Company Quick10K Filing
Cool Holdings
Price1.29 EPS-1
Shares9 P/E-1
MCap12 P/FCF-3
Net Debt22 EBIT-13
TEV34 TEV/EBIT-3
TTM 2019-09-30, in MM, except price, ratios
10-Q 2020-05-02 Filed 2020-07-31
10-K 2019-12-31 Filed 2020-05-29
10-Q 2019-09-30 Filed 2019-11-19
10-Q 2019-06-30 Filed 2019-08-14
10-Q 2019-03-31 Filed 2019-05-15
10-K 2018-12-31 Filed 2019-04-16
10-Q 2018-09-30 Filed 2018-11-14
10-Q 2018-06-30 Filed 2018-08-14
10-Q 2018-03-31 Filed 2018-05-21
10-K 2017-12-31 Filed 2018-03-08
10-Q 2017-09-30 Filed 2017-11-13
10-Q 2017-06-30 Filed 2017-08-11
10-Q 2017-03-31 Filed 2017-05-12
10-K 2016-12-31 Filed 2017-03-10
10-Q 2016-09-30 Filed 2016-11-10
10-Q 2016-06-30 Filed 2016-08-05
10-Q 2016-03-31 Filed 2016-05-06
10-K 2015-12-31 Filed 2016-03-11
10-Q 2015-09-30 Filed 2015-11-06
10-Q 2015-06-30 Filed 2015-08-07
10-Q 2015-03-31 Filed 2015-05-08
10-K 2014-12-31 Filed 2015-03-10
10-Q 2014-09-30 Filed 2014-11-14
10-Q 2014-06-30 Filed 2014-08-14
10-Q 2014-03-31 Filed 2014-05-14
10-K 2013-12-31 Filed 2014-03-14
10-Q 2013-09-30 Filed 2013-11-07
10-Q 2013-06-30 Filed 2013-08-14
10-Q 2013-03-31 Filed 2013-05-14
10-K 2012-12-31 Filed 2013-03-22
10-Q 2012-09-30 Filed 2012-11-14
10-Q 2012-06-30 Filed 2012-08-14
10-Q 2012-03-31 Filed 2012-05-04
10-K 2011-12-31 Filed 2012-03-16
10-Q 2011-09-30 Filed 2011-11-10
10-Q 2011-06-30 Filed 2011-08-12
10-Q 2011-03-31 Filed 2011-05-16
10-K 2010-12-31 Filed 2011-03-31
10-Q 2010-09-30 Filed 2010-11-12
10-Q 2010-06-30 Filed 2010-08-16
10-Q 2010-03-31 Filed 2010-05-14
10-K 2009-12-31 Filed 2010-03-31
8-K 2020-07-31 Earnings, Exhibits
8-K 2020-06-15
8-K 2020-06-05
8-K 2020-04-16
8-K 2020-04-06
8-K 2020-03-30
8-K 2020-03-27
8-K 2020-03-11
8-K 2020-01-31
8-K 2020-01-15
8-K 2019-12-30
8-K 2019-11-29
8-K 2019-11-14
8-K 2019-10-31
8-K 2019-10-24
8-K 2019-10-21
8-K 2019-10-21
8-K 2019-10-01
8-K 2019-09-20
8-K 2019-09-11
8-K 2019-07-09
8-K 2019-07-08
8-K 2019-06-05
8-K 2019-05-16
8-K 2019-05-09
8-K 2019-05-09
8-K 2019-04-23
8-K 2019-01-04
8-K 2018-12-27
8-K 2018-12-19
8-K 2018-12-14
8-K 2018-11-29
8-K 2018-10-24
8-K 2018-09-27
8-K 2018-09-13
8-K 2018-08-17
8-K 2018-08-15
8-K 2018-07-09
8-K 2018-06-08
8-K 2018-06-01
8-K 2018-04-11
8-K 2018-04-06
8-K 2018-03-27
8-K 2018-03-08
8-K 2018-03-05
8-K 2018-02-12
8-K 2018-01-19
8-K 2017-12-31

