10-Q/A

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

FORM 10-Q/A

(Amendment No. 1)

(Mark One)

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended: June 30, 2014

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

______________________________________________________________________

______________________________________________________________________

(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.)

One Hamden Center, 2319 Whitney Avenue, Suite 3B, Hamden, CT	06518
(Address of Principal Executive Offices)	(Zip Code)

(203) 859-6800

(Registrant’s Telephone Number, Including Area Code)

(Former name, former address and former fiscal year, if changed since last report.)

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes   ý   No   o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  Yes  ý     No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See the definitions of “large accelerated filer,” “accelerated filer,” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.  (check one):

Large accelerated filer  o	Accelerated filer  ý
Non-accelerated filer  o (Do not check if a smaller reporting company)	Smaller reporting company  o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes   o   No   ý

As of July 31, 2014, the number of shares outstanding of the Company’s common stock, $0.01 par value, was 8,329,255.

EXPLANATORY NOTE

The sole purpose of this Amendment No.1 to the Quarterly Report of TransAct Technologies Incorporated on Form 10-Q for the quarter ended June 30, 2014, originally filed with the Securities and Exchange Commission on August 7, 2014 (the “Form 10-Q”), is to furnish Exhibit 101 to the Form 10-Q in accordance with Rule 405 of Regulation S-T.  Exhibit 101 to this report provides the consolidated financial statements and related notes from the Form 10-Q formatted in XBRL (eXtensible Business Reporting Language).

Other than the aforementioned, no other changes have been made to the Form 10-Q.  This Amendment No. 1 to the Form 10-Q speaks as of the original filing date of the Form 10-Q, does not reflect events that may have occurred subsequent to the original filing date, and does not modify or update in any way disclosures made in the original Form 10-Q.

Pursuant to Rule 406T of Regulation S-T, the interactive data files in Exhibit 101 hereto are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, are deemed not filed for purposes of Section 18 of the Securities and Exchange Act of 1934, as amended, and otherwise are not subject to liability under those sections.

2

PART II. OTHER INFORMATION

Item 6.  EXHIBITS

101.INS	XBRL Instance Document.
101.SCH	XBRL Taxonomy Extension Schema Document.
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB	XBRL Taxonomy Extension Label Linkbase Document.
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document.

3

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	TRANSACT TECHNOLOGIES INCORPORATED
	(Registrant)
	/s/ Steven A. DeMartino
August 7, 2014	Steven A. DeMartino
	President, Chief Financial Officer, Treasurer and Secretary
	(Principal Financial and Accounting Officer)

4

EXHIBIT LIST

The following exhibits are filed herewith.

Exhibit
101.INS	XBRL Instance Document.
101.SCH	XBRL Taxonomy Extension Schema Document.
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB	XBRL Taxonomy Extension Label Linkbase Document.
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document.

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6. Shareholders' equity (Details) - Changes in Shareholders' Equity (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Changes in Shareholders' Equity [Abstract]
Balance at December 31, 2013			$ 32,521
Net income	175	1,215	569	2,375
Share-based compensation expense			309	276
Issuance of deferred stock units, net of relinquishments			56	446
Foreign currency translation adjustment			5
Dividends declared and paid on common stock			(1,248)
Balance at June 30, 2014	$ 32,212		$ 32,212

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3. Accrued product warranty liability

6 Months Ended

Jun. 30, 2014

Product Warranties Disclosures [Abstract]

Product Warranty Disclosure [Text Block]

3. Accrued product warranty liability

We generally warrant our products for up to 36 months and record the estimated cost of such product warranties at the time the sale is recorded. Estimated warranty costs are based upon actual past experience of product repairs and the related estimated cost of labor and material to make the necessary repairs.

The following table summarizes the activity recorded in the accrued product warranty liability during the six months ended June 30, 2014:

	(In thousands)
Balance, beginning of period	$	366
Warranties issued		123
Warranty settlements		(146)
Balance, end of period	$	343

Approximately $234,000 of the accrued product warranty liability is classified as current in Accrued liabilities at June 30, 2014 in the Condensed Balance Sheets.  The remaining $109,000 of the accrued product warranty liability is classified as long-term in Other liabilities.

