CLMB Climb Global Solutions Inc

CLIMB GLOBAL SOLUTIONS, INC.

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QUARTERLY REPORT ON FORM 10-Q

FOR THE QUARTERLY PERIOD ENDED September 30, 2024

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Table of Contents

 

		Page
	PART I FINANCIAL INFORMATION
Item 1.	Financial Statements (unaudited)
	Condensed Consolidated Balance Sheets as of September 30, 2024 (unaudited) and December 31, 2023	4
	Condensed Consolidated Statements of Earnings for the three and nine months ended September 30, 2024 and 2023 (unaudited)	5
​	Condensed Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2024 and 2023 (unaudited)	6
​	​	​
	Condensed Consolidated Statements of Stockholders’ Equity for the three and nine months ended September 30, 2024 and 2023 (unaudited)	7
​	Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2024 and 2023 (unaudited)	8
​	​	​
	Notes to Condensed Consolidated Financial Statements (unaudited)	9
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	22
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	34
Item 4.	Controls and Procedures	34
	PART II OTHER INFORMATION
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	35
​	​	​
Item 5.	Other Information	35
Item 6.	Exhibits, Financial Statement Schedules	36
SIGNATURES		37

 

 

Cautionary Note Regarding Forward-Looking Statements

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This Quarterly Report on Form 10-Q (“Quarterly Report”) includes statements of our expectations, intentions, plans and beliefs that constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 (Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)), and are intended to come within the safe harbor protection provided by those sections. The statements, other than statements of historical fact, included in this Quarterly Report are forward-looking statements.  Many of the forward-looking statements contained in this Quarterly Report  may be identified by the use of forward-looking words such as “believes,” “expects,” “intends,” “anticipates,” “plans,” “estimates,” “projects,” “forecasts,” “should,” “could,” “would,” “will,” “confident,” “may,” “can,” “potential,” “possible,” “proposed,” “in process,” “in development,” “opportunity,” “target,” “outlook,” “maintain,” “continue,” “goal,” “aim,” “commit,” or similar expressions or when we discuss our future operating results, priorities, strategy, goals, vision, mission, opportunities, projections, intentions or expectations.  Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. Because these forward-looking statements are subject to risks and uncertainties, actual results could differ materially from those indicated by such forward-looking statements. These risks and uncertainties include, but are not limited to, the continued acceptance of the Company’s distribution channel by vendors and customers, the timely availability and acceptance of new products, product mix, market conditions, competitive pricing pressures, the successful integration of acquisitions, contribution of key vendor relationships and support programs, including vendor rebates and discounts, as well as factors that affect the software industry in general and other factors generally. We strongly urge current and prospective investors to carefully consider the cautionary statements and risk factors contained in this report and our annual report on Form 10-K for the year ended December 31, 2023, filed with the Securities and Exchange Commission (the “SEC”) on March 5, 2024.

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The Company operates in a rapidly changing business, and new risk factors emerge from time to time. Management cannot predict every risk factor, nor can it assess the impact, if any, of all such risk factors on the Company’s business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those projected in any forward-looking statements.

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Accordingly, forward-looking statements should not be relied upon as a prediction of actual results and readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates. Except as may be required by law, the Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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The statements concerning future sales, future gross profit margin and future selling and administrative expenses are forward looking statements involving certain risks and uncertainties such as availability of products, product mix, pricing pressures, market conditions and other factors, which could result in a fluctuation of sales below recent experience.

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Unless otherwise specified, the “Company,” “we,” “us” or “our” refers to Climb Global Solutions, Inc., a Delaware corporation, and its consolidated subsidiaries.

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PART I — FINANCIAL INFORMATION

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Item 1. FINANCIAL STATEMENTS

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Climb Global Solutions, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(Unaudited)

(Amounts in thousands, except share and per share amounts) ​

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

 

Climb Global Solutions, Inc. and Subsidiaries

Condensed Consolidated Statements of Earnings

(Unaudited)

(Amounts in thousands, except per share data)

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

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Climb Global Solutions, Inc. and Subsidiaries

Condensed Consolidated Statements of Comprehensive Income

(Unaudited)

(Amounts in thousands)

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

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Climb Global Solutions, Inc. and Subsidiaries

Condensed Consolidated Statements of Stockholders’ Equity

(Unaudited)

(Amounts in thousands, except share amounts)

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

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Climb Global Solutions, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(Unaudited)

(Amounts in thousands) 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

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Climb Global Solutions, Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements

September 30, 2024

(Unaudited)

(Amounts in tables in thousands, except share and per share amounts)

1.           Basis of Presentation:

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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.

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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.

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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.

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Reclassifications

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Certain reclassifications and immaterial revisions have been made to the prior period financial statements to conform to the current-year presentation.

2.           Recently Issued Accounting Standards:

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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.

3.           Foreign Currency Translation:

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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 September 30, 2024 and 2023 were $37.5 million and $14.0 million, respectively. The net sales from our foreign operations for the nine months ended September 30, 2024 and 2023 were $88.6 million and $55.0 million, respectively.

 

The Company’s foreign currency exposure relates primarily to international transactions where the currency collected from customers can be different from the currency used to purchase the product. In cases where the Company is not able to create a natural hedge by maintaining offsetting asset and liability amounts in the same currency, it may enter into foreign exchange contracts, typically in the form of forward purchase agreements, to facilitate the hedging of foreign currency exposures to mitigate the impact of changes in foreign currency exchange rates. These contracts generally have terms of no more than three months. The Company does not apply hedge accounting to these contracts and therefore the changes in fair value are recorded in earnings. The Company does not enter into foreign exchange contracts for trading purposes and the risk of loss on a foreign exchange contract is the risk of nonperformance by the counterparties, which the Company minimizes by limiting its counterparties to major financial institutions. The Company recognized an unrealized loss of approximately $0.1 million on contracts outstanding as of September 30, 2024, which is included in foreign currency transaction loss in the Consolidated Statements of Earnings.

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4.           Comprehensive Income:

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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.”

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.

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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.

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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.

 

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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.

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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.

6.            Acquisition:

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               Acquisition of Douglas Stewart Software & Services, LLC

 

On  July 31, 2024, Climb Global Solutions DSS, LLC, a wholly-owned subsidiary of the Company, entered into a Membership Interest Purchase Agreement (the “Purchase Agreement”) and purchased the entire share capital of Douglas Stewart Software & Services, LLC ("DSS"), a Florida limited liability company, for an aggregate purchase price of approximately $20.3 million (subject to certain adjustments) plus a potential post-closing earnout payment. DSS distributes software to VARs and campus stores across North America in both the K-12 and higher education markets, furthering the Company's reach into these markets. The Purchase Agreement contains customary representations, warranties, covenants and indemnities. The acquisition was funded utilizing cash from the Company’s balance sheet.

 

The financial position and operating results of DSS is included in the Company’s consolidated financial statements from the date of the acquisition. The Company recorded net revenue for DSS of approximately $6.8 million and net income of approximately $1.0 million during the three and nine months ended September 30, 2024, respectively.

 

The impact of the acquisition’s preliminary purchase price allocations on the Company’s consolidated balance sheet and the acquisition date fair value of the total consideration transferred is depicted in the table below. Due to the timing of the closing of the transaction in the third quarter of 2024, the Company has not yet completed its evaluation and determination of certain assets acquired and liabilities assumed, primarily the final valuation of goodwill and intangible assets; therefore, the final fair value of the assets acquired and liabilities assumed, which will be completed within the measurement period of up to one year from the acquisition date, may vary from the Company’s preliminary estimates:

 

(in thousands)
Prepaid expenses and other current assets		$	773
Inventory			18
Right-of-use asset			291
Other assets			8
Accounts payable and accrued expenses			(384	)
Lease liability, current portion			(88	)
Lease liability, non-current portion			(249	)
Intangibles - Vendor Relationships			20,630
Goodwill			1,398
Net assets		$	22,397

 

 

(in thousands)
Supplementary information:
Cash paid to sellers		$	20,672
Contingent earn-out			1,725
Total purchase consideration		$	22,397

 

Intangible assets are comprised of approximately $20.6 million of vendor relationships with a weighted average amortization period of 11 years, representing the expected period of benefits. Goodwill, which was allocated to the Distribution segment, is the excess of the consideration transferred over the net assets recognized and represents the expected revenue and cost synergies of the combined company and assembled workforce. Goodwill recognized as a result of the acquisition is not deductible for income tax purposes.

 

The Company used the income approach to value the intangible assets, representing acquired vendor relationships. The fair value measurements were primarily based on significant inputs that are not observable, which are categorized as a Level 3 measurement in the fair value hierarchy (See Note 18 – Fair Value Measurements). Inputs used to value these intangible assets include the discount rate, projection of all future cash flows, long-term growth rates, vendor attrition rates and applicable income tax rates. The excess purchase price recorded to goodwill primarily represents the future economic benefits the Company expects to achieve as a result of combining operations and expanding vendor relationships.

 

The purchase consideration included approximately $1.7 million fair value for potential earn-out consideration if certain targets are achieved by September 30, 2025, payable in cash.  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), reflecting its assessment of the assumptions market participants would use to value these liabilities. The undiscounted payment of the earn-out can range from zero up to approximately $4.2 million and achievement is based on the post-acquisition results of DSS.

 

            Acquisition of Data Solutions Holdings Limited

 

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 included approximately $2.3 million fair value for potential earn-out consideration if certain targets are achieved, payable in cash. As of September 30, 2024, the Company reassessed the earn-out liability and increased the fair value of the earn out liability to approximately $3.5 million, with $1.2 million adjustment recognized within change in fair value of acquisition contingent consideration during the three and nine months ended September 30, 2024. The earn-out liability is included in current liabilities as of  September 30, 2024 and December 31, 2023, as payment will be due during the fourth quarter of 2024.

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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 September 30, 2024 was zero, as the Company terminated the IDF during the period, compared to $4.3 million at December 31, 2023, which is included in accounts payable and accrued expenses on the Consolidated Balance Sheets.

 

During the three months ended  September 30, 2024 and 2023, the Company recognized acquisition related costs of $0.6 million and $0.2 million, respectively. During the nine months ended September 30, 2024 and 2023, the Company recognized acquisition related costs of $1.2 million and $0.3 million. These acquisition related costs are reflected in the accompanying consolidated statements of earnings. The costs incurred during the three and nine months ended September 30, 2024 primarily related to the aforementioned DSS acquisition, while the costs incurred during the prior period three and nine months ended September 30, 2023 related to the aforementioned Data Solutions acquisition.

 

Pro Forma Results (unaudited)

 

The following unaudited pro forma financial information summarizes the results of operations for the three and nine months ended September 30, 2024 and 2023 as if the acquisition of DSS and Data Solutions has been completed as of the beginning of the three and nine months ended September 30, 2024 and 2023, respectively. The pro forma results are based upon certain assumptions and estimates, and they give effect to actual operating results prior to the acquisitions and adjustments to reflect income taxes at a rate consistent with the tax rates of the local jurisdictions. As a result, these pro forma results do not necessarily represent results that would have occurred if the acquisitions had taken place on the basis assumed above, nor are they indicative of the results of future combined periods.

 

		Nine months ended								Three months ended
		September 30,								September 30,
		2024				2023				2024				2023
Net sales		$	318,268			$	279,918			$	123,437			$	94,850
Net income		$	13,745			$	11,217			$	6,295			$	4,757

 

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7.            Goodwill and Other Intangible Assets:

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The following table summarizes the changes in the carrying amount of goodwill for the nine months ended September 30, 2024:

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​		Distribution				Solutions				Consolidated
Balance December 31, 2023		$	18,658			$	8,524			$	27,182
Goodwill acquired		$	1,398			$	—				1,398
Translation adjustments			609				439				1,048
Balance September 30, 2024		$	20,665			$	8,963			$	29,628

 

Information related to the Company’s other intangibles, net is as follows:

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​		As of September 30, 2024
​		Gross								Net
		Carrying				Accumulated				Carrying
		Amount				Amortization				Amount
Customer and vendor relationships		$	52,770			$	7,109			$	45,661
Trade name			514				134				380
Total		$	53,284			$	7,243			$	46,041

 

​		As of December 31, 2023
​		Gross								Net
		Carrying				Accumulated				Carrying
		Amount				Amortization				Amount
Customer and vendor relationships		$	30,968			$	4,424			$	26,544
Trade name			489				103				386
Total		$	31,457			$	4,527			$	26,930

 

Customer relationships are amortized over thirteen years. Vendor relationships are amortized between eight and fifteen years. Trade name is amortized over fifteen years.

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During the three months ended September 30, 2024 and 2023, the Company recognized total amortization expense for other intangibles, net of $1.1 million and $0.5 million, respectively. During the nine months ended September 30, 2024 and 2023, the Company recognized total amortization expense for other intangibles, net of $2.5 million and $1.5 million, respectively.

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Estimated future amortization expense of the Company’s other intangibles, net as of September 30, 2024 is as follows:

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2024 (excluding the nine months ended September 30, 2024)		$	1,211
2025			4,845
2026			4,845
2027			4,845
2028			4,845
Thereafter			25,450
Total		$	46,041

 

8.            Right-of-use Asset and Lease Liability:

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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.

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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.

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Information related to the Company’s ROU assets and related lease liabilities were as follows:

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​		Nine months ended
​		September 30,
​		2024				2023
Cash paid for operating lease liabilities		$	500			$	467
Right-of-use assets obtained in exchange for new operating lease obligations		$	360			$	—
Weighted-average remaining lease term (years)			2.6				3.4
Weighted-average discount rate			4.4	%			3.5	%

 

Maturities of lease liabilities as of September 30, 2024 were as follows:

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2024 (excluding the nine months ended September 30, 2024)		$	188
2025			654
2026			650
2027			226
2028		17
​			1,735
Less: imputed interest			(406	)
Total lease liabilities		$	1,329
​		​
Lease liabilities, current portion			533
Lease liabilities, net of current portion			796
Total lease liabilities		$	1,329

 

9.            Fair Value:

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The carrying amounts of financial instruments, including cash and cash equivalents, short-term accounts receivable, accounts payable and term loan approximated fair value at September 30, 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.

10.         Balance Sheet Detail:

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Equipment and leasehold improvements consist of the following:

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​		September 30,				December 31,
​		2024				2023
Equipment		$	3,540			$	3,195
Capitalized software			10,240				6,890
Buildings			717				709
Leasehold improvements			2,433				2,385
​			16,931				13,179
Less accumulated depreciation and amortization			(4,780	)			(4,329	)
​		$	12,151			$	8,850

 

During the three months ended September 30, 2024 and 2023, depreciation and amortization expense remained consistent at $0.1 million, respectively. During the nine months ended September 30, 2024 and 2023, the Company recorded depreciation and amortization expense of $0.4 million and $0.5 million, respectively. 

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In limited circumstances, the Company offers extended payment terms to customers for periods of 12 to 36 months. The related customer receivables are classified as accounts receivable long-term and discounted to their present value at prevailing market rates at the time of sale. In subsequent periods, the accounts receivable is increased to the amounts due and payable by the customers through the accretion of interest income on the unpaid accounts receivable due in future years. The amounts under these long-term accounts receivable due within one year are reclassified to the current portion of accounts receivable. Accounts receivable long term, net consists of the following:

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​		September 30,				December 31,
​		2024				2023
Total amount due from customer		$	1,206			$	1,637
Less: unamortized discount			(9	)			(12	)
Less: current portion included in accounts receivable			(445	)			(828	)
​		$	752			$	797

 

The undiscounted cash flows to be received by the Company relating to these accounts receivable long-term is expected to be $0.4 million during each of the 12-month periods ending September 30, 2025, 2026, and 2027.

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Accounts payable and accrued expenses consist of the following:

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​		September 30,				December 31,
​		2024				2023
Trade accounts payable		$	240,630			$	218,717
Accrued expenses			21,605				22,903
Other accounts payable and accrued expenses			11,658				8,028
​		$	273,893			$	249,648

 

11.          Credit Facility:

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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.

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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 September 30, 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.

 ​

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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 were 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 September 30, 2024 and December 31, 2023, the Company had$0.9 million and $1.3 million outstanding under the Term Loan, respectively. At September 30, 2024, future principal payments under the Term Loan are as follows:

 ​

2024 (excluding the nine months ended September 30, 2024)			183
2025			562
2026			144
Total		$	889

 

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 Company subsequently terminated the IDF during the nine months ended September 30, 2024. The proceeds from the IDF were used for working capital needs of Data Solutions. Borrowings under the IDF were 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. The balance outstanding under the IDF at September 30, 2024 was zero, as the Company terminated the IDF during the period, compared to $4.3 million at December 31, 2023, which is included in accounts payable and accrued expenses on the Consolidated Balance Sheets.

 ​

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:

 ​

​		Nine months ended								Three months ended
​		September 30,								September 30,
​		2024				2023				2024				2023
Numerator:		​				​				​				​
Net income		$	11,620			$	7,077			$	5,459			$	2,372
Less distributed and undistributed income allocated to participating securities			288				171				139				61
Net income attributable to common shareholders			11,332				6,906				5,320				2,311
Denominator:
Weighted average common shares (Basic)			4,458				4,392				4,476				4,414
Weighted average common shares including assumed conversions (Diluted)			4,458				4,392				4,476				4,414
Basic net income per share		$	2.54			$	1.57			$	1.19			$	0.52
Diluted net income per share		$	2.54			$	1.57			$	1.19			$	0.52

 

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13.          Major Customers and Vendors:

 ​

The Company had one major vendor that accounted for 8% of total purchases during the three months ended September 30, 2024, and 15% of total purchases during the three months ended September 30, 2023. The Company had one major vendor that accounted for 11% of total purchases during the nine months ended September 30, 2024, and 16% of total purchases during the nine months ended September 30, 2023.

