Investors Coolholdings

Cool Holdings Reports First Quarter Results

  • Net Sales of $13.9 million
  • Reduction of $14.5 million of Debt

MIAMI, July 31, 2020 – Cool Holdings, Inc. (OTCQB: AWSM), (the “Company” or “Cool Holdings”), the parent company of Simply Mac, Inc., the largest Apple Premier Partner in the U.S. (“Simply Mac”), today announced results for its first fiscal quarter ended May 2, 2020.

Reinier Voigt, President and Chief Executive Officer of Cool Holdings, stated, “Our first fiscal quarter was unprecedented in many ways, and included both highs and lows. We were most gratified in the month of March to complete the restructuring of our outstanding debt, which gave rise to a $13.6 million gain and cured the deficit balance in our stockholders’ equity. Conversely, it was mid-March when the COVID-19 pandemic forced us to close 12 of our 42 stores, significantly reduce operating hours at the remaining stores and lay-off half our workforce. During this unprecedented time, our focus shifted to ensuring the safety and well-being of both our employees and customers.”  

Mr. Voigt added, “Because our business is instrumental in supporting adults working remotely and students studying at home with Apple laptops and tablets, certified repair services and technical support, our stores were deemed “essential” in most markets and we were pleased to fill that need, especially while Apple stores were closed. The pandemic significantly depressed our sales and gross profit during the quarter, as we weren’t able to begin reopening stores and rehiring employees until early May. A further challenge came in the form of a constrained supply chain, which resulted in product shortages that we hope will be corrected in the near future.”

Commenting further, Mr. Voigt noted, “As we look to the future, we are cautiously optimistic. The uncertainty of COVID-19 is still a lingering cloud, but our debt restructuring has left us with a much healthier balance sheet from which to grow our business. We have gained new customers in local markets during the time other stores were closed, and hope that our customer satisfaction scores are indicators that they may become loyal ‘repeat’ customers. Although difficult, these times provide us with a rare opportunity to open new stores selectively and relocate old stores with expiring leases at very affordable lease rates and tenant improvement allowances as landlords actively search for tenants. Having recently disposed of our Latin American operations, we are now directing all our energies and focus on operational efficiencies, expense control and working capital management. This focus has positioned us to take advantage of a recovering supply chain and customer traffic as the pandemic eases.”

First Quarter Results

Net sales for the first quarter of fiscal 2021 amounted to $13.9 million, which represented an increase of $11.4 million, or 451%, from $2.5 million in the quarter ended March 31, 2019. The significant increase in sales between the periods is the result of the acquisition of Simply Mac on September 25, 2019. Prior to the acquisition, continuing operations consisted of three OneClick retail stores in Florida and a Cooltech Distribution business, which the Company was in the process of winding down.

Gross profit for the first quarter of fiscal 2021 amounted to $4.5 million, an increase of $4.1 million, or 1,145%, from $361,000 in the quarter ended March 31, 2019. The Company’s gross profit margin for the current quarter was 32.2%, substantially higher than 14.3% in the prior year quarter. The increased gross profit compared to the prior quarter resulted from the addition of the Simply Mac stores, and the improvement in our gross margin percentage reflects the fact that, compared to our OneClick stores in the prior year, a higher proportion of Simply Mac store sales are derived from service, which generates higher gross margins compared to hardware sales.

Total operating expenses for the first quarter of fiscal 2021 amounted to $7.1 million, an increase of $4.4 million, or 163%, from $2.7 million in the three months ended March 31, 2019. The increase in operating expenses relates primarily to the acquisition of Simply Mac, but also reflects increased legal, audit and consulting fees.

Within other income (expense), interest expense for the first quarter of fiscal 2021 amounted to $924,000, an increase of $196,000, or 27%, over $728,000 in the three months ended March 31, 2019. The increase is attributable to a much higher debt level prior to the debt restructuring in the current period as compared to the prior year and the fact that the new debt had a much higher effective interest rate after factoring debt discounts arising from conversion features and warrants that were accreted to interest expense over the term of the debt. In the first quarter of fiscal 2021, the Company also recorded a $543,000 gain from the decrease in value of financial derivatives that arose in connection with the issuance of convertible debt and warrants, and recorded a $13.6 million gain on the extinguishment of $14.5 million (89%) in face value of debt previously outstanding at December 31, 2019.

Net income for the fiscal 2021 first quarter amounted to $10.3 million compared to a net loss of $3.7 million in the three months ended March 31, 2019.

