Cadre (CDRE) 10-Q 10 Nov 22 2022 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2022	Nov. 07, 2022
Document and Entity Information [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2022
Document Transition Report	false
Entity File Number	001-40698
Entity Registrant Name	CADRE HOLDINGS, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	38-3873146
Entity Address, Address Line One	13386 International Pkwy
Entity Address, City or Town	Jacksonville,
Entity Address State Or Province	FL
Entity Address, Postal Zip Code	32218
City Area Code	904
Local Phone Number	741-5400
Title of 12(b) Security	Common Stock, par value $0.0001 per share
Trading Symbol	CDRE
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		37,332,271
Entity Central Index Key	0001860543
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q3
Amendment Flag	false

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Current assets
Cash and cash equivalents	$ 36,350	$ 33,857
Accounts receivable, net of allowance for doubtful accounts of $774 and $645, respectively	55,759	48,344
Inventories	79,246	63,978
Prepaid expenses	8,740	10,353
Other current assets	7,493	3,171
Assets held for sale	225	278
Total current assets	187,813	159,981
Property and equipment, net of accumulated depreciation and amortization of $41,478 and $37,171, respectively	45,671	33,053
Deferred tax assets, net	5,350	7,059
Intangible assets, net	51,518	42,415
Goodwill	77,196	66,262
Other assets	7,631	3,026
Total assets	375,179	311,796
Current liabilities
Accounts payable	24,523	19,328
Accrued liabilities	35,515	40,736
Income tax payable	957	1,255
Liabilities held for sale	91	128
Current portion of long-term debt	13,285	13,174
Total current liabilities	74,371	74,621
Long-term debt	139,818	146,516
Deferred tax liabilities	3,526	1,297
Other liabilities	904	722
Total liabilities	218,619	223,156
Commitments and contingencies (Note 7)
Mezzanine equity
Preferred stock ($0.0001 par value, 10,000,000 shares authorized, no shares issued and outstanding as of September 30, 2022 and December 31, 2021)
Shareholders' equity
Common stock ($0.0001 par value, 190,000,000 shares authorized, 37,332,271 and 34,383,350 shares issued and outstanding as of September 30, 2022 and December 31, 2021, respectively)	4	3
Additional paid-in capital	203,754	127,606
Accumulated other comprehensive loss	(846)	(1,917)
Accumulated deficit	(46,352)	(37,052)
Total shareholders' equity	156,560	88,640
Total liabilities, mezzanine equity and shareholders' equity	$ 375,179	$ 311,796

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
CONSOLIDATED BALANCE SHEETS
Accounts receivable, allowance for doubtful accounts	$ 774	$ 645
Property and equipment, accumulated depreciation and amortization	$ 41,478	$ 37,171
Preferred stock, par value	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	190,000,000	190,000,000
Common stock, shares issued	37,332,271	34,383,350
Common stock, shares outstanding	37,332,271	34,383,350

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
Net sales	$ 111,554	$ 98,654	$ 334,192	$ 323,751
Cost of goods sold	67,814	59,346	207,042	192,256
Gross profit	43,740	39,308	127,150	131,495
Operating expenses
Selling, general and administrative	31,732	27,673	118,431	87,168
Restructuring and transaction costs	1,578	(49)	3,380	1,491
Related party expense	112	142	1,346	437
Total operating expenses	33,422	27,766	123,157	89,096
Operating income	10,318	11,542	3,993	42,399
Other expense
Interest expense	(1,567)	(3,464)	(4,496)	(14,129)
Loss on extinguishment of debt		(15,155)		(15,155)
Other expense, net	(1,851)	(352)	(2,812)	(881)
Total other expense, net	(3,418)	(18,971)	(7,308)	(30,165)
Income (loss) before provision for income taxes	6,900	(7,429)	(3,315)	12,234
(Provision) benefit for income taxes	(1,959)	2,123	2,536	(3,861)
Net income (loss)	$ 4,941	$ (5,306)	$ (779)	$ 8,373
Net income (loss) per share:
Basic	$ 0.13	$ (0.19)	$ (0.02)	$ 0.30
Diluted	$ 0.13	$ (0.19)	$ (0.02)	$ 0.30
Weighted average shares outstanding:
Basic	37,289,880	27,483,350	35,697,891	27,483,350
Diluted	37,747,613	27,483,350	35,697,891	27,483,350
Net income (loss)	$ 4,941	$ (5,306)	$ (779)	$ 8,373
Other comprehensive (loss) income:
Unrealized holding gains, net of tax	2,350	89	6,414	89
Reclassification adjustments for gains included in net loss, net of tax	(252)	1	(106)	1
Total unrealized gains on interest rate swaps, net of tax	2,098	90	6,308	90
Foreign currency translation adjustments, net of tax	(2,839)	(515)	(5,237)	23
Other comprehensive (loss) income	(741)	(425)	1,071	113
Comprehensive income (loss), net of tax	$ 4,200	$ (5,731)	$ 292	$ 8,486

CONSOLIDATED STATEMENTS OF OP_2

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
Unrealized holding gains, net of tax (benefit) expense	$ 783		$ 2,138
Reclassification adjustments for gains included in net of income tax (benefit) expense	(84)		(35)
Foreign currency translation adjustments, net of tax (benefit) expense	$ (916)	$ (94)	$ (934)	$ 187

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Cash Flows From Operating Activities:
Net (loss) income	$ (779)	$ 8,373
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation and amortization	11,319	10,426
Amortization of original issue discount and debt issue costs	554	2,483
Amortization of inventory step-up	3,055
Loss on extinguishment of debt		15,155
Deferred income taxes	(2,755)	1,533
Stock-based compensation	28,988
Provision for (recoveries from) losses on accounts receivable	245	(254)
Foreign exchange loss	3,006	45
Changes in operating assets and liabilities, net of impact of acquisitions:
Accounts receivable	(3,271)	1,549
Inventories	(7,187)	(10,261)
Prepaid expenses and other assets	986	(4,642)
Accounts payable and other liabilities	(4,660)	6,582
Net cash provided by operating activities	29,501	30,989
Cash Flows From Investing Activities:
Purchase of property and equipment	(2,938)	(2,225)
Business acquisitions, net of cash acquired	(55,039)
Net cash used in investing activities	(57,977)	(2,225)
Cash Flows From Financing Activities:
Proceeds from revolving credit facilities	43,000	248,000
Principal payments on revolving credit facilities	(43,000)	(223,132)
Proceeds from term loans		198,735
Principal payments on term loans	(7,514)	(224,547)
Proceeds from insurance premium financing	3,989	4,269
Principal payments on insurance premium financing	(3,878)	(2,611)
Payment of capital leases	(26)	(32)
Payments for debt issuance costs		(2,830)
Payments on extinguishment of debt		(4,215)
Taxes paid in connection with employee stock transactions	(6,216)
Proceeds from secondary offering, net of underwriter discounts	56,329
Deferred offering costs	(2,953)
Dividends distributed	(8,521)	(9,996)
Net cash provided by (used in) financing activities	31,210	(16,359)
Effect of foreign exchange rates on cash and cash equivalents	(241)	(3)
Change in cash and cash equivalents	2,493	12,402
Cash and cash equivalents, beginning of period	33,857	2,873
Cash and cash equivalents, end of period	36,350	15,275
Supplemental Disclosure of Cash Flows Information:
Cash paid for income taxes, net	710	695
Cash paid for interest	3,860	$ 8,524
Supplemental Disclosure of Non-Cash Investing and Financing Activities:
Accruals and accounts payable for capital expenditures	$ 272

CONSOLIDATED STATEMENTS OF SHAR

CONSOLIDATED STATEMENTS OF SHAREHOLDERS EQUITY (DEFICIT) - USD ($) $ in Thousands	Common Stock	Additional Paid-In Capital	Accumulated Other Comprehensive Income (Loss)	Accumulated Deficit	Total
Balance at the beginning at Dec. 31, 2020	$ 3	$ 48,670	$ (2,860)	$ (36,962)	$ 8,851
Balance at the beginning (in shares) at Dec. 31, 2020	27,483,350
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)				6,864	6,864
Foreign currency translation adjustments			284		284
Balance at the end at Mar. 31, 2021	$ 3	48,670	(2,576)	(30,098)	15,999
Balance at the end (in shares) at Mar. 31, 2021	27,483,350
Balance at the beginning at Dec. 31, 2020	$ 3	48,670	(2,860)	(36,962)	8,851
Balance at the beginning (in shares) at Dec. 31, 2020	27,483,350
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)					8,373
Foreign currency translation adjustments					23
Balance at the end at Sep. 30, 2021	$ 3	48,670	(2,747)	(38,589)	7,337
Balance at the end (in shares) at Sep. 30, 2021	27,483,350
Balance at the beginning at Mar. 31, 2021	$ 3	48,670	(2,576)	(30,098)	15,999
Balance at the beginning (in shares) at Mar. 31, 2021	27,483,350
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)				6,815	6,815
Foreign currency translation adjustments			254		254
Balance at the end at Jun. 30, 2021	$ 3	48,670	(2,322)	(23,283)	23,068
Balance at the end (in shares) at Jun. 30, 2021	27,483,350
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)				(5,306)	(5,306)
Dividends declared				(10,000)	(10,000)
Foreign currency translation adjustments			(515)		(515)
Change in fair value of derivative instruments			90		90
Balance at the end at Sep. 30, 2021	$ 3	48,670	(2,747)	(38,589)	7,337
Balance at the end (in shares) at Sep. 30, 2021	27,483,350
Balance at the beginning at Dec. 31, 2021	$ 3	127,606	(1,917)	(37,052)	$ 88,640
Balance at the beginning (in shares) at Dec. 31, 2021	34,383,350				34,383,350
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)				(10,165)	$ (10,165)
Dividends declared				(2,750)	(2,750)
Stock-based compensation		22,436			22,436
Common stock issued under employee compensation plans		1,152			1,152
Common stock issued under employee compensation plans (in shares)	580,990
Common stock withheld related to net share settlement of stock-based compensation		(6,216)			(6,216)
Common stock withheld related to net share settlement of stock-based compensation (in shares)	(182,069)
Foreign currency translation adjustments			(360)		(360)
Change in fair value of derivative instruments			3,208		3,208
Balance at the end at Mar. 31, 2022	$ 3	144,978	931	(49,967)	95,945
Balance at the end (in shares) at Mar. 31, 2022	34,782,271
Balance at the beginning at Dec. 31, 2021	$ 3	127,606	(1,917)	(37,052)	$ 88,640
Balance at the beginning (in shares) at Dec. 31, 2021	34,383,350				34,383,350
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)					$ (779)
Foreign currency translation adjustments					(5,237)
Balance at the end at Sep. 30, 2022	$ 4	203,754	(846)	(46,352)	$ 156,560
Balance at the end (in shares) at Sep. 30, 2022	37,332,271				37,332,271
Balance at the beginning at Mar. 31, 2022	$ 3	144,978	931	(49,967)	$ 95,945
Balance at the beginning (in shares) at Mar. 31, 2022	34,782,271
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)				4,445	4,445
Issuance of common share in secondary offering, net of underwriter discounts and issuance costs	$ 1	46,987			46,988
Issuance of common share in secondary offering, net of underwriter discounts and issuance costs (in shares)	2,250,000
Dividends declared				(2,783)	(2,783)
Stock-based compensation		2,739			2,739
Foreign currency translation adjustments			(2,038)		(2,038)
Change in fair value of derivative instruments			1,002		1,002
Balance at the end at Jun. 30, 2022	$ 4	194,704	(105)	(48,305)	146,298
Balance at the end (in shares) at Jun. 30, 2022	37,032,271
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)				4,941	4,941
Issuance of common share in secondary offering, net of underwriter discounts and issuance costs		6,389			6,389
Issuance of common share in secondary offering, net of underwriter discounts and issuance costs (in shares)	300,000
Dividends declared				(2,988)	(2,988)
Stock-based compensation		2,661			2,661
Foreign currency translation adjustments			(2,839)		(2,839)
Change in fair value of derivative instruments			2,098		2,098
Balance at the end at Sep. 30, 2022	$ 4	$ 203,754	$ (846)	$ (46,352)	$ 156,560
Balance at the end (in shares) at Sep. 30, 2022	37,332,271				37,332,271

