Climb Global Solutions (CLMB) 10-Q3 Aug 232023 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, 2023	Aug. 01, 2023
Document and Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Jun. 30, 2023
Entity Registrant Name	Climb Global Solutions, 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 per share
Trading Symbol	CLMB
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		4,568,914
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q2

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 43,869	$ 20,245
Accounts receivable, net of allowance for doubtful accounts of $736 and $842, respectively	130,027	154,596
Inventory, net	3,228	4,766
Vendor prepayments and advances		890
Prepaid expenses and other current assets	7,651	4,141
Total current assets	184,775	184,638
Equipment and leasehold improvements, net	6,262	3,515
Goodwill	19,637	18,963
Other intangibles, net	19,423	19,693
Right-of-use assets, net	1,040	1,235
Accounts receivable-long-term, net	1,259	3,114
Other assets	868	350
Deferred income tax assets	434	348
Total assets	233,698	231,856
Current liabilities:
Accounts payable and accrued expenses	157,471	160,650
Lease liability, current portion	471	521
Term loan, current portion	530	520
Total current liabilities	158,472	161,691
Lease liability, net of current portion	1,087	1,296
Deferred income tax liabilities	4,290	4,137
Term loan, net of current portion	1,024	1,292
Non-current liabilities	1,843	2,866
Total liabilities	166,716	171,282
Commitments and contingencies
Stockholders' equity:
Common stock, $.01 par value; 10,000,000 shares authorized; 5,284,500 shares issued: 4,568,914 and 4,478,432 shares outstanding, respectively	53	53
Additional paid-in capital	33,476	32,715
Treasury stock, at cost, 715,586 and 806,068 shares, respectively	(12,402)	(13,230)
Retained earnings	47,106	43,904
Accumulated other comprehensive loss	(1,251)	(2,868)
Total stockholders' equity	66,982	60,574
Total liabilities and stockholders' equity	$ 233,698	$ 231,856

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Condensed Consolidated Balance Sheets
Accounts receivable, allowances (in dollars)	$ 736	$ 842
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	4,568,914	4,478,432
Treasury stock, shares	715,586	806,068

Condensed Consolidated Statemen

Condensed Consolidated Statements of Earnings - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Condensed Consolidated Statements of Earnings
Net sales	$ 81,732	$ 67,863	$ 166,771	$ 139,182
Cost of sales	68,039	55,377	137,870	114,716
Gross profit	13,693	12,486	28,901	24,466
Selling, general, and administrative expenses	11,576	7,934	21,837	16,183
Amortization and depreciation expense	604	445	1,317	802
Income from operations	1,513	4,107	5,747	7,481
Other income:
Interest, net	330	(7)	441	(17)
Foreign currency transaction gain (loss)	(4)	(442)	40	(298)
Income before provision for income taxes	1,839	3,658	6,228	7,166
Provision for income taxes	458	867	1,523	1,663
Net income	$ 1,381	$ 2,791	$ 4,705	$ 5,503
Income per common share-Basic	$ 0.31	$ 0.63	$ 1.05	$ 1.24
Income per common share-Diluted	$ 0.31	$ 0.63	$ 1.05	$ 1.24
Weighted average common shares outstanding - Basic (in shares)	4,396	4,321	4,381	4,315
Weighted average common shares outstanding - Diluted (in shares)	4,396	4,321	4,381	4,315
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 (Loss) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Condensed Consolidated Statements of Comprehensive Income (Loss)
Net income	$ 1,381	$ 2,791	$ 4,705	$ 5,503
Other comprehensive income (loss):
Foreign currency translation adjustments	1,004	(1,709)	1,617	(2,335)
Other comprehensive income (loss)	1,004	(1,709)	1,617	(2,335)
Comprehensive income	$ 2,385	$ 1,082	$ 6,322	$ 3,168

Condensed Consolidated Statem_3

Condensed Consolidated Statements 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, 2021	$ 53	$ 32,087	$ (13,870)	$ 34,396	$ (250)	$ 52,416
Balance (in shares) at Dec. 31, 2021	5,284,500
Treasury Stock, balance (in shares) at Dec. 31, 2021			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
Treasury Stock, 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
Treasury Stock, balance (in shares) at Dec. 31, 2021			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
Treasury Stock, balance (in shares) at Jun. 30, 2022			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
Treasury Stock, 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
Treasury Stock, balance (in shares) at Jun. 30, 2022			825,404
Balance at Dec. 31, 2022	$ 53	32,715	$ (13,230)	43,904	(2,868)	$ 60,574
Balance (in shares) at Dec. 31, 2022	5,284,500					5,284,500
Treasury Stock, balance (in shares) at Dec. 31, 2022			806,068			806,068
Increase (Decrease) in Stockholders' Equity
Net income				3,324		$ 3,324
Translation adjustment					613	613
Dividends paid				(749)		(749)
Share-based compensation expense		546				546
Restricted stock grants (net of forfeitures)		(765)	$ 765
Restricted stock grants (net of forfeitures) (in shares)			(43,824)
Treasury shares repurchased			$ (214)			(214)
Treasury shares repurchased (in shares)			5,604
Balance at Mar. 31, 2023	$ 53	32,496	$ (12,679)	46,479	(2,255)	64,094
Balance (in shares) at Mar. 31, 2023	5,284,500
Treasury Stock, balance (in shares) at Mar. 31, 2023			767,848
Balance at Dec. 31, 2022	$ 53	32,715	$ (13,230)	43,904	(2,868)	$ 60,574
Balance (in shares) at Dec. 31, 2022	5,284,500					5,284,500
Treasury Stock, balance (in shares) at Dec. 31, 2022			806,068			806,068
Increase (Decrease) in Stockholders' Equity
Net income						$ 4,705
Translation adjustment						1,617
Balance at Jun. 30, 2023	$ 53	33,476	$ (12,402)	47,106	(1,251)	$ 66,982
Balance (in shares) at Jun. 30, 2023	5,284,500					5,284,500
Treasury Stock, balance (in shares) at Jun. 30, 2023			715,586			715,586
Balance at Mar. 31, 2023	$ 53	32,496	$ (12,679)	46,479	(2,255)	$ 64,094
Balance (in shares) at Mar. 31, 2023	5,284,500
Treasury Stock, balance (in shares) at Mar. 31, 2023			767,848
Increase (Decrease) in Stockholders' Equity
Net income				1,381		1,381
Translation adjustment					1,004	1,004
Dividends paid				(754)		(754)
Share-based compensation expense		2,238				2,238
Restricted stock grants (net of forfeitures)		(1,258)	$ 1,258
Restricted stock grants (net of forfeitures) (in shares)			(71,965)
Treasury shares repurchased			$ (981)			(981)
Treasury shares repurchased (in shares)			19,703
Balance at Jun. 30, 2023	$ 53	$ 33,476	$ (12,402)	$ 47,106	$ (1,251)	$ 66,982
Balance (in shares) at Jun. 30, 2023	5,284,500					5,284,500
Treasury Stock, balance (in shares) at Jun. 30, 2023			715,586			715,586

