Climb Global Solutions (CLMB) 10-K 18 Mar 19 2018 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2018	Feb. 18, 2019	Jun. 29, 2018
Document and Entity Information
Entity Registrant Name	Wayside Technology Group, Inc.
Entity Central Index Key	0000945983
Document Type	10-K
Document Period End Date	Dec. 31, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Public Float			$ 55,216,079
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		4,514,994
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	FY

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 14,883	$ 5,530
Accounts receivable, net of allowances of $785 and $862, respectively	81,351	78,177
Inventory, net	1,473	2,794
Vendor prepayments	3,172	6,837
Prepaid expenses and other current assets	1,988	1,718
Total current assets	102,867	95,056
Equipment and leasehold improvements, net	1,588	1,828
Accounts receivable-long-term, net	3,156	7,437
Other assets	215	231
Deferred income taxes	145	138
Total assets	107,971	104,690
Current liabilities:
Accounts payable and accrued expenses	66,653	65,197
Total current liabilities	66,653	65,197
Deferred rent and tenant allowances	745	781
Total liabilities	67,398	65,978
Commitments and contingencies
Stockholders’ equity:
Common stock, $.01 par value; 10,000,000 shares authorized; 5,284,500 shares issued: 4,496,494 and 4,454,829 shares outstanding, respectively	53	53
Additional paid-in capital	32,392	31,257
Treasury stock, at cost, 788,006 and 829,671 shares, respectively	(13,447)	(14,207)
Retained earnings	22,994	22,522
Accumulated other comprehensive loss	(1,419)	(913)
Total stockholders' equity	40,573	38,712
Total liabilities and stockholders' equity	$ 107,971	$ 104,690

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Consolidated Balance Sheets
Accounts receivable, allowances (in dollars)	$ 785	$ 862
Common Stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common Stock, shares authorized	10,000,000	10,000,000
Common Stock, shares issued	5,284,500	5,284,500
Common Stock, shares outstanding	4,496,494	4,454,829
Treasury stock, shares	788,006	829,671

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Consolidated Statements of Income
Net sales	$ 181,444	$ 160,567	$ 164,609
Cost of sales	154,524	133,491	137,278
Gross profit	26,920	27,076	27,331
Selling, general, and administrative expenses	20,319	19,263	18,715
Separation expenses	2,446
Income from operations	4,155	7,813	8,616
Other income (expense):
Interest, net	907	699	318
Foreign currency transaction gains (loss)	55	41	(1)
Income before provision for income taxes	5,117	8,553	8,933
Provision for income taxes	1,579	3,491	3,032
Net income	$ 3,538	$ 5,062	$ 5,901
Income per common share-Basic	$ 0.78	$ 1.13	$ 1.25
Income per common share-Diluted	$ 0.78	$ 1.13	$ 1.25
Weighted average common shares outstanding — Basic (in shares)	4,358	4,299	4,503
Weighted average common shares outstanding — Diluted (in shares)	4,358	4,299	4,503
Dividends paid per common share (in dollars per share)	$ 0.68	$ 0.68	$ 0.68

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Consolidated Statements of Comprehensive Income
Net income	$ 3,538	$ 5,062	$ 5,901
Other comprehensive (loss) income:
Foreign currency translation adjustments	(506)	698	(160)
Other comprehensive (loss) income	(506)	698	(160)
Comprehensive income	$ 3,032	$ 5,760	$ 5,741

Consolidated Statement of Stock

Consolidated Statement of Stockholders' Equity - USD ($) $ in Thousands	Common Stock	Additional Paid-In Capital	Treasury	Retained Earnings	Accumulated Other Comprehensive (Loss) Income	Total
Balance at Dec. 31, 2015	$ 53	$ 32,540	$ (10,296)	$ 17,813	$ (1,451)	$ 38,659
Balance (in shares) at Dec. 31, 2015	5,284,500
Balance (in shares) at Dec. 31, 2015			583,688
Increase (Decrease) in Stockholders' Equity
Net income				5,901		5,901
Translation adjustment					(160)	(160)
Dividends paid				(3,199)		(3,199)
Share-based compensation expense		1,673				1,673
Tax benefit from share-based compensation		141				141
Restricted stock grants (net of forfeitures)		(3,671)	$ 3,671
Restricted stock grants (net of forfeitures) and adjustments (in shares)			(164,085)
Treasury shares repurchased			$ (5,404)			(5,404)
Treasury shares repurchased (in shares)			309,463
Balance at Dec. 31, 2016	$ 53	30,683	$ (12,029)	20,515	(1,611)	37,611
Balance (in shares) at Dec. 31, 2016	5,284,500
Balance (in shares) at Dec. 31, 2016			729,066
Increase (Decrease) in Stockholders' Equity
Net income				5,062		5,062
Translation adjustment					698	698
Dividends paid				(3,055)		(3,055)
Share-based compensation expense		1,350				1,350
Restricted stock grants (net of forfeitures)		(776)	$ 776
Restricted stock grants (net of forfeitures) and adjustments (in shares)			(64,382)
Treasury shares repurchased			$ (2,954)			(2,954)
Treasury shares repurchased (in shares)			164,987
Balance at Dec. 31, 2017	$ 53	31,257	$ (14,207)	22,522	(913)	$ 38,712
Balance (in shares) at Dec. 31, 2017	5,284,500					5,284,500
Balance (in shares) at Dec. 31, 2017			829,671			829,671
Increase (Decrease) in Stockholders' Equity
Net income				3,538		$ 3,538
Translation adjustment					(506)	(506)
Dividends paid				(3,066)		(3,066)
Share-based compensation expense		2,769				2,769
Restricted stock grants (net of forfeitures)		(1,634)	$ 1,799			165
Restricted stock grants (net of forfeitures) and adjustments (in shares)			(115,824)
Treasury shares repurchased			$ (1,039)			(1,039)
Treasury shares repurchased (in shares)			74,159
Balance at Dec. 31, 2018	$ 53	$ 32,392	$ (13,447)	$ 22,994	$ (1,419)	$ 40,573
Balance (in shares) at Dec. 31, 2018	5,284,500					5,284,500
Balance (in shares) at Dec. 31, 2018			788,006			788,006

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Cash flows from operating activities
Net income	$ 3,538	$ 5,062	$ 5,901
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization expense	482	477	296
Benefit from doubtful accounts receivable	(75)	(95)	(73)
Deferred income tax (benefit) expense	(7)	278	105
Share-based compensation expense	2,769	1,512	1,673
Loss on disposal of fixed assets	17		12
Amortization of discount on accounts receivable	(869)	(747)	(308)
Changes in operating assets and liabilities:
Accounts receivable	1,538	11,540	(28,348)
Inventory	1,312	(461)	(361)
Prepaid expenses and other current assets	(280)	31	(625)
Vendor prepayments	3,665	(6,837)
Accounts payable and accrued expenses	1,841	(12,656)	21,246
Other assets and liabilities	(30)	(125)	(34)
Net cash provided by (used in) operating activities	13,901	(2,021)	(516)
Cash flows used in investing activities
Purchase of equipment and leasehold improvements	(266)	(359)	(1,040)
Net cash used in investing activities	(266)	(359)	(1,040)
Cash flows used in financing activities
Purchase of treasury stock	(1,039)	(2,954)	(5,404)
Borrowings under revolving credit facility	10,000	2,000
Repayments of borrowings under revolving credit facility	(10,000)	(2,000)
Tax benefit from share-based compensation			141
Dividends paid	(3,066)	(3,055)	(3,199)
Net cash used in financing activities	(4,105)	(6,009)	(8,462)
Effect of foreign exchange rate on cash	(177)	395	(281)
Net increase (decrease) in cash and cash equivalents	9,353	(7,994)	(10,299)
Cash and cash equivalents at beginning of period	5,530	13,524	23,823
Cash and cash equivalents at end of period	14,883	5,530	13,524
Supplementary disclosure of cash flow information:
Income taxes paid	$ 2,338	$ 2,437	2,559
Leasehold improvements funded by tenant allowance			$ 840

Description of Business

Description of Business	12 Months Ended
	Dec. 31, 2018
Description of Business
Description of Business	Note 1. Description of Business Wayside Technology Group, Inc. and Subsidiaries (the “Company”), was incorporated in Delaware in 1982. The Company distributes technology products developed by others to resellers who in turn sell to end customers worldwide. The Company also resells computer software and hardware developed by others and provides technical services directly to customers in the United States of America (“USA”) and Canada. The Company also operates a sales branch in Europe to serve our customers in this region of the world. The Company offers an extensive line of products from leading publishers of software and tools for virtualization/cloud computing, security, networking, storage & infrastructure management, application lifecycle management and other technically sophisticated domains as well as computer hardware. The Company is organized into two reportable operating segments. The “Lifeboat Distribution” segment distributes technical software to corporate resellers, value added resellers (VARs), consultants and systems integrators worldwide. The “TechXtend” segment is a value-added reseller of software, hardware and services, selling to end user corporations, government organizations and academic institutions in the USA and Canada.