SIGNIFICANT ACCOUNTING POLICIES

SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Sep. 30, 2022
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES	1. SIGNIFICANT ACCOUNTING POLICIES Nature of Operations Cadre Holdings, Inc., D/B/A The Safariland Group (the “Company”, “Cadre”, “we”, “us”, and “our”), a Delaware corporation, began operations on April 12, 2012. The Company, headquartered in Jacksonville, Florida, is a global leader in manufacturing and distributing safety and survivability products and other related products for the law enforcement, first responder and military markets. The business operates through 16 manufacturing plants within the U.S., Mexico, Canada, the United Kingdom, Italy, France, and Lithuania, and sells its products worldwide through its direct sales force, distribution channel and distribution partners, online stores, and third-party resellers. Principles of Consolidation and Basis of Presentation The accompanying consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States ("GAAP") and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting, and include the accounts of the Company, its wholly owned subsidiaries, and other entities consolidated as required by GAAP. Accordingly, they do not include all of the information and footnotes required by GAAP for annual audited financial statements. The unaudited interim consolidated financial statements have been prepared on a basis consistent with the audited consolidated financial statements and include all adjustments, which are normal and recurring in nature, necessary for fair financial statement presentation. These interim consolidated financial statements and notes thereto should be read in conjunction with the Company’s most recently completed annual consolidated financial statements. All adjustments considered necessary for a fair presentation have been included. All intercompany transactions have been eliminated in consolidation. Stock Split In July 2021, the Company effected a 50-for-1 Secondary Offering On June 9, 2022, the Company completed a secondary offering in which the Company issued and sold 2,250,000 shares of common stock at a price of $23.50 per share. The Company’s net proceeds from the sale of shares were $46,987 after underwriter discounts and commissions, fees and expenses of $2,715 , of which $2,000 was paid to Kanders & Company, Inc., a company controlled by Warren Kanders, our Chief Executive Officer On July 14, 2022, the underwriters exercised a portion of their over-allotment option and purchased an additional 300,000 shares of common stock at a price of $23.50 per share, resulting in net proceeds to the Company of $6,389 after underwriter discounts and commissions, fees and expenses of $661 . Emerging Growth Company We are an “emerging growth company,” as defined in the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”). As such, we are eligible for exemptions from various reporting requirements applicable to other public companies that are not emerging growth companies, including, but not limited to, presenting only two years of audited financial statements, not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act of 2002, reduced disclosure obligations regarding executive compensation, and an exemption from the requirements to obtain a non-binding advisory vote on executive compensation or golden parachute arrangements. In addition, an emerging growth company can take advantage of an extended transition period for complying with new or revised accounting standards. This provision allows an emerging growth company to delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. We have elected to avail ourselves of this provision of the JOBS Act. As a result, we may not be subject to new or revised accounting standards at the same time as other public companies that are not emerging growth companies. Therefore, our consolidated financial statements may not be comparable to those of companies that comply with new or revised accounting pronouncements as of public company effective dates. ​ Use of Estimates The preparation of these consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from these estimates. The presentation of revenue by channel previously reported in the notes to the consolidated financial statements has been reclassified to conform to the current financial statement presentation. Fair Value Measurements The Company follows the guidance of Accounting Standards Codification (“ASC”) Topic 820, Fair Value Measurements and Disclosures, Level 1: Observable inputs that reflect unadjusted quoted prices for identical assets or liabilities traded in active markets. Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. Level 3: Unobservable inputs that reflect assumptions about what market participants would use in pricing assets or liabilities based on the best information available. The Company’s financial instruments consist principally of cash, accounts receivable, prepaid expenses, other current assets, accounts payable, accrued liabilities, income tax payable and debt. The carrying amounts of certain of these financial instruments, including cash, accounts receivable, prepaid expenses, other current assets, accounts payable, accrued liabilities and income tax payable approximate their current fair value due to the relatively short-term nature of these accounts. The following table presents our fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2022 ​ December 31, 2021 ​ ​ Carrying ​ Fair Value ​ Carrying ​ Fair Value ​ amount ​ Level 1 ​ Level 2 ​ Level 3 amount ​ Level 1 ​ Level 2 ​ Level 3 Assets: ​ ​ ​ ​ ​ ​ ​ ​ Interest rate swap (Note 6) ​ $ 9,628 ​ $ — ​ $ 9,628 ​ $ — ​ $ 1,607 ​ $ — ​ $ 1,607 ​ $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest rate swap (Note 6) ​ $ — ​ $ — ​ $ — ​ $ — ​ $ 389 ​ $ — ​ $ 389 ​ $ — ​ There were no transfers of assets or liabilities between levels during the nine months ended September 30, 2022 and 2021. The carrying value of our long-term debt obligations approximates the fair value, as the long-term debt was entered into recently and contains a floating interest rate component. Goodwill and Other Intangible Assets The Company tests goodwill and intangible assets determined to have indefinite useful lives for impairment annually, or more frequently if events or circumstances indicate that assets might be impaired. The Company performs these annual impairment tests as of October 31 st In evaluating goodwill for impairment, qualitative factors are considered to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. Some of these qualitative factors may include macroeconomic conditions, industry and market considerations, a change in financial performance, or entity-specific events. If, through this qualitative assessment, the conclusion is made that it is more likely than not that a reporting unit’s fair value is less than its carrying amount, the Company performs a two-step goodwill impairment test. The first step involves a comparison of the fair value of a reporting unit to its carrying value. If the carrying amount of the reporting unit exceeds its fair value, the second step of the process is performed, which compares the implied value of the reporting unit goodwill with the carrying value of the goodwill of that reporting unit. If the carrying value of the goodwill of a reporting unit exceeds the implied fair value of that goodwill, an impairment loss is recognized in an amount equal to that excess. The Company determines the fair value of its reporting units based on a combination of the income approach and market approach, weighted based on the circumstances. Both values are discounted using a rate that reflects the Company’s best estimate of the weighted average cost of capital of a market participant and is adjusted for appropriate risk factors. Revenue Recognition The Company derives revenue primarily from the sale of physical products. The Company recognizes revenue when a contract exists with a customer that specifies the goods and services to be provided at an agreed upon sales price and when the performance obligation is satisfied by transferring the goods or service to the customer. The performance obligation is considered satisfied when control transfers, which is generally determined when products are shipped or delivered to the customer but could be delayed until the receipt of customer acceptance, depending on the terms of the contract. Sales are made on normal and customary short-term credit terms or upon delivery for point of sale transactions. The Company enters into contractual arrangements primarily with customers in the form of individual customer orders which specify the goods, quantity, pricing, and associated order terms. The Company has some long-term contracts that may contain research and development performance obligations that are satisfied over time. The Company invoices the customer once the billing milestone is reached and collects under customary short-term credit terms. For long-term contracts, the Company recognizes revenue using the input method based on costs incurred, as this method is an appropriate measure of progress toward the complete satisfaction of the performance obligation. Due to uncertainties inherent in the estimation process, it is possible that estimates of costs to complete a performance obligation will be revised in the near-term. For those performance obligations for which revenue is recognized using a cost-to-cost input method, changes in total estimated costs, and related progress towards complete satisfaction of the performance obligation, are recognized on a cumulative catch-up basis in the period in which the revisions to the estimates are made. When the current estimate of total costs for a performance obligation indicates a loss, a provision for the entire estimated loss on the unsatisfied performance obligation is made in the period in which the loss becomes evident. At the time of revenue recognition, the Company also provides for estimated sales returns and miscellaneous claims from customers as reductions to revenues. The estimates are based on historical rates of product returns and claims. The Company accrues for such estimated returns and claims with an estimated accrual and associated reduction of revenue. Additionally, the Company records inventory that it expects to be returned as part of inventories, with a corresponding reduction to cost of goods sold. Charges for shipping and handling fees billed to customers are included in net sales and the corresponding shipping and handling expenses are included in cost of goods sold in the accompanying consolidated statements of operations and comprehensive income (loss). We consider our costs related to shipping and handling after control over a product has transferred to a customer to be a cost of fulfilling the promise to transfer the product to the customer. Sales commissions paid to employees as compensation are expensed as incurred for contracts with service periods less than a year. For contracts with service periods greater than a year, these costs are capitalized and amortized over the life of the contract. These costs are recorded in selling, general and administrative expenses in the Company’s consolidated statements of operations and comprehensive income (loss). Product Warranty Some of the Company’s manufactured products carry limited warranty provisions for defects in quality and workmanship. A warranty reserve is established at the time of sale to cover estimated costs based on the Company’s history of warranty repairs and replacements, and is recorded in cost of goods sold in the Company’s consolidated statements of operations and comprehensive income (loss). The following table sets forth the changes in the Company’s accrued warranties, which is recorded in accrued liabilities in the consolidated balance sheets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine months ended September 30, ​ 2022 2021 Beginning accrued warranty expense ​ $ 1,256 ​ $ 1,133 Current period claims ​ (398) ​ (236) Provision for current period sales ​ 339 ​ 256 Ending accrued warranty expense ​ $ 1,197 ​ $ 1,153 ​ Net Income (Loss) per Share Basic income or loss per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding during the periods presented. Diluted income or loss per share is calculated by adjusting weighted average shares outstanding for the dilutive effect of potential common shares, determined using the treasury-stock method. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended September 30, Nine months ended September 30, ​ 2022 2021 2022 2021 Net income (loss) ​ $ 4,941 ​ $ (5,306) ​ $ (779) ​ $ 8,373 ​ ​ ​ ​ ​ Weighted average shares outstanding - basic ​ 37,289,880 ​ 27,483,350 ​ 35,697,891 ​ 27,483,350 Effect of dilutive securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Stock-based awards ​ ​ 457,734 ​ ​ — ​ ​ — ​ ​ — Weighted average shares outstanding - diluted ​ 37,747,613 ​ 27,483,350 ​ 35,697,891 ​ 27,483,350 Net income (loss) per share: ​ ​ ​ ​ Basic ​ $ 0.13 ​ $ (0.19) ​ $ (0.02) ​ $ 0.30 Diluted ​ $ 0.13 ​ $ (0.19) ​ $ (0.02) ​ $ 0.30 ​ For the nine months ended September 30, 2022, 7,363 restricted stock awards were excluded from diluted weighted average shares outstanding because the impact would be anti-dilutive due to a net loss in the period. There were no dilutive instruments outstanding for the three and nine months ended September 30, 2021. Recent Accounting Pronouncements Adopted Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) lease liability January 1, 2022 Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326) Measurement of Credit Losses on Financial Instruments. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes There were no other new accounting standards that the Company expects to have a potential material impact to the financial position or results of operations upon adoption.

ACQUISITIONS

ACQUISITIONS	9 Months Ended
	Sep. 30, 2022
ACQUISITIONS
ACQUISITIONS	2. ACQUISITIONS Radar Acquisition On January 11, 2022, Safariland, LLC, a wholly-owned subsidiary of the Company, completed the acquisition of Radar Leather Division S.r.l. The acquisition was accounted for as a business combination. Total acquisition-related costs for the acquisition of Radar were $627 , of which $204 was incurred and recognized during the nine months ended September 30, 2022. Total consideration, net of cash acquired, was $19,365 for 100% of the equity interests in Radar. The total consideration was as follows: ​ ​ ​ ​ ​ Cash paid $ 20,844 Less: cash acquired ​ (1,479) Total consideration, net ​ $ 19,365 ​ The following table summarizes the total purchase price consideration and the preliminary fair value amounts recognized for the assets acquired and liabilities assumed, which have been estimated at their fair values. The fair value estimates for the purchase price allocation are based on the Company’s best estimates and assumptions as of the reporting date and are considered preliminary. Since our initial purchase price allocation, we have decreased goodwill by $422 for revisions made to cash paid. The fair value measurements of all identifiable assets and liabilities, and the resulting goodwill related to the Radar acquisition are subject to change and the final purchase price allocation could be different from the amounts presented below. We expect to finalize the valuations as soon as practicable, but no later than one year from the date of the acquisition. The excess of purchase consideration over the assets acquired and liabilities assumed is recorded as goodwill. Goodwill for the Radar acquisition is included in the Products segment and reflects synergies and additional legacy growth and profitability expected from this acquisition through expansion into new markets and customers. ​ ​ ​ ​ ​ Total consideration, net $ 19,365 ​ ​ ​ ​ Accounts receivable ​ $ 2,347 Inventories ​ ​ 2,500 Prepaid expenses ​ ​ 682 Other current assets ​ ​ 612 Property and equipment ​ ​ 3,053 Intangible assets ​ ​ 10,200 Goodwill ​ ​ 6,289 Total assets acquired ​ ​ 25,683 Accounts payable ​ ​ 1,120 Deferred tax liabilities ​ ​ 2,548 Accrued liabilities ​ ​ 2,106 Long-term debt ​ ​ 544 Total liabilities assumed ​ ​ 6,318 Net assets acquired ​ $ 19,365 ​ In connection with the acquisition, the Company acquired exclusive rights to Radar’s trademarks, customer relationships, and product technologies. The amounts assigned to each class of intangible asset and the related average useful lives are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross Average Useful Life Customer relationships ​ $ 9,300 ​ ​ 15 Technology ​ ​ 600 ​ 10 Trademarks ​ ​ 300 ​ ​ 7 Total ​ $ 10,200 ​ ​ ​ ​ The full amount of goodwill of $6,289 is expected to be non-deductible for tax purposes. No pre-existing relationships existed between the Company and Radar prior to the acquisition. Radar revenue and cost of goods sold are included in the Products segment from the date of acquisition. The acquisition was not material to our consolidated financial statements. Cyalume Acquisition On May 4, 2022, Safariland, LLC, a wholly-owned subsidiary of the Company, completed the acquisition of Cyalume Technologies, Inc, CT SAS Holdings, Inc. and Cyalume Technologies SAS (collectively “Cyalume”) engaged in the design and manufacture of proprietary chemical illumination solutions for a diverse range of products, including light sticks, infrared products, safety markings and non-pyrophoric training ammunition The acquisition was accounted for as a business combination. Acquisition-related costs for the acquisition of Cyalume were three and nine months ended September 30, 2022, respectively. Total consideration, net of cash acquired, was $35,674 for 100% of the equity interests in Cyalume. The total consideration was as follows: ​ ​ ​ ​ ​ Cash paid $ 37,508 Less: cash acquired ​ (1,834) Total consideration, net ​ $ 35,674 ​ The following table summarizes the total purchase price consideration and the preliminary fair value amounts recognized for the assets acquired and liabilities assumed, which have been estimated at their fair values. The fair value estimates for the purchase price allocation are based on the Company’s best estimates and assumptions as of the reporting date and are considered preliminary. The fair value measurements of identifiable assets and liabilities, and the resulting goodwill related to the Cyalume acquisition are subject to change and the final purchase price allocation could be different from the amounts presented below. We expect to finalize the valuations as soon as practicable, but no later than one year from the date of the acquisition. The excess of purchase consideration over the assets acquired and liabilities assumed is recorded as goodwill. Goodwill for the Cyalume acquisition is included in the Products segment and reflects synergies and additional legacy growth and profitability expected from this acquisition through expansion into new markets and customers. ​ ​ ​ ​ ​ Total consideration, net $ 35,674 ​ ​ ​ ​ Accounts receivable ​ $ 3,302 Inventories ​ ​ 10,908 Prepaid expenses ​ ​ 255 Other current assets ​ ​ 10 Property and equipment ​ ​ 11,701 Intangible assets ​ ​ 8,300 Goodwill ​ ​ 6,641 Total assets acquired ​ ​ 41,117 Accounts payable ​ ​ 1,080 Deferred tax liabilities ​ ​ 2,497 Accrued liabilities ​ ​ 1,578 Other long-term liabilities ​ ​ 288 Total liabilities assumed ​ ​ 5,443 Net assets acquired ​ $ 35,674 ​ In connection with the acquisition, the Company acquired exclusive rights to Cyalume’s trademarks, customer relationships, and product technologies. The amounts assigned to each class of intangible asset and the related average useful lives are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross Average Useful Life Customer relationships ​ $ 3,900 ​ ​ 15 Technology ​ ​ 3,600 ​ 10 Trademarks ​ ​ 800 ​ ​ Indefinite Total ​ $ 8,300 ​ ​ ​ ​ The full amount of goodwill of $6,641 is expected to be non-deductible for tax purposes. No pre-existing relationships existed between the Company and Cyalume prior to the acquisition. Cyalume revenue and cost of goods sold are included in the Products segment from the date of acquisition. The acquisition was not material to our consolidated financial statements.

