Climb Global Solutions (CLMB) 10-Q4 Aug 222022 Q2 Quarterly reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 30, 2022	Aug. 02, 2022
Document and Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Jun. 30, 2022
Entity Registrant Name	Wayside Technology Group, Inc.
Entity File Number	000-26408
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	13-3136104
Entity Address, Address Line One	4 Industrial Way West, Suite 300
Entity Address, City or Town	Eatontown
Entity Address, State or Province	NJ
Entity Address, Postal Zip Code	07724
City Area Code	732
Local Phone Number	389-8950
Title of 12(b) Security	Common stock, $.01 par value
Trading Symbol	WSTG
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Central Index Key	0000945983
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		4,471,853
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q2

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 29,315	$ 29,272
Accounts receivable, net of allowance for doubtful accounts of $912 and $881, respectively	114,963	122,502
Inventory, net	1,703	2,022
Vendor prepayments and advances	924	661
Prepaid expenses and other current assets	3,006	4,871
Total current assets	149,911	159,328
Equipment and leasehold improvements, net	2,104	1,932
Goodwill	15,821	17,188
Other intangibles, net	8,876	9,950
Right-of-use assets, net	1,442	1,628
Accounts receivable-long-term, net	297	78
Other assets	432	459
Deferred income tax assets	120	189
Total assets	179,003	190,752
Current liabilities:
Accounts payable and accrued expenses	118,904	134,271
Lease liabilities, current portion	488	475
Term loan, current portion	511
Total current liabilities	119,903	134,746
Lease liabilities, net of current portion	1,556	1,810
Deferred income tax liabilities	1,549	1,780
Term loan, net of current portion	1,554
Non-current liabilities	28
Total liabilities	124,590	138,336
Commitments and contingencies
Stockholders' equity:
Common stock, $.01 par value; 10,000,000 shares authorized; 5,284,500 shares issued: 4,459,096 and 4,424,672 shares outstanding, respectively	53	53
Additional paid-in capital	31,991	32,087
Treasury stock, at cost, 825,404 and 859,828 shares, respectively	(13,453)	(13,870)
Retained earnings	38,407	34,396
Accumulated other comprehensive loss	(2,585)	(250)
Total stockholders' equity	54,413	52,416
Total liabilities and stockholders' equity	$ 179,003	$ 190,752

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Condensed Consolidated Balance Sheets
Accounts receivable, allowances (in dollars)	$ 912	$ 881
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	4,459,096	4,424,672
Treasury stock, shares	825,404	859,828

Condensed Consolidated Statemen

Condensed Consolidated Statements of Earnings - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Condensed Consolidated Statements of Earnings
Net sales	$ 67,863	$ 75,350	$ 139,182	$ 138,163
Cost of sales	55,377	64,371	114,716	116,341
Gross profit	12,486	10,979	24,466	21,822
Selling, general, and administrative expenses	7,934	8,138	16,183	16,551
Amortization and depreciation expense	445	398	802	796
Income from operations	4,107	2,443	7,481	4,475
Other income:
Interest, net	(7)	291	(17)	301
Foreign currency transaction (loss) gain	(442)	25	(298)	(66)
Income before provision for income taxes	3,658	2,759	7,166	4,710
Provision for income taxes	867	968	1,663	1,399
Net income	$ 2,791	$ 1,791	$ 5,503	$ 3,311
Income per common share-Basic	$ 0.63	$ 0.41	$ 1.24	$ 0.76
Income per common share-Diluted	$ 0.63	$ 0.41	$ 1.24	$ 0.76
Weighted average common shares outstanding - Basic (in shares)	4,321	4,260	4,315	4,254
Weighted average common shares outstanding - Diluted (in shares)	4,321	4,260	4,315	4,254
Dividends paid per common share (in dollars per share)	$ 0.17	$ 0.17	$ 0.34	$ 0.34

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Condensed Consolidated Statements of Comprehensive Income
Net income	$ 2,791	$ 1,791	$ 5,503	$ 3,311
Other comprehensive (loss) income:
Foreign currency translation adjustments	(1,709)	236	(2,335)	1,275
Other comprehensive (loss) income	(1,709)	236	(2,335)	1,275
Comprehensive income	$ 1,082	$ 2,027	$ 3,168	$ 4,586

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Stockholder's Equity - USD ($) $ in Thousands	Common Stock	Additional Paid-In Capital	Treasury	Retained Earnings	Accumulated Other Comprehensive (Loss) Income	Total
Balance at Dec. 31, 2020	$ 53	$ 31,962	$ (14,747)	$ 28,191	$ (742)	$ 44,717
Balance (in shares) at Dec. 31, 2020	5,284,500
Balance (in shares) at Dec. 31, 2020			922,503
Increase (Decrease) in Stockholders' Equity
Net income				1,520		1,520
Translation adjustment					1,039	1,039
Dividends paid				(750)		(750)
Share-based compensation expense		279				279
Restricted stock grants (net of forfeitures)		(883)	$ 883
Restricted stock grants (net of forfeitures) (in shares)			(52,190)
Treasury shares repurchased			$ (57)			(57)
Treasury shares repurchased (in shares)			2,990
Balance at Mar. 31, 2021	$ 53	31,358	$ (13,921)	28,961	297	46,748
Balance (in shares) at Mar. 31, 2021	5,284,500
Balance (in shares) at Mar. 31, 2021			873,303
Balance at Dec. 31, 2020	$ 53	31,962	$ (14,747)	28,191	(742)	44,717
Balance (in shares) at Dec. 31, 2020	5,284,500
Balance (in shares) at Dec. 31, 2020			922,503
Increase (Decrease) in Stockholders' Equity
Net income						3,311
Translation adjustment						1,275
Balance at Jun. 30, 2021	$ 53	32,037	$ (14,393)	30,003	533	48,233
Balance (in shares) at Jun. 30, 2021	5,284,500
Balance (in shares) at Jun. 30, 2021			898,715
Balance at Mar. 31, 2021	$ 53	31,358	$ (13,921)	28,961	297	46,748
Balance (in shares) at Mar. 31, 2021	5,284,500
Balance (in shares) at Mar. 31, 2021			873,303
Increase (Decrease) in Stockholders' Equity
Net income				1,791		1,791
Translation adjustment					236	236
Dividends paid				(749)		(749)
Share-based compensation expense		337				337
Restricted stock grants (net of forfeitures)		342	$ (342)
Restricted stock grants (net of forfeitures) (in shares)			20,184
Treasury shares repurchased			$ (130)			(130)
Treasury shares repurchased (in shares)			5,228
Balance at Jun. 30, 2021	$ 53	32,037	$ (14,393)	30,003	533	48,233
Balance (in shares) at Jun. 30, 2021	5,284,500
Balance (in shares) at Jun. 30, 2021			898,715
Balance at Dec. 31, 2021	$ 53	32,087	$ (13,870)	34,396	(250)	$ 52,416
Balance (in shares) at Dec. 31, 2021	5,284,500					5,284,500
Balance (in shares) at Dec. 31, 2021			859,828			859,828
Increase (Decrease) in Stockholders' Equity
Net income				2,712		$ 2,712
Translation adjustment					(626)	(626)
Dividends paid				(746)		(746)
Share-based compensation expense		369				369
Restricted stock grants (net of forfeitures)		(502)	$ 502
Restricted stock grants (net of forfeitures) (in shares)			(29,499)
Treasury shares repurchased			$ (216)			(216)
Treasury shares repurchased (in shares)			7,118
Balance at Mar. 31, 2022	$ 53	31,954	$ (13,584)	36,362	(876)	53,909
Balance (in shares) at Mar. 31, 2022	5,284,500
Balance (in shares) at Mar. 31, 2022			837,447
Balance at Dec. 31, 2021	$ 53	32,087	$ (13,870)	34,396	(250)	$ 52,416
Balance (in shares) at Dec. 31, 2021	5,284,500					5,284,500
Balance (in shares) at Dec. 31, 2021			859,828			859,828
Increase (Decrease) in Stockholders' Equity
Net income						$ 5,503
Translation adjustment						(2,335)
Balance at Jun. 30, 2022	$ 53	31,991	$ (13,453)	38,407	(2,585)	$ 54,413
Balance (in shares) at Jun. 30, 2022	5,284,500					5,284,500
Balance (in shares) at Jun. 30, 2022			825,404			825,404
Balance at Mar. 31, 2022	$ 53	31,954	$ (13,584)	36,362	(876)	$ 53,909
Balance (in shares) at Mar. 31, 2022	5,284,500
Balance (in shares) at Mar. 31, 2022			837,447
Increase (Decrease) in Stockholders' Equity
Net income				2,791		2,791
Translation adjustment					(1,709)	(1,709)
Dividends paid				(746)		(746)
Share-based compensation expense		345				345
Restricted stock grants (net of forfeitures)		(308)	$ 308
Restricted stock grants (net of forfeitures) (in shares)			(17,194)
Treasury shares repurchased			$ (177)			(177)
Treasury shares repurchased (in shares)			5,151
Balance at Jun. 30, 2022	$ 53	$ 31,991	$ (13,453)	$ 38,407	$ (2,585)	$ 54,413
Balance (in shares) at Jun. 30, 2022	5,284,500					5,284,500
Balance (in shares) at Jun. 30, 2022			825,404			825,404