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2018
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies	Note 2. Summary of Significant Accounting Policies Principles of Consolidation and Operations The consolidated financial statements include the accounts of Wayside Technology Group, Inc. and its wholly owned subsidiaries . All intercompany transactions and balances have been eliminated. Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“US GAAP”) requires management to make extensive use of certain estimates and assumptions which 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 revenues and expenses during the reporting periods. The significant areas of estimation include but are not limited to accounting for allowance for doubtful accounts, sales returns, allocation of revenue in multiple deliverable arrangements, principal vs. agent considerations, discount rates applicable to long term receivables, inventory obsolescence, income taxes, depreciation, contingencies and stock-based compensation. Actual results could differ from those estimates. Net Income Per Common Share Our basic and diluted earnings per share are computed using the two-class method. The ck and participating securities according to their participation rights in dividends and undistributed earnings or losses. Non-vested restricted stock awards that include non-forfeitable rights to dividends are considered participating securities. Per share amounts are computed by dividing net income available to common shareholders by the weighted average shares outstanding during each period. Diluted and basic earnings per share are the same because the restricted shares are the only potentially dilutive security. A reconciliation of the numerators and denominators of the basic and diluted per share computations follows: Year ended December 31, 2018 2017 2016 Numerator: Net income $ 3,538 $ 5,062 $ 5,901 Less distributed and undistributed income allocated to participating securities 118 222 251 Net income attributable to common shareholders 3,420 4,840 5,650 Denominator: Weighted average common shares (Basic) 4,358 4,299 4,503 Weighted average common shares including assumed conversions (Diluted) 4,358 4,299 4,503 Basic net income per share $ 0.78 $ 1.13 $ 1.25 Diluted net income per share $ 0.78 $ 1.13 $ 1.25 Cash Equivalents The Company considers all liquid short-term investments with maturities of 90 days or less when purchased to be cash equivalents. Accounts Receivable Accounts receivable principally represents amounts collectible from our customers. The Company performs ongoing credit evaluations of its customers but generally does not require collateral to support any outstanding obligation. From time to time, we sell accounts receivable to a financial institution on a non-recourse basis for cash, less a discount. The Company has no significant retained interests or servicing liabilities related to the accounts receivable sold. Proceeds from the sale of receivables approximated their discounted book value and were included in operating cash flows on the Consolidated Statements of Cash Flows. Allowance for Accounts Receivable We provide allowances for doubtful accounts related to accounts receivable for estimated losses resulting from the inability of our customers to make required payments. We take into consideration the overall quality and aging of the receivable portfolio along with specifically identified customer risks. If actual customer payment performance were to deteriorate to an extent not expected, additional allowances may be required. At the time of sale, we record an estimate for sales returns based on historical experience. If actual sales returns are greater than estimated by management, additional expense may be incurred. Foreign Currency Translation Assets and liabilities of the Company’s foreign subsidiaries have been translated using the end of the reporting period exchange rates, and related revenues and expenses have been translated at average rates of exchange in effect during the period. Cumulative translation adjustments have been classified within accumulated other comprehensive income, which is a separate component of stockholders’ equity in accordance FASB ASC Topic No. 220, “Comprehensive Income”. Foreign currency transaction gains and losses are recorded as income or expenses as amounts are settled. Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations in credit risk consist of cash and cash equivalents. The Company’s cash and cash equivalents, at times, may exceed federally insured limits. The Company’s cash and cash equivalents are deposited primarily in banking institutions with global operations. The Company has not experienced any losses in such accounts. The Company believes it is not exposed to any significant credit risk on cash and cash equivalents. Financial Instruments The carrying amounts of financial instruments, including cash and cash equivalents, accounts receivable and accounts payable approximated fair value as of December 31, 2018 and 2017, because of the relative short maturity of these instruments. The Company’s accounts receivable-long-term is discounted to their present value at prevailing market rates at the time of sale which, approximates fair value as of December 31, 2018 and 2017. Inventory Inventory, consisting primarily of finished products held for resale, is stated at the lower of cost or market. Vendor Prepayments Equipment and Leasehold Improvements Equipment and leasehold improvements are stated at cost. Equipment depreciation is calculated using the straight-line method over three to five years. Leasehold improvements are amortized using the straight-line method over the estimated useful lives of the assets or the related lease terms, whichever is shorter. Accounts Receivable-Long-Term Accounts receivable-long-term result from product sales with extended payment terms that are discounted to their present values at the prevailing market rates at the time of sale. In subsequent periods, the accounts receivable is increased to the amounts due and payable by the customers through the accretion of interest income on the unpaid accounts receivable due in future years. The amounts under these long-term accounts receivable due within one year are reclassified to the current portion of accounts receivable. Comprehensive Income Comprehensive income consists of net income for the period and the impact of unrealized foreign currency translation adjustments. The foreign currency translation adjustments are not currently adjusted for income taxes as they relate to permanent investments in international subsidiaries. Revenue Recognition Effective January 1, 2018, the Company adopted the requirements of Accounting Standards Update, or ASU, No. 2014-09 Revenue from Contracts with Customers, or Accounting Standard Codification (“ASC”) 606 using the full retrospective method, as discussed in detail in Note 3. All amounts and disclosures set forth in this Annual Report on Form 10-K have been updated to comply with ASC 606 as discussed in Note 3. Stock-Based Compensation The Company has stockholder-approved stock incentive plans for employees and directors. Stock- based compensation is recognized based on the grant date fair value and is recognized as expense on a straight-line basis over the requisite service period. Separation Expenses Separation expenses consist of expenses related to accelerated vesting of restricted stock and other cash payments to be made to the Company’s former Chairman of the Board, President and Chief Executive Officer pursuant to a separation agreement dated May 11, 2018. Interest, net Interest, net consists primarily of income from the amortization of the discount on accounts receivable long term, net of interest expense on the Company’s credit facility. Income Taxes The Company utilizes the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are determined based on differences between financial reporting and tax basis of assets and liabilities and are measured using enacted tax rates and laws that will be in effect when the differences are expected to reverse. This method also requires a valuation allowance against the net deferred tax asset if, based on the weighted available evidence, it is more likely than not that some or all the deferred tax assets will not be realized. The Company’s policy is to recognize interest and penalties related to uncertain tax positions in income tax expense when assessed. The Company accounts for uncertainties in accordance with FASB ASC 740 “Income Taxes”. This standard clarified the accounting for uncertainties in income taxes. The standard prescribes criteria for recognition and measurement of tax positions. It also provides guidance on derecognition, classification, interest and penalties, and disclosures related to income taxes associated with uncertain tax positions. The Company classifies all deferred tax asset or liabilities as non-current on the balance sheet in accordance with ASU 2015-17 which the Company has adopted. Reclassifications Recently Issued Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU 2014-09, Revenue from Contracts with Customers, superseding the previous revenue recognition requirements, along with most existing industry-specific guidance. In March, April, May and December 2016, the FASB issued additional updates to the new accounting standard which provide supplemental adoption guidance and clarifications. The guidance requires an entity to review contracts in five steps: 1) identify the contract, 2) identify performance obligations, 3) determine the transaction price, 4) allocate the transaction price, and 5) recognize revenue in order to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The new standard also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenue arising from contracts with customers. The Company adopted the new standard on January 1, 2018, using the full retrospective method which required us to recast our historical financial information to reflect the adoption as of the earliest reporting period presented. The most significant impact of adopting the standard relates to the determination of whether the Company is acting as a principal or an agent in the sale of third-party security software and software that is highly interdependent with support, as well as maintenance, support or other services. See Note 3 (Revenue Recognition). In February 2016, the FASB issued ASU 2016-02, Leases ("ASU 2016-02"). ASU 2016-02 supersedes the lease guidance under FASB ASC Topic 840, Leases, resulting in the creation of FASB ASC Topic 842, Leases. ASU 2016-02 requires a lessee to recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term from operating leases. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. In transition, lessees and lessors were originally required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. In July 2018, FASB issued ASU No. 2018-11, Targeted Improvements. This update still requires modified retrospective transition; however, it adds the option to initially apply the new standard at the adoption date and recognize a cumulative-effect adjustment in the current period instead of at the beginning of the earliest period presented. This ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018. The Company expects to elect to adopt the new accounting standard using the modified retrospective transition option. The Company is in the process of finalizing its evaluation of current leases and quantifying the impact to its balance sheet. The Company expects to recognize right of use assets and leases liabilities between $2.5 million and $3.5 million as of January 1, 2019. The Company does not expect the adoption of this standard to have a material impact on the Company’s Consolidated Statements of Earnings. In June 2016, the FASB issued Accounting Standards Update No. 2016-13, Financial Instruments - Credit Losses (Topic 326) ("ASU No. 2016-13"). ASU No. 2016-13 revises the methodology for measuring credit losses on financial instruments and the timing of when such losses are recorded. ASU No. 2016-13 is effective for the Company in the first quarter of 2020, with early adoption permitted, and is to be applied using a modified retrospective approach. The Company is currently evaluating the potential effects of adopting the provisions of ASU No. 2016-13 on its Consolidated Financial Statements, particularly its recognition of allowances for accounts receivable. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (“ASU 2016-15”) which reduces diversity in practice in how certain transactions are classified in the statement of cash flows. The new standard became effective for the Company beginning with the first quarter of 2018. The adoption of this guidance did not have a material impact on the Company’s Consolidated Financial Statements. In May 2017, the FASB issued ASU No. 2017-09, “Scope of Modification Accounting”, to reduce diversity in practice and provide clarity regarding existing guidance in ASC 718, “Stock Compensation”. The amendments in this updated guidance clarify that an entity should apply modification accounting in response to a change in the terms and conditions of an entity’s share-based payment awards unless three newly specified criteria are met. This guidance is effective for fiscal years beginning after December 15, 2017, including interim periods within that reporting period. The new guidance was effective for the Company on a prospective basis beginning on January 1, 2018 and did not impact the Company’s Consolidated Financial Statements as it is not the Company’s practice to change either the terms or conditions of stock-based payment awards once they are granted. In February 2018, the FASB issued ASU 2018-02, “Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income” (“ASU 2018-02”), which permits the reclassification of stranded tax effects resulting from the Tax Cuts and Jobs Act (the “TCJA” or “U.S. tax reform”) from Accumulated other comprehensive income (loss) to Retained earnings. This new guidance is effective for the Company beginning on January 1, 2019 and must be applied either in the period of adoption or retrospectively to periods in which the effects of the TCJA are recognized. The adoption of this guidance is not expected to have a material impact on the Company’s Consolidated Financial Statements. In March 2018, the FASB issued ASU 2018-05, “Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 (SEC Update), Income Taxes (Topic 740)” (“ASU-2018-05”). ASU 2018-05 provides guidance regarding the recording of tax impacts where uncertainty exists, in the period of adoption of the TCJA, which allowed companies to reflect provisional amounts for those specific income tax effects of the TCJA for which the accounting under ASC Topic 740 is incomplete but for which a reasonable estimate could be determined. The Company completed its Federal and State income tax filings for 2017 with no material change to amounts previously reported. In June 2018, the FASB issued Accounting Standards Update (“ASU”) No. 2018-07, “Compensation — Stock Compensation (Topic 718), Improvements to Nonemployee Share-Based Payment Accounting” (“ASU 2018-07”), which aligns the measurement and classification guidance for share-based payments to nonemployees with that for employees, with certain exceptions. It expands the scope of ASC 718 to include share-based payments granted to nonemployees in exchange for goods or services used or consumed in the entity’s own operations and supersedes the guidance in ASC 505-50. The ASU retains the existing cost attribution guidance, which requires entities to recognize compensation cost for nonemployee awards in the same period and in the same manner (i.e., capitalize or expense) they would if they paid cash for the goods or services, but it moves the guidance to ASC 718. The guidance also allows nonpublic entities to account for nonemployee awards using certain practical expedients that are already available for employee awards, but the same accounting policies must be used for awards to both employees and nonemployees. ASU 2018-07 is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. The Company is currently evaluating the impact of adopting this guidance. In July 2018, the FASB issued ASU 2018-09 – Codification Improvements (“ASU 2018-09”), which facilitates amendments to a variety of topics to clarify, correct errors in, or make minor improvements to the accounting standards codification. The effective date of the standard is dependent on the facts and circumstances of each amendment. Some amendments do not require transition guidance and will be effective upon the issuance of this standard. Most of the amendments in ASU 2018-09 will be effective in annual periods beginning after December 15, 2018. This new guidance is effective for the Company beginning on January 1, 2019 and is not expected to have a material impact on the Company’s Consolidated Financial Statements and related disclosures.

Revenue Recognition

Revenue Recognition	12 Months Ended
	Dec. 31, 2018
Revenue Recognition
Revenue Recognition	3. Revenue Recognition Effective January 1, 2018, we adopted ASC 606 using the full retrospective method, which requires us to recast our historical financial information to reflect the adoption as of the earliest reporting period presented. There was no adjustment to equity as a result of the adoption. The most significant impact of adopting the standard relates to the determination of whether the Company is acting as a principal or an agent in the sale of third-party security software and software that is highly interdependent with support, as well as maintenance, support and other services. Historically, under the transfer of risk and rewards model of revenue recognition, the Company has accounted for primarily all its sales on a gross basis. The new guidance requires the Company to identify performance obligations and assess transfer of control. While assessing its performance obligations for sales of security software and software subscriptions that are highly interdependent with support, the Company determined that the vendor has ongoing performance obligations with the end customer that are not separately identifiable from the software itself. The Company also determined that the vendor has ongoing performance obligation for sales of certain third-party maintenance, support and service contracts. In these instances, the Company has determined that it does not have control and is acting as an agent in the sale. When acting as an agent in a transaction, the Company accounts for sales on a net basis, with the vendor cost associated with the sale recognized as a reduction of revenue. The Company also changed its presentation of its accrual for returns and recognized this as a refund liability within the accounts payable and accrued expense line of the balance sheet. The amount previously had been recorded as a reduction of accounts receivable. Additionally, the asset for the right to recover from customers settling the refund liability is presented separately from the refund liability. This amount had previously been recorded as a reduction of accounts payable and accrued expenses. As a result, in our consolidated balance sheets, we reclassified our sales return allowance from accounts receivable, net of allowances to accounts payable and accrued expenses and reclassified the relating asset for the right to recover from customers settling the refund liability from accounts payable and accrued expenses to prepaid expenses and other current assets. ASC 606 Adoption Impact to Previously Reported Results The tables below present historical information adjusted as if the standard had been adopted on January 1, 2016 for all periods presented. The effect of these changes for each quarter of 2017 is presented in Note 11. Year ended December 31, 2017 Year ended December 31, 2016 As Impact As As Impact As Reported of Adoption Adjusted Reported of Adoption Adjusted Net sales $ 449,379 $ (288,812) $ 160,567 $ 418,131 $ (253,522) $ 164,609 Cost of sales 422,303 (288,812) 133,491 390,800 (253,522) 137,278 Gross profit $ 27,076 $ — $ 27,076 $ 27,331 $ — $ 27,331 The following table presents the effect from the adoption of ASC 606 on the consolidated balance sheet. As of December 31, 2017 As Impact As Reported of Adoption Adjusted Assets: Accounts receivable, net of allowances $ 76,937 $ 1,240 $ 78,177 Prepaid expenses and other current assets $ 553 $ 1,165 $ 1,718 Liabilities: Accounts payable and accrued expenses $ 62,792 $ 2,405 $ 65,197 There is no impact to stockholders’ equity from the adoption of ASC 606. The core principle of ASC 606 is to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration the entity expects to be entitled in exchange for those goods or services. This principle is achieved through applying the following five-step approach: Identification of the contract, or contracts, with a customer — A contract with a customer exists when (i) we enter into an enforceable contract with a customer that defines each party’s rights regarding the goods or services to be transferred and identifies the payment terms related to these goods or services, (ii) the contract has commercial substance and, (iii) we determine that collection of substantially all consideration for goods or services that are transferred is probable based on the customer’s intent and ability to pay the promised consideration. We apply judgment in determining the customer’s ability and intention to pay, which is based on a variety of factors including the customer’s historical payment experience or, in the case of a new customer, published credit and financial information pertaining to the customer. The Company considers customer purchase orders, which in some cases are governed by master agreements or general terms and conditions of sale, to be contracts with customers. All revenue is generated from contracts with customers. Identification of the performance obligations in the contract — Performance obligations promised in a contract are identified based on the goods or services that will be transferred to the customer that are capable of being distinct, whereby the customer can benefit from the goods or service either on its own or together with other resources that are readily available from third parties or from us, and are distinct in the context of the contract, whereby the transfer of the goods or services is separately identifiable from other promises in the contract. To the extent a contract includes multiple promised goods or services, we apply judgment to determine whether promised goods or services are capable of being distinct in the context of the contract. If these criteria are not met the promised goods or services are accounted for as a single performance obligation. Determination of the transaction price —The transaction price is determined based on the consideration to which we will be entitled in exchange for transferring goods or services to the customer. Net sales are recorded net of estimated discounts, rebates, and returns. Vendor rebates are recorded when earned as a reduction to cost of sales or inventory, as applicable. Allocation of the transaction price to the performance obligations in the contract — If the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. Contracts that contain multiple performance obligations require an allocation of the transaction price to each performance obligation based on a relative standalone selling price, or SSP, basis. We determine SSP based on the price at which the performance obligation is sold separately. If the standalone selling price is not observable through established standard prices, we use judgement and estimate the standalone selling price considering available information such as market pricing and pricing related to similar products. Contracts with a significant financing component are discounted to their present value at contract inception and accreted up to the expected payment amounts. These contracts generally offer customers extended payment terms of up to three years. Recognition of revenue when, or as, we satisfy a performance obligation — The Company recognizes revenue when its performance obligations are complete, and control of the specified goods or services pass to the customer. The Company considers the following indicators in determining when control passes to the customer: (i) the Company has a right to payment for the product or service (ii) the customer has legal title to the product, (iii) the Company has transferred physical possession of the product (iv) the Customer has the significant risk and rewards of ownership of the product and (v) the customer has accepted the product. Substantially all our performance obligations are satisfied at a point in time, as our obligation is to deliver a product or fulfill an order for a third party to deliver ongoing services, maintenance or support. Disaggregation of Revenue We generate revenue from the re-sale of third-party software licenses, subscriptions, hardware, and related service contracts. Finance fees related to sales are classified as interest income. The following table depicts the disaggregation of revenue according to revenue type and is consistent with how we evaluate our financial performance: Net sales: Year ended December 31, 2018 2017 2016 Hardware, software and other products $ $ $ Software - security & highly interdependent with support Maintenance, support & other services Net sales $ $ $ See Note 10 for disaggregation of revenue by segment and geography. Hardware, software and other products - Hardware product consists of sales of hardware manufactured by third parties. Hardware product is delivered from our warehouse or drop shipped directly from the vendor. Revenue from our hardware products is recognized on a gross basis, with the selling price to the customer as net sales, and the cost of the related product as cost of sales, upon transfer of control to the customer, as the Company is acting as a principal in the transaction. Control is generally deemed to have passed to the customer upon transfer of title and risk of ownership. Software product consists of sales of perpetual and term software licenses for products developed by third party vendors, which are distinct from related maintenance and support. Software licenses are delivered via electronic license keys provided by the vendor to the end user. Revenue from the sale of software products is recognized on a gross basis, with the selling price to the customer as net sales, and the cost of the related product as cost of sales, upon transfer of control to our customers as the Company is a principal in the transaction. Control is deemed to have passed to the customer when they acquire the right to use or copy the software under license as substantially all product functionality is available to the customer at the time of sale. Other products include marketing revenues that are recorded on a gross basis as the Company is a principal in the arrangement. Software maintenance and support, commonly known as software assurance or post contract support, consists of software updates and technical support provided by the software vendor to the licensor over a period. In cases where the software maintenance is distinct from the related software license, software maintenance is accounted for as a separate performance obligation. In cases where the software maintenance is not distinct from the related software license, it is accounted for as a single performance obligation with the related license. We utilize judgement in determining whether the maintenance is distinct from the software itself. This involves considering if the software provides its original intended functionality without the updates, or is dependent on frequent, or continuous updates to maintain its functionality. See Allocation of the transaction price to the performance obligations in the contract for a discussion of the allocation of maintenance and support costs when they are distinct from the related software licenses and Software - security and highly interdependent with support for a discussion of maintenance and support costs when they are not distinct from the related software license. Software - security and highly interdependent with support - Software - security software and software highly interdependent with support consists of sales of security subscriptions and other licensed software products whose functionality is highly interdependent with, and therefore not distinct from, related software maintenance. Delivery of the software license and related support over time is considered a single performance obligation of the third-party vendor for these products. The Company is an agent in these transactions, with revenue being recorded on a net basis when its performance obligation of processing a valid order between the supplier and customer contracting for the services is complete. Maintenance, support and other services revenue - Maintenance, support and other services revenue consists of third-party post-contract support that is not critical or essential to the core functionality of the related licensed software, and, to a lesser extent, from third-party professional services, software as a service, and cloud subscriptions. Revenue from maintenance, support and other service revenues is recognized on a net basis, upon fulfillment of an order to the customer, as the Company is an agent in the transaction, and its performance obligations are complete at the time a valid order between the parties is processed. Costs to obtain and fulfill a contract - We pay commissions and related payroll taxes to sales personnel when customers are invoiced. These costs are recorded as selling general and administrative expenses in the period earned as all our performance obligations are complete within a short window of processing the order. Contract balances - Accounts receivable is recorded at the invoiced amount, net of an allowance for doubtful accounts. A receivable is recognized in the period we deliver goods or provide services or when our right to consideration is unconditional. Payment terms on invoiced amounts are typically 30-75 days. The balance of accounts receivable, net of allowance for doubtful accounts as of December 31, 2018 and 2017 is presented in the accompanying consolidated balance sheets. Accounts receivable-long-term result from product sales with extended payment terms that are discounted to their present values at the Company’s estimates of prevailing market rates at the time of the sale. The Company has determined that these amounts do not represent variable consideration as the amount earned is fixed. In subsequent periods, the accounts receivable is increased to the amounts due and payable by the customers through the accretion of interest income on the unpaid accounts receivable due in future years. The amounts due under these long-term accounts receivable due within one year are reclassified to the current portion of accounts receivable and are shown net of reserves. As our revenues are generally recognized at a point in time in the same period as they are billed, we have no deferred revenue balances. Provisions for doubtful accounts including long-term accounts receivable and returns are estimated based on historical write offs, sales returns and credit memo analysis which are adjusted to actual on a periodic basis. Refund liability – The Company records a refund liability for expected product returns with a corresponding asset for an amount representing any expected recovery from vendors regarding the return. Principal versus agent considerations – The Company determines whether it is acting as a principal or agent in a transaction by assessing whether it controls a good or service prior to it being transferred to a customer, with control being defined as having the ability to direct the use of and obtain the benefits from the asset. The Company considers the following indicators, among others, in making the determination: 1) the Company is primarily responsible for fulfilling the promise to provide the promised good or service, 2) the Company has inventory risk, before or after the specified good or service has been transferred to the customer, and 3) the Company has discretion in establishing price for the specified good or service. Generally, we conclude that we are a principal in transactions where software or hardware products containing their core functionality are delivered to the customer at the time of sale and are agents in transactions where we are arranging for the provision of future performance obligations by a third party. As we enter into distribution agreements with third-party service providers, we evaluate whether we are acting as a principal or agent for each product sold under the agreement based on the nature of the product or service, and our performance obligations. Products for which there are significant ongoing third-party performance obligations include software maintenance, which includes periodic software updates and support, security software that is highly interdependent with maintenance, software as a service, cloud and third-party professional services. Sales of hardware, software and other products where we are a principal are recorded on a gross basis with the selling price to the customer recorded as sales and the cost of the product or software recorded as cost of sales. Sales where we are acting as an agent are recognized on a net basis at the date our performance obligations are complete. Under net revenue recognition, the cost paid to the vendor or third-party service provider is recorded as a reduction to sales, resulting in revenue being equal to the gross profit on the transaction.