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Cash flows from operating activities
Net income	$ 4,705	$ 5,503
Adjustments to reconcile net income to net cash and cash equivalents provided by operating activities:
Depreciation and amortization expense	1,317	802
Provision for doubtful accounts	24	11
Deferred income tax benefit	(91)	14
Share-based compensation expense	2,735	714
Amortization of discount on accounts receivable	(29)	(10)
Amortization of right-of-use assets	203	220
Changes in operating assets and liabilities:
Accounts receivable	27,735	5,929
Inventory	1,541	316
Prepaid expenses and other current assets	(3,450)	1,851
Vendor prepayments	890	(263)
Accounts payable and accrued expenses	(6,482)	(13,585)
Lease liability, net	(266)	(276)
Other assets and liabilities	788	43
Net cash and cash equivalents provided by operating activities	29,620	1,269
Cash flows from investing activities
Purchase of equipment and leasehold improvements	(3,025)	(652)
Net cash and cash equivalents used in investing activities	(3,025)	(652)
Cash flows from financing activities
Purchase of treasury stock	(1,193)	(394)
Borrowings under revolving credit facility	10,000
Repayments of borrowings under revolving credit facility	(10,000)
Borrowings under revolving term loan		2,148
Repayments of borrowings under term loan	(258)	(83)
Dividends paid	(1,503)	(1,492)
Payments of deferred financing costs	(584)
Net cash and cash equivalents (used in) provided by financing activities	(3,538)	179
Effect of foreign exchange rate on cash and cash equivalents	567	(753)
Net increase in cash and cash equivalents	23,624	43
Cash and cash equivalents at beginning of period	20,245	29,272
Cash and cash equivalents at end of period	43,869	29,315
Supplementary disclosure of cash flow information:
Income taxes paid	1,947	1,520
Interest paid	$ 22	$ 29

Basis of Presentation

Basis of Presentation	6 Months Ended
Basis of Presentation	Jun. 30, 2023
Basis of Presentation
Basis of Presentation	1. Basis of Presentation: The accompanying unaudited condensed consolidated financial statements of Climb Global Solutions, 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, 2022. The consolidated financial statements include the accounts of Climb Global Solutions, 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, 2023
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, 2023
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. Transactions denominated in currencies other than the applicable functional currency are converted to the functional currency at the exchange rate on the transaction date. 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, 2023 and 2022 were $16.5 million and $14.2 million, respectively. The net sales from our foreign operations for the six months ended June 30, 2023 and 2022 were $41.1 million and $29.9 million, respectively.

Comprehensive Income

Comprehensive Income	6 Months Ended
Comprehensive Income	Jun. 30, 2023
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, 2023
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 Note 16 – Segment Information. 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.

Acquisition

Acquisition	6 Months Ended
Acquisition	Jun. 30, 2023
Acquisition
Acquisition	6. Acquisition: On August 18, 2022, the Company entered into a Share Purchase Agreement and purchased the entire share capital of Spinnakar Limited (“Spinnakar”) for an aggregate purchase price of approximately £9.8 million (equivalent to $11.8 million USD), subject to certain working capital and other adjustments, paid at closing plus a potential post-closing earn-out. The allocation of the purchase price was based upon the estimated fair value of Spinnakar’s net tangible and identifiable intangible assets as of the date of the acquisition. The transaction was accounted for under the purchase method of accounting. The purchase price allocation is final, with no measurement period adjustment made to the account balances recorded at the acquisition date. The purchase consideration included approximately $1.9 million fair value for potential earn-out consideration if certain targets are achieved, payable in cash, with $1.1 million included in accounts payable and accrued expenses and $0.8 million included in non-current liabilities as of June 30, 2023 .