 ​

The Company had two major customers that accounted for 16% and 13%, respectively, of its net sales during the three months ended September 30, 2024, and 21% and 17%, respectively, of its net sales during the three months ended September 30, 2023. The Company had two major customers that accounted for 18% and 15%, respectively, of its net sales during the nine months ended September 30, 2024, and 21% and 15%, respectively, of its net sales during the nine months ended September 30, 2023. These same customers accounted for 13% and 6%, respectively, of total net accounts receivable as of September 30, 2024, and 15% and 6%, respectively, of total net accounts receivable as of December 31, 2023.

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.

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 September 30, 2024, the number of shares of Common Stock available for future award grants to employees, officers and directors under the 2021 Plan is 190,917.

 

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 September 30, 2024, the number of shares of Common Stock available under the 2012 Plan was zero.

 

During the nine months ended September 30, 2024, the Company granted a total of 51,812 shares of Restricted Stock to directors, 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 nine months ended September 30, 2024, a total of 1,661 shares of Restricted Stock were forfeited.

 ​

During the nine months ended September 30, 2023, the Company granted a total of 132,526 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.

 

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A summary of nonvested shares of Restricted Stock awards outstanding under the 2012 and 2021 Plans as of September 30, 2024, and changes during the nine 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			51,812				58.83
Vested in 2024			(64,351	)			35.51
Forfeited in 2024			(1,661	)			42.58
Nonvested shares at September 30, 2024			129,094			$	45.85

 

As of September 30, 2024, there is approximately $5.2 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 2.2 years.

 

During the three months ended September 30, 2024 and 2023, the Company recognized share-based compensation expense of $0.9 million and $0.7 million, respectively. During the nine months ended September 30, 2024 and 2023, the Company recognized share-based compensation expense of $2.8 million and $3.4 million, respectively.

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. The Company's reportable segments are based on products and services delivered, and the Company's CODM decides how to assess performance and allocate resources based on segment.

 ​

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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:

 ​

​		Nine months ended								Three months ended
​		September 30,								September 30,
​		2024				2023				2024				2023
Net Sales:		​				​				​				​
Distribution		$	286,523			$	226,905			$	111,861			$	72,227
Solutions			17,324				18,324				7,488				6,230
​			303,847				245,229				119,349				78,457
Gross Profit:		​				​				​				​
Distribution		$	51,454			$	35,472			$	21,557			$	11,671
Solutions			8,379				7,704				2,700				2,603
​			59,833				43,176				24,257				14,274
Direct Costs:		​				​				​				​
Distribution		$	23,342			$	15,225			$	8,430			$	5,249
Solutions			4,013				3,844				1,330				1,226
​			27,355				19,069				9,760				6,475
Segment Income Before Taxes: (1)		​				​				​				​
Distribution		$	28,112			$	20,247			$	13,127			$	6,422
Solutions			4,366				3,860				1,370				1,377
Segment Income Before Taxes			32,478				24,107				14,497				7,799
​		​				​				​				​
General and administrative		$	12,078			$	12,861			$	4,177			$	3,647
Acquisition related costs			1,201				277				609				246
Depreciation and amortization expense			2,933				1,934				1,197				617
Interest, net			755				760				198				318
Foreign currency transaction loss			(688	)			(100	)			(442	)			(140	)
Change in fair value of acquisition contingent consideration			(1,152	)			—				(1,152	)			—
Income before taxes		$	15,181			$	9,695			$	7,118			$	3,467

 

(1)	Excludes general corporate expenses including interest and foreign currency transaction loss

 ​

​		As of				As of
​		September 30,				December 31,
Selected Assets by Segment:		2024				2023
​		​				​
Distribution		$	306,914			$	242,927
Solutions			21,860				37,992
Segment Select Assets			328,774				280,919
Corporate Assets			43,166				54,179
Total Assets		$	371,940			$	335,098

 

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Geographic areas and net sales mix related to operations for the three and nine months ended September 30, 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.

 ​

		Nine months ended												Three months ended
		September 30, 2024												September 30, 2024
​		Distribution				Solutions				Total				Distribution				Solutions				Total
Geography										​												​
USA		$	208,462			$	6,808			$	215,270			$	78,012			$	3,818			$	81,830
Europe and United Kingdom			62,135				9,702				71,837				29,494				3,418				32,912
Canada			15,926				814				16,740				4,355				252				4,607
Total net sales		$	286,523			$	17,324			$	303,847			$	111,861			$	7,488			$	119,349
​		​				​				​				​				​				​
Timing of Revenue Recognition										​												​
Transferred at a point in time where the Company is principal (1)		$	253,027			$	10,969			$	263,996			$	101,561			$	5,074			$	106,635
Transferred at a point in time where the Company is agent (2)			33,496				6,355				39,851				10,300				2,414				12,714
Total net sales		$	286,523			$	17,324			$	303,847			$	111,861			$	7,488			$	119,349

 

		Nine months ended												Three months ended
		September 30, 2023												September 30, 2023
​		Distribution				Solutions				Total				Distribution				Solutions				Total
Geography										​												​
USA		$	180,278			$	9,908			$	190,186			$	60,891			$	3,605			$	64,496
Europe and United Kingdom			28,903				7,508				36,411				6,353				2,418				8,771
Canada			17,724				908				18,632				4,983				207				5,190
Total net sales		$	226,905			$	18,324			$	245,229			$	72,227			$	6,230			$	78,457
​		​				​				​				​				​				​
Timing of Revenue Recognition										​												​
Transferred at a point in time where the Company is principal (1)		$	200,027			$	13,290			$	213,317			$	63,587			$	4,422			$	68,009
Transferred at a point in time where the Company is agent (2)			26,878				5,034				31,912				8,640				1,808				10,448
Total net sales		$	226,905			$	18,324			$	245,229			$	72,227			$	6,230			$	78,457

 

(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  September 30, 2024 and  December 31, 2023 were as follows.

 ​

​		September 30,				December 31,
Identifiable Assets by Geographic Areas		2024				2023
USA		$	226,717			$	171,080
Canada			25,345				23,994
Europe and United Kingdom			119,878				140,024
Total		$	371,940			$	335,098

 

17.         Related Party Transactions:

 

The Company made sales to a customer where a family member of one of our executives previously had a minority ownership position. The minority ownership position terminated during the nine months ended September 30, 2024. During the three months ended September 30, 2024, there were no sales to this customer prior to the ownership position termination. During the three months ended September 30, 2023, net sales to this customer totaled approximately $0.3 million. During the nine months ended September 30, 2024 and 2023, net sales to this customer totaled approximately $0.7 million and $1.3 million, respectively. Amounts due from this customer as of  September 30, 2024 and  December 31, 2023 were zero and less than $0.1 million, respectively, which was settled in cash subsequent to each period end.

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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 September 30, 2024 and  December 31, 2023, respectively, are as follows:

 ​

​		As of September 30, 2024
​		Level 1				Level 2				Level 3				Total
Assets:		​				​				​				​
Treasury bills		$	—			$	—			$	—			$	—
Total assets		$	—			$	—			$	—			$	—
​		​				​				​				​
Liabilities:		​				​				​				​
Contingent earn-out		$	—			$	—			$	7,064			$	7,064
Total liabilities		$	—			$	—			$	7,064			$	7,064

 

​		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.

 ​

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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 December 31, 2023		$	4,189
DSS acquisition - contingent earn-out			1,755
Contingent earnout paid			(150	)
Change in fair value of acquisition contingent consideration			1,152
Translation adjustments			118
Balance September 30, 2024		$	7,064

 

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

 ​

This following information should be read in conjunction with the consolidated financial statements and the notes included in Item 1 of Part I of this Quarterly Report and the audited consolidated financial statements and notes, and Management’s Discussion and Analysis of Financial Condition and Results of Operations, contained in the Company’s Annual Report on Form 10-K filed with the SEC on for the fiscal year ended December 31, 2023.  In addition to historical information, the following discussion contains certain forward-looking information.  See “Cautionary Note Regarding Forward-Looking Statements” above for certain information concerning -forward-looking statements.

 ​

Overview

 ​

Our Company is a value added IT distribution and solutions company, primarily selling software and other third-party IT products and services through two reportable operating segments. Through our “Distribution” segment we sell products and services to corporate resellers, value added resellers (VARs), consultants and systems integrators worldwide, who in turn sell these products to end users. Through our “Solutions” segment we act as a cloud solutions provider and value-added reseller, selling computer software and hardware developed by others and provide technical services directly to end user customers worldwide. We offer an extensive line of products from leading software vendors and tools for virtualization/cloud computing, security, networking, storage and infrastructure management, application lifecycle management and other technically sophisticated domains as well as computer hardware. We market these products through creative marketing communications, including our web sites, local and on-line seminars, webinars, social media, direct e-mail, and printed materials.

 ​

We have subsidiaries in the United States, Canada, the Netherlands, the United Kingdom and Ireland, through which sales are made.

 ​

Factors Influencing Our Financial Results

 ​

We derive the majority of our net sales through the sale of third-party software licenses, maintenance and service agreements. In our Distribution segment, sales are impacted by the number of product lines we distribute, and sales penetration of those products into the reseller channel, product lifecycle competition, and demand characteristics of the products which we are authorized to distribute. In our Solutions segment sales are generally driven by sales force effectiveness and success in providing superior customer service and cloud solutions support, competitive pricing, and flexible payment solutions to our customers. Our sales are also impacted by external factors such as levels of IT spending and customer demand for products we distribute.

 ​

We sell in a competitive environment where gross product margins have historically declined due to competition and changes in product mix towards products where no delivery of a physical product is required. In addition, we grant discounts, allowances, and rebates to certain customers, which may vary from period to period, based on volume, payment terms and other criteria. To date, we have been able to implement cost efficiencies such as the use of drop shipments, electronic ordering (EDI) and other capabilities to be able to operate our business profitably as gross margins have declined. We evaluate the profitability of our business based on return on equity and effective margin.

 ​

Gross profit is calculated as net sales less cost of sales. We record customer rebates, discounts and returns as a component of net sales and record vendor rebates, discounts and returns as a component of cost of sales.

 ​

Selling, general and administrative expenses are comprised mainly of employee salaries, commissions and other employee related expenses, facility costs, costs to maintain our IT infrastructure, public company compliance costs and professional fees. We monitor our level of accounts payable, inventory turnover and accounts receivable turnover which are measures of how efficiently we utilize capital in our business.

 ​

The Company’s sales, gross profit and results of operations have fluctuated and are expected to continue to fluctuate on a quarterly basis as a result of a number of factors, including but not limited to: the condition of the software industry in general, shifts in demand for software products, pricing, industry shipments of new software products or upgrades, fluctuations in merchandise returns, adverse weather conditions that affect response, distribution or shipping, shifts in the timing of holidays and changes in the Company’s product offerings. The Company’s operating expenditures are based on sales forecasts. If sales do not meet expectations in any given quarter, operating results may be materially adversely affected.

 ​

 

Dividend Policy and Share Repurchase Program. Historically we have sought to return value to investors through the payment of quarterly dividends and share repurchases. Total dividends paid and the dollar value of the shares repurchased were $0.8 million and $0.3 million, respectively, during the three months ended September 30, 2024. Total dividends paid and the dollar value of the shares repurchased were $0.8 million and $0.2 million, respectively, during the three months ended September 30, 2023. The payment of future dividends and share repurchases is at the discretion of our Board of Directors and dependent on results of operations, projected capital requirements, applicable legal, tax and regulatory restrictions, and other factors the Board of Directors may find relevant.

 ​

Stock Volatility. The technology, distribution and services sectors of the United States stock markets is subject to substantial volatility. Numerous conditions which impact these sectors or the stock market in general or the Company in particular, whether or not such events relate to or reflect upon the Company’s operating performance, could adversely affect the market price of the Company’s Common Stock. Furthermore, fluctuations in the Company’s operating results, announcements regarding litigation, the loss of a significant vendor or customer, increased competition, reduced vendor incentives and trade credit, higher operating expenses, and other developments, could have a significant impact on the market price of our Common Stock.

 ​

Inflation. We have historically not been adversely affected by inflation, as abrupt changes in technology, rapid changes in customer preferences, short product life cycles and evolving industry standards within the IT industry have generally caused the prices of the products we sell to decline. This requires us to sell new products and have growth in unit sales of existing products in order to increase our net sales. We believe that most price increases could be passed on to our customers, as prices charged by us are not set by long-term contracts; however, as a result of competitive pressure, there can be no assurance that the full effect of any such price increases could be passed on to our customers or cause a reduction in our customers spending.

 ​

Financial Overview

 ​

Net sales increased 52%, or $40.8 million, to $119.3 million for the three months ended September 30, 2024 compared to $78.5 million for the same period in the prior year. Gross profit increased 70%, or $10.0 million, to $24.3 million for the three months ended September 30, 2024, compared to $14.3 million for the same period in the prior year. Selling, general and administrative (“SG&A”) expenses increased 38%, or $3.8 million, to $13.9 million for the three months ended September 30, 2024 compared to $10.1 million for the same period in the prior year. Depreciation and amortization expense increased 94%, or $0.6 million, to $1.2 million for the three months ended September 30, 2024 compared to $0.6 million for the same period in the prior year. Net income increased 130%, or $3.1 million, to $5.5 million for the three months ended September 30, 2024 compared to $2.4 million for the same period in the prior year. Diluted income per share increased 129%, or $0.67 to $1.19 for the three months ended September 30, 2024 compared to $0.52 for the same period in the prior year.

 ​

Critical Accounting Policies and Estimates

 ​

Management’s discussion and analysis of the Company’s financial condition and results of operations are based upon the Company’s consolidated financial statements that have been prepared in accordance with generally accepted accounting principles in the United States of America (“US GAAP”). The preparation of these financial statements requires the Company to make estimates and judgments that affect the reported amounts of assets, 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, contingencies and litigation.

 ​

The Company bases its estimates on 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. Actual results may differ from these estimates.

 ​

The Company believes the following critical accounting policies used in the preparation of its consolidated financial statements affect its more significant judgments and estimates.

 ​

 

Revenue

 ​

The Company utilizes judgment regarding performance obligations inherent in the products for services it sells including, whether ongoing maintenance obligations performed by third party vendors are distinct from the related software licenses, and allocation of sales prices among distinct performance obligations. These estimates require significant judgment to determine whether the software’s functionality is dependent on ongoing maintenance or if substantially all functionality is available in the original software download. We also use judgment in the allocation of sales proceeds among performance obligations, utilizing observable data such as stand-alone selling prices, or market pricing for similar products and services.

 ​

Allowances for Expected Credit Losses

 

The Company maintains allowances for expected credit losses for estimated losses resulting from the inability of its customers to make required payments. Management determines the estimate of the allowance for expected credit losses by considering a number of factors, including historical experience, aging of the accounts receivable, as well as current market conditions and future forecasts of our customers’ ability to make payments for goods and services. At the time of sale, we record an estimate for sales returns based on historical experience, which is included in accounts payable and accrued expenses on the Consolidated Balance Sheets. If actual sales returns are greater than estimated by management, additional expense may be incurred.

 

Business Combinations

 ​

We apply the provisions of ASC 805, Business Combinations (“ASC 805”), in accounting for our acquisitions. ASC 805 requires that we evaluate whether a transaction pertains to an acquisition of assets, or to an acquisition of a business. A business is defined as an integrated set of assets and activities that is capable of being conducted and managed for the purpose of providing a return to investors. Asset acquisitions are accounted for by allocating the cost of the acquisition to the individual assets and liabilities assumed on a relative fair value basis; whereas the acquisition of a business requires us to recognize separately from goodwill the assets acquired and the liabilities assumed at the acquisition date fair values. Goodwill as of the acquisition date is measured as the excess of consideration transferred over the net of the acquisition date fair values of the assets acquired and the liabilities assumed.

 ​

Our valuation of acquired assets and assumed liabilities requires estimates, especially with respect to intangible assets that was derived using valuation techniques and models such as the income approach. Such models require use of estimates including discount rates, and future expected revenue. The approach to estimating an initial contingent consideration associated with the purchase price also uses similar unobservable factors such as projected cash flows over the term of the contingent earn-out period, discounted for the period over which the initial contingent consideration is measured and expected volatility. Based upon these assumptions, the initial contingent consideration is then valued using a Monte Carlo simulation.

 ​

We have used third-party qualified specialists to assist management in determining the fair value of assets acquired and liabilities assumed. This includes assistance with the determination of economic useful lives and valuation of identifiable intangibles.

 ​

We estimate the fair value based upon assumptions we believe to be reasonable, but which are inherently uncertain and unpredictable and, as a result, actual results may differ from our estimates. Estimates associated with the accounting for acquisitions may change as additional information becomes available regarding the assets acquired and liabilities assumed. As a result, during the measurement period, which may be up to one year from the business acquisition date, we record certain adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill.  

 ​

All acquisition-related costs are accounted for as expenses in the period in which they are incurred. Contingent consideration is remeasured each reporting period using Level 3 inputs, and the change in fair value, including accretion for the passage of time, is recognized in acquisition related costs in the consolidated statement of earnings.