Balance Sheet Detail

Balance Sheet Detail	12 Months Ended
	Dec. 31, 2018
Balance Sheet Detail
Balance Sheet Detail	4. Balance Sheet Detail Equipment and leasehold improvements, net consist of the following as of December 31: 2018 2017 Equipment $ 2,146 $ 1,988 Leasehold improvements 1,332 1,335 3,478 3,323 Less accumulated depreciation and amortization (1,890) (1,495) $ 1,588 $ 1,828 Depreciation expense relating to equipment and leasehold improvements, net was $473 thousand, $470 thousand and $292 thousand during the years ended December 31, 2018, 2017 and 2016, respectively. Accounts receivable – long term, net consist of the following as of December 31: 2018 2017 Total amount due from customer $ 11,169 $ 20,886 Less unamortized discount (391) (912) Less current portion included in accounts receivable (7,622) (12,537) $ 3,156 $ 7,437 Accounts payable and accrued expenses consist of the following as of December 31: 2018 2017 Trade accounts payable $ 62,751 $ 60,075 Accrued expenses 3,902 5,122 $ 66,653 $ 65,197 Accumulated other comprehensive loss consists of the following as of December 31: 2018 2017 Foreign currency translation adjustments $ (1,419) $ (913) $ (1,419) $ (913)

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2018
Income Taxes
Income Taxes	5. Income Taxes Deferred tax attributes resulting from differences between the tax basis of assets and liabilities and the reported amounts in the consolidated balance sheet at December 31, 2018 and 2017 are as follows: 2018 2017 Deferred tax assets: Accruals and reserves $ 331 $ 331 Deferred rent credit 151 161 Total deferred tax assets 482 492 Deferred tax liabilities: Depreciation and amortization (337) (354) Total deferred tax liabilities (337) (354) Net deferred tax asset $ 145 $ 138 The provision for income taxes is as follows: Year ended December 31, 2018 2017 2016 Current: Federal $ 967 $ 2,253 $ 2,515 State 327 552 55 Foreign 292 408 357 1,586 3,213 2,927 Deferred: Federal (11) 273 102 State 4 5 3 (7) 278 105 $ 1,579 $ 3,491 $ 3,032 Effective Tax Rate % % % The Company’s effective tax rate for the year ended December 31, 2018 was impacted by limitations on the deductibility of executive compensation resulting from Section 162(m) of the Internal Revenue Code and adjustments to the accrual for state income taxes in states which have enacted economic nexus statutes. The Company recorded a $0.4 million tax benefit related to separation expenses during the year ended December 31, 2018, which were accounted for as a discrete item, resulting in a 19.4% effective tax benefit rate on that item. The Company also recorded an adjustment to its accrual for potential liabilities for state income taxes in states which have enacted economic nexus statutes of $0.2 million during the year ended December 31, 2018. The effective tax rate for ordinary income was 25.1% for the year ended December 31, 2018. The reasons for the difference between total tax expense and the amount computed by applying the U.S. statutory federal income tax rate to income before income taxes are as follows: Year ended December 31, 2018 2017 2016 Statutory rate applied to pretax income $ 1,075 $ 2,908 $ 3,037 Section 162(m) and other permanent items 203 — — Potential state tax obligations, net of federal tax benefit 158 375 — State income taxes, net of federal income tax benefit 99 36 36 Impact of new tax law — 189 — Foreign income taxes over (under) U.S. statutory rate 50 (70) (64) Other items (6) 53 23 Income tax expense $ 1,579 $ 3,491 $ 3,032 The Company receives a tax deduction from the income realized by employees on the exercise of certain non-qualified stock options and restricted stock awards for which the tax effect of the difference between the book and tax deduction is recognized as a component of current income tax. Included in the table above is the net effect of the current year global intangible low-taxed income (“GILTI”) inclusion of $0.1 million, which is fully offset by a foreign tax credit. The Company has analyzed filing positions in all the federal and state jurisdictions where it is required to file income tax returns, as well as all open tax years in these jurisdictions. The Company has identified its federal consolidated tax return, its state tax return in New Jersey and its Canadian tax return as major tax jurisdictions. As of December 31, 2018, the Company’s 2016 and 2017 Federal tax returns remain open for examination, as the Company recently concluded an Internal Revenue Service examination through the 2015 tax year. This examination resulted in no change to the previously filed Federal corporate tax returns. The Company’s New Jersey and Canadian tax returns are open for examination for the years 2014 through 2017. As of December 31, 2018, the Company recorded an accrual of $0.6 million, net of federal tax benefit, for potential liabilities for state income taxes in states which have enacted economic nexus statutes and the Company has not filed income tax returns. The Company’s policy is to recognize interest related to unrecognized tax benefits as interest expense and penalties as operating expenses. The Company believes that it has appropriate support for the income tax positions it takes and expects to take on its tax returns, and that its accruals for tax liabilities are adequate for all open years based on an assessment of many factors including experience and interpretations of tax law applied to the facts of each matter. For financial reporting purposes, income before income taxes includes the following components: Year ended December 31, 2018 2017 2016 United States $ 3,960 $ 6,929 $ 7,514 Foreign 1,157 1,624 1,419 $ 5,117 $ 8,553 $ 8,933 The TCJA was enacted on December 22, 2017 and introduced significant changes to the U.S. income tax law. Effective in 2018, the TCJA reduced U.S. statutory tax rates from 34% to 21%. Accordingly, we remeasured our deferred taxes as of December 31, 2017 to reflect the reduced rate that will apply in future periods when these deferred taxes are settled or realized, resulting in a one-time $0.1 million net tax expense in 2017. Due to the timing of the enactment and the complexity involved in applying the provisions of the TCJA, we made reasonable estimates of the effects and recorded provisional amounts in our financial statements as of December 31, 2017. The Company completed our Federal and State income tax filings for 2017 with no material changes to amounts previously reported. The following table summarizes the activity related to the Company’s unrecognized tax benefits as of December 31, 2018 and 2017: 2018 2017 Balance as of January 1 $ 443 $ - Additions related to prior period tax positions 200 443 Reductions related to settlements with tax authorities (102) - Balance as of December 31 $ 541 $ 443 All of the unrecognized income tax benefits at December 31, 2018 and 2017 would have affected the Company’s effective income tax rate if recognized. The Company believes that it is reasonably possible that a significant decrease in the total amount of unrecognized income tax benefits related to state exposures may be necessary within the next twelve months. During the year ended December 31, 2018, the Company incurred interest and penalties of less than $0.1 million related to these uncertain tax benefits. During the years ended December 31, 2017 and 2016, there were no amounts incurred for interest and penalties related to these uncertain tax benefits.

Credit Facility

Credit Facility	12 Months Ended
	Dec. 31, 2018
Credit Facility
Credit Facility	6. Credit Facility On November 15, 2017, the Company entered into a $20,000,000 revolving credit facility (the “Credit Facility”) with Citibank, N.A. (“Citibank”) pursuant to a Second Amended and Restated Revolving Credit Loan Agreement (the “Loan Agreement”), Second Amended and Restated Revolving Credit Loan Note (the “Note”), Second Amended and Restated Security Agreement (the “Security Agreement”) and Second Amended and Restated Pledge and Security Agreement (the “Pledge Agreement”). The Credit Facility, which will be used for working capital and general corporate purposes, matures on August 31, 2020, at which time the Company must pay all outstanding principal of all outstanding loans plus all accrued and unpaid interest, and any, fees, costs and expenses. In addition, the Company will pay regular monthly payments of all accrued and unpaid interest. The interest rate for any borrowings under the Credit Facility is subject to change from time to time based on the changes in the LIBOR Rate, as defined in the Loan Agreement (the “Index”). The Index was 2.39% at December 31, 2018. Interest on the unpaid principal balance of the Note will be calculated using a rate of 1.50 percentage points over the Index. If the Index becomes unavailable during the term of the Credit Facility, interest will be based upon the Prime Rate (as defined in the Loan Agreement) after notifying the Company. The Credit Facility is secured by the assets of the Company. Among other affirmative covenants set forth in the Loan Agreement, the Company must maintain (i) a minimum Debt Service Coverage Ratio (as defined in the Loan Agreement) of not less than 2.0 to 1.0, (ii) a maximum Leverage Ratio (as defined in the Loan Agreement) of at least 2.5 to 1.0, and (iii) a minimum Collateral Coverage Ratio (as defined in the Loan Agreement) of not less than 1.5 to 1.0. Additionally, the Loan Agreement contains negative covenants prohibiting, among other things, the creation of certain liens, the alteration of the nature or character of the Company’s business, and transactions with the Company’s shareholders, directors, officers, subsidiaries and/or affiliates other than with respect to (i) the repurchase of the issued and outstanding capital stock of the Company from the stockholders of the Company or (ii) the declaration and payment of dividends to the stockholders of the Company. At December 31, 2018 and 2017, the Company had no borrowings outstanding under the Credit Facility. The Company incurred $0.1 million and $0.1 million of interest expense, related to the Credit Facility during the years ended December 31, 2018 and 2017, respectively, and no interest expense for the year ended December 31, 2016.

