was not performed. We will continue to monitor and evaluate the carrying value of goodwill. We may be subject to impairments in the future depending on how long the economic and social disruptions resulting from COVID-19 pandemic persist.

Revenue (Tables)

6 Months Ended

Jun. 30, 2020

Revenue [Abstract]

Disaggregation of revenue

	Three Months Ended						Three Months Ended
	June 30, 2020						June 30, 2019
	(In thousands)
	United States		International		Total		United States		International		Total
Food service technology	$	1,056	$	148	$	1,204	$	978	$	145	$	1,123
POS automation and banking		481		-		481		1,639		5		1,644
Casino and gaming		970		390		1,360		3,492		2,139		5,631
Lottery		817		-		817		132		2		134
Printrex		6		2		8		230		55		285
TransAct Services Group		1,271		144		1,415		2,244		289		2,533
Total net sales	$	4,601	$	684	$	5,285	$	8,715	$	2,635	$	11,350

	Six Months Ended						Six Months Ended
	June 30, 2020						June 30, 2019
	(In thousands)
	United States		International		Total		United States		International		Total
Food service technology	$	2,295	$	280	$	2,575	$	2,095	$	241	$	2,336
POS automation and banking		2,035		4		2,039		2,898		23		2,921
Casino and gaming		3,528		2,763		6,291		6,916		4,198		11,114
Lottery		817		-		817		829		2		831
Printrex		67		58		125		527		100		627
TransAct Services Group		3,274		411		3,685		4,457		614		5,071
Total net sales	$	12,016	$	3,516	$	15,532	$	17,722	$	5,178	$	22,900

Contract liabilities

	June 30, 2020		December 31, 2019
	(In thousands)

Customer pre-payments	$	72	$	232
Deferred revenue, current		519		700
Deferred revenue, non-current		145		219
Total contract liabilities	$	736	$	1,151

Inventories (Tables)

6 Months Ended

Jun. 30, 2020

Inventories [Abstract]

Inventories

The components of inventories were:

	June 30, 2020		December 31, 2019
	(In thousands)

Raw materials and purchased component parts	$	8,391	$	7,724
Work-in-process		5		–
Finished goods		3,509		4,375
	$	11,905	$	12,099

Accrued product warranty liability (Tables)

6 Months Ended

Jun. 30, 2020

Accrued product warranty liability [Abstract]

Product warranty liability

The following table summarizes the activity recorded in the accrued product warranty liability during the six months ended June 30, 2020 and 2019:

	Six Months Ended June 30,
	2020			2019
	(In thousands)

Balance, beginning of period	$	215		$	273
Warranties issued		55			81
Warranty settlements		(78	)		(130	)
Balance, end of period	$	192		$	224

Earnings per share (Tables)

6 Months Ended

Jun. 30, 2020

Earnings per share [Abstract]

Earnings per share

The following table sets forth the reconciliation of basic weighted average shares outstanding and diluted weighted average shares outstanding:

	Three Months Ended June 30,					Six Months Ended June 30,
	2020			2019		2020			2019
	(In thousands, except per share data)
Net (loss) income	$	(1,853	)	$	186	$	(2,845	)	$	932

Shares:
Basic: Weighted average common shares outstanding		7,543			7,462		7,525			7,461
Add: Dilutive effect of outstanding options and restricted stock units as determined by the treasury stock method		–			135		–			146
Diluted: Weighted average common and common equivalent shares outstanding		7,543			7,597		7,525			7,607

Net (loss) income per common share:
Basic	$	(0.25	)	$	0.02	$	(0.38	)	$	0.12
Diluted	$	(0.25	)	$	0.02	$	(0.38	)	$	0.12

Leases (Tables)

6 Months Ended

Jun. 30, 2020

Leases [Abstract]

Cash flows for operating leases

The following information represents supplemental disclosure for the statement of cash flows related to operating leases (in thousands):

