Financial Data and Key Metrics Changes - The company reported a projected net revenue of $395 million for 2025, with 65% expected to come from wholesale channels, indicating a deliberate diversification strategy [29] - The company has faced challenges with gross margins due to rising green coffee prices, which have doubled over the last two years, reaching historic highs of $3-$4 per pound [32][34] - The company aims to restore gross margins to 40% over time through pricing strategies, productivity improvements, and a shift towards more profitable wholesale sales [36] Business Line Data and Key Metrics Changes - The core coffee business remains the primary revenue driver, with significant growth in ready-to-drink (RTD) coffee, which is now the third-largest in America [21][24] - The company has diversified its customer base from 90% direct-to-consumer in 2019 to a more balanced approach with significant wholesale distribution through major retailers like Walmart and Kroger [29] - The ready-to-drink coffee category has faced challenges but is expected to see innovation with new products like Cold Brew launching in January [25] Market Data and Key Metrics Changes - The company has increased its presence in grocery and mass retail, now reaching 55% of measurable stores across the country [24] - The company is experiencing unit growth of 22% despite rising prices, indicating strong demand and effective pricing strategies [21] Company Strategy and Development Direction - The company emphasizes its mission-driven narrative and veteran support, which resonates with consumers and differentiates it from competitors [10][12] - The strategy includes a "land and expand" approach to increase market penetration and velocity in retail channels [24] - The company plans to focus on innovation in the RTD coffee segment and energy drinks while ensuring that investments do not detract from the core coffee business [28] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the challenges faced in the coffee market but expresses confidence in the company's ability to navigate these complexities and capitalize on growth opportunities [5][11] - The management team is committed to building credibility and consistency over the next two years, focusing on brand momentum and community engagement [11][12] Other Important Information - The company has reduced headcount by nearly 50% from 2022 highs to streamline operations and improve efficiency [35] - The management team consists of military veterans, which is highlighted as a strategic advantage in building brand loyalty and community support [10][12] Q&A Session Summary Question: What is the company's strategy for the energy drink segment? - The company plans to focus on specific geographies where it can support its energy drink distribution effectively, learning from past experiences to avoid overextending [27][28] Question: How does the company plan to address rising coffee prices? - The company is implementing pricing actions, improving supply chain efficiencies, and shifting towards more profitable wholesale sales to mitigate the impact of rising coffee prices [32][34]

Financial Data and Key Metrics Changes - The company is projected to achieve $395 million in net revenue by 2025, with 65% of that revenue coming from wholesale, indicating a deliberate diversification strategy [28] - The company has experienced a 22% unit growth despite rising coffee prices, which have doubled over the last two years due to adverse weather conditions and tariffs [23][31] - Operating margins have been impacted by cost inflation, but the company has a pathway to restore gross margins to 40% over time [30][32] Business Line Data and Key Metrics Changes - The core business remains coffee, with pods and bags generating the majority of cash profitability [21] - The ready-to-drink (RTD) coffee segment has become the third largest in America, with plans for innovation to drive growth in this category [22][25] - The energy segment is being approached with caution, focusing on strategic distribution to ensure success in select geographies [26][27] Market Data and Key Metrics Changes - The company has diversified its customer base from 90% direct-to-consumer in 2019 to a more balanced approach with significant wholesale distribution [28] - The company is now present in 55% of measurable grocery and mass stores across the country, indicating a successful land and expand strategy [23] Company Strategy and Development Direction - The company emphasizes its mission-driven narrative and authentic brand story, leveraging partnerships with influential figures to enhance brand visibility [10][14] - The focus is on maintaining investment in core competencies while exploring adjacent markets for growth, particularly in energy and RTD coffee [21][25] - The