Stockholders' Equity and Stock

Stockholders' Equity and Stock Based Compensation	12 Months Ended
	Dec. 31, 2018
Stockholders' Equity and Stock Based Compensation
Stockholders' Equity and Stock Based Compensation	7. Stockholders’ Equity and Stock-Based Compensation At the annual stockholder’s meeting held on June 6, 2012, the Company’s stockholders approved the 2012 Stock-Based Compensation Plan (the “2012 Plan”). The 2012 Plan authorizes the grant of Stock Options, Stock Units, Stock Appreciation Rights, Restricted Stock, Deferred Stock, Stock Bonuses and other equity-based awards. The total number of shares of Common Stock initially available for award under the 2012 Plan was 600,000, which was increased to 1,000,000 shares by shareholder approval at the Company’s 2018 Annual Meeting in June 2018. As of December 31, 2018, the number of shares of Common Stock available for future award grants to employees, officers and directors under the 2012 Plan is 530,022. During 2017, the Company granted a total of 87,076 shares of Restricted Stock to officers and employees. These shares of Restricted Stock vest between twelve and twenty equal quarterly installments. In 2017, a total of 22,694 shares of Restricted Stock were forfeited as a result of directors and employees terminating employment with the Company. During 2018, the Company granted a total of 123,000 shares of Restricted Stock to officers, directors and employees. These shares of Restricted Stock vest between immediate vesting and twenty equal quarterly installments. In 2018, a total of 7,176 shares of Restricted Stock were forfeited as a result of directors and employees terminating employment with the Company. During 2018, the Board of Directors approved certain Restricted Stock awards to officers of the Company, whereby the underlying number of shares to be issued are dependent on the Company meeting certain performance targets during the year. Subsequent to December 31, 2018, the Company issued 20,405 shares of Restricted Stock at a grant date fair value of $12.80 to satisfy these awards, which vests over sixteen quarterly installments. There was no options activity during the year ended December 31, 2018 and 2017 and there were no options outstanding or exercisable at December 31, 2018 and 2017, respectively, under the Company’s 2012 Plan. Under the various plans, options that are cancelled can be reissued. At December 31, 2018, no cancelled options were reserved for future reissuance. A summary of nonvested shares of Restricted Stock awards outstanding under the Company’s 2012 Plan as of December 31, 2018, and 2017 and changes during the years ended December 31, 2018 and 2017 is as follows: Weighted Average Grant Date Shares Fair Value Nonvested shares at January 1, 2017 186,081 $ 16.48 Granted in 2017 87,076 18.25 Vested in 2017 (88,645) 16.56 Forfeited in 2017 (22,694) 10.87 Nonvested shares at December 31, 2017 161,818 $ 17.26 Granted in 2018 123,000 14.97 Vested in 2018 (180,898) 16.62 Forfeited in 2018 (7,176) 15.44 Nonvested shares at December 31, 2018 96,744 $ 15.67 As of December 31, 2018, there was approximately $1.4 million of total unrecognized compensation cost related to nonvested share-based compensation arrangements. The unrecognized compensation cost is expected to be recognized over a weighted-average period of 3.0 years. For the years ended December 31, 2018, 2017 and 2016, the Company recognized share-based compensation cost of approximately $2.8 million, $1.5 million and $1.7 million, respectively. During the year ended December 31, 2018, $1.7 million of stock compensation expense related to the accelerated vesting of shares upon resignation of the Company former Chief Executive Officer, was included in separation expense. All other share-based compensation is included in selling, general and administrative expenses. The Company does not capitalize any share-based compensation cost.

Defined Contribution Plan

Defined Contribution Plan	12 Months Ended
	Dec. 31, 2018
Defined Contribution Plan
Defined Contribution Plan	8. Defined Contribution Plan The Company maintains a defined contribution plan covering substantially all domestic employees. Participating employees may make contributions to the plan, through payroll deductions. Matching contributions are made by the Company equal to 50% of the employee’s contribution to the extent such employee contribution did not exceed 6% of their compensation. During the years ended December 31, 2018, 2017 and 2016, the Company expensed approximately $264 thousand, $237 thousand and $211 thousand, respectively, related to this plan.

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Dec. 31, 2018
Commitments and Contingencies
Commitments and Contingencies	9. Commitments and Contingencies Leases Operating leases primarily relate to the lease of the space used for our operations in Eatontown, New Jersey; Mesa, Arizona; Mississauga, Canada; and Amsterdam, Netherlands. Future minimum rental commitments under non-cancellable operating leases are as follows: 2019 $ 484 2020 438 2021 405 2022 414 2023 463 Thereafter 1,572 $ 3,776 Rent expense for the years ended December 31, 2018, 2017 and 2016 was approximately $496 thousand, $509 thousand and $455 thousand, respectively. Employment Agreements The Company has entered into employment agreements with its President and Chief Executive Officer, Executive Vice President, Vice President and Chief Information Officer, Vice President New Business Development, Vice President and Chief Financial Officer, and Vice President and Chief Accounting Officer In the event that the Company’s, President and Chief Executive Officer, employment is terminated for any reason other than for cause, he is entitled to receive severance payments equal to twelve months at the then applicable annual base salary. Additionally, if during the term of his employment and on or within twelve months following a change of control his employment terminates, he is entitled to receive severance payments equal to twenty-four months at the then applicable annual base salary and actual incentive bonus earned in the year prior paid over a twelve-month period. The Company’s Executive Vice President, Vice President and Chief Information Officer, Vice President New Business Development, Vice President and Chief Financial Officer, and Vice President and Chief Accounting Officer are entitled to a severance payment and severance payments, respectively for six months at the then applicable annual base salary if the Company terminates their respective employment for any reason other than for cause. The Executive Vice President and Vice President New Business Development are also entitled to receive continuation of certain employee benefits and their outstanding equity awards become immediately vested if the Company terminates their respective employment for any reason other than for cause. Additionally, in the event that a change of control of the Company occurs (as described in the employment agreement), the Chief Financial Officer’s outstanding equity awards become immediately vested and he is entitled to receive a lump-sum payment equal to 1.0 times his then annual salary and actual incentive bonus earned in the year prior to such change in control. On May 11, 2018, the Company entered into a Separation and Release Agreement (the “Separation Agreement”) with its former Chairman of the Board, President and Chief Executive Officer upon his resignation from the Company. The Separation Agreement supersedes and replaces the Employment Agreement, dated January 12, 2006, between the former Chairman of the Board, President and Chief Executive Officer and the Company. The former Chairman of the Board, President and Chief Executive Officer is entitled to receive (a) a cash payment of $0.7 million, payable in 12 consecutive, equal monthly installments on the fifteenth day of each month, commencing June 15, 2018; provided that the monthly payments were delayed until the earlier to occur of the former Chairman of the Board, President and Chief Executive Officer death or November 19, 2018 (the “Delay Period”), and upon the expiration of the Delay Period, all payments that were delayed were paid in a lump sum, (b) a Other As of December 31, 2018, the Company has no standby letters of credit, has no standby repurchase obligations or other commercial commitments. The Company has a line of credit see Note 6 (Credit Facility). Other than employment arrangements and other management compensation arrangements, the Company is not engaged in any transactions with related parties.

Industry, Segment and Geographi

Industry, Segment and Geographic Financial Information	12 Months Ended
	Dec. 31, 2018
Industry, Segment and Geographic Financial Information
Industry, Segment and Geographic Financial Information	10. Industry, Segment and Geographic Financial Information The Company distributes software developed by others through resellers indirectly to customers worldwide. We also resell computer software and hardware developed by others and provide technical services directly to customers in the USA and Canada. We also operate a sales branch in Europe to serve our customers in this region of the world. Geographic revenue and identifiable assets related to operations as of and for the years ended December 31, 2018, 2017 and 2016 were as follows. Revenue is allocated to a geographic area based on the location of the sale, which is generally the customer’s country of domicile. No one country other than the USA represents more than 10% of net sales for 2018, 2017 or 2016. 2018 2017 2016 Net sales to Unaffiliated Customers: USA $ 159,275 $ 137,185 $ 141,571 Canada 12,036 11,835 12,694 Rest of the world 10,133 11,547 10,344 Total $ 181,444 $ 160,567 $ 164,609 2018 2017 2016 Identifiable Assets by Geographic Areas at December 31, USA and Rest of the world $ 100,681 $ 97,481 $ 108,568 Canada 7,290 7,209 7,684 Total $ 107,971 $ 104,690 $ 116,252 FASB ASC Topic 280, “Segment Reporting,” requires that public companies report profits and losses and certain other information on their “reportable operating segments” in their annual and interim financial statements. The internal organization used by the Company’s Chief Operating Decision Maker (CODM) to assess performance and allocate resources determines the basis for reportable operating segments. The Company’s CODM is the Chief Executive Officer. The Company is organized into two reportable operating segments. The “Lifeboat Distribution” segment distributes technical software to corporate resellers, value added resellers (VARs), consultants and systems integrators worldwide. The “TechXtend” segment is a value-added reseller of software, hardware and services for corporations, government organizations and academic institutions in the USA and Canada. As permitted by FASB ASC Topic 280, the Company has utilized the aggregation criteria in combining its operations in Canada with the domestic segments as they provide the same products and services to similar clients and are considered together when the CODM decides how to allocate resources. Segment income is based on segment revenue less the respective segment’s cost of revenues as well as segment direct costs (including such items as payroll costs and payroll related costs, such as profit sharing, incentive awards and insurance) and excluding general and administrative expenses not attributed to a business unit. The Company only identifies accounts receivable and inventory by segment as shown below as “Selected Assets” by segment; it does not allocate its other assets, including capital expenditures by segment. Year ended December 31, 2018 2017 2016 Revenue: Lifeboat Distribution $ 163,564 $ 141,708 $ 137,113 TechXtend 17,880 18,859 27,496 181,444 160,567 164,609 Gross Profit: Lifeboat Distribution $ 23,441 $ 23,183 $ 22,349 TechXtend 3,479 3,893 4,982 26,920 27,076 27,331 Direct Costs: Lifeboat Distribution $ 8,920 $ 7,952 $ 7,478 TechXtend 1,707 1,879 2,098 10,627 9,831 9,576 Segment Income Before Taxes: (1) Lifeboat Distribution $ 14,521 $ 15,231 $ 14,871 TechXtend 1,772 2,014 2,884 Segment Income Before Taxes 16,293 17,245 17,755 General and administrative $ 9,692 $ 9,432 $ 9,139 Separation expenses 2,446 — — Interest, net 907 699 318 Foreign currency transaction gains (loss) 55 41 (1) Income before taxes $ 5,117 $ 8,553 $ 8,933 (1) Excludes general corporate expenses including separation, interest, and foreign currency translation expenses. The following table presents historical information by segment adjusted as if the standard had been adopted on January 1, 2016 for all periods presented. Year ended December 31, 2017 Year ended December 31, 2016 As Impact As As Impact As Reported of Adoption Adjusted Reported of Adoption Adjusted Lifeboat Distribution Segment: Net sales $ 417,427 $ (275,719) $ 141,708 $ 369,519 $ (232,406) $ 137,113 Cost of sales 394,244 (275,719) 118,525 347,170 (232,406) 114,764 Gross profit $ 23,183 $ — $ 23,183 $ 22,349 $ — $ 22,349 TechXtend Segment: Net sales $ 31,952 $ (13,093) $ 18,859 $ 48,612 $ (21,116) $ 27,496 Cost of sales 28,059 (13,093) 14,966 43,630 (21,116) 22,514 Gross profit $ 3,893 $ — $ 3,893 $ 4,982 $ — $ 4,982 December 31, Selected Assets by Segment: 2018 2017 Lifeboat Distribution $ 77,610 $ 73,794 TechXtend 11,542 21,451 Segment Select Assets 89,152 95,245 Corporate Assets 18,819 9,445 Total Assets $ 107,971 $ 104,690 Disaggregation of revenue: Year ended December 31, 2018 2017 2016 Lifeboat Distribution Hardware, software and other products $ $ $ Software - security & highly interdependent with support Maintenance, support & other services Net Sales $ $ $ TechXtend Hardware, software and other products $ 16,300 $ 17,182 $ 24,572 Software - security & highly interdependent with support 440 474 578 Maintenance, support & other services 1,140 1,203 2,346 Net Sales $ $ $ The Company had two customers that each accounted for more than 10% of total consolidated net sales for 2018. For the year ended December 31, 2018, CDW Corporation (“CDW”) and Software House International Corporation (“SHI”), accounted for 25.6%, and 16.6%, respectively, of consolidated net sales and as of December 31, 2018, 35.6% and 15.0%, respectively, of total net accounts receivable. For the year ended December 31, 2018, Sophos and SolarWinds accounted for 23.9% and 15.3%, respectively of our consolidated purchases. For the year ended December 31, 2017, CDW and SHI accounted for 18.0%, and 20.1%, respectively, of consolidated net sales and as of December 31, 2017, 28.2%, and 14.9%, respectively, of total net accounts receivable. For the year ended December 31, 2017, Sophos and SolarWinds accounted for 26.4% and 14.7%, respectively of our consolidated purchases. For the year ended December 31, 2016, CDW and SHI accounted for 17.3%, and 16.3%, respectively, of consolidated net sales. For the year ended December 31, 2016, Sophos and SolarWinds accounted for 23.1% and 10.8%, respectively of our consolidated purchases. Our top five customers accounted for 55%, 50%, and 46% of consolidated net sales in 2018, 2017 and 2016, respectively.

