Financial Data and Key Metrics Changes - Total net sales for Q4 2025 were $11.5 million, up 12% from $10.2 million in Q4 2024 [23] - Full year 2025 total net sales reached $51.5 million, a 19% increase compared to $43.4 million in 2024 [23] - Adjusted EBITDA for the full year was positive $1.2 million, compared to negative $1.5 million in 2024 [31] - The company ended 2025 with over $20 million in cash, an increase of $6 million from the end of 2024 [31] Business Line Data and Key Metrics Changes - Food Service Technology (FST) sales for Q4 were $4.8 million, up 12% year-over-year [24] - Full year FST sales were $19.3 million, a 20% increase from $16.1 million in 2024 [24] - Casino and gaming sales for Q4 were $5.4 million, up 13% from $4.8 million in Q4 2024 [25] - Full year casino and gaming sales reached $26.9 million, a 32% increase year-over-year [26] Market Data and Key Metrics Changes - FST recurring revenue for Q4 was $3.4 million, up 24% compared to $2.7 million in the prior year [24] - Average revenue per unit (ARPU) for Q4 was $756, down 14% from $875 in Q4 2024 [25] - POS automation sales for Q4 increased 47% year-over-year to $606,000 [26] Company Strategy and Development Direction - The company is focusing on revenue growth in the FST vertical, with software as the primary growth engine [5] - Plans to leverage the acquisition of the BOHA! software source code to enhance offerings and capture higher margin recurring revenue [9] - Targeting positive adjusted EBITDA for 2026 while making disciplined investments in sales and marketing [10] - Emphasis on competitive pricing and strategic partnerships in high-potential sub-verticals such as quick serve restaurants and corporate food services [10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the direction of the business in 2026, particularly around FST software initiatives [21] - The casino business is expected to provide stability and significant free cash flow despite cyclical fluctuations [20] - The company aims to maintain fiscal discipline while pursuing growth opportunities [22] Other Important Information - The company is transitioning from a hardware-centric focus to a software-driven solutions provider [13] - New Chief Marketing Officer Dana Loof is expected to enhance marketing and growth initiatives [17] Q&A Session Summary Question: How do you see AI programming tools helping your business? - The company uses AI internally to improve efficiency in coding and application development [33] - AI tools will be added to products to help clients optimize decision-making [34] Question: How does the company view competition from AI technologies? - Management believes that while AI can assist in basic coding, creating engaging applications still requires skilled professionals [35] - The company sees AI as an opportunity to enhance customer interactions rather than a threat [36]

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 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]