1 unchanged sentence
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”.
−Removed: 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 “GreyMatter”.
+Added: 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.
−Removed: On October 31, 2022, the Company adopted its current name, Climb Global Solutions, Inc.
Our common stock, par value $0.01 per share (“Common Stock”) is listed on The NASDAQ Global Market under the symbol “CLMB”.
3 unchanged sentences
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.
−Removed: Generally, a vendor authorizes a limited number of companies to act as distributors of their product and sell to resellers of their product.
+Added: 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 resellers, government resellers, system integrators, direct marketers, and national IT superstores.
8 unchanged sentences
We continually review the marketplace to identify new and emerging vendors and products to potentially add to our vendor partners.
−Removed: Solution Segment
−Removed: We also provide comprehensive IT solutions directly to end users through our Solutions segment, which accounted for approximately 7% of our consolidated net sales and 17% of our consolidated gross profit during the year ended December 31, 2022.
−Removed: Products in this segment are acquired directly from OEMS, software developers or distributors
−Removed: and sold to end users.
+Added: The Company operates a distribution facility in Eatontown, New Jersey and Dublin, Ireland.
+Added: Solutions Segment
+Added: We also provide comprehensive IT solutions directly to end users through our Solutions segment, which accounted for approximately 8% of our consolidated net sales and 17% of our consolidated gross profit during the year
+Added: ended December 31, 2023.
+Added: Products in this segment are acquired directly from OEMS, software developers or distributors and sold to end users.
We provide customer service, billing, sales and marketing support in this segment and provide extended payment terms to facilitate sales.
−Removed: The Company operates a distribution facility in Eatontown, New Jersey.
We view acquisitions as an important part of our strategic growth plan.
In 2020, we completed two acquisitions to add scale, broaden our geographic footprint, expand partner relationships and add cloud support capabilities.
−Removed: In 2022, we completed the acquisition of Spinnakar Limited (“Spinnakar”), which expanded our sales presence in the United Kingdom distribution operations and brought key vendor partner relationships to our portfolio.
−Removed: We plan to continue to evaluate acquisition opportunities as part of our strategic growth plan going forward.
+Added: In 2022, we completed an acquisition that expanded our sales presence in the United Kingdom distribution operations.
+Added: In 2023, we completed the acquisition of Data Solutions Holdings Limited (“Data Solutions”), which further expanded our geographic footprint and partner relationships in the United Kingdom and Ireland distribution operations.
+Added: We plan to continue to evaluate acquisition opportunities as part of our overall capital allocation strategy and continuing growth plan.
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.
9 unchanged sentences
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, 2022, the Company had two vendors that accounted for 17% and 9%, respectively, of our consolidated purchases.
−Removed: For the year ended December 31, 2021, these same two vendors accounted for 20% and 10%, respectively, of our consolidated purchases.
+Added: For the year ended December 31, 2023, we had one vendor that accounted for 14% of our consolidated purchases and our largest five vendors generated approximately 40% of our consolidated purchases.
+Added: For the year ended December 31, 2022, this same vendor accounted for 17% 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 represented 6% and 5% of our adjusted gross billings in 2022 and 2021, respectively.
+Added: Sales of hardware and peripherals represented 6% of our adjusted gross billings in 2023 and 2022, respectively.
Our vendor and reseller partners are increasingly incorporating cloud and hybrid cloud products into their portfolios.
1 unchanged sentence
This includes maintaining infrastructure to facilitate licensing of cloud and SaaS products, providing technical support for cloud products, and providing integration and enablement
−Removed: We currently have the ability to provide support for these cloud services in the United Kingdom and Europe, and plan to continue to leverage these capabilities to provide cloud support services throughout our worldwide operations.
+Added: We currently have the ability to provide support for these cloud services in North America, United Kingdom and Europe, and plan to continue to leverage these capabilities to provide cloud support services throughout our worldwide operations.
Marketing and Distribution
9 unchanged sentences
Our top five customers accounted for 51% and 52% of consolidated net sales in 2023 and 2022, respectively.
+Added: The loss of a key customer or a group of customers could have an adverse effect on the Company.
+Added: Net sales in Europe and the UK represented 19% and 14% of our consolidated net sales in 2023 and 2022, respectively.
Net sales to customers in Canada represented 7% and 8% of our consolidated net sales in 2023 and 2022, respectively.