Quarterly Results of Operations

Quarterly Results of Operations (Unaudited)	12 Months Ended
	Dec. 31, 2018
Quarterly Results of Operations (Unaudited)
Quarterly Results of Operations (Unaudited)	11. Quarterly Results of Operations (Unaudited) The following table presents summarized quarterly results for 2018: First Second Third Fourth Net sales $ 40,552 $ 43,914 $ 47,923 $ 49,055 Gross profit 6,894 6,498 6,303 7,225 Net income (loss) 1,598 (1,117) 1,318 1,739 Basic net income (loss) per common share $ 0.36 $ (0.25) $ 0.29 $ 0.39 Diluted net income (loss) per common share $ 0.36 $ (0.25) $ 0.29 $ 0.39 The following table presents summarized quarterly results for 2017 (adjusted): First Second Third Fourth Net sales $ 38,091 $ 39,021 $ 39,018 $ 44,437 Gross profit 6,758 6,572 6,244 7,502 Net income 1,319 1,273 1,341 1,128 Basic net income per common share $ 0.29 $ 0.28 $ 0.30 $ 0.25 Diluted net income per common share $ 0.29 $ 0.28 $ 0.30 $ 0.25 The following tables presents the effect of the adoption of ASC 606 on net sales (see Note 3) for each quarter of 2017: As Impact As Reported of Adoption Adjusted First $ 112,795 $ (74,704) $ 38,091 Second 102,982 (63,961) 39,021 Third 106,646 (67,628) 39,018 Fourth 126,956 (82,519) 44,437 Total net sales $ 449,379 $ (288,812) $ 160,567 During the fourth quarter of 2018, the Company determined certain balances related to customer return liabilities should be reclassified between current assets and liabilities in accordance with ASC 606. The adjustments had no impact on net equity and was determined to not have a material impact on previously presented financial statements. However, the Company will present its previously issued financial statements on a restated basis in future comparative presentations in order to be consistent with the current period presentation. The following tables present certain balance sheet reclassification adjustments relating to the adoption of ASC 606 on previously presented quarters of 2018: As of September 30, 2018 As Impact As Reported of Adoption Adjusted Assets: Accounts receivable, net of allowances $ 83,762 $ 1,600 $ 85,362 Prepaid expenses and other current assets $ 525 $ 1,504 $ 2,029 Liabilities: Accounts payable and accrued expenses $ 62,675 $ 3,104 $ 65,779 As of June 30, 2018 As Impact As Reported of Adoption Adjusted Assets: Accounts receivable, net of allowances $ 71,780 $ 1,123 $ 72,903 Prepaid expenses and other current assets $ 572 $ 1,055 $ 1,627 Liabilities: Accounts payable and accrued expenses $ 57,765 $ 2,178 $ 59,943 As of March 31, 2018 As Impact As Reported of Adoption Adjusted Assets: Accounts receivable, net of allowances $ 82,019 $ 1,324 $ 83,343 Prepaid expenses and other current assets $ 611 $ 1,245 $ 1,856 Liabilities: Accounts payable and accrued expenses $ 67,931 $ 2,569 $ 70,500

Separation Charges

Separation Charges	12 Months Ended
	Dec. 31, 2018
Separation Charges
Separation Charges	12. Separation Charges The Company recorded expenses of $2.4 million during the year ended December 31, 2018 related to the Separation Agreement consisting of $1.7 million for accelerated vesting of restricted stock grants and $0.8 million in other cash payments to be made over during the next twelve months. The compensation is subject to certain limitations on deductibility for income tax purposes under Section 162(m) of the Internal Revenue Code (see Note 5).

Schedule II--Valuation and Qual

Schedule II--Valuation and Qualifying Accounts	12 Months Ended
	Dec. 31, 2018
Schedule II--Valuation and Qualifying Accounts
Schedule II--Valuation and Qualifying Accounts	Charged to Beginning Cost and Ending Description Balance Expense Deductions Balance Year ended December 31, 2016 Allowances for accounts receivable $ 1,060 $ (73) $ 17 $ 970 Reserve for inventory obsolescence $ 16 $ 3 $ 4 $ 15 Year ended December 31, 2017 Allowances for accounts receivable $ 970 $ (95) $ 13 $ 862 Reserve for inventory obsolescence $ 15 $ — $ 3 $ 12 Year ended December 31, 2018 Allowances for accounts receivable $ 862 $ (75) $ 2 $ 785 Reserve for inventory obsolescence $ 12 $ — $ 4 $ 8

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2018
Summary of Significant Accounting Policies
Principles of Consolidation and Operations	Principles of Consolidation and Operations The consolidated financial statements include the accounts of Wayside Technology Group, Inc. and its wholly owned subsidiaries . All intercompany transactions and balances have been eliminated.
Use of Estimates	Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“US GAAP”) requires management to make extensive use of certain estimates and assumptions which 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 revenues and expenses during the reporting periods. The significant areas of estimation include but are not limited to accounting for allowance for doubtful accounts, sales returns, allocation of revenue in multiple deliverable arrangements, principal vs. agent considerations, discount rates applicable to long term receivables, inventory obsolescence, income taxes, depreciation, contingencies and stock-based compensation. Actual results could differ from those estimates.
Net Income Per Common Share	Net Income Per Common Share Our basic and diluted earnings per share are computed using the two-class method. The ck and participating securities according to their participation rights in dividends and undistributed earnings or losses. Non-vested restricted stock awards that include non-forfeitable rights to dividends are considered participating securities. Per share amounts are computed by dividing net income available to common shareholders by the weighted average shares outstanding during each period. Diluted and basic earnings per share are the same because the restricted shares are the only potentially dilutive security. A reconciliation of the numerators and denominators of the basic and diluted per share computations follows: Year ended December 31, 2018 2017 2016 Numerator: Net income $ 3,538 $ 5,062 $ 5,901 Less distributed and undistributed income allocated to participating securities 118 222 251 Net income attributable to common shareholders 3,420 4,840 5,650 Denominator: Weighted average common shares (Basic) 4,358 4,299 4,503 Weighted average common shares including assumed conversions (Diluted) 4,358 4,299 4,503 Basic net income per share $ 0.78 $ 1.13 $ 1.25 Diluted net income per share $ 0.78 $ 1.13 $ 1.25
Cash Equivalents	Cash Equivalents The Company considers all liquid short-term investments with maturities of 90 days or less when purchased to be cash equivalents.
Accounts Receivable	Accounts Receivable Accounts receivable principally represents amounts collectible from our customers. The Company performs ongoing credit evaluations of its customers but generally does not require collateral to support any outstanding obligation. From time to time, we sell accounts receivable to a financial institution on a non-recourse basis for cash, less a discount. The Company has no significant retained interests or servicing liabilities related to the accounts receivable sold. Proceeds from the sale of receivables approximated their discounted book value and were included in operating cash flows on the Consolidated Statements of Cash Flows.
Allowance for Accounts Receivable	Allowance for Accounts Receivable We provide allowances for doubtful accounts related to accounts receivable for estimated losses resulting from the inability of our customers to make required payments. We take into consideration the overall quality and aging of the receivable portfolio along with specifically identified customer risks. If actual customer payment performance were to deteriorate to an extent not expected, additional allowances may be required. At the time of sale, we record an estimate for sales returns based on historical experience. If actual sales returns are greater than estimated by management, additional expense may be incurred.
Foreign Currency Translation	Foreign Currency Translation Assets and liabilities of the Company’s foreign subsidiaries have been translated using the end of the reporting period exchange rates, and related revenues and expenses have been translated at average rates of exchange in effect during the period. Cumulative translation adjustments have been classified within accumulated other comprehensive income, which is a separate component of stockholders’ equity in accordance FASB ASC Topic No. 220, “Comprehensive Income”. Foreign currency transaction gains and losses are recorded as income or expenses as amounts are settled.
Concentration of Credit Risk	Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations in credit risk consist of cash and cash equivalents. The Company’s cash and cash equivalents, at times, may exceed federally insured limits. The Company’s cash and cash equivalents are deposited primarily in banking institutions with global operations. The Company has not experienced any losses in such accounts. The Company believes it is not exposed to any significant credit risk on cash and cash equivalents.
Financial Instruments	Financial Instruments The carrying amounts of financial instruments, including cash and cash equivalents, accounts receivable and accounts payable approximated fair value as of December 31, 2018 and 2017, because of the relative short maturity of these instruments. The Company’s accounts receivable-long-term is discounted to their present value at prevailing market rates at the time of sale which, approximates fair value as of December 31, 2018 and 2017.
Inventory	Inventory Inventory, consisting primarily of finished products held for resale, is stated at the lower of cost or market.
Vendor Prepayments	Vendor Prepayments
Equipment and Leasehold Improvements	Equipment and Leasehold Improvements Equipment and leasehold improvements are stated at cost. Equipment depreciation is calculated using the straight-line method over three to five years. Leasehold improvements are amortized using the straight-line method over the estimated useful lives of the assets or the related lease terms, whichever is shorter.
Accounts Receivable-Long-Term	Accounts Receivable-Long-Term Accounts receivable-long-term result from product sales with extended payment terms that are discounted to their present values at the prevailing market rates at the time of sale. In subsequent periods, the accounts receivable is increased to the amounts due and payable by the customers through the accretion of interest income on the unpaid accounts receivable due in future years. The amounts under these long-term accounts receivable due within one year are reclassified to the current portion of accounts receivable.
Comprehensive Income	Comprehensive Income Comprehensive income consists of net income for the period and the impact of unrealized foreign currency translation adjustments. The foreign currency translation adjustments are not currently adjusted for income taxes as they relate to permanent investments in international subsidiaries.
Revenue Recognition	Revenue Recognition Effective January 1, 2018, the Company adopted the requirements of Accounting Standards Update, or ASU, No. 2014-09 Revenue from Contracts with Customers, or Accounting Standard Codification (“ASC”) 606 using the full retrospective method, as discussed in detail in Note 3. All amounts and disclosures set forth in this Annual Report on Form 10-K have been updated to comply with ASC 606 as discussed in Note 3.
Stock-Based Compensation	Stock-Based Compensation The Company has stockholder-approved stock incentive plans for employees and directors. Stock- based compensation is recognized based on the grant date fair value and is recognized as expense on a straight-line basis over the requisite service period.
Separation Expenses	Separation Expenses Separation expenses consist of expenses related to accelerated vesting of restricted stock and other cash payments to be made to the Company’s former Chairman of the Board, President and Chief Executive Officer pursuant to a separation agreement dated May 11, 2018.
Interest, net	Interest, net Interest, net consists primarily of income from the amortization of the discount on accounts receivable long term, net of interest expense on the Company’s credit facility.
Income Taxes	Income Taxes The Company utilizes the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are determined based on differences between financial reporting and tax basis of assets and liabilities and are measured using enacted tax rates and laws that will be in effect when the differences are expected to reverse. This method also requires a valuation allowance against the net deferred tax asset if, based on the weighted available evidence, it is more likely than not that some or all the deferred tax assets will not be realized. The Company’s policy is to recognize interest and penalties related to uncertain tax positions in income tax expense when assessed. The Company accounts for uncertainties in accordance with FASB ASC 740 “Income Taxes”. This standard clarified the accounting for uncertainties in income taxes. The standard prescribes criteria for recognition and measurement of tax positions. It also provides guidance on derecognition, classification, interest and penalties, and disclosures related to income taxes associated with uncertain tax positions. The Company classifies all deferred tax asset or liabilities as non-current on the balance sheet in accordance with ASU 2015-17 which the Company has adopted.
Reclassifications	Reclassifications
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU 2014-09, Revenue from Contracts with Customers, superseding the previous revenue recognition requirements, along with most existing industry-specific guidance. In March, April, May and December 2016, the FASB issued additional updates to the new accounting standard which provide supplemental adoption guidance and clarifications. The guidance requires an entity to review contracts in five steps: 1) identify the contract, 2) identify performance obligations, 3) determine the transaction price, 4) allocate the transaction price, and 5) recognize revenue in order to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The new standard also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenue arising from contracts with customers. The Company adopted the new standard on January 1, 2018, using the full retrospective method which required us to recast our historical financial information to reflect the adoption as of the earliest reporting period presented. The most significant impact of adopting the standard relates to the determination of whether the Company is acting as a principal or an agent in the sale of third-party security software and software that is highly interdependent with support, as well as maintenance, support or other services. See Note 3 (Revenue Recognition). In February 2016, the FASB issued ASU 2016-02, Leases ("ASU 2016-02"). ASU 2016-02 supersedes the lease guidance under FASB ASC Topic 840, Leases, resulting in the creation of FASB ASC Topic 842, Leases. ASU 2016-02 requires a lessee to recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term from operating leases. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. In transition, lessees and lessors were originally required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. In July 2018, FASB issued ASU No. 2018-11, Targeted Improvements. This update still requires modified retrospective transition; however, it adds the option to initially apply the new standard at the adoption date and recognize a cumulative-effect adjustment in the current period instead of at the beginning of the earliest period presented. This ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018. The Company expects to elect to adopt the new accounting standard using the modified retrospective transition option. The Company is in the process of finalizing its evaluation of current leases and quantifying the impact to its balance sheet. The Company expects to recognize right of use assets and leases liabilities between $2.5 million and $3.5 million as of January 1, 2019. The Company does not expect the adoption of this standard to have a material impact on the Company’s Consolidated Statements of Earnings. In June 2016, the FASB issued Accounting Standards Update No. 2016-13, Financial Instruments - Credit Losses (Topic 326) ("ASU No. 2016-13"). ASU No. 2016-13 revises the methodology for measuring credit losses on financial instruments and the timing of when such losses are recorded. ASU No. 2016-13 is effective for the Company in the first quarter of 2020, with early adoption permitted, and is to be applied using a modified retrospective approach. The Company is currently evaluating the potential effects of adopting the provisions of ASU No. 2016-13 on its Consolidated Financial Statements, particularly its recognition of allowances for accounts receivable. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (“ASU 2016-15”) which reduces diversity in practice in how certain transactions are classified in the statement of cash flows. The new standard became effective for the Company beginning with the first quarter of 2018. The adoption of this guidance did not have a material impact on the Company’s Consolidated Financial Statements. In May 2017, the FASB issued ASU No. 2017-09, “Scope of Modification Accounting”, to reduce diversity in practice and provide clarity regarding existing guidance in ASC 718, “Stock Compensation”. The amendments in this updated guidance clarify that an entity should apply modification accounting in response to a change in the terms and conditions of an entity’s share-based payment awards unless three newly specified criteria are met. This guidance is effective for fiscal years beginning after December 15, 2017, including interim periods within that reporting period. The new guidance was effective for the Company on a prospective basis beginning on January 1, 2018 and did not impact the Company’s Consolidated Financial Statements as it is not the Company’s practice to change either the terms or conditions of stock-based payment awards once they are granted. In February 2018, the FASB issued ASU 2018-02, “Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income” (“ASU 2018-02”), which permits the reclassification of stranded tax effects resulting from the Tax Cuts and Jobs Act (the “TCJA” or “U.S. tax reform”) from Accumulated other comprehensive income (loss) to Retained earnings. This new guidance is effective for the Company beginning on January 1, 2019 and must be applied either in the period of adoption or retrospectively to periods in which the effects of the TCJA are recognized. The adoption of this guidance is not expected to have a material impact on the Company’s Consolidated Financial Statements. In March 2018, the FASB issued ASU 2018-05, “Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 (SEC Update), Income Taxes (Topic 740)” (“ASU-2018-05”). ASU 2018-05 provides guidance regarding the recording of tax impacts where uncertainty exists, in the period of adoption of the TCJA, which allowed companies to reflect provisional amounts for those specific income tax effects of the TCJA for which the accounting under ASC Topic 740 is incomplete but for which a reasonable estimate could be determined. The Company completed its Federal and State income tax filings for 2017 with no material change to amounts previously reported. In June 2018, the FASB issued Accounting Standards Update (“ASU”) No. 2018-07, “Compensation — Stock Compensation (Topic 718), Improvements to Nonemployee Share-Based Payment Accounting” (“ASU 2018-07”), which aligns the measurement and classification guidance for share-based payments to nonemployees with that for employees, with certain exceptions. It expands the scope of ASC 718 to include share-based payments granted to nonemployees in exchange for goods or services used or consumed in the entity’s own operations and supersedes the guidance in ASC 505-50. The ASU retains the existing cost attribution guidance, which requires entities to recognize compensation cost for nonemployee awards in the same period and in the same manner (i.e., capitalize or expense) they would if they paid cash for the goods or services, but it moves the guidance to ASC 718. The guidance also allows nonpublic entities to account for nonemployee awards using certain practical expedients that are already available for employee awards, but the same accounting policies must be used for awards to both employees and nonemployees. ASU 2018-07 is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. The Company is currently evaluating the impact of adopting this guidance. In July 2018, the FASB issued ASU 2018-09 – Codification Improvements (“ASU 2018-09”), which facilitates amendments to a variety of topics to clarify, correct errors in, or make minor improvements to the accounting standards codification. The effective date of the standard is dependent on the facts and circumstances of each amendment. Some amendments do not require transition guidance and will be effective upon the issuance of this standard. Most of the amendments in ASU 2018-09 will be effective in annual periods beginning after December 15, 2018. This new guidance is effective for the Company beginning on January 1, 2019 and is not expected to have a material impact on the Company’s Consolidated Financial Statements and related disclosures.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	12 Months Ended
	Dec. 31, 2018
Summary of Significant Accounting Policies
Schedule of reconciliation of the numerators and denominators for computations of the basic and diluted per share	Year ended December 31, 2018 2017 2016 Numerator: Net income $ 3,538 $ 5,062 $ 5,901 Less distributed and undistributed income allocated to participating securities 118 222 251 Net income attributable to common shareholders 3,420 4,840 5,650 Denominator: Weighted average common shares (Basic) 4,358 4,299 4,503 Weighted average common shares including assumed conversions (Diluted) 4,358 4,299 4,503 Basic net income per share $ 0.78 $ 1.13 $ 1.25 Diluted net income per share $ 0.78 $ 1.13 $ 1.25