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Cash flows from operating activities
Net income	$ 5,503	$ 3,311
Adjustments to reconcile net income to net cash and cash equivalents provided by (used in) operating activities:
Depreciation and amortization expense	802	796
Provision for doubtful accounts	11
Deferred income tax expense	14	333
Share-based compensation expense	714	616
Amortization of discount on accounts receivable	(10)	(42)
Amortization of right-of-use assets	220	240
Change in fair value of contingent earn-out consideration		18
Changes in operating assets and liabilities:
Accounts receivable	5,929	(7,395)
Inventory	316	830
Prepaid expenses and other current assets	1,851	(48)
Vendor prepayments	(263)	790
Accounts payable and accrued expenses	(13,585)	175
Lease liability, net	(276)	(288)
Other assets and liabilities	43	(242)
Net cash and cash equivalents provided by (used in) operating activities	1,269	(906)
Cash flows from investing activities
Purchase of equipment and leasehold improvements	(652)	(169)
Vendor advances		(2,994)
Net cash and cash equivalents used in investing activities	(652)	(3,163)
Cash flows from financing activities
Purchase of treasury stock	(394)	(187)
Borrowings under term loan	2,148
Repayments of borrowings under term loan	(83)
Dividends paid	(1,492)	(1,499)
Net cash and cash equivalents provided by (used in) financing activities	179	(1,686)
Effect of foreign exchange rate on cash and cash equivalents	(753)	188
Net increase (decrease) in cash and cash equivalents	43	(5,567)
Cash and cash equivalents at beginning of period	29,272	29,348
Cash and cash equivalents at end of period	29,315	23,781
Supplementary disclosure of cash flow information:
Income taxes paid	1,520	1,026
Interest paid	$ 29	$ 21

Basis of Presentation

Basis of Presentation	6 Months Ended
Basis of Presentation	Jun. 30, 2022
Basis of Presentation
Basis of Presentation	1. Basis of Presentation: The accompanying unaudited condensed consolidated financial statements of Wayside Technology Group, Inc. and its subsidiaries (collectively, the “Company”), have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Rule 8-03 of Regulation S-X. Accordingly, as permitted by the rules and regulation of the Securities and Exchange Commission, the financial statements do not include all of the information and footnotes required by U.S. GAAP for complete audited financial statements. The preparation of these condensed consolidated financial statements requires the Company to make estimates and judgments that affect the reported amounts of assets and liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. On an on-going basis, the Company evaluates its estimates, including those related to product returns, bad debts, inventories, intangible assets, income taxes, stock-based compensation, evaluation of performance obligations and allocation of revenue to distinct items, contingencies and litigation. The Company bases its estimates on its historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. In the opinion of the Company’s management, all adjustments that are of a normal recurring nature, considered necessary for fair presentation of the results for the periods presented, have been included in the accompanying condensed consolidated financial statements. The Company’s actual results may differ from these estimates under different assumptions or conditions. The unaudited condensed consolidated statements of earnings for the interim periods are not necessarily indicative of results for the full year. For further information, refer to the consolidated financial statements and notes thereto included in the Company’s annual report on Form 10-K filed with the Securities Exchange Commission for the year ended December 31, 2021. 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.

Recently Issued Accounting Stan

Recently Issued Accounting Standards	6 Months Ended
Recently Issued Accounting Standards	Jun. 30, 2022
Recently Issued Accounting Standards
Recently Issued Accounting Standards	2. Recently Issued Accounting Standards: In June 2016, the FASB issued Accounting Standards Update No. 2016-13, “Financial Instruments - Credit Losses (Topic 326)” Financial Instruments – Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic

Foreign Currency Translation

Foreign Currency Translation	6 Months Ended
Foreign Currency Translation	Jun. 30, 2022
Foreign Currency Translation
Foreign Currency Translation	3. 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. Foreign currency transaction gains and losses are recorded as income or expenses as amounts are settled. The net sales from our foreign operations for the three months ended June 30, 2022 and 2021 were $14.2 million and $15.2. million, respectively. The net sales from our foreign operations for the six months ended June 30, 2022 and 2021 were $29.9 million and $32.0 million, respectively.

Comprehensive Income

Comprehensive Income	6 Months Ended
Comprehensive Income	Jun. 30, 2022
Comprehensive Income
Comprehensive Income	4. Comprehensive Income: Cumulative translation adjustments have been classified within accumulated other comprehensive loss, which is a separate component of stockholders’ equity in accordance with FASB ASC Topic 220, “Comprehensive Income.”

