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Industry, Segment and Geographic Financial Information | 12 Months Ended
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Dec. 31, 2021
Industry, Segment and Geographic Financial Information |
Industry, Segment and Geographic Financial Information | 13. Industry, Segment and Geographic Financial 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 net sales less the respective segment’s cost of sales 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: ​
​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Year ended
​ | ​ | December 31,
​ |  | 2021 |  | 2020
Net Sales: | ​ | ​ | ​ | ​ | ​ | ​
Distribution | ​ | $ | 259,360 | ​ | $ | 233,740
Solutions | ​ |  | 23,222 | ​ |  | 17,828
​ | ​ |  | 282,582 | ​ |  | 251,568
Gross Profit: | ​ | ​ | ​ | ​ | ​ | ​
Distribution | ​ | $ | 36,526 | ​ | $ | 29,136
Solutions | ​ |  | 9,190 | ​ |  | 3,904
​ | ​ |  | 45,716 | ​ |  | 33,040
Direct Costs: | ​ | ​ | ​ | ​ | ​ | ​
Distribution | ​ | $ | 14,610 | ​ | $ | 12,453
Solutions | ​ |  | 4,741 | ​ |  | 1,767
​ | ​ |  | 19,351 | ​ |  | 14,220
Segment Income Before Taxes: (1) | ​ | ​ | ​ | ​ | ​ | ​
Distribution | ​ | $ | 21,916 | ​ | $ | 16,683
Solutions | ​ |  | 4,449 | ​ |  | 2,137
Segment Income Before Taxes | ​ |  | 26,365 | ​ |  | 18,820
​ | ​ | ​ | ​ | ​ | ​ | ​
General and administrative | ​ | $ | 12,785 | ​ | $ | 9,709
Legal and financial advisory expenses, net - unsolicited bid and related matters | ​ | ​ | — | ​ | ​ | 1,586
Acquisition related costs | ​ | ​ | — | ​ | ​ | 1,518
Amortization and depreciation expense | ​ | ​ | 1,529 | ​ | ​ | 704
Interest, net | ​ | ​ | 359 | ​ | ​ | 121
Foreign currency transaction (loss) gain | ​ |  | (46) | ​ |  | 796
Income before taxes | ​ | $ | 12,364 | ​ | $ | 6,220
​ (1) Excludes general corporate expenses including legal and financial advisory expenses, net – unsolicited bid and related matters, acquisition related costs, amortization and depreciation expense, interest, and foreign currency transaction (loss) gain. ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | ​ |  | ​ |
​ | ​ | As of | ​ | As of | ​
​ | ​ | December 31, | ​ | December 31, | ​
Selected Assets by Segment: | ​ | 2021 | ​ | 2020 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Distribution | ​ | $ | 133,506 | ​ | $ | 106,930 | ​
Solutions | ​ |  | 18,895 | ​ |  | 20,807 | ​
Segment Select Assets | ​ |  | 152,401 | ​ |  | 127,737 | ​
Corporate Assets | ​ |  | 38,351 | ​ |  | 37,796 | ​
Total Assets | ​ | $ | 190,752 | ​ | $ | 165,533 | ​
​ Geographic areas and net sales mix related to operations for the year ended December 31, 2021 and 2020 were as follows. Net sales is allocated to a geographic area based on the location of the sale, which is generally the customer’s country of domicile. ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | Year ended |
​ | ​ | December 31, 2021 | ​
​ | ​ | Distribution |  | Solutions | ​ | Total | ​
Geography | ​ | ​ |  | ​ | ​ |  | ​ | ​ | ​ | ​
USA | ​ | $ | 210,247 | ​ | $ | 11,057 | ​ | $ | 221,304 | ​
Europe and United Kingdom | ​ |  | 26,055 | ​ |  | 10,652 | ​ |  | 36,707 | ​
Canada | ​ |  | 23,058 | ​ |  | 1,513 | ​ |  | 24,571 | ​
Total net sales | ​ | $ | 259,360 | ​ | $ | 23,222 | ​ | $ | 282,582 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Timing of Revenue Recognition | ​ | ​ |  | ​ | ​ |  | ​ | ​ | ​ | ​
Transferred at a point in time where the Company is principal (1) | ​ | $ | 234,322 | ​ | $ | 16,360 | ​ | $ | 250,682 | ​
Transferred at a point in time where the Company is agent (2) | ​ |  | 25,038 | ​ |  | 6,862 | ​ |  | 31,900 | ​
Total net sales | ​ | $ | 259,360 | ​ | $ | 23,222 | ​ | $ | 282,582 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | Year ended |
​ | ​ | December 31, 2020 | ​
​ | ​ | Distribution |  | Solutions | ​ | Total | ​
Geography | ​ | ​ |  | ​ | ​ |  | ​ | ​ | ​ | ​
USA | ​ | $ | 207,362 | ​ | $ | 13,991 | ​ | $ | 221,353 | ​
Europe and United Kingdom | ​ |  | 14,787 | ​ |  | 2,060 | ​ |  | 16,847 | ​
Canada | ​ |  | 11,591 | ​ |  | 1,777 | ​ |  | 13,368 | ​
Total net sales | ​ | $ | 233,740 | ​ | $ | 17,828 | ​ | $ | 251,568 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Timing of Revenue Recognition | ​ | ​ |  | ​ | ​ |  | ​ | ​ | ​ | ​
Transferred at a point in time where the Company is principal (1) | ​ | $ | 214,403 | ​ | $ | 16,059 | ​ | $ | 230,462 | ​
Transferred at a point in time where the Company is agent (2) | ​ |  | 19,337 | ​ |  | 1,769 | ​ |  | 21,106 | ​
Total net sales | ​ | $ | 233,740 | ​ | $ | 17,828 | ​ | $ | 251,568 | ​
​
(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 December 31, 2021 and 2020 were as follows. ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | December 31, | ​ | December 31, |
Identifiable Assets by Geographic Areas | ​ | 2021 |  | 2020 | ​
USA | ​ | $ | 122,445 | ​ | $ | 114,126 | ​
Canada | ​ | ​ | 24,923 | ​ | ​ | 18,514 | ​
Europe and United Kingdom | ​ | ​ | 43,384 | ​ | ​ | 32,893 | ​
Total | ​ | $ | 190,752 | ​ | $ | 165,533 | ​
​ The Company had two customers that each accounted for more than 10% of total consolidated net sales for the year ended December 31, 2021. For the year ended December 31, 2021, CDW Corporation (“CDW”) and Software House International Corporation (“SHI”), accounted for 18%, and 17%, respectively, of consolidated net sales and as of December 31, 2021, 18% and 22%, respectively, of total net accounts receivable. For the year ended December 31, 2021, Sophos and SolarWinds accounted for 20% and 10%, respectively of our consolidated purchases. ​ For the year ended December 31, 2020, CDW Corporation (“CDW”) and Software House International Corporation (“SHI”), accounted for 24%, and 14%, respectively, of consolidated net sales and as of December 31, 2020, 19% and 9%, respectively, of total net accounts receivable. For the year ended December 31, 2020, Sophos and SolarWinds accounted for 20% and 12%, respectively of our consolidated purchases. ​ Our top five customers accounted for 51% and 52% of consolidated net sales for the years ended December 31, 2021 and 2020, respectively.

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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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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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