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2. Inventories

3 Months Ended

Jun. 30, 2014

Inventory Disclosure [Abstract]

Inventory Disclosure [Text Block]

2. Inventories

The components of inventories are:

	June 30,		December 31,
	2014		2013
	(In thousands)
Raw materials and purchased component parts	$	8,118	$	7,263
Work-in-process		1		31
Finished goods		5,889		6,215
	$	14,008	$	13,509

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CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
Current assets:
Cash and cash equivalents	$ 5,088	$ 2,936
Accounts receivable, net	11,802	13,234
Inventories	14,008	13,509
Prepaid income taxes	76	390
Deferred tax assets	1,655	1,655
Other current assets	545	497
Total current assets	33,174	32,221
Fixed assets, net	2,710	2,732
Goodwill	2,621	2,621
Deferred tax assets	895	920
Intangible assets, net of accumulated amortization of $2,069 and $1,811, respectively	1,597	1,856
Other assets	46	58
	7,869	8,187
Total assets	41,043	40,408
Liabilities and Shareholders’ Equity:
Accounts payable	5,406	4,749
Accrued liabilities	2,302	2,215
Income taxes payable	36	26
Accrued contingent consideration (Note 4)	40	60
Deferred revenue	543	300
Total current liabilities	8,327	7,350
Deferred revenue, net of current portion	76	103
Deferred rent, net of current portion	208	244
Other liabilities	220	190
	504	537
Total liabilities	8,831	7,887
Shareholders’ equity:
Common stock, $0.01 par value, 20,000,000 shares authorized; 11,116,293 and 11,106,354 shares issued, respectively; 8,329,255 and 8,319,316 shares outstanding, respectively	111	111
Additional paid-in capital	28,039	27,674
Retained earnings	26,647	27,326
Accumulated other comprehensive loss, net of tax	(58)	(63)
Treasury stock, at cost, 2,787,038 shares	(22,527)	(22,527)
Total shareholders’ equity	32,212	32,521
Total liabilities and shareholders’ equity	$ 41,043	$ 40,408

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
Cash flows from operating activities:
Net income	$ 569	$ 2,375
Adjustments to reconcile net income to net cash provided by operating activities:
Share-based compensation expense	309	276
Incremental tax benefits from stock options exercised		(33)
Depreciation and amortization	727	886
Deferred income tax provision	22
Foreign currency transaction (gains) losses	17	(33)
Changes in operating assets and liabilities:
Accounts receivable	1,432	4,277
Inventories	(499)	(2,467)
Prepaid income taxes	314
Other current and long term assets	(41)	(166)
Accounts payable	658	(818)
Accrued liabilities and other liabilities	340	(990)
Net cash provided by operating activities	3,848	3,307
Cash flows from investing activities:
Capital expenditures	(440)	(426)
Additions to capitalized software		(42)
Net cash used in investing activities	(440)	(468)
Cash flows from financing activities:
Proceeds from stock option exercises	56	446
Payment of dividends on common stock	(1,248)	(1,127)
Purchases of common stock for treasury		(887)
Incremental tax benefits from stock options exercised		33
Net cash used in financing activities	(1,248)	(1,535)
Effect of exchange rate changes on cash and cash equivalents	(8)	(13)
Increase in cash and cash equivalents	2,152	1,291
Cash and cash equivalents, beginning of period	2,936	7,537
Cash and cash equivalents, end of period	$ 5,088	$ 8,828

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4. Accrued contingent consideration (Details) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Mar. 31, 2014
Business Combinations [Abstract]
Business Combination, Contingent Consideration Arrangements, Description			30%
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, Low				$ 0
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High				150,000
Contingent Consideration Amount	40,000		40,000	60,000
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability	$ 20,000	$ 200,000