Goodwill and Other Intangible A

Goodwill and Other Intangible Assets	6 Months Ended
Goodwill and Other Intangible Assets	Jun. 30, 2023
Goodwill and Other Intangible Assets
Goodwill and Other Intangible Assets	7. Goodwill and Other Intangible Assets: Balance at January 1, 2023 $ 18,963 Translation adjustments 674 Balance June 30, 2023 $ 19,637 As of June 30, 2023 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer and vendor relationships $ 22,228 $ 3,205 $ 19,023 Trade name 486 86 400 Total $ 22,714 $ 3,291 $ 19,423 As of December 31, 2022 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer and vendor relationships $ 21,457 $ 2,165 $ 19,292 Trade name 468 67 401 Total $ 21,925 $ 2,232 $ 19,693 eight 2023 (excluding the six months ended June 30, 2023) $ 969 2024 1,938 2025 1,938 2026 1,938 2027 1,938 Thereafter 10,702 Total $ 19,423

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, 2023
Right-of-use Asset and Lease Liability
Right-of-use Asset and Lease Liability	8. 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, 2023 2022 Cash paid for operating lease liabilities $ 312 $ 314 Right-of-use assets obtained in exchange for new operating lease obligations $ — $ 63 Weighted-average remaining lease term 3.6 years 4.6 years Weighted-average discount rate 3.5% 3.4% Maturities of lease liabilities as of June 30, 2023 were as follows: 2023 (excluding the six months ended June 30, 2023) $ 315 2024 543 2025 550 2026 548 2027 116 2,072 Less: imputed interest (514) Total lease liabilities $ 1,558 Lease liabilities, current portion 471 Lease liabilities, net of current portion 1,087 Total lease liabilities $ 1,558

Fair Value

Fair Value	6 Months Ended
Fair Value	Jun. 30, 2023
Fair Value
Fair Value	9. 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, 2023 and December 31, 2022 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 Detail

Balance Sheet Detail	6 Months Ended
Balance Sheet Detail	Jun. 30, 2023
Balance Sheet Detail
Balance Sheet Detail	10. Balance Sheet Detail: June 30, December 31, 2023 2022 Equipment $ 2,181 $ 2,720 Capitalized software 5,064 2,997 Leasehold improvements 2,375 1,848 9,620 7,565 Less accumulated depreciation and amortization (3,358) (4,050) $ 6,262 $ 3,515 During the three months ended June 30, 2023, and 2022, the Company recorded depreciation and amortization expense of $0.1 million and $0.2 million, respectively. During the six months ended June 30, 2023 and 2022, the Company recorded depreciation and amortization expense of $0.3 million, respectively. June 30, December 31, 2023 2022 Total amount due from customer $ 2,145 $ 5,213 Less: unamortized discount (32) (188) Less: current portion included in accounts receivable (854) (1,911) $ 1,259 $ 3,114 The undiscounted cash flows to be received by the Company relating to these accounts receivable long-term is expected to be $0.9 million, $0.5 million, $0.4 million and $0.4 million during each of the 12-month periods ending June 30, 2024, 2025, 2026 and 2027, respectively. June 30, December 31, 2023 2022 Trade accounts payable $ 146,516 $ 151,180 Accrued expenses 10,955 9,470 $ 157,471 $ 160,650

Credit Facility

Credit Facility	6 Months Ended
Credit Facility	Jun. 30, 2023
Credit Facility.
Credit Facility	11. Credit Facility: On May 18, 2023, the Company entered into a revolving credit agreement (the “Credit Agreement”) with JPMorgan Chase Bank, N.A. (“JPM”), providing for a revolving credit facility of up to $50.0 million, including the issuance of letters of credit and swingline loans not to exceed $2.5 million and $5.0 million, respectively, at any time outstanding. In addition, subject to certain conditions enumerated in the Credit Agreement, the Company has the right to increase the revolving credit facility by a total amount not to exceed $20.0 million. The proceeds of the revolving loans, letters of credit and swingline loans under the Credit Agreement may be used for working capital needs, general corporate purposes and for acquisitions permitted by the terms of the Credit Agreement. All outstanding loans issued pursuant to the Credit Agreement become due and payable, on May 18, 2028. There were no amounts outstanding under the Credit Agreement as of June 30, 2023. Outstanding Loans comprising (i) ABR Borrowings bear interest at the ABR plus the Applicable Rate, (ii) Term Benchmark Borrowings bear interest at the Adjusted Term SOFR Rate or the Adjusted EURIBOR Rate, as applicable, plus the Applicable Rate and (iii) RFR Loans bear interest at a rate per annum equal to the applicable Adjusted Daily Simple RFR plus the Applicable Rate. The Applicable Rate for borrowings varies (i) in the case of ABR Borrowings, from 0.50% to 0.75% and (ii) in the case of Term Benchmark Borrowings and RFR Loans, from 1.50% to 1.75%. The Credit Agreement contains customary affirmative covenants, such as financial statement and collateral reporting requirements. The Credit Agreement also contains customary negative covenants that limit the ability of the Company to, among other things, incur indebtedness, create liens or permit encumbrances, or undergo certain fundamental changes. Additionally, under certain circumstances, the Company is required to maintain a minimum fixed charge coverage ratio. In connection with entering into the Credit Agreement, the Company voluntarily terminated its existing revolving credit agreement, dated November 15, 2017 with Citibank N.A. (“Previous Credit Facility”). As of December 31, 2022, the Company has no borrowings outstanding under the Previous Credit Facility. On April 8, 2022, the Company entered into a $2.1 million 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, 2023 and December 31, 2022, the Company had $1.6 million and $1.8 million outstanding under the Term Loan, respectively. At June 30, 2023, future principal payments under the Term Loan are as follows: 2023 (excluding the six months ended June 30, 2023) 307 2024 542 2025 562 2026 143 Total $ 1,554

