Executive Summary [Preliminary Q4 and Full Year 2023 Overview](index=1&type=section&id=1.1.%20Preliminary%20Q4%20and%20Full%20Year%202023%20Overview) TransAct Technologies reported preliminary financial results for Q4 and full year 2023, showing a significant decline in Q4 net sales but strong growth in full year net sales and Food Service Technology (FST) recurring revenue Q4 2023 (Millions) | Metric | Q4 2023 (Millions) | Q4 2022 (Millions) | Change (%) | | :--- | :--- | :--- | :--- | | Net Sales | $13.3 | $18.0 | -26% | | FST Sales | $4.7 | $3.1 | +54% | | Casino and Gaming Sales | $4.2 | $11.0 | -62% | FY 2023 (Millions) | Metric | FY 2023 (Millions) | FY 2022 (Millions) | Change (%) | | :--- | :--- | :--- | :--- | | Net Sales | $72.6 | $58.1 | +25% | [CEO Commentary and Business Update](index=1&type=section&id=1.2.%20CEO%20Commentary%20and%20Business%20Update) CEO John Dillon highlighted 2023 as a year of positive change, resulting in a stronger and more efficient organization. The company is focused on its FST segment, with positive reception for the new BOHA! Terminal 2 and plans to build momentum in 2024 - The organization emerged from a year of transition stronger, more efficient, and operationally more effective[2](index=2&type=chunk) - The FST segment has the right team in place, selling to enterprise-level organizations with the new BOHA! Terminal 2, which has seen solid customer reception[2](index=2&type=chunk) - In Q4, TransAct added **twelve new logos** to its BOHA! platform and sold **1,235 terminals**, anticipating momentum build-up throughout 2024[2](index=2&type=chunk) Financial Performance Highlights [Fourth Quarter 2023 Financial Highlights](index=1&type=section&id=2.1.%20Fourth%20Quarter%202023%20Financial%20Highlights) TransAct experienced a decline in net sales and a swing to operating and net loss in Q4 2023 compared to Q4 2022, despite strong growth in FST recurring revenue and an improvement in gross margin Q4 2023 Financial Performance (Preliminary and Unaudited) | Metric | Q4 2023 (in thousands) | Q4 2022 (in thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Net Sales | $13,265 | $17,958 | -26.1% | | FST Recurring Revenue | $3,200 | $2,400 | +33.3% | | Gross Profit | $6,371 | $8,219 | -22.5% | | Gross Margin | 48.0% | 45.8% | +2.2 pp | | Operating (Loss) Income | $(522) | $494 | N/A (swing to loss) | | Net (Loss) Income | $(62) | $260 | N/A (swing to loss) | | Diluted EPS | $(0.01) | $0.03 | N/A (swing to loss) | | EBITDA | $338 | $993 | -65.9% | | Adjusted EBITDA | $587 | $1,280 | -54.1% | [Full Year 2023 Financial Highlights](index=1&type=section&id=2.2.%20Full%20Year%202023%20Financial%20Highlights) For the full year 2023, TransAct achieved significant growth in net sales and a return to profitability, with substantial improvements in gross margin, operating income, and net income compared to 2022 FY 2023 Financial Performance (Preliminary and Unaudited) | Metric | FY 2023 (in thousands) | FY 2022 (in thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Net Sales | $72,631 | $58,139 | +25.0% | | FST Recurring Revenue | $11,100 | $8,700 | +27.6% | | Gross Profit | $38,400 | $24,412 | +57.3% | | Gross Margin | 52.9% | 42.0% | +10.9 pp | | Operating Income (Loss) | $5,706 | $(7,677) | N/A (swing to income) | | Net Income (Loss) | $4,748 | $(5,936) | N/A (swing to income) | | Diluted EPS | $0.47 | $(0.60) | N/A (swing to income) | | Adjusted Net Income (Loss) | $5,906 | $(5,936) | N/A (swing to income) | | Adjusted Diluted EPS | $0.59 | $(0.60) | N/A (swing to income) | | EBITDA | $7,647 | $(6,361) | N/A (swing to income) | | Adjusted EBITDA | $9,968 | $(5,206) | N/A (swing to income) | [Sales Performance by Market Segment](index=7&type=section&id=2.3.%20Sales%20Performance%20by%20Market%20Segment) The company's sales performance varied significantly across market segments in Q4 and full year 2023, with strong growth in Food Service Technology and TransAct Services Group, while POS automation and Casino and Gaming experienced declines in Q4 Sales by Market Segment (Preliminary and Unaudited) | Segment | Q4 2023 (in thousands) | Q4 2022 (in thousands) | Q4 Change (%) | FY 2023 (in thousands) | FY 2022 (in thousands) | FY Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Food service technology | $4,714 | $3,054 | +54.4% | $16,308 | $12,364 | +31.9% | | POS automation | $1,577 | $2,959 | -46.7% | $6,922 | $10,659 | -35.1% | | Casino and gaming | $4,190 | $10,999 | -61.9% | $41,192 | $30,029 | +37.2% | | TransAct Services Group | $2,784 | $946 | +194.3% | $8,209 | $5,087 | +61.4% | | **Total net sales** | **$13,265** | **$17,958** | **-26.1%** | **$72,631** | **$58,139** | **+25.0%** | [Condensed Consolidated Balance Sheets](index=8&type=section&id=2.4.