company aims to build credibility and consistency over the next two years, reinforcing its strategic advantage as a veteran-backed brand [11] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the challenges posed by rising coffee prices and inflation but remains confident in the company's ability to navigate these issues through strategic pricing and operational efficiencies [31][32] - The company is committed to maintaining a strong operating structure to support scaling and profitability, with a focus on reducing headcount and simplifying operations [33] Other Important Information - The company has seen significant changes in its operating structure, reducing headcount by nearly 50% from highs in 2022 to prepare for future growth [33] - Management has highlighted the importance of maintaining a nimble approach to adapt to market conditions and consumer demands [26] Q&A Session Summary Question: What are the long-term financial targets for the company? - The company aims for revenue growth of 10%-15% and to restore gross margins to 40% over time, with adjusted gross margins expected to outpace sales growth [34]

Financial Data and Key Metrics Changes - Total net sales for Q3 2025 were $13.2 million, down 5% sequentially but up 21% year-over-year from $10.9 million [17] - Adjusted EBITDA for the quarter was positive at $669,000, up from an adjusted EBITDA loss of $204,000 in the prior year period [21] - Gross margin for Q3 was 49.8%, up from 48.1% in the prior year period and up 160 basis points sequentially [20] Business Line Data and Key Metrics Changes - Food Service Technology (FST) net sales rose to $4.8 million, up 13% year-over-year, driven by hardware sales and growing recurring revenue [6][17] - Recurring FST revenue climbed to $3.3 million, generating a modest uptick in ARPU to $792 per unit from $700 in the prior year quarter [6][17] - Casino and gaming sales were $7.1 million, up 58% year-over-year but down 7% sequentially, reflecting market rebound and challenges in domestic demand [12][18] Market Data and Key Metrics Changes - The company experienced challenges in the domestic casino market, with indications of slowing demand from partners [12][18] - International markets showed strong performance, contrasting with domestic challenges [13] Company Strategy and Development Direction - The company is focused on a "land and expand" strategy, emphasizing repeatable execution and leveraging competitive advantages [5] - An acquisition of a perpetual license for the BOHA source code was completed for $2.55 million, providing operational freedom and long-term value creation [5][24] - Future projects include the potential development of an app store for BOHA terminals to enhance software revenue [11] Management's Comments on Operating Environment and Future Outlook - Management expects fourth quarter sales to be impacted by domestic market dynamics but remains optimistic about recovery in 2026 [12][31] - The company maintains full-year revenue guidance of $50 million-$53 million, reflecting continued FST expansion and casino stability [13] Other Important Information - The company has $20 million in cash on the balance sheet, providing ample working capital and flexibility [14][22] - Operating expenses for Q3 increased by 8% year-over-year to $6.5 million, with G&A expenses rising due to higher incentive and share-based compensation [21] Q&A Session Summary Question: Update on casino and gaming initiatives and competitive landscape - Management has adjusted the sales compensation plan to incentivize new customer acquisition and competitive wins, focusing on maintaining market share against a major competitor [27][29] Question: Magnitude of fourth quarter impact on casino and gaming - Management noted that demand has weakened and expects the fourth quarter to be weaker than the third quarter, but anticipates recovery in 2026 [30][31] Question: Regulatory developments in non-charitable gaming markets - Management highlighted opportunities for state governments to generate revenue through gaming, suggesting potential for expansion as states follow suit [32][34] Question: New logo acquisition in FST and pipeline development - Management acknowledged that while new logo acquisition was below expectations, the pipeline remains strong, and the focus is on improving metrics throughout the sales process [35][36]