	Six Months Ended June 30,
	2020		2019
Operating cash outflows from leases	$	519	$	515

Additional information related to leases

The following summarizes additional information related to our leases as of June 30, 2020:

	June 30, 2020			December 31, 2019
Weighted average remaining lease term (in years)		5.4			5.0
Weighted average discount rate		4.1	%		3.7	%

Maturity of operating lease liabilities

The maturity of the Company’s operating lease liabilities as of June 30, 2020 and December 31, 2019 are as follows (in thousands):

	June 30, 2020		December 31, 2019
2020	$	519	$	1,042
2021		967		711
2022		875		434
2023		709		268
2024		714		273
Thereafter		797		616
Total undiscounted lease payments		4,581		3,344
Less imputed interest		462		295
Total lease liabilities	$	4,119	$	3,049

Basis of presentation (Details) $ in Thousands	1 Months Ended	3 Months Ended	4 Months Ended	6 Months Ended
Basis of presentation (Details) $ in Thousands	Jul. 31, 2020	Mar. 31, 2020 USD ($)	Jun. 30, 2020 Manufacturer	Dec. 31, 2020	Jun. 30, 2020 Manufacturer Segment	May 01, 2020 USD ($)	Mar. 13, 2020 USD ($)
Basis of presentation [Abstract]
Number of manufacturers in China and Thailand \| Manufacturer			2		2
Basis of presentation [Abstract]
Number of operating segments \| Segment					1
Impairment of goodwill		$ 0
Impairment of intangible assets		$ 0
COVID-19 [Member]
Basis of presentation [Abstract]
Percentage reduction in salaries of all salaried, non-commissioned employees, including executive officers			10.00%
Percentage reduction in cash retainer fees for all non-employee directors			10.00%
COVID-19 [Member] \| Forecast [Member]
Basis of presentation [Abstract]
Percentage reduction in workforce				20.00%
COVID-19 [Member] \| Subsequent Event [Member]
Basis of presentation [Abstract]
Percentage reduction in pay for hourly employees	10.00%
PPP Loan [Member]
Basis of presentation [Abstract]
Face amount						$ 2,200
Revolving Credit Facility [Member]
Basis of presentation [Abstract]
Maximum borrowing capacity							$ 10,000

Revenue, Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Disaggregation of revenue [Abstract]
Total net sales	$ 5,285	$ 11,350	$ 15,532	$ 22,900
United States [Member]
Disaggregation of revenue [Abstract]
Total net sales	4,601	8,715	12,016	17,722
International [Member]
Disaggregation of revenue [Abstract]
Total net sales	684	2,635	3,516	5,178
Food Service Technology [Member]
Disaggregation of revenue [Abstract]
Total net sales	1,204	1,123	2,575	2,336
Food Service Technology [Member] \| United States [Member]
Disaggregation of revenue [Abstract]
Total net sales	1,056	978	2,295	2,095
Food Service Technology [Member] \| International [Member]
Disaggregation of revenue [Abstract]
Total net sales	148	145	280	241
POS Automation and Banking [Member]
Disaggregation of revenue [Abstract]
Total net sales	481	1,644	2,039	2,921
POS Automation and Banking [Member] \| United States [Member]
Disaggregation of revenue [Abstract]
Total net sales	481	1,639	2,035	2,898
POS Automation and Banking [Member] \| International [Member]
Disaggregation of revenue [Abstract]
Total net sales	0	5	4	23
Casino and Gaming [Member]
Disaggregation of revenue [Abstract]
Total net sales	1,360	5,631	6,291	11,114
Casino and Gaming [Member] \| United States [Member]
Disaggregation of revenue [Abstract]
Total net sales	970	3,492	3,528	6,916
Casino and Gaming [Member] \| International [Member]
Disaggregation of revenue [Abstract]
Total net sales	390	2,139	2,763	4,198
Lottery [Member]
Disaggregation of revenue [Abstract]
Total net sales	817	134	817	831
Lottery [Member] \| United States [Member]
Disaggregation of revenue [Abstract]
Total net sales	817	132	817	829
Lottery [Member] \| International [Member]
Disaggregation of revenue [Abstract]
Total net sales	0	2	0	2
Printrex [Member]
Disaggregation of revenue [Abstract]
Total net sales	8	285	125	627
Printrex [Member] \| United States [Member]
Disaggregation of revenue [Abstract]
Total net sales	6	230	67	527
Printrex [Member] \| International [Member]
Disaggregation of revenue [Abstract]
Total net sales	2	55	58	100
TransAct Services Group [Member]
Disaggregation of revenue [Abstract]
Total net sales	1,415	2,533	3,685	5,071
TransAct Services Group [Member] \| United States [Member]
Disaggregation of revenue [Abstract]
Total net sales	1,271	2,244	3,274	4,457
TransAct Services Group [Member] \| International [Member]
Disaggregation of revenue [Abstract]
Total net sales	$ 144	$ 289	$ 411	$ 614

