----

| ⌧ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---------|--------------------------------------------------------------------------------------|

| □ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---------|-------------------------------------------------------------------------------------------|

| 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)                           |
| Title of Each ClassCommon Stock, par value $.01 per share |   | Name of Exchange on which RegisteredNasdaq Global Market |
|-----------------------------------------------------------|--------|----------------------------------------------------------|
| Large accelerated filer  □ | Accelerated filer  ⌧         |
|--------------------------------------------|----------------------------------------------|
| Non-accelerated filer  □   | Smaller reporting company  ⌧ |
|                                       | Emerging growth company □              |

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|                                       | PART I.                                     |   |
|--------------------------------------------|---------------------------------------------|--------|
| Item 1A.                                   | Risk Factors                                | 5      |
|                                       |                                        |   |
|                                       | PART II.                                    |   |
| Item 8.                                    | Financial Statements and Supplementary Data | 15     |
| Item 9A.                                   | Controls and Procedures                     | 15     |
|                                       |                                        |   |
|                                       | PART IV.                                    |   |
| Item 15.                                   | Exhibits                                    | 17     |
|                                       |                                        |   |
| SIGNATURES                                 |                                        |
|                                       |                                        |
| Signatures                                 | 20                                          |
|                                       |                                        |
| CONSOLIDATED FINANCIAL STATEMENTS          |                                        |
|                                       |                                        |
| Index to Consolidated Financial Statements | F-1                                         |

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|  | ● | delays between our expenditures to develop and market new or enhanced products and consumables and the generation of sales from those products; |
|--|---------|-------------------------------------------------------------------------------------------------------------------------------------------------|

|  | ● | the geographic distribution of our sales; |
|--|---------|-------------------------------------------|

|  | ● | market acceptance of our products, both domestically and internationally; |
|--|---------|---------------------------------------------------------------------------|

|  | ● | development of new competitive products by others; |
|--|---------|----------------------------------------------------|

|  | ● | our responses to price competition; |
|--|---------|-------------------------------------|

|  | ● | our level of research and development activities; |
|--|---------|---------------------------------------------------|

|  | ● | changes in the amount that we spend to develop, acquire or license new products, consumables, technologies or businesses; |
|--|---------|---------------------------------------------------------------------------------------------------------------------------|

|  | ● | changes in the amount we spend to promote our products and services; |
|--|---------|----------------------------------------------------------------------|

|  | ● | changes in the cost of satisfying our warranty obligations and servicing our installed base of products; |
|--|---------|----------------------------------------------------------------------------------------------------------|

|  | ● | availability of third-party components at reasonable prices; |
|--|---------|--------------------------------------------------------------|

|  | ● | general economic and industry conditions, including changes in interest rates affecting returns on cash balances and investments, that affect customer demand; |
|--|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | ● | fluctuations of world-wide oil and gas prices; |
|--|---------|------------------------------------------------|

|  | ● | severe weather events (such as hurricanes) that can disrupt or interrupt the operation of our customers’ or suppliers’ facilities; and |
|--|---------|----------------------------------------------------------------------------------------------------------------------------------------------------|

|  | ● | changes in accounting rules. |
|--|---------|------------------------------|

----

----

|  | ● | loss of channel and the ability to bring new products to market; |
|--|---------|------------------------------------------------------------------|

|  | ● | concentration of credit risk, including disruption in distribution should the distributors and / or resellers’ financial condition deteriorate; |
|--|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | ● | reduced visibility to end user demand and pricing issues which makes forecasting more difficult; |
|--|---------|--------------------------------------------------------------------------------------------------|

|  | ● | distributors or resellers leveraging their buying power to change the terms of pricing, payment and product delivery schedules; and |
|--|---------|-------------------------------------------------------------------------------------------------------------------------------------|

|  | ● | direct competition should a distributor or reseller decide to manufacture printers internally or source printers from a competitor. |
|--|---------|-------------------------------------------------------------------------------------------------------------------------------------|

----

|  | ● | the imposition of additional trade law provisions or regulations; |
|--|---------|-------------------------------------------------------------------|

|  | ● | reliance on a limited number of shipping and air carriers who may experience capacity issues that adversely affect our ability to ship inventory in a timely manner or for an acceptable cost; |
|--|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | ● | the imposition of additional duties, tariffs and other charges on imports and exports; |
|--|---------|----------------------------------------------------------------------------------------|

|  | ● | economic uncertainties and adverse economic conditions (including inflation and recession); |
|--|---------|---------------------------------------------------------------------------------------------|

|  | ● | fluctuations in the value of the U.S. Dollar against foreign currencies; |
|--|---------|--------------------------------------------------------------------------|

|  | ● | significant labor disputes, such as dock strikes; |
|--|---------|---------------------------------------------------|

|  | ● | significant delays in the delivery of cargo due to port security considerations; |
|--|---------|----------------------------------------------------------------------------------|

|  | ● | financial or political instability in any of the countries in which our printers and terminals are manufactured; and |
|--|---------|----------------------------------------------------------------------------------------------------------------------|

|  | ● | regulatory changes and economic conditions leading up to and following Brexit in those countries that are negatively affected by Brexit and in which our printers and terminals are manufactured. |
|--|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | ● | fluctuating foreign currency rates could restrict sales, or increase costs of purchasing, in foreign countries; |
|--|---------|-----------------------------------------------------------------------------------------------------------------|

|  | ● | foreign governments may impose burdensome tariffs, quotas, taxes, trade barriers or capital flow restrictions; |
|--|---------|----------------------------------------------------------------------------------------------------------------|

|  | ● | political and economic instability may reduce demand for our products or put our foreign assets at risk; |
|--|---------|----------------------------------------------------------------------------------------------------------|

|  | ● | restrictions on the export or import of technology may reduce or eliminate the ability to sell in or purchase from certain markets; |
|--|---------|-------------------------------------------------------------------------------------------------------------------------------------|

|  | ● | potentially limited intellectual property protection in certain countries, such as China, may limit recourse against infringing products or cause us to refrain from selling in certain geographic territories;                  and |
|--|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | ● | regulatory changes and economic conditions leading up to and following, Brexit, including uncertainties as to its effect on tradelaws, tariffs, instability and volatility in the global financial and currency                  markets, conflicting or redundant regulatory regimes inEurope and political stability. |
|--|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