Financial Data and Key Metrics Changes - Total net sales for Q1 2025 were $13.1 million, up 28% sequentially and 22% year over year from $10.7 million [19] - Gross margin for Q1 was 48.7%, down from 52.6% in the prior year period, primarily due to a higher mix of lower-margin FST hardware sales [22] - Positive net income of $19,000 was reported, compared to a net loss of $1 million in the prior year [25] Business Line Data and Key Metrics Changes - FST revenue increased to $4.9 million, up 14% sequentially and 49% year over year from $3.3 million [19] - Casino and gaming sales were $6.7 million, up 41% sequentially and 18% year over year, reflecting market recovery and new OEM wins [21] - POS automation sales declined 5% year over year to $618,000 due to a competitive environment [21] Market Data and Key Metrics Changes - The FST business saw total revenue of $14.9 million, a 49% increase year over year, driven by hardware sales [6] - The casino and gaming market showed notable strength with a revenue increase of 18% year over year [13] Company Strategy and Development Direction - The company is focusing on a "land and expand" strategy, securing initial deployments and then growing its footprint over time [11] - A strategic review process has been suspended due to macroeconomic uncertainties, with a focus on incremental growth and disciplined spending [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about continued growth in the FST and casino sectors, with a strong pipeline and positive customer feedback [6][15] - The company maintains a full-year revenue guidance of $47 million to $52 million, with adjusted EBITDA expected to range from breakeven to negative $1.5 million [17] Other Important Information - The company has a solid balance sheet with cash and cash equivalents of $14.2 million and a debt balance of $3 million [26] - The BOHA! Terminal is being adopted across various industries, including healthcare, showcasing its versatility [12] Q&A Session Summary Question: Can you provide an update on the FST pipeline and conversion progress? - Management reported stable conversion rates and highlighted traction in the grab-and-go market and food service management [29][30] Question: What inning are you in regarding fulfilling the 40,000 legacy units for QSR? - Management indicated they are in the early stages of this process, with positive uptake and global sales permissions [38][39] Question: Any considerations for the revenue guidance range of $47 million to $52 million? - Management noted that revenue recognition can be lumpy, but they expect continued year-over-year improvement [40][41]

Financial Data and Key Metrics Changes - Total net sales for Q1 2025 were $13,100,000, up 28% sequentially and 22% year over year compared to $10,700,000 in the prior year period [17] - Gross margin for Q1 was 48.7%, down from 52.6% in the prior year period, primarily due to a higher mix of FST hardware sales [20] - Positive net income of $19,000 was recorded, compared to a net loss of $1,000,000 in the year-ago period [23] - Adjusted EBITDA reached $544,000, up from negative $701,000 in the prior year period [24] Business Line Data and Key Metrics Changes - Food Service Technology (FST) revenue increased to $14,900,000, up 49% year over year, driven largely by hardware sales [6] - Casino and gaming revenue was $6,700,000, up 18% year over year and 41% sequentially, reflecting market demand recovery [12] - POS automation sales declined 5% year over year to $618,000 due to a strong competitive environment [19] - TransAct Services Group (TSG) sales decreased 22% year over year to $808,000, largely due to strong demand for legacy spare parts in the prior year [20] Market Data and Key Metrics Changes - The convenience store market showed strong adoption of the BOHA! Terminal 2, with a major upgrade order from a leading national chain [10] - The healthcare sector is emerging as a new growth avenue, with contracts secured for nutritional labeling and compliance in hospital kitchens [11] Company Strategy and Development Direction - The company is focusing on a "land and expand" strategy, securing initial deployments and then growing its footprint over time [10] - A strategic review process has been suspended due to macroeconomic uncertainties, with a focus on incremental growth and disciplined spending [14] - The company maintains a full-year revenue guidance of $47,000,000 to $52,000,000, with adjusted EBITDA expected to range from breakeven to negative $1,500,000 [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the recovery of the casino and gaming business, with no systemic challenges anticipated in the midterm [14] - The company is optimistic about continued growth in the FST business, particularly in the grab-and-go market and food service management [28] - Management highlighted the importance of refining metrics related to customer acquisition and sales conversion processes [32] Other Important Information - The company has a strong balance sheet with cash and cash equivalents of $14,200,000 and a debt balance of $3,000,000 [24] - The company is monitoring tariff exposure and its impact on product costs, with BOHA! Terminals currently exempt from tariffs [21] Q&A Session Summary Question: Can you provide an update on the FST pipeline and conversion progress? - Management reported stable conversion rates and highlighted traction in the grab-and-go market and food service management [27][28] Question: What inning are you in regarding fulfilling the 40,000 legacy units for QSR? - Management indicated they are in the early stages of fulfilling this opportunity, with positive uptake and global selling permissions [36][37] Question: Any considerations for the revenue guidance range of $47,000,000 to $52,000,000? - Management noted that while the business is lumpy, they expect continued year-over-year improvement [39]

