Climb Global Solutions, Inc. Files 2023 Annual Report (10-K)

Ticker: CLMB · Form: 10-K · Filed: Mar 5, 2024 · CIK: 945983

Sentiment: neutral

Topics: 10-K, Annual Report, Climb Global Solutions, Financials, Segments

TL;DR

<b>Climb Global Solutions, Inc. has filed its 2023 10-K report, detailing financial performance and segment data.</b>

AI Summary

Climb Global Solutions, Inc. (CLMB) filed a Annual Report (10-K) with the SEC on March 5, 2024. Climb Global Solutions, Inc. filed its 10-K report for the fiscal year ending December 31, 2023. The company was formerly known as Wayside Technology Group, Inc. and Programmers Paradise Inc. The filing includes data related to allowance for credit losses for the periods ending December 31, 2023, 2022, and 2021. Financial data for the fiscal years 2023 and 2022 are presented, including details on treasury stock, retained earnings, additional paid-in capital, and accumulated other comprehensive income. The report details revenue segments, including 'Solutions' and 'Distribution', with sales channels through intermediaries and directly to consumers across various countries like US, CA, GB, and IE.

Why It Matters

For investors and stakeholders tracking Climb Global Solutions, Inc., this filing contains several important signals. This 10-K filing provides a comprehensive overview of Climb Global Solutions' financial health and operational structure for the fiscal year 2023, which is crucial for investors to assess performance and future outlook. The detailed segment and sales channel information allows stakeholders to understand revenue drivers and geographic performance, aiding in strategic investment decisions.

Risk Assessment

Risk Level: medium — Climb Global Solutions, Inc. shows moderate risk based on this filing. The filing is a standard 10-K, which is a routine annual report. However, the lack of specific financial performance metrics (revenue, net income, EPS) in the provided header data prevents a deeper risk assessment beyond the general nature of such filings.

Analyst Insight

Investors should review the full 10-K filing to analyze the detailed financial statements, management's discussion and analysis, and risk factors to make informed investment decisions.

Revenue Breakdown

SegmentRevenueGrowth
Solutions
Distribution

Key Numbers

Key Players & Entities

FAQ

When did Climb Global Solutions, Inc. file this 10-K?

Climb Global Solutions, Inc. filed this Annual Report (10-K) with the SEC on March 5, 2024.

What is a 10-K filing?

A 10-K is a comprehensive annual financial report required by the SEC, covering audited financials, business operations, risk factors, and management discussion. This particular 10-K was filed by Climb Global Solutions, Inc. (CLMB).

Where can I read the original 10-K filing from Climb Global Solutions, Inc.?

You can access the original filing directly on the SEC's EDGAR system. The filing is publicly available and includes all exhibits and attachments submitted by Climb Global Solutions, Inc..

What are the key takeaways from Climb Global Solutions, Inc.'s 10-K?

Climb Global Solutions, Inc. filed this 10-K on March 5, 2024. Key takeaways: Climb Global Solutions, Inc. filed its 10-K report for the fiscal year ending December 31, 2023.. The company was formerly known as Wayside Technology Group, Inc. and Programmers Paradise Inc.. The filing includes data related to allowance for credit losses for the periods ending December 31, 2023, 2022, and 2021..

Is Climb Global Solutions, Inc. a risky investment based on this filing?

Based on this 10-K, Climb Global Solutions, Inc. presents a moderate-risk profile. The filing is a standard 10-K, which is a routine annual report. However, the lack of specific financial performance metrics (revenue, net income, EPS) in the provided header data prevents a deeper risk assessment beyond the general nature of such filings.

What should investors do after reading Climb Global Solutions, Inc.'s 10-K?

Investors should review the full 10-K filing to analyze the detailed financial statements, management's discussion and analysis, and risk factors to make informed investment decisions. The overall sentiment from this filing is neutral.

Key Dates

Filing Stats: 4,405 words · 18 min read · ~15 pages · Grade level 15.6 · Accepted 2024-03-05 16:08:36

Key Financial Figures

Filing Documents

Business

Item 1. Business 1

Risk Factors

Item 1A. Risk Factors 7

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 15

Cybersecurity

Item 1C. Cybersecurity 15

Properties

Item 2. Properties 15

Legal Proceedings

Item 3. Legal Proceedings 16

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 16 PART II

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 16

[Reserved]

Item 6. [Reserved] 17

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 17

Quantitative and Qualitative Disclosures about Market Risk

Item 7A. Quantitative and Qualitative Disclosures about Market Risk 28

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data 28

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 28

Controls and Procedures

Item 9A. Controls and Procedures 28

Other Information

Item 9B. Other Information 29

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections. 29 PART III

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 29

Executive Compensation

Item 11. Executive Compensation 30

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 30

Certain Relationships and Related Party Transactions, and Director Independence

Item 13. Certain Relationships and Related Party Transactions, and Director Independence 30

Principal Accounting Fees and Services

Item 14. Principal Accounting Fees and Services 30 PART IV

Exhibits, Financial Statement Schedules

Item 15. Exhibits, Financial Statement Schedules 30

Form 10-K Summary

Item 16. Form 10-K Summary. 33

SIGNATURES

SIGNATURES 34 Table of Contents PART I CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS This Annual Report on Form 10-K ("Annual 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 Annual Report are forward-looking statements. Many of the forward-looking statements contained in this Annual 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," "under construction," "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, inflation, competitive pricing pressures, the succe

Business

Item 1. Business General The Company is a value added information technology ("IT") distribution and solutions company. The Company primarily operates through its "Distribution" segment, which distributes emerging technologies to corporate resellers, value added resellers ("VARs"), consultants and systems integrators worldwide under the name "Climb Channel Solutions". The Company also operates a smaller segment called "Solutions", which is a cloud solutions provider and value-added reseller of software, hardware and services for customers worldwide under the name "Grey Matter". Across both segments, 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. The Company was incorporated in Delaware in 1982. Our common stock, par value $0.01 per share ("Common Stock") is listed on The NASDAQ Global Market under the symbol "CLMB". Distribution Segment In our Distribution segment, which accounted for approximately 92% of our consolidated net sales and 83% of our consolidated gross profit during the year ended December 31, 2023, we distribute technology products from software developers, software vendors or original equipment manufacturers ("OEMs") to resellers, and system integrators worldwide. We purchase software, maintenance/service agreements, networking/storage/security equipment and complementary products from our vendors and sell them to our reseller customers. The large majority of products we sell are "drop shipped" directly to the customers, which reduces physical handling by the Company and required investment in inventory. Generally, a vendor authorizes a limited number of companies to act as distributors of their product and sell their product to resellers. Our reseller customers include value-added resellers, or VARs, corporate

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