REVENUE RECOGNITION

REVENUE RECOGNITION	9 Months Ended
	Sep. 30, 2022
REVENUE RECOGNITION
REVENUE RECOGNITION	3. REVENUE RECOGNITION The following tables disaggregate net sales by channel and geography: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended September 30, ​ Nine months ended September 30, ​ 2022 2021 2022 2021 U.S. state and local agencies (a) ​ $ 64,359 ​ $ 55,559 ​ $ 188,724 ​ $ 177,221 Commercial ​ 11,211 ​ 7,669 ​ 33,572 ​ 29,263 U.S. federal agencies ​ 16,652 ​ 11,286 ​ 34,014 ​ 37,368 International ​ 18,264 ​ 22,613 ​ 74,789 ​ 74,647 Other ​ 1,068 ​ 1,527 ​ 3,093 ​ 5,252 Net sales ​ $ 111,554 ​ $ 98,654 ​ $ 334,192 ​ $ 323,751 ​ (a) Includes all Distribution sales ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended September 30, ​ Nine months ended September 30, ​ ​ 2022 2021 2022 2021 United States ​ $ 93,290 ​ $ 76,041 ​ $ 259,403 ​ $ 249,104 ​ International ​ 18,264 ​ 22,613 ​ 74,789 ​ 74,647 ​ ​ ​ $ 111,554 ​ $ 98,654 ​ $ 334,192 ​ $ 323,751 ​ ​ Contract Liabilities Contract liabilities are recorded as a component of other liabilities when customers remit cash payments in advance of the Company satisfying performance obligations which are satisfied at a future point of time. Contract liabilities are reduced when the performance obligation is satisfied. Contract liabilities are included in accrued liabilities in the Company’s consolidated balance sheets and totaled $6,216 and $10,949 as of September 30, 2022 and December 31, 2021, respectively. Revenue recognized during the three and nine months ended September 30, 2022 from amounts included in contract liabilities as of December 31, 2021 was $424 and $7,640, respectively. Remaining Performance Obligations As of September 30, 2022, we had $19,427 of remaining performance obligations, which included amounts that will be invoiced and recognized in future periods. The remaining performance obligations are limited only to arrangements that meet the definition of a contract under ASC Topic 606, Revenue from Contracts with Customers

INVENTORIES

INVENTORIES	9 Months Ended
	Sep. 30, 2022
INVENTORIES
INVENTORIES	4. INVENTORIES The following table sets forth a summary of inventories stated at lower of cost or net realizable value, as of September 30, 2022 and December 31, 2021: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2022 December 31, 2021 Finished goods ​ $ 29,992 ​ $ 28,707 Work-in-process ​ 8,941 ​ 4,053 Raw materials and supplies ​ 40,313 ​ 31,218 ​ ​ $ 79,246 ​ $ 63,978 ​

GOODWILL AND OTHER INTANGIBLE A

GOODWILL AND OTHER INTANGIBLE ASSETS	9 Months Ended
	Sep. 30, 2022
GOODWILL AND OTHER INTANGIBLE ASSETS
GOODWILL AND OTHER INTANGIBLE ASSETS	5. GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill The following table summarizes the changes in goodwill for the three and nine months ended September 30, 2022: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Products Distribution Total Balance, December 31, 2021 ​ $ 63,646 ​ $ 2,616 ​ $ 66,262 Radar acquisition ​ ​ 6,711 ​ ​ — ​ ​ 6,711 Foreign currency translation adjustments ​ (463) ​ — ​ (463) Balance, March 31, 2022 ​ $ 69,894 ​ $ 2,616 ​ $ 72,510 Radar acquisition measurement period adjustment ​ ​ (422) ​ ​ — ​ ​ (422) Cyalume acquisition ​ ​ 6,641 ​ ​ — ​ ​ 6,641 Foreign currency translation adjustments ​ ​ (702) ​ ​ — ​ ​ (702) Balance, June 30, 2022 ​ $ 75,411 ​ $ 2,616 ​ $ 78,027 Foreign currency translation adjustments ​ ​ (831) ​ ​ — ​ ​ (831) Balance, September 30, 2022 ​ $ 74,580 ​ $ 2,616 ​ $ 77,196 ​ Gross goodwill and accumulated impairment losses was $84,781 and $7,585, respectively, as of September 30, 2022 and $73,899 and $7,585, respectively, as of December 31, 2021. Intangible Assets Intangible assets such as certain customer relationships and patents on core technologies and product technologies are amortizable over their estimated useful lives. Certain trade names and trademarks which provide exclusive and perpetual rights to manufacture and sell their respective products are deemed indefinite-lived and are therefore not subject to amortization. Intangible assets consisted of the following as of September 30, 2022 and December 31, 2021: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2022 ​ ​ ​ ​ ​ ​ ​ Weighted ​ ​ ​ ​ ​ ​ Accumulated ​ ​ ​ ​ Average ​ ​ Gross ​ ​ amortization ​ ​ Net Useful Life Definite lived intangibles: ​ ​ ​ Customer relationships ​ $ 84,445 $ (57,160) $ 27,285 11 Technology ​ 15,649 (11,213) 4,436 8 Tradenames ​ 6,244 (3,857) 2,387 4 Non-compete agreements ​ 922 (922) — 4 ​ ​ $ 107,260 $ (73,152) $ 34,108 ​ ​ Indefinite lived intangibles: ​ Tradenames ​ 17,410 — 17,410 Indefinite Total ​ $ 124,670 $ (73,152) $ 51,518 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2021 ​ ​ ​ ​ ​ ​ ​ Weighted ​ ​ ​ ​ ​ ​ Accumulated ​ ​ ​ ​ Average ​ ​ Gross ​ ​ amortization ​ ​ Net Useful Life Definite lived intangibles: ​ ​ ​ Customer relationships ​ $ 74,078 ​ $ (52,536) $ 21,542 11 Technology ​ 11,978 (10,988) 990 7 Tradenames ​ 6,473 (3,264) 3,209 4 Non-compete agreements ​ 1,037 (1,037) — 4 ​ ​ $ 93,566 $ (67,825) $ 25,741 ​ ​ Indefinite lived intangibles: ​ Tradenames ​ 16,674 — 16,674 Indefinite Total ​ $ 110,240 $ (67,825) $ 42,415 ​ ​ The Company recorded amortization expense of $2,274 and $2,173 for the three months ended September 30, 2022 and 2021, respectively, of which $134 and $198 was included in cost of goods sold in the consolidated statements of operations and comprehensive income (loss) for the respective periods. Amortization expense for the nine months ended September 30, 2022 and 2021 was $6,671 and $6,538, respectively, of which $314 and $596 was included in cost of goods sold in the consolidated statements of operations and comprehensive income (loss) for the respective periods. The estimated amortization expense for definite-lived intangible assets for the remaining three months of 2022, the next four years and thereafter is as follows: ​ ​ ​ ​ ​ Remainder of 2022 $ 1,910 2023 ​ 7,735 2024 ​ 4,853 2025 ​ 2,934 2026 ​ 2,543 Thereafter ​ 14,133 ​ ​ $ 34,108 ​