 ​

Goodwill

 ​

We test goodwill for impairment on an annual basis and between annual tests if an event occurs, or circumstances change, that would more likely than not reduce the fair value of a reporting unit below its carrying amount. The Company performs an evaluation of goodwill, utilizing either a qualitative or quantitative impairment test. The annual test for impairment is conducted as of October 1. The Company’s reporting units included in the assessment of potential goodwill impairment are the same as its operating segments. Goodwill is not amortized but is subject to periodic testing for impairment at the reporting unit level.

 ​

 

In a qualitative assessment, we assess qualitative factors to determine whether it is more likely than not (that is, a likelihood of more than 50 percent) that the fair value of a reporting unit is less than its carrying amount, including goodwill. If, after assessing the totality of events or circumstances, we determine that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then the quantitative goodwill impairment test is unnecessary.

 ​

If, after assessing the totality of events or circumstances, we determine that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, then we perform the quantitative goodwill impairment test. We may also elect the unconditional option to bypass the qualitative assessment for any reporting unit in any period and proceed directly to performing the quantitative goodwill impairment test.

 ​

In the quantitative impairment test, we compare the fair value of a reporting unit with its carrying amount, including goodwill. If the fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is considered not impaired. Conversely, if the carrying amount of a reporting unit exceeds its fair value, an impairment loss shall be recognized in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit.

 ​

Determining the fair value of a reporting unit is judgmental in nature and requires the use of significant estimates and assumptions, including net sales growth rates, gross profit margins, operating margins, discount rates and future market conditions, among others. Any changes in the judgments, estimates or assumptions used could produce significantly different results.

 ​

Intangible Assets

 ​

Intangible assets with determinable lives are amortized on a straight-line basis over their respective estimated useful lives, which is determined based on their expected period of benefit. Intangible assets are reviewed for impairment when events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Determination of recoverability is based on an estimate of undiscounted future cash flows resulting from the use of the asset and its eventual disposition. If the carrying amount of an asset exceeds its estimated future undiscounted cash flows, an impairment loss is recorded for the excess of the asset’s carrying amount over its fair value. In addition, each quarter, the Company evaluates whether events and circumstances warrant a revision to the remaining estimated useful life of each of these intangible assets. If the Company were to determine that a change to the remaining estimated useful life of an intangible asset was necessary, then the remaining carrying amount of the intangible asset would be amortized prospectively over that revised remaining useful life.

 ​

Income Taxes

 ​

The Company has considered future taxable income and ongoing prudent and feasible tax planning strategies in assessing the need for the valuation allowance related to deferred tax assets. In the event the Company were to determine that it would not be able to realize all or part of its net deferred tax assets in the future, an adjustment to the deferred tax assets would be charged to income in the period such determination was made.

 ​

Share-Based Payments

 ​

Under the fair value recognition provision, stock-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense on a straight-line basis over the requisite service period. We make certain assumptions in order to value and expense our various share-based payment awards. In connection with our restricted stock programs we record the forfeitures when they occur. We review our valuation assumptions periodically and, as a result, we may change our valuation assumptions used to value stock-based awards granted in future periods. Such changes may lead to a significant change in the expense we recognize in connection with share-based payments.

 ​

 

Foreign Exchange

 ​

The Company’s foreign currency exposure relates primarily to international transactions where the currency collected from customers can be different from the currency used to purchase the product. In cases where the Company is not able to create a natural hedge by maintaining offsetting asset and liability amounts in the same currency, it may enter into foreign exchange contracts, typically in the form of forward purchase agreements, to facilitate the hedging of foreign currency exposures to mitigate the impact of changes in foreign currency exchange rates. These contracts generally have terms of no more than two months. The Company does not apply hedge accounting to these contracts and therefore the changes in fair value are recorded in earnings. The Company does not enter into foreign exchange contracts for trading purposes and the risk of loss on a foreign exchange contract is the risk of nonperformance by the counterparties, which the Company minimizes by limiting its counterparties to major financial institutions. The Company recognized an unrealized loss of approximately $0.1 million on contracts outstanding as of September 30, 2024.

 ​

Recently Issued Accounting Pronouncements

 ​

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.

 ​

Results of Operations

 ​

The following table sets forth for the periods indicated certain financial information derived from the Company’s unaudited condensed consolidated statements of earnings expressed as a percentage of net sales. This comparison of financial results is not necessarily indicative of future results:

 ​

​		Nine months ended								Three months ended
​		September 30,								September 30,
​		2024				2023				2024				2023
Net sales			100.0	%			100.0	%			100.0	%			100.0	%
Cost of sales			80.3				82.4				79.7				81.8
Gross profit			19.7				17.6				20.3				18.2
Selling, general and administrative expenses			13.0				13.0				11.7				12.9
Acquisition related costs			0.4				0.1				0.5				0.3
Depreciation and amortization expense			1.0				0.8				1.0				0.8
Income from operations			5.4				3.7				7.1				4.2
Other income			0.0				0.3				(0.2	)			0.2
Income before income taxes			5.0				4.0				6.0				4.4
Income tax provision			1.2				1.1				1.4				1.4
Net income			3.8	%			2.9	%			4.6	%			3.0	%

 

 

Key Operating Metrics / Non-GAAP Financial Measures

 ​

Our management monitors several financial and non-financial measures and ratios on a regular basis in order to track the progress of our business. We believe that the most important of these measures and ratios include net sales, adjusted gross billings, gross profit, adjusted EBITDA, gross profit as a percentage of adjusted gross billings and adjusted EBITDA as a percentage of gross profit. We use a variety of operating and other information to evaluate the operating performance of our business, develop financial forecasts, make strategic decisions, and prepare and approve annual budgets. These key indicators include financial information that is prepared in accordance with US GAAP and presented in our Consolidated Financial Statements as well as non-US GAAP performance measurement tools. 

 ​

​		Nine months ended								Three months ended
​		September 30,				September 30,				September 30,				September 30,
​		2024				2023				2024				2023
​		​				​				​				​
Net sales		$	303,847			$	245,229			$	119,349			$	78,457
Adjusted gross billings (Non-GAAP)		$	1,180,294			$	863,339			$	465,184			$	281,915
​		​				​				​				​
Gross profit		$	59,833			$	43,176			$	24,257			$	14,274
Gross profit - Distribution		$	51,454			$	35,472			$	21,557			$	11,671
Gross profit - Solutions		$	8,379			$	7,704			$	2,700			$	2,603
​		​				​				​				​
Adjusted EBITDA (Non-GAAP)		$	22,391			$	15,422			$	9,933			$	5,062
​		​				​				​				​
Gross margin % - Adjusted gross billings (Non-GAAP)			5.1	%			5.0	%			5.2	%			5.1	%
Effective margin % - Adjusted EBITDA (Non-GAAP)			37.4	%			35.7	%			40.9	%			35.5	%

 

We consider gross profit growth and effective margin to be key metrics in evaluating our business. During the three months ended September 30, 2024, gross profit increased 70%, or $10.0 million, to $24.3 million compared to $14.3 million for the same period in the prior year while effective margin increased to 40.9% compared to 35.5% for the same period in the prior year. During the nine months ended September 30, 2024, gross profit increased 39%, or $16.6 million, to $59.8 million compared to $43.2 million for the same period in the prior year while effective margin increased to 37.4% compared to 35.7% for the same period in the prior year.

 ​

Reconciliations of Non-GAAP Financial Measures

 ​

​		Nine months ended								Three months ended
​		September 30,				September 30,				September 30,				September 30,
Reconciliation of net sales to adjusted gross billings (Non-GAAP):		2024				2023				2024				2023
​		​				​				​				​
Net sales		$	303,847			$	245,229			$	119,349			$	78,457
Costs of sales related to sales where the Company is an agent			876,447				618,110				345,835				203,458
Adjusted gross billings		$	1,180,294			$	863,339			$	465,184			$	281,915

 

 

We define adjusted gross billings as net sales in accordance with US GAAP, adjusted for the cost of sales related to sales where the Company is an agent. We provided a reconciliation of adjusted gross billings to net sales, which is the most directly comparable US GAAP measure. We use adjusted gross billings of product and services as a supplemental measure of our performance to gain insight into the volume of business generated by our business, and to analyze the changes to our accounts receivable and accounts payable. Our use of adjusted gross billings of product and services as analytical tools has limitations, and you should not consider them in isolation or as substitutes for analysis of our financial results as reported under US GAAP. In addition, other companies, including companies in our industry, might calculate adjusted gross billings of product and services or similarly titled measures differently, which may reduce their usefulness as comparative measures.

 ​

​		Nine months ended								Three months ended
​		September 30,				September 30,				September 30,				September 30,
Net income reconciled to adjusted EBITDA (Non-GAAP):		2024				2023				2024				2023
​		​				​				​				​
Net income		$	11,620			$	7,077			$	5,459			$	2,372
Provision for income taxes			3,561				2,618				1,659				1,095
Depreciation and amortization			2,933				1,934				1,197				617
Interest expense			266				94				105				45
EBITDA			18,380				11,723				8,420				4,129
Share-based compensation			2,810				3,422				904				687
Acquisition related costs			1,201				277				609				246
Adjusted EBITDA		$	22,391			$	15,422			$	9,933			$	5,062

 

We define adjusted EBITDA, as net income, plus provision for income taxes, depreciation, amortization, share-based compensation, interest, and acquisition related costs. We define effective margin as adjusted EBITDA as a percentage of gross profit. We provided a reconciliation of adjusted EBITDA to net income, which is the most directly comparable US GAAP measure. We use adjusted EBITDA as a supplemental measure of our performance to gain insight into our businesses profitability when compared to the prior year and our competitors. Adjusted EBITDA is also a component to our financial covenants in our credit facility. Our use of adjusted EBITDA has limitations, and you should not consider it in isolation or as a substitute for analysis of our financial results as reported under US GAAP. In addition, other companies, including companies in our industry, might calculate adjusted EBITDA, or similarly titled measures differently, which may reduce their usefulness as comparative measures.

 ​

Acquisitions

 

On July 31, 2024, we completed the acquisition of DSS for an aggregate purchase price of approximately $20.3 million (subject to certain adjustments) plus a potential post-closing earnout payment. On October 6, 2023, we completed the acquisition of 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 operating results of DSS and Data Solutions are included in our operating results from the dates of acquisition.

 

The operating results of DSS and Data Solutions are included in our Distribution segment.

 ​

Three Months Ended September 30, 2024 Compared to Three Months Ended September 30, 2023

 ​

Net Sales and Adjusted Gross Billings

 ​

Net sales for the three months ended September 30, 2024 increased 52%, or $40.8 million, to $119.3 million compared to $78.5 million for the same period in the prior year. Adjusted gross billings for the three months ended September 30, 2024 increased 65%, or $183.3 million, to $465.2 million compared to $281.9 million for the same period in the prior year. Net sales and adjusted gross billings increased due to both organic growth from our existing vendor partnerships as well as the impact of the acquisitions of DSS and Data Solutions. Adjusted gross billings increased at a greater rate than net sales due to differences in the product mix between the two periods. During the three months ended September 30, 2024, adjusted gross billings included a greater percentage of security, maintenance and cloud products, which are recorded net of related cost of sales, while during the three months ended September 30, 2023, adjusted gross billings included a greater percentage of hardware and software products, which are recorded on a gross basis.

 ​

 

Distribution segment net sales for the three months ended September 30, 2024 increased 55%, or $39.7 million, to $111.9 million compared to $72.2 million for the same period in the prior year. Adjusted gross billings for the Distribution segment for the three months ended September 30, 2024 increased 69%, or $179.8 million, to $441.4 million compared to $261.6 million for the same period in the prior year. Net sales increased at a lesser rate than adjusted gross billings increased due to the aforementioned differences in the product mix between the two periods.

 ​

Solutions segment net sales for the three months ended September 30, 2024, increased 20%, or $1.3 million, to $7.5 million compared to $6.2 million for the same period in the prior year. Adjusted gross billings for the Solutions segment for the three months ended September 30, 2024 increased 17%, or $3.5 million, to $23.8 million compared to $20.3 million for the same period in the prior year. Net sales increased at a lesser rate than adjusted gross billings due to differences in the product mix between the two periods.

 ​

During the three months ended September 30, 2024, the Company had two major customers that accounted for 16% and 13%, respectively, of our total net sales. During the three months ended September 30, 2023, the Company had two major customers that accounted for 21% and 17%, respectively, of our total net sales.  The Company had one major vendor that accounted for 8% of total purchases during the three months ended September 30, 2024 and 15% of total purchases during the three months ended September 30, 2023.

 ​

Gross Profit

 ​

Gross profit for the three months ended September 30, 2024 increased 70%, or $10.0 million, to $24.3 million compared to $14.3 million for the same period in the prior year. Gross profit increased due to both organic growth from our existing vendor partnerships as well as the impact of the acquisitions of DSS and Data Solutions.

 ​

Distribution segment gross profit for the three months ended September 30, 2024 increased 85%, or $9.9 million, to $21.6 million compared to $11.7 million for the same period in the prior year. The increase in Distribution segment gross profit was due to the aforementioned organic growth from our existing vendor partnerships as well as the contribution from the acquisitions of DSS and Data Solutions, partially offset by higher early pay discounts and other rebates and discounts offered to our customers as a percentage of adjusted gross billings.

 ​

Solutions segment gross profit for the three months ended September 30, 2024 increased 4%, or $0.1 million, to $2.7 million compared to $2.6 million for the same period in the prior year. This increase was driven by the aforementioned increase in adjusted gross billings compared to the same period in the prior year.

 ​

Customer rebates and discounts for the three months ended September 30, 2024 were $3.9 million compared to $2.8 million for the same period in the prior year. Customer rebates and discounts vary based on terms of rebate and early pay discount programs offered to customers and timing of payments ultimately received from our customers.

 ​

Vendor rebates and discounts for the three months ended September 30, 2024 were $0.8 million compared to $2.3 million for the same period in the prior year. Vendor rebates are dependent on programs offered by our vendors and in some cases reaching certain volume targets set by our vendors or meeting certain early payment programs offered by our vendors. The Company monitors vendor rebate levels, competitive pricing, and gross profit margins carefully.

 ​

Selling, General and Administrative Expenses

 ​

SG&A expenses for the three months ended September 30, 2024 increased 38%, or $3.8 million, to $13.9 million compared to $10.1 million for the same period in the prior year primarily due to the impact of the acquisition of DSS. SG&A expenses were 3.0% of adjusted gross billings for the three months ended September 30, 2024, compared to 3.6% for the same period in the prior year. The Company expects that its SG&A expenses, as a percentage of adjusted gross billings, may vary depending on changes in sales volume, as well as the levels of continuing investments to drive future growth.

 ​

Depreciation and Amortization Expense

 ​

Depreciation and amortization expense for the three months ended September 30, 2024, increased 94%, or $0.6 million, to $1.2 million compared to $0.6 million for the same period in the prior year, primarily due to the amortization of intangible assets acquired in the DSS and Data Solutions acquisitions.

 

 

Acquisition Related Costs

 ​

Acquisition related costs for the three months ended September 30, 2024 were $0.6 million, which were primarily costs incurred in conjunction with the acquisition of DSS, compared to $0.2 million for the same period in the prior year, which were costs incurred in conjunction with the acquisition of Data Solutions.

 ​

Income Taxes

 ​

For the three months ended September 30, 2024 and 2023, the Company recorded a provision for income taxes of $1.7 million and $1.1 million, respectively. The effective tax rate for the three months ended September 30, 2024 and 2023 was 23.3% and 31.6%, respectively. The change in effective tax rate for the three months ended September 30, 2024 compared to the same period in the prior year was impacted by changes in the mix of jurisdictions in which taxable income was earned, as well as the prior year period included limitations on the deductibility of certain executive compensation amounts. 

 ​

Nine Months Ended September 30, 2024 Compared to Nine Months Ended September 30, 2023

 ​

Net Sales and Adjusted Gross Billings

 ​

Net sales for the nine months ended September 30, 2024 increased 24%, or $58.6 million, to $303.8 million compared to $245.2 million for the same period in the prior year. Adjusted gross billings for the nine months ended September 30, 2024 increased 37%, or $317.0 million, to $1,180.3 million compared to $863.3 million for the same period in the prior year. Net sales and adjusted gross billings increased due to both organic growth from our existing vendor partnerships as well as the impact of the acquisitions of DSS and Data Solutions. Adjusted gross billings increased at a greater rate than net sales due to differences in the product mix between the two periods and an unfavorable impact of foreign exchange rates. During the nine months ended September 30, 2024, adjusted gross billings included a greater percentage of security, maintenance and cloud products, which are recorded net of related cost of sales, while during the nine months ended September 30, 2023, adjusted gross billings included a greater percentage of hardware and software products, which are recorded on a gross basis.

 ​

 

Distribution segment net sales for the nine months ended September 30, 2024 increased 26%, or $59.6 million, to $286.5 million compared to $226.9 million for the same period in the prior year. Adjusted gross billings for the Distribution segment for the nine months ended September 30, 2024 increased 38%, or $308.4 million, to $1113.6 million compared to $805.2 million for the same period in the prior year. Net sales increased at a lesser rate than adjusted gross billings due to the aforementioned differences in the product mix between the two periods.