Revenue Recognition

Revenue Recognition	6 Months Ended
Revenue Recognition	Jun. 30, 2022
Revenue Recognition
Revenue Recognition	5. Revenue Recognition: The Company’s revenues primarily result from the sale of various technology products and services, including third-party products, third-party software and third-party maintenance, software support and services. The Company recognizes revenue as control of the third-party products and third-party software is transferred to customers, which generally happens at the point of shipment or fulfilment and at the point that our customers and vendors accept the terms and conditions of the arrangement for third-party maintenance, software support and services. The Company has contracts with certain customers where the Company’s performance obligation is to arrange for the products or services to be provided by another party. In these arrangements, as the Company assumes an agency relationship in the transaction, revenue is recognized in the amount of the net fee associated with serving as an agent. These arrangements primarily relate to third party maintenance, cloud services and certain security software whose intended functionality is dependent on third party maintenance. The Company allows its customers to return product for exchange or credit subject to certain limitations. A liability is recorded at the time of sale for estimated product returns based upon historical experience and an asset is recognized for the amount expected to be recorded in inventory upon product return. The Company also provides rebates and other discounts to certain customers which are considered variable consideration. A provision for customer rebates and other discounts is recorded as a reduction of revenue at the time of sale based on an evaluation of the contract terms and historical experience. The Company considers shipping and handling activities as costs to fulfill the sales of products. Shipping revenue is included in net sales when control of the product is transferred to the customer, and the related shipping and handling costs are included in the cost of products sold. Taxes imposed by governmental authorities on the Company’s revenue producing activities with customers, such as sales taxes and value added taxes, are excluded from net sales. The Company disaggregates its operating revenue by segment, geography and timing of revenue recognition, which the Company believes provides a meaningful depiction of the nature of its revenue. See segment Note 15. Hardware and software products sold by the Company are generally delivered via shipment from the Company’s facilities, drop shipment directly from the vendor, or by electronic delivery of keys for software products. The majority of the Company’s business involves shipments directly from its vendors to its customers. In these transactions, the Company is generally responsible for negotiating price both with the vendor and customer, payment to the vendor, establishing payment terms with the customer, product returns, and has risk of loss if the customer does not make payment. As the principal with the customer, the Company recognizes revenue upon receiving notification from the vendor that the product was shipped. Control of software products 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. The Company performs an analysis of the number of days of sales in-transit to customers at the end of each reporting period based on an analysis of commercial delivery terms that include drop-shipment arrangements. This analysis is the basis upon which the Company estimates the amount of net sales in-transit at the end of the period and adjusts revenue and the related costs to reflect only what has been delivered to the customer. Changes in delivery patterns may result in a different number of business days estimated to make this adjustment. The Company also performs a weighted average analysis of the estimated number of days between order fulfillment and beginning of the renewal term for term licenses recorded on a gross basis, and a deferral estimate is recorded for term license renewals fulfilled prior to commencement date. Generally, software products are sold with accompanying third-party delivered software assurance, which is a product that allows customers to upgrade, at no additional cost, to the latest technology if new capabilities are introduced during the period that the software assurance is in effect. The Company evaluates whether the software assurance is a separate performance obligation by assessing if the third-party delivered software assurance is critical or essential to the core functionality of the software itself. This involves considering if the software provides its original intended functionality to the customer without the updates, if the customer would ascribe a higher value to the upgrades versus the up-front deliverable, if the customer would expect frequent intelligence updates to the software (such as updates that maintain the original functionality), and if the customer chooses to not delay or always install upgrades. If the Company determines that the accompanying third-party delivered software assurance is critical or essential to the core functionality of the software license, the software license and the accompanying third-party delivered software assurance are recognized as a single performance obligation. The value of the product is primarily the accompanying support delivered by a third party and therefore the Company is acting as an agent in these transactions and recognizes them on a net basis at the point the associated software license is delivered to the customer. The Company sells cloud computing solutions that utilize third-party vendors to enable customers to access data center functionality in a cloud-based solution, including storage, computing and networking and access to software in the cloud that enhances office productivity, provides security or assists in collaboration. The Company recognizes revenue for cloud computing solutions for arrangements with one-time invoicing to the customer at the time of invoice on a net basis as the Company is acting as an agent in the transaction. For monthly subscription-based arrangements, the Company is acting as an agent in the transaction and recognizes revenue as it invoices the customer for its monthly usage on a net basis. For software licenses where the accompanying third-party delivered software assurance is not critical or essential to the core functionality, the software assurance is recognized as a separate performance obligation, with the associated revenue recognized on a net basis at the point the related software license is delivered to the customer. The Company also sells some of its products and services as part of bundled contract arrangements containing multiple deliverables, which may include a combination of products and services. For each deliverable that represents a distinct performance obligation, total arrangement consideration is allocated based upon the standalone selling prices (“SSP”) of each performance obligation. SSP is determined 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. The Company records freight billed to its customers as net sales and the related freight costs as cost of sales when the underlying product revenue is recognized. For freight not billed to its customers, the Company records the freight costs as cost of sales. The Company’s typical shipping terms result in shipping being performed before the customer obtains control of the product. The Company considers shipping to be a fulfillment activity and not a separate performance obligation. The Company pays 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.

Goodwill and Other Intangible A

Goodwill and Other Intangible Assets	6 Months Ended
Goodwill and Other Intangible Assets	Jun. 30, 2022
Goodwill and Other Intangible Assets
Goodwill and Other Intangible Assets	6. Goodwill and Other Intangible Assets: Balance at January 1, 2022 $ 17,188 Translation adjustments (1,367) Balance June 30, 2022 $ 15,821 As of June 30, 2022 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer and vendor relationships $ 9,852 $ 1,391 $ 8,461 Trade name 467 52 415 Total $ 10,319 $ 1,443 $ 8,876 As of December 31, 2021 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer and vendor relationships $ 10,550 $ 1,079 $ 9,471 Trade name 519 40 479 Total $ 11,069 $ 1,119 $ 9,950 eleven 2022 (excluding the six months ended June 30, 2022) $ 378 2023 757 2024 757 2025 757 2026 757 Thereafter 5,470 Total $ 8,876

Right-of-use Asset and Lease Li

Right-of-use Asset and Lease Liability	6 Months Ended
Right-of-use Asset and Lease Liability	Jun. 30, 2022
Right-of-use Asset and Lease Liability
Right-of-use Asset and Lease Liability	7. Right-of-use Asset and Lease Liability: The Company has entered into operating leases for office and warehouse facilities, which have terms at lease commencement that range from 2 years to 11 years. The Company determines if an arrangement is a lease at inception. Leases with an initial term of 12 months or less are not recorded on the Consolidated Balance Sheets and lease expense for these leases is recognized on a straight-line basis over the lease term. Right-of-use (“ROU”) assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date of the lease based on the present value of the lease payments over the lease term. As our leases do not provide a readily determinable implicit rate, we use an incremental borrowing rate based on the information available at commencement date, including lease term, in determining the present value of future payments. The operating lease asset also includes any lease payments made and excludes lease incentives. Operating lease expense is recognized on a straight-line basis over the lease term and included in selling, general and administrative expenses. Information related to the Company’s ROU assets and related lease liabilities were as follows: Six months ended June 30, 2022 2021 Cash paid for operating lease liabilities $ 314 $ 319 Right-of-use assets obtained in exchange for new operating lease obligations $ 63 $ 38 Weighted-average remaining lease term 4.6 years 5.6 years Weighted-average discount rate 3.4% 3.5% Maturities of lease liabilities as of June 30, 2022 were as follows: 2022 (excluding the six months ended June 30, 2022) $ 268 2023 623 2024 539 2025 547 2026 545 Thereafter 125 2,647 Less: imputed interest (603) Total lease liabilities $ 2,044 Lease liabilities, current portion 488 Lease liabilities, net of current portion 1,556 Total lease liabilities $ 2,044

Fair Value

Fair Value	6 Months Ended
Fair Value	Jun. 30, 2022
Fair Value
Fair Value	8. Fair Value: The carrying amounts of financial instruments, including cash and cash equivalents, short-term accounts receivable and accounts payable approximated fair value at June 30, 2022 and December 31, 2021 because of the relative short maturity of these instruments. The Company’s accounts receivable long-term are discounted to their present value at prevailing market rates at the time of sale.

Balance Sheet Details

Balance Sheet Details	6 Months Ended
Balance Sheet Details	Jun. 30, 2022
Balance Sheet Details
Balance Sheet Detail	9. Balance Sheet Detail: June 30, December 31, 2022 2021 Equipment $ 2,674 $ 2,627 Capitalized software 1,179 816 Leasehold improvements 1,846 1,762 5,699 5,205 Less accumulated depreciation and amortization (3,595) (3,273) $ 2,104 $ 1,932 During the three months ended June 30, 2022 and 2021, the Company recorded depreciation and amortization expense of $0.2 million, respectively. During the six months ended June 30, 2022 and 2021, the Company recorded depreciation and amortization expense of $0.4 million and $0.3 million, respectively. June 30, December 31, 2022 2021 Total amount due from customer $ 690 $ 484 Less: unamortized discount (38) (8) Less: current portion included in accounts receivable (355) (398) $ 297 $ 78 The undiscounted cash flows to be received by the Company relating to these accounts receivable long-term is expected to be $0.4 million and $0.3 million during each of the 12-month periods ending June 30, 2023 and 2024, respectively. June 30, December 31, 2022 2021 Trade accounts payable $ 112,718 $ 125,908 Accrued expenses 6,186 8,363 $ 118,904 $ 134,271