DEBT

DEBT	9 Months Ended
	Sep. 30, 2022
DEBT
DEBT	6. DEBT The Company’s debt is as follows: ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2022 December 31, 2021 Short-term debt: ​ ​ Insurance premium financing ​ $ 3,285 ​ $ 3,174 Current portion of term loan ​ 10,000 ​ 10,000 ​ ​ $ 13,285 ​ $ 13,174 Long-term debt: ​ ​ Revolver ​ — ​ — Term loan ​ 141,064 ​ 148,564 Other ​ 466 ​ — ​ ​ $ 141,530 ​ $ 148,564 Unamortized debt discount and debt issuance costs ​ (1,712) ​ (2,048) Total long-term debt, net ​ $ 139,818 ​ $ 146,516 ​ The following summarizes the aggregate principal payments of our long-term debt, excluding debt discount and debt issuance costs, for the remaining three months of 2022, the next four years and thereafter: ​ ​ ​ ​ Remainder of 2022 $ 2,500 2023 ​ 10,000 2024 ​ 10,116 2025 ​ 10,116 2026 ​ 118,680 Thereafter ​ 118 Total principal payments ​ $ 151,530 ​ New Credit Facility On August 20, 2021 (the “Closing Date”), the Company refinanced its existing credit facilities and entered into a new credit agreement whereby Safariland, LLC, as borrower (the “Borrower”), the Company and certain domestic subsidiaries of the Borrower, as guarantors (the “Guarantors”), closed on and received funding under a credit agreement (initially entered into on July 23, 2021), pursuant to a First Amendment to Credit Agreement (collectively, the “New Credit Agreement”) with PNC Bank, National Association (“PNC”), as administrative agent, and the several lenders from time to time party thereto (together with PNC, the “Lenders”) pursuant to which the Borrower (i) borrowed $200,000 under a term loan (the “Term Loan”), and (ii) may borrow up to $100,000 under a revolving credit facility (including up to $15,000 for letters of credit and up to $10,000 for swing line loans) (the “Revolving Loan”). Each of the Term Loan and the Revolving Loan mature on July 23, 2026. Commencing December 31, 2021, the New Term Loan requires scheduled quarterly payments in amounts equal to 1.25% per quarter of the original aggregate principal amount of the Term Loan, with the balance due at maturity. The New Credit Agreement is guaranteed, jointly and severally, by the Guarantors and, subject to certain exceptions, secured by a first-priority security interest in substantially all of the assets of the Borrower and the Guarantors pursuant to a Security and Pledge Agreement and a Guaranty and Suretyship Agreement, each dated as of the Closing Date. The Company performed an analysis on a creditor-by-creditor basis for debt modifications and extinguishments to determine the appropriate accounting treatment of associated issuance costs. In connection with the refinancing, the Company recorded a loss on debt extinguishment of $15,155 for the three and nine months ended September 30, 2021 related to early extinguishments fees and the write-off of unamortized debt discount and debt issuance costs There were no amounts outstanding under the Revolving Loan as of September 30, 2022 and December 31, 2021. As of September 30, 2022, there were $2,291 in outstanding letters of credit and $97,709 of availability. The Borrower may elect to have the Revolving Loan and Term Loan under the New Credit Agreement bear interest at a base rate or a LIBOR rate, in each case, plus an applicable margin. The applicable margin for these borrowings will range from 0.50% to 1.50% per annum, in the case of base rate borrowings, and 1.50% to 2.50% per annum, in the case of LIBOR borrowings, in each case based upon the level of the Company’s consolidated total net leverage ratio. The New Credit Agreement also requires the Borrower to pay a commitment fee on the unused portion of the loan commitments. Such commitment fee will range between 0.175% and 0.25% per annum, and is also based upon the level of the Company’s consolidated total net leverage ratio. The New Credit Agreement also contains customary representations and warranties, and affirmative and negative covenants, including limitations on additional indebtedness, dividends, and other distributions, entry into new lines of business, use of loan proceeds, capital expenditures, restricted payments, restrictions on liens on the assets of the Borrowers or any Guarantor, transactions with affiliates, amendments to organizational documents, accounting changes, sale and leaseback transactions, dispositions, and mandatory prepayments in connection with certain liquidity events. The New Credit Agreement contains certain restrictive debt covenants, which require us to: (i) maintain a minimum fixed charge coverage ratio of 1.25 to 1.00, starting with the quarter ended December 31, 2021, which is to be determined for each quarter end on a trailing four quarter basis and (ii) maintain a quarterly maximum consolidated total net leverage ratio of 3.75 to 1.00 from the quarter ended December 31, 2021 until the quarter ended September 30, 2022, and thereafter 3.50 to 1.00, which is in each case to be determined on a trailing four quarter basis; provided that under certain circumstances and subject to certain limitations, in the event of a material acquisition, we may temporarily increase the consolidated total net leverage ratio by up to 0.50 to 1.00 for four fiscal quarters following such acquisition. The New Credit Agreement contains customary events of default that include, among others, non-payment of principal, interest or fees, violation of covenants, inaccuracy of representations and warranties, failure to make payment on, or defaults with respect to, certain other material indebtedness, bankruptcy and insolvency events, material judgments and change of control provisions. Upon the occurrence of an event of default, and after the expiration of any applicable grace period, payment of any outstanding loans under the New Credit Agreement may be accelerated and the Lenders could foreclose on their security interests in the assets of the Borrowers and the Guarantors. Canadian Credit Facility On October 14, 2021, Med-Eng Holdings ULC and Pacific Safety Products Inc., the Company’s Canadian subsidiaries, as borrowers (the “Canadian Borrowers”), and Safariland, LLC, as guarantor (the “Canadian Guarantor”), closed on a line of credit pursuant to a Loan Agreement (the “Canadian Loan Agreement”) and a Revolving Line of Credit Note (the “Note”) with PNC Bank Canada Branch (“PNC Canada”), as lender pursuant to which the Canadian Borrowers may borrow up to CDN$10,000 under a revolving line of credit (including up to $3,000 for letters of credit) (the “Revolving Canadian Loan”). The Revolving Canadian Loan matures on July 23, 2026. The Canadian Loan Agreement is guaranteed by the Canadian Guarantor pursuant to a Guaranty and Suretyship Agreement (the “Canadian Guaranty Agreement”). The Canadian Borrowers may elect to have borrowings either in United States dollars or Canadian dollars under the Canadian Loan Agreement, which will bear interest at a base rate or a LIBOR rate, in each case, plus an applicable margin, in the case of borrowings in United States dollars, or at a Canadian Prime Rate (as announced from time to time by PNC Canada) or a Canadian deposit offered rate (“CDOR”) as determined from time to time by PNC Canada in accordance with the Canadian Loan Agreement. The applicable margin for these borrowings will range from 0.50% to 1.50% per annum, in the case of base rate borrowings and Canadian Prime Rate borrowings, and 1.50% to 2.50% per annum, in the case of LIBOR borrowings and CDOR borrowings. The Canadian Loan Agreement also requires the Canadian Borrowers to pay (i) an unused line fee on the unused portion of the loan commitments in an amount ranging between 0.175% and 0.25% per annum, based upon the level of the Company’s consolidated total net leverage ratio, and (ii) an upfront fee equal to 0.25% of the principal amount of the Note. There were no amounts outstanding under the Revolving Canadian Loan as of September 30, 2022 and December 31, 2021. The Canadian Loan Agreement also contains customary representations and warranties, and affirmative and negative covenants, including, among others, limitations on additional indebtedness, entry into new lines of business, entry into guarantee agreements, making of any loans or advances to, or investments in, any other person, restrictions on liens on the assets of the Canadian Borrowers and mergers, transfers of assets and acquisitions. The Canadian Loan Agreement and Note also contain customary events of default that include, among others, non-payment of principal, interest or fees, violation of covenants, inaccuracy of representations and warranties, failure to make payment on, or defaults with respect to, certain other material indebtedness, bankruptcy and insolvency events, material judgments and change of control provisions. Upon the occurrence of an event of default, and after the expiration of any applicable grace period, payment of any outstanding loans under the Canadian Loan Agreement may be accelerated. Interest Rate Swaps In September 2021, we entered into an interest rate swap agreement to hedge forecasted monthly interest rate payments on our floating rate debt. As of September 30, 2022, we had the following interest rate swap agreement (the “Swap Agreement”): ​ ​ ​ ​ ​ ​ ​ Effective date Notional amount Fixed rate September 30, 2021 through July 23, 2026 $ 100,000 0.875 % ​ Under the terms of the Swap Agreement, we receive payments based on the 1-month LIBOR (approximately 3.12% as of September 30, 2022). During the nine months ended September 30, 2022, there were no interest rate swap agreements that expired. We entered into the Swap Agreement to convert a portion of the interest rate exposure on our floating rate debt from variable to fixed. We designated this Swap Agreement as a cash flow hedge. A portion of the amount included in accumulated other comprehensive loss is reclassified into interest expense, net as a yield adjustment as interest is either paid or received on the hedged debt. The fair value of our Swap Agreement is based upon Level 2 inputs. We have considered our own credit risk and the credit risk of the counterparties when determining the fair value of our Swap Agreement. It is our policy to execute such instruments with creditworthy banks and not to enter into derivative financial instruments for speculative purposes. We believe our interest rate swap counterparty will be able to fulfill their obligations under our agreement, and we believe we will have debt outstanding through the expiration date of the swap such that the occurrence of future cash flow hedges remains probable. The estimated fair value of our Swap Agreement in the consolidated balance sheets was as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance sheet accounts September 30, 2022 December 31, 2021 Other current assets ​ $ 3,190 ​ $ — Other assets ​ $ 6,438 ​ $ 1,607 Accrued liabilities ​ $ — ​ $ 389 ​ A cumulative gain, net of tax, of $7,221 and $913 as of September 30, 2022 and December 31, 2021, respectively, is recorded in accumulated other comprehensive loss. The amount of gain, net of tax recognized in other comprehensive income for the three and nine months ended September 30, 2022 was $2,350 and $6,414. There was $252 and $106 reclassified from accumulated other comprehensive loss into earnings for the three and nine months ended September 30, 2022, respectively. As of September 30, 2022, approximately $3,207 is expected to be reclassified from accumulated other comprehensive loss into interest expense over the next 12 months.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Sep. 30, 2022
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES	7. COMMITMENTS AND CONTINGENCIES Legal Proceedings In March 2020, the Company settled an administrative enforcement action filed by the U.S. Federal Trade Commission (“FTC”) relating to Company’s sale of VieVu, LLC to Axon Enterprise Inc. (“Axon”) wherein the FTC alleged that the operative agreements contained non-compete and non-solicitation provisions in violation of Section 5 of the Federal Trade Commission Act, as amended, 15 U.S.C. § 45, and Section 7 of the Clayton Act, as amended, 15 U.S.C. § 18. The FTC’s administrative complaint sought only injunctive relief against the Company to enjoin the enforcement of these provisions, now and in the future, and did not seek monetary damages against the Company. In January 2020, the Company and Axon had rescinded these provisions. Pursuant to a consent agreement and proposed consent order entered into by the FTC and the Company, on June 11, 2020, the FTC issued a Decision and Order accepting the Consent Agreement (the “Order”). Under the Order, the Company agreed to not modify and reinstate the rescinded provisions and to not enter into any new similar provisions with Axon, absent prior approval from the FTC. In addition, as part of the Company’s compliance program, the Order imposes an obligation to distribute to, and train the directors and officers on, the requirements of the consent order and to report annually for five years to the FTC ensuring compliance with the consent order. On July 10, 2020, the Company filed its Interim Verified Compliance Report and, thereafter, on June 11, 2021 and June 10, 2022, filed its Annual Compliance Reports, each as required by the Order In June 2020, the Company received a Civil Investigative Demand (“CID”) from the United States Department of Justice (“DOJ”), Western District of Washington (Seattle, WA), pertaining to a False Claims Act investigation, 31 U.S.C, sections 3729-3733 (“FCA”), concerning allegations that soft body armor vest accessory panels sold by the Company are falsely labeled as compliant with the National Institute of Justice performance standards. In September 2020, the Company made its First Production of Documents which contained only documents and data that had been deemed to be of a “priority” nature pursuant to an agreement reached between the Company’s counsel and the Assistant U.S. Attorney handling the matter. In July 2021, the Company received a request for additional information relating to the subject matter of the investigation, with which the Company complied. In October 2021, November 2021 and December 2021, the Company produced additional documents responsive to the correspondence containing requests for specific documents and supplemental information. At this preliminary stage of the investigation, the Company does not have enough information to make an evaluation of the merits, exposure or potential risks regarding this matter. In September 2021, Safariland, LLC, a wholly-owned subsidiary of the Company, received a jury verdict awarding $7,500 to a plaintiff relating to a personal injury case wherein the plaintiff alleged various product liability claims against Safariland, LLC. The plaintiff in the proceeding, Mr. David Hakim, instituted the proceeding on July 24, 2015, through the filing of a complaint with the United States District Court, Northern District of Illinois, Eastern Division. In the proceeding, the plaintiff, a SWAT officer with the DuPage County Sheriff’s Office (“DCSO”), alleged that he suffered injuries during a training exercise conducted by DCSO in which a Defense Technology Shotgun Breaching TKO round was deployed and passed through a door and lower-floor ceiling causing a fragment to strike plaintiff’s back resulting in injury. Prior to the jury rendering its verdict, the court deferred ruling on Safariland, LLC’s Motion for Judgment as a Matter of Law (“JMOL”). On November 8, 2021, Safariland, LLC filed its post-trial motions, including a supplemental JMOL, motion for new trial and remittitur. On April 18, 2022, the court denied Safariland, LLC’s JMOL, motion for new trial and remittitur and, accordingly, entered a judgment in favor of plaintiff, David Hakim, as to the Third Claim. In response, Safariland, LLC timely filed its notice of appeal with the United States Court of Appeals for the Seventh Circuit. Safariland and Plaintiff have filed their appeal briefs, and oral arguments were held on October 25, 2022. While any litigation contains an eleme nt of uncertainty, the Company believes it is reasonably possible, not probable, that the Company could incur losses related to this case, however, any losses would be indemnified by our insurance carrier under applicable policies The Company is also involved in various legal disputes and other legal proceedings and claims that arise from time to time in the ordinary course of business. The Company vigorously defends itself against all lawsuits and evaluates the amount of reasonably possible losses that the Company could incur as a result of these matters. While any litigation contains an element of uncertainty, the Company believes that the reasonably possible losses that the Company could incur in excess of insurance coverage would not have a material adverse effect on the Company’s consolidated financial position, results of operations, or liquidity. Insurance The Company has various insurance policies, including product liability insurance, covering risks and in amounts it considers adequate. There can be no assurance that the insurance coverage maintained by the Company is sufficient or will be available in adequate amounts or at a reasonable cost. International As an international company, we are, from time to time, the subject of investigations relation to the Company’s international operations, including under U.S. export control laws (such as ITAR), the FCPA and other similar U.S. and international laws. To the best of the Company’s knowledge, there are not any potential or pending investigations at this time. Leases The Company leases office, warehouse, and distribution space under non-cancelable operating leases. As leases expire, it can be expected that, in the normal course of business, certain leases will be renewed or replaced. Our leases generally contain multi-year renewal options and escalation clauses. Total rent expense of the Company for the three months ended September 30, 2022 and 2021 was $1,200 and $1,174, respectively, and for the nine months ended September 30, 2022 and 2021 was $3,602 and $3,499, respectively. Future minimum lease payments required under non-cancelable operating leases that have initial or remaining non-cancelable lease terms in excess of one year for the remaining three months of 2022, the next four years and thereafter are as follows: ​ ​ ​ ​ ​ Remainder of 2022 ​ $ 1,188 2023 ​ 4,368 2024 ​ 3,101 2025 ​ 1,628 2026 ​ 675 Thereafter ​ 142 Total minimum lease payments ​ $ 11,102 ​ There were no material future minimum sublease payments to be received under non-cancelable subleases as of September 30, 2022. There was no material sublease income for the three and nine months ended September 30, 2022 and 2021.

INCOME TAXES

INCOME TAXES	9 Months Ended
	Sep. 30, 2022
INCOME TAXES
INCOME TAXES	8. INCOME TAXES The Company and its subsidiaries file income tax returns in the U.S. federal, various state and local, and certain foreign jurisdictions. As of September 30, 2022, the Company’s tax years subsequent to 2016 are subject to examination by tax authorities with few exceptions. During the nine months ended September 30, 2022, one of the Company’s Canadian subsidiaries concluded an examination of its tax filings for the period June 1, 2016 through December 31, 2017 that resulted in no changes to the filings or the amount of tax due. The 2018 and 2019 tax returns of a separate Canadian subsidiary are currently under examination by the Canadian Revenue Agency. In assessing the realizability of deferred tax assets, the Company performs a quarterly evaluation of whether it is more likely than not that some portion or all of the deferred income tax assets will not be realized. During the course of this evaluation, the Company considers all available positive and negative evidence and if, based upon the weight of available evidence, it is more likely than not the deferred tax assets will not be realized, a valuation allowance is recorded. Based on the Company’s evaluation, a valuation allowance of $1,890 has been recorded as of September 30, 2022. The Company’s effective tax rate for the three months ended September 30, 2022 and 2021 was 28.4% and 28.6%, respectively, and 76.5% and 31.6% for the nine months ended September 30, 2022 and 2021, respectively. Our effective tax rate for the three and nine months ended September 30, 2022 and 2021 differs from our statutory rate primarily due to nondeductible executive compensation.