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5. Earnings per share (Details) - Earnings per share reconciliation (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Earnings per share reconciliation [Abstract]
Net income (in Dollars)	$ 175	$ 1,215	$ 569	$ 2,375
Basic: Weighted average common shares outstanding	8,376	8,728	8,374	8,722
Add: Dilutive effect of outstanding options as determined by the treasury stock method	144	74	164	81
Diluted: Weighted average common and common equivalent shares outstanding	8,520	8,802	8,538	8,803
Net income per common share:
Basic (in Dollars per share)	$ 0.02	$ 0.14	$ 0.07	$ 0.27
Diluted (in Dollars per share)	$ 0.02	$ 0.14	$ 0.07	$ 0.27

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1. Basis of presentation

6 Months Ended

Jun. 30, 2014

Disclosure Text Block [Abstract]

Business Description and Basis of Presentation [Text Block]

1. Basis of presentation

The accompanying unaudited financial statements of TransAct Technologies Incorporated have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information.  Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America to be included in full year financial statements.  In the opinion of management, all adjustments considered necessary for a fair statement of the results for the periods presented have been included and are of a normal recurring nature.  The December 31, 2013 Condensed Consolidated Balance Sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America.  These interim financial statements should be read in conjunction with the audited financial statements for the year ended December 31, 2013 included in our Annual Report on Form 10-K.

The financial position and results of operations of our U.K.  subsidiary are measured using local currency as the functional currency.  Assets and liabilities of such subsidiary have been translated at the end of period exchange rates, and related revenues and expenses have been translated at the weighted average exchange rates with the resulting translation gain or loss recorded in accumulated other comprehensive income (loss) in the Condensed Consolidated Balance Sheets.  Transaction gains and losses are included in other income in the Condensed Consolidated Statements of Income.

The results of operations for the three and six months ended June 30, 2014 are not necessarily indicative of the results to be expected for the full year.

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CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (Parentheticals) (USD $) In Thousands, except Share data, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
Accumulated amortization (in Dollars)	$ 2,069	$ 1,811
Common stock par value (in Dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	20,000,000	20,000,000
Common stock, shares issued	11,116,293	11,106,354
Common stock, shares outstanding	8,329,255	8,319,316

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5. Earnings per share (Tables)

6 Months Ended

Jun. 30, 2014

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2014		2013		2014		2013
	(In thousands, except per share data)
Net income	$	175	$	1,215	$	569	$	2,375
Shares:
Basic:  Weighted average common shares outstanding		8,376		8,728		8,374		8,722
Add:  Dilutive effect of outstanding options as determined by the         treasury stock method		144		74		164		81
Diluted:  Weighted average common and common equivalent shares outstanding		8,520		8,802		8,538		8,803
Net income per common share:
Basic	$	0.02	$	0.14	$	0.07	$	0.27
Diluted	$	0.02	$	0.14	$	0.07	$	0.27

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Document And Entity Information (USD $)	3 Months Ended
	Mar. 31, 2014	Apr. 30, 2014	Jun. 28, 2013
Document and Entity Information [Abstract]
Entity Registrant Name	Transact Technologies Incorporated
Document Type	10-Q
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		8,329,255
Entity Public Float			$ 67,800,000
Amendment Flag	false
Entity Central Index Key	0001017303
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Accelerated Filer
Entity Well-known Seasoned Issuer	No
Document Period End Date	Mar. 31, 2014
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	Q1

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6. Shareholders' equity (Tables)

6 Months Ended

Jun. 30, 2014

Stockholders' Equity Note [Abstract]

Schedule of Stockholders Equity [Table Text Block]

Balance at December 31, 2013	$	32,521
Net income		569
Share-based compensation expense		309
Issuance of deferred stock units, net of relinquishments		56
Foreign currency translation adjustment		5
Dividends declared and paid on common stock		(1,248)
Balance at June 30, 2014	$	32,212

