Climb Global Solutions (CLMB) 10-Q2 May 242024 Q1 Quarterly reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Mar. 31, 2024	May 02, 2024
Document and Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Mar. 31, 2024
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		4,585,131
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q1

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Current assets:
Cash and cash equivalents	$ 43,572	$ 36,295
Accounts receivable, net of allowance for doubtful accounts of $744 and $709, respectively	180,587	222,269
Inventory, net	1,865	3,741
Prepaid expenses and other current assets	6,619	6,755
Total current assets	232,643	269,060
Equipment and leasehold improvements, net	9,890	8,850
Goodwill	26,906	27,182
Other intangibles, net	25,920	26,930
Right-of-use assets, net	848	878
Accounts receivable, net of current portion	752	797
Other assets	974	1,077
Deferred income tax assets	389	324
Total assets	298,322	335,098
Current liabilities:
Accounts payable and accrued expenses	213,221	249,648
Lease liability, current portion	495	450
Term loan, current portion	545	540
Total current liabilities	214,261	250,638
Lease liability, net of current portion	771	879
Deferred income tax liabilities	5,492	5,554
Term loan, net of current portion	614	752
Other non-current liabilities	735	2,505
Total liabilities	221,873	260,328
Commitments and contingencies
Stockholders' equity:
Common stock, $.01 par value; 10,000,000 shares authorized; 5,284,500 shares issued: 4,585,131 and 4,573,448 shares outstanding, respectively	53	53
Additional paid-in capital	35,170	34,647
Treasury stock, at cost, 699,369 and 711,052 shares, respectively	(12,724)	(12,623)
Retained earnings	55,190	53,215
Accumulated other comprehensive loss	(1,240)	(522)
Total stockholders' equity	76,449	74,770
Total liabilities and stockholders' equity	$ 298,322	$ 335,098

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Condensed Consolidated Balance Sheets
Accounts receivable, allowances (in dollars)	$ 744	$ 709
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	4,585,131	4,573,448
Treasury stock, shares	699,369	711,052

Condensed Consolidated Statemen

Condensed Consolidated Statements of Earnings - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Condensed Consolidated Statements of Earnings
Net sales	$ 92,422	$ 85,040
Cost of sales, excluding depreciation and amortization expense	75,402	69,831
Gross profit	17,020	15,209
Selling, general, and administrative expenses	12,523	10,241
Acquisition related costs	123	22
Depreciation and amortization expense	871	713
Income from operations	3,503	4,233
Other income:
Interest, net	203	112
Foreign currency transaction (loss) gain	(85)	44
Income before provision for income taxes	3,621	4,389
Provision for income taxes	890	1,065
Net income	$ 2,731	$ 3,324
Income per common share-Basic	$ 0.60	$ 0.74
Income per common share-Diluted	$ 0.60	$ 0.74
Weighted average common shares outstanding - Basic (in shares)	4,438	4,366
Weighted average common shares outstanding - Diluted (in shares)	4,438	4,366

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Condensed Consolidated Statements of Comprehensive Income (Loss)
Net income	$ 2,731	$ 3,324
Other comprehensive (loss) income:
Foreign currency translation adjustments	(718)	613
Other comprehensive (loss) income	(718)	613
Comprehensive income	$ 2,013	$ 3,937

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, 2022	$ 53	$ 32,715	$ (13,230)	$ 43,904	$ (2,868)	$ 60,574
Balance (in shares) at Dec. 31, 2022	5,284,500		806,068
Increase (Decrease) in Stockholders' Equity
Net income				3,324		3,324
Translation adjustment					613	613
Dividends paid (per common share $0.17)				(749)		(749)
Share-based compensation expense		545				545
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	32,495	$ (12,679)	46,479	(2,255)	64,093
Balance (in shares) at Mar. 31, 2023	5,284,500		767,848
Balance at Dec. 31, 2023	$ 53	34,647	$ (12,623)	53,215	(522)	$ 74,770
Balance (in shares) at Dec. 31, 2023	5,284,500		711,052			5,284,500
Increase (Decrease) in Stockholders' Equity
Net income				2,731		$ 2,731
Translation adjustment					(718)	(718)
Dividends paid (per common share $0.17)				(756)		(756)
Share-based compensation expense		854				854
Restricted stock grants (net of forfeitures)		(331)	$ 331
Restricted stock grants (net of forfeitures) (in shares)			(18,938)
Treasury shares repurchased			$ (432)			(432)
Treasury shares repurchased (in shares)			7,255
Balance at Mar. 31, 2024	$ 53	$ 35,170	$ (12,724)	$ 55,190	$ (1,240)	$ 76,449
Balance (in shares) at Mar. 31, 2024	5,284,500		699,369			5,284,500

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Condensed Consolidated Statements of Stockholders' Equity
Dividends paid per common share (in dollars per share)	$ 0.17	$ 0.17

Condensed Consolidated Statem_5

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Cash flows from operating activities
Net income	$ 2,731	$ 3,324
Adjustments to reconcile net income to net cash and cash equivalents provided by operating activities:
Depreciation and amortization expense	871	716
Provision for doubtful accounts	45	9
Deferred income tax benefit	(77)	241
Share-based compensation expense	822	529
Amortization of discount on accounts receivable	(6)	(11)
Amortization of right-of-use assets	29	101
Changes in operating assets and liabilities:
Accounts receivable	40,435	30,345
Inventory	1,824	703
Prepaid expenses and other current assets	115	(3,696)
Vendor prepayments		890
Accounts payable and accrued expenses	(31,024)	9,994
Lease liability, net	(63)	(133)
Other assets and liabilities	(1,655)	598
Net cash and cash equivalents provided by operating activities	14,047	43,610
Cash flows from investing activities
Purchase of equipment and leasehold improvements	(1,180)	(1,270)
Net cash and cash equivalents used in investing activities	(1,180)	(1,270)
Cash flows from financing activities
Purchase of treasury stock	(432)	(214)
Borrowings under credit facilities		10,000
Repayments of borrowings under credit facilities	(4,229)	(10,000)
Repayments of borrowings under term loan	(133)	(128)
Dividends paid	(756)	(749)
Net cash and cash equivalents used in financing activities	(5,550)	(1,091)
Effect of foreign exchange rate on cash and cash equivalents	(40)	247
Net increase in cash and cash equivalents	7,277	41,496
Cash and cash equivalents at beginning of period	36,295	20,245
Cash and cash equivalents at end of period	43,572	61,741
Supplementary disclosure of cash flow information:
Income taxes paid	272	222
Interest paid	$ 68	$ 22

Basis of Presentation

Basis of Presentation	3 Months Ended
Basis of Presentation	Mar. 31, 2024
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, 2023. 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. Reclassifications Certain reclassifications and immaterial revisions have been made to the prior period financial statements to conform to the current-year presentation.

