The Company is a value added information technology (“IT”) distribution and solutions company.
−Removed: 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”.
+Added: The Company primarily operates through its “Distribution” segment, which distributes emerging and disruptive 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”.
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While our Distribution business is characterized by low gross profit as a percentage of gross billings, or gross billings margin, and price competition, we have been able to operate profitably by leveraging an efficient and scalable business model with low capital investment requirements.
−Removed: The large majority of the products we sell are either digital products such as license authorizations, third party maintenance contracts, or hardware that is dropped shipped to the end customer directly by the vendor.
−Removed: We utilize electronic digital interchange (“EDI”) and other automation to fulfill these orders on a cost-efficient basis.
+Added: The large majority of the products we sell are either digital products such as license authorizations, third party maintenance contracts, or hardware that is drop-shipped to the end customer directly by the vendor.
+Added: We utilize electronic data interchange (“EDI”) and other automation tools to fulfill these orders on a cost-efficient basis.
We also maintain relatively low inventory balances relative to our gross billings and enjoy what we believe is favorable credit from our vendor partners, allowing us to deploy a capital efficient model as reflected by our return on equity and pre-tax income as a percentage of gross profit generated.
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A difficult and challenging economic environment may also lead to consolidation or decline in the industry and increased price-based competition.
−Removed: We continually review the marketplace to identify new and emerging vendors and products to potentially add to our vendor partners.
+Added: We continually review the marketplace to identify new, emerging and disruptive vendors and products to potentially add to our vendor partners.
The Company operates distribution facilities in Millersville, Maryland and Dublin, Ireland.
Solutions Segment
−Removed: We also provide comprehensive IT solutions directly to end users through our Solutions segment, which accounted for approximately 5 % of our consolidated net sales and 14% of our consolidated gross profit during the year ended December 31, 2024.
+Added: We also provide comprehensive IT solutions directly to end users through our Solutions segment, which accounted for approximatel y 4% of our consolidated net sales and 13% of our consolidated gross profit during the year ended December 31, 2025.
Products in this segment are acquired directly from OEMs, software developers or distributors and sold to end users.
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An essential part of our ongoing operations and strategic growth plan in our Distribution segment is the continued recruitment of software vendors for which we become authorized distributors of their products.
−Removed: Through our Distribution segme nt, we sell a wide variety of technology products from a broad range of software vendors and manufacturers, such as Bluebeam Software, Microsoft, Delinea, Micro Focus, SmartBear Software, SolarWinds, Sophos, TechSmith, Trend Micro, Unitrends, Tintri and Extrahop .
+Added: Through our Distribution segme nt, we sell a wide variety of technology products from a broad range of software vendors and manufacturers, such as Adobe, Bluebeam Software, Dark Trace, Delinea, ExtraHop, Fortinet, Micro Focus, Microsoft, SmartBear Software, SolarWinds, Sophos, TechSmith and Trend Micro.
On a continuous basis, we screen new vendors and products for inclusion in our line card based on their features, quality, price, profit margins and current market trends.
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As a result, our relationships with our key vendor partners tend to be long-term in nature despite the absence of long-term contracts, with a significant portion of sales derived from annually recurring renewals of software maintenance and subscription agreements related to our partners embedded base of customers utilizing their software products.
−Removed: Additionally, a key part of our strategic growth plan is to provide a high level of support to select emerging technology vendors through our Climb Elevate program to develop future relationships throughout the growth cycle of a vendor partner.
+Added: Additionally, a key part of our strategic growth plan is to provide a high level of support to select emerging and disruptive technology vendors through our Climb Elevate program to develop future relationships throughout the growth cycle of a vendor partner.
+Added: The Climb Elevate program allows resellers and vendors to connect through the Company for products typically outside of the main line-card.
In our Solutions business, an essential part of our strategic growth plan is to pursue opportunities with higher growth prospects and gross margin characteristics through the sale of specialty products, services and cloud offerings.
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Our strategic growth plan is to expand our cloud offerings by leveraging these support services to other markets and products.
−Removed: For the year ended December 31, 2024, we had one vendor that accounted for 10% of our consolidated purchases and our largest five vendors generated approxim ately 29 % of our consolidated purchases.
−Removed: For the year ended December 31, 2023, this same vendor accounted for 14% o f our consolidated purchases.
+Added: For the year ended December 31, 2025, the Company had no major vendors that accounted for greater than 10% of our consolidated purchases during the year, compared to one vendor that accounted for 10% and 1 4% of our consolidated purchases, respectively, for the years ended December 31, 2024 and 2023.