----

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| • | We did not design and maintain effective controls over user access within the Company’s ERP system, Oracle, to ensure appropriate segregation of                duties and to adequately restrict user access to appropriate personnel.  Specifically, the provisioning and user recertification controls are not designed to ensure users maintain proper segregation of duties and therefore could have                inappropriate access rights. (the “Access Control Weakness”). |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | We did not design and maintain effective controls over the completeness and accuracy of information included in key spreadsheets supporting our accounting                records (the “Spreadsheet Control Weakness”). |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | To address the Access Control Weakness, we are utilizing the services of an Oracle consulting firm and an accounting firm unrelated to PwC, to assist us in analyzing                  and reviewing Oracle access for all users.  Upon completion of this analysis, we plan to modify the designated Oracle responsibilities for each employee for which a conflict has been identified to remove any Oracle transactional                  responsibilities that we believe are conflicting and reassign those responsibilities to a different employee to ensure proper segregation of duties. In addition, we plan to enhance and implement provisioning and user certification                  controls to ensure we maintain the appropriate segregation of duties within Oracle following the analysis. |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | To address the Spreadsheet Control Weakness, for each key spreadsheet using Oracle data, we plan to evaluate and determine (1) if a standard Oracle report exists                  containing the same information as the spreadsheet, and if so, we would utilize the standard Oracle report (without modification) instead of the spreadsheet to support our accounting records and (2) if a standard Oracle report cannot be                  used, we will implement a new key control whereby an employee performs a formal validation that the information from Oracle is completely and accurately transferred (automatically or manually) to a spreadsheet by verifying totals and                  other information on a test basis.  For all other key spreadsheets, we plan to design and implement a new key control to validate completeness and accuracy of information supporting our accounting records. |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| 3.1(a)   | Certificate of Incorporation of TransAct Technologies Incorporated (“TransAct” or the “Company”), filed with the Secretary of State of Delaware on June 17, 1996.                                                                                                     | (2)  |
|----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------|
| 3.1(b)   | Certificate of Amendment of Certificate of Incorporation of the Company, filed with the Secretary of State of Delaware on June 4, 1997.                                                                                                                                                       | (3)  |
| 3.1(c)   | Certificate of Designation, Series A Preferred Stock, filed with the Secretary of State of Delaware on December 2, 1997.                                                                                                                                                                      | (6)  |
| 3.1(d)   | Certificate of Designation, Series B Preferred Stock, filed with the Secretary of State of Delaware on April 6, 2000.                                                                                                                                                                         | (8)  |
| 3.2      | Amended and Restated By-laws of the Company.                                                                                                                                                                                                                                                  | (7)  |
| 4        | Specimen Common Stock Certificate.                                                                                                                                                                                                                                                            | (2)  |
| 10.1(x)  | 2005 Equity Incentive Plan.                                                                                                                                                                                                                                                                   | (11) |
| 10.2(x)  | 2014 Equity Incentive Plan.                                                                                                                                                                                                                                                                   | (4)  |
| 10.3(x)  | Amendment to 2014 Equity Incentive Plan approved by Shareholders on May 22, 2017                                                                                                                                                                                                              | (26) |
| 10.4(x)  | 2014 Equity Incentive Plan Time-based Restricted Unit Agreement                                                                                                                                                                                                                               | (23) |
| 10.5(x)  | 2014 Equity Incentive Plan Performance-based Restricted Stock Unit Agreement                                                                                                                                                                                                                  | (24) |
| 10.6(x)  | Employment Agreement, dated July 31, 1996, by and between TransAct and Bart C. Shuldman.                                                                                                                                                                                                      | (2)  |
| 10.7(x)  | Severance Agreement by and between TransAct and Steven A. DeMartino, dated June 1, 2004.                                                                                                                                                                                                      | (10) |
| 10.8(x)  | Severance Agreement by and between TransAct and Tracey S. Chernay, dated July 29, 2005.                                                                                                                                                                                                       | (14) |
| 10.9(x)  | Amendment to Employment Agreement, effective January 1, 2008, by and between TransAct and Bart C. Shuldman.                                                                                                                                                                                   | (15) |
| 10.10(x) | Amendment to Severance Agreement by and between TransAct and Steven A. DeMartino, effective January 1, 2008.                                                                                                                                                                                  | (15) |
| 10.11(x) | Amendment to Severance Agreement by and between TransAct and Tracey S. Chernay, effective January 1, 2008.                                                                                                                                                                                    | (15) |
| 10.12    | Lease Agreement by and between Bomax Properties and Ithaca, dated as of March 23, 1992.                                                                                                                                                                                                       | (2)  |
| 10.13    | Second Amendment to Lease Agreement by and between Bomax Properties and Ithaca, dated December 2, 1996.                                                                                                                                                                                       | (5)  |
| 10.14    | Agreement regarding the Continuation and Renewal of Lease by and between Bomax Properties, LLC and TransAct, dated July 18, 2001.                                                                                                                                                             | (9)  |
| 10.15    | Amendment No. 1 to Lease Agreement between Bomax Properties, LLC and TransAct.                                                                                                                                                                                                                | (18) |
| 10.16    | Amendment No. 2 to Lease Agreement between Bomax Properties, LLC and TransAct, dated January 14, 2016.                                                                                                                                                                                        | (22) |
| 10.17    | Lease Agreement by and between Las Vegas Airport Properties LLC and TransAct dated December 2, 2004.                                                                                                                                                                                          | (10) |
| 10.18    | First Amendment to Lease Agreement by and between Las Vegas Airport Properties LLC and TransAct dated August 31, 2009.                                                                                                                                                                        | (16) |
| 10.19    | Second Amendment to Lease Agreement by and between The Realty Associates Fund IX LP and TransAct dated June 30, 2015.                                                                                                                                                                         | (21) |
| 10.20    | Lease Agreement by and between 2319 Hamden Center I, L.L.C. and TransAct dated November 27, 2006.                                                                                                                                                                                             | (12) |
| 10.21    | First Amendment to Lease by and between 2319 Hamden Center I, L.L.C. and TransAct dated January 3, 2017                                                                                                                                                                                       | (25) |
| 10.22    | OEM Purchase Agreement by and between IGT (f/k/a GTECH Corporation) and TransAct, dated May 29, 2015.  (Pursuant to Rule 24-b-2 under the Exchange Act, the Company has                  requested confidential treatment of portions of this exhibit deleted from the filed copy). | (21) |
| 10.23    | Amended and Restated Revolving Credit and Security Agreement between TransAct and TD Banknorth, N.A. dated November 28, 2006.                                                                                                                                                                 | (12) |
| 10.24    | First Amendment to Amended and Restated Revolving Credit and Security Agreement between TransAct and TD Banknorth, N.A. effective September 30, 2007.                                                                                                                                         | (13) |
| 10.25    | Second Amendment to Amended and Restated Revolving Credit and Security Agreement between TransAct and TD Bank, N.A. effective November 22, 2011.                                                                                                                                              | (17) |
| 10.26    | Third Amendment to Amended and Restated Revolving Credit and Security Agreement effective September 7, 2012.                                                                                                                                                                                  | (19) |
| 10.27    | Fourth Amendment to Amended and Restated Revolving Credit and Security Agreement effective November 26, 2014.                                                                                                                                                                                 | (20) |
| 10.28    | Fifth Amendment to Amended and Restated Revolving Credit and Security Agreement effective November 21, 2017.                                                                                                                                                                                  | (27) |
| 21.1     | Subsidiaries of the Company                                                                                                                                                                                                                                                                   | (1)  |
| 23.1     | Consent of PricewaterhouseCoopers LLP.                                                                                                                                                                                                                                                        | (28) |
| 31.1     | Rule 13a-14(a) Certification of Chief Executive Officer in accordance with Section 302 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                     | (28) |
| 31.2     | Rule 13a-14(a) Certification of Chief Financial Officer in accordance with Section 302 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                     | (28) |
| 32.1     | Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of                  2002.                                                                                                | (28) |
| 101.INS  | XBRL Instance Document.                                                                                                                                                                                                                                                                       | (1)  |
| 101.SCH  | XBRL Taxonomy Extension Schema Document.                                                                                                                                                                                                                                                      | (1)  |
| 101.CAL  | XBRL Taxonomy Extension Calculation Linkbase Document.                                                                                                                                                                                                                                        | (1)  |
| 101.DEF  | XBRL Taxonomy Extension Definition Linkbase Document.                                                                                                                                                                                                                                         | (1)  |
| 101.LAB  | XBRL Taxonomy Extension Label Linkbase Document.                                                                                                                                                                                                                                              | (1)  |
| 101.PRE  | XBRL Taxonomy Extension Presentation Linkbase Document.                                                                                                                                                                                                                                       | (1)  |