AWSM 10Q Quarterly Report

Part I. Financial Information
Item 1. Financial Statements
Note 1. Basis of Presentation
Note 2: Going Concern Considerations
Note 4. Stock - Based Compensation
Note 5. Earnings per Share
Note 6. Income Taxes
Note 7. Inventory
Note 8. Property and Equipment
Note 9. Intangible Asset and Goodwill
Note 10. Accrued Expenses
Note 11. Notes Payable
Note 12. Capital Stock
Note 13. Recent Accounting Pronouncements
Note 14. Segments
Note 15. Commitments and Contingencies
Note 16. Fair Value of Financial Instruments
Note 17. Acquisition of Simply Mac
Note 18. Sale of Latin American Subsidiaries
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 4. Controls and Procedures
Part II. Other Information
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 6. Exhibits
EX-31.1 awsm-ex311_7.htm
EX-31.2 awsm-ex312_6.htm
EX-32.1 awsm-ex321_9.htm

Cool Holdings Earnings 2020-05-02

Balance SheetIncome StatementCash Flow
3021123-6-152012201420172020
Assets, Equity
201482-4-102012201420172020
Rev, G Profit, Net Income
4.62.70.9-1.0-2.8-4.72012201420172020
Ops, Inv, Fin

10-Q 1 awsm-10q_20200502.htm 10-Q awsm-10q_20200502.htm

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended May 2, 2020

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _______ to __________

Commission File Number—001-32217

 

Cool Holdings, Inc.

(Exact name of registrant as specified in its charter)

 

 Maryland

 

33-0599368

(State or other jurisdiction of

incorporation or organization)

 

(IRS Employer

Identification Number)

2001 NW 84th Avenue, Miami, FL 33122

(Address of principal executive offices including zip code)

(786) 254-6709

(Registrant’s telephone number, including area code)

 

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

 

Trading

Symbol(s)

 

Name of each exchange on which registered

Common Stock, par value $0.001 per share

 

AWSM

 

OTC Markets Group Inc.

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes       No  

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files)    Yes       No  

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer

 

  

Accelerated filer

 

Non-accelerated filer

 

  

Smaller reporting company

 

Emerging growth company

 

 

 

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes       No  

As of July 31, 2020, the Registrant had 110,536,882 shares outstanding of its $0.001 par value common stock.

 


Cool Holdings, Inc.

FORM 10-Q

For the 13 weeks ended May 2, 2020

Table of Contents

 

 

2


Part I. FINANCIAL INFORMATION

Item 1. Financial Statements

Cool Holdings, Inc.

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)

(Amounts in thousands, except per share data)

(unaudited)

 

 

 

13 Weeks Ended May 2, 2020

 

 

Three Months Ended March 31, 2019

 

 

Transition Period January 1 to February 1, 2020

 

Net sales

 

$

13,943

 

 

$

2,529

 

 

$

5,285

 

Cost of sales

 

 

9,448

 

 

 

2,168

 

 

 

3,777

 

Gross profit

 

 

4,495

 

 

 

361

 

 

 

1,508

 

Selling, general and administrative expenses

 

 

7,126

 

 

 

2,713

 

 

 

2,358

 

Operating loss

 

 

(2,631

)

 

 

(2,352

)

 

 

(850

)

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

Interest

 

 

(924

)

 

 

(728

)

 

 

(532

)

Decrease (increase) in fair value of derivative liability

 

 

543

 

 

 

 

 

 

(807

)

Gain (loss) on extinguishment of debt

 

 

13,642

 

 

 

(9

)

 

 

 

Other income (expense), net

 

 

(56

)

 

 

8

 

 

 

 

Income (loss) from continuing operations before provision for income taxes

 

 

10,574

 

 

 

(3,081

)

 

 

(2,189

)

Provision for income taxes

 

 

 

 

 

(1

)

 

 

 

Income (loss) from continuing operations

 