Credit Facility

Credit Facility	6 Months Ended
Credit Facility	Jun. 30, 2022
Credit Facility.
Credit Facility	10. 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 and Second Amended and Restated Pledge and Security Agreement. On August 31, 2020, the Company entered into an amendment to the Credit Facility (the “Amended Credit Facility”) pursuant to a First Amendment to Second Amended and Restated Revolving Credit Loan Agreement and Other Loan Documents (collectively, the “Amended Loan Agreement”) and First Allonge to Second Amended and Restated Revolving Credit Loan Note (the “Amended Note”). The Amended Credit Facility, which will continue to be used for working capital and general corporate purposes, matures on June 30, 2023, 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 Amended Credit Facility is subject to change from time to time based on the changes in the LIBOR Rate, as defined in the Amended Loan Agreement, with the LIBOR Rate not to be less than 0.75 percentage points. Interest on the unpaid principal balance of the Amended Note will be calculated using a rate of 1.75 percentage points over the Index. If the Index becomes unavailable during the term of the Amended Credit Facility, interest will be based upon the Benchmark Replacement (as defined in the Amended Loan Agreement) selected by Citibank after notifying the Company. The Amended Credit Facility is secured by the assets of the Company. Among other affirmative covenants set forth in the Loan Agreement, which were not amended as part of the Amended Credit Facility, 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, which were not amended as part of the Amended Credit Facility, 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. The Company was in compliance with all such covenants at June 30, 2022 and December 31, 2021. At June 30, 2022 and December 31, 2021, the Company had no borrowings outstanding under the Amended Credit Facility. On April 13, 2021, Wayside Technology UK Holdings Limited (“Wayside UK”), a wholly-owned subsidiary of the Company, entered into an uncommitted short term credit facility of £8,000,000 (“Uncommitted Credit Facility”) with Citibank N.A., London Branch (“Citibank London”) pursuant to certain terms and conditions. Obligations under the Uncommitted Credit Facility are guaranteed by the Company and will be used for working capital and general corporate purposes and have a maturity date of April 13, 2023, at which time Wayside UK must pay all outstanding principal of all outstanding loans plus all accrued and unpaid interest, and any interest, fees, costs and expenses, if any. Interest on the unpaid principal balance of the Uncommitted Credit Facility will be calculated using a rate of 1.85 percentage points over the Daily Rate, as defined in the Uncommitted Credit Facility. Amounts borrowed under the Uncommitted Credit Facility will be guaranteed by the Company. The Uncommitted Credit Facility may be cancelled at any time by Citibank London. Citibank London has the sole discretion to accept or reject any requested utilization of the Uncommitted Credit Facilitation. At June 30, 2022 and December 31, 2021, Wayside UK had no borrowings outstanding under the Uncommitted Credit Facility. On April 8, 2022, the Company entered into a $2,148,000 term loan (the “Term Loan”) with First American Commercial Bancorp, Inc. (“First American”) pursuant to a Master Loan and Security Agreement. The proceeds from the Term Loan will be used to fund certain capital expenditures. The borrowing under the Term Loan bears interest at a rate of 3.73% per annum and is being repaid over forty-eight monthly installments of principal and interest through April 2026. At June 30, 2022, the Company had $2.1 million outstanding under the Term Loan. There were no amounts outstanding under the Term Loan at December 31, 2021.

Earnings Per Share

Earnings Per Share	6 Months Ended
Earnings Per Share	Jun. 30, 2022
Earnings Per Share
Earnings Per Share	11. Earnings Per Share: Our basic and diluted earnings per share are computed using the two-class method in accordance with ASC 260. The two-class method is an earnings allocation that determines net income per share for each class of common stock 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: (Unaudited) (Unaudited) Six months ended Three months ended June 30, June 30, 2022 2021 2022 2021 Numerator: Net income $ 5,503 $ 3,311 $ 2,791 $ 1,791 Less distributed and undistributed income allocated to participating securities 143 119 73 42 Net income attributable to common shareholders 5,360 3,192 2,718 1,749 Denominator: Weighted average common shares (Basic) 4,315 4,254 4,321 4,260 Weighted average common shares including assumed conversions (Diluted) 4,315 4,254 4,321 4,260 Basic net income per share $ 1.24 $ 0.76 $ 0.63 $ 0.41 Diluted net income per share $ 1.24 $ 0.76 $ 0.63 $ 0.41

Major Customers and Vendors

Major Customers and Vendors	6 Months Ended
Major Customers and Vendors	Jun. 30, 2022
Major Customers and Vendors
Major Customers and Vendors	12. Major Customers and Vendors: The Company had two major vendors that accounted for 16% and 9%, respectively, of total purchases during the three months ended June 30, 2022 and 18% and 12%, respectively, of total purchases during the three months ended June 30, 2021. The Company had two major vendors that accounted for 19% and 9%, respectively, of total purchases during the six months ended June 30, 2022 and 21% and 9%, respectively, of total purchases during the six months ended June 30, 2021. The Company had two major customers that accounted for 21% and 20%, respectively, of its net sales during the three months ended June 30, 2022 and 17% and 17%, respectively, of its net sales during the three months ended June 30, 2021. The Company had two major customers that accounted for 23% and 18%, respectively, of its net sales during the six months ended June 30, 2022 and 18% and 15%, respectively, of its net sales during the six months ended June 30, 2021. These same customers accounted for 20% and 17%, respectively, of total net accounts receivable as of June 30, 2022 and 18% and 22%, respectively, of total net accounts receivable as of December 31, 2021.

Income Taxes

Income Taxes	6 Months Ended
Income Taxes	Jun. 30, 2022
Income Taxes
Income Taxes	13. Income Taxes: The Company has analyzed filing positions in all of 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’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 past experience and interpretations of tax law applied to the facts of each matter.

Stockholders' Equity and Stock

Stockholders' Equity and Stock Based Compensation	6 Months Ended
Stockholders' Equity and Stock Based Compensation	Jun. 30, 2022
Stockholders' Equity and Stock Based Compensation
Stockholders' Equity and Stock Based Compensation	14. Stockholders’ Equity and Stock Based Compensation: The 2021 Omnibus Incentive Plan (the “2021 Plan”) authorizes the grant of Stock Options, Stock Units, Stock Appreciation Rights, Restricted Stock, Deferred Stock, Stock Bonuses and other equity-based awards. The 2021 Plan was approved by the Company’s stockholders at the 2021 Annual Meeting in June 2021. The total number of shares of the Company’s common stock, par value $0.01 per share (“Common Stock”) initially available for award under the 2021 Plan was 500,000 shares. As of June 30, 2022, the number of shares of Common Stock available for future award grants to employees, officers and directors under the 2021 Plan is 401,350. The 2012 Stock-Based Compensation 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 the Company’s Common Stock initially available for award under the 2012 Plan was 600,000, which was increased to 1,000,000 shares by stockholder approval at the Company’s 2018 Annual Meeting in June 2018. Immediately prior to the replacement of the 2012 Plan by the 2021 Plan, there were 352,158 shares of Common Stock available under the 2012 Plan. The 2012 Plan has been replaced by the 2021 Plan and none of the remaining shares of Common Stock authorized under the 2012 Plan will be transferred to or used under the 2021 Plan nor will any awards under the 2012 Plan that are forfeited increase the shares available for awards under the 2021 Plan. As of June 30, 2022, the number of shares of Common Stock available under the 2012 Plan was zero. During the six months ended June 30, 2022, the Company granted a total of 50,749 shares of Restricted Stock to officers and employees. These shares of Restricted Stock vest over time in sixteen equal quarterly installments. During the six months ended June 30, 2022, a total of 4,056 shares of Restricted Stock were forfeited. During the six months ended June 30, 2021, the Company granted a total of 52,190 shares of Restricted Stock to officers. These shares of Restricted Stock vest over time in sixteen equal quarterly installments. During the six months ended June 30, 2021, a total of 20,184 shares of Restricted Stock were forfeited. A summary of nonvested shares of Restricted Stock awards outstanding under the 2012 and 2021 Plans as of June 30, 2022, and changes during the six months then ended is as follows: Weighted Average Grant Date Shares Fair Value Nonvested shares at January 1, 2022 122,102 $ 18.35 Granted in 2022 50,749 31.66 Vested in 2022 (32,886) 19.08 Forfeited in 2022 (4,056) 19.20 Nonvested shares at June 30, 2022 135,909 $ 23.12 As of June 30, 2022, there is approximately $2.9 million of total unrecognized compensation costs 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. During the three months ended June 30, 2022 and 2021, the Company recognized share-based compensation expense of $0.3 million, respectively. During the six months ended June 30, 2022 and 2021, the Company recognized share-based compensation of $0.7 million and $0.6 million, respectively.