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CONDENSED CONSOLIDATED STATEMENTS OF INCOME (unaudited) (USD $) Share data in Thousands, except Per Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Net sales	$ 13,804,000	$ 15,788,000	$ 27,423,000	$ 30,845,000
Cost of sales	8,016,000	9,336,000	15,909,000	17,960,000
Gross profit	5,788,000	6,452,000	11,514,000	12,885,000
Operating expenses:
Engineering, design and product development	1,151,000	995,000	2,381,000	2,007,000
Selling and marketing	2,257,000	1,857,000	4,222,000	3,643,000
General and administrative	2,000,000	1,736,000	3,888,000	3,770,000
Legal fees associated with lawsuit (Note 8)	35,000	57,000	47,000	256,000
	5,443,000	4,645,000	10,538,000	9,676,000
Operating income	345,000	1,807,000	976,000	3,209,000
Interest and other income (expense):
Interest, net	(12,000)		(26,000)	(1,000)
Other, net	(12,000)	(4,000)	(20,000)	33,000
	(24,000)	(4,000)	(46,000)	32,000
Income before income taxes	321,000	1,803,000	930,000	3,241,000
Income tax provision	146,000	588,000	361,000	866,000
Net income	$ 175,000	$ 1,215,000	$ 569,000	$ 2,375,000
Net income per common share:
Basic (in Dollars per share)	$ 0.02	$ 0.14	$ 0.07	$ 0.27
Diluted (in Dollars per share)	$ 0.02	$ 0.14	$ 0.07	$ 0.27
Shares used in per-share calculation:
Basic (in Shares)	8,376	8,728	8,374	8,722
Diluted (in Shares)	8,520	8,802	8,538	8,803
Dividends declared and paid per common share: (in Dollars per share)	$ 0.08	$ 0.07	$ 0.15	$ 0.13

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6. Shareholders' equity

6 Months Ended

Jun. 30, 2014

Stockholders' Equity Note [Abstract]

Stockholders' Equity Note Disclosure [Text Block]

6. Shareholders’ equity

Changes in shareholders’ equity for the six months ended June 30, 2014 were as follows (in thousands):

Balance at December 31, 2013	$	32,521
Net income		569
Share-based compensation expense		309
Issuance of deferred stock units, net of relinquishments		56
Foreign currency translation adjustment		5
Dividends declared and paid on common stock		(1,248)
Balance at June 30, 2014	$	32,212

We paid a portion of the 2013 incentive bonus for the chief executive officer and chief financial officer in the form of deferred stock units.  Such deferred stock units were granted in February 2014 and were fully vested at the time of grant.

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5. Earnings per share

6 Months Ended

Jun. 30, 2014

Earnings Per Share [Abstract]

Earnings Per Share [Text Block]

5. Earnings per share

The following table sets forth the reconciliation of basic weighted average shares outstanding and diluted weighted average shares outstanding:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2014		2013		2014		2013
	(In thousands, except per share data)
Net income	$	175	$	1,215	$	569	$	2,375
Shares:
Basic:  Weighted average common shares outstanding		8,376		8,728		8,374		8,722
Add:  Dilutive effect of outstanding options as determined by the         treasury stock method		144		74		164		81
Diluted:  Weighted average common and common equivalent shares outstanding		8,520		8,802		8,538		8,803
Net income per common share:
Basic	$	0.02	$	0.14	$	0.07	$	0.27
Diluted	$	0.02	$	0.14	$	0.07	$	0.27

For the three months ended June 30, 2014 and 2013, there were 207,000 and 565,000, respectively, potentially dilutive shares consisting of stock options that were excluded from the calculation of earnings per diluted share.  For the six months ended June 30, 2014 and 2013, there were 207,000 and 636,000, respectively, potentially dilutive shares consisting of stock options that were excluded from the calculation of earnings per diluted share.

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5. Earnings per share (Details) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Earnings Per Share [Abstract]
Dilutive Securities, Effect on Basic Earnings Per Share, Options and Restrictive Stock Units	$ 207,000	$ 565,000	$ 207,000	$ 636,000

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2. Inventories (Details) - Inventory components (USD $) In Thousands, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
Inventory components [Abstract]
Raw materials and purchased component parts	$ 8,118	$ 7,263
Work-in-process	1	31
Finished goods	5,889	6,215
	$ 14,008	$ 13,509

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2. Inventories (Tables)

3 Months Ended

Mar. 31, 2014

Inventory Disclosure [Abstract]

Schedule of Inventory, Current [Table Text Block]

The components of inventories are:

	June 30,		December 31,
	2014		2013
	(In thousands)
Raw materials and purchased component parts	$	8,118	$	7,263
Work-in-process		1		31
Finished goods		5,889		6,215
	$	14,008	$	13,509

