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Segment Information | 3 Months Ended
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Mar. 31, 2021
Segment Information |
Segment Information | 16. Segment Information: ​ The Company distributes software developed by others through resellers indirectly to customers worldwide. We also resell computer software and hardware developed by others and provide technical services directly to customers worldwide. ​ FASB ASC Topic 280, “Segment Reporting,” requires that public companies report profits and losses and certain other information on their “reportable operating segments” in their annual and interim financial statements. The internal organization used by the public company’s Chief Operating Decision Maker (CODM) to assess performance and allocate resources determines the basis for reportable operating segments. The Company’s CODM is the Chief Executive Officer. ​ The Company is organized into two reportable operating segments. The “Distribution” segment distributes technical software to corporate resellers, value added resellers (VARs), consultants and systems integrators worldwide. The “Solutions” segment is a cloud solutions provider and value-added reseller of software, hardware and services to customers worldwide. ​ As permitted by FASB ASC Topic 280, the Company has utilized the aggregation criteria in combining its operations in Canada, Europe and the United Kingdom with the domestic segments as the international operations provide the same products and services to similar clients and are considered together when the Company’s CODM decides how to allocate resources. ​ Segment income is based on segment revenue less the respective segment’s cost of revenues as well as segment direct costs (including such items as payroll costs and payroll related costs, such as profit sharing, incentive awards and insurance) and excluding general and administrative expenses not attributed to an individual segment business unit. The Company only identifies accounts receivable, vendor prepayments and inventory by segment as shown below as “Selected Assets” by segment; it does not allocate its other assets, including capital expenditures by segment. The following segment reporting information of the Company is provided: ​
​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Three months ended
​ | ​ | March 31,
​ |  | 2021 |  | 2020
Revenue: | ​ | ​ | ​ | ​ | ​ | ​
Distribution | ​ | $ | 54,820 | ​ | $ | 57,264
Solutions | ​ |  | 7,993 | ​ |  | 5,354
​ | ​ |  | 62,813 | ​ |  | 62,618
Gross Profit: | ​ | ​ | ​ | ​ | ​ | ​
Distribution | ​ | $ | 7,874 | ​ | $ | 7,162
Solutions | ​ |  | 2,969 | ​ |  | 1,002
​ | ​ |  | 10,843 | ​ |  | 8,164
Direct Costs: | ​ | ​ | ​ | ​ | ​ | ​
Distribution | ​ | $ | 3,913 | ​ | $ | 2,637
Solutions | ​ |  | 1,408 | ​ |  | 462
​ | ​ |  | 5,321 | ​ |  | 3,099
Segment Income Before Taxes: (1) | ​ | ​ | ​ | ​ | ​ | ​
Distribution | ​ | $ | 3,961 | ​ | $ | 4,525
Solutions | ​ |  | 1,561 | ​ |  | 540
Segment Income Before Taxes | ​ |  | 5,522 | ​ |  | 5,065
​ | ​ | ​ | ​ | ​ | ​ | ​
General and administrative | ​ | $ | 3,091 | ​ | $ | 2,305
Legal and financial advisory expenses, net - unsolicited bid and related matters | ​ | ​ | — | ​ | ​ | 1,323
Acquisition related costs | ​ | ​ | — | ​ | ​ | 403
Amortization and depreciation expense | ​ | ​ | 399 | ​ | ​ | 96
Interest, net | ​ | ​ | 10 | ​ | ​ | 62
Foreign currency transaction (loss) gain | ​ |  | (91) | ​ |  | 115
Income before taxes | ​ | $ | 1,951 | ​ | $ | 1,115
​ | ​ | ​ | ​ | ​ | ​ | ​
​
(1) | Excludes general corporate expenses including interest and foreign currency transaction (loss) gain.