On the Company’s balance sheet, the aggregate amount of cash, cash equivalents and restricted cash as of May 2, 2020 amounted to $4.9 million, an increase of $3.0 million from the balance at December 31, 2019. From a working capital perspective, excluding the current portion of operating lease liabilities, the Company had $1.7 million in working capital as of May 2, 2020, a significant improvement from the $13.7 million working-capital deficit as of December 31, 2019.  The working capital improvement reflects the debt restructuring, which also resulted in an increase in stockholders’ equity from a $10.0 million deficit as of December 31, 2019 to a positive $1.8 million as of May 2, 2020.

About Cool Holdings, Inc.

Cool Holdings is a Miami-based company that is the parent of Simply Mac, a chain of 42 retail stores operating in 17 states and an authorized reseller under the Apple Premier Partner program of Apple products and other high-profile consumer electronic brands. Additional information can be found on its website at www.coolholdings.com and www.simplymac.com.

Forward-looking and cautionary statements

Past performance in any period may not be indicative of future results in the next period or the same period in a subsequent year.  We also experience seasonal revenue fluctuations that can be significant from one quarter to another.  Forward-looking statements in this press release and all other statements that are not historical facts are made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements, including those related to the continuing impact of COVID-19, our ability to attract and retain new customers, our ability to open new store locations, our expectations for future lease rates, our ability to capitalize on operational efficiencies, our supply chain and our customer traffic, involve factors, risks, and uncertainties that may cause actual results in future periods to differ materially from such statements. There are a number of factors that could cause actual events to differ materially from those indicated by such forward-looking statements, including actions by third parties. A list and description of various risk factors related to Cool Holdings, Inc. can be found and reviewed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019, which can be accessed under the Company’s profile at www.sec.gov. These forward-looking statements speak only as of the date of this release and we undertake no obligation to publicly update any forward-looking statements to reflect new information, events or circumstances after the date of this release, except as required by law.

All product names, logos, and brands are property of their respective owners. All company, product and service names used in this website are for identification purposes only. Use of these names, logos, and brands does not imply endorsement.

Contact:                                                                              

Vernon A. LoForti, CFO
vern.loforti@coolholdings.com

Cool Holdings Reopens Simply Mac Store in Nation’s Largest Outlet Mall in Sunrise Florida

9 Stores Reopened in the last 7 Weeks

MIAMI, June 22, 2020 – Cool Holdings, Inc. (OTCQB: AWSM) (the “Company” or “Cool Holdings”), the parent company of Simply Mac, Inc., the largest Apple Premier Partner in the U.S. (“Simply Mac”), announces the reopening of its Sunrise, Florida store, which was closed temporarily as a result of the COVID-19 pandemic.

Located in the Sawgrass Mills outlet and value retail shopping destination, at 12801 W. Sunrise Blvd., Suite 243, Simply Mac is fully staffed and ready to provide customers with unparalleled shopping experiences. An experienced staff of Apple-trained experts and service professionals are available to assist with purchasing the latest Apple products as well as servicing new and previously purchased Apple desktops, laptops, iPads and more.

“We are thrilled to reopen our Simply Mac store at Sawgrass Mills, which raises our open store count to 41 out of a total of 42 stores in 19 states,” said Reinier Voigt, President and Chief Executive Officer of Cool Holdings. “Our highly qualified team is eager to re-engage with customers to answer all their product questions, explain the latest product features and functions, as well as address a full range of product service needs.”

Simply Mac is taking every precaution to ensure a safe and rewarding shopping experience. Employees working at  Sawgrass Mills will have their temperatures checked before coming in and protective equipment will be worn at all times. Additionally, the store will follow all appropriate guidelines for social distancing and conducting business.

About Cool Holdings, Inc.

Cool Holdings is a Miami-based company that is the parent of Simply Mac, a chain of retail stores and an authorized reseller under the Apple Premier Partner program of Apple products and other high-profile consumer electronic brands. Additional information can be found on its website at www.coolholdings.com and www.simplymac.com.

Forward-looking and cautionary statements

Forward-looking statements in this press release and all other statements that are not historical facts are made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve factors, risks, and uncertainties that may cause actual results in future periods to differ materially from such statements. There are a number of factors that could cause actual events to differ materially from those indicated by such forward-looking statements, including actions by third parties. A list and description of various risk factors related to Cool Holdings, Inc. can be found and reviewed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019, which can be accessed under the Company’s profile at www.sec.gov. These forward-looking statements speak only as of the date of this release and we undertake no obligation to publicly update any forward-looking statements to reflect new information, events or circumstances after the date of this release, except as required by law.