Earnings Per Share

Earnings Per Share	6 Months Ended
Earnings Per Share	Jun. 30, 2023
Earnings Per Share
Earnings Per Share	12. 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, 2023 2022 2023 2022 Numerator: Net income $ 4,705 $ 5,503 $ 1,381 $ 2,791 Less distributed and undistributed income allocated to participating securities 108 143 25 73 Net income attributable to common shareholders 4,597 5,360 1,356 2,718 Denominator: Weighted average common shares (Basic) 4,381 4,315 4,396 4,321 Weighted average common shares including assumed conversions (Diluted) 4,381 4,315 4,396 4,321 Basic net income per share $ 1.05 $ 1.24 $ 0.31 $ 0.63 Diluted net income per share $ 1.05 $ 1.24 $ 0.31 $ 0.63

Major Customers and Vendors

Major Customers and Vendors	6 Months Ended
Major Customers and Vendors	Jun. 30, 2023
Major Customers and Vendors
Major Customers and Vendors	13. Major Customers and Vendors: The Company had one major vendor that accounted for 12% of total purchases during the three months ended June 30, 2023, and 16% of total purchases during the three months ended June 30, 2022. The Company had one major vendor that accounted for 17% of total purchases during the six months ended June 30, 2023 and 19% of total purchases during the six months ended June 30, 2022. The Company had two major customers that accounted for 22% and 14%, respectively, of its net sales during the three months ended June 30, 2023, and 21% and 20%, respectively, of its net sales during the three months ended June 30, 2022. The Company had two major customers that accounted for 21% and 14%, respectively, of its net sales during the six months ended June 30, 2023, and 23% and 18%, respectively, of its net sales during the six months ended June 20, 2022. These same customers accounted for 19% and 12%, respectively, of total net accounts receivable as of June 30, 2023, and 16% and 18%, respectively, of total net accounts receivable as of December 31, 2022.

Income Taxes

Income Taxes	6 Months Ended
Income Taxes	Jun. 30, 2023
Income Taxes
Income Taxes	14. 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, 2023
Stockholders' Equity and Stock Based Compensation
Stockholders' Equity and Stock Based Compensation	15. 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, 2023, the number of shares of Common Stock available for future award grants to employees, officers and directors under the 2021 Plan is 257,805. 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, 2023, the number of shares of Common Stock available under the 2012 Plan was zero. During the six months ended June 30, 2023, the Company granted a total of 115,789 shares of Restricted Stock to officers and employees. These shares of Restricted Stock vest immediately, over time in three equal installments or over time in sixteen equal quarterly installments. During the six months ended June 30, 2022, the Company granted a total of 50,749 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, 2022, a total of 4,056 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, 2023, and changes during the six months then ended is as follows: Weighted Average Grant Date Shares Fair Value Nonvested shares at January 1, 2023 121,059 $ 24.83 Granted in 2023 115,789 45.81 Vested in 2023 (71,478) 37.98 Forfeited in 2023 — — Nonvested shares at June 30, 2023 165,370 $ 33.83 As of June 30, 2023, there is approximately $5.1 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 1.9 years. During the three months ended June 30, 2023, and 2022, the Company recognized share-based compensation expense of $2.2 million and $0.3 million, respectively. During the six months ended June 30, 2023, and 2022, the Company recognized share-based compensation expense of $2.7 million and $0.7 million, respectively.

Segment Information

Segment Information	6 Months Ended
Segment Information	Jun. 30, 2023
Segment Information
Segment Information	16. 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, 2023 2022 2023 2022 Net Sales: Distribution $ 154,678 $ 128,775 $ 76,128 $ 62,992 Solutions 12,093 10,407 5,604 4,871 166,771 139,182 81,732 67,863 Gross Profit: Distribution $ 23,801 $ 19,852 $ 11,074 $ 10,259 Solutions 5,100 4,614 2,619 2,227 28,901 24,466 13,693 12,486 Direct Costs: Distribution $ 9,976 $ 7,251 $ 5,010 $ 3,587 Solutions 2,618 2,148 1,317 1,010 12,594 9,399 6,327 4,597 Segment Income Before Taxes: (1) Distribution $ 13,825 $ 12,601 $ 6,064 $ 6,672 Solutions 2,482 2,466 1,302 1,217 Segment Income Before Taxes 16,307 15,067 7,366 7,889 General and administrative $ 9,243 $ 6,784 $ 5,249 $ 3,337 Amortization and depreciation expense 1,317 802 604 445 Interest, net 441 (17) 330 (7) Foreign currency transaction gain (loss) 40 (298) (4) (442) Income before taxes $ 6,228 $ 7,166 $ 1,839 $ 3,658 (1) Excludes general corporate expenses including interest and foreign currency transaction gain (loss) As of As of June 30, December 31, Selected Assets by Segment: 2023 2022 Distribution $ 152,199 $ 180,602 Solutions 21,374 21,420 Segment Select Assets 173,573 202,022 Corporate Assets 60,125 29,834 Total Assets $ 233,698 $ 231,856 Geographic areas and net sales mix related to operations for the three and six months ended June 30, 2023 and 2022 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, 2023 June 30, 2023 Distribution Solutions Total Distribution Solutions Total Geography USA $ 119,387 $ 6,303 $ 125,690 $ 62,644 $ 2,637 $ 65,281 Europe and United Kingdom 22,550 5,089 27,639 7,134 2,589 9,723 Canada 12,741 701 13,442 6,350 378 6,728 Total net sales $ 154,678 $ 12,093 $ 166,771 $ 76,128 $ 5,604 $ 81,732 Timing of Revenue Recognition Transferred at a point in time where the Company is principal (1) $ 136,439 $ 8,869 $ 145,308 $ 67,872 $ 4,036 $ 71,908 Transferred at a point in time where the Company is agent (2) 18,239 3,224 21,463 8,256 1,568 9,824 Total net sales $ 154,678 $ 12,093 $ 166,771 $ 76,128 $ 5,604 $ 81,732 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 (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, 2023 and December 31, 2022 were as follows. June 30, December 31, Identifiable Assets by Geographic Areas 2023 2022 USA $ 137,315 $ 137,877 Canada 25,789 27,597 Europe and United Kingdom 70,594 66,382 Total $ 233,698 $ 231,856