Segment Information

Segment Information	6 Months Ended
Segment Information	Jun. 30, 2022
Segment Information
Segment Information	15. Segment 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 worldwide. 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 public 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 “Distribution” segment distributes technical software to corporate resellers, value added resellers (VARs), consultants and systems integrators worldwide. The “Solutions” segment is a cloud solutions provider and value-added reseller of software, hardware and services to customers worldwide. As permitted by FASB ASC Topic 280, the Company has utilized the aggregation criteria in combining its operations in Canada, Europe and the United Kingdom with the domestic segments as the international operations provide the same products and services to similar clients and are considered together when the Company’s 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 an individual segment business unit. The Company only identifies accounts receivable, vendor prepayments and inventory by segment as shown below as “Selected Assets” by segment; it does not allocate its other assets, including capital expenditures by segment. The following segment reporting information of the Company is provided: Six months ended Three months ended June 30, June 30, 2022 2021 2022 2021 Net Sales: Distribution $ 128,775 $ 124,692 $ 62,992 $ 69,872 Solutions 10,407 13,471 4,871 5,478 139,182 138,163 67,863 75,350 Gross Profit: Distribution $ 19,852 $ 16,688 $ 10,259 $ 8,814 Solutions 4,614 5,134 2,227 2,165 24,466 21,822 12,486 10,979 Direct Costs: Distribution $ 7,251 $ 7,590 $ 3,587 $ 3,677 Solutions 2,148 2,528 1,010 1,120 9,399 10,118 4,597 4,797 Segment Income Before Taxes: (1) Distribution $ 12,601 $ 9,098 $ 6,672 $ 5,137 Solutions 2,466 2,606 1,217 1,045 Segment Income Before Taxes 15,067 11,704 7,889 6,182 General and administrative $ 6,784 $ 6,433 $ 3,337 $ 3,341 Amortization and depreciation expense 802 796 445 398 Interest, net (17) 301 (7) 291 Foreign currency transaction (loss) gain (298) (66) (442) 25 Income before taxes $ 7,166 $ 4,710 $ 3,658 $ 2,759 (1) Excludes general corporate expenses including interest and foreign currency transaction (loss) gain. As of As of June 30, December 31, Selected Assets by Segment: 2022 2021 Distribution $ 125,277 $ 133,506 Solutions 17,307 18,895 Segment Select Assets 142,584 152,401 Corporate Assets 36,419 38,351 Total Assets $ 179,003 $ 190,752 Geographic areas and net sales mix related to operations for the three and six months ended June 30, 2022 and 2021 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. Six months ended Three months ended June 30, 2022 June 30, 2022 Distribution Solutions Total Distribution Solutions Total Geography USA $ 104,523 $ 4,803 $ 109,326 $ 51,407 $ 2,291 $ 53,698 Europe and United Kingdom 13,319 4,739 18,058 5,883 2,182 8,065 Canada 10,933 865 11,798 5,702 398 6,100 Total net sales $ 128,775 $ 10,407 $ 139,182 $ 62,992 $ 4,871 $ 67,863 Timing of Revenue Recognition Transferred at a point in time where the Company is principal (1) $ 114,937 $ 7,093 $ 122,030 $ 55,797 $ 3,083 $ 58,880 Transferred at a point in time where the Company is agent (2) 13,838 3,314 17,152 7,195 1,788 8,983 Total net sales $ 128,775 $ 10,407 $ 139,182 $ 62,992 $ 4,871 $ 67,863 Six months ended Three months ended June 30, 2021 June 30, 2021 Distribution Solutions Total Distribution Solutions Total Geography USA $ 99,049 $ 7,164 $ 106,213 $ 57,964 $ 2,185 $ 60,149 Europe and United Kingdom 12,969 5,571 18,540 5,724 2,827 8,551 Canada 12,674 736 13,410 6,184 466 6,650 Total net sales $ 124,692 $ 13,471 $ 138,163 $ 69,872 $ 5,478 $ 75,350 Timing of Revenue Recognition Transferred at a point in time where the Company is principal (1) $ 113,240 $ 9,897 $ 123,137 $ 63,882 $ 3,746 $ 67,628 Transferred at a point in time where the Company is agent (2) 11,452 3,574 15,026 5,990 1,732 7,722 Total net sales $ 124,692 $ 13,471 $ 138,163 $ 69,872 $ 5,478 $ 75,350 (1) Includes net sales from third-party hardware and software products. (2) Includes net sales from third-party maintenance, software support and services. Geographic identifiable assets related to operations as of June 30, 2022 and December 31, 2021 were as follows. June 30, December 31, Identifiable Assets by Geographic Areas 2022 2021 USA $ 116,346 $ 122,445 Canada 23,093 24,923 Europe and United Kingdom 39,564 43,384 Total $ 179,003 $ 190,752

Related Party Transactions

Related Party Transactions	6 Months Ended
Related Party Transactions	Jun. 30, 2022
Related Party Transactions
Related Party Transactions	16. Related Party Transactions: The Company made sales to a customer where a member of our Board of Directors was formerly an executive. This member of our Board of Directors employment with the customer ended during the three months ended June 30, 2022. During the three months ended June 30, 2022 and 2021, net sales to this customer totaled approximately $0.1 million, respectively. During the six months ended June 30, 2022 and 2021, net sales to this customer totaled approximately $0.2 million, respectively. Amounts due from this customer as of June 30, 2022 and December 31, 2021 were less than $0.1 million and zero, respectively, which were settled in cash subsequent to each period end. The Company made sales to a customer where a family member of one of our executives has a minority ownership position. During the three months ended June 30, 2022 and 2021, net sales to this customer totaled approximately $0.7 million and zero, respectively. During the six months ended June 30, 2022 and 2021, net sales to this customer totaled approximately $1.0 million and zero, respectively. Amounts due from this customer as of June 30, 2022 and December 31, 2021 were approximately $0.2 million and $0.2 million, respectively, which were or are expected to be settled in cash subsequent to each period end. The Company also had accrued referral fees that it owed to this customer totaling $0.1 million as of December 31, 2021, which were settled in cash subsequent to the period end.