Recently Issued Accounting Stan

Recently Issued Accounting Standards	3 Months Ended
Recently Issued Accounting Standards	Mar. 31, 2024
Recently Issued Accounting Standards
Recently Issued Accounting Standards	2. Recently Issued Accounting Standards: In November 2023, the FASB issued Accounting Standards Update 2023-07 “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures”. The amendments in this ASU are intended to improve reportable segment disclosure requirements primarily through enhanced disclosures about significant segment expenses. The Company adopted the update in the first quarter of 2024 and it did not have a material effect on our consolidated financial statements.

Foreign Currency Translation

Foreign Currency Translation	3 Months Ended
Foreign Currency Translation	Mar. 31, 2024
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 March 31, 2024 and 2023 were $28.2 million and $24.6 million, respectively.

Comprehensive Income

Comprehensive Income	3 Months Ended
Comprehensive Income	Mar. 31, 2024
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	3 Months Ended
Revenue Recognition	Mar. 31, 2024
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 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	3 Months Ended
Acquisition	Mar. 31, 2024
Acquisition
Acquisition	6. Acquisition: On October 6, 2023, the Company entered into a Share Purchase Agreement and purchased the entire share capital of Data Solutions Holdings Limited (“Data Solutions”) for an aggregate purchase price of approximately €15.0 million (equivalent to $15.9 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 on the estimated fair value of Data Solutions’ 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 consideration includes approximately $2.3 million fair value for potential earn-out consideration if certain targets are achieved, payable in cash. The earn-out liability is included in current liabilities as of March 31, 2024 and December 31, 2023. There were no material changes in fair value since the acquisition date. The fair value earn-out measurement was primarily based on inputs that are not observable, which are categorized as a Level 3 measurement in the fair value hierarchy (See Note 18 – Fair Value Measurements), In connection with the acquisition of Data Solutions on October 6, 2023, the Company acquired an invoice discounting facility (“IDF”) that is with recourse to the Company (See Note 11 – Credit Facilities). The balance outstanding under the IDF at March 31, 2024 was zero compared to $4.3 million at December 31, 2023, which is included in accounts payable and accrued expenses on the Consolidated Balance Sheets.

Goodwill and Other Intangible A

Goodwill and Other Intangible Assets	3 Months Ended
Goodwill and Other Intangible Assets	Mar. 31, 2024
Goodwill and Other Intangible Assets
Goodwill and Other Intangible Assets	7. Goodwill and Other Intangible Assets: Distribution Solutions Consolidated Balance January 1, 2023 $ 10,682 $ 8,281 $ 18,963 Goodwill acquired 7,143 — 7,143 Translation adjustments 833 243 1,076 Balance December 31, 2023 $ 18,658 $ 8,524 $ 27,182 Translation adjustments (207) (69) (276) Balance March 31, 2024 $ 18,451 $ 8,455 $ 26,906 As of March 31, 2024 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer and vendor relationships $ 30,638 5,093 $ 25,545 Trade name 485 110 375 Total $ 31,123 $ 5,203 $ 25,920 As of December 31, 2023 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer and vendor relationships $ 30,968 $ 4,424 $ 26,544 Trade name 489 103 386 Total $ 31,457 $ 4,527 $ 26,930 eight 2024 (excluding the three months ended March 31, 2024) $ 2,096 2025 2,795 2026 2,795 2027 2,795 2028 2,795 Thereafter 12,644 Total $ 25,920

Right-of-use Asset and Lease Li

Right-of-use Asset and Lease Liability	3 Months Ended
Right-of-use Asset and Lease Liability	Mar. 31, 2024
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: Three months ended March 31, 2024 2023 Cash paid for operating lease liabilities $ 160 $ 156 Right-of-use assets obtained in exchange for new operating lease obligations $ 69 $ — Weighted-average remaining lease term 2.9 years 3.9 years Weighted-average discount rate 3.7% 3.5% Maturities of lease liabilities as of March 31, 2024 were as follows: 2024 (excluding the three months ended March 31, 2024) $ 483 2025 553 2026 548 2027 111 1,695 Less: imputed interest (429) Total lease liabilities $ 1,266 Lease liabilities, current portion 495 Lease liabilities, net of current portion 771 Total lease liabilities $ 1,266

Fair Value

Fair Value	3 Months Ended
Fair Value	Mar. 31, 2024
Fair Value
Fair Value	9. Fair Value: The carrying amounts of financial instruments, including cash and cash equivalents, short-term accounts receivable, accounts payable and term loan approximated fair value at March 31, 2024 and December 31, 2023 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	3 Months Ended
Balance Sheet Detail	Mar. 31, 2024
Balance Sheet Detail
Balance Sheet Detail	10. Balance Sheet Detail: March 31, December 31, 2024 2023 Equipment $ 3,277 $ 3,195 Capitalized software 7,987 6,890 Buildings 694 709 Leasehold improvements 2,377 2,385 14,335 13,179 Less accumulated depreciation and amortization (4,445) (4,329) $ 9,890 $ 8,850 During the three months ended March 31, 2024 and 2023, the Company recorded depreciation and amortization expense of $0.9 million and $0.7 million, respectively. March 31, December 31, 2024 2023 Total amount due from customer $ 1,623 $ 1,637 Less: unamortized discount (6) (12) Less: current portion included in accounts receivable (865) (828) $ 752 $ 797 The undiscounted cash flows to be received by the Company relating to these accounts receivable long-term is expected to be $0.8 million, $0.4 million, $0.4 million during each of the 12-month periods ending March 31, 2025, 2026, and 2027, respectively. March 31, December 31, 2024 2023 Trade accounts payable $ 189,732 $ 218,717 Accrued expenses 17,823 22,903 Other accounts payable and accrued expenses 5,666 8,028 $ 213,221 $ 249,648