Related Party Transactions

Related Party Transactions	6 Months Ended
Related Party Transactions	Jun. 30, 2023
Related Party Transactions
Related Party Transactions	17. Related Party Transactions: 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, 2023 and 2022, net sales to this customer totaled approximately $0.5 million and $0.7 million, respectively. During the six months ended June 30, 2023 and 2022, net sales to this customer totaled approximately $1.0 million, respectively. Amounts due from this customer as of June 30, 2023 and December 31, 2022 were approximately $0.5 million and $0.1 million, respectively, which were or are expected to be settled in cash subsequent to each period end.

Recently Issued Accounting St_2

Recently Issued Accounting Standards (Policies)	6 Months Ended
Recently Issued Accounting Standards (Policies)	Jun. 30, 2023
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, 2023
Goodwill and Other Intangible Assets
Summary of goodwill	Balance at January 1, 2023 $ 18,963 Translation adjustments 674 Balance June 30, 2023 $ 19,637
Summary of other intangibles, net	As of June 30, 2023 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer and vendor relationships $ 22,228 $ 3,205 $ 19,023 Trade name 486 86 400 Total $ 22,714 $ 3,291 $ 19,423 As of December 31, 2022 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer and vendor relationships $ 21,457 $ 2,165 $ 19,292 Trade name 468 67 401 Total $ 21,925 $ 2,232 $ 19,693
Schedule of estimated future amortization expense of other intangible assets	2023 (excluding the six months ended June 30, 2023) $ 969 2024 1,938 2025 1,938 2026 1,938 2027 1,938 Thereafter 10,702 Total $ 19,423

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, 2023
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, 2023 2022 Cash paid for operating lease liabilities $ 312 $ 314 Right-of-use assets obtained in exchange for new operating lease obligations $ — $ 63 Weighted-average remaining lease term 3.6 years 4.6 years Weighted-average discount rate 3.5% 3.4%
Schedule of maturities of lease liabilities	2023 (excluding the six months ended June 30, 2023) $ 315 2024 543 2025 550 2026 548 2027 116 2,072 Less: imputed interest (514) Total lease liabilities $ 1,558 Lease liabilities, current portion 471 Lease liabilities, net of current portion 1,087 Total lease liabilities $ 1,558

Balance Sheet Detail (Tables)

Balance Sheet Detail (Tables)	6 Months Ended
Balance Sheet Detail (Tables)	Jun. 30, 2023
Balance Sheet Detail
Schedule of equipment and leasehold improvements	June 30, December 31, 2023 2022 Equipment $ 2,181 $ 2,720 Capitalized software 5,064 2,997 Leasehold improvements 2,375 1,848 9,620 7,565 Less accumulated depreciation and amortization (3,358) (4,050) $ 6,262 $ 3,515
Schedule of accounts receivable - long term, net	June 30, December 31, 2023 2022 Total amount due from customer $ 2,145 $ 5,213 Less: unamortized discount (32) (188) Less: current portion included in accounts receivable (854) (1,911) $ 1,259 $ 3,114
Schedule of accounts payable and accrued expenses	June 30, December 31, 2023 2022 Trade accounts payable $ 146,516 $ 151,180 Accrued expenses 10,955 9,470 $ 157,471 $ 160,650

Credit Facility (Tables)

Credit Facility (Tables)	6 Months Ended
Credit Facility (Tables)	Jun. 30, 2023
Credit Facility.
Schedule of future principal payments under the term loan	2023 (excluding the six months ended June 30, 2023) 307 2024 542 2025 562 2026 143 Total $ 1,554

Earnings Per Share (Tables)

Earnings Per Share (Tables)	6 Months Ended
Earnings Per Share (Tables)	Jun. 30, 2023
Earnings Per Share
Schedule of reconciliation of the numerators and denominators of the basic and diluted per share computations	(Unaudited) (Unaudited) Six months ended Three months ended June 30, June 30, 2023 2022 2023 2022 Numerator: Net income $ 4,705 $ 5,503 $ 1,381 $ 2,791 Less distributed and undistributed income allocated to participating securities 108 143 25 73 Net income attributable to common shareholders 4,597 5,360 1,356 2,718 Denominator: Weighted average common shares (Basic) 4,381 4,315 4,396 4,321 Weighted average common shares including assumed conversions (Diluted) 4,381 4,315 4,396 4,321 Basic net income per share $ 1.05 $ 1.24 $ 0.31 $ 0.63 Diluted net income per share $ 1.05 $ 1.24 $ 0.31 $ 0.63

Stockholders' Equity and Stoc_2

Stockholders' Equity and Stock Based Compensation (Tables)	6 Months Ended
Stockholders' Equity and Stock Based Compensation (Tables)	Jun. 30, 2023
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, 2023 121,059 $ 24.83 Granted in 2023 115,789 45.81 Vested in 2023 (71,478) 37.98 Forfeited in 2023 — — Nonvested shares at June 30, 2023 165,370 $ 33.83

Segment Information (Tables)