 

10,574

 

 

 

(3,082

)

 

 

(2,189

)

Income (loss) from discontinued operations

 

 

(236

)

 

 

(577

)

 

 

66

 

Net income (loss)

 

$

10,338

 

 

$

(3,659

)

 

$

(2,123

)

Basic income (loss) per share:

 

 

 

 

 

 

 

 

 

 

 

 

Continuing operations

 

$

0.16

 

 

$

(0.39

)

 

$

(0.05

)

Discontinued operations

 

 

(0.00

)

 

 

(0.07

)

 

 

0.00

 

Total

 

$

0.16

 

 

$

(0.46

)

 

$

(0.05

)

Diluted income (loss) per share:

 

 

 

 

 

 

 

 

 

 

 

 

Continuing operations

 

$

0.16

 

 

$

(0.39

)

 

$

(0.05

)

Discontinued operations

 

 

(0.00

)

 

 

(0.07

)

 

 

0.00

 

Total

 

$

0.16

 

 

$

(0.46

)

 

$

(0.05

)

Weighted-average number of common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

65,728

 

 

 

7,963

 

 

 

43,777

 

Diluted

 

 

65,943

 

 

 

7,963

 

 

 

43,777

 

Comprehensive income (loss):

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

10,338

 

 

$

(3,659

)

 

$

(2,123

)

Foreign currency translation adjustments

 

 

128

 

 

 

(36

)

 

 

(85

)

Comprehensive income (loss)

 

$

10,466

 

 

$

(3,695

)

 

$

(2,208

)

 

Accompanying notes are an integral part of these condensed consolidated financial statements.

 

 

3


Cool Holdings, Inc.

Condensed Consolidated Balance Sheets

(Amounts in thousands, except per share data)

 

 

 

May 2, 2020

 

 

December 31,

2019

 

 

February 1, 2020

 

 

 

(unaudited)

 

 

 

 

 

 

(unaudited)

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

4,236

 

 

$

2,638

 

 

$

1,972

 

Restricted cash

 

 

650

 

 

 

1,196

 

 

 

1,197

 

Trade accounts receivable, net of allowance for doubtful accounts of $0, $39

   and $17, respectively

 

 

461

 

 

 

1,151

 

 

 

706

 

Other accounts receivable

 

 

503

 

 

 

1,701

 

 

 

1,735

 

Inventory

 

 

5,298

 

 

 

7,396

 

 

 

7,652

 

Prepaid assets

 

 

664

 

 

 

846

 

 

 

877

 

Current assets of discontinued operations

 

 

185

 

 

 

1,560

 

 

 

713

 

Total current assets

 

 

11,997

 

 

 

16,488

 

 

 

14,852

 

Property and equipment, net

 

 

669

 

 

 

858

 

 

 

808

 

Operating lease right-of-use assets

 

 

8,369

 

 

 

7,504

 

 

 

8,760

 

Intangibles, net

 

 

2,009

 

 

 

2,055

 

 

 

2,044

 

Goodwill

 

 

699

 

 

 

699

 

 

 

699

 

Other assets

 

 

280

 

 

 

245

 

 

 

245

 

Total assets

 

$

24,023

 

 

$

27,849

 

 

$

27,408

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Accounts payable

 

$

4,776

 

 

$

6,040

 

 

$

6,080

 

Accrued expenses and other current liabilities

 

 

2,377

 

 

 

5,408

 

 

 

5,286

 

Current portion of operating lease liabilities

 

 

2,770

 

 

 

2,577

 

 

 

2,768

 

Notes payable

 

 

1,608

 

 

 

13,227

 

 

 

13,685

 

Derivative liability

 

 

 

 

 

1,721

 

 

 

2,527

 

Current liabilities of discontinued operations

 

 

1,528

 

 

 

3,792

 

 

 

2,225

 

Total current liabilities

 

 

13,059

 

 

 

32,765

 

 

 

32,571

 

Long-term liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Notes payable

 

 

3,315

 

 

 

85

 

 

 

 

Operating lease liabilities

 

 

5,819

 

 

 

5,023

 

 

 

6,109

 

Total liabilities

 

 

22,193

 

 

 

37,873

 

 

 

38,680

 

Commitments and Contingencies

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders’ equity (deficit):

 

 

 

 

 

 

 

 

 

 

 

 

Preferred stock, $0.001 par value, 10,000 shares authorized; 25 shares issued and outstanding as of all periods presented.