Revenue, Contract Balances (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Revenue [Abstract]
Revenue recognized	$ 700	$ 300
Contract liabilities [Abstract]
Customer pre-payments	72		$ 232
Deferred revenue, current	519		700
Deferred revenue, non-current	145		219
Total contract liabilities	$ 736		$ 1,151

Revenue, Remaining Performance Obligations (Details) $ in Millions	Jun. 30, 2020 USD ($)
Remaining performance obligations [Abstract]
Remaining performance obligations	$ 1.8
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-07-01
Remaining performance obligations [Abstract]
Remaining performance obligations	$ 1.6
Expected timing of satisfaction, period	12 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-07-01
Remaining performance obligations [Abstract]
Remaining performance obligations	$ 0.1
Expected timing of satisfaction, period	12 months

Note receivable (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended	6 Months Ended
Note receivable (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Jun. 30, 2020	Jun. 30, 2020	Jun. 30, 2019
Note receivable [Abstract]
Interest rate		4.50%	4.50%
Royalty fee payable to be applied towards note receivable balance as it becomes due		$ 100	$ 100
Balance expected to be collected in next twelve months		100	100
Balance expected to be collected thereafter		1,500	1,500
Issuance of note receivable	$ 600		600	$ 0
Interest income		18	31
Allowance for loan losses		0	0
Unamortized deferred loan fees and unearned discounts		$ 0	$ 0

Inventories (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Inventories [Abstract]
Raw materials and purchased component parts	$ 8,391	$ 7,724
Work-in-process	5	0
Finished goods	3,509	4,375
Inventories	$ 11,905	$ 12,099

Accrued product warranty liability (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Accrued product warranty liability [Roll Forward]
Balance, beginning of period	$ 215	$ 273
Warranties issued	55	81
Warranty settlements	(78)	(130)
Balance, end of period	192	$ 224
Accrued product warranty liability, current	153
Accrued product warranty liability, non-current	$ 39
Maximum [Member]
Warranty [Abstract]
Product warranty period	24 months

Debt (Details) - USD ($) $ in Thousands		6 Months Ended
Debt (Details) - USD ($) $ in Thousands	May 01, 2020	Jun. 30, 2020	Mar. 13, 2020
Revolving Credit Facility [Member]
Debt [Abstract]
Maximum borrowing capacity			$ 10,000
Maturity date		Mar. 13, 2023
Interest rate		6.50%
Deferred financing costs			$ 245
Percentage fee on unused borrowings		0.50%
Percentage of eligible accounts receivable		85.00%
Eligible inventory		$ 5,000
Percentage of eligible raw material		50.00%
Percentage of eligible finished goods inventory		60.00%
Additional borrowing capacity		$ 4,400
Revolving Credit Facility [Member] \| Prime Rate [Member]
Debt [Abstract]
Basis spread on variable rate		1.75%
Revolving Credit Facility [Member] \| Federal Funds Rate [Member]
Debt [Abstract]
Basis spread on variable rate		2.25%
PPP Loan [Member]
Debt [Abstract]
Maturity date	May 01, 2022
Interest rate	1.00%
Face amount	$ 2,200