----

| (1) | These exhibits, which were previously filed with the Company’s Annual Report on Form 10-K (SEC File No. 000-21121) filed with the SEC on March 18, 2019, are incorporated                by reference. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | These exhibits, which were previously filed with the Company’s Registration Statement on Form S-1 (No. 333-06895), are incorporated by reference. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------|
| (3) | Incorporated by reference to Exhibit 3.1(b) of the Company’s Current Report on Form 8-K (SEC File No. 000-21121) filed with the SEC on May 19, 2014. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (4) | Incorporated by reference to Exhibit 10.1 of the Company’s Current Report on Form 8-K (SEC File No. 000-21121) filed with the SEC on May 19, 2014. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------|
| (5) | Incorporated by reference to Exhibit 10.27 of the Company’s Annual Report on Form 10-K (SEC File No. 000-21121) filed with the SEC on March 31, 1998. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (6) | Incorporated by reference to Exhibit C of the Company’s Current Report on Form 8-K (SEC File No. 000-21121) filed with the SEC on February 18 , 1999. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (7) | Incorporated by reference to Exhibit 3.2 of the Company’s Annual Report on Form 10-K (SEC File No. 000-21121) filed with the SEC on March 29, 1999. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------|
| (8) | Incorporated by reference to Exhibit 3.1(c) of the Company’s Quarterly Report on Form 10-Q (SEC File No. 000-21121) filed with the SEC on May 8, 2000. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (9) | Incorporated by reference to Exhibit 10.8 of the Company’s Annual Report on Form 10-K (SEC File No. 000-21121) filed with the SEC on March 29, 2002. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (10) | These exhibits, which were previously filed with the Company’s Annual Report on Form 10-K for the year ended December 31, 2004, are incorporated by reference (No.                000-21121). |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (11) | Incorporated by reference to Exhibit 99.1 of the Company’s Current Report on Form 8-K (SEC File No. 000-21121) filed with the SEC on June 1, 2005. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------|
| (12) | These exhibits, which were previously filed with the Company’s Annual Report on Form 10-K for the year ended December 31, 2006, are incorporated by reference (No.                000-21121). |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (13) | Incorporated by reference to Exhibit 10.20 of the Company’s Quarterly Report on Form 10-Q (SEC File No. 000-21121) filed with the SEC on November 9, 2007. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (14) | Incorporated by reference to Exhibit 10.9 of the Company’s Annual Report on Form 10-K (SEC File No. 000-21121) filed with the SEC on March 14, 2009. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (15) | This exhibit, which was previously filed with the Company’s Annual Report on Form 10-K for the year ended December 31, 2008, is incorporated by reference (No. 000-21121). |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (16) | Incorporated by reference to Exhibit 10.19 of the Company’s Annual Report on Form 10-K (SEC File No. 000-21121) filed with the SEC on March 16, 2010. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (17) | Incorporated by reference to Exhibit 10.25 of the Company’s Annual Report on Form 10-K (SEC File No. 000-21121) filed with the SEC on March 12, 2012. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (18) | Incorporated by reference to Exhibit 10.16 of the Company’s Quarterly Report on Form 10-Q (SEC File No. 000-21121) filed with the SEC on May 10, 2012. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (19) | Incorporated by reference to Exhibit 10.26 of the Company’s Current Report on Form 8-K (SEC File No. 000-21121) filed with the SEC on September 11, 2012. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (20) | Incorporated by reference to Exhibit 99.1 of the Company’s Current Report on Form 8-K (SEC File No. 000-21121) filed with the SEC on December 1, 2014. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (21) | This exhibit, which was previously filed with the Company’s Quarterly Report on Form 10-Q for the period ended June 30, 2015, is incorporated by reference |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (22) | Incorporated by reference to Exhibit 10.13 of the Company's Annual Report on Form 10-K (SEC File No. 000-21121) filed with the SEC on March 11, 2016. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------|
| (23) | Incorporated by reference to Exhibit 10.2 of the Company's Quarterly Report on Form 10-Q (SEC File No. 000-21121) filed with the SEC on May 6, 2016. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------|
| (24) | Incorporated by reference to Exhibit 10.1 of the Company's Quarterly Report on Form 10-Q (SEC File No. 000-211121) filed with the SEC on August 8, 2016. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------|
| (25) | Incorporated by reference to Exhibit 10.20 of the Company's Annual Report on Form 10-K (SEC File No. 000-21121). |
|------|------------------------------------------------------------------------------------------------------------------|
| (26) | Incorporated by reference to Exhibit 10.1 of the Company’s Quarterly Report on Form 10-Q (SEC File No. 000-21121) filed with the SEC on August 9, 2017. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (27) | Incorporated by reference to Exhibit 99.1 to the Company’s Current Report on Form 8-K (SEC File No. 000-21121) filed with the SEC on November 22, 2017. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (28) | Filed herewith. |
|------|-----------------|
| (x) | Management contract or compensatory plan or arrangement. |
|-----|----------------------------------------------------------|

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| Exhibit |                                                                                                                                                                                       |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 23.1    | Consent of PricewaterhouseCoopers LLP.                                                                                                                                                     |
| 31.1    | Rule 13a-14(a) Certification of Chief Executive Officer in accordance with Section 302 of the Sarbanes-Oxley Act of 2002.                                                                  |
| 31.2    | Rule 13a-14(a) Certification of Chief Financial Officer in accordance with Section 302 of the Sarbanes-Oxley Act of 2002.                                                                  |
| 32.1    | Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of              2002. |

----

|   | TRANSACT TECHNOLOGIES INCORPORATED |
|--------|------------------------------------|
|   |                               |   |
|   | By:                                | /s/ Steven A. DeMartino |
|   | Name:                              | Steven A. DeMartino |
|   | Title:                             | President, Chief Financial Officer, Treasurer and  Secretary |

----

| Financial Statements                                                                                            |   |
|-----------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                            |   |
| Report of Independent Registered Public Accounting Firm                                                         | F-2    |
| Consolidated Balance Sheets as of December 31, 2018 and 2017                                                    | F-3    |
| Consolidated Statements of Income for the years ended December 31, 2018, 2017, and 2016                         | F-4    |
| Consolidated Statements of Comprehensive Income for the years ended December 31, 2018, 2017 and 2016            | F-5    |
| Consolidated Statements of Changes in Shareholders' Equity for the years ended December 31, 2018, 2017 and 2016 | F-6    |
| Consolidated Statements of Cash Flows for the years ended December 31, 2018, 2017 and 2016                      | F-7    |
| Notes to Consolidated Financial Statements                                                                      | F-8    |

----

March 18, 2019, except with respect to our opinion on internal control over financial reporting insofar as it relates to the effects of the matter described in the second            paragraph of Management’s Annual Report on Internal Control Over Financial Reporting, as to which the date is November 21, 2019