COMPENSATION PLANS

COMPENSATION PLANS	9 Months Ended
	Sep. 30, 2022
COMPENSATION PLANS
COMPENSATION PLANS	9. COMPENSATION PLANS Long-Term Incentive Plan In March 2021, the Company initiated a cash-based long-term incentive plan. Each award granted under the plan shall be eligible to vest in three equal annual installments over a period of three consecutive one-year performance periods, with each installment of the award vesting on the last day of the applicable performance period, subject to the achievement of the performance metrics established by the board of directors for the applicable annual performance period. Compensation expense related to this plan was $375 and $524 for the three months ended September 30, 2022 and 2021, respectively, and $933 and $1,804 for the nine months ended September 30, 2022 and 2021, respectively, and is . On March 9, 2022, the Company’s board of directors approved the common stock settlement of vested awards of the long-term incentive plan. The board of directors also approved the future settlement of unvested awards in common stock. Modification accounting was not applied as this change did not affect the fair value of the awards, vesting conditions, or the liability classification of the awards. Executive Compensation Plan The Company maintains a cash-based executive compensation plan for certain employees. The Company’s board of directors awarded 1,433,500 (split-adjusted) interests in the plan (“units”). Each unit represents an unfunded and unsecured right, subject to certain conditions as set forth by the plan. One-third of the units granted to any holder will vest on each of the first, second, and third anniversaries of March 18, 2021 during the term of such holder’s employment with the Company. Payment of a holder’s vested balance is dependent upon a transaction or series of related transactions constituting a qualifying exit event, as defined by the executive compensation plan. The plan will expire on March 18, 2025, at which time the plan and all awarded units will be terminated for no consideration if a qualifying exit event has not occurred before that date. If a qualifying exit event becomes probable, the fair value of the units would be the closing stock price of the Company on the day the qualifying exit event becomes probable and compensation expense would be recognized at that time On March 9, 2022, the Company’s board of directors modified the performance condition, specifically the definition of a qualifying exit event, in the cash-based executive compensation plan. In addition, the board of directors approved the settlement of the majority of vested and unvested units in common stock rather than cash, which resulted in a change in classification of those outstanding units from liability to equity. As a result, modification of the units occurred on March 9, 2022 with a grant date fair value of $23.45 , the closing stock price of the Company on the date of modification. There were 632,500 units that vested on March 18, 2022 and 801,000 units that will vest in equal amounts on the second and third anniversaries of the plan. The Company recognized compensation expense of $22,100 in selling, general and administrative in the on the modification date. Unrecognized compensation expense related to the unvested units was $11,516 as of the modification date. Stock Incentive Plan On March 9, 2022, the Company’s board of directors granted 85,108 restricted stock awards (“RSAs”) and issued 309,479 stock options under the Cadre Stock Incentive Plan. The RSAs will vest in three equal installments over a three-year period from the date of grant and have a grant date fair value of $23.45 , the closing stock price of the Company on the date of grant. The options issued will vest and become exercisable in equal installments over a three-year period from the date of grant and expire ten years from the date of the grant. The fair value of the options has been estimated as of the grant date using the Black-Scholes option-pricing model and resulted in a grant date fair value of approximately $6.72 per option.

ASSETS AND LIABILITIES HELD FOR

ASSETS AND LIABILITIES HELD FOR SALE	9 Months Ended
	Sep. 30, 2022
ASSETS AND LIABILITIES HELD FOR SALE
ASSETS AND LIABILITIES HELD FOR SALE	10. ASSETS AND LIABILITIES HELD FOR SALE In October 2021, the Company designated our Daventry, UK facility as held for sale. Accordingly, during 2021, the Company determined that the assets and liabilities associated with the Daventry facility met the criteria for classification as held for sale but did not meet the criteria for classification as discontinued operations as the deconsolidation did not represent a strategic shift in the business. Total assets and liabilities associated with the Daventry facility were $225 and $91 , respectively, and are presented in our consolidated balance sheet as of September 30, 2022 as current assets held for sale and current liabilities held for sale, respectively. The Company is actively marketing this facility and expects to complete the sale of this facility in 2022

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	9 Months Ended
	Sep. 30, 2022
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS	11. RELATED PARTY TRANSACTIONS The Company leases 4 distribution warehouses and retail stores from certain employees. The Company recorded rent expense related to these leases of $112 and $142 for the three months ended September 30, 2022 and 2021, respectively, and $346 and $437 for the nine months ended September 30, 2022 and 2021, respectively. Rent expense related to these leases is included in related party expense in the Company’s consolidated statements of operations and comprehensive income (loss). During the nine months ended September 30, 2022, the Company made the following payments to Kanders & Company, Inc., a company controlled by Warren Kanders, our Chief Executive Officer: ● $1,000 for services related to the acquisition of Cyalume, which is included in related party expense in the Company’s consolidated statements of operations and comprehensive income (loss). ● $2,000 for services related to the Company’s secondary offering, which is included in direct offering costs and recorded against offering proceeds in additional paid in capital in the Company’s consolidated balance sheets .

SEGMENT DATA

SEGMENT DATA	9 Months Ended
	Sep. 30, 2022
SEGMENT DATA
SEGMENT DATA	12. SEGMENT DATA Our operations are comprised of two reportable segments: Products and Distribution. Segment information is consistent with how the chief operating decision maker (“CODM”), our chief executive officer, reviews the business, makes investing and resource allocation decisions and assesses operating performance. The CODM is not provided asset information or operating expenses by segment. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine months ended September 30, 2022 ​ ​ ​ ​ ​ ​ ​ ​ Reconciling ​ ​ ​ ​ Products Distribution Items (1) Total Net sales $ 277,941 $ 73,836 ​ $ (17,585) $ 334,192 Cost of goods sold ​ ​ 166,192 ​ $ 58,437 ​ $ (17,587) ​ ​ 207,042 Gross profit ​ $ 111,749 ​ $ 15,399 ​ $ 2 ​ $ 127,150 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine months ended September 30, 2021 ​ ​ ​ ​ ​ ​ ​ ​ Reconciling ​ ​ ​ ​ Products Distribution Items (1) Total Net sales $ 274,039 $ 69,086 $ (19,374) $ 323,751 Cost of goods sold ​ ​ 159,924 ​ ​ 51,696 ​ ​ (19,364) ​ ​ 192,256 Gross profit ​ $ 114,115 ​ $ 17,390 ​ $ (10) ​ $ 131,495 (1)

SIGNIFICANT ACCOUNTING POLICI_2

SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Sep. 30, 2022
SIGNIFICANT ACCOUNTING POLICIES
Nature of Operations	Nature of Operations Cadre Holdings, Inc., D/B/A The Safariland Group (the “Company”, “Cadre”, “we”, “us”, and “our”), a Delaware corporation, began operations on April 12, 2012. The Company, headquartered in Jacksonville, Florida, is a global leader in manufacturing and distributing safety and survivability products and other related products for the law enforcement, first responder and military markets. The business operates through 16 manufacturing plants within the U.S., Mexico, Canada, the United Kingdom, Italy, France, and Lithuania, and sells its products worldwide through its direct sales force, distribution channel and distribution partners, online stores, and third-party resellers.
Principles of Consolidation and Basis of Presentation	Principles of Consolidation and Basis of Presentation The accompanying consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States ("GAAP") and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting, and include the accounts of the Company, its wholly owned subsidiaries, and other entities consolidated as required by GAAP. Accordingly, they do not include all of the information and footnotes required by GAAP for annual audited financial statements. The unaudited interim consolidated financial statements have been prepared on a basis consistent with the audited consolidated financial statements and include all adjustments, which are normal and recurring in nature, necessary for fair financial statement presentation. These interim consolidated financial statements and notes thereto should be read in conjunction with the Company’s most recently completed annual consolidated financial statements. All adjustments considered necessary for a fair presentation have been included. All intercompany transactions have been eliminated in consolidation.
Stock Split	Stock Split In July 2021, the Company effected a 50-for-1
Secondary Offering	Secondary Offering On June 9, 2022, the Company completed a secondary offering in which the Company issued and sold 2,250,000 shares of common stock at a price of $23.50 per share. The Company’s net proceeds from the sale of shares were $46,987 after underwriter discounts and commissions, fees and expenses of $2,715 , of which $2,000 was paid to Kanders & Company, Inc., a company controlled by Warren Kanders, our Chief Executive Officer On July 14, 2022, the underwriters exercised a portion of their over-allotment option and purchased an additional 300,000 shares of common stock at a price of $23.50 per share, resulting in net proceeds to the Company of $6,389 after underwriter discounts and commissions, fees and expenses of $661 .
Emerging Growth Company	Emerging Growth Company We are an “emerging growth company,” as defined in the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”). As such, we are eligible for exemptions from various reporting requirements applicable to other public companies that are not emerging growth companies, including, but not limited to, presenting only two years of audited financial statements, not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act of 2002, reduced disclosure obligations regarding executive compensation, and an exemption from the requirements to obtain a non-binding advisory vote on executive compensation or golden parachute arrangements. In addition, an emerging growth company can take advantage of an extended transition period for complying with new or revised accounting standards. This provision allows an emerging growth company to delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. We have elected to avail ourselves of this provision of the JOBS Act. As a result, we may not be subject to new or revised accounting standards at the same time as other public companies that are not emerging growth companies. Therefore, our consolidated financial statements may not be comparable to those of companies that comply with new or revised accounting pronouncements as of public company effective dates.
Use of Estimates	Use of Estimates The preparation of these consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from these estimates. The presentation of revenue by channel previously reported in the notes to the consolidated financial statements has been reclassified to conform to the current financial statement presentation.
Fair Value Measurements	Fair Value Measurements The Company follows the guidance of Accounting Standards Codification (“ASC”) Topic 820, Fair Value Measurements and Disclosures, Level 1: Observable inputs that reflect unadjusted quoted prices for identical assets or liabilities traded in active markets. Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. Level 3: Unobservable inputs that reflect assumptions about what market participants would use in pricing assets or liabilities based on the best information available. The Company’s financial instruments consist principally of cash, accounts receivable, prepaid expenses, other current assets, accounts payable, accrued liabilities, income tax payable and debt. The carrying amounts of certain of these financial instruments, including cash, accounts receivable, prepaid expenses, other current assets, accounts payable, accrued liabilities and income tax payable approximate their current fair value due to the relatively short-term nature of these accounts. The following table presents our fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2022 ​ December 31, 2021 ​ ​ Carrying ​ Fair Value ​ Carrying ​ Fair Value ​ amount ​ Level 1 ​ Level 2 ​ Level 3 amount ​ Level 1 ​ Level 2 ​ Level 3 Assets: ​ ​ ​ ​ ​ ​ ​ ​ Interest rate swap (Note 6) ​ $ 9,628 ​ $ — ​ $ 9,628 ​ $ — ​ $ 1,607 ​ $ — ​ $ 1,607 ​ $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest rate swap (Note 6) ​ $ — ​ $ — ​ $ — ​ $ — ​ $ 389 ​ $ — ​ $ 389 ​ $ — ​ There were no transfers of assets or liabilities between levels during the nine months ended September 30, 2022 and 2021. The carrying value of our long-term debt obligations approximates the fair value, as the long-term debt was entered into recently and contains a floating interest rate component.
Goodwill and Other Intangible Assets	Goodwill and Other Intangible Assets The Company tests goodwill and intangible assets determined to have indefinite useful lives for impairment annually, or more frequently if events or circumstances indicate that assets might be impaired. The Company performs these annual impairment tests as of October 31 st In evaluating goodwill for impairment, qualitative factors are considered to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. Some of these qualitative factors may include macroeconomic conditions, industry and market considerations, a change in financial performance, or entity-specific events. If, through this qualitative assessment, the conclusion is made that it is more likely than not that a reporting unit’s fair value is less than its carrying amount, the Company performs a two-step goodwill impairment test. The first step involves a comparison of the fair value of a reporting unit to its carrying value. If the carrying amount of the reporting unit exceeds its fair value, the second step of the process is performed, which compares the implied value of the reporting unit goodwill with the carrying value of the goodwill of that reporting unit. If the carrying value of the goodwill of a reporting unit exceeds the implied fair value of that goodwill, an impairment loss is recognized in an amount equal to that excess. The Company determines the fair value of its reporting units based on a combination of the income approach and market approach, weighted based on the circumstances. Both values are discounted using a rate that reflects the Company’s best estimate of the weighted average cost of capital of a market participant and is adjusted for appropriate risk factors.
Revenue Recognition	Revenue Recognition The Company derives revenue primarily from the sale of physical products. The Company recognizes revenue when a contract exists with a customer that specifies the goods and services to be provided at an agreed upon sales price and when the performance obligation is satisfied by transferring the goods or service to the customer. The performance obligation is considered satisfied when control transfers, which is generally determined when products are shipped or delivered to the customer but could be delayed until the receipt of customer acceptance, depending on the terms of the contract. Sales are made on normal and customary short-term credit terms or upon delivery for point of sale transactions. The Company enters into contractual arrangements primarily with customers in the form of individual customer orders which specify the goods, quantity, pricing, and associated order terms. The Company has some long-term contracts that may contain research and development performance obligations that are satisfied over time. The Company invoices the customer once the billing milestone is reached and collects under customary short-term credit terms. For long-term contracts, the Company recognizes revenue using the input method based on costs incurred, as this method is an appropriate measure of progress toward the complete satisfaction of the performance obligation. Due to uncertainties inherent in the estimation process, it is possible that estimates of costs to complete a performance obligation will be revised in the near-term. For those performance obligations for which revenue is recognized using a cost-to-cost input method, changes in total estimated costs, and related progress towards complete satisfaction of the performance obligation, are recognized on a cumulative catch-up basis in the period in which the revisions to the estimates are made. When the current estimate of total costs for a performance obligation indicates a loss, a provision for the entire estimated loss on the unsatisfied performance obligation is made in the period in which the loss becomes evident. At the time of revenue recognition, the Company also provides for estimated sales returns and miscellaneous claims from customers as reductions to revenues. The estimates are based on historical rates of product returns and claims. The Company accrues for such estimated returns and claims with an estimated accrual and associated reduction of revenue. Additionally, the Company records inventory that it expects to be returned as part of inventories, with a corresponding reduction to cost of goods sold. Charges for shipping and handling fees billed to customers are included in net sales and the corresponding shipping and handling expenses are included in cost of goods sold in the accompanying consolidated statements of operations and comprehensive income (loss). We consider our costs related to shipping and handling after control over a product has transferred to a customer to be a cost of fulfilling the promise to transfer the product to the customer. Sales commissions paid to employees as compensation are expensed as incurred for contracts with service periods less than a year. For contracts with service periods greater than a year, these costs are capitalized and amortized over the life of the contract. These costs are recorded in selling, general and administrative expenses in the Company’s consolidated statements of operations and comprehensive income (loss).
Product Warranty	Product Warranty Some of the Company’s manufactured products carry limited warranty provisions for defects in quality and workmanship. A warranty reserve is established at the time of sale to cover estimated costs based on the Company’s history of warranty repairs and replacements, and is recorded in cost of goods sold in the Company’s consolidated statements of operations and comprehensive income (loss). The following table sets forth the changes in the Company’s accrued warranties, which is recorded in accrued liabilities in the consolidated balance sheets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine months ended September 30, ​ 2022 2021 Beginning accrued warranty expense ​ $ 1,256 ​ $ 1,133 Current period claims ​ (398) ​ (236) Provision for current period sales ​ 339 ​ 256 Ending accrued warranty expense ​ $ 1,197 ​ $ 1,153
Net Income (loss) per Share	Net Income (Loss) per Share Basic income or loss per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding during the periods presented. Diluted income or loss per share is calculated by adjusting weighted average shares outstanding for the dilutive effect of potential common shares, determined using the treasury-stock method. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended September 30, Nine months ended September 30, ​ 2022 2021 2022 2021 Net income (loss) ​ $ 4,941 ​ $ (5,306) ​ $ (779) ​ $ 8,373 ​ ​ ​ ​ ​ Weighted average shares outstanding - basic ​ 37,289,880 ​ 27,483,350 ​ 35,697,891 ​ 27,483,350 Effect of dilutive securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Stock-based awards ​ ​ 457,734 ​ ​ — ​ ​ — ​ ​ — Weighted average shares outstanding - diluted ​ 37,747,613 ​ 27,483,350 ​ 35,697,891 ​ 27,483,350 Net income (loss) per share: ​ ​ ​ ​ Basic ​ $ 0.13 ​ $ (0.19) ​ $ (0.02) ​ $ 0.30 Diluted ​ $ 0.13 ​ $ (0.19) ​ $ (0.02) ​ $ 0.30 ​ For the nine months ended September 30, 2022, 7,363 restricted stock awards were excluded from diluted weighted average shares outstanding because the impact would be anti-dilutive due to a net loss in the period. There were no dilutive instruments outstanding for the three and nine months ended September 30, 2021.
Recent Accounting Pronouncements	Recent Accounting Pronouncements Adopted Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) lease liability January 1, 2022 Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326) Measurement of Credit Losses on Financial Instruments. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes There were no other new accounting standards that the Company expects to have a potential material impact to the financial position or results of operations upon adoption.