Recently Issued Accounting St_2

Recently Issued Accounting Standards (Policies)	6 Months Ended
Recently Issued Accounting Standards (Policies)	Jun. 30, 2022
Recently Issued Accounting Standards
Recently Issued Accounting Standards	In June 2016, the FASB issued Accounting Standards Update No. 2016-13, “Financial Instruments - Credit Losses (Topic 326)” Financial Instruments – Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic

Goodwill and Other Intangible_2

Goodwill and Other Intangible Assets (Tables)	6 Months Ended
Goodwill and Other Intangible Assets (Tables)	Jun. 30, 2022
Goodwill and Other Intangible Assets
Summary of goodwill	Balance at January 1, 2022 $ 17,188 Translation adjustments (1,367) Balance June 30, 2022 $ 15,821
Summary of other intangibles, net	As of June 30, 2022 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer and vendor relationships $ 9,852 $ 1,391 $ 8,461 Trade name 467 52 415 Total $ 10,319 $ 1,443 $ 8,876 As of December 31, 2021 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer and vendor relationships $ 10,550 $ 1,079 $ 9,471 Trade name 519 40 479 Total $ 11,069 $ 1,119 $ 9,950
Schedule of estimated future amortization expense of other intangible assets	2022 (excluding the six months ended June 30, 2022) $ 378 2023 757 2024 757 2025 757 2026 757 Thereafter 5,470 Total $ 8,876

Right-of-use Asset and Lease _2

Right-of-use Asset and Lease Liability (Tables)	6 Months Ended
Right-of-use Asset and Lease Liability (Tables)	Jun. 30, 2022
Right-of-use Asset and Lease Liability
Schedule of information relating to right-of-use assets and related lease liabilities	Six months ended June 30, 2022 2021 Cash paid for operating lease liabilities $ 314 $ 319 Right-of-use assets obtained in exchange for new operating lease obligations $ 63 $ 38 Weighted-average remaining lease term 4.6 years 5.6 years Weighted-average discount rate 3.4% 3.5%
Schedule of maturities of lease liabilities	2022 (excluding the six months ended June 30, 2022) $ 268 2023 623 2024 539 2025 547 2026 545 Thereafter 125 2,647 Less: imputed interest (603) Total lease liabilities $ 2,044 Lease liabilities, current portion 488 Lease liabilities, net of current portion 1,556 Total lease liabilities $ 2,044

Balance Sheet Details (Tables)

Balance Sheet Details (Tables)	6 Months Ended
Balance Sheet Details (Tables)	Jun. 30, 2022
Balance Sheet Details
Schedule of equipment and leasehold improvements	June 30, December 31, 2022 2021 Equipment $ 2,674 $ 2,627 Capitalized software 1,179 816 Leasehold improvements 1,846 1,762 5,699 5,205 Less accumulated depreciation and amortization (3,595) (3,273) $ 2,104 $ 1,932
Schedule of accounts receivable - long term, net	June 30, December 31, 2022 2021 Total amount due from customer $ 690 $ 484 Less: unamortized discount (38) (8) Less: current portion included in accounts receivable (355) (398) $ 297 $ 78
Schedule of accounts payable and accrued expenses	June 30, December 31, 2022 2021 Trade accounts payable $ 112,718 $ 125,908 Accrued expenses 6,186 8,363 $ 118,904 $ 134,271

Earnings Per Share (Tables)

Earnings Per Share (Tables)	6 Months Ended
Earnings Per Share (Tables)	Jun. 30, 2022
Earnings Per Share
Schedule of reconciliation of the numerators and denominators for computations of the basic and diluted per share	(Unaudited) (Unaudited) Six months ended Three months ended June 30, June 30, 2022 2021 2022 2021 Numerator: Net income $ 5,503 $ 3,311 $ 2,791 $ 1,791 Less distributed and undistributed income allocated to participating securities 143 119 73 42 Net income attributable to common shareholders 5,360 3,192 2,718 1,749 Denominator: Weighted average common shares (Basic) 4,315 4,254 4,321 4,260 Weighted average common shares including assumed conversions (Diluted) 4,315 4,254 4,321 4,260 Basic net income per share $ 1.24 $ 0.76 $ 0.63 $ 0.41 Diluted net income per share $ 1.24 $ 0.76 $ 0.63 $ 0.41

Stockholders' Equity and Stoc_2

Stockholders' Equity and Stock Based Compensation (Tables)	6 Months Ended
Stockholders' Equity and Stock Based Compensation (Tables)	Jun. 30, 2022
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, 2022 122,102 $ 18.35 Granted in 2022 50,749 31.66 Vested in 2022 (32,886) 19.08 Forfeited in 2022 (4,056) 19.20 Nonvested shares at June 30, 2022 135,909 $ 23.12

Segment Information (Tables)

Segment Information (Tables)	6 Months Ended
Segment Information (Tables)	Jun. 30, 2022
Segment Information
Schedule of segment reporting information	Six months ended Three months ended June 30, June 30, 2022 2021 2022 2021 Net Sales: Distribution $ 128,775 $ 124,692 $ 62,992 $ 69,872 Solutions 10,407 13,471 4,871 5,478 139,182 138,163 67,863 75,350 Gross Profit: Distribution $ 19,852 $ 16,688 $ 10,259 $ 8,814 Solutions 4,614 5,134 2,227 2,165 24,466 21,822 12,486 10,979 Direct Costs: Distribution $ 7,251 $ 7,590 $ 3,587 $ 3,677 Solutions 2,148 2,528 1,010 1,120 9,399 10,118 4,597 4,797 Segment Income Before Taxes: (1) Distribution $ 12,601 $ 9,098 $ 6,672 $ 5,137 Solutions 2,466 2,606 1,217 1,045 Segment Income Before Taxes 15,067 11,704 7,889 6,182 General and administrative $ 6,784 $ 6,433 $ 3,337 $ 3,341 Amortization and depreciation expense 802 796 445 398 Interest, net (17) 301 (7) 291 Foreign currency transaction (loss) gain (298) (66) (442) 25 Income before taxes $ 7,166 $ 4,710 $ 3,658 $ 2,759 (1) Excludes general corporate expenses including interest and foreign currency transaction (loss) gain. As of As of June 30, December 31, Selected Assets by Segment: 2022 2021 Distribution $ 125,277 $ 133,506 Solutions 17,307 18,895 Segment Select Assets 142,584 152,401 Corporate Assets 36,419 38,351 Total Assets $ 179,003 $ 190,752
Summary of disaggregation of revenue according to revenue type	Six months ended Three months ended June 30, 2022 June 30, 2022 Distribution Solutions Total Distribution Solutions Total Geography USA $ 104,523 $ 4,803 $ 109,326 $ 51,407 $ 2,291 $ 53,698 Europe and United Kingdom 13,319 4,739 18,058 5,883 2,182 8,065 Canada 10,933 865 11,798 5,702 398 6,100 Total net sales $ 128,775 $ 10,407 $ 139,182 $ 62,992 $ 4,871 $ 67,863 Timing of Revenue Recognition Transferred at a point in time where the Company is principal (1) $ 114,937 $ 7,093 $ 122,030 $ 55,797 $ 3,083 $ 58,880 Transferred at a point in time where the Company is agent (2) 13,838 3,314 17,152 7,195 1,788 8,983 Total net sales $ 128,775 $ 10,407 $ 139,182 $ 62,992 $ 4,871 $ 67,863 Six months ended Three months ended June 30, 2021 June 30, 2021 Distribution Solutions Total Distribution Solutions Total Geography USA $ 99,049 $ 7,164 $ 106,213 $ 57,964 $ 2,185 $ 60,149 Europe and United Kingdom 12,969 5,571 18,540 5,724 2,827 8,551 Canada 12,674 736 13,410 6,184 466 6,650 Total net sales $ 124,692 $ 13,471 $ 138,163 $ 69,872 $ 5,478 $ 75,350 Timing of Revenue Recognition Transferred at a point in time where the Company is principal (1) $ 113,240 $ 9,897 $ 123,137 $ 63,882 $ 3,746 $ 67,628 Transferred at a point in time where the Company is agent (2) 11,452 3,574 15,026 5,990 1,732 7,722 Total net sales $ 124,692 $ 13,471 $ 138,163 $ 69,872 $ 5,478 $ 75,350 (1) Includes net sales from third-party hardware and software products. (2) Includes net sales from third-party maintenance, software support and services.
Schedule of net sales to identifiable assets by geographic areas	June 30, December 31, Identifiable Assets by Geographic Areas 2022 2021 USA $ 116,346 $ 122,445 Canada 23,093 24,923 Europe and United Kingdom 39,564 43,384 Total $ 179,003 $ 190,752

Foreign Currency Translation (D

Foreign Currency Translation (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Revenue from external customers
Net sales	$ 67,863	$ 75,350	$ 139,182	$ 138,163
Foreign operations
Revenue from external customers
Net sales	$ 14,200	$ 15,200	$ 29,900	$ 32,000