 

 

 

 

 

 

 

 

 

Common stock, $0.001 par value, 150,000 shares authorized; 106,465, 43,777

   and 43,777 shares issued and outstanding as of May 2, 2020,

   December 31, 2019 and February 1, 2020, respectively.

 

 

107

 

 

 

44

 

 

 

44

 

Additional paid-in capital common stock

 

 

51,490

 

 

 

49,074

 

 

 

49,081

 

Accumulated other comprehensive loss

 

 

91

 

 

 

(1,069

)

 

 

(201

)

Accumulated deficit

 

 

(49,858

)

 

 

(58,073

)

 

 

(60,196

)

Total stockholders’ equity (deficit)

 

 

1,830

 

 

 

(10,024

)

 

 

(11,272

)

Total liabilities and stockholders’ equity (deficit)

 

$

24,023

 

 

$

27,849

 

 

$

27,408

 

 

Accompanying notes are an integral part of these condensed consolidated financial statements.

 

4


Cool Holdings, Inc.

Condensed Consolidated Statements of Stockholders’ Equity (Deficit)

(Amounts in thousands)

(unaudited)

 

 

 

Preferred Stock

 

 

Common Stock

 

 

Additional

Paid-In

 

 

Accumulated

Other

Comprehensive

 

 

Accumulated

 

 

 

 

 

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Income (Loss)

 

 

Deficit

 

 

Total

 

Balance, December 31, 2019

 

 

25

 

 

$

 

 

 

43,777

 

 

$

44

 

 

$

49,074

 

 

$

(1,069

)

 

$

(58,073

)

 

$

(10,024

)

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

7

 

 

 

 

 

 

 

 

 

7

 

Elimination of other comprehensive loss from sale of foreign subsidiary

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

953

 

 

 

 

 

 

953

 

Foreign currency translation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(85

)

 

 

 

 

 

(85

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2,123

)

 

 

(2,123

)

Balance, February 1, 2020

 

 

25

 

 

 

 

 

 

43,777

 

 

 

44

 

 

 

49,081

 

 

 

(201

)

 

 

(60,196

)

 

 

(11,272

)

Stock-based compensation

 

 

 

 

 

 

 

 

3,000

 

 

 

3

 

 

 

148

 

 

 

 

 

 

 

 

 

151

 

Debt exchange

 

 

 

 

 

 

 

 

59,688

 

 

 

60

 

 

 

2,261

 

 

 

 

 

 

 

 

 

2,321

 

Elimination of other comprehensive loss from sale of foreign subsidiary

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

164

 

 

 

 

 

 

164

 

Foreign currency translation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

128

 

 

 

 

 

 

128

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

10,338

 

 

 

10,338

 

Balance, May 2, 2020

 

 

25

 

 

$

 

 

 

106,465

 

 

$

107

 

 

$

51,490

 

 

$

91

 

 

$

(49,858

)

 

$

1,830

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred Stock

 

 

Common Stock

 

 

Additional

Paid-In

 

 

Accumulated

Other

Comprehensive

 

 

Accumulated

 

 

 

 

 

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Loss

 

 

Deficit

 

 

Total

 

Balance, December 31, 2018

 

 

322

 

 

$

 

 

 

7,793

 

 

$

8

 

 

$

35,303

 

 

$

(1,011

)

 

$

(37,057

)

 

$

(2,757

)

Debt exchange

 

 

 

 

 

 

 

 

93

 

 

 

 

 

 

173

 

 

 

 