Revenue Recognition (Tables)

Revenue Recognition (Tables)	12 Months Ended
	Dec. 31, 2018
Summary of disaggregation of revenue according to revenue type	Net sales: Year ended December 31, 2018 2017 2016 Hardware, software and other products $ $ $ Software - security & highly interdependent with support Maintenance, support & other services Net sales $ $ $
ASU 2014-09
Schedule of impact on adoption of standard	The tables below present historical information adjusted as if the standard had been adopted on January 1, 2016 for all periods presented. The effect of these changes for each quarter of 2017 is presented in Note 11. Year ended December 31, 2017 Year ended December 31, 2016 As Impact As As Impact As Reported of Adoption Adjusted Reported of Adoption Adjusted Net sales $ 449,379 $ (288,812) $ 160,567 $ 418,131 $ (253,522) $ 164,609 Cost of sales 422,303 (288,812) 133,491 390,800 (253,522) 137,278 Gross profit $ 27,076 $ — $ 27,076 $ 27,331 $ — $ 27,331 The following table presents the effect from the adoption of ASC 606 on the consolidated balance sheet. As of December 31, 2017 As Impact As Reported of Adoption Adjusted Assets: Accounts receivable, net of allowances $ 76,937 $ 1,240 $ 78,177 Prepaid expenses and other current assets $ 553 $ 1,165 $ 1,718 Liabilities: Accounts payable and accrued expenses $ 62,792 $ 2,405 $ 65,197

Balance Sheet Detail (Tables)

Balance Sheet Detail (Tables)	12 Months Ended
	Dec. 31, 2018
Balance Sheet Detail
Schedule of equipment and leasehold improvements, net	2018 2017 Equipment $ 2,146 $ 1,988 Leasehold improvements 1,332 1,335 3,478 3,323 Less accumulated depreciation and amortization (1,890) (1,495) $ 1,588 $ 1,828
Schedule of accounts receivable - long term, net	2018 2017 Total amount due from customer $ 11,169 $ 20,886 Less unamortized discount (391) (912) Less current portion included in accounts receivable (7,622) (12,537) $ 3,156 $ 7,437
Schedule of accounts payable and accrued expenses	2018 2017 Trade accounts payable $ 62,751 $ 60,075 Accrued expenses 3,902 5,122 $ 66,653 $ 65,197
Schedule of accumulated other comprehensive loss	2018 2017 Foreign currency translation adjustments $ (1,419) $ (913) $ (1,419) $ (913)

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2018
Income Taxes
Schedule of deferred tax assets and liabilities	2018 2017 Deferred tax assets: Accruals and reserves $ 331 $ 331 Deferred rent credit 151 161 Total deferred tax assets 482 492 Deferred tax liabilities: Depreciation and amortization (337) (354) Total deferred tax liabilities (337) (354) Net deferred tax asset $ 145 $ 138
Schedule of provision (benefit) for income taxes	Year ended December 31, 2018 2017 2016 Current: Federal $ 967 $ 2,253 $ 2,515 State 327 552 55 Foreign 292 408 357 1,586 3,213 2,927 Deferred: Federal (11) 273 102 State 4 5 3 (7) 278 105 $ 1,579 $ 3,491 $ 3,032 Effective Tax Rate % % %
Schedule of difference between total tax expense and the amount computed by applying the U.S. statutory federal income tax rate to income before income taxes	Year ended December 31, 2018 2017 2016 Statutory rate applied to pretax income $ 1,075 $ 2,908 $ 3,037 Section 162(m) and other permanent items 203 — — Potential state tax obligations, net of federal tax benefit 158 375 — State income taxes, net of federal income tax benefit 99 36 36 Impact of new tax law — 189 — Foreign income taxes over (under) U.S. statutory rate 50 (70) (64) Other items (6) 53 23 Income tax expense $ 1,579 $ 3,491 $ 3,032
Schedule of components of income before income taxes	Year ended December 31, 2018 2017 2016 United States $ 3,960 $ 6,929 $ 7,514 Foreign 1,157 1,624 1,419 $ 5,117 $ 8,553 $ 8,933
Schedule of activity related to unrecognized tax benefits	2018 2017 Balance as of January 1 $ 443 $ - Additions related to prior period tax positions 200 443 Reductions related to settlements with tax authorities (102) - Balance as of December 31 $ 541 $ 443

Stockholders' Equity and Stoc_2

Stockholders' Equity and Stock Based Compensation (Tables)	12 Months Ended
	Dec. 31, 2018
Stockholders' Equity and Stock Based Compensation
Summary of nonvested shares of Restricted Stock awards outstanding and the changes during the period	Weighted Average Grant Date Shares Fair Value Nonvested shares at January 1, 2017 186,081 $ 16.48 Granted in 2017 87,076 18.25 Vested in 2017 (88,645) 16.56 Forfeited in 2017 (22,694) 10.87 Nonvested shares at December 31, 2017 161,818 $ 17.26 Granted in 2018 123,000 14.97 Vested in 2018 (180,898) 16.62 Forfeited in 2018 (7,176) 15.44 Nonvested shares at December 31, 2018 96,744 $ 15.67

Commitments and Contingencies (

Commitments and Contingencies (Tables)	12 Months Ended
	Dec. 31, 2018
Commitments and Contingencies
Schedule of future minimum rental commitments under non-cancellable operating leases	2019 $ 484 2020 438 2021 405 2022 414 2023 463 Thereafter 1,572 $ 3,776

Industry, Segment and Geograp_2

Industry, Segment and Geographic Financial Information (Tables)	12 Months Ended
	Dec. 31, 2018
Industry, Segment and Geographic Financial Information
Schedule of net sales to unaffiliated customers and identifiable assets by geographic areas	2018 2017 2016 Net sales to Unaffiliated Customers: USA $ 159,275 $ 137,185 $ 141,571 Canada 12,036 11,835 12,694 Rest of the world 10,133 11,547 10,344 Total $ 181,444 $ 160,567 $ 164,609 2018 2017 2016 Identifiable Assets by Geographic Areas at December 31, USA and Rest of the world $ 100,681 $ 97,481 $ 108,568 Canada 7,290 7,209 7,684 Total $ 107,971 $ 104,690 $ 116,252
Schedule of segment reporting information	Year ended December 31, 2018 2017 2016 Revenue: Lifeboat Distribution $ 163,564 $ 141,708 $ 137,113 TechXtend 17,880 18,859 27,496 181,444 160,567 164,609 Gross Profit: Lifeboat Distribution $ 23,441 $ 23,183 $ 22,349 TechXtend 3,479 3,893 4,982 26,920 27,076 27,331 Direct Costs: Lifeboat Distribution $ 8,920 $ 7,952 $ 7,478 TechXtend 1,707 1,879 2,098 10,627 9,831 9,576 Segment Income Before Taxes: (1) Lifeboat Distribution $ 14,521 $ 15,231 $ 14,871 TechXtend 1,772 2,014 2,884 Segment Income Before Taxes 16,293 17,245 17,755 General and administrative $ 9,692 $ 9,432 $ 9,139 Separation expenses 2,446 — — Interest, net 907 699 318 Foreign currency transaction gains (loss) 55 41 (1) Income before taxes $ 5,117 $ 8,553 $ 8,933 (1) Excludes general corporate expenses including separation, interest, and foreign currency translation expenses. The following table presents historical information by segment adjusted as if the standard had been adopted on January 1, 2016 for all periods presented. Year ended December 31, 2017 Year ended December 31, 2016 As Impact As As Impact As Reported of Adoption Adjusted Reported of Adoption Adjusted Lifeboat Distribution Segment: Net sales $ 417,427 $ (275,719) $ 141,708 $ 369,519 $ (232,406) $ 137,113 Cost of sales 394,244 (275,719) 118,525 347,170 (232,406) 114,764 Gross profit $ 23,183 $ — $ 23,183 $ 22,349 $ — $ 22,349 TechXtend Segment: Net sales $ 31,952 $ (13,093) $ 18,859 $ 48,612 $ (21,116) $ 27,496 Cost of sales 28,059 (13,093) 14,966 43,630 (21,116) 22,514 Gross profit $ 3,893 $ — $ 3,893 $ 4,982 $ — $ 4,982 December 31, Selected Assets by Segment: 2018 2017 Lifeboat Distribution $ 77,610 $ 73,794 TechXtend 11,542 21,451 Segment Select Assets 89,152 95,245 Corporate Assets 18,819 9,445 Total Assets $ 107,971 $ 104,690
Summary of disaggregation of segment revenue	Disaggregation of revenue: Year ended December 31, 2018 2017 2016 Lifeboat Distribution Hardware, software and other products $ $ $ Software - security & highly interdependent with support Maintenance, support & other services Net Sales $ $ $ TechXtend Hardware, software and other products $ 16,300 $ 17,182 $ 24,572 Software - security & highly interdependent with support 440 474 578 Maintenance, support & other services 1,140 1,203 2,346 Net Sales $ $ $

Quarterly Results of Operatio_2

Quarterly Results of Operations (Unaudited) (Tables)	12 Months Ended
	Dec. 31, 2018
Summary of quarterly results	The following table presents summarized quarterly results for 2018: First Second Third Fourth Net sales $ 40,552 $ 43,914 $ 47,923 $ 49,055 Gross profit 6,894 6,498 6,303 7,225 Net income (loss) 1,598 (1,117) 1,318 1,739 Basic net income (loss) per common share $ 0.36 $ (0.25) $ 0.29 $ 0.39 Diluted net income (loss) per common share $ 0.36 $ (0.25) $ 0.29 $ 0.39 The following table presents summarized quarterly results for 2017 (adjusted): First Second Third Fourth Net sales $ 38,091 $ 39,021 $ 39,018 $ 44,437 Gross profit 6,758 6,572 6,244 7,502 Net income 1,319 1,273 1,341 1,128 Basic net income per common share $ 0.29 $ 0.28 $ 0.30 $ 0.25 Diluted net income per common share $ 0.29 $ 0.28 $ 0.30 $ 0.25
ASU 2014-09
Summary of quarterly results	The following tables presents the effect of the adoption of ASC 606 on net sales (see Note 3) for each quarter of 2017: As Impact As Reported of Adoption Adjusted First $ 112,795 $ (74,704) $ 38,091 Second 102,982 (63,961) 39,021 Third 106,646 (67,628) 39,018 Fourth 126,956 (82,519) 44,437 Total net sales $ 449,379 $ (288,812) $ 160,567 During the fourth quarter of 2018, the Company determined certain balances related to customer return liabilities should be reclassified between current assets and liabilities in accordance with ASC 606. The adjustments had no impact on net equity and was determined to not have a material impact on previously presented financial statements. However, the Company will present its previously issued financial statements on a restated basis in future comparative presentations in order to be consistent with the current period presentation. The following tables present certain balance sheet reclassification adjustments relating to the adoption of ASC 606 on previously presented quarters of 2018: As of September 30, 2018 As Impact As Reported of Adoption Adjusted Assets: Accounts receivable, net of allowances $ 83,762 $ 1,600 $ 85,362 Prepaid expenses and other current assets $ 525 $ 1,504 $ 2,029 Liabilities: Accounts payable and accrued expenses $ 62,675 $ 3,104 $ 65,779 As of June 30, 2018 As Impact As Reported of Adoption Adjusted Assets: Accounts receivable, net of allowances $ 71,780 $ 1,123 $ 72,903 Prepaid expenses and other current assets $ 572 $ 1,055 $ 1,627 Liabilities: Accounts payable and accrued expenses $ 57,765 $ 2,178 $ 59,943 As of March 31, 2018 As Impact As Reported of Adoption Adjusted Assets: Accounts receivable, net of allowances $ 82,019 $ 1,324 $ 83,343 Prepaid expenses and other current assets $ 611 $ 1,245 $ 1,856 Liabilities: Accounts payable and accrued expenses $ 67,931 $ 2,569 $ 70,500

