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Segment Information | 9 Months Ended
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Sep. 30, 2020
Segment Information |
Segment Information | 16. Segment Information: FASB ASC Topic 280, “Segment Reporting,” requires that public companies report profits and losses and certain other information on their “reportable operating segments” in their annual and interim financial statements. The internal organization used by the public company’s Chief Operating Decision Maker (CODM) to assess performance and allocate resources determines the basis for reportable operating segments. The Company’s CODM is the Chief Executive Officer. The Company is organized into two reportable operating segments. The “Climb Channel Solutions” segment (formerly Lifeboat Distribution) distributes technical software and hardware to corporate resellers, value added resellers (VARs), consultants and systems integrators worldwide. The “TechXtend” segment is a value-added reseller of software, hardware and services for corporations, government organizations and academic institutions in the United States and Canada. As permitted by FASB ASC Topic 280, the Company has utilized the aggregation criteria in combining its operations in Canada with the domestic segments as the Canadian operations provide the same products and services to similar clients and are considered together when the Company’s CODM decides how to allocate resources. Segment income is based on segment revenue less the respective segment’s cost of revenues as well as segment direct costs (including such items as payroll costs and payroll related costs, such as profit sharing, incentive awards and insurance) and excluding general and administrative expenses not attributed to an individual segment business unit. The Company only identifies accounts receivable, vendor prepayments and inventory by segment as shown below as “Selected Assets” by segment; it does not allocate its other assets, including capital expenditures by segment. The following segment reporting information of the Company is provided:
|  | (Unaudited) |  | (Unaudited)
|  | Nine months ended September 30, |  | Three months ended September 30,
|  | 2020 |  | 2019 |  | 2020 |  | 2019
Revenue: |  |  |  |  |  |  |  |  |  |  |  |
Climb Channel Solutions |  | $ | 168,537 |  | $ | 136,189 |  | $ | 57,059 |  | $ | 48,815
TechXtend |  |  | 11,587 |  |  | 11,708 |  |  | 3,860 |  |  | 3,548
|  |  | 180,124 |  |  | 147,897 |  |  | 60,919 |  |  | 52,363
Gross Profit: |  |  |  |  |  |  |  |  |  |  |  |
Climb Channel Solutions |  | $ | 20,390 |  | $ | 19,708 |  | $ | 6,585 |  | $ | 6,386
TechXtend |  |  | 2,125 |  |  | 2,400 |  |  | 652 |  |  | 669
|  |  | 22,515 |  |  | 22,108 |  |  | 7,237 |  |  | 7,055
Direct Costs: |  |  |  |  |  |  |  |  |  |  |  |
Climb Channel Solutions |  | $ | 8,387 |  | $ | 7,520 |  | $ | 2,993 |  | $ | 2,481
TechXtend |  |  | 992 |  |  | 1,124 |  |  | 275 |  |  | 316
|  |  | 9,379 |  |  | 8,644 |  |  | 3,268 |  |  | 2,797
Segment Income Before Taxes: (1) |  |  |  |  |  |  |  |  |  |  |  |
Climb Channel Solutions |  | $ | 12,003 |  | $ | 12,188 |  | $ | 3,592 |  | $ | 3,905
TechXtend |  |  | 1,133 |  |  | 1,276 |  |  | 377 |  |  | 353
Segment Income Before Taxes |  |  | 13,136 |  |  | 13,464 |  |  | 3,969 |  |  | 4,258
General and administrative |  | $ | 7,890 |  | $ | 7,531 |  | $ | 2,889 |  | $ | 2,290
Legal and financial advisory expenses, net - unsolicited bid and related matters |  |  | 1,752 |  |  | — |  |  | (81) |  |  | —
Acquisition related costs |  |  | 982 |  |  | — |  |  | 344 |  |  | —
Interest, net |  |  | 105 |  |  | 416 |  |  | 19 |  |  | 118
Foreign currency transaction gain |  |  | 211 |  |  | 39 |  |  | (67) |  |  | (52)
Income before taxes |  | $ | 2,828 |  | $ | 6,388 |  | $ | 769 |  | $ | 2,034
| (1) |  | Excludes general corporate expenses including interest and foreign currency translation expenses.
|  | (Unaudited) |  |  |
|  | As of |  | As of |
|  | September 30, |  | December 31, |
Selected Assets by Segment: |  | 2020 |  | 2019 |
Climb Channel Solutions |  | $ | 86,593 |  | $ | 99,602 |
TechXtend |  |  | 2,962 |  |  | 5,603 |
Segment Select Assets |  |  | 89,555 |  |  | 105,205 |
Corporate Assets |  |  | 46,653 |  |  | 21,076 |
Total Assets |  | $ | 136,208 |  | $ | 126,281 |
|  | Nine months ended |  | Three months ended |
|  | (Unaudited) |  | (Unaudited) |
Disaggregation of Revenue: |  | September 30, |  | September 30, |  | September 30, |  | September 30, |
|  | 2020 |  | 2019 |  | 2020 |  | 2019 |
Climb Channel Solutions |  |  |  |  |  |  |  |  |  |  |  |  |
Hardware, software and other products |  | $ | 155,039 |  | $ | 122,967 |  | $ | 52,706 |  | $ | 44,308 |
Software - security & highly interdependent with support |  |  | 5,775 |  |  | 5,162 |  |  | 2,042 |  |  | 1,670 |
Maintenance, support & other services |  |  | 7,723 |  |  | 8,060 |  |  | 2,311 |  |  | 2,837 |
Net Sales |  | $ | 168,537 |  | $ | 136,189 |  | $ | 57,059 |  | $ | 48,815 |
TechXtend |  |  |  |  |  |  |  |  |  |  |  |  |
Hardware, software and other products |  | $ | 10,912 |  | $ | 10,515 |  | $ | 3,664 |  | $ | 3,200 |
Software - security & highly interdependent with support |  |  | 64 |  |  | 255 |  |  | 17 |  |  | 128 |
Maintenance, support & other services |  |  | 611 |  |  | 938 |  |  | 179 |  |  | 220 |
Net Sales |  | $ | 11,587 |  | $ | 11,708 |  | $ | 3,860 |  | $ | 3,548 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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