----

|                                                                                                                                                                                                                                |   | December 31,2018 |    |   | December 31,2017 |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------|---------|--------|------------------|--------|
| Assets:                                                                                                                                                                                                                             |   |             |    |   |             |   |
| Current assets:                                                                                                                                                                                                                     |   |             |    |   |             |   |
| Cash and cash equivalents                                                                                                                                                                                                           |   | $                | 4,691   |   |             | $      | 5,507 |   |
| Accounts receivable, net                                                                                                                                                                                                            |   |             | 8,025   |   |             |   | 10,948 |   |
| Inventories, net                                                                                                                                                                                                                    |   |             | 12,835  |   |             |   | 8,875 |   |
| Prepaid income taxes                                                                                                                                                                                                                |   |             | 809     |   |             |   | 514 |   |
| Other current assets                                                                                                                                                                                                                |   |             | 677     |   |             |   | 517 |   |
| Total current assets                                                                                                                                                                                                                |   |             | 27,037  |   |             |   | 26,361 |   |
|                                                                                                                                                                                                                                |   |             |    |   |             |   |   |   |
| Fixed assets, net                                                                                                                                                                                                                   |   |             | 2,272   |   |             |   | 2,169 |   |
| Goodwill                                                                                                                                                                                                                            |   |             | 2,621   |   |             |   | 2,621 |   |
| Deferred tax assets                                                                                                                                                                                                                 |   |             | 2,198   |   |             |   | 2,308 |   |
| Intangible assets, net                                                                                                                                                                                                              |   |             | 797     |   |             |   | 458 |   |
| Other assets                                                                                                                                                                                                                        |   |             | 31      |   |             |   | 33 |   |
|                                                                                                                                                                                                                                |   |             | 7,919   |   |             |   | 7,589 |   |
| Total assets                                                                                                                                                                                                                        |   |             | 34,956  |   |             |   | 33,950 |   |
|                                                                                                                                                                                                                                |   |             |    |   |             |   |   |   |
| Liabilities and Shareholders’ Equity:                                                                                                                                                                                         |   |             |    |   |             |   |   |   |
| Current liabilities:                                                                                                                                                                                                                |   |             |    |   |             |   |   |   |
| Accounts payable                                                                                                                                                                                                                    |   | $                | 3,483   |   |             | $      | 3,841 |   |
| Accrued liabilities                                                                                                                                                                                                                 |   |             | 2,765   |   |             |   | 3,339 |   |
| Deferred revenue                                                                                                                                                                                                                    |   |             | 384     |   |             |   | 169 |   |
| Total current liabilities                                                                                                                                                                                                           |   |             | 6,632   |   |             |   | 7,349 |   |
|                                                                                                                                                                                                                                |   |             |    |   |             |   |   |   |
| Deferred revenue, net of current portion                                                                                                                                                                                            |   |             | 265     |   |             |   | 69 |   |
| Deferred rent, net of current portion                                                                                                                                                                                               |   |             | 250     |   |             |   | 271 |   |
| Other liabilities                                                                                                                                                                                                                   |   |             | 242     |   |             |   | 247 |   |
|                                                                                                                                                                                                                                |   |             | 757     |   |             |   | 587 |   |
| Total liabilities                                                                                                                                                                                                                   |   |             | 7,389   |   |             |   | 7,936 |   |
| Commitments and contingencies (Note 9)                                                                                                                                                                                              |   |             |    |   |             |   |   |   |
| Shareholders’ equity:                                                                                                                                                                                                         |   |             |    |   |             |   |   |   |
| Preferred stock, $0.01 value, 4,800,000 authorized, none issued and outstanding                                                                                                                                                     |   |             | – |   |             |   | – |   |
| Preferred stock, Series A, $0.01 par value, 200,000 authorized, none issued and outstanding                                                                                                                                         |   |             | – |   |             |   | – |   |
| Common stock, $0.01 par value, 20,000,000 authorized at December 31, 2018 and 2017; 11,463,141 and 11,366,526 shares issued; 7,418,299 and 7,478,094                shares outstanding, at December 31, 2018 and 2017, respectively |   |             | 115     |   |             |   | 114 |   |
| Additional paid-in capital                                                                                                                                                                                                          |   |             | 32,129  |   |             |   | 31,353 |   |
| Retained earnings                                                                                                                                                                                                                   |   |             | 27,515  |   |             |   | 24,756 |   |
| Accumulated other comprehensive loss, net of tax                                                                                                                                                                                    |   |             | (82     | )      |             |   | (99 | ) |
| Treasury stock, 4,044,842 and 3,888,432 shares, at cost                                                                                                                                                                             |   |             | (32,110 | )      |             |   | (30,110 | ) |
| Total shareholders’ equity                                                                                                                                                                                                    |   |             | 27,567  |   |             |   | 26,014 |   |
| Total liabilities and shareholders’ equity                                                                                                                                                                                    |   | $                | 34,956  |   |             | $      | 33,950 |   |

----

|                                          |   | Year Ended December 31, |    |
|-----------------------------------------------|--------|-------------------------|---------|
|                                          |   | 2018                    |    |   | 2017 |   |   | 2016 |   |
|                                          |   |                    |    |   |   |   |   |   |   |
| Net sales                                     |   | $                       | 54,587  |   |   | $ | 56,311 |   |   | $ | 57,235 |   |
| Cost of sales                                 |   |                    | 27,844  |   |   |   | 29,649 |   |   |   | 33,436 |   |
|                                          |   |                    |    |   |   |   |   |   |   |   |   |   |
| Gross profit                                  |   |                    | 26,743  |   |   |   | 26,662 |   |   |   | 23,799 |   |
|                                          |   |                    |    |   |   |   |   |   |   |   |   |   |
| Operating expenses:                           |   |                    |    |   |   |   |   |   |   |   |   |   |
| Engineering, design and product development   |   |                    | 4,576   |   |   |   | 4,303 |   |   |   | 4,425 |   |
| Selling and marketing                         |   |                    | 7,203   |   |   |   | 7,561 |   |   |   | 6,907 |   |
| General and administrative                    |   |                    | 8,205   |   |   |   | 7,984 |   |   |   | 7,267 |   |
|                                          |   |                    | 19,984  |   |   |   | 19,848 |   |   |   | 18,599 |   |
|                                          |   |                    |    |   |   |   |   |   |   |   |   |   |
| Operating income                              |   |                    | 6,759   |   |   |   | 6,814 |   |   |   | 5,200 |   |
| Interest and other income (expense):          |   |                    |    |   |   |   |   |   |   |   |   |   |
| Interest expense                              |   |                    | (27     | ) |   |   | (33 | ) |   |   | (33 | ) |
| Interest income                               |   |                    | – |   |   |   | – |   |   |   | 7 |   |
| Other, net                                    |   |                    | (266    | ) |   |   | (9 | ) |   |   | (4 | ) |
|                                          |   |                    | (293    | ) |   |   | (42 | ) |   |   | (30 | ) |
|                                          |   |                    |    |   |   |   |   |   |   |   |   |   |
| Income before income taxes                    |   |                    | 6,466   |   |   |   | 6,772 |   |   |   | 5,170 |   |
| Income tax provision                          |   |                    | 1,040   |   |   |   | 3,561 |   |   |   | 1,553 |   |
| Net income                                    |   | $                       | 5,426   |   |   | $ | 3,211 |   |   | $ | 3,617 |   |
|                                          |   |                    |    |   |   |   |   |   |   |   |   |   |
| Net income  per common share:            |   |                    |    |   |   |   |   |   |   |   |   |   |
| Basic                                         |   | $                       | 0.73    |   |   | $ | 0.43 |   |   | $ | 0.48 |   |
| Diluted                                       |   | $                       | 0.70    |   |   | $ | 0.42 |   |   | $ | 0.47 |   |
|                                          |   |                    |    |   |   |   |   |   |   |   |   |   |
| Shares used in per-share calculation:         |   |                    |    |   |   |   |   |   |   |   |   |   |
| Basic                                         |   |                    | 7,444   |   |   |   | 7,423 |   |   |   | 7,610 |   |
| Diluted                                       |   |                    | 7,759   |   |   |   | 7,592 |   |   |   | 7,655 |   |
|                                          |   |                    |    |   |   |   |   |   |   |   |   |   |
| Dividends declared and paid per common share: |   | $                       | 0.36    |   |   | $ | 0.35 |   |   | $ | 0.32 |   |

----

|                                                |   | Year Ended December 31, |   |
|-----------------------------------------------------|--------|-------------------------|--------|
|                                                |   | 2018                    |   |   | 2017 |   |   | 2016 |   |
|                                                |   |                    |   |   |   |   |   |   |   |
| Net income                                          |   | $                       | 5,426  |   |   | $ | 3,211 |   |   | $ | 3,617 |   |
| Foreign currency translation adjustment, net of tax |   |                    | 17     |   |   |   | 10 |   |   |   | (29 | ) |
|                                                |   |                    |   |   |   |   |   |   |   |   |   |   |
| Comprehensive income                                |   | $                       | 5,443  |   |   | $ | 3,221 |   |   | $ | 3,588 |   |

