TransAct Technologies rporated(TACT) - 2024 Q4 - Annual Results

Financial Performance - Net sales for Q4 2024 were $10.2 million, down 6% sequentially and down 23% compared to $13.3 million in Q4 2023[3] - FST recurring revenue for Q4 2024 was $2.7 million, down 5% sequentially and 15% compared to $3.2 million in Q4 2023[3] - Gross profit for Q4 2024 was $4.5 million, resulting in a gross margin of 44.2%, compared to a gross profit of $6.4 million and a 48.0% gross margin in Q4 2023[3] - Full year 2024 net sales were $43.4 million, down 40% from $72.6 million in 2023[6] - Full year 2024 net loss was $(9.9) million, or $(0.99) per diluted share, compared to a net income of $4.7 million, or $0.47 per diluted share in 2023[6] - Adjusted EBITDA for Q4 2024 was negative $(705) thousand, compared to positive $587 thousand in Q4 2023[6] - The operating loss for Q4 2024 was $(1,050,000), compared to an operating loss of $(522,000) in Q4 2023[22] - Net loss for Q4 2024 was $(7,957,000), significantly higher than the net loss of $(62,000) in Q4 2023[22] - For the year ended December 31, 2024, the net loss was reported at $(9,863) million, compared to a net income of $4,748 million for 2023[31] - Adjusted EBITDA for the year ended December 31, 2023, was $9,968 million, while the adjusted EBITDA for 2024 was $(1,521) million[31] Assets and Liabilities - Total assets decreased to $44,034,000 as of December 31, 2024, down from $54,198,000 as of December 31, 2023[26] - Total liabilities decreased to $13,401,000 as of December 31, 2024, from $14,784,000 as of December 31, 2023[26] - The company reported a full valuation allowance on deferred tax assets amounting to $7,313,000 in Q4 2024[27] Future Outlook - The company expects full year 2025 net sales to be between $47 million and $52 million[6] - The company anticipates 2025 to be an inflection point with decreasing net losses as overall revenue returns to growth[2] - The strategic review process remains active, focusing on options to increase shareholder value[7] - The company plans to focus on developing new products and expanding its market presence despite current economic challenges[22] Operating Expenses - The company’s operating expenses for the year ended December 31, 2024, were $25,108,000, representing 57.9% of net sales[29] - Operating expenses for the year were $32,694 million, representing 45.0% of net sales, while adjusted operating expenses were $31,233 million, or 43.0% of net sales[30] - The company incurred a severance charge of $1,461 million related to the resignation of the former CEO, impacting the income tax expense by $(303) million[30] Income Tax and Other Income - The company experienced a significant increase in income tax expense from $1,155 million in 2023 to $6,295 million in 2024[31] - Interest and other income for the year was $197 million, with no adjustments made[30] Shareholder Returns - The company reported a basic net income per common share of $0.48 and a diluted net income per common share of $0.47 for the year ended December 31, 2023[30]