−Removed: Net sales in Europe and the rest of the world represented 14% and 13% of our consolidated net sales in 2022 and 2021, respectively.
For geographic financial information, please refer to Note 13 in the Notes to our Consolidated Financial Statements.
11 unchanged sentences
Inventory management techniques, such as “drop shipping” allow the Company to offer a greater range of products without increased inventory requirements or cost of carrying inventory.
−Removed: Inventory levels may vary from period to period, due in part to increases or decreases in sales levels, the Company’s practice of making advance purchases when it deems the terms of such purchases to be attractive, and the addition of new vendor partners and products.
−Removed: From time to time, we may make advance payments to vendors to apply
−Removed: against future purchases from the vendor.
+Added: Inventory levels may vary from period to period, due in part to increases or decreases in sales levels, the Company’s practice of making advance purchases when it deems the terms of such purchases to be attractive, and the
+Added: addition of new vendor partners and products.
+Added: From time to time, we may make advance payments to vendors to apply against future purchases from the vendor.
Moreover, the Company’s order fulfillment and inventory control systems allow the Company to order certain products in time for next day shipping.
25 unchanged sentences
Trademarks, Service Marks and Domain Names
−Removed: The Company conducts its business under various trademarks and service marks including Climb Channel Solutions, Grey Matter, Cloud Know How and International Software Partners.
−Removed: The Company protects these trademarks and service marks and believes that they have significant value to us and are important factors in our marketing programs.
+Added: The Company conducts its business under various trademarks and service marks including Climb Channel Solutions, Grey Matter, Climb Global Services and International Software Partners.
+Added: The Company protects these
+Added: trademarks and service marks and believes that they have significant value to us and are important factors in our marketing programs.
We have registered and maintained Internet domain names, including “climbglobalsolutions.com”.
19 unchanged sentences
We take workplace safety very seriously and our robust safety program means that we are constantly evaluating our safety protocols in an effort to keep our facilities safe for our employees.
−Removed: The Company continued to provide a safe work environment as the COVID-19 pandemic persisted during 2022.
−Removed: It aligned with and followed the guidance of the world’s leading health authorities, as well as related local, regional, and national government directives.
−Removed: We continue to monitor the impact of the COVID-19 pandemic on our teammates and within our operations, and proactively modify or adopt new practices to promote their health and safety.
Compensation and Benefits
As part of our compensation philosophy, we believe that we must offer and maintain market competitive compensation and benefit programs for our employees in order to attract and retain superior talent.
−Removed: In addition to competitive base wages, additional programs include the 2021 Omnibus Incentive Plan, a company matched 401(k) Plan, healthcare and insurance benefits, flexible spending accounts, paid time off and employee assistance programs.
+Added: In addition to
+Added: competitive base wages, additional programs include the 2021 Omnibus Incentive Plan, a company matched 401(k) Plan, healthcare and insurance benefits, flexible spending accounts, paid time off and employee assistance programs.
Diversity and Inclusion
4 unchanged sentences
We have operations throughout North America and Europe.
−Removed: Our website address is www.climbglobalsolutions.com, and the other web sites maintained by our business include www.climbcs.com and www.greymatter.com.
+Added: Our website address is www.climbglobalsolutions.com, and the other web sites maintained by our business include www.climbcs.com, www.greymatter.com and www.datasolutions.co.uk.
Information contained on or accessible through our websites is neither a part of this Annual Report nor incorporated by reference herein, and any references to our website and the inclusion of our website address in this Annual Report are intended to be inactive textual references only.
Available Information
−Removed: Under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), the Company is required to file annual, quarterly and current reports, proxy and information statements and other information with the Securities and Exchange Commission (“SEC”).
+Added: Under the Exchange Act, the Company is required to file annual, quarterly and current reports, proxy and information statements and other information with the Securities and Exchange Commission (“SEC”).
The SEC maintains a web site at http://www.sec.gov that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC, including us.
4 unchanged sentences
The full text of the Code of Ethics and Business Conduct, is available at our web site, http://www.climbglobalsolutions.com.
−Removed: We intend to disclose any amendment to, or waiver from, a provision of the Code of Ethical Conduct that applies to its Chief Executive Officer or Chief Financial Officer on our web site.
+Added: The Company intends to disclose any amendment to, or waiver from, a provision of the Code of Ethical Conduct that applies to its Chief Executive Officer or Chief Financial Officer on our web site.
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.