%20Condensed%20Consolidated%20Balance%20Sheets) As of December 31, 2023, TransAct's balance sheet shows an increase in total assets and shareholders' equity compared to the prior year, driven by higher cash and inventories, while total liabilities decreased Condensed Consolidated Balance Sheets (Preliminary and Unaudited) | | December 31, 2023 (In thousands) | December 31, 2022 (In thousands) | | :--- | :--- | :--- | | **Assets:** | | | | Cash and cash equivalents | $12,321 | $7,946 | | Accounts receivable, net | $9,824 | $13,927 | | Employee retention credit receivable | $- | $1,500 | | Inventories | $17,759 | $12,028 | | Other current assets | $1,095 | $724 | | **Total current assets** | **$40,999** | **$36,125** | | Fixed assets, net | $2,421 | $2,781 | | Right-of-use assets, net | $1,602 | $2,488 | | Goodwill | $2,621 | $2,621 | | Deferred tax assets | $6,304 | $7,327 | | Intangible assets, net | $88 | $242 | | Other assets | $163 | $248 | | **Total assets** | **$54,198** | **$51,832** | | **Liabilities and Shareholders' Equity:** | | | | Revolving loan payable | $2,250 | $2,250 | | Accounts payable | $4,431 | $7,395 | | Accrued liabilities | $4,947 | $4,077 | | Lease liabilities | $929 | $875 | | Deferred revenue | $1,079 | $1,329 | | **Total current liabilities** | **$13,636** | **$15,926** | | Deferred revenue, net of current portion | $209 | $143 | | Lease liabilities, net of current portion | $720 | $1,683 | | Other liabilities | $219 | $218 | | **Total liabilities** | **$14,784** | **$17,970** | | Common stock | $140 | $139 | | Additional paid-in capital | $57,055 | $56,282 | | Retained earnings | $14,378 | $9,630 | | Accumulated other comprehensive loss, net of tax | $(49) | $(79) | | Treasury stock, at cost | $(32,110) | $(32,110) | | **Total shareholders' equity** | **$39,414** | **$33,862** | | **Total liabilities and shareholders' equity** | **$54,198** | **$51,832** | Strategic Initiatives and Outlook [Recent Strategic Development](index=2&type=section&id=3.1.%20Recent%20Strategic%20Development) TransAct Technologies has engaged a strategic advisor to help determine the optimal long-term strategy for its business - The Company engaged a strategic advisor to assist in determining the best long-term strategy for its business[6](index=6&type=chunk) [2024 Financial Outlook](index=2&type=section&id=3.2.%202024%20Financial%20Outlook) TransAct provided preliminary financial guidance for the full year 2024, projecting a decrease in total net sales and an approximately breakeven adjusted EBITDA - Full year 2024 total net sales are expected to be between **$53 million and $58 million**[11](index=11&type=chunk) - Full year 2024 total adjusted EBITDA is expected to be **approximately breakeven**[11](index=11&type=chunk) Non-GAAP Financial Measures [Rationale and Definitions](index=3&type=section&id=4.1.%20Rationale%20and%20Definitions) TransAct provides non-GAAP financial measures like EBITDA, Adjusted EBITDA, and Adjusted net income (loss) to offer investors a clearer view of its core operations, excluding non-recurring or non-cash items, for better comparability and evaluation of operating performance - Non-GAAP financial measures (**EBITDA, Adjusted EBITDA, Adjusted net income/loss**) are provided to help investors and others assess the ongoing nature of TransAct's core operations[12](index=12&type=chunk) - **EBITDA** is defined as net income (loss) before net interest expense, income taxes, depreciation, and amortization[13](index=13&type=chunk) - **Adjusted EBITDA** further adjusts EBITDA for share-based compensation, a **$1.5 million severance charge** related to the former CEO's resignation, and other items not reflecting ordinary earnings[14](index=14&type=chunk) [GAAP to Non-GAAP Reconciliations](index=9&type=section&id=4.2.