Executive Summary

Q3 2022 was extremely weak: revenue fell to $146,089 and diluted EPS was $(0.45); gross margin turned negative at (25%), and operating loss widened to $(805,788) .
Sequentially, revenue declined sharply from $565,000 in Q2 to $146,089 in Q3, reflecting a drop in billable engineering services and minimal equipment shipments; management cited COVID-related constraints on in-person meetings and demonstrations as a continuing sales headwind .
Liquidity is strained: backlog collapsed to $80,000 (from $2,129,000 at FY21), cash was $36,856, and the company relies on a CEO-provided line of credit that was increased to $4,000,000 on August 4, 2022 to fund operations; going-concern doubt is explicitly noted .
No earnings call transcript was found for Q3; management communications were via the 8-K and 10-Q. Wall Street consensus estimates from S&P Global were unavailable for TCCO, so no beat/miss comparison can be made (consensus retrieval failed due to missing mapping) .

What Went Well and What Went Wrong

Engineering services continued to provide most revenue in Q3 ($123,526, 85%), with a small equipment shipment ($22,563) to the Philippines; despite low volume, services activity persisted .
SG&A was modestly lower year over year in Q3 ($451,000 vs. $478,000, down 6%), reflecting cost discipline amid weak sales .
Liquidity backstop reinforced: the CEO expanded the revolving demand note to $4,000,000 on August 4, 2022, providing near-term working capital flexibility .
Management tone: “We are seeing opportunities starting to open up and are hopeful this trend will continue and allow us to begin recovery in the near future.” (CEO) .

Revenue down 66% year over year ($146,089 vs. $425,830), with gross margin turning negative to (25%); operating loss widened as revenue mix shifted away from higher-margin equipment .
Product development costs surged 195% year over year in Q3 ($319,000 vs. $108,000) due to fewer billable engineering projects, exacerbating operating losses .
Customer concentration risk intensified: 100% of quarterly revenue came from two customers (85% and 15%), increasing volatility and forecasting risk .
Backlog collapsed to $80,000 vs. $2,129,000 at FY21, implying limited near-term revenue visibility; cash dwindled to $36,856, amplifying going-concern risk .

Metric	Q3 2021	Q1 2022	Q2 2022	Q3 2022
Revenue ($USD)	$425,830	$423,000	$565,000	$146,089
Diluted EPS ($)	$(0.27)	$(0.33)	$(0.28)	$(0.45)
Gross Profit ($USD)	$99,258	$67,000	$75,000	$(36,422)
Operating Loss ($USD)	$(487,011)	$(596,000)	$(494,000)	$(805,788)

Margins	Q3 2021	Q1 2022	Q2 2022	Q3 2022
Gross Profit Margin %	23%	15.8% (=$67,000/$423,000)	13.3% (=$75,000/$565,000)	(25%)
EBIT Margin %	(114.4)% (=$(487,011)/$425,830)	(140.9)% (=$(596,000)/$423,000)	(87.4)% (=$(494,000)/$565,000)	(551.6)% (=$(805,788)/$146,089)

Segment/Revenue-type breakdown (single segment; illustrative revenue-type mix):

Key KPIs and balance sheet items:

KPI	Q3 2022	Prior Reference
Backlog ($USD)	$80,000	$2,129,000 (FY21)
Cash & Cash Equivalents ($USD)	$36,856	$298,022 (FY21)
Total Current Liabilities ($USD)	$2,958,464	$1,574,213 (FY21)
CEO Line of Credit Outstanding (Principal) ($USD)	$2,350,000 (as of Q3)	Increased to $4,000,000 capacity (Aug 4)
Major Customers (Q3)	2 customers accounted for 100% of revenue (85%/15%)	96% single customer (Q3 2021)

Metric	Period	Previous Guidance	Current Guidance	Change
Formal Revenue/Profit Guidance	FY/Q4 2022	None provided	None provided	Maintained (no formal guidance)

Management provided qualitative liquidity outlook (funding sufficient through December 2022 absent new orders/equity/debt/furloughs) .

No earnings call transcript was available for Q3 2022; themes below reflect press release and 10-Q commentary .

Topic	Previous Mentions (Q1 & Q2)	Current Period (Q3 2022)	Trend
COVID impact on sales process	Customers reluctant to meet; procurement restarting	Continued reluctance; beginnings of opportunity reopening	Improving slowly
Revenue mix (services vs equipment)	Q1: services-heavy; Q2: services + modest equipment	Services 85%; equipment 15% (Philippines shipment)	Still services-heavy
Gross margins	Q2: low GP ($75k) on modest rev	GP negative; (25%) margin; loss driven by low volume	Deteriorating
Backlog visibility	No explicit backlog data in Q1/Q2 press releases	Backlog down to $80k vs $2.129m FY21	Sharply lower
Liquidity/financing	PPP forgiveness in prior year; ongoing SBA EIDL	CEO line increased to $4m; going-concern doubt persists	Reliance on insider credit
Customer concentration	High in prior periods	2 customers = 100% of Q3 revenue	Elevated risk

“The Company continues to be impacted by the international COVID pandemic. Customers have been reluctant to have in-person meetings and performance demonstrations… We are seeing opportunities starting to open up and are hopeful this trend will continue…” — Carl H. Guild Jr., President & CEO (Q3 press release) .
“Customers are just starting to re-engage in the procurement process… We expect that this trend will continue and positively affect other program opportunities and allow us to begin recovery in the near future.” — CEO (Q2 press release) .
Similar recovery message reiterated in Q1 press release as procurement processes resume .
Liquidity disclosures emphasize the $3,000,000 (subsequently $4,000,000) revolving demand note from the CEO to fund operations .

Not applicable — no earnings call transcript was found for Q3 2022 .

S&P Global/Capital IQ consensus estimates were unavailable for TCCO in Q3 2022 due to missing company mapping; therefore, no quantitative beat/miss comparison to Wall Street consensus can be provided at this time [S&P Global data unavailable for TCCO].
Implication: Sell-side coverage appears limited; investors should anchor on company-reported actuals and backlog trajectory until a consensus baseline is obtainable .

Revenue and margin pressure intensified: Q3 revenue collapsed to $146,089, gross margin turned negative, and operating losses deepened; this reflects minimal equipment revenue and lower billable services volume .
Backlog and cash are critically low: backlog fell to $80,000 and cash to $36,856, constraining near-term visibility and elevating liquidity risk; current liabilities and debt reliance are heavy .
Financing lifeline: the CEO increased the revolving line to $4,000,000 on Aug 4, 2022; while supportive, it underscores dependence on insider credit and going-concern uncertainty .
Customer concentration remains high (two customers accounted for 100% of Q3 revenue), increasing volatility; diversifying wins is critical to stabilizing results .
Operating expense dynamics: SG&A was modestly lower YoY, but product development costs rose 195% due to fewer billable engineering projects, pressuring margins; focus on converting engineering pipeline is pivotal .
No formal guidance and limited external estimates: absent consensus, monitor bookings, backlog rebuild, and equipment shipments for early signs of recovery; watch subsequent 8-Ks for material orders or financing updates .
Trading implications: Near-term risk skewed to execution on order capture and liquidity; any announced multi-country equipment deployments or sizable engineering contracts would be catalysts, while continued backlog erosion or financing strain would be negatives .