SIGNIFICANT ACCOUNTING POLICI_3

SIGNIFICANT ACCOUNTING POLICIES (Tables)	9 Months Ended
	Sep. 30, 2022
SIGNIFICANT ACCOUNTING POLICIES
Summary of fair value hierarchy for assets and liabilities measured at fair value on a recurring basis	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2022 ​ December 31, 2021 ​ ​ Carrying ​ Fair Value ​ Carrying ​ Fair Value ​ amount ​ Level 1 ​ Level 2 ​ Level 3 amount ​ Level 1 ​ Level 2 ​ Level 3 Assets: ​ ​ ​ ​ ​ ​ ​ ​ Interest rate swap (Note 6) ​ $ 9,628 ​ $ — ​ $ 9,628 ​ $ — ​ $ 1,607 ​ $ — ​ $ 1,607 ​ $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest rate swap (Note 6) ​ $ — ​ $ — ​ $ — ​ $ — ​ $ 389 ​ $ — ​ $ 389 ​ $ —
Summary of changes in the accrued warranties and related costs	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine months ended September 30, ​ 2022 2021 Beginning accrued warranty expense ​ $ 1,256 ​ $ 1,133 Current period claims ​ (398) ​ (236) Provision for current period sales ​ 339 ​ 256 Ending accrued warranty expense ​ $ 1,197 ​ $ 1,153
Summary of calculation of weighted average shares outstanding and net income (loss) per share	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended September 30, Nine months ended September 30, ​ 2022 2021 2022 2021 Net income (loss) ​ $ 4,941 ​ $ (5,306) ​ $ (779) ​ $ 8,373 ​ ​ ​ ​ ​ Weighted average shares outstanding - basic ​ 37,289,880 ​ 27,483,350 ​ 35,697,891 ​ 27,483,350 Effect of dilutive securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Stock-based awards ​ ​ 457,734 ​ ​ — ​ ​ — ​ ​ — Weighted average shares outstanding - diluted ​ 37,747,613 ​ 27,483,350 ​ 35,697,891 ​ 27,483,350 Net income (loss) per share: ​ ​ ​ ​ Basic ​ $ 0.13 ​ $ (0.19) ​ $ (0.02) ​ $ 0.30 Diluted ​ $ 0.13 ​ $ (0.19) ​ $ (0.02) ​ $ 0.30

ACQUISITIONS (Tables)

ACQUISITIONS (Tables)	9 Months Ended
	Sep. 30, 2022
Radar
ACQUISITIONS
Schedule of total consideration	​ ​ ​ ​ ​ Cash paid $ 20,844 Less: cash acquired ​ (1,479) Total consideration, net ​ $ 19,365
Summary of total purchase price consideration and preliminary fair value amounts recognized for assets acquired and liabilities assumed	​ ​ ​ ​ ​ Total consideration, net $ 19,365 ​ ​ ​ ​ Accounts receivable ​ $ 2,347 Inventories ​ ​ 2,500 Prepaid expenses ​ ​ 682 Other current assets ​ ​ 612 Property and equipment ​ ​ 3,053 Intangible assets ​ ​ 10,200 Goodwill ​ ​ 6,289 Total assets acquired ​ ​ 25,683 Accounts payable ​ ​ 1,120 Deferred tax liabilities ​ ​ 2,548 Accrued liabilities ​ ​ 2,106 Long-term debt ​ ​ 544 Total liabilities assumed ​ ​ 6,318 Net assets acquired ​ $ 19,365
Schedule of acquired intangible assets	​ ​ ​ ​ ​ ​ ​ ​ ​ Gross Average Useful Life Customer relationships ​ $ 9,300 ​ ​ 15 Technology ​ ​ 600 ​ 10 Trademarks ​ ​ 300 ​ ​ 7 Total ​ $ 10,200 ​ ​ ​
Cyalume
ACQUISITIONS
Schedule of total consideration	​ ​ ​ ​ ​ Cash paid $ 37,508 Less: cash acquired ​ (1,834) Total consideration, net ​ $ 35,674
Summary of total purchase price consideration and preliminary fair value amounts recognized for assets acquired and liabilities assumed	​ ​ ​ ​ ​ Total consideration, net $ 35,674 ​ ​ ​ ​ Accounts receivable ​ $ 3,302 Inventories ​ ​ 10,908 Prepaid expenses ​ ​ 255 Other current assets ​ ​ 10 Property and equipment ​ ​ 11,701 Intangible assets ​ ​ 8,300 Goodwill ​ ​ 6,641 Total assets acquired ​ ​ 41,117 Accounts payable ​ ​ 1,080 Deferred tax liabilities ​ ​ 2,497 Accrued liabilities ​ ​ 1,578 Other long-term liabilities ​ ​ 288 Total liabilities assumed ​ ​ 5,443 Net assets acquired ​ $ 35,674
Schedule of acquired intangible assets	​ ​ ​ ​ ​ ​ ​ ​ ​ Gross Average Useful Life Customer relationships ​ $ 3,900 ​ ​ 15 Technology ​ ​ 3,600 ​ 10 Trademarks ​ ​ 800 ​ ​ Indefinite Total ​ $ 8,300 ​ ​ ​

REVENUE RECOGNITION (Tables)

REVENUE RECOGNITION (Tables)	9 Months Ended
	Sep. 30, 2022
REVENUE RECOGNITION
Summary of disaggregation of net sales by channel and geography	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended September 30, ​ Nine months ended September 30, ​ 2022 2021 2022 2021 U.S. state and local agencies (a) ​ $ 64,359 ​ $ 55,559 ​ $ 188,724 ​ $ 177,221 Commercial ​ 11,211 ​ 7,669 ​ 33,572 ​ 29,263 U.S. federal agencies ​ 16,652 ​ 11,286 ​ 34,014 ​ 37,368 International ​ 18,264 ​ 22,613 ​ 74,789 ​ 74,647 Other ​ 1,068 ​ 1,527 ​ 3,093 ​ 5,252 Net sales ​ $ 111,554 ​ $ 98,654 ​ $ 334,192 ​ $ 323,751 ​ (a) Includes all Distribution sales ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended September 30, ​ Nine months ended September 30, ​ ​ 2022 2021 2022 2021 United States ​ $ 93,290 ​ $ 76,041 ​ $ 259,403 ​ $ 249,104 ​ International ​ 18,264 ​ 22,613 ​ 74,789 ​ 74,647 ​ ​ ​ $ 111,554 ​ $ 98,654 ​ $ 334,192 ​ $ 323,751 ​

INVENTORIES (Tables)

INVENTORIES (Tables)	9 Months Ended
	Sep. 30, 2022
INVENTORIES
Summary of inventories stated at lower of cost or net realizable value	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2022 December 31, 2021 Finished goods ​ $ 29,992 ​ $ 28,707 Work-in-process ​ 8,941 ​ 4,053 Raw materials and supplies ​ 40,313 ​ 31,218 ​ ​ $ 79,246 ​ $ 63,978

GOODWILL AND OTHER INTANGIBLE_2

GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)	9 Months Ended
	Sep. 30, 2022
GOODWILL AND OTHER INTANGIBLE ASSETS
Summary of changes in goodwill	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Products Distribution Total Balance, December 31, 2021 ​ $ 63,646 ​ $ 2,616 ​ $ 66,262 Radar acquisition ​ ​ 6,711 ​ ​ — ​ ​ 6,711 Foreign currency translation adjustments ​ (463) ​ — ​ (463) Balance, March 31, 2022 ​ $ 69,894 ​ $ 2,616 ​ $ 72,510 Radar acquisition measurement period adjustment ​ ​ (422) ​ ​ — ​ ​ (422) Cyalume acquisition ​ ​ 6,641 ​ ​ — ​ ​ 6,641 Foreign currency translation adjustments ​ ​ (702) ​ ​ — ​ ​ (702) Balance, June 30, 2022 ​ $ 75,411 ​ $ 2,616 ​ $ 78,027 Foreign currency translation adjustments ​ ​ (831) ​ ​ — ​ ​ (831) Balance, September 30, 2022 ​ $ 74,580 ​ $ 2,616 ​ $ 77,196
Summary of intangible assets	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2022 ​ ​ ​ ​ ​ ​ ​ Weighted ​ ​ ​ ​ ​ ​ Accumulated ​ ​ ​ ​ Average ​ ​ Gross ​ ​ amortization ​ ​ Net Useful Life Definite lived intangibles: ​ ​ ​ Customer relationships ​ $ 84,445 $ (57,160) $ 27,285 11 Technology ​ 15,649 (11,213) 4,436 8 Tradenames ​ 6,244 (3,857) 2,387 4 Non-compete agreements ​ 922 (922) — 4 ​ ​ $ 107,260 $ (73,152) $ 34,108 ​ ​ Indefinite lived intangibles: ​ Tradenames ​ 17,410 — 17,410 Indefinite Total ​ $ 124,670 $ (73,152) $ 51,518 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2021 ​ ​ ​ ​ ​ ​ ​ Weighted ​ ​ ​ ​ ​ ​ Accumulated ​ ​ ​ ​ Average ​ ​ Gross ​ ​ amortization ​ ​ Net Useful Life Definite lived intangibles: ​ ​ ​ Customer relationships ​ $ 74,078 ​ $ (52,536) $ 21,542 11 Technology ​ 11,978 (10,988) 990 7 Tradenames ​ 6,473 (3,264) 3,209 4 Non-compete agreements ​ 1,037 (1,037) — 4 ​ ​ $ 93,566 $ (67,825) $ 25,741 ​ ​ Indefinite lived intangibles: ​ Tradenames ​ 16,674 — 16,674 Indefinite Total ​ $ 110,240 $ (67,825) $ 42,415
Summary of estimated amortization expense for finite lived intangible assets	​ ​ ​ ​ ​ Remainder of 2022 $ 1,910 2023 ​ 7,735 2024 ​ 4,853 2025 ​ 2,934 2026 ​ 2,543 Thereafter ​ 14,133 ​ ​ $ 34,108

DEBT (Tables)