 ​

Solutions segment net sales for the nine months ended September 30, 2024, decreased 6%, or $1.0 million, to 17.3 million compared to $18.3 million for the same period in the prior year. Adjusted gross billings for the Solutions segment for the nine months ended September 30, 2024 increased 15%, or $8.6 million, to $66.7 million compared to $58.1 million for the same period in the prior year. Net sales decreased while adjusted gross billings increased due to the aforementioned differences in the product mix between the two periods.

 ​

During the nine months ended September 30, 2024, the Company had two major customers that accounted for 15% and 18%, respectively, of our total net sales. During the nine months ended September 30, 2023, the Company had two major customers that accounted for 21% and 15%, respectively, of our total net sales.  The Company had one major vendor that accounted for11%,respectively, of total purchases during the nine months ended September 30, 2024 and 16% of total purchases during the nine months ended September 30, 2023.

 ​

Gross Profit

 ​

Gross profit for the nine months ended September 30, 2024 increased 39%, or $16.6 million, to $59.8 million compared to $43.2 million for the same period in the prior year. Gross profit increased due to both organic growth from our existing vendor partnerships as well as the impact of the acquisitions of DSS and Data Solutions.

 ​

Distribution segment gross profit for the nine months ended September 30, 2024 increased 45%, or $16.0 million, to $51.5 million compared to $35.5 million for the same period in the prior year. The increase in Distribution segment gross profit was due to the aforementioned organic growth from our existing vendor partnerships as well as the contribution from the acquisitions of DSS and Data Solutions, partially offset by higher early pay discounts and other rebates and discounts offered to our customers as a percentage of adjusted gross billings.

 ​

Solutions segment gross profit for the nine months ended September 30, 2024 increased 9%, or $0.7 million, to $8.4 million compared to $7.7 million for the same period in the prior year. This increase was driven by the aforementioned increase in adjusted gross billings compared to the same period in the prior year.

 ​

Customer rebates and discounts for the nine months ended September 30, 2024 were$10.4 million compared to $9.2 million for the same period in the prior year. Customer rebates and discounts vary based on terms of rebate and early pay discount programs offered to customers and timing of payments ultimately received from our customers.

 ​

Vendor rebates and discounts for the nine months ended September 30, 2024 were $4.4 million compared to $6.1 million for the same period in the prior year. Vendor rebates are dependent on programs offered by our vendors and in some cases reaching certain volume targets set by our vendors or meeting certain early payment programs offered by our vendors. The Company monitors vendor rebate levels, competitive pricing, and gross profit margins carefully.

 ​

Selling, General and Administrative Expenses

 ​

SG&A expenses for the nine months ended September 30, 2024 increased 23%, or $7.4 million, to $39.4 million compared to $31.9 million for the same period in the prior year, primarily due to the impact of the acquisition of DSS. SG&A expenses were 3.3% of adjusted gross billings for the nine months ended September 30, 2024, compared to 3.7% for the same period in the prior year. The Company expects that its SG&A expenses, as a percentage of adjusted gross billings, may vary depending on changes in sales volume, as well as the levels of continuing investments to drive future growth.

 ​

Depreciation and Amortization Expense

 ​

Depreciation and amortization expense for the nine months ended September 30, 2024, increased 54%, or $1.1 million, to $3.0 million compared to $1.9 million for the same period in the prior year, primarily due to the amortization of intangible assets acquired in the DSS acquisition.

 

 

Acquisition Related Costs

 ​

Acquisition related costs for the nine months ended September 30, 2024 were $1.2 million, which were primarily costs incurred in conjunction with the acquisition of DSS, compared to $0.3 million for the same period in the prior year, which were costs incurred in conjunction with the acquisition of Data Solutions.

 ​

Income Taxes

 ​

For the nine months ended September 30, 2024 and 2023, the Company recorded a provision for income taxes of $3.6 million and $2.6 million, respectively. The effective tax rate for the nine months ended September 30, 2024 and 2023 was 23.5% and 27.0%, respectively. The change in the effective tax rate for the nine months ended September 30, 2024 compared to the same period in the prior year was impacted by changes in the mix of jurisdictions in which taxable income was earned, as well as the prior year period included limitations on the deductibility of certain executive compensation amounts. 

Liquidity and Capital Resources

 ​

Our cash and cash equivalents as of September 30, 2024 decreased 39%, or $14.2 million, to $22.1 million compared to $36.3 million as of December 31, 2023.

 ​

Net cash and cash equivalents provided by operating activities for the nine months ended September 30, 2024 was $17.8 million, comprised primarily of net income adjusted for non-cash items of $18.7 million, partially offset by changes in operating assets and liabilities of $0.9 million.

 ​

Net cash and cash equivalents used in investing activities during the nine months ended September 30, 2024 was $24.3 million, comprised of $3.6 million purchases of fixed assets supporting our ongoing ERP project and $20.7 million payment for the DSS acquisition.

 ​

Net cash and cash equivalents used in financing activities during the nine months ended September 30, 2024 was $8.1 million, comprised of dividend payments on our Common Stock of $2.3 million, purchases of treasury stock of $1.0 million, repayments of borrowings under term loan of $0.4 million and repayments of borrowings under credit facilities of $4.2 million.

 

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 September 30, 2024.

 

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.  As of September 30, 2024, the Company had $0.9 million outstanding under the Term Loan.

 ​

 

In connection with the acquisition of Data Solutions, the Company acquired an invoice discounting facility (“IDF”) that was 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 were 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 September 30, 2024, the outstanding balance under the IDF at was zero, as the Company terminated the IDF during the period.

 ​

We anticipate that our working capital needs will increase as we invest in the growth of our business. We believe that the funds held in cash and cash equivalents and our unused borrowings under our Credit Agreement will be sufficient to fund our working capital and cash requirements for at least the next 12 months.

 ​

Foreign Exchange

 ​

The Company’s foreign subsidiaries are subject to changes in demand or pricing resulting from fluctuations in currency exchange rates or other factors. We are subject to fluctuations primarily in the Canadian Dollar, Euro Dollar and British Pound-to-U.S. Dollar exchange rate.

 ​

Off-Balance Sheet Arrangements

 ​

As of September 30, 2024, we did not have any off-balance sheet arrangements, as defined in Item 303(a)(4)(ii) of Regulation S-K promulgated under the Securities Act of 1934, as amended.

 ​

 

Item 3. Quantitative and Qualitative Disclosures about Market Risk

 ​

Smaller reporting companies are not required to provide the information required by this item.

 ​

Item 4. Controls and Procedures

 ​

Evaluation of Disclosure Controls and Procedures. We maintain “disclosure controls and procedures” (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) that are designed to ensure that material information relating to us is made known to the officers who certify as to our financial reports and to other members of senior management and the Board of Directors.  These disclosure controls and procedures are designed to ensure that information required to be disclosed in our reports that are filed or submitted under the Exchange Act, are recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms.  

 ​

As required by Rule 13a-15(b) under the Exchange Act, our management carried out an evaluation of the effectiveness of the design and operation of the Company’s disclosure controls and procedures as of the end of the period covered by this Quarterly Report.  This evaluation was carried out under the supervision and with the participation of various members of our management, including our Company’s Chief Executive Officer (principal executive officer), Vice President and Chief Financial Officer (principal financial officer) and Vice President and Chief Accounting Officer (principal accounting officer). Based upon that evaluation, the Company’s Chief Executive Officer, Chief Financial Officer and Chief Accounting Officer concluded that the Company’s disclosure controls and procedures were effective, as of the end of the period covered by this Quarterly Report, to ensure that information required to be disclosed by the Company in the reports it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms and is accumulated and communicated to the Company’s management, including the Company’s Chief Executive Officer, Chief Financial Officer and Chief Accounting Officer, as appropriate, to allow timely decisions regarding required disclosure.

 ​ ​

As described above, on July 31, 2024, we completed the acquisition of DSS. SEC guidance permits management to omit an assessment of an acquired business’ internal control over financial reporting from management’s assessment of internal control over financial reporting for a period not to exceed one year from date of acquisition. We are in the process of integrating DSS operations within our internal control structure. In executing this integration, we are analyzing, evaluating, and where necessary, making changes in controls and procedures related to the DSS business. Accordingly, management has excluded controls relating to DSS in this quarter’s evaluation of disclosure controls and procedures.

 

Changes in Internal Control Over Financial Reporting. Except for the acquisition of DSS described above, there has been no change in our internal control over financial reporting identified in connection with the evaluation required by Rule 13a-15(d) under the Exchange Act, that occurred during the three months ended September 30, 2024, that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

PART II - OTHER INFORMATION

 ​

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

 ​

The table below sets forth the repurchase of Common Stock by the Company and its affiliated purchasers during the third quarter of 2024.

 ​

ISSUER PURCHASE OF EQUITY SECURITIES

 ​

​

​

​

​

​

Maximum

​

​

​

​

​

Number of

​

​

​

Total Number

​

Shares That

​

​

​

of Shares

​

May Yet Be

​

Total

​

Purchased as

​

Purchased

​

Number

​

Part of Publicly

​

Under the

​

of Shares

Average

Announced

Average

Plans or

​

Purchased

Price Paid

Plans or

Price Paid

Programs

Period

(1)

Per Share

Programs

Per Share

(2)

​

​

​

​

​

​

July 1, 2024 - July 31, 2024

—

$

—

—

$

—

545,786

August 1, 2024 - August 31, 2024

—

$

—

—

$

—

545,786

September 1, 2024 - September 30, 2024

—

$

—

—

$

—

545,786

Total

—

$

—

—

$

—

545,786

 

---

 

(1)	Does not include 4,737 shares surrendered, or deemed surrendered, to the Company by employees to satisfy individual tax withholding obligations upon vesting of previously issued shares of Restricted Stock.

 ​

(2)	For the quarter ended September 30, 2024, we did not repurchase any shares of our Common Stock under our share repurchase plans referred to in footnote (3) below.

 ​

(3)

On December 3, 2014, the Board of Directors of the Company approved an increase of 500,000 shares of Common Stock to the number of shares of Common Stock available for repurchase under its repurchase plans. On February 2, 2017, the Board of Directors of the Company approved an increase of 500,000 shares of Common Stock to the number of shares of Common Stock available for repurchase under its repurchase plans. The Company expects to purchase shares of its Common Stock from time to time in the market or otherwise subject to market conditions. The timing, number and value of shares of Common Stock repurchased are subject to the Company’s discretion. The Common Stock repurchase program does not have an expiration date.

 

Item 6. Exhibits

 ​

​	​	Incorporated by Reference
Exhibit No.	Description of Exhibit	Form	Exhibit or Annex	Filing Date	File Number
​​	​	​	​	​	​
3.1	Form of Amended and Restated Certificate of Incorporation of the Company.	S-1	3.1	May 30, 1995 July 7, 1995 July 18, 1995	333-92810
​	​	​	​	​	​
3.1(a)	Certificate of Amendment of Restated Certificate of Incorporation of the Company.	10-Q	3.1(a)	November 3, 2006	000-26408
​	​	​	​	​	​
3.1(b)	Certificate of Amendment of Restated Certificate of Information of the Company.	8-K	3.1	October 27, 2022	000-26408
​	​	​	​	​	​
3.2	Amended and Restated Bylaws of the Company.	8-K	3.1	December 8, 2022	000-26408
​	​	​	​	​	​
31.1*	Certification pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934, of Dale Foster, the Chief Executive Officer (principal executive officer) of the Company (filed herewith).	​	​	​	​
​	​	​	​	​	​
31.2*	Certification pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934, of Andrew Clark, the Vice President and Chief Financial Officer (principal financial officer) of the Company (filed herewith).	​	​	​	​
​	​	​	​	​	​
31.3*	Certification pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934, of Matthew Sullivan, the Vice President and Chief Accounting Officer (principal accounting officer) of the Company (filed herewith).	​	​	​	​
​	​	​	​	​	​
32.1#	Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, of Dale Foster, the Chief Executive Officer (principal executive officer) of the Company (furnished herewith).	​	​	​	​
​	​	​	​	​	​
32.2#	Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, of Andrew Clark, the Vice President and Chief Financial Officer (principal financial officer) of the Company (furnished herewith).	​	​	​	​
​	​	​	​	​	​
32.3#	Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, of Matthew Sullivan, the Vice President and Chief Accounting Officer (principal accounting officer) of the Company (furnished herewith).	​	​	​	​
​	​	​	​	​	​
101	The following financial information from Climb Global Solutions, Inc.’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2024, filed with the SEC on November 1, 2024, formatted in Inline XBRL (Extensible Business Reporting Language) includes: (1) Condensed Consolidated Balance Sheets, (2) Condensed Consolidated Statements of Income, (3) Condensed Consolidated Statements of Stockholders’ Equity, (4) Condensed Consolidated Statements of Comprehensive Income, (5) Condensed Consolidated Statements of Cash Flows, and (6) the Notes to the Unaudited Condensed Consolidated Financial Statements.	​	​	​	​
​	​	​	​	​	​
104	Cover Page Interactive Data File – The cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.	​	​	​	​
*	Filed herewithin
#	Furnished herewithin. This certification is deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (Exchange Act), or otherwise subject to the liability of that section, nor shall it be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act.

 ​

 

SIGNATURES

 ​

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 ​

​	​	​	CLIMB GLOBAL SOLUTIONS, INC
​	​	​	​
November 1, 2024	​	By:	/s/ Dale Foster
Date	​	​	Dale Foster, Chief Executive Officer (Principal Executive Officer)
​	​	​	​
​	​	​	​
November 1, 2024	​	By:	/s/ Andrew Clark
Date	​	​	Andrew Clark, Vice President and Chief Financial Officer (Principal Financial Officer)
​	​	​	​
​	​	​	​
November 1, 2024	​	By:	/s/ Matthew Sullivan
Date	​	​	Matthew Sullivan, Vice President and Chief Accounting Officer (Principal Accounting Officer)

 ​

Exhibit 31.1

 ​

CERTIFICATION

 ​

I, Dale Foster, certify that:

 ​

1.    I have reviewed this quarterly report on Form 10-Q of Climb Global Solutions, Inc.;

 ​

2.    Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 ​

3.    Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 ​

4.    The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 ​

(a)   Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 ​

(b)   Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 ​

(c)   Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 ​

(d)   Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 ​

5.    The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 ​

(a)   All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

 ​

(b)   Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 ​

Date: November 1, 2024

 ​

 

/s/ Dale Foster	​
Dale Foster	​
Chief Executive Officer	​
(Principal Executive Officer)	​

 ​

Exhibit 31.2

 ​

CERTIFICATION

 ​

I, Andrew Clark, certify that:

 ​

1.    I have reviewed this quarterly report on Form 10-Q of Climb Global Solutions, Inc.;

 ​

2.    Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 ​

3.    Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 ​

4.    The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 ​

(a)   Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 ​

(b)   Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 ​

(c)   Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 ​

(d)   Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 ​

5.    The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 ​

(a)   All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

 ​

(b)   Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 ​

Date: November 1, 2024

 ​

 

/s/ Andrew Clark	​
Andrew Clark	​
Vice President and Chief Financial Officer	​
(Principal Financial Officer)	​

 ​

Exhibit 31.3

 ​

CERTIFICATION

 ​

I, Matthew Sullivan, certify that:

 ​

1.    I have reviewed this quarterly report on Form 10-Q of Climb Global Solutions, Inc.;

 ​

2.    Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 ​

3.    Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 ​

4.    The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 ​

(a)   Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 ​

(b)   Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 ​

(c)   Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 ​

(d)   Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 ​

5.    The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 ​

(a)   All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

 ​

(b)   Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 ​

Date: November 1, 2024

 ​

 

/s/ Matthew Sullivan	​
Matthew Sullivan	​
Vice President and Chief Accounting Officer	​
(Principal Accounting Officer)	​

 ​

Exhibit 32.1

 ​

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

 ​

In connection with the Quarterly Report of Climb Global Solutions, Inc. (the “Company”) on Form 10-Q for the period ended September 30, 2024 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Dale Foster, certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that:

 ​

(1)	The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

 ​

(2)	The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

 ​

 

/s/ Dale Foster	​
Dale Foster	​
Chief Executive Officer	​
(Principal Executive Officer)	​
November 1, 2024	​

 ​

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by Company and furnished to the Securities and Exchange Commission or its staff upon request.

Exhibit 32.2

 ​

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

 ​

In connection with the Quarterly Report of Climb Global Solutions, Inc. (the “Company”) on Form 10-Q for the period ended September 30, 2024 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Andrew Clark, certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that:

 ​

(1)	The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

 ​

(2)	The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

 ​

 

/s/ Andrew Clark	​
Andrew Clark	​
Vice President and Chief Financial Officer	​
(Principal Financial Officer)	​
November 1, 2024	​

 ​

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by Company and furnished to the Securities and Exchange Commission or its staff upon request.