Goodwill and Other Intangible_3

Goodwill and Other Intangible Assets - Summary of goodwill (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2022 USD ($)
Goodwill [Roll Forward]
Beginning Balance	$ 17,188
Translation adjustments	(1,367)
Ending Balance	$ 15,821

Goodwill and Other Intangible_4

Goodwill and Other Intangible Assets - Other intangibles, net (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 10,319		$ 10,319		$ 11,069
Accumulated Amortization	1,443		1,443		1,119
Total	8,876		8,876		9,950
Amortization expense	200	$ 200	400	$ 500
Customer and vendor relationships
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	9,852		9,852		10,550
Accumulated Amortization	1,391		1,391		1,079
Total	8,461		8,461		9,471
Trade name
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	467		467		519
Accumulated Amortization	52		52		40
Total	$ 415		$ 415		$ 479
Amortization period			15 years
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Amortization period			13 years
Vendor relationships \| Minimum
Finite-Lived Intangible Assets [Line Items]
Amortization period			11 years
Vendor relationships \| Maximum
Finite-Lived Intangible Assets [Line Items]
Amortization period			15 years

Goodwill and Other Intangible_5

Goodwill and Other Intangible Assets - Future amortization expense (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
2022 (excluding the six months ended June 30, 2022)	$ 378
2023	757
2024	757
2025	757
2026	757
Thereafter	5,470
Total	$ 8,876	$ 9,950

Right-of-use Asset and Lease _3

Right-of-use Asset and Lease Liability (Details)	Jun. 30, 2022
Minimum
Right-of-use Asset and Lease Liability
Lease term	2 years
Maximum
Right-of-use Asset and Lease Liability
Lease term	11 years

Right-of-use Asset and Lease _4

Right-of-use Asset and Lease Liability - Operating lease information (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Right-of-use Asset and Lease Liability
Cash paid for operating lease liabilities	$ 314	$ 319
Right-of-use assets obtained in exchange for new operating lease obligations	$ 63	$ 38
Weighted-average remaining lease term	4 years 7 months 6 days	5 years 7 months 6 days
Weighted-average discount rate	3.40%	3.50%

Right-of-use Asset and Lease _5

Right-of-use Asset and Lease Liability - Maturities of lease liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Maturities of lease liabilities
2022 (excluding the six months ended June 30, 2022)	$ 268
2023	623
2024	539
2025	547
2026	545
Thereafter	125
Total	2,647
Less: imputed interest	(603)
Total lease liabilities	2,044
Lease liabilities, current portion	488	$ 475
Lease liabilities, net of current portion	$ 1,556	$ 1,810

Balance Sheet Details (Details)

Balance Sheet Details (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Balance Sheet Details (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Equipment and leasehold improvements
Equipment and leasehold improvements, gross	$ 5,699		$ 5,699		$ 5,205
Less accumulated depreciation and amortization	(3,595)		(3,595)		(3,273)
Equipment and leasehold improvements, net	2,104		2,104		1,932
Depreciation and amortization expense	200	$ 200	$ 400	$ 300
Minimum
Equipment and leasehold improvements
Payment extension term to customers			12 months
Maximum
Equipment and leasehold improvements
Payment extension term to customers			24 months
Equipment
Equipment and leasehold improvements
Equipment and leasehold improvements, gross	2,674		$ 2,674		2,627
Capitalized software
Equipment and leasehold improvements
Equipment and leasehold improvements, gross	1,179		1,179		816
Leasehold improvements
Equipment and leasehold improvements
Equipment and leasehold improvements, gross	$ 1,846		$ 1,846		$ 1,762

Balance Sheet Details- Accounts

Balance Sheet Details- Accounts receivable - long term, net (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Balance Sheet Details
Undiscounted cash flows March 31, 2023	$ 400
Undiscounted cash flows March 31,2024	300
Accounts receivable - long term
Total amount due from customer	690	$ 484
Less unamortized discount	(38)	(8)
Less current portion included in accounts receivable	(355)	(398)
Total of accounts receivable, long term, net	$ 297	$ 78

Balance Sheet Details - Account

Balance Sheet Details - Accounts payable and accrued expenses (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Accounts payable and accrued expenses
Trade accounts payable	$ 112,718	$ 125,908
Accrued expenses	6,186	8,363
Accounts payable and accrued expenses	$ 118,904	$ 134,271

Credit Facility (Details)

Credit Facility (Details)	Apr. 08, 2022 USD ($)	Apr. 13, 2021 GBP (£)	Nov. 15, 2017 USD ($)	Jun. 30, 2022 USD ($)	Dec. 31, 2021 USD ($)
Credit Facility
Interest rate	3.73%
Debt Instrument, Face Amount	$ 2,148,000,000
Debt Instrument, Term	48 months
Long-term Debt				$ 2,100,000	$ 0
Uncommitted Credit Facility
Credit Facility
Maximum borrowing capacity \| £		£ 8,000,000
Interest rate margin (as a percent)		1.85%
Borrowings outstanding				0	0
Credit Facility
Credit Facility
Maximum borrowing capacity			$ 20,000,000
Debt Service Coverage Ratio			2
Leverage Ratio			2.5
Collateral Coverage Ratio			1.5
Borrowings outstanding				$ 0	$ 0
Credit Facility \| Index
Credit Facility
Interest rate margin (as a percent)			1.75%
Credit Facility \| Minimum \| Index
Credit Facility
Interest rate			0.75%

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2022	Jun. 30, 2021
Numerator:
Net income	$ 2,791	$ 2,712	$ 1,791	$ 1,520	$ 5,503	$ 3,311
Less distributed and undistributed income allocated to participating securities	73		42		143	119
Net income attributable to common shareholders	$ 2,718		$ 1,749		$ 5,360	$ 3,192
Denominator:
Weighted average common shares (Basic)	4,321		4,260		4,315	4,254
Weighted average common shares including assumed conversions (Diluted)	4,321		4,260		4,315	4,254
Basic net income per share	$ 0.63		$ 0.41		$ 1.24	$ 0.76
Diluted net income per share	$ 0.63		$ 0.41		$ 1.24	$ 0.76

Major Customers and Vendors (De

Major Customers and Vendors (Details)	3 Months Ended		6 Months Ended		12 Months Ended
Major Customers and Vendors (Details)	Jun. 30, 2022 customer item	Jun. 30, 2021 customer item	Jun. 30, 2022 customer item	Jun. 30, 2021 item customer	Dec. 31, 2021
Purchases \| Vendor concentration risk
Significant Customers and Vendors
Number of vendors \| item	2	2	2	2
Purchases \| Vendor concentration risk \| One major vendor
Significant Customers and Vendors
Percentage of concentration risk	16%	18%	19%	21%
Purchases \| Vendor concentration risk \| Two major vendor
Significant Customers and Vendors
Percentage of concentration risk	9%	12%	9%	9%
Net sales \| Customer concentration risk
Significant Customers and Vendors
Number of customers \| customer	2	2	2	2
Net sales \| Customer one \| Customer concentration risk
Significant Customers and Vendors
Percentage of concentration risk	21%	17%	23%	18%
Net sales \| Customer two \| Customer concentration risk
Significant Customers and Vendors
Percentage of concentration risk	20%	17%	18%	15%
Net accounts receivable \| Customer one \| Customer concentration risk
Significant Customers and Vendors
Percentage of concentration risk			20%		18%
Net accounts receivable \| Customer two \| Customer concentration risk
Significant Customers and Vendors
Percentage of concentration risk			17%		22%

Stockholders' Equity and Stoc_3

Stockholders' Equity and Stock Based Compensation (Details) - 2012 Plan - shares	Jun. 30, 2022	Jun. 30, 2018	May 31, 2018
Stock-based compensation
Number of shares of common stock initially available for award		1,000,000	600,000
Options reserved for future issuance (in shares)	0	352,158