%20GAAP%20to%20Non-GAAP%20Reconciliations) The company provides detailed reconciliations from GAAP net income (loss) to non-GAAP measures such as Adjusted Operating Income, Adjusted Net Income, EBITDA, and Adjusted EBITDA for both quarterly and full-year periods, highlighting specific adjustments like the CEO severance charge Q4 2023 GAAP to Non-GAAP Earnings Reconciliation (Preliminary and Unaudited) | Metric | Reported (thousands) | Adjustments (thousands) | Adjusted Non-GAAP (thousands) | | :--- | :--- | :--- | :--- | | Operating expenses | $6,893 | $- | $6,893 | | % of net sales | 52.0% | | 52.0% | | Operating loss | $(522) | $- | $(522) | | % of net sales | (3.9)% | | (3.9)% | | Interest and other income | $426 | $- | $426 | | Loss before income taxes | $(96) | $- | $(96) | | Income tax benefit | $34 | $- | $34 | | Net loss | $(62) | $- | $(62) | | Diluted EPS | $(0.01) | $- | $(0.01) | FY 2023 GAAP to Non-GAAP Earnings Reconciliation (Preliminary and Unaudited) | Metric | Reported (thousands) | Adjustments (thousands) | Adjusted Non-GAAP (thousands) | | :--- | :--- | :--- | :--- | | Operating expenses | $32,694 | $(1,461) | $31,233 | | % of net sales | 45.0% | | 43.0% | | Operating income | $5,706 | $1,461 | $7,167 | | % of net sales | 7.9% | | 9.9% | | Interest and other income | $197 | $- | $197 | | Income before income taxes | $5,903 | $1,461 | $7,364 | | Income tax (expense) | $(1,155) | $(303) | $(1,458) | | Net income | $4,748 | $1,158 | $5,906 | | Diluted EPS | $0.47 | $0.12 | $0.59 | *Adjustment includes a severance charge of $1,461 incurred in April 2023 related to the resignation of the Company's former Chief Executive Officer.* Net Income (Loss) to EBITDA and Adjusted EBITDA Reconciliation (Preliminary and Unaudited) | Metric | Q4 2023 (thousands) | Q4 2022 (thousands) | FY 2023 (thousands) | FY 2022 (thousands) | | :--- | :--- | :--- | :--- | | Net (loss) income | $(62) | $260 | $4,748 | $(5,936) | | Interest expense, net | $48 | $63 | $255 | $208 | | Income tax (benefit) expense | $(34) | $322 | $1,155 | $(1,965) | | Depreciation and amortization | $386 | $348 | $1,489 | $1,332 | | **EBITDA** | **$338** | **$993** | **$7,647** | **$(6,361)** | | Share-based compensation expense | $249 | $287 | $860 | $1,155 | | Severance charge related to resignation of the Company's former Chief Executive Officer | $- | $- | $1,461 | $- | | **Adjusted EBITDA** | **$587** | **$1,280** | **$9,968** | **$(5,206)** | Company Information and Disclosures [About TransAct Technologies](index=4&type=section&id=5.1.%20About%20TransAct%20Technologies) TransAct Technologies is a global leader in software-driven technology and printing solutions for high-growth markets, offering products under various brands and providing comprehensive services and supplies - TransAct Technologies Incorporated is a global leader in developing and selling software-driven technology and printing solutions for high-growth markets[17](index=17&type=chunk) - The company's solutions cater to food service, casino and gaming, and POS automation markets, sold under brands like BOHA!™, AccuDate™, EPICENTRAL®, Epic, and Ithaca®[17](index=17&type=chunk)[18](index=18&type=chunk) - TransAct has sold **over 3.9 million hardware devices** worldwide and provides world-class service, spare parts, and supplies through its TransAct Services Group[17](index=17&type=chunk) [Cautionary Statements and Forward-Looking Information](index=4&type=section&id=5.2.%20Cautionary%20Statements%20and%20Forward-Looking%20Information) The report includes important disclaimers regarding the preliminary nature of the financial results, which are subject to change, and highlights various risks and uncertainties that could cause actual future results to differ materially from forward-looking statements - The preliminary financial information is inherently uncertain and subject to change as the company finalizes its results and audit for the period ended December 31, 2023[19](index=19&type=chunk) - Forward-looking statements are subject to certain risks, uncertainties, and assumptions, including economic conditions, supply chain disruptions, inflation, and the ability to develop new products, which could cause actual results to differ materially[21](index=21&type=chunk) - Readers are cautioned not to place undue reliance on forward-looking statements, and the company undertakes no obligation to revise them, except as required by law[21](index=21&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended: September 30, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______________ to _______________. Commission file number: 0-21121 TRANSACT TECHNOLOGIES INC (Exact name of registrant as specified in its charter) Dela ...