+Added: For the year ended December 31, 2025, our largest five vendors generated approxim ately 29% of our consolidated purchases.
The loss of a key vendor or group of vendors could disrupt our product availability and otherwise have an adverse effect on the Company.
The Company predominantly sells third party software, software subscriptions, and maintenance.
−Removed: Sales of hardware and peripherals consistently represente d 6% of o ur gross billings in 2024 and 2023.
+Added: Sales of hardware and peripherals consistently represen ted 8% in 2025 and 6% of o ur gross billings, an operational metric, in 2024 and 2023.
Our vendor and reseller partners are increasingly incorporating cloud and hybrid cloud products into their portfolios.
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As a result, an increasing proportion of our sales in 2025 were from VARs, driven by a continued focus on increasing sales to larger VARs with more than $1 million in annual sales.
−Removed: For the year ended December 31, 2024, the Company had three c ustomers, all of which are considered DMRs, that accounted for 18%, 14% and 11%, respectively, of consolidated net sales and as of December 31, 2024, 12%, 6% and 19%, respectively, of total net accounts receivable.
+Added: For the year ended December 31, 2025, the Company had two c ustomers, all of which are considered DMRs, that accounted for 24% and 13%, respectively, of consolidated net sales and as of December 31, 2025, 15% and 8%, re spectively, of total net accounts receivable.
+Added: For the year ended December 31, 2024, the Company had three customers that accounted for 18%, 1 4%, and 11%, respectively, of consolidated net sales and as of December 31, 2024, 12%, 6% and 19%, r espectively, of total net accounts receivable.
For the year ended December 31, 2023, there were two customers that accounted for 20%, and 15%, respectively, of consolidated net sales and as of December 31, 2023, 15% and 6%, respectively, of total net accounts receivable.
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The loss of a key customer or a group of customers could have an adverse effect on the Company.
−Removed: Net sales in Europe and the United Kingdom represented 21 % and 19% of our consolidated net sales in 2024 and 2023, respectively.
+Added: Net sales to customers in the United Kingdom repr esented 13%, 14% and 15% of our consolidated net sales in 2025 , 2024 and 2023, respectively.
+Added: Net sales to customers in Europe, excluding the United Kingdom, represented 5%, 7%, and 4% of our consolidated net sales in 2025, 2024 and 2023, respectively.
Net sales to customers in Canada represented 5%, 6% and 7% of our consolidated net sales in 2025, 2024 and 2023, respectively.
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The Company promotes the use of EDI with its vendor partners and customers, which helps reduce overhead and the use of paper in the ordering process.
−Removed: The Company operates in a highly competitive environment, both in the United States and internationally.
+Added: The Company operates in a highly competitive environment, both in North America and Europe.
There is significant competition within each market segment and geography served that creates pricing pressure and the need to continually improve services.
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The way software products are distributed and sold is constantly changing, and new methods of distribution and sale may emerge or expand, including direct sales by technology providers to end users, and the introduction of cloud versions of their products.
−Removed: As an IT channel solutions provider, a critical element of our strategic growth plan is to maintain our ability to offer an efficient route to market for emerging technology vendors.
+Added: As an IT channel solutions provider, a critical element of our strategic growth plan is to maintain our ability to offer an efficient route to market for emerging and disruptive technology vendors.
Additionally, a key element of our strategic growth plan is to capitalize on market changes by implementing new value added services such as cloud support and integration offerings.
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INGM), as well as specialty distributors.
−Removed: We believe we offer a compelling solution for emerging technology vendors seeking to establish the IT channel as a route to market, by offering broad distribution capabilities with more flexibility than some of our larger competitors.
−Removed: In our Solutions segment, we compete against a large variety of IT solutions providers including e-commerce sites, service organizations, value added resellers, cloud solution providers and technology providers offering direct solutions.
+Added: We believe we offer a compelling solution for emerging and disruptive technology vendors seeking to establish the IT channel as a route to market, by offering broad distribution capabilities with more flexibility than some of our larger competitors.
+Added: In our Solutions segment, we compete against a large variety of IT solutions providers including e-commerce sites, service organizations, VARs, cloud solution providers and technology providers offering direct solutions.
We believe that our ability to offer software developers and IT professionals easy access to a wide selection of desired IT products at reasonable prices with prompt delivery and high customer service levels, along with our good relationships with vendor partners, allows us to compete effectively.
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The following table shows the Company’s approximate headcount by region:
+Added: North America
Workforce Health and Safety
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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.