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7. Income taxes

6 Months Ended

Jun. 30, 2014

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

7. Income taxes

We recorded an income tax provision for the second quarter of 2014 of $146,000 at an effective tax rate of 45.5%, compared to an income tax provision during the second quarter of 2013 of $588,000 at an effective tax rate of 32.6%.  For the six months ended June 30, 2014, we recorded an income tax provision of $361,000 at an effective tax rate of 38.8%, compared to an income tax provision during the six months ended June 30, 2013 of $866,000 at an effective tax rate of 26.7%.  Our effective tax rate for the first six months of 2013 is unusually low because it includes the benefit from both the 2012 and 2013 federal research and development (“R&D”) credit as this credit was not renewed until January 2, 2013 as a component of the American Taxpayer Relief Act of 2012 (the “Act”). The effective tax rate for both the three and six months period ended June 30, 2014 does not include any benefit from the 2014 R&D credit as this credit expired at the end of 2013.

We are subject to U.S. federal income tax as well as income tax of certain state and foreign jurisdictions.  We have substantially concluded all U.S. federal income tax, state and local, and foreign tax matters through 2009.  During 2008, a limited scope examination of our 2005 and 2006 federal tax returns was completed and during 2013, an examination of our 2010 federal return was completed.  However, our federal tax returns for the years 2010 through 2013 remain open to examination. Various state and foreign tax jurisdiction tax years remain open to examination as well, though we believe that any additional assessment would be immaterial to the Condensed Consolidated Financial Statements.  No state or foreign tax jurisdiction income tax returns are currently under examination. As of June 30, 2014, we had $111,000 of total gross unrecognized tax benefits that, if recognized, would favorably affect the effective income tax rate in any future periods.

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8. Commitments and contingencies (Under Review)

6 Months Ended

Jun. 30, 2014

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies Disclosure [Text Block]

8. Commitments and contingencies

On June 8, 2012, Avery Dennison Corporation (“AD”) filed a civil complaint against the Company and a former employee of the Company and of AD, in the Court of Common Pleas (the “Court”) in Lake County, Ohio.  The complaint alleges that this former employee and the Company misappropriated unspecified trade secrets and confidential information related to the design of our food safety terminals from AD.  The complaint requests a preliminary and permanent injunction against the Company from manufacturing and selling our Ithaca® 9700 and 9800 food safety terminals.  On July 16, 2012, the Company filed its answer, affirmative defenses and counterclaims, seeking all available damages including legal fees.  A hearing on the plaintiff's motion for preliminary injunction took place in August 2012, and in November 2012, the Court denied this request. AD filed an appeal of the Court’s ruling to the Eleventh Appellate District, which heard oral arguments on the appeal on July 16, 2013.  On July 23, 2013, AD requested that the Eleventh Appellate District enjoin the Company’s further sale and marketing of the food safety terminals, pending the appeals court's decision. On July 29, 2013, TransAct opposed this request. On October 15, 2013, the Eleventh District Court of Appeals affirmed the lower court’s decision in the Company’s favor and denied AD’s further request of an injunction pending the Court of Appeal’s decision.  On October 24, 2013, AD filed a motion seeking that the Court of Appeals reconsider its decision.  On April 16, 2014, the Court of Appeals denied AD’s motion to reconsider its decision.  On July 28, 2014, AD filed a motion requesting leave from the Court to file an amended complaint and indicating that it has elected to pursue only its claim for damages, dropping its claim for injunctive relief.  A trial is scheduled to begin on April 21, 2015.