DEBT (Tables)	9 Months Ended
	Sep. 30, 2022
DEBT
Schedule of company's debt	​ ​ ​ ​ ​ ​ ​ ​ September 30, 2022 December 31, 2021 Short-term debt: ​ ​ Insurance premium financing ​ $ 3,285 ​ $ 3,174 Current portion of term loan ​ 10,000 ​ 10,000 ​ ​ $ 13,285 ​ $ 13,174 Long-term debt: ​ ​ Revolver ​ — ​ — Term loan ​ 141,064 ​ 148,564 Other ​ 466 ​ — ​ ​ $ 141,530 ​ $ 148,564 Unamortized debt discount and debt issuance costs ​ (1,712) ​ (2,048) Total long-term debt, net ​ $ 139,818 ​ $ 146,516
Summary of aggregate principal payments of long-term debt	​ ​ ​ ​ Remainder of 2022 $ 2,500 2023 ​ 10,000 2024 ​ 10,116 2025 ​ 10,116 2026 ​ 118,680 Thereafter ​ 118 Total principal payments ​ $ 151,530
Schedule of Interest rate swaps	​ ​ ​ ​ ​ ​ ​ Effective date Notional amount Fixed rate September 30, 2021 through July 23, 2026 $ 100,000 0.875 %
Schedule of fair value swap agreement	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance sheet accounts September 30, 2022 December 31, 2021 Other current assets ​ $ 3,190 ​ $ — Other assets ​ $ 6,438 ​ $ 1,607 Accrued liabilities ​ $ — ​ $ 389

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	9 Months Ended
	Sep. 30, 2022
COMMITMENTS AND CONTINGENCIES
Summary of future minimum lease payments required under non-cancelable operating leases	​ ​ ​ ​ ​ Remainder of 2022 ​ $ 1,188 2023 ​ 4,368 2024 ​ 3,101 2025 ​ 1,628 2026 ​ 675 Thereafter ​ 142 Total minimum lease payments ​ $ 11,102

SEGMENT DATA (Tables)

SEGMENT DATA (Tables)	9 Months Ended
	Sep. 30, 2022
SEGMENT DATA
Summary of segment data	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine months ended September 30, 2022 ​ ​ ​ ​ ​ ​ ​ ​ Reconciling ​ ​ ​ ​ Products Distribution Items (1) Total Net sales $ 277,941 $ 73,836 ​ $ (17,585) $ 334,192 Cost of goods sold ​ ​ 166,192 ​ $ 58,437 ​ $ (17,587) ​ ​ 207,042 Gross profit ​ $ 111,749 ​ $ 15,399 ​ $ 2 ​ $ 127,150 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine months ended September 30, 2021 ​ ​ ​ ​ ​ ​ ​ ​ Reconciling ​ ​ ​ ​ Products Distribution Items (1) Total Net sales $ 274,039 $ 69,086 $ (19,374) $ 323,751 Cost of goods sold ​ ​ 159,924 ​ ​ 51,696 ​ ​ (19,364) ​ ​ 192,256 Gross profit ​ $ 114,115 ​ $ 17,390 ​ $ (10) ​ $ 131,495 (1)

SIGNIFICANT ACCOUNTING POLICI_4

SIGNIFICANT ACCOUNTING POLICIES - Additional Information (Details) $ / shares in Units, $ in Thousands			1 Months Ended	9 Months Ended
	Jul. 14, 2022 USD ($) $ / shares shares	Jun. 09, 2022 USD ($) $ / shares shares	Jul. 31, 2021	Sep. 30, 2022 USD ($) item
Nature of Operations and Basis of Presentation
Number of manufacturing plants | item				16
Stock Split
Stock split ratio			50
Kanders & Company, Inc
Stock Split
Underwriter discounts and commissions, fees and expenses		$ 2,000		$ 2,000
Secondary Offering
Stock Split
Number of shares issued | shares		2,250,000
Issue price | $ / shares		$ 23.50
Net proceeds from the sale of shares		$ 46,987
Underwriter discounts and commissions, fees and expenses		$ 2,715
Over-Allotment Option
Stock Split
Number of shares issued | shares	300,000
Issue price | $ / shares	$ 23.50
Net proceeds from the sale of shares	$ 6,389
Underwriter discounts and commissions, fees and expenses	$ 661

SIGNIFICANT ACCOUNTING POLICI_5

SIGNIFICANT ACCOUNTING POLICIES - Assets and liabilities measured at fair value on a recurring basis (Details) - Recurring - Interest Rate Swap - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Carrying amount
Assets:
Assets	$ 9,628	$ 1,607
Liabilities:
Liabilities:		389
Fair value | Level 2
Assets:
Assets	$ 9,628	1,607
Liabilities:
Liabilities:		$ 389

SIGNIFICANT ACCOUNTING POLICI_6

SIGNIFICANT ACCOUNTING POLICIES - Transfers of assets or liabilities (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
SIGNIFICANT ACCOUNTING POLICIES
Transfers between fair value measurement levels, amount	$ 0	$ 0

SIGNIFICANT ACCOUNTING POLICI_7

SIGNIFICANT ACCOUNTING POLICIES - Accrued warranties and related costs (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Changes in the Company's accrued warranties and related costs
Beginning accrued warranty expense	$ 1,256	$ 1,133
Current period claims	(398)	(236)
Provision for current period sales	339	256
Ending accrued warranty expense	$ 1,197	$ 1,153

SIGNIFICANT ACCOUNTING POLICI_8

SIGNIFICANT ACCOUNTING POLICIES - Weighted average shares outstanding and net income (loss) per share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Numerator for basic and diluted earnings per share:
Net income (loss)	$ 4,941	$ (5,306)	$ (779)	$ 8,373
Weighted average shares outstanding:
Weighted average shares outstanding - basic	37,289,880	27,483,350	35,697,891	27,483,350
Effect of dilutive securities:
Stock-based awards	457,734
Weighted average shares outstanding - diluted	37,747,613	27,483,350	35,697,891	27,483,350
Net income (loss) per share:
Basic	$ 0.13	$ (0.19)	$ (0.02)	$ 0.30
Diluted	$ 0.13	$ (0.19)	$ (0.02)	$ 0.30
Anti-dilutive instruments excluded		0		0
Restricted Stock
Net income (loss) per share:
Anti-dilutive instruments excluded			7,363

SIGNIFICANT ACCOUNTING POLICI_9

SIGNIFICANT ACCOUNTING POLICIES - Adopted Accounting Pronouncement (Details) - Accounting Standards Update 2016-02 $ in Thousands	Jan. 01, 2022 USD ($)
Minimum
Recent Accounting Pronouncements
Estimated right-of-use asset upon adoption of new accounting standard for annual period	$ 12,300
Estimated lease liability upon adoption of new accounting standard for annual period	12,300
Maximum
Recent Accounting Pronouncements
Estimated right-of-use asset upon adoption of new accounting standard for annual period	13,200
Estimated lease liability upon adoption of new accounting standard for annual period	$ 13,200

ACQUISITIONS - Summary - Radar

ACQUISITIONS - Summary - Radar (Details) - USD ($) $ in Thousands		9 Months Ended
	Jan. 11, 2022	Sep. 30, 2022
Total consideration, net of cash acquired:
Total consideration, net		$ 55,039
Radar
ACQUISITIONS
Total acquisition-related costs		627
Acquisition-related costs incurred during the period		$ 204
Percentage acquired	100%
Total consideration, net of cash acquired:
Cash paid	$ 20,844
Less: cash acquired	(1,479)
Total consideration, net	$ 19,365

ACQUISITIONS - Purchase Price C

ACQUISITIONS - Purchase Price Consideration and Fair Value - Radar (Details) - USD ($) $ in Thousands		3 Months Ended	9 Months Ended
	Jan. 11, 2022	Jun. 30, 2022	Sep. 30, 2022	Mar. 31, 2022	Dec. 31, 2021
Total purchase price consideration and preliminary fair value amounts recognized
Total consideration, net			$ 55,039
Goodwill		$ 78,027	77,196	$ 72,510	$ 66,262
Radar
ACQUISITIONS
Decrease in goodwill for revisions made to cash paid		$ 422	$ 422
Total purchase price consideration and preliminary fair value amounts recognized
Total consideration, net	$ 19,365
Accounts receivable	2,347
Inventories	2,500
Prepaid expenses	682
Other current assets	612
Property and equipment	3,053
Intangible assets	10,200
Goodwill	6,289
Total assets acquired	25,683
Accounts payable	1,120
Deferred tax liabilities	2,548
Accrued liabilities	2,106
Long-term debt	544
Total liabilities assumed	6,318
Net assets acquired	$ 19,365

ACQUISITIONS - Intangible Asset

ACQUISITIONS - Intangible Assets - Radar (Details) - Radar $ in Thousands	Jan. 11, 2022 USD ($)
ACQUISITIONS
Gross	$ 10,200
Goodwill, non-deductible for tax purposes	6,289
Customer relationships
ACQUISITIONS
Gross	$ 9,300
Average Useful Life	15 years
Technology
ACQUISITIONS
Gross	$ 600
Average Useful Life	10 years
Trademarks
ACQUISITIONS
Gross	$ 300
Average Useful Life	7 years

ACQUISITIONS - Summary - Cyalum

ACQUISITIONS - Summary - Cyalume (Details) - USD ($) $ in Thousands		3 Months Ended	9 Months Ended
	May 04, 2022	Sep. 30, 2022	Sep. 30, 2022
Total consideration, net of cash acquired:
Total consideration, net			$ 55,039
Cyalume
ACQUISITIONS
Acquisition-related costs incurred during the period		$ 870	$ 3,177
Percentage acquired	100%
Total consideration, net of cash acquired:
Cash paid	$ 37,508
Less: cash acquired	(1,834)
Total consideration, net	$ 35,674

ACQUISITIONS - Purchase Price_2

ACQUISITIONS - Purchase Price Consideration and Fair Value - Cyalume (Details) - USD ($) $ in Thousands		9 Months Ended
	May 04, 2022	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021
Total purchase price consideration and preliminary fair value amounts recognized
Total consideration, net		$ 55,039
Goodwill		$ 77,196	$ 78,027	$ 72,510	$ 66,262
Cyalume
Total purchase price consideration and preliminary fair value amounts recognized
Total consideration, net	$ 35,674
Accounts receivable	3,302
Inventories	10,908
Prepaid expenses	255
Other current assets	10
Property and equipment	11,701
Intangible assets	8,300
Goodwill	6,641
Total assets acquired	41,117
Accounts payable	1,080
Deferred tax liabilities	2,497
Accrued liabilities	1,578
Long-term debt	288
Total liabilities assumed	5,443
Net assets acquired	$ 35,674

ACQUISITIONS - Intangible Ass_2

ACQUISITIONS - Intangible Assets - Cyalume (Details) - Cyalume $ in Thousands	May 04, 2022 USD ($)
ACQUISITIONS
Gross	$ 8,300
Goodwill, non-deductible for tax purposes	6,641
Customer relationships
ACQUISITIONS
Gross	$ 3,900
Average Useful Life	15 years
Technology
ACQUISITIONS
Gross	$ 3,600
Average Useful Life	10 years
Trademarks
ACQUISITIONS
Gross	$ 800

REVENUE RECOGNITION - Net sales

REVENUE RECOGNITION - Net sales by channel and geography (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Revenue Recognition
Net sales	$ 111,554	$ 98,654	$ 334,192	$ 323,751
U.S. state and local agencies
Revenue Recognition
Net sales	64,359	55,559	188,724	177,221
Commercial
Revenue Recognition
Net sales	11,211	7,669	33,572	29,263
U.S. federal agencies
Revenue Recognition
Net sales	16,652	11,286	34,014	37,368
International
Revenue Recognition
Net sales	18,264	22,613	74,789	74,647
Other
Revenue Recognition
Net sales	$ 1,068	$ 1,527	$ 3,093	$ 5,252

REVENUE RECOGNITION - Includes

REVENUE RECOGNITION - Includes all Distribution sales (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Revenue Recognition
Net sales	$ 111,554	$ 98,654	$ 334,192	$ 323,751
United States
Revenue Recognition
Net sales	93,290	76,041	259,403	249,104
International.
Revenue Recognition
Net sales	$ 18,264	$ 22,613	$ 74,789	$ 74,647

REVENUE RECOGNITION - Contract

REVENUE RECOGNITION - Contract Liabilities (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2022	Dec. 31, 2021
REVENUE RECOGNITION
Contract liabilities, current	$ 6,216	$ 6,216	$ 10,949
Revenue recognized from amounts included in contract liabilities	$ 424	$ 7,640

REVENUE RECOGNITION - Additiona

REVENUE RECOGNITION - Additional information (Details) $ in Thousands	Sep. 30, 2022 USD ($)
Revenue Recognition
Remaining performance obligations	$ 19,427
Percentage of remaining performance obligations expect to recognize	58%
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-10-01
Revenue Recognition
Expected timing of satisfaction	12 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-10-01
Revenue Recognition
Expected timing of satisfaction	2 years

INVENTORIES (Details)

INVENTORIES (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
INVENTORIES
Finished goods	$ 29,992	$ 28,707
Work-in-process	8,941	4,053
Raw materials and supplies	40,313	31,218
Inventory Net	$ 79,246	$ 63,978

GOODWILL AND OTHER INTANGIBLE_3

GOODWILL AND OTHER INTANGIBLE ASSETS - Summary of changes in goodwill (Details) - USD ($) $ in Thousands	3 Months Ended			9 Months Ended
	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2022
Summary of changes in goodwill
Balance at beginning of period	$ 78,027	$ 72,510	$ 66,262	$ 66,262
Foreign currency translation adjustments	(831)	(702)	(463)
Balance at end of period	77,196	78,027	72,510	77,196
Products
Summary of changes in goodwill
Balance at beginning of period	75,411	69,894	63,646	63,646
Foreign currency translation adjustments	(831)	(702)	(463)
Balance at end of period	74,580	75,411	69,894	74,580
Distribution
Summary of changes in goodwill
Balance at beginning of period	2,616	2,616	2,616	2,616
Balance at end of period	$ 2,616	2,616	2,616	2,616
Radar
Summary of changes in goodwill
Acquisition measurement period adjustment		(422)		$ (422)
Acquisition			6,711
Radar | Products
Summary of changes in goodwill
Acquisition measurement period adjustment		(422)
Acquisition			$ 6,711
Cyalume
Summary of changes in goodwill
Acquisition		6,641
Cyalume | Products
Summary of changes in goodwill
Acquisition		$ 6,641