Exhibit 32.3

 ​

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

 ​

In connection with the Quarterly Report of Climb Global Solutions, Inc. (the “Company”) on Form 10-Q for the period ended September 30, 2024 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Matthew Sullivan, certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that:

 ​

(1)	The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

 ​

(2)	The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

 ​

 

/s/ Matthew Sullivan	​
Matthew Sullivan	​
Vice President and Chief Accounting Officer	​
(Principal Accounting Officer)	​
November 1, 2024	​

 ​

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by Company and furnished to the Securities and Exchange Commission or its staff upon request.

v3.24.3

Document And Entity Information - shares	9 Months Ended
	Sep. 30, 2024	Oct. 31, 2024
Document Information [Line Items]
Entity Central Index Key	0000945983
Entity Registrant Name	Climb Global Solutions, Inc.
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2024
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2024
Document Transition Report	false
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 Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		4,606,790

v3.24.3

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Current assets:
Cash and cash equivalents	$ 22,139	$ 36,295
Accounts receivable, net of allowance for doubtful accounts of $640 and $709, respectively	247,907	222,269
Inventory, net	4,445	3,741
Prepaid expenses and other current assets	6,629	6,755
Total current assets	281,120	269,060
Equipment and leasehold improvements, net	12,151	8,850
Goodwill	29,628	27,182
Other intangibles, net	46,041	26,930
Right-of-use assets, net	937	878
Accounts receivable, net of current portion	752	797
Other assets	863	1,077
Deferred income tax assets	448	324
Total assets	371,940	335,098
Current liabilities:
Accounts payable and accrued expenses	273,893	249,648
Lease liabilities, current portion	533	450
Term loan, current portion	555	540
Total current liabilities	274,981	250,638
Lease liabilities, net of current portion	796	879
Deferred income tax liabilities	5,671	5,554
Term loan, net of current portion	334	752
Other non-current liabilities	2,490	2,505
Total liabilities	284,272	260,328
Commitments and contingencies
Stockholders’ equity:
Common stock, $.01 par value; 10,000,000 shares authorized; 5,284,500 shares issued: 4,606,790 and 4,573,448 shares outstanding, respectively	53	53
Additional paid-in capital	36,676	34,647
Treasury stock, at cost, 677,710 and 711,052 shares, respectively	(12,777)	(12,623)
Retained earnings	62,560	53,215
Accumulated other comprehensive income (loss)	1,156	(522)
Total stockholders’ equity	87,668	74,770
Total liabilities and stockholders' equity	$ 371,940	$ 335,098

v3.24.3

Condensed Consolidated Balance Sheets (Unaudited) (Parentheticals) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Allowance for doubtful accounts	$ 640	$ 709
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, authorized (in shares)	10,000,000	10,000,000
Common stock, issued (in shares)	5,284,500	5,284,500
Common stock, outstanding (in shares)	4,606,790	4,573,448
Treasury stock, shares (in shares)	677,710	711,052

v3.24.3

Condensed Consolidated Statements of Earnings (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Net sales	$ 119,349	$ 78,457	$ 303,847	$ 245,229
Cost of sales, excluding depreciation and amortization expense	95,092	64,183	244,014	202,053
Gross profit	24,257	14,274	59,833	43,176
Selling, general, and administrative expenses	13,937	10,122	39,433	31,930
Acquisition related costs	609	246	1,201	277
Depreciation and amortization expense	1,197	617	2,933	1,934
Income from operations	8,514	3,289	16,266	9,035
Other income:
Interest, net	198	318	755	760
Foreign currency transaction loss	(442)	(140)	(688)	(100)
Change in fair value of acquisition contingent consideration	(1,152)	0	(1,152)	0
Income before provision for income taxes	7,118	3,467	15,181	9,695
Provision for income taxes	1,659	1,095	3,561	2,618
Net income	$ 5,459	$ 2,372	$ 11,620	$ 7,077
Income per common share-Basic (in dollars per share)	$ 1.19	$ 0.52	$ 2.54	$ 1.57
Income per common share-Diluted (in dollars per share)	$ 1.19	$ 0.52	$ 2.54	$ 1.57
Weighted average common shares outstanding — Basic (in shares)	4,476	4,414	4,458	4,392
Weighted average common shares outstanding — Diluted (in shares)	4,476	4,414	4,458	4,392

v3.24.3

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Net income	$ 5,459	$ 2,372	$ 11,620	$ 7,077
Other comprehensive income (loss):
Foreign currency translation adjustments, net of taxes	2,517	(1,442)	1,678	175
Other comprehensive income (loss)	2,517	(1,442)	1,678	175
Comprehensive income	$ 7,976	$ 930	$ 13,298	$ 7,252

v3.24.3

Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands	Common Stock [Member]	Additional Paid-in Capital [Member]	Treasury Stock, Common [Member]	Retained Earnings [Member]	AOCI Attributable to Parent [Member]	Total
Balance (in shares) at Dec. 31, 2022	5,284,500		806,068
Balance at Dec. 31, 2022	$ 53	$ 32,715	$ (13,230)	$ 43,904	$ (2,868)	$ 60,574
Net income	0	0	0	3,324	0	3,324
Foreign currency translation adjustments, net of taxes	0	0	0	0	613	613
Dividends paid (per common share $0.17)	0	0	0	(749)	0	(749)
Share-based compensation expense	$ 0	546	$ 0		0	546
Restricted stock grants (net of forfeitures) (in shares)	0		(43,824)
Restricted stock grants (net of forfeitures)	$ 0	(765)	$ 765	0	0	0
Treasury shares repurchased		0	$ (214)	0	0	(214)
Treasury shares repurchased (in shares)			5,604
Balance (in shares) at Mar. 31, 2023	5,284,500		767,848
Balance at Mar. 31, 2023	$ 53	32,496	$ (12,679)	46,479	(2,255)	64,094
Balance (in shares) at Dec. 31, 2022	5,284,500		806,068
Balance at Dec. 31, 2022	$ 53	32,715	$ (13,230)	43,904	(2,868)	60,574
Net income						7,077
Foreign currency translation adjustments, net of taxes						175
Balance (in shares) at Sep. 30, 2023	5,284,500		704,872
Balance at Sep. 30, 2023	$ 53	33,895	$ (12,357)	48,724	(2,693)	67,622
Balance (in shares) at Mar. 31, 2023	5,284,500		767,848
Balance at Mar. 31, 2023	$ 53	32,496	$ (12,679)	46,479	(2,255)	64,094
Net income	0	0	0	1,381	0	1,381
Foreign currency translation adjustments, net of taxes	0	0	0	0	1,004	1,004
Dividends paid (per common share $0.17)	0	0	0	(754)	0	(754)
Share-based compensation expense	$ 0	2,238	$ 0		0	2,238
Restricted stock grants (net of forfeitures) (in shares)	0		(71,965)
Restricted stock grants (net of forfeitures)	$ 0	(1,258)	$ 1,258	0	0	0
Treasury shares repurchased		0	$ (981)	0	0	(981)
Treasury shares repurchased (in shares)			19,703
Balance (in shares) at Jun. 30, 2023	5,284,500		715,586
Balance at Jun. 30, 2023	$ 53	33,476	$ (12,402)	47,106	(1,251)	66,982
Net income	0	0	0	2,372	0	2,372
Foreign currency translation adjustments, net of taxes	0	0	0	0	(1,442)	(1,442)
Dividends paid (per common share $0.17)	0	0	0	(754)	0	(754)
Share-based compensation expense	$ 0	711	$ 0	0	0	711
Restricted stock grants (net of forfeitures) (in shares)	0		(16,737)
Restricted stock grants (net of forfeitures)	$ 0	(292)	$ 292	0	0	0
Treasury shares repurchased	$ 0	0	$ (247)	0	0	(247)
Treasury shares repurchased (in shares)			6,023
Balance (in shares) at Sep. 30, 2023	5,284,500		704,872
Balance at Sep. 30, 2023	$ 53	33,895	$ (12,357)	48,724	(2,693)	67,622
Balance (in shares) at Dec. 31, 2023	5,284,500		711,052
Balance at Dec. 31, 2023	$ 53	34,647	$ (12,623)	53,215	(522)	74,770
Net income	0	0	0	2,731	0	2,731
Foreign currency translation adjustments, net of taxes	0	0	0	0	(718)	(718)
Dividends paid (per common share $0.17)	0	0	0	(756)	0	(756)
Share-based compensation expense	$ 0	854	$ 0		0	854
Restricted stock grants (net of forfeitures) (in shares)	0		(18,938)
Restricted stock grants (net of forfeitures)	$ 0	(331)	$ 331	0	0	0
Treasury shares repurchased		0	$ (432)	0	0	(432)
Treasury shares repurchased (in shares)			7,255
Balance (in shares) at Mar. 31, 2024	5,284,500		699,369
Balance at Mar. 31, 2024	$ 53	35,170	$ (12,724)	55,190	(1,240)	76,449
Balance (in shares) at Dec. 31, 2023	5,284,500		711,052
Balance at Dec. 31, 2023	$ 53	34,647	$ (12,623)	53,215	(522)	74,770
Net income						11,620
Foreign currency translation adjustments, net of taxes						1,678
Balance (in shares) at Sep. 30, 2024	5,284,500		677,710
Balance at Sep. 30, 2024	$ 53	36,676	$ (12,777)	62,560	1,156	87,668
Balance (in shares) at Mar. 31, 2024	5,284,500		699,369
Balance at Mar. 31, 2024	$ 53	35,170	$ (12,724)	55,190	(1,240)	76,449
Net income	0	0	0	3,430	0	3,430
Foreign currency translation adjustments, net of taxes	0	0	0	0	(121)	(121)
Dividends paid (per common share $0.17)	0	0	0	(758)	0	(758)
Share-based compensation expense	$ 0	1,113	$ 0		0	1,113
Restricted stock grants (net of forfeitures) (in shares)	0		(31,213)
Restricted stock grants (net of forfeitures)	$ 0	(545)	$ 545	0	0	0
Treasury shares repurchased		0	$ (283)	0	0	(283)
Treasury shares repurchased (in shares)			4,817
Balance (in shares) at Jun. 30, 2024	5,284,500		672,973
Balance at Jun. 30, 2024	$ 53	35,738	$ (12,462)	57,862	(1,361)	79,830
Net income	0	0	0	5,459	0	5,459
Foreign currency translation adjustments, net of taxes	0	0	0	0	2,517	2,517
Dividends paid (per common share $0.17)	0	0	0	(761)	0	(761)
Share-based compensation expense	0	938	0	0	0	938
Restricted stock grants (net of forfeitures)	0	0	0	0	0	0
Treasury shares repurchased	$ 0	0	$ (315)	0	0	(315)
Treasury shares repurchased (in shares)			4,737
Balance (in shares) at Sep. 30, 2024	5,284,500		677,710
Balance at Sep. 30, 2024	$ 53	$ 36,676	$ (12,777)	$ 62,560	$ 1,156	$ 87,668

v3.24.3

Condensed Consolidated Statements of Stockholders' Equity (Unaudited) (Parentheticals) - $ / shares	3 Months Ended
	Sep. 30, 2024	Jun. 30, 2024	Mar. 31, 2024	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023
Dividend paid per common share (in dollars per share)	$ 0.17	$ 0.17	$ 0.17	$ 0.17	$ 0.17	$ 0.17

v3.24.3

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Cash flows from operating activities
Net income	$ 11,620	$ 7,077
Adjustments to reconcile net income to net cash and cash equivalents provided by operating activities:
Depreciation and amortization expense	2,933	1,934
Provision for doubtful accounts	88	34
Deferred income tax benefit	(163)	(108)
Share-based compensation expense	2,810	3,422
Amortization of discount on accounts receivable	(23)	(41)
Amortization of right-of-use assets	307	304
Change in fair value of contingent earn-out consideration	1,152	(0)
Changes in operating assets and liabilities:
Accounts receivable	(24,145)	30,438
Inventory	(690)	2,247
Prepaid expenses and other current assets	435	(882)
Vendor prepayments	0	890
Accounts payable and accrued expenses	25,407	(8,185)
Lease liability, net	(361)	(399)
Other assets and liabilities	(1,608)	1,624
Net cash and cash equivalents provided by operating activities	17,762	38,355
Cash flows from investing activities
Purchase of equipment and leasehold improvements	(3,592)	(4,180)
Payment for acquisition	(20,672)	0
Net cash and cash equivalents used in investing activities	(24,264)	(4,180)
Cash flows from financing activities
Purchase of treasury stock	(1,030)	(1,441)
Borrowings under credit facilities	0	10,000
Repayments of borrowings under credit facilities	(4,252)	(10,000)
Repayments of borrowings under term loan	(403)	(388)
Dividends paid	(2,275)	(2,256)
Contingent consideration paid	(152)	0
Payments of deferred financing costs	0	(638)
Net cash and cash equivalents used in financing activities	(8,112)	(4,723)
Effect of foreign exchange rate on cash and cash equivalents	458	81
Net increase in cash and cash equivalents	(14,156)	29,533
Cash and cash equivalents at beginning of period	36,295	20,245
Cash and cash equivalents at end of period	22,139	49,778
Supplementary disclosure of cash flow information:
Income taxes paid	2,867	4,126
Interest paid	$ 177	$ 30

v3.24.3

Note 1 - Basis of Presentation	9 Months Ended
	Sep. 30, 2024
Notes to Financial Statements
Basis of Accounting [Text Block]	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.

v3.24.3

Note 2 - Recently Issued Accounting Standards	9 Months Ended
	Sep. 30, 2024
Notes to Financial Statements
Accounting Standards Update and Change in Accounting Principle [Text Block]	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.

v3.24.3

Note 3 - Foreign Currency Translation	9 Months Ended
	Sep. 30, 2024
Notes to Financial Statements
Foreign Currency Disclosure [Text Block]	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 September 30, 2024 and 2023 were $37.5 million and $14.0 million, respectively. The net sales from our foreign operations for the nine months ended September 30, 2024 and 2023 were $88.6 million and $55.0 million, respectively.   The Company’s foreign currency exposure relates primarily to international transactions where the currency collected from customers can be different from the currency used to purchase the product. In cases where the Company is not able to create a natural hedge by maintaining offsetting asset and liability amounts in the same currency, it may enter into foreign exchange contracts, typically in the form of forward purchase agreements, to facilitate the hedging of foreign currency exposures to mitigate the impact of changes in foreign currency exchange rates. These contracts generally have terms of no more than three months. The Company does not apply hedge accounting to these contracts and therefore the changes in fair value are recorded in earnings. The Company does not enter into foreign exchange contracts for trading purposes and the risk of loss on a foreign exchange contract is the risk of nonperformance by the counterparties, which the Company minimizes by limiting its counterparties to major financial institutions. The Company recognized an unrealized loss of approximately $0.1 million on contracts outstanding as of September 30, 2024, which is included in foreign currency transaction loss in the Consolidated Statements of Earnings.

v3.24.3

Note 4 - Comprehensive Income	9 Months Ended
	Sep. 30, 2024
Notes to Financial Statements
Comprehensive Income (Loss) Note [Text Block]	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.”

v3.24.3

Note 5 - Revenue Recognition	9 Months Ended
	Sep. 30, 2024
Notes to Financial Statements
Revenue from Contract with Customer [Text Block]	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.

v3.24.3

Note 6 - Acquisition	9 Months Ended
	Sep. 30, 2024
Notes to Financial Statements
Business Combination Disclosure [Text Block]	6.            Acquisition:  ​                Acquisition of Douglas Stewart Software & Services, LLC   On  July 31, 2024, Climb Global Solutions DSS, LLC, a wholly-owned subsidiary of the Company, entered into a Membership Interest Purchase Agreement (the “Purchase Agreement”) and purchased the entire share capital of Douglas Stewart Software & Services, LLC ("DSS"), a Florida limited liability company, for an aggregate purchase price of approximately $20.3 million (subject to certain adjustments) plus a potential post-closing earnout payment. DSS distributes software to VARs and campus stores across North America in both the K-12 and higher education markets, furthering the Company's reach into these markets. The Purchase Agreement contains customary representations, warranties, covenants and indemnities. The acquisition was funded utilizing cash from the Company’s balance sheet.   The financial position and operating results of DSS is included in the Company’s consolidated financial statements from the date of the acquisition. The Company recorded net revenue for DSS of approximately $6.8 million and net income of approximately $1.0 million during the three and nine months ended September 30, 2024, respectively.   The impact of the acquisition’s preliminary purchase price allocations on the Company’s consolidated balance sheet and the acquisition date fair value of the total consideration transferred is depicted in the table below. Due to the timing of the closing of the transaction in the third quarter of 2024, the Company has not yet completed its evaluation and determination of certain assets acquired and liabilities assumed, primarily the final valuation of goodwill and intangible assets; therefore, the final fair value of the assets acquired and liabilities assumed, which will be completed within the measurement period of up to one year from the acquisition date, may vary from the Company’s preliminary estimates:   (in thousands)         Prepaid expenses and other current assets   $ 773   Inventory     18   Right-of-use asset     291   Other assets     8   Accounts payable and accrued expenses     (384 ) Lease liability, current portion     (88 ) Lease liability, non-current portion     (249 ) Intangibles - Vendor Relationships     20,630   Goodwill     1,398   Net assets   $ 22,397       (in thousands)         Supplementary information:         Cash paid to sellers   $ 20,672   Contingent earn-out     1,725   Total purchase consideration   $ 22,397               Intangible assets are comprised of approximately $20.6 million of vendor relationships with a weighted average amortization period of 11 years, representing the expected period of benefits. Goodwill, which was allocated to the Distribution segment, is the excess of the consideration transferred over the net assets recognized and represents the expected revenue and cost synergies of the combined company and assembled workforce. Goodwill recognized as a result of the acquisition is not deductible for income tax purposes.   The Company used the income approach to value the intangible assets, representing acquired vendor relationships. The fair value measurements were primarily based on significant inputs that are not observable, which are categorized as a Level 3 measurement in the fair value hierarchy (See Note 18 – Fair Value Measurements). Inputs used to value these intangible assets include the discount rate, projection of all future cash flows, long-term growth rates, vendor attrition rates and applicable income tax rates. The excess purchase price recorded to goodwill primarily represents the future economic benefits the Company expects to achieve as a result of combining operations and expanding vendor relationships.   The purchase consideration included approximately $1.7 million fair value for potential earn-out consideration if certain targets are achieved by September 30, 2025, payable in cash.  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), reflecting its assessment of the assumptions market participants would use to value these liabilities. The undiscounted payment of the earn-out can range from zero up to approximately $4.2 million and achievement is based on the post-acquisition results of DSS.               Acquisition of Data Solutions Holdings Limited   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 included approximately $2.3 million fair value for potential earn-out consideration if certain targets are achieved, payable in cash. As of September 30, 2024, the Company reassessed the earn-out liability and increased the fair value of the earn out liability to approximately $3.5 million, with $1.2 million adjustment recognized within change in fair value of acquisition contingent consideration during the three and nine months ended September 30, 2024. The earn-out liability is included in current liabilities as of  September 30, 2024 and December 31, 2023, as payment will be due during the fourth quarter of 2024.  ​ 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 September 30, 2024 was zero, as the Company terminated the IDF during the period, compared to $4.3 million at December 31, 2023, which is included in accounts payable and accrued expenses on the Consolidated Balance Sheets.   During the three months ended  September 30, 2024 and 2023, the Company recognized acquisition related costs of $0.6 million and $0.2 million, respectively. During the nine months ended September 30, 2024 and 2023, the Company recognized acquisition related costs of $1.2 million and $0.3 million. These acquisition related costs are reflected in the accompanying consolidated statements of earnings. The costs incurred during the three and nine months ended September 30, 2024 primarily related to the aforementioned DSS acquisition, while the costs incurred during the prior period three and nine months ended September 30, 2023 related to the aforementioned Data Solutions acquisition.   Pro Forma Results (unaudited)   The following unaudited pro forma financial information summarizes the results of operations for the three and nine months ended September 30, 2024 and 2023 as if the acquisition of DSS and Data Solutions has been completed as of the beginning of the three and nine months ended September 30, 2024 and 2023, respectively. The pro forma results are based upon certain assumptions and estimates, and they give effect to actual operating results prior to the acquisitions and adjustments to reflect income taxes at a rate consistent with the tax rates of the local jurisdictions. As a result, these pro forma results do not necessarily represent results that would have occurred if the acquisitions had taken place on the basis assumed above, nor are they indicative of the results of future combined periods.       Nine months ended     Three months ended       September 30,     September 30,       2024     2023     2024     2023   Net sales   $ 318,268     $ 279,918     $ 123,437     $ 94,850   Net income   $ 13,745     $ 11,217     $ 6,295     $ 4,757

