Climb Global Solutions, Inc. 10-Q

Item 3. Quantitative and Qualitative Disclosures about Market Risk ​ We are exposed to market risk in the ordinary course of our business. This market risk is principally limited to changes in foreign currency exchange rates. We conduct international operations in Canada, the United Kingdom and throughout Europe. Our results of operations are subject to both foreign currency transaction risk and currency translation risk. We have foreign currency transaction risk when transactions are not denominated in our subsidiaries’ functional currency, which include purchases and sales of the products and services we provide. With respect to currency translation risk, our financial condition and results of operations are measured and recorded in the relevant functional currency and then translated into U.S. dollars for inclusion in our condensed consolidated financial statements. In recent years, exchange rates between these foreign currencies and the U.S. dollar have fluctuated significantly and may do so in the future.