TransAct Technologies Incorporated (NASDAQ:TACT) Q3 2023 Earnings Conference Call November 9, 2023 4:30 PM ET Company Participants Ryan Gardella – Investor Relations John Dillon – Chief Executive Officer Steve DeMartino – Chief Financial Officer Conference Call Participants Jeff Martin – Roth Capital Partners, LLC Operator Greetings, and welcome to the TransAct Technologies’ Third Quarter 2023 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to i ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______________ to _______________. Commission file number: 0-21121 TRANSACT TECHNOLOGIES INC (Exact name of registrant as specified in its charter) Delaware 06-1456680 (State or Other Jurisdiction of Incorporation or Organization) (I.R.S. Employer Identification No.) (Mark One) ☒ QUARTERLY REPORT PURSUANT ...

Financial Data and Key Metrics Changes - Total net sales for Q2 2023 were $19.9 million, representing a year-over-year increase of approximately 58% but a sequential decline of about 11% from Q1 2023 [7][15] - Gross margin for Q2 was 54.5%, slightly down from 55% in the prior year but up from 43% in the same period last year [20] - Net income for the quarter was $765,000 or $0.08 per diluted share, compared to a net loss of $2.4 million or $0.24 loss per diluted share in the prior year [22] Business Line Data and Key Metrics Changes - Food Service Technology (FST) revenue was $3.9 million, up 14% year-over-year, driven by higher shipments of the AccuDate 9700 product and increased label sales [36][43] - Casino and gaming sales reached $12.2 million, an increase of 87% year-over-year but down 23% sequentially from Q1 2023 [18][39] - Recurring FST sales, including software and service subscriptions, were $2.5 million, up 14% compared to $2.2 million in the prior year [17] Market Data and Key Metrics Changes - Domestic sales increased by 141% year-over-year, indicating strong performance in the market [19] - The order rate and backlog additions have slowed due to OEMs reducing their inventory levels after over-ordering in the first half of 2023 [12][45] - The company expects a new baseline sales level to be 15% to 20% higher than pre-COVID historical averages, with this new run rate expected to be fully reflected in Q4 2023 and into 2024 [41] Company Strategy and Development Direction - The company has revamped its sales teams and go-to-market strategies, focusing on execution and improving customer engagement [3][35] - The launch of the BOHA! Terminal 2 is anticipated to enhance market penetration and customer retention, with positive early feedback from trials [38][43] - The company aims to maintain its current net sales guidance of $71.5 million to $73.5 million while raising adjusted EBITDA guidance to a range of $8 million to $8.5 million for the full year 2023 [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to capitalize on market opportunities, despite acknowledging the challenges posed by returning competitors and pricing pressures [42][51] - The company is focused on nurturing new customer relationships and retaining market share, particularly in the casino and gaming sectors [40][43] - Management indicated that the sales cycle for FST products is long but expressed optimism about future sales growth as new strategies take effect [10][11] Other Important Information - The company finished the quarter with $10.8 million in cash and $2.25 million of debt outstanding on its credit facility [49] - Adjusted EBITDA for the quarter improved to $3.2 million compared to an adjusted EBITDA loss of $2.5 million in the prior year [49] Q&A Session Summary Question: What changes have been made to the go-to-market strategy? - Management discussed implementing metrics related to funnel management and improving the connection between marketing and sales to enhance customer engagement and conversion rates [24][25] Question: How is the restaurant space performing? - Management noted that while the restaurant space is still recovering, there are opportunities with larger chains, and they are focusing on areas with more immediate ROI [27][28] Question: What is the outlook for the BOHA! Terminal upgrades? - Management indicated that there are tens of thousands of older AccuDate 9700 units in the market that present upgrade opportunities [31] Question: How is the company addressing production capacity? - Management stated that production capacity is currently good, with plans to potentially add a fourth line in a different country to enhance flexibility [60] Question: What is the expected impact of competitors re-entering the market? - Management acknowledged that the return of competitors and price reductions will impact net sales and profitability but emphasized the company's strong market position [42][51]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended: March 31, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______________ to _______________. Commission file number: 0-21121 | Delaware | 06-1456680 | | --- | --- | | (State or Other Jurisdiction of Incorporation o ...