v3.24.3

Note 7 - Goodwill and Other Intangible Assets	9 Months Ended
	Sep. 30, 2024
Notes to Financial Statements
Goodwill and Intangible Assets Disclosure [Text Block]	7.            Goodwill and Other Intangible Assets:  ​ The following table summarizes the changes in the carrying amount of goodwill for the nine months ended September 30, 2024:  ​ ​   Distribution     Solutions     Consolidated   Balance December 31, 2023   $ 18,658     $ 8,524     $ 27,182   Goodwill acquired   $ 1,398     $ —       1,398   Translation adjustments     609       439       1,048   Balance September 30, 2024   $ 20,665     $ 8,963     $ 29,628     Information related to the Company’s other intangibles, net is as follows:  ​ ​   As of September 30, 2024   ​   Gross             Net       Carrying     Accumulated     Carrying       Amount     Amortization     Amount   Customer and vendor relationships   $ 52,770     $ 7,109     $ 45,661   Trade name     514       134       380   Total   $ 53,284     $ 7,243     $ 46,041     ​   As of December 31, 2023   ​   Gross             Net       Carrying     Accumulated     Carrying       Amount     Amortization     Amount   Customer and vendor relationships   $ 30,968     $ 4,424     $ 26,544   Trade name     489       103       386   Total   $ 31,457     $ 4,527     $ 26,930     Customer relationships are amortized over thirteen years. Vendor relationships are amortized between eight and fifteen years. Trade name is amortized over fifteen years.  ​ During the three months ended September 30, 2024 and 2023, the Company recognized total amortization expense for other intangibles, net of $1.1 million and $0.5 million, respectively. During the nine months ended September 30, 2024 and 2023, the Company recognized total amortization expense for other intangibles, net of $2.5 million and $1.5 million, respectively.  ​ Estimated future amortization expense of the Company’s other intangibles, net as of September 30, 2024 is as follows:  ​ 2024 (excluding the nine months ended September 30, 2024)   $ 1,211   2025     4,845   2026     4,845   2027     4,845   2028     4,845   Thereafter     25,450   Total   $ 46,041

v3.24.3

Note 8 - Right-of-use Asset and Lease Liability	9 Months Ended
	Sep. 30, 2024
Notes to Financial Statements
Lessee, Operating Leases [Text Block]	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:  ​ ​   Nine months ended   ​   September 30,   ​   2024     2023   Cash paid for operating lease liabilities   $ 500     $ 467   Right-of-use assets obtained in exchange for new operating lease obligations   $ 360     $ —   Weighted-average remaining lease term (years)     2.6       3.4   Weighted-average discount rate     4.4 %     3.5 %   Maturities of lease liabilities as of September 30, 2024 were as follows:  ​ 2024 (excluding the nine months ended September 30, 2024)   $ 188   2025     654   2026     650   2027     226   2028   17   ​     1,735   Less: imputed interest     (406 ) Total lease liabilities   $ 1,329   ​   ​   Lease liabilities, current portion     533   Lease liabilities, net of current portion     796   Total lease liabilities   $ 1,329

v3.24.3

Note 9 - Fair Value	9 Months Ended
	Sep. 30, 2024
Notes to Financial Statements
Fair Value Disclosures [Text Block]	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 September 30, 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.

v3.24.3

Note 10 - Balance Sheet Detail	9 Months Ended
	Sep. 30, 2024
Notes to Financial Statements
Supplemental Balance Sheet Disclosures [Text Block]	10.         Balance Sheet Detail:  ​ Equipment and leasehold improvements consist of the following:  ​ ​   September 30,     December 31,   ​   2024     2023   Equipment   $ 3,540     $ 3,195   Capitalized software     10,240       6,890   Buildings     717       709   Leasehold improvements     2,433       2,385   ​     16,931       13,179   Less accumulated depreciation and amortization     (4,780 )     (4,329 ) ​   $ 12,151     $ 8,850     During the three months ended September 30, 2024 and 2023, depreciation and amortization expense remained consistent at $0.1 million, respectively. During the nine months ended September 30, 2024 and 2023, the Company recorded depreciation and amortization expense of $0.4 million and $0.5 million, respectively.   ​ In limited circumstances, the Company offers extended payment terms to customers for periods of 12 to 36 months. The related customer receivables are classified as accounts receivable long-term and discounted to their present value at prevailing market rates at the time of sale. In subsequent periods, the accounts receivable is increased to the amounts due and payable by the customers through the accretion of interest income on the unpaid accounts receivable due in future years. The amounts under these long-term accounts receivable due within one year are reclassified to the current portion of accounts receivable. Accounts receivable long term, net consists of the following:  ​ ​   September 30,     December 31,   ​   2024     2023   Total amount due from customer   $ 1,206     $ 1,637   Less: unamortized discount     (9 )     (12 ) Less: current portion included in accounts receivable     (445 )     (828 ) ​   $ 752     $ 797     The undiscounted cash flows to be received by the Company relating to these accounts receivable long-term is expected to be $0.4 million during each of the 12-month periods ending September 30, 2025, 2026, and 2027.  ​ Accounts payable and accrued expenses consist of the following:  ​ ​   September 30,     December 31,   ​   2024     2023   Trade accounts payable   $ 240,630     $ 218,717   Accrued expenses     21,605       22,903   Other accounts payable and accrued expenses     11,658       8,028   ​   $ 273,893     $ 249,648

v3.24.3

Note 11 - Credit Facility	9 Months Ended
	Sep. 30, 2024
Notes to Financial Statements
Debt Disclosure [Text Block]	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 September 30, 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 were 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 September 30, 2024 and December 31, 2023, the Company had$0.9 million and $1.3 million outstanding under the Term Loan, respectively. At September 30, 2024, future principal payments under the Term Loan are as follows:  ​ 2024 (excluding the nine months ended September 30, 2024)     183   2025     562   2026     144   Total   $ 889     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 Company subsequently terminated the IDF during the nine months ended September 30, 2024. The proceeds from the IDF were used for working capital needs of Data Solutions. Borrowings under the IDF were 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. The balance outstanding under the IDF at September 30, 2024 was zero, as the Company terminated the IDF during the period, compared to $4.3 million at December 31, 2023, which is included in accounts payable and accrued expenses on the Consolidated Balance Sheets.  ​

v3.24.3

Note 12 - Earnings Per Share	9 Months Ended
	Sep. 30, 2024
Notes to Financial Statements
Earnings Per Share [Text Block]	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:  ​ ​   Nine months ended     Three months ended   ​   September 30,     September 30,   ​   2024     2023     2024     2023   Numerator:   ​     ​     ​     ​   Net income   $ 11,620     $ 7,077     $ 5,459     $ 2,372                                     Less distributed and undistributed income allocated to participating securities     288       171       139       61                                     Net income attributable to common shareholders     11,332       6,906       5,320       2,311                                     Denominator:                                 Weighted average common shares (Basic)     4,458       4,392       4,476       4,414                                     Weighted average common shares including assumed conversions (Diluted)     4,458       4,392       4,476       4,414                                     Basic net income per share   $ 2.54     $ 1.57     $ 1.19     $ 0.52   Diluted net income per share   $ 2.54     $ 1.57     $ 1.19     $ 0.52

v3.24.3

Note 13 - Major Customers and Vendors	9 Months Ended
	Sep. 30, 2024
Notes to Financial Statements
Concentration Risk Disclosure [Text Block]	13.          Major Customers and Vendors:  ​ The Company had one major vendor that accounted for 8% of total purchases during the three months ended September 30, 2024, and 15% of total purchases during the three months ended September 30, 2023. The Company had one major vendor that accounted for 11% of total purchases during the nine months ended September 30, 2024, and 16% of total purchases during the nine months ended September 30, 2023.  ​ The Company had two major customers that accounted for 16% and 13%, respectively, of its net sales during the three months ended September 30, 2024, and 21% and 17%, respectively, of its net sales during the three months ended September 30, 2023. The Company had two major customers that accounted for 18% and 15%, respectively, of its net sales during the nine months ended September 30, 2024, and 21% and 15%, respectively, of its net sales during the nine months ended September 30, 2023. These same customers accounted for 13% and 6%, respectively, of total net accounts receivable as of September 30, 2024, and 15% and 6%, respectively, of total net accounts receivable as of December 31, 2023.

v3.24.3

Note 14 - Income Taxes	9 Months Ended
	Sep. 30, 2024
Notes to Financial Statements
Income Tax Disclosure [Text Block]	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.

v3.24.3

Note 15 - Stockholders' Equity and Stock Based Compensation	9 Months Ended
	Sep. 30, 2024
Notes to Financial Statements
Share-Based Payment Arrangement [Text Block]	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 September 30, 2024, the number of shares of Common Stock available for future award grants to employees, officers and directors under the 2021 Plan is 190,917.   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 September 30, 2024, the number of shares of Common Stock available under the 2012 Plan was zero.   During the nine months ended September 30, 2024, the Company granted a total of 51,812 shares of Restricted Stock to directors, 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 nine months ended September 30, 2024, a total of 1,661 shares of Restricted Stock were forfeited.  ​ During the nine months ended September 30, 2023, the Company granted a total of 132,526 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.   A summary of nonvested shares of Restricted Stock awards outstanding under the 2012 and 2021 Plans as of September 30, 2024, and changes during the nine 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     51,812       58.83   Vested in 2024     (64,351 )     35.51   Forfeited in 2024     (1,661 )     42.58   Nonvested shares at September 30, 2024     129,094     $ 45.85     As of September 30, 2024, there is approximately $5.2 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 2.2 years.   During the three months ended September 30, 2024 and 2023, the Company recognized share-based compensation expense of $0.9 million and $0.7 million, respectively. During the nine months ended September 30, 2024 and 2023, the Company recognized share-based compensation expense of $2.8 million and $3.4 million, respectively.

v3.24.3

Note 16 - Segment Information	9 Months Ended
	Sep. 30, 2024
Notes to Financial Statements
Segment Reporting Disclosure [Text Block]	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. The Company's reportable segments are based on products and services delivered, and the Company's CODM decides how to assess performance and allocate resources based on segment.  ​ 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:  ​ ​   Nine months ended     Three months ended   ​   September 30,     September 30,   ​   2024     2023     2024     2023   Net Sales:   ​     ​     ​     ​   Distribution   $ 286,523     $ 226,905     $ 111,861     $ 72,227   Solutions     17,324       18,324       7,488       6,230   ​     303,847       245,229       119,349       78,457   Gross Profit:   ​     ​     ​     ​   Distribution   $ 51,454     $ 35,472     $ 21,557     $ 11,671   Solutions     8,379       7,704       2,700       2,603   ​     59,833       43,176       24,257       14,274   Direct Costs:   ​     ​     ​     ​   Distribution   $ 23,342     $ 15,225     $ 8,430     $ 5,249   Solutions     4,013       3,844       1,330       1,226   ​     27,355       19,069       9,760       6,475   Segment Income Before Taxes: (1)   ​     ​     ​     ​   Distribution   $ 28,112     $ 20,247     $ 13,127     $ 6,422   Solutions     4,366       3,860       1,370       1,377   Segment Income Before Taxes     32,478       24,107       14,497       7,799   ​   ​     ​     ​     ​   General and administrative   $ 12,078     $ 12,861     $ 4,177     $ 3,647   Acquisition related costs     1,201       277       609       246   Depreciation and amortization expense     2,933       1,934       1,197       617   Interest, net     755       760       198       318   Foreign currency transaction loss     (688 )     (100 )     (442 )     (140 ) Change in fair value of acquisition contingent consideration     (1,152 )     —       (1,152 )     —   Income before taxes   $ 15,181     $ 9,695     $ 7,118     $ 3,467     (1) Excludes general corporate expenses including interest and foreign currency transaction loss  ​ ​   As of     As of   ​   September 30,     December 31,   Selected Assets by Segment:   2024     2023   ​   ​     ​   Distribution   $ 306,914     $ 242,927   Solutions     21,860       37,992   Segment Select Assets     328,774       280,919   Corporate Assets     43,166       54,179   Total Assets   $ 371,940     $ 335,098     Geographic areas and net sales mix related to operations for the three and nine months ended September 30, 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.  ​     Nine months ended     Three months ended       September 30, 2024     September 30, 2024   ​   Distribution     Solutions     Total     Distribution     Solutions     Total   Geography                   ​                     ​   USA   $ 208,462     $ 6,808     $ 215,270     $ 78,012     $ 3,818     $ 81,830   Europe and United Kingdom     62,135       9,702       71,837       29,494       3,418       32,912   Canada     15,926       814       16,740       4,355       252       4,607   Total net sales   $ 286,523     $ 17,324     $ 303,847     $ 111,861     $ 7,488     $ 119,349   ​   ​     ​     ​     ​     ​     ​   Timing of Revenue Recognition                   ​                     ​   Transferred at a point in time where the Company is principal (1)   $ 253,027     $ 10,969     $ 263,996     $ 101,561     $ 5,074     $ 106,635   Transferred at a point in time where the Company is agent (2)     33,496       6,355       39,851       10,300       2,414       12,714   Total net sales   $ 286,523     $ 17,324     $ 303,847     $ 111,861     $ 7,488     $ 119,349         Nine months ended     Three months ended       September 30, 2023     September 30, 2023   ​   Distribution     Solutions     Total     Distribution     Solutions     Total   Geography                   ​                     ​   USA   $ 180,278     $ 9,908     $ 190,186     $ 60,891     $ 3,605     $ 64,496   Europe and United Kingdom     28,903       7,508       36,411       6,353       2,418       8,771   Canada     17,724       908       18,632       4,983       207       5,190   Total net sales   $ 226,905     $ 18,324     $ 245,229     $ 72,227     $ 6,230     $ 78,457   ​   ​     ​     ​     ​     ​     ​   Timing of Revenue Recognition                   ​                     ​   Transferred at a point in time where the Company is principal (1)   $ 200,027     $ 13,290     $ 213,317     $ 63,587     $ 4,422     $ 68,009   Transferred at a point in time where the Company is agent (2)     26,878       5,034       31,912       8,640       1,808       10,448   Total net sales   $ 226,905     $ 18,324     $ 245,229     $ 72,227     $ 6,230     $ 78,457     (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  September 30, 2024 and  December 31, 2023 were as follows.  ​ ​   September 30,     December 31,   Identifiable Assets by Geographic Areas   2024     2023   USA   $ 226,717     $ 171,080   Canada     25,345       23,994   Europe and United Kingdom     119,878       140,024   Total   $ 371,940     $ 335,098

v3.24.3

Note 17 - Related Party Transactions	9 Months Ended
	Sep. 30, 2024
Notes to Financial Statements
Related Party Transactions Disclosure [Text Block]	17.         Related Party Transactions:   The Company made sales to a customer where a family member of one of our executives previously had a minority ownership position. The minority ownership position terminated during the nine months ended September 30, 2024. During the three months ended September 30, 2024, there were no sales to this customer prior to the ownership position termination. During the three months ended September 30, 2023, net sales to this customer totaled approximately $0.3 million. During the nine months ended September 30, 2024 and 2023, net sales to this customer totaled approximately $0.7 million and $1.3 million, respectively. Amounts due from this customer as of  September 30, 2024 and  December 31, 2023 were zero and less than $0.1 million, respectively, which was settled in cash subsequent to each period end.