Financial Data and Key Metrics Changes - Total revenue for Q4 2024 was $10.2 million, down 23% from $13.3 million in Q4 2023 [35] - Full year 2024 net sales were $43.4 million, a decrease of 40% compared to $72.6 million in 2023 [35] - Gross margin for Q4 2024 was 44.2%, down from 48% in the prior year [42] - Full year gross margin was 49.5%, compared to 52.9% in 2023 [42] - Net loss for Q4 2024 was $8 million, or $0.79 per diluted share, compared to a net loss of $62,000, or $0.01 per share in the year-ago period [55] - Full year net loss was $9.9 million, or $0.99 per diluted share, compared to net income of $4.7 million, or $0.47 per diluted share in 2023 [55] Business Line Data and Key Metrics Changes - Food Service Technology (FST) revenue for Q4 was $4.3 million, approximately flat sequentially but down 9% year-over-year [36] - Full year FST revenue was $16.1 million, down 1% from $16.3 million in 2023 [36] - Casino and gaming revenue for Q4 was $4.8 million, up 14% year-over-year [38] - Full year casino and gaming sales were $20.3 million, down 51% year-over-year [38] - POS automation sales for Q4 decreased 74% year-over-year to $411,000 [39] - TransAct Services Group (TSG) sales for Q4 were $759,000, down 73% from $2.8 million in the prior year [41] Market Data and Key Metrics Changes - The company noted a recovery in the casino and gaming market, with all major domestic OEM partners back in buying positions [19][70] - The international side of the casino and gaming market is expected to strengthen, with some OEMs still working through inventory but anticipated to return to buying in the latter half of 2025 [71] Company Strategy and Development Direction - The company is focused on maximizing shareholder value through a strategic review process initiated in Q4 2023 [26] - The management team is considering all options to enhance shareholder value, indicating a proactive approach to potential partnerships or strategic events [26][29] - The company aims to continue improving its go-to-market strategies and internal sales motions to drive growth [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the momentum in terminal placements, expecting continued upward trends throughout 2025 [10] - The company anticipates total revenue for 2025 to be between $47 million and $52 million, with adjusted EBITDA expected to range from breakeven to a negative $2 million [30] - Management acknowledged the complexities of operating two distinct business lines and the challenges in evaluating their respective market opportunities [79] Other Important Information - The company completed the rollout of the Epic TR80 thermal roll printer, which is expected to fuel additional sales in the casino and gaming sector [20] - The company has a solid balance sheet, finishing the year with $14.4 million in cash, up from $2.1 million at the end of 2023 [57] - The credit facility was successfully renewed, providing sufficient liquidity for at least the next twelve months [58] Q&A Session Summary Question: Contribution of large QSR customer to terminal installations - Management indicated that the large QSR customer contributed a significant portion of terminal installations, but not more than half [63] Question: Outlook for 2025 and new client contributions - Management expects contributions from new clients and expansion with existing customers, including the large QSR [66] Question: Growth expectations for casino and gaming segment - Management confirmed expectations for growth in the casino and gaming segment in 2025, with all domestic OEMs back to buying [70] Question: Revenue impact from exiting C-store customer - Management disclosed that the exiting C-store customer represented about $3 to $4 million in annualized revenue, with half of that impacting 2024 [75] Question: Complexity of strategic review process - Management explained that the complexity arises from operating two different businesses and the need for detailed evaluations of each [79] Question: Market opportunity for Epic TR80 - Management highlighted the large and growing market potential for the Epic TR80, particularly in the sports betting sector [84]