​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | ​ |  | ​ |
​ | ​ | As of | ​ | As of | ​
​ | ​ | March 31, | ​ | December 31, | ​
Selected Assets by Segment: | ​ | 2021 | ​ | 2020 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Distribution | ​ | $ | 109,402 | ​ | $ | 100,841 | ​
Solutions | ​ |  | 5,697 | ​ |  | 7,304 | ​
Segment Select Assets | ​ |  | 115,099 | ​ |  | 108,145 | ​
Goodwill and Intangible Assets | ​ | ​ | 20,379 | ​ | ​ | 19,592 | ​
Corporate Assets | ​ |  | 42,232 | ​ |  | 37,796 | ​
Total Assets | ​ | $ | 177,710 | ​ | $ | 165,533 | ​
​ ​ Geographic areas and net sales mix related to operations for the three months ended March 31, 2021 and 2020 were as follows. Revenue is allocated to a geographic area based on the location of the sale, which is generally the customer’s country of domicile. ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | Three months ended
​ | ​ | March 31, 2021
​ | ​ | Distribution |  | Solutions | ​ | Total
Geography | ​ | ​ |  | ​ | ​ |  | ​ | ​ | ​
USA | ​ | $ | 41,084 | ​ | $ | 4,979 | ​ | $ | 46,063
Europe and United Kingdom | ​ |  | 7,246 | ​ |  | 2,743 | ​ |  | 9,989
Canada | ​ |  | 6,490 | ​ |  | 271 | ​ |  | 6,761
Total net sales | ​ | $ | 54,820 | ​ | $ | 7,993 | ​ | $ | 62,813
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Timing of Revenue Recognition | ​ | ​ |  | ​ | ​ |  | ​ | ​ | ​
Transferred at a point in time where the Company is principal (1) | ​ | $ | 49,357 | ​ | $ | 6,150 | ​ | $ | 55,507
Transferred at a point in time where the Company is agent (2) | ​ |  | 5,463 | ​ |  | 1,843 | ​ |  | 7,306
Total net sales | ​ | $ | 54,820 | ​ | $ | 7,993 | ​ | $ | 62,813
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | Three months ended
​ | ​ | March 31, 2020
​ | ​ | Distribution |  | Solutions | ​ | Total
Geography | ​ | ​ |  | ​ | ​ |  | ​ | ​ | ​
USA | ​ | $ | 53,104 | ​ | $ | 4,797 | ​ | $ | 57,901
Europe and United Kingdom | ​ |  | 1,776 | ​ |  | — | ​ |  | 1,776
Canada | ​ |  | 2,384 | ​ |  | 557 | ​ |  | 2,941
Total net sales | ​ | $ | 57,264 | ​ | $ | 5,354 | ​ | $ | 62,618
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Timing of Revenue Recognition | ​ | ​ |  | ​ | ​ |  | ​ | ​ | ​
Transferred at a point in time where the Company is principal (1) | ​ | $ | 52,493 | ​ | $ | 5,089 | ​ | $ | 57,582
Transferred at a point in time where the Company is agent (2) | ​ |  | 4,771 | ​ |  | 265 | ​ |  | 5,036
Total net sales | ​ | $ | 57,264 | ​ | $ | 5,354 | ​ | $ | 62,618
​
(1) | Includes net sales from third-party hardware and software products.
​
(2) | Includes net sales from third-party maintenance, software support and services.
​ Geographic identifiable assets related to operations as of March 31, 2021 and December 31, 2020 were as follows. ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | March 31, | ​ | December 31, |
Identifiable Assets by Geographic Areas | ​ | 2021 |  | 2020 | ​
USA | ​ | $ | 108,954 | ​ | $ | 114,126 | ​
Canada | ​ | ​ | 24,691 | ​ | ​ | 18,514 | ​
Europe and United Kingdom | ​ | ​ | 23,686 | ​ | ​ | 13,301 | ​
Unallocated | ​ |  | 20,379 | ​ |  | 19,592 | ​
Total | ​ | $ | 177,710 | ​ | $ | 165,533 | ​
​

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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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