Credit Facility

Credit Facility	3 Months Ended
Credit Facility	Mar. 31, 2024
Debt Disclosure
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 March 31, 2024. 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, on May 18, 2023, the Company voluntarily terminated its existing revolving credit agreement, dated November 15, 2017 with Citibank N.A. (“Previous Credit Facility”). As of the date of termination, the Company had 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 was 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 March 31, 2024 and December 31, 2023, the Company had $1.2 million and $1.3 million outstanding under the Term Loan, respectively. At March 31, 2024, future principal payments under the Term Loan are as follows: 2024 (excluding the three months ended March 31, 2024) 453 2025 562 2026 144 Total $ 1,159 In connection with the acquisition of Data Solutions (See Note 6– Acquisition), the Company acquired an IDF that is with recourse to the Company. Data Solutions had previously entered into the IDF with AIB Commercial Finance Limited (“AIB”) pursuant to a Debt Purchase Agreement. The proceeds from the IDF will be used for working capital needs of Data Solutions. Borrowings under the IDF are based on accounts receivable up to 80% of the outstanding accounts receivable balance. The discount rate under the IDF is equal to 2.5% above AIB’s applicable lending rates that vary based on the currency of the accounts receivable. At March 31, 2024 and December 31, 2023, the outstanding balance under the IDF at was zero and $4.3 million, respectively, which is included in accounts payable and accrued expenses on the Consolidated Balance Sheet.

Earnings Per Share

Earnings Per Share	3 Months Ended
Earnings Per Share	Mar. 31, 2024
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: Three months ended March 31, 2024 2023 Numerator: Net income $ 2,731 $ 3,324 Less distributed and undistributed income allocated to participating securities 63 83 Net income attributable to common shareholders 2,668 3,241 Denominator: Weighted average common shares (Basic) 4,438 4,366 Weighted average common shares including assumed conversions (Diluted) 4,438 4,366 Basic net income per share $ 0.60 $ 0.74 Diluted net income per share $ 0.60 $ 0.74

Major Customers and Vendors

Major Customers and Vendors	3 Months Ended
Major Customers and Vendors	Mar. 31, 2024
Major Customers and Vendors
Major Customers and Vendors	13. Major Customers and Vendors: The Company had two major vendors that accounted for 16% and 10% of total purchases during the three months ended March 31, 2024, and 21% and 10%, respectively, of total purchases during the three months ended March 31, 2023. The Company had two major customers that accounted for 20% and 15%, respectively, of its net sales during the three months ended March 31, 2024, and 19% and 14%, respectively, of its net sales during the three months ended March 31, 2023. These same customers accounted for 16% and 6%, respectively, of total net accounts receivable as of March 31, 2024, and 15% and 6%, respectively, of total net accounts receivable as of December 31, 2023.

Income Taxes

Income Taxes	3 Months Ended
Income Taxes	Mar. 31, 2024
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	3 Months Ended
Stockholders' Equity and Stock Based Compensation	Mar. 31, 2024
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 March 31, 2024, the number of shares of Common Stock available for future award grants to employees, officers and directors under the 2021 Plan is 222,130. The 2012 Stock-Based Compensation Plan (the “2012 Plan”) authorized 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 March 31, 2024, the number of shares of Common Stock available under the 2012 Plan was zero. During the three months ended March 31, 2024, the Company granted a total of 18,938 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 three months ended March 31, 2023, the Company granted a total of 43,824 shares of Restricted Stock to officers. These shares of Restricted Stock vest over time in sixteen equal quarterly installments. A summary of nonvested shares of Restricted Stock awards outstanding under the 2012 and 2021 Plans as of March 31, 2024, and changes during the three months then ended is as follows: Weighted Average Grant Date Shares Fair Value Nonvested shares at January 1, 2024 143,294 $ 36.48 Granted in 2024 18,938 60.19 Vested in 2024 (20,559) 34.16 Forfeited in 2024 — — Nonvested shares at March 31, 2024 141,673 $ 39.98 As of March 31, 2024, there is approximately $4.9 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 1.7 years. During the three months ended March 31, 2024 and 2023, the Company recognized share-based compensation expense of $0.8 million and $0.5 million, respectively.