GOODWILL AND OTHER INTANGIBLE_4

GOODWILL AND OTHER INTANGIBLE ASSETS - Impairment of Goodwill (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
GOODWILL AND OTHER INTANGIBLE ASSETS
Gross goodwill	$ 84,781	$ 73,899
Accumulated impairment losses	$ 7,585	$ 7,585

GOODWILL AND OTHER INTANGIBLE_5

GOODWILL AND OTHER INTANGIBLE ASSETS - Summary of intangible assets (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2022	Dec. 31, 2021
Summary of intangible assets
Definite lived intangibles, Gross	$ 107,260	$ 93,566
Definite lived intangibles, Accumulated amortization	(73,152)	(67,825)
Definite lived intangibles, Net	34,108	25,741
Indefinite lived intangibles	124,670	110,240
Indefinite lived intangibles, Net	51,518	42,415
Tradenames
Summary of intangible assets
Indefinite lived intangibles	17,410	16,674
Indefinite lived intangibles, Net	17,410	16,674
Customer relationships
Summary of intangible assets
Definite lived intangibles, Gross	84,445	74,078
Definite lived intangibles, Accumulated amortization	(57,160)	(52,536)
Definite lived intangibles, Net	$ 27,285	$ 21,542
Weighted Average Useful Life	11 years	11 years
Technology
Summary of intangible assets
Definite lived intangibles, Gross	$ 15,649	$ 11,978
Definite lived intangibles, Accumulated amortization	(11,213)	(10,988)
Definite lived intangibles, Net	$ 4,436	$ 990
Weighted Average Useful Life	8 years	7 years
Tradenames
Summary of intangible assets
Definite lived intangibles, Gross	$ 6,244	$ 6,473
Definite lived intangibles, Accumulated amortization	(3,857)	(3,264)
Definite lived intangibles, Net	$ 2,387	$ 3,209
Weighted Average Useful Life	4 years	4 years
Non-compete agreements
Summary of intangible assets
Definite lived intangibles, Gross	$ 922	$ 1,037
Definite lived intangibles, Accumulated amortization	$ (922)	$ (1,037)
Weighted Average Useful Life	4 years	4 years

GOODWILL AND OTHER INTANGIBLE_6

GOODWILL AND OTHER INTANGIBLE ASSETS - Additional information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
GOODWILL AND OTHER INTANGIBLE ASSETS
Amortization expense	$ 2,274	$ 2,173	$ 6,671	$ 6,538
Amortization expense included in cost of goods sold	$ 134	$ 198	$ 314	$ 596

GOODWILL AND OTHER INTANGIBLE_7

GOODWILL AND OTHER INTANGIBLE ASSETS - Amortization expense for finite lived intangible assets (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Estimated amortization expense for finite-lived intangible assets
Remainder of 2022	$ 1,910
2023	7,735
2024	4,853
2025	2,934
2026	2,543
Thereafter	14,133
Finite lived intangible assets	$ 34,108	$ 25,741

DEBT - Schedule of company's de

DEBT - Schedule of company's debt (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Debt
Short-term debt	$ 13,285	$ 13,174
Long-term debt	141,530	148,564
Unamortized debt discount and debt issuance costs	(1,712)	(2,048)
Total long-term debt, net	139,818	146,516
Term loan
Debt
Long-term debt	141,064	148,564
Other.
Debt
Long-term debt	466
Insurance premium financing
Debt
Short-term debt	3,285	3,174
Current portion of term loan
Debt
Short-term debt	$ 10,000	$ 10,000

DEBT - Summary of aggregate pri

DEBT - Summary of aggregate principal payment of long-term debt (Details) $ in Thousands	Sep. 30, 2022 USD ($)
DEBT
Remainder of 2022	$ 2,500
2023	10,000
2024	10,116
2025	10,116
2026	118,680
Thereafter	118
Total principal payments	$ 151,530

DEBT - New Credit Agreement (De

DEBT - New Credit Agreement (Details) - USD ($) $ in Thousands		3 Months Ended	9 Months Ended
	Aug. 20, 2021	Sep. 30, 2021	Sep. 30, 2021	Sep. 30, 2022	Dec. 31, 2021
Debt
Outstanding borrowings				$ 141,530	$ 148,564
Loss on extinguishment of debt		$ 15,155	$ 15,155
New Credit Agreement
Debt
Increase in total net leverage ratio	0.50
Loss on extinguishment of debt		$ 15,155	$ 15,155
New Credit Agreement | Minimum
Debt
Commitment Fee	0.175%
New Credit Agreement | Maximum
Debt
Commitment Fee	0.25%
New Credit Agreement | Each quarter starting with the quarter ended December 31, 2021
Debt
Minimum fixed charge coverage ratio	1.25
New Credit Agreement | From the Quarter Ended December 31, 2021 until the quarter ended September 30, 2022
Debt
Total net leverage ratio	3.75
New Credit Agreement | Period after the quarter ended September 30, 2022 | Maximum
Debt
Total net leverage ratio	3.50
New Credit Agreement | Base Rate | Minimum
Debt
Applicable margin (as a percent)	0.50%
New Credit Agreement | Base Rate | Maximum
Debt
Applicable margin (as a percent)	1.50%
New Credit Agreement | LIBOR | Minimum
Debt
Applicable margin (as a percent)	1.50%
New Credit Agreement | LIBOR | Maximum
Debt
Applicable margin (as a percent)	2.50%
New Credit Agreement | Revolving credit facility.
Debt
Maximum borrowing capacity	$ 100,000
Outstanding borrowings				0	$ 0
Available borrowing capacity				97,709
New Credit Agreement | Term loan
Debt
Outstanding borrowings	$ 200,000
New Credit Agreement | Term loan | Each quarter starting with the quarter ended December 31, 2021
Debt
Quarterly payments as a percentage of principal	1.25%
New Credit Agreement | Letter of credit
Debt
Maximum borrowing capacity	$ 15,000
Outstanding letters of credit				$ 2,291
New Credit Agreement | Swing line loans
Debt
Maximum borrowing capacity	$ 10,000

DEBT - Canadian Credit Facility

DEBT - Canadian Credit Facility (Details) - Canadian Credit Facility $ in Thousands, $ in Thousands	9 Months Ended
	Sep. 30, 2022 USD ($)	Dec. 31, 2021 USD ($)	Oct. 14, 2021 USD ($)	Oct. 14, 2021 CAD ($)
Minimum
Debt
Unused line fee (as a percent)	0.175%
Maximum
Debt
Unused line fee (as a percent)	0.25%
Base Rate | Minimum
Debt
Applicable margin (as a percent)	0.50%
Base Rate | Maximum
Debt
Applicable margin (as a percent)	1.50%
LIBOR | Minimum
Debt
Applicable margin (as a percent)	1.50%
LIBOR | Maximum
Debt
Applicable margin (as a percent)	2.50%
Revolving credit facility.
Debt
Maximum borrowing capacity				$ 10,000
Amount outstanding	$ 0	$ 0
Upfront Fee	0.25%
Letter of credit
Debt
Maximum borrowing capacity			$ 3,000

DEBT - Schedule of interest rat

DEBT - Schedule of interest rate swaps (Details) - Interest Rate Swap $ in Thousands	Sep. 30, 2022 USD ($)
Interest Rate Swaps
Notional amount	$ 100,000
Fixed rate	0.875%
Variable rate	3.12%

DEBT - Schedule of fair value s

DEBT - Schedule of fair value swap agreement (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Interest Rate Swaps
Cumulative gain, net of tax reflected in accumulated other comprehensive income (loss)	$ 7,221		$ 7,221		$ 913
Gain recognized in other comprehensive income	2,350	$ 89	6,414	$ 89
Amount reclassified from accumulated other comprehensive loss to earnings	(252)	$ 1	(106)	$ 1
Amount reclassified from AOCI into interest expense within next twelve months	3,207		3,207
Other current assets
Interest Rate Swaps
Derivative asset	3,190		3,190
Other assets
Interest Rate Swaps
Derivative asset	$ 6,438		$ 6,438		1,607
Accrued liabilities
Interest Rate Swaps
Derivative liability					$ 389

COMMITMENTS AND CONTINGENCIES -

COMMITMENTS AND CONTINGENCIES - Legal Proceedings (Details) $ in Thousands	1 Months Ended
	Sep. 30, 2021 USD ($)
COMMITMENTS AND CONTINGENCIES
Damage awarded	$ 7,500

COMMITMENTS AND CONTINGENCIES_2

COMMITMENTS AND CONTINGENCIES - Leases (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
COMMITMENTS AND CONTINGENCIES
Total rent expense	$ 1,200	$ 1,174	$ 3,602	$ 3,499

COMMITMENTS AND CONTINGENCIES_3

COMMITMENTS AND CONTINGENCIES - Future minimum lease payments required under non-cancelable operating leases and capital lease agreements (Details) $ in Thousands	Sep. 30, 2022 USD ($)
Operating Leases
Remainder of 2022	$ 1,188
2023	4,368
2024	3,101
2025	1,628
2026	675
Thereafter	142
Total minimum lease payments	$ 11,102

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
INCOME TAXES.
Valuation allowance	$ 1,890		$ 1,890
Effective tax rate	28.40%	28.60%	76.50%	31.60%

COMPENSATION PLANS - Long-Term

COMPENSATION PLANS - Long-Term Incentive Plan (Details) - Long-Term Incentive Plan $ in Thousands		3 Months Ended		9 Months Ended
	Mar. 31, 2021 installment	Sep. 30, 2022 USD ($)	Sep. 30, 2021 USD ($)	Sep. 30, 2022 USD ($)	Sep. 30, 2021 USD ($)
Compensation Plans
Number of equal installments | installment	3
Vesting period for awards granted under the cash-based long-term incentive plan	3 years
Compensation expense related to the cash-based long-term incentive plan | $		$ 375	$ 524	$ 933	$ 1,804

COMPENSATION PLANS - Executive

COMPENSATION PLANS - Executive Compensation Plan (Details) - Executive Compensation Plan - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 30, 2022	Mar. 18, 2022	Mar. 09, 2022
Compensation Plans
Deferred Compensation Arrangement with Individual, Compensation Expense	$ 11,516
Number of awards granted under cash-based executive compensation plan	1,433,500
Grant date fair value per share of common stock of all vested and unvested units under the cash-based executive compensation plan			$ 23.45
Number of units expected to vest under cash-based executive compensation plan		632,500
Number of unvested units under cash-based executive compensation plan		801,000
Share based compensation expense	$ 22,100

COMPENSATION PLANS - Stock Ince

COMPENSATION PLANS - Stock Incentive Plan (Details) - Stock Incentive Plan 2021	Mar. 09, 2022 $ / shares shares
Restricted Stock
COMPENSATION PLANS
Number of awards granted | shares	85,108
Vesting period	3 years
Grant date fair value (per share) | $ / shares	$ 23.45
Stock Options
COMPENSATION PLANS
Number of options issued | shares	309,479
Vesting period	3 years
Expiration period	10 years
Grant date fair value (per share) | $ / shares	$ 6.72

ASSETS AND LIABILITIES HELD F_2

ASSETS AND LIABILITIES HELD FOR SALE (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Assets and Liabilities Held for Sale
Liabilities current, held for sale	$ 91	$ 128
Daventry, UK Facility | Disposal Group, Held-for-sale, Not Discontinued Operations
Assets and Liabilities Held for Sale
Current assets held for sale	225
Liabilities current, held for sale	$ 91

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details) $ in Thousands		3 Months Ended		9 Months Ended
	Jun. 09, 2022 USD ($)	Sep. 30, 2022 USD ($)	Sep. 30, 2021 USD ($)	Sep. 30, 2022 USD ($) warehouse	Sep. 30, 2021 USD ($)
Related Party Transactions
Number of distribution warehouses and retail stores | warehouse				4
Rent expense related to leases		$ 112	$ 142	$ 346	$ 437
Kanders & Company, Inc
Related Party Transactions
Acquisition-related costs				1,000
Direct offering costs	$ 2,000			$ 2,000

SEGMENT DATA (Details)

SEGMENT DATA (Details)	9 Months Ended
	Sep. 30, 2022 segment
SEGMENT DATA
Number of reportable segments	2

SEGMENT DATA - asset informatio

SEGMENT DATA - asset information or operating expenses by segment (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Segment Data
Net sales	$ 111,554	$ 98,654	$ 334,192	$ 323,751
Cost of goods sold	67,814	59,346	207,042	192,256
Gross profit	$ 43,740	$ 39,308	127,150	131,495
Reconciling Items
Segment Data
Net sales			(17,585)	(19,374)
Cost of goods sold			(17,587)	(19,364)
Gross profit			2	(10)
Products | Operating segments
Segment Data
Net sales			277,941	274,039
Cost of goods sold			166,192	159,924
Gross profit			111,749	114,115
Distribution | Operating segments
Segment Data
Net sales			73,836	69,086
Cost of goods sold			58,437	51,696
Gross profit			$ 15,399	$ 17,390