Description of Business (Detail

Description of Business (Details)	12 Months Ended
	Dec. 31, 2018segment
Description of Business
Number of reportable operating segments	2

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - Net Income Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Numerator:
Net income	$ 1,739	$ 1,318	$ (1,117)	$ 1,598	$ 1,128	$ 1,341	$ 1,273	$ 1,319	$ 3,538	$ 5,062	$ 5,901
Less distributed and undistributed income allocated to participating securities									118	222	251
Net income attributable to common shareholders									$ 3,420	$ 4,840	$ 5,650
Denominator:
Weighted average common shares (Basic)									4,358	4,299	4,503
Weighted average common shares including assumed conversions (Diluted)									4,358	4,299	4,503
Basic net income per common share (in dollars per share)	$ 0.39	$ 0.29	$ (0.25)	$ 0.36	$ 0.25	$ 0.30	$ 0.28	$ 0.29	$ 0.78	$ 1.13	$ 1.25
Diluted net income per common share (in dollars per share)	$ 0.39	$ 0.29	$ (0.25)	$ 0.36	$ 0.25	$ 0.30	$ 0.28	$ 0.29	$ 0.78	$ 1.13	$ 1.25

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Equipment and Revenue Recognition (Details) - Equipment	12 Months Ended
	Dec. 31, 2018
Minimum
Equipment and leasehold improvements
Useful lives of assets	3 years
Maximum
Equipment and leasehold improvements
Useful lives of assets	5 years

Summary of Significant Accoun_6

Summary of Significant Accounting Policies - Recently Issued Accounting Pronouncements (Details) - ASU 2016-02 - Forecast $ in Millions	Jan. 01, 2019USD ($)
Minimum
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Right of use assets	$ 2.5
Lease liabilities	2.5
Maximum
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Right of use assets	3.5
Lease liabilities	$ 3.5

Revenue Recognition - Impact on

Revenue Recognition - Impact on Adoption of ASC 606 to Income Statement (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Net sales	$ 49,055	$ 47,923	$ 43,914	$ 40,552	$ 44,437	$ 39,018	$ 39,021	$ 38,091	$ 181,444	$ 160,567	$ 164,609
Cost of sales									154,524	133,491	137,278
Gross profit	7,225	$ 6,303	$ 6,498	$ 6,894	7,502	6,244	6,572	6,758	26,920	27,076	27,331
ASU 2014-09
Impact of adoption	$ 0								$ 0
ASU 2014-09 | As Reported
Net sales					126,956	106,646	102,982	112,795		449,379	418,131
Cost of sales										422,303	390,800
Gross profit										27,076	27,331
ASU 2014-09 | Impact of Adoption
Net sales					$ (82,519)	$ (67,628)	$ (63,961)	$ (74,704)		(288,812)	(253,522)
Cost of sales										$ (288,812)	$ (253,522)

Revenue Recognition - Effect of

Revenue Recognition - Effect of Adoption of ASC 606 to Consolidated Balance Sheet (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017
Assets:
Accounts receivable, net of allowances	$ 81,351	$ 85,362	$ 72,903	$ 83,343	$ 78,177
Prepaid expenses and other current assets	1,988	2,029	1,627	1,856	1,718
Liabilities:
Accounts payable and accrued expenses	$ 66,653	65,779	59,943	70,500	65,197
ASU 2014-09 | As Reported
Assets:
Accounts receivable, net of allowances		83,762	71,780	82,019	76,937
Prepaid expenses and other current assets		525	572	611	553
Liabilities:
Accounts payable and accrued expenses		62,675	57,765	67,931	62,792
ASU 2014-09 | Impact of Adoption
Assets:
Accounts receivable, net of allowances		1,600	1,123	1,324	1,240
Prepaid expenses and other current assets		1,504	1,055	1,245	1,165
Liabilities:
Accounts payable and accrued expenses		$ 3,104	$ 2,178	$ 2,569	$ 2,405

Revenue Recognition - Disaggreg

Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Disaggregation of Revenue [Line Items]
Net sales	$ 49,055	$ 47,923	$ 43,914	$ 40,552	$ 44,437	$ 39,018	$ 39,021	$ 38,091	$ 181,444	$ 160,567	$ 164,609
Deferred revenue balances	$ 0								$ 0
Minimum
Disaggregation of Revenue [Line Items]
Payment terms on invoiced amount									30 days
Maximum
Disaggregation of Revenue [Line Items]
Payment period									3 years
Payment terms on invoiced amount									75 days
Hardware, software and other products
Disaggregation of Revenue [Line Items]
Net sales									$ 164,870	143,920	148,949
Software - security and highly interdependent with support
Disaggregation of Revenue [Line Items]
Net sales									6,527	5,939	4,916
Maintenance, support and other services revenue
Disaggregation of Revenue [Line Items]
Net sales									$ 10,047	$ 10,708	$ 10,744

Balance Sheet Detail (Details)

Balance Sheet Detail (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Equipment and leasehold improvements
Equipment and leasehold improvements, Gross	$ 3,478	$ 3,323
Less accumulated depreciation and amortization	(1,890)	(1,495)
Equipment and leasehold improvements, Net	1,588	1,828
Depreciation	473	470	$ 292
Equipment
Equipment and leasehold improvements
Equipment and leasehold improvements, Gross	2,146	1,988
Leasehold improvements
Equipment and leasehold improvements
Equipment and leasehold improvements, Gross	$ 1,332	$ 1,335

Balance Sheet Detail - Accounts

Balance Sheet Detail - Accounts receivable - long term, net (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Accounts receivable - long term
Total amount due from customer	$ 11,169	$ 20,886
Less unamortized discount	(391)	(912)
Less current portion included in accounts receivable	(7,622)	(12,537)
Total of accounts receivable, long term, net	$ 3,156	$ 7,437

Balance Sheet Detail - Accoun_2

Balance Sheet Detail - Accounts payable and accumulated other comprehensive loss (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017
Accounts payable and accrued expenses
Trade accounts payable	$ 62,751				$ 60,075
Accrued expenses	3,902				5,122
Accounts payable and accrued expenses	66,653	$ 65,779	$ 59,943	$ 70,500	65,197
Accumulated other comprehensive loss
Accumulated other comprehensive loss	(1,419)				(913)
Foreign currency translation adjustments
Accumulated other comprehensive loss
Accumulated other comprehensive loss	$ (1,419)				$ (913)

Income Taxes - Deferred Tax Ass

Income Taxes - Deferred Tax Assets - (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Deferred tax assets:
Accruals and reserves	$ 331	$ 331
Deferred rent credit	151	161
Total deferred tax assets	482	492
Deferred tax liabilities:
Depreciation and amortization	(337)	(354)
Total deferred tax liabilities	(337)	(354)
Net deferred tax asset	$ 145	$ 138

Income Taxes - Provision for In

Income Taxes - Provision for Income Taxes - (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Current:
Federal	$ 967	$ 2,253	$ 2,515
State	327	552	55
Foreign	292	408	357
Total current income tax	1,586	3,213	2,927
Deferred:
Federal	(11)	273	102
State	4	5	3
Total deferred income tax	(7)	278	105
Income tax expense	$ 1,579	$ 3,491	$ 3,032
Effective tax rate (as a percent)	30.90%	40.80%	33.90%

Income Taxes - Internal Revenue

Income Taxes - Internal Revenue Code and Adjustments - (Details) $ in Millions	12 Months Ended
	Dec. 31, 2018USD ($)
Income Taxes
Tax benefit, separation expenses	$ 0.4
Effective tax rate benefit, separation expenses	19.40%
Tax liability increase	$ 0.2
Effective tax rate, ordinary income (as a percent)	25.10%

Income Taxes - Reconciliations

Income Taxes - Reconciliations and Components of Income - (Details) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Reconciliation of difference between total tax expense and the amount computed by applying the U.S. statutory federal income tax rate to income before income taxes
Statutory rate applied to pretax income		$ 1,075	$ 2,908	$ 3,037
Section 162(m) and other permanent items		203
Potential state tax obligations, net of federal tax benefit		158	375
State income taxes, net of federal income tax benefit		99	36	36
Impact of new tax law			189
Foreign income taxes over (under) U.S. statutory rate		50	(70)	(64)
Other items		(6)	53	23
Income tax expense		1,579	3,491	3,032
GILTI net effect		100
Components of income before income taxes
United States		3,960	6,929	7,514
Foreign		1,157	1,624	1,419
Income before provision for income taxes		$ 5,117	8,553	$ 8,933
U.S. statutory tax rate (as a percent)	34.00%	21.00%
Net tax impact of Tax Cuts and Jobs Act			$ 100
State
Reconciliation of difference between total tax expense and the amount computed by applying the U.S. statutory federal income tax rate to income before income taxes
Accrual for potential tax liabilities		$ 600

Income Taxes - Unrecognized Tax

Income Taxes - Unrecognized Tax Benefits - (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Reconciliation of unrecognized tax benefits
Balance	$ 443
Additions related to prior period tax positions	200	$ 443
Reductions related to settlements with tax authorities	(102)
Balance	541	443
Interest and penalties related to uncertain tax positions		$ 0	$ 0
Maximum
Reconciliation of unrecognized tax benefits
Interest and penalties related to uncertain tax positions	$ 100

Credit Facility (Details)

Credit Facility (Details) - Credit Facility	12 Months Ended
	Dec. 31, 2018USD ($)	Dec. 31, 2017USD ($)	Dec. 31, 2016USD ($)	Nov. 15, 2017USD ($)
Credit Facility
Maximum borrowing capacity				$ 20,000,000
Debt Service Coverage Ratio, minimum				2
Leverage Ratio, maximum				2.5
Collateral Coverage Ratio, minimum				1.5
Borrowings outstanding	$ 0	$ 0
Interest expense	$ 100,000	$ 100,000	$ 0
Index
Credit Facility
Interest rate	2.39%
Interest rate margin (as a percent)	1.50%

Stockholders' Equity and Stoc_3

Stockholders' Equity and Stock Based Compensation - Plans and options (Details) - shares	Dec. 31, 2018	Jun. 30, 2018	May 31, 2018	Dec. 31, 2017
Stock-based compensation
Options reserved for future issuance (in shares)	0
2012 Plan
Stock-based compensation
Number of shares of common stock initially available for award		1,000,000	600,000
Options outstanding	0			0
Options exercisable	0			0
Options reserved for future issuance (in shares)	530,022

Stockholders' Equity and Stoc_4

Stockholders' Equity and Stock Based Compensation - Nonvested (Details) $ / shares in Units, $ in Millions	Jan. 01, 2019item$ / sharesshares	Dec. 31, 2018USD ($)installment$ / sharesshares	Dec. 31, 2017USD ($)installment$ / sharesshares	Dec. 31, 2016USD ($)$ / sharesshares
Selling, general and administrative expenses
Weighted Average Grant Date Fair Value
Share-based compensation cost | $		$ 2.8	$ 1.5	$ 1.7
Separation expense | Chief Executive Officer
Weighted Average Grant Date Fair Value
Share-based compensation cost | $		$ 1.7
Restricted stock | Forecast | Officers
Shares
Granted (in shares) | shares	20,405
Number of equal quarterly installments for vesting of awards | item	16
Weighted Average Grant Date Fair Value
Granted (in dollars per share) | $ / shares	$ 12.80
2012 Plan | Restricted stock
Shares
Nonvested shares at the beginning of the period | shares	96,744	161,818	186,081
Granted (in shares) | shares		123,000	87,076
Vested (in shares) | shares		(180,898)	(88,645)
Forfeited (in shares) | shares		(7,176)	(22,694)
Nonvested shares at the end of the period | shares		96,744	161,818	186,081
Weighted Average Grant Date Fair Value
Nonvested shares at the beginning of period (in dollars per share) | $ / shares	$ 15.67	$ 17.26	$ 16.48
Granted (in dollars per share) | $ / shares		14.97	18.25
Vested (in dollars per share) | $ / shares		16.62	16.56
Forfeited (in dollars per share) | $ / shares		15.44	10.87
Nonvested shares at the end of period (in dollars per share) | $ / shares		$ 15.67	$ 17.26	$ 16.48
Unrecognized compensation cost (in dollars) | $		$ 1.4
Weighted average period for recognition of unrecognized compensation cost		3 years
2012 Plan | Restricted stock | Minimum
Shares
Number of equal quarterly installments for vesting of awards | installment			12
2012 Plan | Restricted stock | Maximum
Shares
Number of equal quarterly installments for vesting of awards | installment		20	20

Defined Contribution Plan (Deta

Defined Contribution Plan (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Defined Contribution Plan
Company's matching contributions equal to each employee's contribution (as a percent)	50.00%
Maximum contribution of employees as a percentage of their compensation	6.00%
Amount expensed	$ 264	$ 237	$ 211

Commitments and Contingencies -

Commitments and Contingencies - Leases (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Future minimum rental commitments under non-cancellable operating lease
2019	$ 484
2020	438
2021	405
2022	414
2023	463
Thereafter	1,572
Total	3,776
Rent expense	$ 496	$ 509	$ 455