Segment Information

Segment Information	3 Months Ended
Segment Information	Mar. 31, 2024
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 Chief Executive Officer, who has been identified as the Company’s CODM, primarily uses operating income as the measure of profit or loss to assess segment performance and allocate resources. Operating income represents net sales less costs of sales, excluding depreciation and amortization expense and operating expenses. Net sales and cost of sales, excluding depreciation and amortization expense are directly attributed to each segment. The majority of operating expenses are also directly attributed to each segment, while certain other operating expenses are allocated to the segments in a reasonable manner considering the specific facts and circumstances of the expenses being allocated. 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 provider of cloud solutions 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, inventory, goodwill and intangible assets 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: Three months ended March 31, 2024 2023 Net Sales: Distribution $ 86,822 $ 78,550 Solutions 5,600 6,490 92,422 85,040 Gross Profit: Distribution $ 14,215 $ 12,728 Solutions 2,805 2,481 17,020 15,209 Direct Costs: Distribution $ 7,376 $ 4,777 Solutions 1,381 1,301 8,757 6,078 Segment Income Before Taxes: (1) Distribution $ 6,839 $ 7,951 Solutions 1,424 1,180 Segment Income Before Taxes 8,263 9,131 General and administrative $ 3,766 $ 4,163 Acquisition related costs 123 22 Depreciation and amortization expense 871 713 Interest, net 203 112 Foreign currency transaction loss (85) 44 Income before taxes $ 3,621 $ 4,389 (1) Excludes general corporate expenses including interest and foreign currency transaction loss As of As of March 31, December 31, Selected Assets by Segment: 2024 2023 Distribution $ 196,893 $ 242,927 Solutions 39,137 37,992 Segment Select Assets 236,030 280,919 Corporate Assets 62,292 54,179 Total Assets $ 298,322 $ 335,098 Geographic areas and net sales mix related to operations for the three months ended March 31, 2024 and 2023 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. Three months ended March 31, 2024 Distribution Solutions Total Geography USA $ 62,364 $ 1,908 $ 64,272 Europe and United Kingdom 18,285 3,406 21,691 Canada 6,173 286 6,459 Total net sales $ 86,822 $ 5,600 $ 92,422 Timing of Revenue Recognition Transferred at a point in time where the Company is principal (1) $ 75,733 $ 3,558 $ 79,291 Transferred at a point in time where the Company is agent (2) 11,089 2,042 13,131 Total net sales $ 86,822 $ 5,600 $ 92,422 Three months ended March 31, 2023 Distribution Solutions Total Geography USA $ 56,743 $ 3,666 $ 60,409 Europe and United Kingdom 15,416 2,501 17,917 Canada 6,391 323 6,714 Total net sales $ 78,550 $ 6,490 $ 85,040 Timing of Revenue Recognition Transferred at a point in time where the Company is principal (1) $ 68,568 $ 4,833 $ 73,401 Transferred at a point in time where the Company is agent (2) 9,982 1,657 11,639 Total net sales $ 78,550 $ 6,490 $ 85,040 (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 March 31, 2024 and December 31, 2023 were as follows. March 31, December 31, Identifiable Assets by Geographic Areas 2024 2023 USA $ 143,693 $ 171,080 Canada 30,151 23,994 Europe and United Kingdom 124,478 140,024 Total $ 298,322 $ 335,098

Related Party Transactions

Related Party Transactions	3 Months Ended
Related Party Transactions	Mar. 31, 2024
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 March 31, 2024 and 2023, net sales to this customer totaled approximately $0.7 million and $0.5 million, respectively. Amounts due from this customer as of March 31, 2024 and December 31, 2023 were approximately $0.5 million and less than $0.1 million, respectively, which were or are expected to be settled in cash subsequent to each period end.

Fair Value Measurement

Fair Value Measurement	3 Months Ended
Fair Value Measurement	Mar. 31, 2024
Fair Value
Fair Value Measurement	18. Fair Value Measurements Fair value is defined under US GAAP as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A fair value hierarchy has been established for valuation inputs to prioritize the inputs into three levels based on the extent to which inputs used in measuring fair value are observable in the market. Each fair value measurement is reported in one of the three levels which is determined by the lowest level input that is significant to the fair value measurement in its entirety. These levels are: Level 1 – observable inputs such as quoted prices for identical instruments traded in active markets. Level 2 – inputs are based on quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 – inputs are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. The fair values are therefore determined using model-based techniques that include option pricing models, discounted cash flow models and similar techniques. The Company’s assets and liabilities that are measured at fair value on a recurring basis, by level, within the fair value hierarchy as of March 31, 2024 and December 31, 2023, respectively, are as follows: As of March 31, 2024 Level 1 Level 2 Level 3 Total Assets: Treasury bills $ 5,160 $ — $ — $ 5,160 Total assets $ 5,160 $ — $ — $ 5,160 Liabilities: Contingent earn-out $ — $ — $ 4,122 $ 4,122 Total liabilities $ — $ — $ 4,122 $ 4,122 As of December 31, 2023 Assets: Treasury bills $ 5,096 $ — $ — $ 5,096 Total assets $ 5,096 $ — $ — $ 5,096 Liabilities: Contingent earn-out $ — $ — $ 4,189 $ 4,189 Total liabilities $ — $ — $ 4,189 $ 4,189 In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. Observable or market inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s assumptions based on the best information available. The approach to estimating the contingent earn-out associated with the Company’s business combinations uses unobservable factors such as projected cash flows over the term of the contingent earn-out periods. The Company’s investment in treasury bills are measured at fair value on a recurring basis based on quoted market prices in active markets and are classified as level 1 within the fair value hierarchy. The Company’s contingent earn-out liability is measured at fair value on a recurring basis and is classified as level 3 within the fair value hierarchy. During the fourth quarter of each year, the Company evaluates goodwill for impairment at the reporting unit level. The Company uses qualitative factors to determine whether it is “more likely than not” that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform a goodwill impairment test. This measurement is classified based on level 3 input. The following table presents the changes in the Company’s level 3 financial instruments measured at fair value on a recurring basis: Balance January 1, 2023 $ 1,777 Data Solutions acquisition - contingent earn-out 2,227 Translation adjustments 185 Balance December 31, 2023 $ 4,189 Translation adjustments (67) Balance March 31, 2024 $ 4,122 There were no material changes in fair value since the respective acquisition dates associated with the contingent earn-outs.

Recently Issued Accounting St_2

Recently Issued Accounting Standards (Policies)	3 Months Ended
Recently Issued Accounting Standards (Policies)	Mar. 31, 2024
Recently Issued Accounting Standards
Recently Issued Accounting Standards	In November 2023, the FASB issued Accounting Standards Update 2023-07 “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures”. The amendments in this ASU are intended to improve reportable segment disclosure requirements primarily through enhanced disclosures about significant segment expenses. The Company adopted the update in the first quarter of 2024 and it did not have a material effect on our consolidated financial statements.