Segment Information (Tables)	6 Months Ended
Segment Information (Tables)	Jun. 30, 2023
Segment Information
Schedule of segment reporting information	Six months ended Three months ended June 30, June 30, 2023 2022 2023 2022 Net Sales: Distribution $ 154,678 $ 128,775 $ 76,128 $ 62,992 Solutions 12,093 10,407 5,604 4,871 166,771 139,182 81,732 67,863 Gross Profit: Distribution $ 23,801 $ 19,852 $ 11,074 $ 10,259 Solutions 5,100 4,614 2,619 2,227 28,901 24,466 13,693 12,486 Direct Costs: Distribution $ 9,976 $ 7,251 $ 5,010 $ 3,587 Solutions 2,618 2,148 1,317 1,010 12,594 9,399 6,327 4,597 Segment Income Before Taxes: (1) Distribution $ 13,825 $ 12,601 $ 6,064 $ 6,672 Solutions 2,482 2,466 1,302 1,217 Segment Income Before Taxes 16,307 15,067 7,366 7,889 General and administrative $ 9,243 $ 6,784 $ 5,249 $ 3,337 Amortization and depreciation expense 1,317 802 604 445 Interest, net 441 (17) 330 (7) Foreign currency transaction gain (loss) 40 (298) (4) (442) Income before taxes $ 6,228 $ 7,166 $ 1,839 $ 3,658 (1) Excludes general corporate expenses including interest and foreign currency transaction gain (loss) As of As of June 30, December 31, Selected Assets by Segment: 2023 2022 Distribution $ 152,199 $ 180,602 Solutions 21,374 21,420 Segment Select Assets 173,573 202,022 Corporate Assets 60,125 29,834 Total Assets $ 233,698 $ 231,856
Summary of disaggregation of revenue according to revenue type	Six months ended Three months ended June 30, 2023 June 30, 2023 Distribution Solutions Total Distribution Solutions Total Geography USA $ 119,387 $ 6,303 $ 125,690 $ 62,644 $ 2,637 $ 65,281 Europe and United Kingdom 22,550 5,089 27,639 7,134 2,589 9,723 Canada 12,741 701 13,442 6,350 378 6,728 Total net sales $ 154,678 $ 12,093 $ 166,771 $ 76,128 $ 5,604 $ 81,732 Timing of Revenue Recognition Transferred at a point in time where the Company is principal (1) $ 136,439 $ 8,869 $ 145,308 $ 67,872 $ 4,036 $ 71,908 Transferred at a point in time where the Company is agent (2) 18,239 3,224 21,463 8,256 1,568 9,824 Total net sales $ 154,678 $ 12,093 $ 166,771 $ 76,128 $ 5,604 $ 81,732 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 (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 2023 2022 USA $ 137,315 $ 137,877 Canada 25,789 27,597 Europe and United Kingdom 70,594 66,382 Total $ 233,698 $ 231,856

Foreign Currency Translation (D

Foreign Currency Translation (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Revenue from external customers
Net sales	$ 81,732	$ 67,863	$ 166,771	$ 139,182
Foreign operations
Revenue from external customers
Net sales	$ 16,500	$ 14,200	$ 41,100	$ 29,900

Acquisition (Details)

Acquisition (Details) - Spinnakar Limited £ in Millions, $ in Millions	Aug. 18, 2022 GBP (£)	Aug. 18, 2022 USD ($)	Jun. 30, 2023 USD ($)
Acquisition of Spinnakar Limited
Aggregate purchase price	£ 9.8	$ 11.8
Contingent earn-out			$ 1.9
Accounts payable and accrued expenses			1.1
Non-current liabilities			$ 0.8

Goodwill and Other Intangible_3

Goodwill and Other Intangible Assets - Summary of goodwill (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2023 USD ($)
Goodwill [Roll Forward]
Beginning Balance	$ 18,963
Translation adjustments	674
Ending Balance	$ 19,637

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, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 22,714		$ 22,714		$ 21,925
Accumulated Amortization	3,291		3,291		2,232
Total	19,423		19,423		19,693
Amortization expense	500	$ 200	1,000	$ 400
Customer and vendor relationships
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	22,228		22,228		21,457
Accumulated Amortization	3,205		3,205		2,165
Total	19,023		19,023		19,292
Trade name
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	486		486		468
Accumulated Amortization	86		86		67
Total	$ 400		$ 400		$ 401
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			8 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, 2023	Dec. 31, 2022
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
2023 (excluding the six months ended June 30, 2023)	$ 969
2024	1,938
2025	1,938
2026	1,938
2027	1,938
Thereafter	10,702
Total	$ 19,423	$ 19,693

Right-of-use Asset and Lease _3

Right-of-use Asset and Lease Liability (Details)	Jun. 30, 2023
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, 2023	Jun. 30, 2022
Right-of-use Asset and Lease Liability
Cash paid for operating lease liabilities	$ 312	$ 314
Right-of-use assets obtained in exchange for new operating lease obligations		$ 63
Weighted-average remaining lease term	3 years 7 months 6 days	4 years 7 months 6 days
Weighted-average discount rate	3.50%	3.40%

Right-of-use Asset and Lease _5

Right-of-use Asset and Lease Liability - Maturities of lease liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Maturities of lease liabilities
2023 (excluding the six months ended June 30, 2023)	$ 315
2024	543
2025	550
2026	548
2027	116
Total	2,072
Less: imputed interest	(514)
Total lease liabilities	1,558
Lease liability, current portion	471	$ 521
Lease liability, net of current portion	$ 1,087	$ 1,296

Balance Sheet Detail (Details)

Balance Sheet Detail (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Balance Sheet Detail (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Equipment and leasehold improvements
Equipment and leasehold improvements, gross	$ 9,620		$ 9,620		$ 7,565
Less accumulated depreciation and amortization	(3,358)		(3,358)		(4,050)
Equipment and leasehold improvements, net	6,262		6,262		3,515
Depreciation and amortization expense	100	$ 200	300	$ 300
Equipment
Equipment and leasehold improvements
Equipment and leasehold improvements, gross	2,181		2,181		2,720
Capitalized software
Equipment and leasehold improvements
Equipment and leasehold improvements, gross	5,064		5,064		2,997
Leasehold improvements
Equipment and leasehold improvements
Equipment and leasehold improvements, gross	$ 2,375		$ 2,375		$ 1,848