----

|                                                                             |   | Common Stock |      |   | AdditionalPaid-in |   |    | Retained |   |   | Treasury |   |   | AccumulatedOtherComprehensive |    |   | Total         |   |
|----------------------------------------------------------------------------------|--------|--------------|-----------|--------|-------------------|--------|---------|----------|--------|--------|----------|--------|--------|-------------------------------|---------|--------|---------------|--------|
|                                                                             |   | Shares       |      |   | Amount            |   |    | Capital  |   |   | Earnings |   |   | Stock                         |    |   | Income (Loss) |   |   | Equity |   |
| Balance, December 31, 2015                                                       |   |         | 7,782,292 |   |              | $      | 112     |     |   | $      | 28,921   |   |   | $                             | 22,956  |   |          | $      | (26,181 | ) |   | $ | (80 | ) |   | $ | 25,728 |   |
| Issuance of shares from exercise of stock options                                |   |         | 3,750     |   |              |   | – |     |   |   | 23       |   |   |                          | – |   |          |   | – |   |   |   | – |   |   |   | 23 |   |
| Issuance of deferred stock units                                                 |   |         | –   |   |              |   | – |     |   |   | 202      |   |   |                          | – |   |          |   | – |   |   |   | – |   |   |   | 202 |   |
| Issuance of common stock on deferred stock units, net of relinquishments         |   |         | 10,700    |   |              |   | – |     |   |   | (51      | )      |   |                          | – |   |          |   | – |   |   |   | – |   |   |   | (51 | ) |
| Tax shortfall related to employee stock sales                                    |   |         | –   |   |              |   | – |     |   |   | 1        |   |   |                          | – |   |          |   | – |   |   |   | – |   |   |   | 1 |   |
| Purchase of treasury stock                                                       |   |         | (463,378  | )      |              |   | – |     |   |   | –  |   |   |                          | – |   |          |   | (3,571 | ) |   |   | – |   |   |   | (3,571 | ) |
| Dividends declared and paid on common stock                                      |   |         | –   |   |              |   | – |     |   |   | –  |   |   |                          | (2,416  | )      |          |   | – |   |   |   | – |   |   |   | (2,416 | ) |
| Share-based compensation expense                                                 |   |         | –   |   |              |   | – |     |   |   | 611      |   |   |                          | – |   |          |   | – |   |   |   | – |   |   |   | 611 |   |
| Reversal of deferred tax asset in connection with stock options forfeited        |   |         | –   |   |              |   | – |     |   |   | (6       | )      |   |                          | – |   |          |   | – |   |   |   | – |   |   |   | (6 | ) |
| Foreign currency translation adjustment, net of tax                              |   |         | –   |   |              |   | – |     |   |   | –  |   |   |                          | – |   |          |   | – |   |   |   | (29 | ) |   |   | (29 | ) |
| Net income                                                                       |   |         | –   |   |              |   | – |     |   |   | –  |   |   |                          | 3,617   |   |          |   | – |   |   |   | – |   |   |   | 3,617 |   |
| Balance, December 31, 2016                                                       |   |         | 7,333,364 |   |              | $      | 112     |     |   | $      | 29,701   |   |   | $                             | 24,157  |   |          | $      | (29,752 | ) |   | $ | (109 | ) |   | $ | 24,109 |   |
| Issuance of shares from exercise of stock options                                |   |         | 166,600   |   |              |   | 2       |     |   |   | 1,041    |   |   |                          | – |   |          |   | – |   |   |   | – |   |   |   | 1,043 |   |
| Issuance of common stock on restricted stock units                               |   |         | 8,300     |   |              |   | – |     |   |   | –  |   |   |                          | – |   |          |   | – |   |   |   | – |   |   |   | – |   |
| Issuance of common stock on deferred stock units                                 |   |         | 8,663     |   |              |   | – |     |   |   | –  |   |   |                          | – |   |          |   | – |   |   |   | – |   |   |   | – |   |
| Relinquishment of stock awards and deferred stock units to pay withholding taxes |   |         | (2,368    | )      |              |   | – |     |   |   | (29      | )      |   |                          | – |   |          |   | – |   |   |   | – |   |   |   | (29 | ) |
| Purchase of treasury stock                                                       |   |         | (36,465   | )      |              |   | – |     |   |   | –  |   |   |                          | – |   |          |   | (358 | ) |   |   | – |   |   |   | (358 | ) |
| Dividends declared and paid on common stock                                      |   |         | –   |   |              |   | – |     |   |   | –  |   |   |                          | (2,581  | )      |          |   | – |   |   |   | – |   |   |   | (2,581 | ) |
| Share-based compensation expense                                                 |   |         | –   |   |              |   | – |     |   |   | 609      |   |   |                          | – |   |          |   | – |   |   |   | – |   |   |   | 609 |   |
| Adjustment upon adoption of ASU 2016-09                                          |   |         | –   |   |              |   | – |     |   |   | 31       |   |   |                          | (31     | )      |          |   | – |   |   |   | – |   |   |   | – |   |
| Foreign currency translation adjustment, net of tax                              |   |         | –   |   |              |   | – |     |   |   | –  |   |   |                          | – |   |          |   | – |   |   |   | 10 |   |   |   | 10 |   |
| Net income                                                                       |   |         | –   |   |              |   | – |     |   |   | –  |   |   |                          | 3,211   |   |          |   | – |   |   |   | – |   |   |   | 3,211 |   |
| Balance, December 31, 2017                                                       |   |         | 7,478,094 |   |              | $      | 114     |     |   | $      | 31,353   |   |   | $                             | 24,756  |   |          | $      | (30,110 | ) |   | $ | (99 | ) |   | $ | 26,014 |   |
| Issuance of shares from exercise of stock options                                |   |         | 58,146    |   |              |   | 1       |     |   |   | 415      |   |   |                          | – |   |          |   | – |   |   |   | – |   |   |   | 416 |   |
| Issuance of common stock on restricted stock units                               |   |         | 33,935    |   |              |   | – |     |   |   | –  |   |   |                          | – |   |          |   | – |   |   |   | – |   |   |   | – |   |
| Issuance of common stock on deferred stock units                                 |   |         | 23,578    |   |              |   | – |     |   |   | –  |   |   |                          | – |   |          |   | – |   |   |   | – |   |   |   | – |   |
| Relinquishment of stock awards and deferred stock units to pay withholding taxes |   |         | (19,044   | )      |              |   | – |     |   |   | (268     | )      |   |                          | – |   |          |   | – |   |   |   | – |   |   |   | (268 | ) |
| Purchase of treasury stock                                                       |   |         | (156,410  | )      |              |   | – |     |   |   | –  |   |   |                          | – |   |          |   | (2,000 | ) |   |   | – |   |   |   | (2,000 | ) |
| Dividends declared and paid on common stock                                      |   |         | –   |   |              |   | – |     |   |   | –  |   |   |                          | (2,667  | )      |          |   | – |   |   |   | – |   |   |   | (2,667 | ) |
| Share-based compensation expense                                                 |   |         | –   |   |              |   | – |     |   |   | 629      |   |   |                          | – |   |          |   | – |   |   |   | – |   |   |   | 629 |   |
| Foreign currency translation adjustment, net of tax                              |   |         | –   |   |              |   | – |     |   |   | –  |   |   |                          | – |   |          |   | – |   |   |   | 17 |   |   |   | 17 |   |
| Net income                                                                       |   |         | –   |   |              |   | – |     |   |   | –  |   |   |                          | 5,426   |   |          |   | – |   |   |   | – |   |   |   | 5,426 |   |
| Balance, December 31, 2018                                                       |   |         | 7,418,299 |   |              | $      | 115     |     |   | $      | 32,129   |   |   | $                             | 27,515  |   |          | $      | (32,110 | ) |   | $ | (82 | ) |   | $ | 27,567 |   |