Goodwill and Other Intangible_2

Goodwill and Other Intangible Assets (Tables)	3 Months Ended
Goodwill and Other Intangible Assets (Tables)	Mar. 31, 2024
Goodwill and Other Intangible Assets
Summary of goodwill	Distribution Solutions Consolidated Balance January 1, 2023 $ 10,682 $ 8,281 $ 18,963 Goodwill acquired 7,143 — 7,143 Translation adjustments 833 243 1,076 Balance December 31, 2023 $ 18,658 $ 8,524 $ 27,182 Translation adjustments (207) (69) (276) Balance March 31, 2024 $ 18,451 $ 8,455 $ 26,906
Summary of other intangibles, net	As of March 31, 2024 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer and vendor relationships $ 30,638 5,093 $ 25,545 Trade name 485 110 375 Total $ 31,123 $ 5,203 $ 25,920 As of December 31, 2023 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer and vendor relationships $ 30,968 $ 4,424 $ 26,544 Trade name 489 103 386 Total $ 31,457 $ 4,527 $ 26,930
Schedule of estimated future amortization expense of other intangible assets	2024 (excluding the three months ended March 31, 2024) $ 2,096 2025 2,795 2026 2,795 2027 2,795 2028 2,795 Thereafter 12,644 Total $ 25,920

Right-of-use Asset and Lease _2

Right-of-use Asset and Lease Liability (Tables)	3 Months Ended
Right-of-use Asset and Lease Liability (Tables)	Mar. 31, 2024
Right-of-use Asset and Lease Liability
Schedule of information relating to right-of-use assets and related lease liabilities	Three months ended March 31, 2024 2023 Cash paid for operating lease liabilities $ 160 $ 156 Right-of-use assets obtained in exchange for new operating lease obligations $ 69 $ — Weighted-average remaining lease term 2.9 years 3.9 years Weighted-average discount rate 3.7% 3.5%
Schedule of maturities of lease liabilities	2024 (excluding the three months ended March 31, 2024) $ 483 2025 553 2026 548 2027 111 1,695 Less: imputed interest (429) Total lease liabilities $ 1,266 Lease liabilities, current portion 495 Lease liabilities, net of current portion 771 Total lease liabilities $ 1,266

Balance Sheet Detail (Tables)

Balance Sheet Detail (Tables)	3 Months Ended
Balance Sheet Detail (Tables)	Mar. 31, 2024
Balance Sheet Detail
Schedule of equipment and leasehold improvements	March 31, December 31, 2024 2023 Equipment $ 3,277 $ 3,195 Capitalized software 7,987 6,890 Buildings 694 709 Leasehold improvements 2,377 2,385 14,335 13,179 Less accumulated depreciation and amortization (4,445) (4,329) $ 9,890 $ 8,850
Schedule of accounts receivable - long term, net	March 31, December 31, 2024 2023 Total amount due from customer $ 1,623 $ 1,637 Less: unamortized discount (6) (12) Less: current portion included in accounts receivable (865) (828) $ 752 $ 797
Schedule of accounts payable and accrued expenses	March 31, December 31, 2024 2023 Trade accounts payable $ 189,732 $ 218,717 Accrued expenses 17,823 22,903 Other accounts payable and accrued expenses 5,666 8,028 $ 213,221 $ 249,648

Credit Facility (Tables)

Credit Facility (Tables)	3 Months Ended
Credit Facility (Tables)	Mar. 31, 2024
Debt Disclosure
Schedule of future principal payments under the term loan	2024 (excluding the three months ended March 31, 2024) 453 2025 562 2026 144 Total $ 1,159

Earnings Per Share (Tables)

Earnings Per Share (Tables)	3 Months Ended
Earnings Per Share (Tables)	Mar. 31, 2024
Earnings Per Share
Schedule of reconciliation of the numerators and denominators of the basic and diluted per share computations	Three months ended March 31, 2024 2023 Numerator: Net income $ 2,731 $ 3,324 Less distributed and undistributed income allocated to participating securities 63 83 Net income attributable to common shareholders 2,668 3,241 Denominator: Weighted average common shares (Basic) 4,438 4,366 Weighted average common shares including assumed conversions (Diluted) 4,438 4,366 Basic net income per share $ 0.60 $ 0.74 Diluted net income per share $ 0.60 $ 0.74

Stockholders' Equity and Stoc_2

Stockholders' Equity and Stock Based Compensation (Tables)	3 Months Ended
Stockholders' Equity and Stock Based Compensation (Tables)	Mar. 31, 2024
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, 2024 143,294 $ 36.48 Granted in 2024 18,938 60.19 Vested in 2024 (20,559) 34.16 Forfeited in 2024 — — Nonvested shares at March 31, 2024 141,673 $ 39.98

Segment Information (Tables)

Segment Information (Tables)	3 Months Ended
Segment Information (Tables)	Mar. 31, 2024
Segment Information
Schedule of segment reporting information	Three months ended March 31, 2024 2023 Net Sales: Distribution $ 86,822 $ 78,550 Solutions 5,600 6,490 92,422 85,040 Gross Profit: Distribution $ 14,215 $ 12,728 Solutions 2,805 2,481 17,020 15,209 Direct Costs: Distribution $ 7,376 $ 4,777 Solutions 1,381 1,301 8,757 6,078 Segment Income Before Taxes: (1) Distribution $ 6,839 $ 7,951 Solutions 1,424 1,180 Segment Income Before Taxes 8,263 9,131 General and administrative $ 3,766 $ 4,163 Acquisition related costs 123 22 Depreciation and amortization expense 871 713 Interest, net 203 112 Foreign currency transaction loss (85) 44 Income before taxes $ 3,621 $ 4,389 (1) Excludes general corporate expenses including interest and foreign currency transaction loss As of As of March 31, December 31, Selected Assets by Segment: 2024 2023 Distribution $ 196,893 $ 242,927 Solutions 39,137 37,992 Segment Select Assets 236,030 280,919 Corporate Assets 62,292 54,179 Total Assets $ 298,322 $ 335,098
Schedule of disaggregation of revenue by geographic location and timing of recognition	Three months ended March 31, 2024 Distribution Solutions Total Geography USA $ 62,364 $ 1,908 $ 64,272 Europe and United Kingdom 18,285 3,406 21,691 Canada 6,173 286 6,459 Total net sales $ 86,822 $ 5,600 $ 92,422 Timing of Revenue Recognition Transferred at a point in time where the Company is principal (1) $ 75,733 $ 3,558 $ 79,291 Transferred at a point in time where the Company is agent (2) 11,089 2,042 13,131 Total net sales $ 86,822 $ 5,600 $ 92,422 Three months ended March 31, 2023 Distribution Solutions Total Geography USA $ 56,743 $ 3,666 $ 60,409 Europe and United Kingdom 15,416 2,501 17,917 Canada 6,391 323 6,714 Total net sales $ 78,550 $ 6,490 $ 85,040 Timing of Revenue Recognition Transferred at a point in time where the Company is principal (1) $ 68,568 $ 4,833 $ 73,401 Transferred at a point in time where the Company is agent (2) 9,982 1,657 11,639 Total net sales $ 78,550 $ 6,490 $ 85,040 (1) Includes net sales from third-party hardware and software products. (2) Includes net sales from third-party maintenance, software support and services.
Summary of identifiable assets by geographic area	March 31, December 31, Identifiable Assets by Geographic Areas 2024 2023 USA $ 143,693 $ 171,080 Canada 30,151 23,994 Europe and United Kingdom 124,478 140,024 Total $ 298,322 $ 335,098