All product names, logos, and brands are property of their respective owners. All company, product and service names used in this website are for identification purposes only. Use of these names, logos, and brands does not imply endorsement.

Contact:                                                                                                                          

Vernon A. LoForti, CFO
vern.loforti@coolholdings.com

Cool Holdings Reopens Two More of its Simply Mac Stores

MIAMI, June 17, 2020 – Cool Holdings, Inc. (OTCQB: AWSM) (the “Company” or “Cool Holdings”), the parent company of Simply Mac, Inc., the largest Apple Premier Partner in the U.S. (“Simply Mac”), announced that it has reopened two more of its Simply Mac stores that had been closed as a result of the COVID-19 pandemic.

The first store to reopen was the Simply Mac store in Eugene, Oregon.  For the past 10 years, the Eugene store was located about 5 miles northwest of the University of Oregon Campus.  The Company took the opportunity at the end of the lease term at that location to move to a new site on East 13th Avenue that is directly across from Campus.  The new store is also immediately adjacent to The Duck Store, the official bookstore of the University of Oregon that has been serving students since 1920.  This new Simply Mac store is the result of a collaboration with The Duck Store, that is also the lessor of the property.

The second store to reopen was the Simply Mac store in Orlando, Florida.  This store is located in the Orlando International Premium Outlets at 4951 International Drive.  It is only two miles from Universal Studios Theme Park and ten miles from Walt Disney World Resort.

Reinier Voigt, President and Chief Executive Officer of Cool Holdings, commented: “We are pleased to have reopened two more of our Simply Mac stores, which raises our open store count to 40 stores in 19 states.  We are also excited about the collaboration we have struck with The Duck Store in Eugene.  In addition to continuing to serve the entire community of Eugene, our new location immediately across the street from campus, provides a greater opportunity for us to support the students, staff, and faculty of the University of Oregon with “all things Apple” including Apple Authorized Repairs, new and pre-owned Mac sales, and a large selection of Apple accessories.  The Eugene store also represents a template we are using as each of our stores approaches the end of its lease.  We assess the performance of each store by examining the desirability of the location, the history of customer foot traffic, order conversion rate, occupancy costs and bottom line store profitability.  In some cases, this analysis may result in a change of location.  In Eugene, we were able to find a better location at a significantly lower overhead cost, which should result in improved store profitability.”

About Cool Holdings, Inc.

Cool Holdings is a Miami-based company that is the parent of Simply Mac, a chain of retail stores and an authorized reseller under the Apple Premier Partner program of Apple products and other high-profile consumer electronic brands.  Additional information can be found on its website at www.coolholdings.com and www.simplymac.com.

Forward-looking and cautionary statements

Forward-looking statements in this press release and all other statements that are not historical facts are made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements, including those related to our efforts to reexamine store locations to improve profitability, involve factors, risks, and uncertainties that may cause actual results in future periods to differ materially from such statements. There are a number of factors that could cause actual events to differ materially from those indicated by such forward-looking statements, including actions by third parties.  A list and description of various risk factors related to Cool Holdings, Inc. can be found and reviewed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019, which can be accessed under the Company’s profile at www.sec.gov. These forward-looking statements speak only as of the date of this release and we undertake no obligation to publicly update any forward-looking statements to reflect new information, events or circumstances after the date of this release, except as required by law.

All product names, logos, and brands are property of their respective owners. All company, product and service names used in this website are for identification purposes only. Use of these names, logos, and brands does not imply endorsement.

Contact:                                                                                                                          

Vernon A. LoForti, CFO
vern.loforti@coolholdings.com

Cool Holdings to Reopen 6 of its Simply Mac Stores and Expand Hours at 28 Stores

MIAMI, May 5, 2020 – Cool Holdings, Inc. (OTCQB: AWSM) (the “Company” or “Cool Holdings”), the parent company of Simply Mac, Inc., the largest Apple Premier Partner in the U.S. (“Simply Mac”), announced that it has begun to reopen and expand the hours of many of its Simply Mac retail stores that had been closed or had hours of operation curtailed as a result of the COVID-19 pandemic.  Four stores located in Johnson City, TN, Lubbock, TX, Missoula, MT, and Springfield, MO were opened on May 4, 2020, and two stores located in Bozeman, MT and Ft. Wayne, IN are scheduled to reopen on May 18, 2020.  The Company had previously reduced hours of operation at all stores by closing on Sundays and Mondays, but is now reopening 28 additional stores on Mondays.  These actions are enabling Simply Mac to rehire many of its employees who were previously laid-off during the closures.