----

|                                                                              |   | Year Ended December 31, |    |
|-----------------------------------------------------------------------------------|--------|-------------------------|---------|
|                                                                              |   | 2018                    |    |   | 2017 |   |   | 2016 |   |
| Cash flows from operating activities:                                             |   |                    |    |   |   |   |   |   |   |
| Net income                                                                        |   | $                       | 5,426   |   |   | $ | 3,211 |   |   | $ | 3,617 |   |
| Adjustments to reconcile net income to net cash provided by operating activities: |   |                    |    |   |   |   |   |   |   |   |   |   |
| Share-based compensation expense                                                  |   |                    | 629     |   |   |   | 609 |   |   |   | 611 |   |
| Depreciation and amortization                                                     |   |                    | 997     |   |   |   | 1,081 |   |   |   | 1,331 |   |
| Deferred income tax (benefit) provision                                           |   |                    | (107    | ) |   |   | 1,117 |   |   |   | (295 | ) |
| Provision for doubtful accounts                                                   |   |                    | 105     |   |   |   | 50 |   |   |   | – |   |
| Gain on sale of fixed assets                                                      |   |                    | – |   |   |   | – |   |   |   | (5 | ) |
| Foreign currency transaction losses                                               |   |                    | 199     |   |   |   | 11 |   |   |   | 4 |   |
| Changes in operating assets and liabilities:                                      |   |                    |    |   |   |   |   |   |   |   |   |   |
| Accounts receivable                                                               |   |                    | 2,688   |   |   |   | (405 | ) |   |   | (3,434 | ) |
| Inventories                                                                       |   |                    | (4,049  | ) |   |   | 834 |   |   |   | 1,580 |   |
| Prepaid income taxes                                                              |   |                    | (100    | ) |   |   | (518 | ) |   |   | (5 | ) |
| Other current and long term assets                                                |   |                    | (161    | ) |   |   | (137 | ) |   |   | 53 |   |
| Accounts payable                                                                  |   |                    | (332    | ) |   |   | (988 | ) |   |   | 2,255 |   |
| Accrued liabilities and other liabilities                                         |   |                    | (186    | ) |   |   | 1,053 |   |   |   | (1,088 | ) |
| Net cash provided by operating activities                                         |   |                    | 5,109   |   |   |   | 5,918 |   |   |   | 4,624 |   |
|                                                                              |   |                    |    |   |   |   |   |   |   |   |   |   |
| Cash flows from investing activities:                                             |   |                    |    |   |   |   |   |   |   |   |   |   |
| Capital expenditures                                                              |   |                    | (1,007  | ) |   |   | (835 | ) |   |   | (608 | ) |
| Additions to capitalized software                                                 |   |                    | (466    | ) |   |   | (150 | ) |   |   | – |   |
| Proceeds from sale of fixed assets                                                |   |                    | – |   |   |   | – |   |   |   | 8 |   |
| Net cash used in investing activities                                             |   |                    | (1,473  | ) |   |   | (985 | ) |   |   | (600 | ) |
|                                                                              |   |                    |    |   |   |   |   |   |   |   |   |   |
| Cash flows from financing activities:                                             |   |                    |    |   |   |   |   |   |   |   |   |   |
| Proceeds from stock option exercises                                              |   |                    | 416     |   |   |   | 1,043 |   |   |   | 23 |   |
| Purchases of common stock for treasury                                            |   |                    | (2,000  | ) |   |   | (358 | ) |   |   | (3,571 | ) |
| Payment of dividends on common stock                                              |   |                    | (2,667  | ) |   |   | (2,581 | ) |   |   | (2,416 | ) |
| Withholding taxes paid on stock issuances                                         |   |                    | (265    | ) |   |   | (23 | ) |   |   | – |   |
| Net cash used in financing activities                                             |   |                    | (4,516  | ) |   |   | (1,919 | ) |   |   | (5,964 | ) |
|                                                                              |   |                    |    |   |   |   |   |   |   |   |   |   |
| Effect of exchange rate changes on cash and cash equivalents                      |   |                    | 64      |   |   |   | (10 | ) |   |   | (30 | ) |
|                                                                              |   |                    |    |   |   |   |   |   |   |   |   |   |
| Increase (decrease) in cash and cash equivalents                                  |   |                    | (816    | ) |   |   | 3,004 |   |   |   | (1,970 | ) |
| Cash and cash equivalents, beginning of period                                    |   |                    | 5,507   |   |   |   | 2,503 |   |   |   | 4,473 |   |
| Cash and cash equivalents, end of period                                          |   | $                       | 4,691   |   |   | $ | 5,507 |   |   | $ | 2,503 |   |
|                                                                              |   |                    |    |   |   |   |   |   |   |   |   |   |
| Supplemental cash flow information:                                               |   |                    |    |   |   |   |   |   |   |   |   |   |
| Interest paid                                                                     |   | $                       | 25      |   |   | $ | 30 |   |   | $ | 31 |   |
| Income taxes paid                                                                 |   |                    | 1,249   |   |   |   | 2,991 |   |   |   | 2,065 |   |
| Non-cash capital expenditure items                                                |   |                    | 21      |   |   |   | 44 |   |   |   | 113 |   |

----

|                                    |   | Year Ended December 31, |   |
|-----------------------------------------|--------|-------------------------|--------|
| (In thousands)                          |   | 2018                    |   |   | 2017 |   |   | 2016 |   |
| Balance, beginning of period            |   | $                       | 100    |   |   | $ | 50 |   |   | $ | 50 |   |
| Additions charged to costs and expenses |   |                    | 105    |   |   |   | 50 |   |   |   | – |   |
| Balance, end of period                  |   | $                       | 205    |   |   | $ | 100 |   |   | $ | 50 |   |

----

----

|                       |   | Year EndedDecember 31, 2018 |   |
|----------------------------|--------|-----------------------------|--------|
|                       |   | United States               |   |   | International |   |   | Total |   |
|                       |   | (In thousands)              |   |
| Restaurant solutions       |   | $                           | 4,133  |   |   | $ | 446 |   |   | $ | 4,579 |   |
| POS Automation and Banking |   |                        | 7,122  |   |   |   | 151 |   |   |   | 7,273 |   |
| Casino and Gaming          |   |                        | 17,518 |   |   |   | 9,075 |   |   |   | 26,593 |   |
| Lottery                    |   |                        | 3,046  |   |   |   | 47 |   |   |   | 3,093 |   |
| Printrex                   |   |                        | 1,028  |   |   |   | 269 |   |   |   | 1,297 |   |
| TransAct Services Group    |   |                        | 10,671 |   |   |   | 1,081 |   |   |   | 11,752 |   |
| Total net sales            |   | $                           | 43,518 |   |   | $ | 11,069 |   |   | $ | 54,587 |   |
|                          |   | December 31, 2018 |   |   | January 1, 2018 |   |
|-------------------------------|--------|-------------------|--------|--------|-----------------|--------|
|                          |   | (In thousands)    |   |
| Customer pre-payments         |   | $                 | 50     |   |            | $      | 79 |   |
| Deferred revenue, current     |   |              | 384    |   |            |   | 169 |   |
| Deferred revenue, non-current |   |              | 265    |   |            |   | 69 |   |
| Total contract liabilities    |   | $                 | 699    |   |            | $      | 317 |   |

----

|                                    |   | December 31, |   |
|-----------------------------------------|--------|--------------|--------|
|                                    |   | 2018         |   |   | 2017 |   |
| International Gaming Technology ("IGT") |   |         | 21     | % |   |   | 48 | % |
| Suzo-Happ                               |   |         | 0      | % |   |   | 13 | % |
|      |   | Year Ended December 31, |   |
|-----------|--------|-------------------------|--------|
|      |   | 2018                    |   |   | 2017 |   |   | 2016 |   |
| IGT       |   |                    | 18     | % |   |   | 35 | % |   |   | 26 | % |
| Suzo-Happ |   |                    | 1      | % |   |   | 8 | % |   |   | 15 | % |
|                         |   | Year Ended December 31, |   |
|------------------------------|--------|-------------------------|--------|
| (In thousands)               |   | 2018                    |   |   | 2017 |   |   | 2016 |   |
| Balance, beginning of period |   | $                       | 267    |   |   | $ | 267 |   |   | $ | 277 |   |
| Warranties issued            |   |                    | 269    |   |   |   | 259 |   |   |   | 254 |   |
| Warranty settlements         |   |                    | (263   | ) |   |   | (259 | ) |   |   | (264 | ) |
| Balance, end of period       |   | $                       | 273    |   |   | $ | 267 |   |   | $ | 267 |   |

