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]