Resource Sufficiency

On June 8, 2012, Avery Dennison Corporation (“AD”) filed a civil complaint against the Company and a former employee of the Company and of AD, in the Court of Common Pleas (the “Court”) in Lake County, Ohio.  The complaint alleges that this former employee and the Company misappropriated unspecified trade secrets and confidential information related to the design of our food safety terminals from AD.  The complaint requests a preliminary and permanent injunction against the Company from manufacturing and selling our Ithaca® 9700 and 9800 food safety terminals.  On July 16, 2012, the Company filed its answer, affirmative defenses and counterclaims, seeking all available damages including legal fees.  A hearing on the plaintiff's motion for preliminary injunction took place in August 2012, and in November 2012, the Court denied this request. AD filed an appeal of the Court’s ruling to the Eleventh Appellate District, which heard oral arguments on the appeal on July 16, 2013.  On July 23, 2013, AD requested that the Eleventh Appellate District enjoin the Company’s further sale and marketing of the food safety terminals, pending the appeals court's decision. On July 29, 2013, TransAct opposed this request. On October 15, 2013, the Eleventh District Court of Appeals affirmed the lower court’s decision in the Company’s favor and denied AD’s further request for an injunction pending the Court of Appeal’s decision.  On October 24, 2013, AD filed a motion seeking that the Court of Appeals reconsider its decision.  On April 16, 2014, the Court of Appeals denied AD’s motion to reconsider its decision.  On July 28, 2014, AD filed a motion requesting leave from the Court to file an amended complaint and indicating that it has elected to pursue only its claim for damages, dropping its claim for injunctive relief.  A trial is scheduled to begin on April 21, 2015.

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3. Accrued product warranty liability (Tables)

6 Months Ended

Jun. 30, 2014

Product Warranties Disclosures [Abstract]

Schedule of Product Warranty Liability [Table Text Block]

We generally warrant our products for up to 36 months

	(In thousands)
Balance, beginning of period	$	366
Warranties issued		123
Warranty settlements		(146)
Balance, end of period	$	343

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3. Accrued product warranty liability (Details) - Warranty Activity (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2014
Warranty Activity [Abstract]
Balance, beginning of period	$ 366
Warranties issued	123
Warranty settlements	(146)
Balance, end of period	$ 343

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7. Income taxes (Details) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013	Mar. 31, 2014
Income Tax Disclosure [Abstract]
Income Tax Expense (Benefit)	$ 146,000	$ 588,000	$ 361,000	$ 866,000
Effective Income Tax Rate Reconciliation, Percent	45.50%	32.60%	38.80%	26.70%
Unrecognized Tax Benefits that Would Impact Effective Tax Rate					$ 111,000

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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Net income	$ 175	$ 1,215	$ 569	$ 2,375
Foreign currency translation adjustment, net of tax	4	1	5	(27)
Comprehensive income	$ 179	$ 1,216	$ 574	$ 2,348

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4. Accrued contingent consideration

6 Months Ended

Jun. 30, 2014

Business Combinations [Abstract]

Business Combination Disclosure [Text Block]

4. Accrued contingent consideration

In connection with the acquisition of substantially all of the assets of Printrex, Inc. (“Printrex”) on August 19, 2011, we entered into a contingent consideration arrangement for 30% of the gross profit for a three-year period related to certain new products under development, less certain other adjustments, beginning on January 1, 2012 which was the earlier of (1) January 1, 2012 or (2) the date of first commercial introduction of the new products under development.  The undiscounted fair value related to the contingent liability could range from approximately $0 to $150,000.  The fair value of the contingent consideration arrangement was $40,000 and $60,000 at June 30, 2014 and December 31, 2013, respectively, which was estimated by applying the income approach.  That measure is based on significant inputs that are not observable in the market, which fair value measurement guidance refers to as Level 3 inputs. During the second quarter of 2014 and 2013, the fair value of the contingent consideration decreased by $20,000 and $200,000, respectively, and this credit is included in the general and administrative expenses on the Condensed Consolidated Statement of Income. No payments were made under the arrangement during the six months ended June 30, 2014 as the underlying conditions of the contingent consideration arrangement were not satisfied. Refer to Note 3, Business acquisitions, of the Company’s Consolidated Financial Statements included in the Company’s 2013 Annual Report on Form 10-K for the year ended December 31, 2013 for additional information regarding this contingent consideration arrangement.

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3. Accrued product warranty liability (Details) (USD $)	Jun. 30, 2014
Product Warranties Disclosures [Abstract]
Product Warranty Accrual, Current	$ 234,000
Product Warranty Accrual, Noncurrent	$ 109,000