Financial Data and Key Metrics Changes - Adjusted EBITDA for the quarter improved to $4.5 million compared to an adjusted EBITDA loss of $5.1 million for the first quarter last year [1] - Total net sales for the first quarter were $22.3 million, up 130% compared to $9.7 million in the year-ago period [29] - Operating income was $3.8 million or 17.1% of net sales in the first quarter of '23 compared to an operating loss of $5.6 million in the prior-year period [45] - Net income recorded was $3.1 million or $0.31 per diluted share compared to a net loss of $4.4 million or a loss of $0.44 per diluted share in the year-ago period [45] Business Line Data and Key Metrics Changes - Sales from the food service technology market (FST) for the first quarter were $3.5 million, up 62% compared to $2.1 million in the prior year period [29] - Casino and gaming sales reached a quarterly record high of $15.8 million, up 232% from the first quarter of '22 [43] - TransAct Services Group (TSG) sales were down 20% year over year to $1.2 million, largely due to lower sales of spare parts for legacy lottery printers [44] - Recurring FST sales were $2.3 million, up 49% compared to $1.6 million in the prior year period [66] Market Data and Key Metrics Changes - Domestic casino gaming sales were up 315% and international sales up 115% year over year [43] - The company ended the quarter with 12,733 terminals in the marketplace, a 26% year-over-year increase from 10,127 [26] - RPU for the first quarter of '23 was $764, up 20% compared to $638 in the first quarter of '22 [66] Company Strategy and Development Direction - The company is focusing on enhancing its go-to-market strategy, particularly for the BOHA! platform, with an emphasis on training and sales organization improvements [24][37] - The company aims to leverage its core competencies to build competitive advantages in the market [11] - Adjustments to product positioning and sales strategies are expected to result in positive changes in customer perception and adoption of the BOHA! platform [37] Management's Comments on Operating Environment and Future Outlook - Management anticipates a normalization of the casino and gaming market in the back half of the year, which may negatively impact sales and gross margin [1] - The company expects to see a moderation in casino and gaming sales in the latter half of the year [27] - Management believes that while competitive dynamics may change, a portion of the market share gained will be sticky [30] Other Important Information - The company finished the quarter with $6.4 million of cash on hand and $2.25 million of outstanding borrowings under its revolving credit facility [69] - Operating expenses for the first quarter increased 3% to $8.4 million, reflecting a return to more normalized levels of travel and marketing [31] Q&A Session Summary Question: Update on casino printer business and backlog - Management confirmed they are in a good position and have delivered all scheduled orders for the first quarter [47] Question: Changes and improvements in BOHA! Terminal 2 - The new terminal features enhancements such as a better screen and faster performance, with positive feedback from demonstrations [48][81] Question: Approach to large convenience store customer and franchisor - Management indicated that the large convenience store is purchasing equipment again and that the franchisor is satisfied with the company's progress [75] Question: Strategy for upgrading existing customers to BOHA! Terminal 2 - Management noted that while the 9700 terminals are performing well, they are actively approaching customers for upgrades [90][91]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission file number: 0-21121 TRANSACT TECHNOLOGIES INC (Exact name of registrant as specified in its charter) Delaware 06-1456680 (Stat ...