----

|                                        |   | December 31, |   |
|---------------------------------------------|--------|--------------|--------|
| (In thousands)                              |   | 2018         |   |   | 2017 |   |
| Raw materials and purchased component parts |   | $            | 6,593  |   |   | $ | 6,322 |   |
| Work-in-process                             |   |         | 29     |   |   |   | – |   |
| Finished goods                              |   |         | 6,213  |   |   |   | 2,553 |   |
|                                        |   | $            | 12,835 |   |   | $ | 8,875 |   |
|                                            |   | December 31, |    |
|-------------------------------------------------|--------|--------------|---------|
| (In thousands)                                  |   | 2018         |    |   | 2017 |   |
| Tooling, machinery and equipment                |   | $            | 11,177  |   |   | $ | 11,019 |   |
| Furniture and office equipment                  |   |         | 1,690   |   |   |   | 1,651 |   |
| Computer software and equipment                 |   |         | 6,930   |   |   |   | 6,503 |   |
| Leasehold improvements                          |   |         | 2,666   |   |   |   | 2,475 |   |
|                                            |   |         | 22,463  |   |   |   | 21,648 |   |
| Less: Accumulated depreciation and amortization |   |         | (20,518 | ) |   |   | (19,752 | ) |
|                                            |   |         | 1,945   |   |   |   | 1,896 |   |
| Construction in-process                         |   |         | 327     |   |   |   | 273 |   |
|                                            |   | $            | 2,272   |   |   | $ | 2,169 |   |

----

|                    |   | December 31, |   |
|-------------------------|--------|--------------|--------|
|                    |   | 2018         |   |   | 2017 |   |
|  (In thousands)    |   | Gross Amount |   |   | Accumulated Amortization |   |   | Gross Amount |   |   | Accumulated Amortization |   |
| Purchased technology    |   | $            | 2,221  |   |   | $ | (1,558 | ) |   | $ | 1,754 |   |   | $ | (1,481 | ) |
| Customer relationships  |   |         | 1,300  |   |   |   | (1,300 | ) |   |   | 1,300 |   |   |   | (1,300 | ) |
| Trademark               |   |         | 480    |   |   |   | (354 | ) |   |   | 480 |   |   |   | (306 | ) |
| Covenant not to compete |   |         | 146    |   |   |   | (146 | ) |   |   | 146 |   |   |   | (146 | ) |
| Patents                 |   |         | 57     |   |   |   | (49 | ) |   |   | 57 |   |   |   | (46 | ) |
| Other                   |   |         | 80     |   |   |   | (80 | ) |   |   | 80 |   |   |   | (80 | ) |
| Total                   |   | $            | 4,284  |   |   | $ | (3,487 | ) |   | $ | 3,817 |   |   | $ | (3,359 | ) |
|                              |   | December 31, |   |
|-----------------------------------|--------|--------------|--------|
| (In thousands)                    |   | 2018         |   |   | 2017 |   |
| Salaries and compensation related |   | $            | 1,817  |   |   | $ | 2,288 |   |
| Warranty                          |   |         | 192    |   |   |   | 186 |   |
| Professional and consulting       |   |         | 231    |   |   |   | 209 |   |
| Other                             |   |         | 525    |   |   |   | 656 |   |
|                              |   | $            | 2,765  |   |   | $ | 3,339 |   |

----

|                            |   | Year Ended December 31, |   |
|---------------------------------|--------|-------------------------|--------|
|                            |   | 2018                    |   |   | 2017 |   |   | 2016 |   |
| Expected option term (in years) |   |                    | 6.8    |   |   |   | 6.8 |   |   |   | 6.9 |   |
| Expected volatility             |   |                    | 38.0   | % |   |   | 36.2 | % |   |   | 38.8 | % |
| Risk-free interest rate         |   |                    | 2.7    | % |   |   | 2.1 | % |   |   | 1.2 | % |
| Dividend yield                  |   |                    | 2.6    | % |   |   | 4.3 | % |   |   | 4.5 | % |
|                             |   | Stock Options    |      |   | Restricted Share Units |   |
|----------------------------------|--------|------------------|-----------|--------|------------------------|--------|
|                             |   | Number of Shares |      |   | Average Price*         |   |   | Number of Units |   |   | Average Price** |   |
| Outstanding at December 31, 2017 |   |             | 919,639   |   |                   | $      | 8.13 |   |   |   | 101,275 |   |   | $ | 8.21 |   |
| Granted                          |   |             | 147,300   |   |                   |   | 13.65 |   |   |   | 37,400 |   |   |   | 13.69 |   |
| Exercised                        |   |             | (58,146   | )      |                   |   | 7.16 |   |   |   | (33,935 | ) |   |   | 8.31 |   |
| Forfeited                        |   |             | (2,000    | )      |                   |   | 7.63 |   |   |   | (6,140 | ) |   |   | 8.64 |   |
| Expired                          |   |             | (2,500    | )      |                   |   | 5.24 |   |   |   | – |   |   |   | – |   |
| Outstanding at December 31, 2018 |   |             | 1,004,293 |   |                   | $      | 9.00 |   |   |   | 98,600 |   |   | $ | 9.82 |   |

| * | weighted average exercise price per share |
|---|-------------------------------------------|

| ** | weighted-average grant stock price per share |
|----|----------------------------------------------|

----

|                   |   | Equity Awards Vested and Expected to Vest |      |   | Equity Awards That Are Exercisable |   |
|------------------------|--------|-------------------------------------------|-----------|--------|------------------------------------|--------|
|                   |   | Awards                                    |      |   | Average Price*                     |   |   | Aggregate Intrinsic Value |   |   | Remaining Term** |   |   | Awards |   |   | Average Price* |   |   | Aggregate Intrinsic Value |   |   | Remaining Term** |   |
| Stock Options          |   |                                      | 1,004,293 |   |                               | $      | 9.00 |   |   | $ | 1,051 |   |   |   | 6.1 |   |   |   | 562,252 |   |   | $ | 8.38 |   |   | $ | 656 |   |   |   | 4.7 |   |
| Restricted stock units |   |                                      | 82,692    |   |                               |   | – |   |   |   | 743 |   |   |   | 1.9 |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |

| * | weighted average exercise price per share |
|---|-------------------------------------------|

| ** | weighted-average contractual remaining term in years |
|----|------------------------------------------------------|

|                 |   | Year Ended December 31, |    |
|----------------------|--------|-------------------------|---------|
| (In thousands)       |   | 2018                    |    |   | 2017 |   |   | 2016 |   |
| Current:             |   |                    |    |   |   |   |   |   |   |
| Federal              |   | $                       | 1,049   |   |   | $ | 2,379 |   |   | $ | 1,776 |   |
| State                |   |                    | 85      |   |   |   | 114 |   |   |   | 70 |   |
| Foreign              |   |                    | 13      |   |   |   | (49 | ) |   |   | 2 |   |
|                 |   |                    | 1,147   |   |   |   | 2,444 |   |   |   | 1,848 |   |
| Deferred:            |   |                    |    |   |   |   |   |   |   |   |   |   |
| Federal              |   |                    | (117    | ) |   |   | 1,097 |   |   |   | (257 | ) |
| State                |   |                    | 10      |   |   |   | 20 |   |   |   | (38 | ) |
| Foreign              |   |                    | – |   |   |   | – |   |   |   | – |   |
|                 |   |                    | (107    | ) |   |   | 1,117 |   |   |   | (295 | ) |
| Income tax provision |   | $                       | 1,040   |   |   | $ | 3,561 |   |   | $ | 1,553 |   |