 

 

 

 

 

173

 

Warrant exercises

 

 

 

 

 

 

 

 

382

 

 

 

 

 

 

1,154

 

 

 

 

 

 

 

 

 

1,154

 

Foreign currency translation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(35

)

 

 

 

 

 

(35

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(3,659

)

 

 

(3,659

)

Balance, March 31, 2019

 

 

322

 

 

$

 

 

 

8,268

 

 

$

8

 

 

$

36,630

 

 

$

(1,046

)

 

$

(40,716

)

 

$

(5,124

)

 

 

Accompanying notes are an integral part of these condensed consolidated financial statements.

5


Cool Holdings, Inc.

Condensed Consolidated Statements of Cash Flows

(Amounts in thousands)

(unaudited)

 

 

 

13 Weeks Ended May 2, 2020

 

 

Three Months Ended March 31, 2019

 

 

Transition Period January 1 to February 1, 2020

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

10,338

 

 

$

(3,659

)

 

$

(2,123

)

Less: income (loss) from discontinued operations

 

 

(236

)

 

 

(577

)

 

 

66

 

Income (loss) from continuing operations

 

 

10,574

 

 

 

(3,082

)

 

 

(2,189

)

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

180

 

 

 

63

 

 

 

62

 

Accretion of debt discount

 

 

666

 

 

 

521

 

 

 

373

 

Non-cash interest

 

 

232

 

 

 

 

 

 

 

Provision for (recovery of) bad debts

 

 

(16

)

 

 

6

 

 

 

(22

)

Stock-based compensation

 

 

151

 

 

 

30

 

 

 

8

 

Loss (gain) on debt conversion

 

 

(13,642

)

 

 

9

 

 

 

 

Provision for obsolete inventory

 

 

3

 

 

 

 

 

 

36

 

Loss (gain) on derivative liability

 

 

(543

)

 

 

 

 

 

807

 

Impairment of right of use assets

 

 

53

 

 

 

 

 

 

 

Change in operating assets and liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Trade accounts receivable

 

 

261

 

 

 

104

 

 

 

467

 

Other accounts receivable

 

 

1,006

 

 

 

270

 

 

 

(34

)

Inventory

 

 

2,351

 

 

 

297

 

 

 

(293

)

Prepaid assets

 

 

213

 

 

 

(48

)

 

 

(32

)

Other assets

 

 

(35

)

 

 

(1

)

 

 

 

Accounts payable

 

 

(1,136

)

 

 

(343

)

 

 

40

 

Accrued expenses

 

 

(1,388

)

 

 

120

 

 

 

(122

)

Operating lease right of use assets and lease liabilities

 

 

50

 

 

 

32

 

 

 

20

 

Net cash used in continuing operating activities

 

 

(1,020

)

 

 

(2,022

)

 

 

(879

)

Net cash provided by (used in) discontinued operating activities

 

 

(232

)

 

 

(67

)

 

 

299

 

Net cash used in operating activities

 

 

(1,252

)

 

 

(2,089

)

 

 

(580

)

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

Purchase of property and equipment

 

 

(7

)

 

 

(1

)

 

 

 

Sale of investment securities

 

 

 

 

 

23

 

 

 

 

Net cash provided by (used in) investing activities

 

 

(7

)

 

 

22

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

Proceeds from issuance of notes payable, net of debt issuance costs

 

 

3,098

 

 

 

 

 

 

 

Payment of notes payable

 

 

(250

)

 

 

(284

)

 

 

 

Proceeds from warrant exercises

 

 

 

 

 

1,154

 

 

 

 

Net cash provided by financing activities

 

 

2,848

 

 

 

870

 

 

 

 

Effect of exchange rate changes on cash

 

 

128

 

 

 

(36

)

 

 

(85

)

Net increase (decrease) in cash and cash equivalents

 

 

1,717

 

 

 

(1,233

)

 

 

(665

)

Cash, cash equivalents and restricted cash, beginning of period

 

 

3,169