Earnings per share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Earnings per share [Abstract]
Net (loss) income	$ (1,853)	$ 186	$ (2,845)	$ 932
Shares [Abstract]
Basic: Weighted average common shares outstanding (in shares)	7,543	7,462	7,525	7,461
Add: Dilutive effect of outstanding options and restricted stock units as determined by the treasury stock method (in shares)	0	135	0	146
Diluted: Weighted average common and common equivalent shares outstanding (in shares)	7,543	7,597	7,525	7,607
Net (loss) income per common share [Abstract]
Basic (in dollars per share)	$ (0.25)	$ 0.02	$ (0.38)	$ 0.12
Diluted (in dollars per share)	$ (0.25)	$ 0.02	$ (0.38)	$ 0.12
Stock Awards [Member]
Earnings per share [Abstract]
Anti-dilutive securities excluded from computation of earnings per dilutive share (in shares)	1,400	500	1,300	500

Shareholders' equity (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Shareholders' equity [Abstract]
Payment of dividend on common stock		$ 700	$ 0	$ 1,339
Dividends declared and paid per common share (in dollars per share)	$ 0	$ 0.09	$ 0	$ 0.18

Leases (Details) $ in Thousands	3 Months Ended		6 Months Ended
Leases (Details) $ in Thousands	Jun. 30, 2020 USD ($)	Dec. 31, 2019 USD ($)	Jun. 30, 2020 USD ($) Lease	Jun. 30, 2019 USD ($)	Feb. 28, 2020 USD ($)
Leases [Abstract]
Number of leases extended \| Lease			1
Right-of-use-asset	$ 3,970	$ 2,855	$ 3,970
Lease liability	4,119	3,049	4,119
Operating lease expense	$ 241	$ 254	492	$ 509
Cash Flows Related to Operating Leases [Abstract]
Operating cash flows from leases			$ 519	$ 515
Operating Lease Weighted Average Remaining Lease Term and Discount Rate [Abstract]
Weighted average remaining lease term	5 years 4 months 24 days	5 years	5 years 4 months 24 days
Weighted average discount rate	4.10%	3.70%	4.10%
Maturity of Operating Lease Liabilities [Abstract]
2020	$ 519	$ 1,042	$ 519
2021	967	711	967
2022	875	434	875
2023	709	268	709
2024	714	273	714
Thereafter	797	616	797
Total undiscounted lease payments	4,581	3,344	4,581
Less imputed interest	462	295	462
Total lease liabilities	$ 4,119	$ 3,049	$ 4,119
Minimum [Member]
Leases [Abstract]
Remaining lease terms	1 year		1 year
Maximum [Member]
Leases [Abstract]
Remaining lease terms	7 years		7 years
Extension period for leases	5 years		5 years
Termination period for leases			1 year
Facility in Ithaca, New York [Member]
Leases [Abstract]
Extension period for leases	4 years		4 years
Right-of-use-asset					$ 1,500
Lease liability					1,500
Maturity of Operating Lease Liabilities [Abstract]
Total lease liabilities					$ 1,500

Income taxes (Details) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended		12 Months Ended
Income taxes (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2017
Income Taxes [Abstract]
Income tax provision (benefit)		$ (921)	$ (26)	$ (1,386)	$ 89
Effective tax rate		33.20%	(16.30%)	32.80%	8.70%
U.S. corporate income tax rate				21.00%		34.00%
Unrecognized tax benefits that would favorably affect effective income tax rate if recognized		$ 107		$ 107
Accrued interest and penalties related to uncertain tax positions		$ 24		$ 24
Forecast [Member]
Income Taxes [Abstract]
Unrecognized tax benefits that will lapse upon expiration of statute of limitations	$ 27

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details