Stockholders' Equity and Stoc_4

Stockholders' Equity and Stock Based Compensation - Nonvested (Details) $ / shares in Units, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022 USD ($) $ / shares shares	Jun. 30, 2021 USD ($)	Jun. 30, 2022 USD ($) item $ / shares shares	Jun. 30, 2021 USD ($) item shares
Weighted Average Grant Date Fair Value
Share-based compensation expense \| $	$ 0.3	$ 0.3	$ 0.7	$ 0.6
Restricted stock
Shares
Nonvested shares at the beginning of the period \| shares			122,102
Granted (in shares) \| shares			50,749	52,190
Vested (in shares) \| shares			(32,886)
Forfeited (in shares) \| shares			(4,056)	(20,184)
Nonvested shares at the end of the period \| shares	135,909		135,909
Number of equal quarterly installments for vesting of awards \| item			16	16
Weighted Average Grant Date Fair Value
Nonvested shares at the beginning of period (in dollars per share) \| $ / shares			$ 18.35
Granted (in dollars per share) \| $ / shares			31.66
Vested (in dollars per share) \| $ / shares			19.08
Forfeited (in dollars per share) \| $ / shares			19.20
Nonvested shares at the end of period (in dollars per share) \| $ / shares	$ 23.12		$ 23.12
Unrecognized compensation cost (in dollars) \| $	$ 2.9		$ 2.9
Weighted average period for recognition of unrecognized compensation cost			3 years

Stockholders' Equity and Stoc_5

Stockholders' Equity and Stock Based Compensation - Plans and options (Details) - $ / shares	Jun. 30, 2022	Dec. 31, 2021	Jun. 30, 2021	Jun. 30, 2018	May 31, 2018
Stock-based compensation
Common Stock, par value (in dollars per share)	$ 0.01	$ 0.01
2021 Plan
Stock-based compensation
Common Stock, par value (in dollars per share)			$ 0.01
Number of shares of common stock initially available for award			500,000
Options reserved for future issuance (in shares)	401,350
2012 Plan
Stock-based compensation
Number of shares of common stock initially available for award				1,000,000	600,000
Options reserved for future issuance (in shares)	0			352,158

Segment Information (Details)

Segment Information (Details) $ in Thousands	3 Months Ended		6 Months Ended
Segment Information (Details) $ in Thousands	Jun. 30, 2022 USD ($)	Jun. 30, 2021 USD ($)	Jun. 30, 2022 USD ($) item	Jun. 30, 2021 USD ($)
Segment reporting information
Number of reportable operating segments \| item			2
Revenue	$ 67,863	$ 75,350	$ 139,182	$ 138,163
Gross profit	12,486	10,979	24,466	21,822
Direct Costs	4,597	4,797	9,399	10,118
Segment Income Before Taxes	7,889	6,182	15,067	11,704
General and administrative	3,337	3,341	6,784	6,433
Amortization and depreciation expense	445	398	802	796
Interest, net	(7)	291	(17)	301
Foreign currency transaction (loss) gain	(442)	25	(298)	(66)
Income before provision for income taxes	3,658	2,759	7,166	4,710
Distribution
Segment reporting information
Revenue	62,992	69,872	128,775	124,692
Gross profit	10,259	8,814	19,852	16,688
Direct Costs	3,587	3,677	7,251	7,590
Segment Income Before Taxes	6,672	5,137	12,601	9,098
Solutions
Segment reporting information
Revenue	4,871	5,478	10,407	13,471
Gross profit	2,227	2,165	4,614	5,134
Direct Costs	1,010	1,120	2,148	2,528
Segment Income Before Taxes	$ 1,217	$ 1,045	$ 2,466	$ 2,606

Segment Information - Selected

Segment Information - Selected Assets by Segment (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Segment Reporting Information [Line Items]
Total Assets	$ 179,003	$ 190,752
Segment Total
Segment Reporting Information [Line Items]
Total Assets	142,584	152,401
Corporate Assets
Segment Reporting Information [Line Items]
Total Assets	36,419	38,351
Distribution \| Segment Total
Segment Reporting Information [Line Items]
Total Assets	125,277	133,506
Solutions \| Segment Total
Segment Reporting Information [Line Items]
Total Assets	$ 17,307	$ 18,895

Segment Information- Disaggrega

Segment Information- Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Disaggregation of Revenue [Line Items]
Net sales	$ 67,863	$ 75,350	$ 139,182	$ 138,163
Distribution
Disaggregation of Revenue [Line Items]
Net sales	62,992	69,872	128,775	124,692
Solutions
Disaggregation of Revenue [Line Items]
Net sales	4,871	5,478	10,407	13,471
USA
Disaggregation of Revenue [Line Items]
Net sales	53,698	60,149	109,326	106,213
USA \| Distribution
Disaggregation of Revenue [Line Items]
Net sales	51,407	57,964	104,523	99,049
USA \| Solutions
Disaggregation of Revenue [Line Items]
Net sales	2,291	2,185	4,803	7,164
Europe and United Kingdom
Disaggregation of Revenue [Line Items]
Net sales	8,065	8,551	18,058	18,540
Europe and United Kingdom \| Distribution
Disaggregation of Revenue [Line Items]
Net sales	5,883	5,724	13,319	12,969
Europe and United Kingdom \| Solutions
Disaggregation of Revenue [Line Items]
Net sales	2,182	2,827	4,739	5,571
Canada
Disaggregation of Revenue [Line Items]
Net sales	6,100	6,650	11,798	13,410
Canada \| Distribution
Disaggregation of Revenue [Line Items]
Net sales	5,702	6,184	10,933	12,674
Canada \| Solutions
Disaggregation of Revenue [Line Items]
Net sales	398	466	865	736
Company As Principal \| Transferred at Point in Time
Disaggregation of Revenue [Line Items]
Net sales	58,880	67,628	122,030	123,137
Company As Principal \| Distribution \| Transferred at Point in Time
Disaggregation of Revenue [Line Items]
Net sales	55,797	63,882	114,937	113,240
Company As Principal \| Solutions \| Transferred at Point in Time
Disaggregation of Revenue [Line Items]
Net sales	3,083	3,746	7,093	9,897
Company As Agent \| Transferred at Point in Time
Disaggregation of Revenue [Line Items]
Net sales	8,983	7,722	17,152	15,026
Company As Agent \| Distribution \| Transferred at Point in Time
Disaggregation of Revenue [Line Items]
Net sales	7,195	5,990	13,838	11,452
Company As Agent \| Solutions \| Transferred at Point in Time
Disaggregation of Revenue [Line Items]
Net sales	$ 1,788	$ 1,732	$ 3,314	$ 3,574

Segment Information - Assets (D

Segment Information - Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Net sales to unaffiliated customers and identifiable assets by geographic areas
Identifiable Assets by Geographic Areas	$ 179,003	$ 190,752
USA
Net sales to unaffiliated customers and identifiable assets by geographic areas
Identifiable Assets by Geographic Areas	116,346	122,445
Canada
Net sales to unaffiliated customers and identifiable assets by geographic areas
Identifiable Assets by Geographic Areas	23,093	24,923
Europe and United Kingdom
Net sales to unaffiliated customers and identifiable assets by geographic areas
Identifiable Assets by Geographic Areas	$ 39,564	$ 43,384

Related Party Transactions (Det

Related Party Transactions (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
Related Party Transactions (Detail) - USD ($) $ in Millions	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Board of Directors
Sales to related party	$ 0.1	$ 0.1	$ 0.2	$ 0.2
Due from related party	0.1		0.1		$ 0
Family member of executive
Sales to related party	0.7	$ 0	1	$ 0
Due from related party	$ 0.2		$ 0.2		0.2
Accrued referral fees					$ 0.1