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
Fair Value Measurements (Tables)	Mar. 31, 2024
Fair Value
Schedule of assets and liabilities that are measured at fair value on a recurring basis	As of March 31, 2024 Level 1 Level 2 Level 3 Total Assets: Treasury bills $ 5,160 $ — $ — $ 5,160 Total assets $ 5,160 $ — $ — $ 5,160 Liabilities: Contingent earn-out $ — $ — $ 4,122 $ 4,122 Total liabilities $ — $ — $ 4,122 $ 4,122 As of December 31, 2023 Assets: Treasury bills $ 5,096 $ — $ — $ 5,096 Total assets $ 5,096 $ — $ — $ 5,096 Liabilities: Contingent earn-out $ — $ — $ 4,189 $ 4,189 Total liabilities $ — $ — $ 4,189 $ 4,189
Schedule of changes in the company's level 3 financial instruments measured at fair value on a recurring basis	Balance January 1, 2023 $ 1,777 Data Solutions acquisition - contingent earn-out 2,227 Translation adjustments 185 Balance December 31, 2023 $ 4,189 Translation adjustments (67) Balance March 31, 2024 $ 4,122

Foreign Currency Translation (D

Foreign Currency Translation (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Revenue from external customers
Net sales	$ 92,422	$ 85,040
Foreign operations
Revenue from external customers
Net sales	$ 28,200	$ 24,600

Acquisition - Narrative (Detail

Acquisition - Narrative (Details) £ in Millions			3 Months Ended
Acquisition - Narrative (Details) £ in Millions	Oct. 06, 2023 USD ($)	Oct. 06, 2023 GBP (£)	Mar. 31, 2024 USD ($)	Mar. 31, 2023 USD ($)	Dec. 31, 2023 USD ($)
Acquisition details
Acquisition related costs			$ 123,000	$ 22,000
Invoice Discounting Facility
Acquisition details
Invoice discounting facility acquired			0		$ 4,300,000
Data Solutions Holdings Limited
Acquisition details
Aggregate purchase price	$ 15,900,000	£ 15
Contingent earn-out, current	2,300,000
Undiscounted payment of the earn-out, minimum	0
Undiscounted payment of the earn-out, maximum	$ 3,900,000
Data Solutions Holdings Limited \| Invoice Discounting Facility
Acquisition details
Invoice discounting facility acquired			$ 0		$ 4,300,000

Goodwill and Other Intangible_3

Goodwill and Other Intangible Assets - Summary of goodwill (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Goodwill [Roll Forward]
Beginning Balance	$ 27,182	$ 18,963
Goodwill acquired		7,143
Translation adjustments	(276)	1,076
Ending Balance	26,906	27,182
Distribution
Goodwill [Roll Forward]
Beginning Balance	18,658	10,682
Goodwill acquired		7,143
Translation adjustments	(207)	833
Ending Balance	18,451	18,658
Solutions
Goodwill [Roll Forward]
Beginning Balance	8,524	8,281
Translation adjustments	(69)	243
Ending Balance	$ 8,455	$ 8,524

Goodwill and Other Intangible_4

Goodwill and Other Intangible Assets - Other intangibles, net (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 31,123		$ 31,457
Accumulated Amortization	5,203		4,527
Total	25,920		26,930
Amortization expense	700	$ 500
Customer and vendor relationships
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	30,638		30,968
Accumulated Amortization	5,093		4,424
Total	25,545		26,544
Trade name
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	485		489
Accumulated Amortization	110		103
Total	$ 375		$ 386
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	Mar. 31, 2024	Dec. 31, 2023
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
2024 (excluding the three months ended March 31, 2024)	$ 2,096
2025	2,795
2026	2,795
2027	2,795
2028	2,795
Thereafter	12,644
Total	$ 25,920	$ 26,930

Right-of-use Asset and Lease _3

Right-of-use Asset and Lease Liability (Details)	Mar. 31, 2024
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	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Right-of-use Asset and Lease Liability
Cash paid for operating lease liabilities	$ 160	$ 156
Right-of-use assets obtained in exchange for new operating lease obligations	$ 69
Weighted-average remaining lease term	2 years 10 months 24 days	3 years 10 months 24 days
Weighted-average discount rate	3.70%	3.50%

Right-of-use Asset and Lease _5

Right-of-use Asset and Lease Liability - Maturities of lease liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Maturities of lease liabilities
2024 (excluding the three months ended March 31, 2024)	$ 483
2025	553
2026	548
2027	111
Total	1,695
Less: imputed interest	(429)
Total lease liabilities	1,266
Lease liability, current portion	495	$ 450
Lease liability, net of current portion	$ 771	$ 879

Balance Sheet Detail (Details)