Commitments and Contingencies_2

Commitments and Contingencies - Employment Agreements (Details) $ in Thousands	May 11, 2018USD ($)shares	Dec. 31, 2018USD ($)item
Other
Standby letters of credit		$ 0
Standby repurchase obligations or other commercial commitments		$ 0
Chief Executive Officer
Employment Agreements
Period during which salary to be received as severance payment		12 months
Severance payments period for employment terminates		24 months
Period during which annual base salary and actual incentive bonus earned		12 months
Executive Vice President
Employment Agreements
Period during which salary to be received as severance payment		6 months
Vice President and Chief Information Officer
Employment Agreements
Period during which salary to be received as severance payment		6 months
Vice President New Business Development
Employment Agreements
Period during which salary to be received as severance payment		6 months
Vice President and Chief Accounting Officer
Employment Agreements
Period during which salary to be received as severance payment		6 months
Vice President And Chief Financial Officer
Employment Agreements
Period during which salary to be received as severance payment		6 months
Multiplier of annual salary and actual incentive bonus earned for determining lump-sum payment under change of control | item		1
Employee Severance
Employment Agreements
Cash payment payable	$ 700
Period for consecutive equal monthly installments	12 months
Lump sum cash payment	$ 30
Period of lump sum payment	30 days
Payment of accrued vacation	$ 40
Employee Severance | Restricted stock
Employment Agreements
Fully vested (in shares) | shares	109,084

Industry, Segment and Geograp_3

Industry, Segment and Geographic Financial Information - Sales and Assets (Details) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2018USD ($)country	Sep. 30, 2018USD ($)	Jun. 30, 2018USD ($)	Mar. 31, 2018USD ($)	Dec. 31, 2017USD ($)country	Sep. 30, 2017USD ($)	Jun. 30, 2017USD ($)	Mar. 31, 2017USD ($)	Dec. 31, 2018USD ($)country	Dec. 31, 2017USD ($)country	Dec. 31, 2016USD ($)country
Net sales to unaffiliated customers and identifiable assets by geographic areas
Number of countries other than USA that make up 10% or more of net sales | country	0				0				0	0	0
Net sales to Unaffiliated Customers	$ 49,055	$ 47,923	$ 43,914	$ 40,552	$ 44,437	$ 39,018	$ 39,021	$ 38,091	$ 181,444	$ 160,567	$ 164,609
Identifiable Assets by Geographic Areas	107,971				104,690				107,971	104,690	116,252
USA
Net sales to unaffiliated customers and identifiable assets by geographic areas
Net sales to Unaffiliated Customers									159,275	137,185	141,571
USA and Rest of the world
Net sales to unaffiliated customers and identifiable assets by geographic areas
Identifiable Assets by Geographic Areas	100,681				97,481				100,681	97,481	108,568
Canada
Net sales to unaffiliated customers and identifiable assets by geographic areas
Net sales to Unaffiliated Customers									12,036	11,835	12,694
Identifiable Assets by Geographic Areas	$ 7,290				$ 7,209				7,290	7,209	7,684
Rest of the world
Net sales to unaffiliated customers and identifiable assets by geographic areas
Net sales to Unaffiliated Customers									$ 10,133	$ 11,547	$ 10,344

Industry, Segment and Geograp_4

Industry, Segment and Geographic Financial Information - Segment Income (Details) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2018USD ($)	Sep. 30, 2018USD ($)	Jun. 30, 2018USD ($)	Mar. 31, 2018USD ($)	Dec. 31, 2017USD ($)	Sep. 30, 2017USD ($)	Jun. 30, 2017USD ($)	Mar. 31, 2017USD ($)	Dec. 31, 2018USD ($)segment	Dec. 31, 2017USD ($)	Dec. 31, 2016USD ($)
Segment reporting information
Number of reportable operating segments | segment									2
Revenue	$ 49,055	$ 47,923	$ 43,914	$ 40,552	$ 44,437	$ 39,018	$ 39,021	$ 38,091	$ 181,444	$ 160,567	$ 164,609
Gross profit	$ 7,225	$ 6,303	$ 6,498	$ 6,894	$ 7,502	$ 6,244	$ 6,572	$ 6,758	26,920	27,076	27,331
Direct Costs									10,627	9,831	9,576
Segment Income Before Taxes									16,293	17,245	17,755
General and administrative									9,692	9,432	9,139
Separation expenses									2,446
Interest, net									907	699	318
Foreign currency transaction gains (loss)									55	41	(1)
Income before provision for income taxes									5,117	8,553	8,933
Lifeboat Distribution
Segment reporting information
Revenue									163,564	141,708	137,113
Gross profit									23,441	23,183	22,349
Direct Costs									8,920	7,952	7,478
Segment Income Before Taxes									14,521	15,231	14,871
TechXtend
Segment reporting information
Revenue									17,880	18,859	27,496
Gross profit									3,479	3,893	4,982
Direct Costs									1,707	1,879	2,098
Segment Income Before Taxes									$ 1,772	$ 2,014	$ 2,884

Industry, Segment and Geograp_5

Industry, Segment and Geographic Financial Information - Impact on Adoption of ASC 606 to Income Statement (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Net sales	$ 49,055	$ 47,923	$ 43,914	$ 40,552	$ 44,437	$ 39,018	$ 39,021	$ 38,091	$ 181,444	$ 160,567	$ 164,609
Cost of sales									154,524	133,491	137,278
Gross profit	$ 7,225	$ 6,303	$ 6,498	$ 6,894	7,502	6,244	6,572	6,758	26,920	27,076	27,331
ASU 2014-09 | As Reported
Net sales					126,956	106,646	102,982	112,795		449,379	418,131
Cost of sales										422,303	390,800
Gross profit										27,076	27,331
ASU 2014-09 | Impact of Adoption
Net sales					$ (82,519)	$ (67,628)	$ (63,961)	$ (74,704)		(288,812)	(253,522)
Cost of sales										(288,812)	(253,522)
Lifeboat Distribution
Net sales									163,564	141,708	137,113
Cost of sales										118,525	114,764
Gross profit									23,441	23,183	22,349
Lifeboat Distribution | ASU 2014-09 | As Reported
Net sales										417,427	369,519
Cost of sales										394,244	347,170
Gross profit										23,183	22,349
Lifeboat Distribution | ASU 2014-09 | Impact of Adoption
Net sales										(275,719)	(232,406)
Cost of sales										(275,719)	(232,406)
TechXtend
Net sales									17,880	18,859	27,496
Cost of sales										14,966	22,514
Gross profit									$ 3,479	3,893	4,982
TechXtend | ASU 2014-09 | As Reported
Net sales										31,952	48,612
Cost of sales										28,059	43,630
Gross profit										3,893	4,982
TechXtend | ASU 2014-09 | Impact of Adoption
Net sales										(13,093)	(21,116)
Cost of sales										$ (13,093)	$ (21,116)

Industry, Segment and Geograp_6

Industry, Segment and Geographic Financial Information - Selected Assets by Segment (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Segment Reporting Information [Line Items]
Total Assets	$ 107,971	$ 104,690	$ 116,252
Segment Total
Segment Reporting Information [Line Items]
Total Assets	89,152	95,245
Corporate Assets
Segment Reporting Information [Line Items]
Total Assets	18,819	9,445
Lifeboat Distribution
Segment Reporting Information [Line Items]
Total Assets	77,610	73,794
TechXtend
Segment Reporting Information [Line Items]
Total Assets	$ 11,542	$ 21,451

Industry, Segment and Geograp_7

Industry, Segment and Geographic Financial Information - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Disaggregation of Revenue [Line Items]
Net sales	$ 49,055	$ 47,923	$ 43,914	$ 40,552	$ 44,437	$ 39,018	$ 39,021	$ 38,091	$ 181,444	$ 160,567	$ 164,609
Lifeboat Distribution
Disaggregation of Revenue [Line Items]
Net sales									163,564	141,708	137,113
TechXtend
Disaggregation of Revenue [Line Items]
Net sales									17,880	18,859	27,496
Hardware, software and other products
Disaggregation of Revenue [Line Items]
Net sales									164,870	143,920	148,949
Hardware, software and other products | Lifeboat Distribution
Disaggregation of Revenue [Line Items]
Net sales									148,570	126,738	124,377
Hardware, software and other products | TechXtend
Disaggregation of Revenue [Line Items]
Net sales									16,300	17,182	24,572
Software - security and highly interdependent with support
Disaggregation of Revenue [Line Items]
Net sales									6,527	5,939	4,916
Software - security and highly interdependent with support | Lifeboat Distribution
Disaggregation of Revenue [Line Items]
Net sales									6,087	5,465	4,338
Software - security and highly interdependent with support | TechXtend
Disaggregation of Revenue [Line Items]
Net sales									440	474	578
Maintenance, support and other services revenue
Disaggregation of Revenue [Line Items]
Net sales									10,047	10,708	10,744
Maintenance, support and other services revenue | Lifeboat Distribution
Disaggregation of Revenue [Line Items]
Net sales									8,907	9,505	8,398
Maintenance, support and other services revenue | TechXtend
Disaggregation of Revenue [Line Items]
Net sales									$ 1,140	$ 1,203	$ 2,346

Industry, Segment and Geograp_8

Industry, Segment and Geographic Financial Information - Concentration (Details) - customer	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Top five customers
Significant Customers and Vendors
Number of customers	5	5	5
Net sales | Customer concentration risk
Significant Customers and Vendors
Number of customers	2
Net sales | SHI | Customer concentration risk
Significant Customers and Vendors
Percentage of concentration risk	16.60%	20.10%	16.30%
Net sales | CDW | Customer concentration risk
Significant Customers and Vendors
Percentage of concentration risk	25.60%	18.00%	17.30%
Net sales | Top five customers
Significant Customers and Vendors
Percentage of concentration risk	55.00%	50.00%	46.00%
Net accounts receivable | SHI | Customer concentration risk
Significant Customers and Vendors
Percentage of concentration risk	15.00%	14.90%
Net accounts receivable | CDW | Customer concentration risk
Significant Customers and Vendors
Percentage of concentration risk	35.60%	28.20%
Purchases | Vendor concentration risk | SolarWinds
Significant Customers and Vendors
Percentage of concentration risk	15.30%	14.70%	10.80%
Purchases | Vendor concentration risk | Sophos
Significant Customers and Vendors
Percentage of concentration risk	23.90%	26.40%	23.10%

Quarterly Results of Operatio_3

Quarterly Results of Operations (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Net sales	$ 49,055	$ 47,923	$ 43,914	$ 40,552	$ 44,437	$ 39,018	$ 39,021	$ 38,091	$ 181,444	$ 160,567	$ 164,609
Gross profit	7,225	6,303	6,498	6,894	7,502	6,244	6,572	6,758	26,920	27,076	27,331
Net income (loss)	$ 1,739	$ 1,318	$ (1,117)	$ 1,598	$ 1,128	$ 1,341	$ 1,273	$ 1,319	$ 3,538	$ 5,062	$ 5,901
Basic net income (loss) per common share (in dollars per share)	$ 0.39	$ 0.29	$ (0.25)	$ 0.36	$ 0.25	$ 0.30	$ 0.28	$ 0.29	$ 0.78	$ 1.13	$ 1.25
Diluted net income (loss) per common share (in dollars per share)	$ 0.39	$ 0.29	$ (0.25)	$ 0.36	$ 0.25	$ 0.30	$ 0.28	$ 0.29	$ 0.78	$ 1.13	$ 1.25

Quarterly Results of Operatio_4

Quarterly Results of Operations (Unaudited) - Effect of Adoption of ASC 606 on Net Sales (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Net sales	$ 49,055	$ 47,923	$ 43,914	$ 40,552	$ 44,437	$ 39,018	$ 39,021	$ 38,091	$ 181,444	$ 160,567	$ 164,609
ASU 2014-09 | As Reported
Net sales					126,956	106,646	102,982	112,795		449,379	418,131
ASU 2014-09 | Impact of Adoption
Net sales					$ (82,519)	$ (67,628)	$ (63,961)	$ (74,704)		$ (288,812)	$ (253,522)

Quarterly Results of Operatio_5

Quarterly Results of Operations (Unaudited) - Balance Sheet Reclassification Adjustment Related to Adoption of ASC 6061 (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017
Assets:
Accounts receivable, net of allowances	$ 81,351	$ 85,362	$ 72,903	$ 83,343	$ 78,177
Prepaid expenses and other current assets	1,988	2,029	1,627	1,856	1,718
Liabilities:
Accounts payable and accrued expenses	$ 66,653	65,779	59,943	70,500	65,197
ASU 2014-09 | As Reported
Assets:
Accounts receivable, net of allowances		83,762	71,780	82,019	76,937
Prepaid expenses and other current assets		525	572	611	553
Liabilities:
Accounts payable and accrued expenses		62,675	57,765	67,931	62,792
ASU 2014-09 | Impact of Adoption
Assets:
Accounts receivable, net of allowances		1,600	1,123	1,324	1,240
Prepaid expenses and other current assets		1,504	1,055	1,245	1,165
Liabilities:
Accounts payable and accrued expenses		$ 3,104	$ 2,178	$ 2,569	$ 2,405

Separation Charges (Details)

Separation Charges (Details) - Employee Severance $ in Millions	12 Months Ended
	Dec. 31, 2018USD ($)
Separation Charges
Restructuring expenses	$ 2.4
Accelerated vesting of restricted stock grants	1.7
Cash payments to be paid in the next 12 months	$ 0.8
Separation payment period	12 months

Schedule II--Valuation and Qu_2

Schedule II--Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Allowances for accounts receivable
Valuation and qualifying accounts
Beginning Balance	$ 862	$ 970	$ 1,060
Charged to Cost and Expense	(75)	(95)	(73)
Deductions	2	13	17
Ending Balance	785	862	970
Reserve for inventory obsolescence
Valuation and qualifying accounts
Beginning Balance	12	15	16
Charged to Cost and Expense			3
Deductions	4	3	4
Ending Balance	$ 8	$ 12	$ 15