----

|                           |   | December 31, |   |
|--------------------------------|--------|--------------|--------|
| (In thousands)                 |   | 2018         |   |   | 2017 |   |
| Deferred tax assets:           |   |         |   |   |   |   |
| Foreign net operating losses   |   | $            | 390    |   |   | $ | 328 |   |
| Depreciation                   |   |         | 71     |   |   |   | 107 |   |
| Inventory reserves             |   |         | 879    |   |   |   | 845 |   |
| Deferred revenue               |   |         | 16     |   |   |   | 16 |   |
| Warranty reserve               |   |         | 60     |   |   |   | 59 |   |
| Stock compensation expense     |   |         | 682    |   |   |   | 694 |   |
| Other accrued compensation     |   |         | 233    |   |   |   | 363 |   |
| Other liabilities and reserves |   |         | 278    |   |   |   | 246 |   |
| Gross deferred tax assets      |   |         | 2,609  |   |   |   | 2,658 |   |
| Valuation allowance            |   |         | (390   | ) |   |   | (328 | ) |
| Net deferred tax assets        |   |         | 2,219  |   |   |   | 2,330 |   |
|                           |   |         |   |   |   |   |   |   |
| Deferred tax liabilities:      |   |         |   |   |   |   |   |   |
| Other                          |   |         | 21     |   |   |   | 22 |   |
| Net deferred tax liabilities   |   |         | 21     |   |   |   | 22 |   |
| Total net deferred tax assets  |   | $            | 2,198  |   |   | $ | 2,308 |   |
|                                        |   | Year Ended December 31, |    |
|---------------------------------------------|--------|-------------------------|---------|
| (In thousands)                              |   | 2018                    |    |   | 2017 |   |   | 2016 |   |
| Balance, beginning of period                |   | $                       | 328     |   |   | $ | 423 |   |   | $ | 340 |   |
| Additions charged to income tax provision   |   |                    | 62      |   |   |   | 67 |   |   |   | 83 |   |
| Reductions credited to income tax provision |   |                    | – |   |   |   | (162 | ) |   |   | – |   |
| Balance, end of period                      |   | $                       | 390     |   |   | $ | 328 |   |   | $ | 423 |   |

----

|                                            |   | Year Ended December 31, |   |
|-------------------------------------------------|--------|-------------------------|--------|
|                                            |   | 2018                    |   |   | 2017 |   |   | 2016 |   |
|                                            |   |                    |   |   |   |   |   |   |   |
| Federal statutory tax rate                      |   |                    | 21.0   | % |   |   | 34.0 | % |   |   | 34.0 | % |
| State income taxes, net of federal income taxes |   |                    | 1.2    |   |   |   | 1.3 |   |   |   | 0.4 |   |
| Valuation allowance and tax accruals            |   |                    | 1.0    |   |   |   | 1.6 |   |   |   | 1.6 |   |
| Miscellaneous permanent items                   |   |                    | 0.07   |   |   |   | (0.5 | ) |   |   | (1.2 | ) |
| U.S. corporate tax rate change                  |   |                    | 0.0    |   |   |   | 19.4 |   |   |   | 0.0 |   |
| Stock option cancellations                      |   |                    | 0.0    |   |   |   | 1.7 |   |   |   | 0.0 |   |
| Uncertain tax positions                         |   |                    | 0.0    |   |   |   | (0.1 | ) |   |   | (0.1 | ) |
| Stock award excess tax benefit                  |   |                    | (1.5   | ) |   |   | (1.4 | ) |   |   | 0.0 |   |
| Foreign-derived intangible income deduction     |   |                    | (1.5   | ) |   |   | 0.0 |   |   |   | 0.0 |   |
| R&D credit                                  |   |                    | (4.9   | ) |   |   | (3.3 | ) |   |   | (4.6 | ) |
| Other                                           |   |                    | 0.1    |   |   |   | (0.1 | ) |   |   | (0.1 | ) |
| Effective tax rate                              |   |                    | 16.1   | % |   |   | 52.6 | % |   |   | 30.0 | % |
|                                          |   | December 31, |   |
|-----------------------------------------------|--------|--------------|--------|
| (In thousands)                                |   | 2018         |   |   | 2017 |   |
| Unrecognized tax benefits as of January 1     |   | $            | 104    |   |   | $ | 111 |   |
| Tax positions taken during the current period |   |         | 28     |   |   |   | 24 |   |
| Lapse of statute of limitations               |   |         | (28    | ) |   |   | (31 | ) |
| Unrecognized tax benefits as of December 31   |   | $            | 104    |   |   | $ | 104 |   |
|                                                                                                    |   | Year Ended December 31, |   |
|---------------------------------------------------------------------------------------------------------|--------|-------------------------|--------|
|                                                                                                    |   | 2018                    |   |   | 2017 |   |   | 2016 |   |
| Net income                                                                                              |   | $                       | 5,426  |   |   | $ | 3,211 |   |   | $ | 3,617 |   |
|                                                                                                    |   |                    |   |   |   |   |   |   |   |   |   |   |
| Shares:                                                                                                 |   |                    |   |   |   |   |   |   |   |   |   |   |
| Basic:  Weighted average common shares outstanding                                            |   |                    | 7,444  |   |   |   | 7,423 |   |   |   | 7,610 |   |
| Add:  Dilutive effect of outstanding equity awards as determined by the treasury stock method |   |                    | 315    |   |   |   | 169 |   |   |   | 45 |   |
| Diluted:  Weighted average common and common equivalent shares outstanding                    |   |                    | 7,759  |   |   |   | 7,592 |   |   |   | 7,655 |   |
|                                                                                                    |   |                    |   |   |   |   |   |   |   |   |   |   |
| Net income per common share:                                                                            |   |                    |   |   |   |   |   |   |   |   |   |   |
| Basic                                                                                                   |   | $                       | 0.73   |   |   | $ | 0.43 |   |   | $ | 0.48 |   |
| Diluted                                                                                                 |   |                    | 0.70   |   |   |   | 0.42 |   |   |   | 0.47 |   |

----

|               |   | Year Ended December 31, |   |
|--------------------|--------|-------------------------|--------|
| (In thousands)     |   | 2018                    |   |   | 2017 |   |   | 2016 |   |
| Net sales:         |   |                    |   |   |   |   |   |   |   |
| United States      |   | $                       | 43,518 |   |   | $ | 48,720 |   |   | $ | 45,542 |   |
| International      |   |                    | 11,069 |   |   |   | 7,591 |   |   |   | 11,693 |   |
| Total              |   | $                       | 54,587 |   |   | $ | 56,311 |   |   | $ | 57,235 |   |
|               |   |                    |   |   |   |   |   |   |   |   |   |   |
| Fixed assets, net: |   |                    |   |   |   |   |   |   |   |   |   |   |
| United States      |   | $                       | 1,767  |   |   | $ | 1,548 |   |   | $ | 1,581 |   |
| International      |   |                    | 505    |   |   |   | 621 |   |   |   | 660 |   |
| Total              |   | $                       | 2,272  |   |   | $ | 2,169 |   |   | $ | 2,241 |   |
|                                     |   | Quarter Ended |   |
|------------------------------------------|--------|---------------|--------|
| (In thousands, except per share amounts) |   | March 31      |   |   | June 30 |   |   | September 30 |   |   | December 31 |   |
| 2018:                                    |   |          |   |   |   |   |   |   |   |   |   |   |
| Net sales                                |   | $             | 12,243 |   |   | $ | 14,751 |   |   | $ | 15,838 |   |   | $ | 11,755 |   |
| Gross profit                             |   |          | 5,862  |   |   |   | 6,991 |   |   |   | 8,004 |   |   |   | 5,886 |   |
| Net income                               |   |          | 680    |   |   |   | 1,210 |   |   |   | 2,574 |   |   |   | 962 |   |
| Net income per common share:             |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                    |   |          | 0.09   |   |   |   | 0.16 |   |   |   | 0.35 |   |   |   | 0.13 |   |
| Diluted                                  |   |          | 0.09   |   |   |   | 0.16 |   |   |   | 0.33 |   |   |   | 0.12 |   |
| 2017:                               |   |   |   |   |   |   |   |   |   |   |   |   |
|-------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Net sales                           |   | $      | 13,997 |   |   | $      | 13,596 |   |   | $      | 15,524 |   |   | $ | 13,194 |   |
| Gross profit                        |   |   | 6,093  |   |   |   | 6,430  |   |   |   | 7,519  |   |   |   | 6,620 |   |
| Net income (loss)                   |   |   | 943    |   |   |   | 867    |   |   |   | 1,813  |   |   |   | (412 | ) |
| Net income (loss) per common share: |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                               |   |   | 0.13   |   |   |   | 0.12   |   |   |   | 0.24   |   |   |   | (0.06 | ) |
| Diluted                             |   |   | 0.13   |   |   |   | 0.12   |   |   |   | 0.24   |   |   |   | (0.06 | ) |

----