Balance Sheet Detail (Details) - USD ($) $ in Thousands	3 Months Ended
Balance Sheet Detail (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Equipment and leasehold improvements
Equipment and leasehold improvements, gross	$ 14,335		$ 13,179
Less accumulated depreciation and amortization	(4,445)		(4,329)
Equipment and leasehold improvements, net	9,890		8,850
Depreciation and amortization expense	871	$ 713
Equipment
Equipment and leasehold improvements
Equipment and leasehold improvements, gross	3,277		3,195
Capitalized software
Equipment and leasehold improvements
Equipment and leasehold improvements, gross	7,987		6,890
Buildings
Equipment and leasehold improvements
Equipment and leasehold improvements, gross	694		709
Leasehold improvements
Equipment and leasehold improvements
Equipment and leasehold improvements, gross	$ 2,377		$ 2,385

Balance Sheet Detail - Accounts

Balance Sheet Detail - Accounts receivable - long term, net (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Undiscounted cash flows, period ending March 31, 2025	$ 800
Undiscounted cash flows, period ending March 31, 2026	400
Undiscounted cash flows, period ending March 31, 2027	400
Accounts receivable - long term
Total amount due from customer	1,623	$ 1,637
Less: unamortized discount	(6)	(12)
Less: current portion included in accounts receivable	(865)	(828)
Total of accounts receivable, long term, net	$ 752	$ 797
Minimum
Payment Extension Term to Customers	12 months
Maximum
Payment Extension Term to Customers	36 months

Balance Sheet Detail - Accoun_2

Balance Sheet Detail - Accounts payable and accrued expenses (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Accounts payable and accrued expenses
Trade accounts payable	$ 189,732	$ 218,717
Accrued expenses	17,823	22,903
Other accounts payable and accrued expenses	5,666	8,028
Accounts payable and accrued expenses	$ 213,221	$ 249,648

Credit Facility (Details)

Credit Facility (Details) $ in Millions		3 Months Ended
Credit Facility (Details) $ in Millions	Apr. 08, 2022 USD ($)	Mar. 31, 2024 USD ($)	Dec. 31, 2023 USD ($)	May 18, 2023 USD ($)
Credit Facility
Interest rate	3.73%
Debt Instrument, Face Amount	$ 2.1
Debt Instrument, Term	48 months
Long-term Debt		$ 1.2	$ 1.3
Credit Agreement
Credit Facility
Maximum borrowing capacity				$ 50
Maximum additional borrowing capacity				20
Borrowings outstanding		$ 0		0
Credit Agreement \| Minimum \| Alternate Base Rate
Credit Facility
Interest rate margin (as a percent)		0.50%
Credit Agreement \| Minimum \| Risk Free Rate
Credit Facility
Interest rate margin (as a percent)		1.50%
Credit Agreement \| Maximum \| Alternate Base Rate
Credit Facility
Interest rate margin (as a percent)		0.75%
Credit Agreement \| Maximum \| Risk Free Rate
Credit Facility
Interest rate margin (as a percent)		1.75%
Letter of Credit [Member] \| Minimum
Credit Facility
Maximum borrowing capacity				2.5
Swingline Loan [Member] \| Maximum
Credit Facility
Maximum borrowing capacity				$ 5
Invoice Discounting Facility
Credit Facility
Interest rate		2.50%
Borrowings as a percent of outstanding accounts receivable		0.80
Invoice discounting facility acquired		$ 0	$ 4.3

Credit Facility - Future Princi

Credit Facility - Future Principal Payments Under Term Loan (Details) - Term Loans $ in Thousands	Mar. 31, 2024 USD ($)
Principal Payments Under The Term Loan
2024 (excluding the three months ended March 31, 2024)	$ 453
2025	562
2026	144
Total	$ 1,159

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Numerator:
Net income	$ 2,731	$ 3,324
Less distributed and undistributed income allocated to participating securities	63	83
Net income attributable to common shareholders	$ 2,668	$ 3,241
Denominator:
Weighted average common shares (Basic)	4,438	4,366
Weighted average common shares including assumed conversions (Diluted)	4,438	4,366
Basic net income per share	$ 0.60	$ 0.74
Diluted net income per share	$ 0.60	$ 0.74

Major Customers and Vendors (De

Major Customers and Vendors (Details)	3 Months Ended		12 Months Ended
Major Customers and Vendors (Details)	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Purchases \| Vendor concentration risk \| One major vendor
Significant Customers and Vendors
Percentage of concentration risk	16%	21%
Purchases \| Vendor concentration risk \| Two major vendor
Significant Customers and Vendors
Percentage of concentration risk	10%	10%
Net sales \| Customer one \| Customer concentration risk
Significant Customers and Vendors
Percentage of concentration risk	20%	19%
Net sales \| Customer two \| Customer concentration risk
Significant Customers and Vendors
Percentage of concentration risk	15%	14%
Net accounts receivable \| Customer one \| Customer concentration risk
Significant Customers and Vendors
Percentage of concentration risk	16%		15%
Net accounts receivable \| Customer two \| Customer concentration risk
Significant Customers and Vendors
Percentage of concentration risk	6%		6%

Stockholders' Equity and Stoc_3

Stockholders' Equity and Stock Based Compensation - Plans and options (Details) - $ / shares	Mar. 31, 2024	Dec. 31, 2023	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
Shares reserved for future issuance (in shares)	222,130
2012 Plan
Stock-based compensation
Number of shares of common stock initially available for award				1,000,000	600,000
Shares reserved for future issuance (in shares)	0			352,158

Stockholders' Equity and Stoc_4

Stockholders' Equity and Stock Based Compensation - Restricted Stock (Details) $ / shares in Units, $ in Millions	3 Months Ended
	Mar. 31, 2024 USD ($) item $ / shares shares	Mar. 31, 2023 USD ($) item shares
Weighted Average Grant Date Fair Value
Share-based compensation expense \| $	$ 0.8	$ 0.5
Restricted stock
Shares
Nonvested shares at the beginning of the period \| shares	143,294
Granted (in shares) \| shares	18,938	43,824
Vested (in shares) \| shares	(20,559)
Nonvested shares at the end of the period \| shares	141,673
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	$ 36.48
Granted (in dollars per share) \| $ / shares	60.19
Vested (in dollars per share) \| $ / shares	34.16
Nonvested shares at the end of period (in dollars per share) \| $ / shares	$ 39.98
Unrecognized compensation cost (in dollars) \| $	$ 4.9
Weighted average period for recognition of unrecognized compensation cost	1 year 8 months 12 days