Balance Sheet Detail - Accounts

Balance Sheet Detail - Accounts receivable - long term, net (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Dec. 31, 2022
Undiscounted cash flows June 30, 2024	$ 900
Undiscounted cash flows June 30, 2025	500
Undiscounted cash flows June 30, 2026	400
Undiscounted cash flows June 30, 2027	400
Accounts receivable - long term
Total amount due from customer	2,145	$ 5,213
Less: unamortized discount	(32)	(188)
Less: current portion included in accounts receivable	(854)	(1,911)
Total of accounts receivable, long term, net	$ 1,259	$ 3,114
Minimum
Payment Extension Term to Customers	12 months
Maximum
Payment Extension Term to Customers	24 months

Balance Sheet Detail - Accoun_2

Balance Sheet Detail - Accounts payable and accrued expenses (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Accounts payable and accrued expenses
Trade accounts payable	$ 146,516	$ 151,180
Accrued expenses	10,955	9,470
Accounts payable and accrued expenses	$ 157,471	$ 160,650

Credit Facility (Details)

Credit Facility (Details) - USD ($) $ in Millions		6 Months Ended
Credit Facility (Details) - USD ($) $ in Millions	Apr. 08, 2022	Jun. 30, 2023	May 18, 2023	Dec. 31, 2022
Credit Facility
Interest rate	3.73%
Debt Instrument, Face Amount	$ 2.1
Debt Instrument, Term	48 months
Long-term Debt		$ 1.6		$ 1.8
Credit Facility
Credit Facility
Maximum borrowing capacity			$ 50
Maximum additional borrowing capacity			20
Borrowings outstanding		$ 0		$ 0
Credit Facility \| Minimum
Credit Facility
Letters of credit and swingline loans outstanding			2.5
Credit Facility \| Minimum \| Alternate Base Rate
Credit Facility
Interest rate margin (as a percent)		0.50%
Credit Facility \| Minimum \| Risk Free Rate
Credit Facility
Interest rate margin (as a percent)		1.50%
Credit Facility \| Maximum
Credit Facility
Letters of credit and swingline loans outstanding			$ 5
Credit Facility \| Maximum \| Alternate Base Rate
Credit Facility
Interest rate margin (as a percent)		0.75%
Credit Facility \| Maximum \| Risk Free Rate
Credit Facility
Interest rate margin (as a percent)		1.75%

Credit Facility - Future Princi

Credit Facility - Future Principal Payments Under Term Loan (Details) - Term Loans	Jun. 30, 2023 USD ($)
Principal Payments Under The Term Loan
2023 (excluding the six months ended June 30, 2023)	$ 307
2024	542
2025	562
2026	143
Total	$ 1,554

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, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022
Numerator:
Net income	$ 1,381	$ 3,324	$ 2,791	$ 2,712	$ 4,705	$ 5,503
Less distributed and undistributed income allocated to participating securities	25		73		108	143
Net income attributable to common shareholders	$ 1,356		$ 2,718		$ 4,597	$ 5,360
Denominator:
Weighted average common shares (Basic)	4,396		4,321		4,381	4,315
Weighted average common shares including assumed conversions (Diluted)	4,396		4,321		4,381	4,315
Basic net income per share	$ 0.31		$ 0.63		$ 1.05	$ 1.24
Diluted net income per share	$ 0.31		$ 0.63		$ 1.05	$ 1.24

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, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Purchases \| Vendor concentration risk \| One major vendor
Significant Customers and Vendors
Percentage of concentration risk	12%	16%	17%	19%
Net sales \| Customer one \| Customer concentration risk
Significant Customers and Vendors
Percentage of concentration risk	22%	21%	21%	23%
Net sales \| Customer two \| Customer concentration risk
Significant Customers and Vendors
Percentage of concentration risk	14%	20%	14%	18%
Net accounts receivable \| Customer one \| Customer concentration risk
Significant Customers and Vendors
Percentage of concentration risk			19%		16%
Net accounts receivable \| Customer two \| Customer concentration risk
Significant Customers and Vendors
Percentage of concentration risk			12%		18%

Stockholders' Equity and Stoc_3

Stockholders' Equity and Stock Based Compensation - Plans and options (Details) - $ / shares	Jun. 30, 2023	Dec. 31, 2022	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)	257,805
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

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, 2023 USD ($) $ / shares shares	Jun. 30, 2022 USD ($)	Jun. 30, 2023 USD ($) item $ / shares shares	Jun. 30, 2022 USD ($) item shares
Weighted Average Grant Date Fair Value
Share-based compensation expense \| $	$ 2.2	$ 0.3	$ 2.7	$ 0.7
Restricted stock
Shares
Nonvested shares at the beginning of the period			121,059
Granted (in shares)			115,789	50,749
Vested (in shares)			(71,478)
Forfeited (in shares)				(4,056)
Nonvested shares at the end of the period	165,370		165,370
Number of equal quarterly installments for vesting of awards \| item			16	16
Number of equal installments for vesting of awards \| item			3
Weighted Average Grant Date Fair Value
Nonvested shares at the beginning of period (in dollars per share) \| $ / shares			$ 24.83
Granted (in dollars per share) \| $ / shares			45.81
Vested (in dollars per share) \| $ / shares			37.98
Nonvested shares at the end of period (in dollars per share) \| $ / shares	$ 33.83		$ 33.83
Unrecognized compensation cost (in dollars) \| $	$ 5.1		$ 5.1
Weighted average period for recognition of unrecognized compensation cost			1 year 10 months 24 days