Financial Data and Key Metrics Changes - Total revenue for Q4 2022 was $18 million, up 61% from $11.1 million in the prior year period, and for the full year, total revenue grew by almost 48% to just over $58 million, the highest since 2015 [19][28] - Gross margin for Q4 was 45.8%, compared to 38.7% in the prior year, and full year gross margin was 42%, up from 39.1% in 2021 [20][57] - Operating expenses for Q4 increased 12% to $7.7 million, while for the full year, they were $32.1 million, up 30% from 2021 [20][57] - The company recorded a net income of $260,000 in Q4 2022, compared to a net loss of $823,000 in the prior year, and for the full year, a net loss of $5.9 million compared to a loss of $4 million in 2021 [57] Business Line Data and Key Metrics Changes - Casino and gaming market revenue for Q4 was nearly $11 million, up 123% year-over-year, and for the full year, it increased approximately 96% to $30 million [19][36] - FST (Food Service Technology) sales for Q4 were $3.1 million, down 13% from the prior year, and for the full year, FST sales were $12.4 million, down 2% [28][57] - Recurring FST revenue for Q4 was $2.4 million, up 14% year-over-year, and for the full year, it was $8.7 million, up 18% [55] Market Data and Key Metrics Changes - International sales in the casino and gaming sector were up 108% year-over-year, while domestic sales increased by 131% [55] - The company is experiencing strong demand in the SMB market, having closed deals with at least two SMB restaurant chains in Q1 [26] Company Strategy and Development Direction - The company is focusing on maintaining relationships with customers and managing expectations due to high demand and supply chain challenges [2] - There is a strategic emphasis on the labeling solutions in the restaurant industry, targeting labor and food cost savings [8][78] - The company plans to increase production capacity with the addition of a fourth production line to meet ongoing demand [11][27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the continued strength of the casino and gaming market, projecting growth for 2023 [53] - The company anticipates total revenues for 2023 to be between $70 million and $72 million, with adjusted EBITDA expected between $5.2 million and $5.4 million [35][57] - Management acknowledged the challenges posed by inflation and labor shortages in the restaurant sector but remains optimistic about the potential for growth [8][78] Other Important Information - The company has successfully navigated supply chain issues and is now focusing on ramping up production to meet demand [43][72] - The company is also seeing increased interest in its TSG (TransAct Services Group) sales, which are expected to grow in 2023 due to demand for spare parts [56] Q&A Session Summary Question: Insights on guidance for 2023 - Management provided guidance for 2023, indicating confidence based on current visibility and backlog levels [68][72] Question: Update on large QSR customer rollout - Management clarified that they are working with large C-stores and have seen new orders come in, indicating a positive trend [60] Question: Component supply challenges - Management noted that while some supply issues remain, they have largely overcome the major challenges faced previously [61] Question: Confidence in providing guidance - Management attributed their confidence to improved visibility and strong demand from casino customers, who are placing orders well in advance [72][77]

5 • Successful expansion to the "back-of-house" with our BOHA! platform is a game changer for the market Note: Sample of FST customers SAFE HARBOR Certain statements in this press release include forward-looking statements. Forward-looking statements generally can be identified by the use of forward-looking terminology, such as "may", "will", "expect", "intend", "estimate", "anticipate", "believe", "project", "plan", "design" or "continue", or the negative thereof, or other similar words. All forward-lookin ...