Segment Information (Details)

Segment Information (Details) $ in Thousands	3 Months Ended
Segment Information (Details) $ in Thousands	Mar. 31, 2024 USD ($) item	Mar. 31, 2023 USD ($)
Segment Information
Number of reportable operating segments \| item	2
Net sales	$ 92,422	$ 85,040
Gross profit	17,020	15,209
Direct Costs	8,757	6,078
Segment Income Before Taxes	8,263	9,131
General and administrative	3,766	4,163
Acquisition related costs	123	22
Depreciation and amortization expense	871	713
Interest, net	203	112
Foreign currency transaction (loss) gain	(85)	44
Income before provision for income taxes	3,621	4,389
Distribution
Segment Information
Net sales	86,822	78,550
Gross profit	14,215	12,728
Direct Costs	7,376	4,777
Segment Income Before Taxes	6,839	7,951
Solutions
Segment Information
Net sales	5,600	6,490
Gross profit	2,805	2,481
Direct Costs	1,381	1,301
Segment Income Before Taxes	$ 1,424	$ 1,180

Segment Information - Selected

Segment Information - Selected Assets by Segment (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Segment Information
Total Assets	$ 298,322	$ 335,098
Segment Total
Segment Information
Total Assets	236,030	280,919
Corporate Assets
Segment Information
Total Assets	62,292	54,179
Distribution \| Segment Total
Segment Information
Total Assets	196,893	242,927
Solutions \| Segment Total
Segment Information
Total Assets	$ 39,137	$ 37,992

Segment Information - Disaggreg

Segment Information - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Disaggregation of Revenue [Line Items]
Net sales	$ 92,422	$ 85,040
Distribution
Disaggregation of Revenue [Line Items]
Net sales	86,822	78,550
Solutions
Disaggregation of Revenue [Line Items]
Net sales	5,600	6,490
USA
Disaggregation of Revenue [Line Items]
Net sales	64,272	60,409
USA \| Distribution
Disaggregation of Revenue [Line Items]
Net sales	62,364	56,743
USA \| Solutions
Disaggregation of Revenue [Line Items]
Net sales	1,908	3,666
Europe and United Kingdom
Disaggregation of Revenue [Line Items]
Net sales	21,691	17,917
Europe and United Kingdom \| Distribution
Disaggregation of Revenue [Line Items]
Net sales	18,285	15,416
Europe and United Kingdom \| Solutions
Disaggregation of Revenue [Line Items]
Net sales	3,406	2,501
Canada
Disaggregation of Revenue [Line Items]
Net sales	6,459	6,714
Canada \| Distribution
Disaggregation of Revenue [Line Items]
Net sales	6,173	6,391
Canada \| Solutions
Disaggregation of Revenue [Line Items]
Net sales	286	323
Company As Principal \| Transferred at Point in Time
Disaggregation of Revenue [Line Items]
Net sales	79,291	73,401
Company As Principal \| Distribution \| Transferred at Point in Time
Disaggregation of Revenue [Line Items]
Net sales	75,733	68,568
Company As Principal \| Solutions \| Transferred at Point in Time
Disaggregation of Revenue [Line Items]
Net sales	3,558	4,833
Company As Agent \| Transferred at Point in Time
Disaggregation of Revenue [Line Items]
Net sales	13,131	11,639
Company As Agent \| Distribution \| Transferred at Point in Time
Disaggregation of Revenue [Line Items]
Net sales	11,089	9,982
Company As Agent \| Solutions \| Transferred at Point in Time
Disaggregation of Revenue [Line Items]
Net sales	$ 2,042	$ 1,657

Segment Information - Assets (D

Segment Information - Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Net sales to unaffiliated customers and identifiable assets by geographic areas
Identifiable Assets by Geographic Areas	$ 298,322	$ 335,098
USA
Net sales to unaffiliated customers and identifiable assets by geographic areas
Identifiable Assets by Geographic Areas	143,693	171,080
Canada
Net sales to unaffiliated customers and identifiable assets by geographic areas
Identifiable Assets by Geographic Areas	30,151	23,994
Europe and United Kingdom
Net sales to unaffiliated customers and identifiable assets by geographic areas
Identifiable Assets by Geographic Areas	$ 124,478	$ 140,024

Related Party Transactions (Det

Related Party Transactions (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Sales to related parties	$ 92,422	$ 85,040
Family member of executive
Sales to related parties	700	$ 500
Due from related party	$ 500
Maximum \| Family member of executive
Due from related party			$ 100

Fair Value Measurements (Detail

Fair Value Measurements (Details) - Recurring member - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Assets:
Total assets	$ 5,160	$ 5,096
Liabilities:
Contingent earn-out	4,122	4,189
Total liabilities	4,122	4,189
Treasury bills
Assets:
Treasury bills	5,160	5,096
Level 1
Assets:
Total assets	5,160	5,096
Level 1 \| Treasury bills
Assets:
Treasury bills	5,160	5,096
Level 3
Liabilities:
Contingent earn-out	4,122	4,189
Total liabilities	$ 4,122	$ 4,189

Fair Value Measurement - Change

Fair Value Measurement - Changes in Financial Instruments (Details) - Level 3 - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Fair Value Measurements
Beginning balance	$ 4,189	$ 1,777
Translation adjustments	(67)	185
Ending balance	$ 4,122	4,189
Data Solutions Holdings Limited
Fair Value Measurements
Acquisition - contingent earn-out		$ 2,227

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Mar. 31, 2024	Mar. 31, 2023
Pay vs Performance Disclosure
Net Income (Loss)	$ 2,731	$ 3,324

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Mar. 31, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false