v3.24.3

Note 18 - Fair Value Measurements	9 Months Ended
	Sep. 30, 2024
Notes to Financial Statements
Fair Value Measurement and Measurement Inputs, Recurring and Nonrecurring [Text Block]	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 September 30, 2024 and  December 31, 2023, respectively, are as follows:  ​ ​   As of September 30, 2024   ​   Level 1     Level 2     Level 3     Total   Assets:   ​     ​     ​     ​   Treasury bills   $ —     $ —     $ —     $ —   Total assets   $ —     $ —     $ —     $ —   ​   ​     ​     ​     ​   Liabilities:   ​     ​     ​     ​   Contingent earn-out   $ —     $ —     $ 7,064     $ 7,064   Total liabilities   $ —     $ —     $ 7,064     $ 7,064     ​   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 December 31, 2023   $ 4,189   DSS acquisition - contingent earn-out     1,755   Contingent earnout paid     (150 ) Change in fair value of acquisition contingent consideration     1,152   Translation adjustments     118   Balance September 30, 2024   $ 7,064

v3.24.3

Insider Trading Arrangements	3 Months Ended
	Sep. 30, 2024
Insider Trading Arr Line Items
Rule 10b5-1 Arrangement Terminated [Flag]	false
Rule 10b5-1 Arrangement Adopted [Flag]	false
Non-Rule 10b5-1 Arrangement Terminated [Flag]	false
Non-Rule 10b5-1 Arrangement Adopted [Flag]	false

v3.24.3

Note 6 - Acquisition (Tables)	9 Months Ended
	Sep. 30, 2024
Notes Tables
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block]	(in thousands)         Prepaid expenses and other current assets   $ 773   Inventory     18   Right-of-use asset     291   Other assets     8   Accounts payable and accrued expenses     (384 ) Lease liability, current portion     (88 ) Lease liability, non-current portion     (249 ) Intangibles - Vendor Relationships     20,630   Goodwill     1,398   Net assets   $ 22,397
Schedule of Business Acquisitions, by Acquisition [Table Text Block]	(in thousands)         Supplementary information:         Cash paid to sellers   $ 20,672   Contingent earn-out     1,725   Total purchase consideration   $ 22,397
Business Acquisition, Pro Forma Information [Table Text Block]	Nine months ended     Three months ended       September 30,     September 30,       2024     2023     2024     2023   Net sales   $ 318,268     $ 279,918     $ 123,437     $ 94,850   Net income   $ 13,745     $ 11,217     $ 6,295     $ 4,757

v3.24.3

Note 7 - Goodwill and Other Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 2024
Notes Tables
Schedule of Goodwill [Table Text Block]	​   Distribution     Solutions     Consolidated   Balance December 31, 2023   $ 18,658     $ 8,524     $ 27,182   Goodwill acquired   $ 1,398     $ —       1,398   Translation adjustments     609       439       1,048   Balance September 30, 2024   $ 20,665     $ 8,963     $ 29,628
Schedule of Finite-Lived Intangible Assets [Table Text Block]	​   As of September 30, 2024   ​   Gross             Net       Carrying     Accumulated     Carrying       Amount     Amortization     Amount   Customer and vendor relationships   $ 52,770     $ 7,109     $ 45,661   Trade name     514       134       380   Total   $ 53,284     $ 7,243     $ 46,041   ​   As of December 31, 2023   ​   Gross             Net       Carrying     Accumulated     Carrying       Amount     Amortization     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 Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block]	2024 (excluding the nine months ended September 30, 2024)   $ 1,211   2025     4,845   2026     4,845   2027     4,845   2028     4,845   Thereafter     25,450   Total   $ 46,041

v3.24.3

Note 8 - Right-of-use Asset and Lease Liability (Tables)	9 Months Ended
	Sep. 30, 2024
Notes Tables
Lease, Cost [Table Text Block]	​   Nine months ended   ​   September 30,   ​   2024     2023   Cash paid for operating lease liabilities   $ 500     $ 467   Right-of-use assets obtained in exchange for new operating lease obligations   $ 360     $ —   Weighted-average remaining lease term (years)     2.6       3.4   Weighted-average discount rate     4.4 %     3.5 %
Lessee, Operating Lease, Liability, to be Paid, Maturity [Table Text Block]	2024 (excluding the nine months ended September 30, 2024)   $ 188   2025     654   2026     650   2027     226   2028   17   ​     1,735   Less: imputed interest     (406 ) Total lease liabilities   $ 1,329   ​   ​   Lease liabilities, current portion     533   Lease liabilities, net of current portion     796   Total lease liabilities   $ 1,329

v3.24.3

Note 10 - Balance Sheet Detail (Tables)	9 Months Ended
	Sep. 30, 2024
Notes Tables
Property, Plant and Equipment [Table Text Block]	​   September 30,     December 31,   ​   2024     2023   Equipment   $ 3,540     $ 3,195   Capitalized software     10,240       6,890   Buildings     717       709   Leasehold improvements     2,433       2,385   ​     16,931       13,179   Less accumulated depreciation and amortization     (4,780 )     (4,329 ) ​   $ 12,151     $ 8,850
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block]	​   September 30,     December 31,   ​   2024     2023   Total amount due from customer   $ 1,206     $ 1,637   Less: unamortized discount     (9 )     (12 ) Less: current portion included in accounts receivable     (445 )     (828 ) ​   $ 752     $ 797
Schedule of Accounts Payable and Accrued Liabilities [Table Text Block]	​   September 30,     December 31,   ​   2024     2023   Trade accounts payable   $ 240,630     $ 218,717   Accrued expenses     21,605       22,903   Other accounts payable and accrued expenses     11,658       8,028   ​   $ 273,893     $ 249,648

v3.24.3

Note 11 - Credit Facility (Tables)	9 Months Ended
	Sep. 30, 2024
Notes Tables
Schedule of Maturities of Long-Term Debt [Table Text Block]	2024 (excluding the nine months ended September 30, 2024)     183   2025     562   2026     144   Total   $ 889

v3.24.3

Note 12 - Earnings Per Share (Tables)	9 Months Ended
	Sep. 30, 2024
Notes Tables
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]	​   Nine months ended     Three months ended   ​   September 30,     September 30,   ​   2024     2023     2024     2023   Numerator:   ​     ​     ​     ​   Net income   $ 11,620     $ 7,077     $ 5,459     $ 2,372                                     Less distributed and undistributed income allocated to participating securities     288       171       139       61                                     Net income attributable to common shareholders     11,332       6,906       5,320       2,311                                     Denominator:                                 Weighted average common shares (Basic)     4,458       4,392       4,476       4,414                                     Weighted average common shares including assumed conversions (Diluted)     4,458       4,392       4,476       4,414                                     Basic net income per share   $ 2.54     $ 1.57     $ 1.19     $ 0.52   Diluted net income per share   $ 2.54     $ 1.57     $ 1.19     $ 0.52

v3.24.3

Note 15 - Stockholders' Equity and Stock Based Compensation (Tables)	9 Months Ended
	Sep. 30, 2024
Notes Tables
Schedule of Nonvested Share Activity [Table Text Block]	​   ​     Weighted   ​   ​     Average Grant   ​   ​     Date   ​   Shares     Fair Value   Nonvested shares at January 1, 2024     143,294     $ 36.48   Granted in 2024     51,812       58.83   Vested in 2024     (64,351 )     35.51   Forfeited in 2024     (1,661 )     42.58   Nonvested shares at September 30, 2024     129,094     $ 45.85

v3.24.3

Note 16 - Segment Information (Tables)	9 Months Ended
	Sep. 30, 2024
Notes Tables
Schedule of Segment Reporting Information, by Segment [Table Text Block]	​   Nine months ended     Three months ended   ​   September 30,     September 30,   ​   2024     2023     2024     2023   Net Sales:   ​     ​     ​     ​   Distribution   $ 286,523     $ 226,905     $ 111,861     $ 72,227   Solutions     17,324       18,324       7,488       6,230   ​     303,847       245,229       119,349       78,457   Gross Profit:   ​     ​     ​     ​   Distribution   $ 51,454     $ 35,472     $ 21,557     $ 11,671   Solutions     8,379       7,704       2,700       2,603   ​     59,833       43,176       24,257       14,274   Direct Costs:   ​     ​     ​     ​   Distribution   $ 23,342     $ 15,225     $ 8,430     $ 5,249   Solutions     4,013       3,844       1,330       1,226   ​     27,355       19,069       9,760       6,475   Segment Income Before Taxes: (1)   ​     ​     ​     ​   Distribution   $ 28,112     $ 20,247     $ 13,127     $ 6,422   Solutions     4,366       3,860       1,370       1,377   Segment Income Before Taxes     32,478       24,107       14,497       7,799   ​   ​     ​     ​     ​   General and administrative   $ 12,078     $ 12,861     $ 4,177     $ 3,647   Acquisition related costs     1,201       277       609       246   Depreciation and amortization expense     2,933       1,934       1,197       617   Interest, net     755       760       198       318   Foreign currency transaction loss     (688 )     (100 )     (442 )     (140 ) Change in fair value of acquisition contingent consideration     (1,152 )     —       (1,152 )     —   Income before taxes   $ 15,181     $ 9,695     $ 7,118     $ 3,467   ​   As of     As of   ​   September 30,     December 31,   Selected Assets by Segment:   2024     2023   ​   ​     ​   Distribution   $ 306,914     $ 242,927   Solutions     21,860       37,992   Segment Select Assets     328,774       280,919   Corporate Assets     43,166       54,179   Total Assets   $ 371,940     $ 335,098
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block]	Nine months ended     Three months ended       September 30, 2024     September 30, 2024   ​   Distribution     Solutions     Total     Distribution     Solutions     Total   Geography                   ​                     ​   USA   $ 208,462     $ 6,808     $ 215,270     $ 78,012     $ 3,818     $ 81,830   Europe and United Kingdom     62,135       9,702       71,837       29,494       3,418       32,912   Canada     15,926       814       16,740       4,355       252       4,607   Total net sales   $ 286,523     $ 17,324     $ 303,847     $ 111,861     $ 7,488     $ 119,349   ​   ​     ​     ​     ​     ​     ​   Timing of Revenue Recognition                   ​                     ​   Transferred at a point in time where the Company is principal (1)   $ 253,027     $ 10,969     $ 263,996     $ 101,561     $ 5,074     $ 106,635   Transferred at a point in time where the Company is agent (2)     33,496       6,355       39,851       10,300       2,414       12,714   Total net sales   $ 286,523     $ 17,324     $ 303,847     $ 111,861     $ 7,488     $ 119,349       Nine months ended     Three months ended       September 30, 2023     September 30, 2023   ​   Distribution     Solutions     Total     Distribution     Solutions     Total   Geography                   ​                     ​   USA   $ 180,278     $ 9,908     $ 190,186     $ 60,891     $ 3,605     $ 64,496   Europe and United Kingdom     28,903       7,508       36,411       6,353       2,418       8,771   Canada     17,724       908       18,632       4,983       207       5,190   Total net sales   $ 226,905     $ 18,324     $ 245,229     $ 72,227     $ 6,230     $ 78,457   ​   ​     ​     ​     ​     ​     ​   Timing of Revenue Recognition                   ​                     ​   Transferred at a point in time where the Company is principal (1)   $ 200,027     $ 13,290     $ 213,317     $ 63,587     $ 4,422     $ 68,009   Transferred at a point in time where the Company is agent (2)     26,878       5,034       31,912       8,640       1,808       10,448   Total net sales   $ 226,905     $ 18,324     $ 245,229     $ 72,227     $ 6,230     $ 78,457
Long-Lived Assets by Geographic Areas [Table Text Block]	​   September 30,     December 31,   Identifiable Assets by Geographic Areas   2024     2023   USA   $ 226,717     $ 171,080   Canada     25,345       23,994   Europe and United Kingdom     119,878       140,024   Total   $ 371,940     $ 335,098

v3.24.3

Note 18 - Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2024
Notes Tables
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]	​   As of September 30, 2024   ​   Level 1     Level 2     Level 3     Total   Assets:   ​     ​     ​     ​   Treasury bills   $ —     $ —     $ —     $ —   Total assets   $ —     $ —     $ —     $ —   ​   ​     ​     ​     ​   Liabilities:   ​     ​     ​     ​   Contingent earn-out   $ —     $ —     $ 7,064     $ 7,064   Total liabilities   $ —     $ —     $ 7,064     $ 7,064   ​   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
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]	Balance December 31, 2023   $ 4,189   DSS acquisition - contingent earn-out     1,755   Contingent earnout paid     (150 ) Change in fair value of acquisition contingent consideration     1,152   Translation adjustments     118   Balance September 30, 2024   $ 7,064

v3.24.3

Note 3 - Foreign Currency Translation (Details Textual) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Foreign Currency Transaction Loss, before Tax			$ 0.1
Geographic Distribution, Foreign [Member]
Revenue from Contract with Customer, Excluding Assessed Tax	$ 37.5	$ 14.0	$ 88.6	$ 55.0

v3.24.3

Note 6 - Acquisition (Details Textual) $ in Thousands, € in Millions				3 Months Ended		9 Months Ended
	Jul. 31, 2024 USD ($)	Oct. 06, 2023 USD ($)	Oct. 06, 2023 EUR (€)	Sep. 30, 2024 USD ($)	Sep. 30, 2023 USD ($)	Sep. 30, 2024 USD ($)	Sep. 30, 2023 USD ($)	Dec. 31, 2023 USD ($)
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability				$ 1,152	$ (0)	$ 1,152	$ (0)
Accounts Payable, Current				240,630		240,630		$ 218,717
Business Combination, Acquisition Related Costs				609	246	1,201	277
Douglas Stewart Software & Services, LLC [Member]
Business Combination, Consideration Transferred	$ 22,397
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual				6,800
Business Combination, Pro Forma Information, Earnings or Loss of Acquiree since Acquisition Date, Actual						1,000
Business Combination, Contingent Consideration, Liability	1,700
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, Low	0
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High	4,200
Douglas Stewart Software & Services, LLC [Member] | Vendor Relationships [Member]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill	$ 20,600
Acquired Finite-Lived Intangible Assets, Weighted Average Useful Life (Year)	11 years
Douglas Stewart Software & Services, LLC [Member] | Minimum [Member]
Business Combination, Consideration Transferred	$ 20,300
Data Solutions Holdings Limited [Member]
Business Combination, Consideration Transferred		$ 15,900	€ 15
Business Combination, Contingent Consideration, Liability		$ 2,300		3,500		3,500
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability				1,200		1,200
Accounts Payable, Current				0		0		$ 4,300
Business Combination, Acquisition Related Costs				$ 600	$ 200	$ 1,200	$ 300

v3.24.3

Note 6 - Acquisition - Schedule of Recognized Identifiable Assets and Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Jul. 31, 2024	Dec. 31, 2023
Goodwill	$ 29,628		$ 27,182
Douglas Stewart Software & Services, LLC [Member]
Prepaid expenses and other current assets		$ 773
Inventory		18
Right-of-use asset		291
Other assets		8
Accounts payable and accrued expenses		(384)
Lease liability, current portion		(88)
Lease liability, non-current portion		(249)
Goodwill		1,398
Net assets		22,397
Douglas Stewart Software & Services, LLC [Member] | Vendor Relationships [Member]
Intangibles - Vendor Relationships		20,600
Douglas Stewart Software & Services, LLC [Member] | Vendor Relationships [Member] | Supplier, Adobe [Member]
Intangibles - Vendor Relationships		$ 20,630

v3.24.3

Note 6 - Acquisition - Schedule of Acquisitions (Details) - USD ($) $ in Thousands		9 Months Ended
	Jul. 31, 2024	Sep. 30, 2024	Sep. 30, 2023
Cash paid to sellers		$ 20,672	$ (0)
Douglas Stewart Software & Services, LLC [Member]
Cash paid to sellers	$ 20,672
Contingent earn-out	1,725
Total purchase consideration	$ 22,397

v3.24.3

Note 6 - Acquisitions - Schedule of Pro Forma Information (Details) - Acquisition of DSS and Data Solutions [Member] - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Net sales	$ 123,437	$ 94,850	$ 318,268	$ 279,918
Net income	$ 6,295	$ 4,757	$ 13,745	$ 11,217

v3.24.3

Note 7 - Goodwill and Other Intangible Assets (Details Textual) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Amortization of Intangible Assets	$ 1.1	$ 0.5	$ 2.5	$ 1.5
Customer Relationships [Member]
Finite-Lived Intangible Asset, Useful Life (Year)	13 years		13 years
Vendor Relationships [Member] | Minimum [Member]
Finite-Lived Intangible Asset, Useful Life (Year)	8 years		8 years
Vendor Relationships [Member] | Maximum [Member]
Finite-Lived Intangible Asset, Useful Life (Year)	15 years		15 years
Trade Names [Member]
Finite-Lived Intangible Asset, Useful Life (Year)	15 years		15 years