Segment Information (Details)

Segment Information (Details) $ in Thousands	3 Months Ended		6 Months Ended
Segment Information (Details) $ in Thousands	Jun. 30, 2023 USD ($)	Jun. 30, 2022 USD ($)	Jun. 30, 2023 USD ($) item	Jun. 30, 2022 USD ($)
Segment reporting information
Number of reportable operating segments \| item			2
Revenue	$ 81,732	$ 67,863	$ 166,771	$ 139,182
Gross profit	13,693	12,486	28,901	24,466
Direct Costs	6,327	4,597	12,594	9,399
Segment Income Before Taxes	7,366	7,889	16,307	15,067
General and administrative	5,249	3,337	9,243	6,784
Amortization and depreciation expense	604	445	1,317	802
Interest, net	330	(7)	441	(17)
Foreign currency transaction gain (loss)	(4)	(442)	40	(298)
Income before provision for income taxes	1,839	3,658	6,228	7,166
Distribution
Segment reporting information
Revenue	76,128	62,992	154,678	128,775
Gross profit	11,074	10,259	23,801	19,852
Direct Costs	5,010	3,587	9,976	7,251
Segment Income Before Taxes	6,064	6,672	13,825	12,601
Solutions
Segment reporting information
Revenue	5,604	4,871	12,093	10,407
Gross profit	2,619	2,227	5,100	4,614
Direct Costs	1,317	1,010	2,618	2,148
Segment Income Before Taxes	$ 1,302	$ 1,217	$ 2,482	$ 2,466

Segment Information - Selected

Segment Information - Selected Assets by Segment (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Segment Reporting Information [Line Items]
Total Assets	$ 233,698	$ 231,856
Segment Total
Segment Reporting Information [Line Items]
Total Assets	173,573	202,022
Corporate Assets
Segment Reporting Information [Line Items]
Total Assets	60,125	29,834
Distribution \| Segment Total
Segment Reporting Information [Line Items]
Total Assets	152,199	180,602
Solutions \| Segment Total
Segment Reporting Information [Line Items]
Total Assets	$ 21,374	$ 21,420

Segment Information - Disaggreg

Segment Information - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Disaggregation of Revenue [Line Items]
Net sales	$ 81,732	$ 67,863	$ 166,771	$ 139,182
Distribution
Disaggregation of Revenue [Line Items]
Net sales	76,128	62,992	154,678	128,775
Solutions
Disaggregation of Revenue [Line Items]
Net sales	5,604	4,871	12,093	10,407
USA
Disaggregation of Revenue [Line Items]
Net sales	65,281	53,698	125,690	109,326
USA \| Distribution
Disaggregation of Revenue [Line Items]
Net sales	62,644	51,407	119,387	104,523
USA \| Solutions
Disaggregation of Revenue [Line Items]
Net sales	2,637	2,291	6,303	4,803
Europe and United Kingdom
Disaggregation of Revenue [Line Items]
Net sales	9,723	8,065	27,639	18,058
Europe and United Kingdom \| Distribution
Disaggregation of Revenue [Line Items]
Net sales	7,134	5,883	22,550	13,319
Europe and United Kingdom \| Solutions
Disaggregation of Revenue [Line Items]
Net sales	2,589	2,182	5,089	4,739
Canada
Disaggregation of Revenue [Line Items]
Net sales	6,728	6,100	13,442	11,798
Canada \| Distribution
Disaggregation of Revenue [Line Items]
Net sales	6,350	5,702	12,741	10,933
Canada \| Solutions
Disaggregation of Revenue [Line Items]
Net sales	378	398	701	865
Company As Principal \| Transferred at Point in Time
Disaggregation of Revenue [Line Items]
Net sales	71,908	58,880	145,308	122,030
Company As Principal \| Distribution \| Transferred at Point in Time
Disaggregation of Revenue [Line Items]
Net sales	67,872	55,797	136,439	114,937
Company As Principal \| Solutions \| Transferred at Point in Time
Disaggregation of Revenue [Line Items]
Net sales	4,036	3,083	8,869	7,093
Company As Agent \| Transferred at Point in Time
Disaggregation of Revenue [Line Items]
Net sales	9,824	8,983	21,463	17,152
Company As Agent \| Distribution \| Transferred at Point in Time
Disaggregation of Revenue [Line Items]
Net sales	8,256	7,195	18,239	13,838
Company As Agent \| Solutions \| Transferred at Point in Time
Disaggregation of Revenue [Line Items]
Net sales	$ 1,568	$ 1,788	$ 3,224	$ 3,314

Segment Information - Assets (D

Segment Information - Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Net sales to unaffiliated customers and identifiable assets by geographic areas
Identifiable Assets by Geographic Areas	$ 233,698	$ 231,856
USA
Net sales to unaffiliated customers and identifiable assets by geographic areas
Identifiable Assets by Geographic Areas	137,315	137,877
Canada
Net sales to unaffiliated customers and identifiable assets by geographic areas
Identifiable Assets by Geographic Areas	25,789	27,597
Europe and United Kingdom
Net sales to unaffiliated customers and identifiable assets by geographic areas
Identifiable Assets by Geographic Areas	$ 70,594	$ 66,382

Related Party Transactions (Det

Related Party Transactions (Detail) - Family member of executive - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Sales to related party	$ 0.5	$ 0.7	$ 1	$ 1
Due from related party	$ 0.5		$ 0.5		$ 0.1