Executive Summary

Q1 FY2023 was very weak: revenue fell 71% YoY to $0.12M with a gross margin of approximately -21.9%, and diluted EPS of $(0.46); mix shifted away from engineering services to low-volume equipment sales, driving negative gross profit .
Liquidity is strained: cash was $0.06M, current liabilities rose to $4.50M, and stockholders’ deficit widened to $(2.77)M; management implemented furloughs (down to 16 hours/week in Jan’23) and secured insider financing .
Post-quarter, the CEO amended the insider loan to a $4.0M term note at 6.5% interest with monthly payments of $78,264.59 over 60 months, secured by all assets, and the CFO retired with the CEO appointed Acting CFO, underscoring near-term funding dependence and management bandwidth constraints .
No formal guidance or earnings call transcript; consensus estimates via S&P Global were unavailable for TCCO, so no beat/miss comparison can be provided (consensus unavailable) .

What Went Well and What Went Wrong

What Went Well
- Cost discipline: SG&A declined 14% YoY to $0.48M despite inflationary pressures .
- Continued customer engagement and pursuit of orders; management emphasized working closely with customers to move quickly when orders resume: “We continue to work closely with our customers in order to be able to move quickly once they are in a position to place orders.” — Carl H. Guild Jr., CEO .
- Employee Retention Credit provides modest cash support ($515,966 expected; $17,823 received in Q1), partially offsetting operating cash burn near term .
What Went Wrong
- Revenue collapse and margin pressure: revenue fell to $0.12M with gross loss of $(0.03)M; lack of engineering services drove mix shift and negative gross margin .
- Liquidity pressure/going concern: cash $0.06M, accumulated deficit $7.33M, substantial doubt about going concern; reliance on insider financing and furloughs to bridge to potential orders .
- Backlog contracted to $0.03M (from $0.08M at FY22), limiting near-term visibility .

Metric	Q1 FY2022 (Dec 25, 2021)	Q3 FY2022 (Jun 25, 2022)	Q1 FY2023 (Dec 24, 2022)
Revenue ($USD)	$423,481	$146,000	$121,537
Gross Profit ($USD)	$66,653	$(36,000)	$(26,581)
Gross Margin (%)	15.7% (calc. from )	-24.7% (calc. from )	-21.9% (calc. from )
SG&A ($USD)	$562,360	$451,000	$483,535
Product Development ($USD)	$101,099	$319,000	$277,183
Operating Loss ($USD)	$(596,806)	$(806,000)	$(787,299)
Net Loss ($USD)	$(613,361)	$(842,000)	$(848,600)
Diluted EPS ($)	$(0.33)	$(0.45)	$(0.46)

Revenue mix (Q1 YoY):

Revenue Type	Q1 FY2022	Q1 FY2023
Engineering Services ($USD)	$343,701	$0
Equipment Sales ($USD)	$79,780	$121,537

Geography (Q1 YoY):

Geography	Q1 FY2022	Q1 FY2023
Domestic ($USD)	$343,701	$94,617
Foreign ($USD)	$79,780	$26,920

Balance sheet and liquidity KPIs:

KPI	FY2022 (Sep 24, 2022)	Q1 FY2023 (Dec 24, 2022)
Cash & Equivalents ($USD)	$6,727	$58,716
ERC Receivable ($USD)	$515,966	$498,143
Notes Payable – Related Party Principal ($USD)	$3,000,000	$3,725,000
Accrued Interest ($USD)	$118,208	$179,233
Total Current Liabilities ($USD)	$3,653,442	$4,495,056
Stockholders’ Deficit ($USD)	$(1,934,979)	$(2,770,249)
Backlog ($USD)	$80,000	$32,000

Notes: Q4 FY2022 quarterly detail was not reported; the most recent quarterly comparator before Q1 FY2023 is Q3 FY2022 .

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue, Margins, OpEx, Tax, etc.	FY2023 / Near-term	N/A	No formal guidance provided	Maintained: no guidance

No earnings call transcript was available for Q1 FY2023. Thematic tracking below draws on press releases and 10-Q MD&A.

Topic	Q3 FY2022 Mentions	Q4 FY2022 Mentions	Q1 FY2023 Current Period	Trend
Supply chain/COVID impact	Customers reluctant to meet; sales demos delayed	Pandemic continued to impact procurement; RFQs resuming slowly	“Impact of the COVID pandemic has not resolved and continues to have negative effects”	Stabilizing drag; gradual engagement
Liquidity/financing	Rising liabilities; large related-party line in place	YE cash $7k; current liabilities $3.65M	Cash $59k; current liabilities $4.50M; furloughs enacted	Deteriorated in Q1; actions taken
Revenue mix	Low hardware volume; limited services	Full-year revenue down; no Q4 detail	Zero engineering services; equipment-only $0.12M	Mix deterioration vs prior-year Q1
Customer pipeline	Opportunities “starting to open up”	Progress in RFQs/demos	Working closely to move quickly on orders	Slow improvement
Workforce actions	—	—	Furloughs to 24 hours (Dec’22) then 16 hours (Jan’23)	Cost controls intensified
Internal controls	—	—	Material weakness in revenue recognition; remediation ongoing	Remediation in progress

“The impact of the COVID pandemic has not resolved and continues to have negative effects on the financial condition of the Company. We continue to work closely with our customers in order to be able to move quickly once they are in a position to place orders. TCC continues to closely monitor expenses and is actively pursuing additional sources of liquidity.” — Carl H. Guild Jr., President & CEO .
Liquidity plan and runway: “With this furlough plan in place we anticipate that our principal sources of liquidity…will be sufficient to fund our activities to February 2023. [Beyond that] we will need to secure new customer contracts, raise additional equity or debt capital, and reduce expenses…” .
Insider financing: outstanding related-party principal $3.725M at Q1, later amended to a $4.0M term note at 6.5% interest, with 60 monthly installments of $78,264.59, secured by all assets .
Internal control status: disclosure controls “not effective” due to material weakness related to revenue recognition; remediation ongoing .

Wall Street consensus (S&P Global) for Revenue and EPS for Q1 FY2023 was unavailable for TCCO due to missing mapping; as a result, no comparison vs estimates can be provided at this time (consensus unavailable) .

Revenue execution risk remains high until engineering services and product orders re-emerge; Q1 had $0 engineering services and minimal hardware revenue, resulting in negative gross margin .
Liquidity is the central risk: very low cash, high current liabilities, and widening deficit necessitate continued insider support and/or rapid order conversion; furloughs signal aggressive cash preservation .
Insider financing was de-risked from demand to a 5-year amortizing secured note at 6.5%, improving visibility but pledging all assets; monthly cash obligations are material relative to revenue scale .
Operational catalysts would be sizable order wins (especially engineering services) and backlog rebuild; backlog dropped to $32k with expectation to ship within ~nine months depending on customer needs .
Governance/management bandwidth: CFO retired; CEO is Acting CFO, increasing key-person dependence during a period of stressed liquidity and control remediation .
Compliance/internals: material weakness in revenue recognition persists; remediation in progress—investors should watch for control status updates and any non-routine accounting adjustments .
Absent guidance or consensus, near-term trading likely hinges on financing developments, order announcements, and any updates on furloughs or workforce actions .