v3.24.3

Note 7 - Goodwill and Other Intangible Assets - Schedule of Goodwill (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2024 USD ($)
Goodwill	$ 27,182
Goodwill acquired	1,398
Translation adjustments	1,048
Goodwill	29,628
Distribution Segment [Member]
Goodwill	18,658
Goodwill acquired	1,398
Translation adjustments	609
Goodwill	20,665
Solutions Segment [Member]
Goodwill	8,524
Goodwill acquired	0
Translation adjustments	439
Goodwill	$ 8,963

v3.24.3

Note 7 - Goodwill and Other Intangible Assets - Schedule of Finite Lived Intangible Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Gross carrying amount	$ 53,284	$ 31,457
Accumulated amortization	7,243	4,527
Net carrying amount	46,041	26,930
Customer and Vendor Relationships [Member]
Gross carrying amount	52,770	30,968
Accumulated amortization	7,109	4,424
Net carrying amount	45,661	26,544
Trade Names [Member]
Gross carrying amount	514	489
Accumulated amortization	134	103
Net carrying amount	$ 380	$ 386

v3.24.3

Note 7 - Goodwill and Other Intangible Assets - Schedule of Future Amortization Expense (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
2024 (excluding the nine months ended September 30, 2024)	$ 1,211
2025	4,845
2026	4,845
2027	4,845
2028	4,845
Thereafter	25,450
Total	$ 46,041	$ 26,930

v3.24.3

Note 8 - Right-of-use Asset and Lease Liability (Details Textual)	Sep. 30, 2024
Minimum [Member]
Lessee, Operating Lease, Term of Contract (Year)	2 years
Maximum [Member]
Lessee, Operating Lease, Term of Contract (Year)	11 years

v3.24.3

Note 8 - Right-of-use Asset and Lease Liability - Lease Information (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Cash paid for operating lease liabilities	$ 500	$ 467
Right-of-use assets obtained in exchange for new operating lease obligations	$ 360	$ 0
Weighted-average remaining lease term (years) (Year)	2 years 7 months 6 days	3 years 4 months 24 days
Weighted-average discount rate	4.40%	3.50%

v3.24.3

Note 8 - Right-of-use Asset and Lease Liability - Schedule of Lease Maturities (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
2024 (excluding the nine months ended September 30, 2024)	$ 188
2025	654
2026	650
2027	226
2028	17
Lessee, Operating Lease, Liability, to be Paid	1,735
Less: imputed interest	(406)
Total lease liabilities	1,329
Lease liabilities, current portion	533	$ 450
Lease liabilities, net of current portion	796	$ 879
Total lease liabilities	$ 1,329

v3.24.3

Note 10 - Balance Sheet Detail (Details Textual) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Depreciation	$ 0.1	$ 0.1	$ 0.4	$ 0.5
Accounts Receivable, Payments to be Received, Next Twelve Months	0.4		0.4
Accounts Receivable, Payments to be Received, Two Years	0.4		0.4
Accounts Receivable, Payments to be Received, Three Years	$ 0.4		$ 0.4
Minimum [Member]
Payment Extension Term to Customers (Month)			12 months
Maximum [Member]
Payment Extension Term to Customers (Month)			36 months

v3.24.3

Note 10 - Balance Sheet Detail - Schedule of Equipment and Leasehold Improvements (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Property, plant, and equipment, gross	$ 16,931	$ 13,179
Less accumulated depreciation and amortization	(4,780)	(4,329)
Property, Plant and Equipment, Net	12,151	8,850
Equipment [Member]
Property, plant, and equipment, gross	3,540	3,195
Software Development [Member]
Property, plant, and equipment, gross	10,240	6,890
Building [Member]
Property, plant, and equipment, gross	717	709
Leasehold Improvements [Member]
Property, plant, and equipment, gross	$ 2,433	$ 2,385

v3.24.3

Note 10 - Balance Sheet Detail - Schedule of Accounts Receivable (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Total amount due from customer	$ 1,206	$ 1,637
Less: unamortized discount	(9)	(12)
Less: current portion included in accounts receivable	(445)	(828)
Accounts Receivable, after Allowance for Credit Loss, Noncurrent	$ 752	$ 797

v3.24.3

Note 10 - Balance Sheet Detail - Schedule of Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Trade accounts payable	$ 240,630	$ 218,717
Accrued expenses	21,605	22,903
Other accounts payable and accrued expenses	11,658	8,028
Accounts Payable and Accrued Liabilities, Current	$ 273,893	$ 249,648

v3.24.3

Note 11 - Credit Facility (Details Textual) - USD ($) $ in Thousands	May 18, 2023	Sep. 30, 2024	Dec. 31, 2023	Oct. 07, 2023	Apr. 08, 2022
Term Loan [Member]
Debt Instrument, Face Amount					$ 2,100
Debt Instrument, Interest Rate, Stated Percentage					3.73%
Long-Term Debt		$ 889	$ 1,300
Invoice Discounting Facility [Member]
Debt Instrument, Interest Rate, Stated Percentage				2.50%
Long-Term Debt		$ 0	$ 4,300
Debt Instrument, Percentage of Accounts Receivable				80.00%
Credit Agreement [Member] | ABR Borrowings [Member] | Minimum [Member]
Debt Instrument, Basis Spread on Variable Rate	0.50%
Credit Agreement [Member] | ABR Borrowings [Member] | Maximum [Member]
Debt Instrument, Basis Spread on Variable Rate	0.75%
Credit Agreement [Member] | Term Benchmark and RFR Loans [Member] | Minimum [Member]
Debt Instrument, Basis Spread on Variable Rate	1.50%
Credit Agreement [Member] | Term Benchmark and RFR Loans [Member] | Maximum [Member]
Debt Instrument, Basis Spread on Variable Rate	1.75%
Credit Agreement [Member] | Revolving Credit Facility [Member]
Line of Credit Facility, Maximum Borrowing Capacity	$ 50,000
Line of Credit, Maximum Available Increase	20,000
Credit Agreement [Member] | Letter of Credit [Member]
Line of Credit Facility, Maximum Borrowing Capacity	2,500
Credit Agreement [Member] | Swingline Loans [Member]
Line of Credit Facility, Maximum Borrowing Capacity	$ 5,000

v3.24.3

Note 11 - Credit Facility - Schedule of Debt Maturities (Details) - Term Loan [Member] - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
2024 (excluding the nine months ended September 30, 2024)	$ 183
2025	562
2026	144
Total	$ 889	$ 1,300

v3.24.3

Note 12 - Earnings Per Share - Reconciliation of Basic and Diluted Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2024	Jun. 30, 2024	Mar. 31, 2024	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2024	Sep. 30, 2023
Net income	$ 5,459	$ 3,430	$ 2,731	$ 2,372	$ 1,381	$ 3,324	$ 11,620	$ 7,077
Less distributed and undistributed income allocated to participating securities	139			61			288	171
Net income attributable to common shareholders	$ 5,320			$ 2,311			$ 11,332	$ 6,906
Weighted average common shares outstanding — Basic (in shares)	4,476			4,414			4,458	4,392
Weighted average common shares outstanding — Diluted (in shares)	4,476			4,414			4,458	4,392
Income per common share-Basic (in dollars per share)	$ 1.19			$ 0.52			$ 2.54	$ 1.57
Income per common share-Diluted (in dollars per share)	$ 1.19			$ 0.52			$ 2.54	$ 1.57

v3.24.3

Note 13 - Major Customers and Vendors (Details Textual)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Supplier Concentration Risk [Member] | Cost of Goods and Service Benchmark [Member]
Number of Major Vendors	1	1	1	1
Supplier Concentration Risk [Member] | Cost of Goods and Service Benchmark [Member] | Vendor One [Member]
Concentration Risk, Percentage	8.00%	15.00%	11.00%	16.00%
Customer Concentration Risk [Member] | Revenue Benchmark [Member]
Number of Major Customers	2	2	2	2
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | Customer One [Member]
Concentration Risk, Percentage	16.00%	21.00%	18.00%	21.00%
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | Customer Two [Member]
Concentration Risk, Percentage	13.00%	17.00%	15.00%	15.00%
Customer Concentration Risk [Member] | Accounts Receivable [Member]
Number of Major Customers			2		2
Customer Concentration Risk [Member] | Accounts Receivable [Member] | Customer One [Member]
Concentration Risk, Percentage			13.00%	15.00%
Customer Concentration Risk [Member] | Accounts Receivable [Member] | Customer Two [Member]
Concentration Risk, Percentage			6.00%	6.00%

v3.24.3

Note 15 - Stockholders' Equity and Stock Based Compensation (Details Textual) $ / shares in Units, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2024 USD ($) $ / shares shares	Sep. 30, 2023 USD ($)	Sep. 30, 2024 USD ($) $ / shares shares	Sep. 30, 2023 USD ($) shares	Dec. 31, 2023 $ / shares	Sep. 30, 2021 $ / shares shares	Dec. 31, 2020 shares	Dec. 31, 2018 shares	Dec. 31, 2012 shares
Common Stock, Par or Stated Value Per Share (in dollars per share) | $ / shares	$ 0.01		$ 0.01		$ 0.01
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $	$ 5.2		$ 5.2
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year)			2 years 2 months 12 days
Share-Based Payment Arrangement, Expense | $	$ 0.9	$ 0.7	$ 2.8	$ 3.4
Restricted Stock [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares)			51,812	132,526
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Forfeited in Period (in shares)			1,661
Restricted Stock [Member] | Share-Based Payment Arrangement, Tranche One [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Installments	3	3	3	3
Restricted Stock [Member] | Share-Based Payment Arrangement, Tranche Two [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Installments	16	16	16	16
The 2021 Omnibus Incentive Plan [Member]
Common Stock, Par or Stated Value Per Share (in dollars per share) | $ / shares						$ 0.01
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Authorized (in shares)						500,000
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Available for Grant (in shares)						190,917
The 2012 Stock Based Compensation Plan [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Authorized (in shares)								1,000,000	600,000
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Available for Grant (in shares)	0		0				352,158

v3.24.3

Note 15 - Stockholders' Equity and Stock Based Compensation - Summary of Restricted Stock (Details) - Restricted Stock [Member] - $ / shares	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Nonvested shares (in shares)	143,294
Nonvested shares, weighted average grant date fair value (in dollars per share)	$ 36.48
Granted (in shares)	51,812	132,526
Granted, weighted average grant date fair value (in dollars per share)	$ 58.83
Vested (in shares)	(64,351)
Vested, weighted average grant date fair value (in dollars per share)	$ 35.51
Forfeited (in shares)	(1,661)
Forfeited, weighted average grant date fair value (in dollars per share)	$ 42.58
Nonvested shares (in shares)	129,094
Nonvested shares, weighted average grant date fair value (in dollars per share)	$ 45.85

v3.24.3

Note 16 - Segment Information (Details Textual)	9 Months Ended
	Sep. 30, 2024
Number of Reportable Segments	2

v3.24.3

Note 16 - Segment Information - Schedule of Segment Information (Details) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Net sales		$ 119,349	$ 78,457	$ 303,847	$ 245,229
Gross profit		24,257	14,274	59,833	43,176
Direct costs		9,760	6,475	27,355	19,069
Segment Income Before Taxes	[1]	14,497	7,799	32,478	24,107
General and administrative		4,177	3,647	12,078	12,861
Acquisition related costs		609	246	1,201	277
Depreciation and amortization expense		1,197	617	2,933	1,934
Interest, net		198	318	755	760
Foreign currency transaction loss		(442)	(140)	(688)	(100)
Change in fair value of acquisition contingent consideration		(1,152)	0	(1,152)	0
Income before taxes		7,118	3,467	15,181	9,695
Total assets		371,940		371,940		$ 335,098
Operating Segments [Member]
Total assets		328,774		328,774		280,919
Segment Reporting, Reconciling Item, Corporate Nonsegment [Member]
Total assets		43,166		43,166		54,179
Distribution Segment [Member]
Net sales		111,861	72,227	286,523	226,905
Gross profit		21,557	11,671	51,454	35,472
Direct costs		8,430	5,249	23,342	15,225
Segment Income Before Taxes	[1]	13,127	6,422	28,112	20,247
Distribution Segment [Member] | Operating Segments [Member]
Total assets		306,914		306,914		242,927
Solutions Segment [Member]
Net sales		7,488	6,230	17,324	18,324
Gross profit		2,700	2,603	8,379	7,704
Direct costs		1,330	1,226	4,013	3,844
Segment Income Before Taxes	[1]	1,370	$ 1,377	4,366	$ 3,860
Solutions Segment [Member] | Operating Segments [Member]
Total assets		$ 21,860		$ 21,860		$ 37,992
[1] Excludes general corporate expenses including interest and foreign currency transaction loss.

v3.24.3

Note 16 - Segment Information - Schedule of Geographic Area and Sales Mix (Details) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Net sales		$ 119,349	$ 78,457	$ 303,847	$ 245,229
Transferred at Point in Time [Member] | Sales Channel, Directly to Consumer [Member]
Net sales	[1]	106,635	68,009	263,996	213,317
Transferred at Point in Time [Member] | Sales Channel, Through Intermediary [Member]
Net sales	[2]	12,714	10,448	39,851	31,912
UNITED STATES
Net sales		81,830	64,496	215,270	190,186
Europe [Member]
Net sales		32,912	8,771	71,837	36,411
CANADA
Net sales		4,607	5,190	16,740	18,632
Distribution Segment [Member]
Net sales		111,861	72,227	286,523	226,905
Distribution Segment [Member] | Transferred at Point in Time [Member] | Sales Channel, Directly to Consumer [Member]
Net sales	[1]	101,561	63,587	253,027	200,027
Distribution Segment [Member] | Transferred at Point in Time [Member] | Sales Channel, Through Intermediary [Member]
Net sales	[2]	10,300	8,640	33,496	26,878
Distribution Segment [Member] | UNITED STATES
Net sales		78,012	60,891	208,462	180,278
Distribution Segment [Member] | Europe [Member]
Net sales		29,494	6,353	62,135	28,903
Distribution Segment [Member] | CANADA
Net sales		4,355	4,983	15,926	17,724
Solutions Segment [Member]
Net sales		7,488	6,230	17,324	18,324
Solutions Segment [Member] | Transferred at Point in Time [Member] | Sales Channel, Directly to Consumer [Member]
Net sales	[1]	5,074	4,422	10,969	13,290
Solutions Segment [Member] | Transferred at Point in Time [Member] | Sales Channel, Through Intermediary [Member]
Net sales	[2]	2,414	1,808	6,355	5,034
Solutions Segment [Member] | UNITED STATES
Net sales		3,818	3,605	6,808	9,908
Solutions Segment [Member] | Europe [Member]
Net sales		3,418	2,418	9,702	7,508
Solutions Segment [Member] | CANADA
Net sales		$ 252	$ 207	$ 814	$ 908
[1] Includes net sales from third-party hardware and software products. [2] Includes net sales from third-party maintenance, software support and services.

v3.24.3

Note 16 - Segment Information - Schedule of Geographic Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Total assets	$ 371,940	$ 335,098
UNITED STATES
Total assets	226,717	171,080
CANADA
Total assets	25,345	23,994
Europe [Member]
Total assets	$ 119,878	$ 140,024

v3.24.3

Note 17 - Related Party Transactions (Details Textual) - Related Party [Member] - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Revenue from Contract with Customer, Excluding Assessed Tax	$ 0	$ 300	$ 700	$ 1,300
Accounts Receivable, after Allowance for Credit Loss	$ 0		$ 0		$ 100

v3.24.3

Note 18 - Fair Value Measurements - Schedule of Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Total assets	$ 0	$ 5,096
Total liabilities	7,064	4,189
Earn Out [Member]
Business Combination, Contingent Consideration, Liability	7,064	4,189
Fair Value, Inputs, Level 1 [Member]
Total assets	0	5,096
Total liabilities	0	0
Fair Value, Inputs, Level 1 [Member] | Earn Out [Member]
Business Combination, Contingent Consideration, Liability	0	0
Fair Value, Inputs, Level 2 [Member]
Total assets	0	0
Total liabilities	0	0
Fair Value, Inputs, Level 2 [Member] | Earn Out [Member]
Business Combination, Contingent Consideration, Liability	0	0
Fair Value, Inputs, Level 3 [Member]
Total assets	0	0
Total liabilities	7,064	4,189
Fair Value, Inputs, Level 3 [Member] | Earn Out [Member]
Business Combination, Contingent Consideration, Liability	7,064	4,189
US Treasury Bill Securities [Member]
Treasury bills	0	5,096
US Treasury Bill Securities [Member] | Fair Value, Inputs, Level 1 [Member]
Treasury bills	0	5,096
US Treasury Bill Securities [Member] | Fair Value, Inputs, Level 2 [Member]
Treasury bills	0	0
US Treasury Bill Securities [Member] | Fair Value, Inputs, Level 3 [Member]
Treasury bills	$ 0	$ 0

v3.24.3

Note 18 - Fair Value Measurements - Changes in Liabilities Measured on Recurring Basis (Details) - Earn Out [Member] $ in Thousands	9 Months Ended
	Sep. 30, 2024 USD ($)
Balance	$ 4,189
DSS acquisition - contingent earn-out	1,755
Contingent earnout paid	(150)
Change in fair value of acquisition contingent consideration	1,152
Translation adjustments	118
Balance	$ 7,064

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