Commenting on the transaction, Reinier Voigt, President and Chief Executive Officer of Cool Holdings, stated: “We are pleased that restrictive conditions in many of the localities where our Simply Mac stores operate are being eased and allowing us to reopen many of our stores and expand our hours of operation.  After these stores are reopened, we will have 38 stores in operation with 6 stores still remaining closed for various reasons.  We are grateful to all our employees who worked diligently through these difficult times to serve the needs of customers at our stores that remained open.  After Apple announced on March 13, 2020 that it would be closing all its domestic retail stores, our Simply Mac stores have been filling an important need to support adults working remotely and students studying at home with Apple laptops, tablets, certified repair services and technical support.”

Commenting further, Mr. Voigt noted: “We are also grateful to the army of first responders across the U.S. who have sacrificed so much to help us through these difficult times.  As a gesture of our thanks to them, during the month of May, all our Simply Mac stores are offering a special discount of $100 off the price of any new MacBook computer to all First Responders.  We are indebted to them for their service.”

About Cool Holdings, Inc.

Cool Holdings is a Miami-based company that is the parent of Simply Mac, a chain of retail stores and an authorized reseller under the Apple Premier Partner program of Apple products and other high-profile consumer electronic brands.  Additional information can be found on its website at www.coolholdings.com and www.simplymac.com.

Forward-looking and cautionary statements

Forward-looking statements in this press release and all other statements that are not historical facts are made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements, including those related to our plans to reopen our Simply Mac stores and expand hours of operation in the future, involve factors, risks, and uncertainties that may cause actual results in future periods to differ materially from such statements. There are a number of factors that could cause actual events to differ materially from those indicated by such forward-looking statements, including actions by third parties.  A list and description of various risk factors related to Cool Holdings, Inc. can be found and reviewed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 and the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2019, both of which can be accessed under the Company’s profile at www.sec.gov. These forward-looking statements speak only as of the date of this release and we undertake no obligation to publicly update any forward-looking statements to reflect new information, events or circumstances after the date of this release, except as required by law.

All product names, logos, and brands are property of their respective owners. All company, product and service names used in this website are for identification purposes only. Use of these names, logos, and brands does not imply endorsement.

Contact:                                                                                                                          

Vernon A. LoForti, CFO
vern.loforti@coolholdings.com

Investors Coolholdings

Cool Holdings Eliminates 92.5% of Debt Inclusive of $8.2 Million Conversion into Equity

MIAMI, April 1, 2020 – Cool Holdings, Inc. (OTCQB: AWSM) (the “Company” or “Cool Holdings”), the parent company of Simply Mac, Inc., the largest Apple Premier Partner in the U.S. (“Simply Mac”), announced today that it has completed a second debt restructuring that resulted in the conversion of debt with an aggregate principal amount of $7,492,166 and accrued interest of $691,014 into common stock of the Company. The aggregate total of $8,183,180 was converted into 48,136,344 shares of common stock at a $0.17 per share conversion price, reflecting a premium of 325% to the closing price on March 24, 2020. The restructuring also included the settlement of other outstanding claims, that resulted in the issuance of an additional 10,683,677 common shares. Inclusive of the restructuring of other debt announced by the Company on March 17, 2020, Cool Holdings has now eliminated $22.4 million, 92.5%, of the $24.4 million of debt it had after the Simply Mac acquisition on September 25, 2019. After the latest restructuring, the Company now has 103,464,742 common shares outstanding and $1.8 million of unsecured debt, $1.25 million of which is not due until February 2024.

Commenting on the transaction, Reinier Voigt, President and Chief Executive Officer of Cool Holdings, stated: “We are extremely pleased with the outcome of our negotiations with the debt holders and the resulting restructuring. It is an effort that we have been working on for the past few months, and which also resulted in the restructuring of the secured debt owed to GameStop Corp. that we announced on March 17, 2020.”

Commenting further, Mr. Voigt noted: “These two successful debt restructurings have dramatically improved our balance sheet, and provided relief from the debt service we faced. In February we announced the sale of our Argentina operations, as part of our corporate restructuring to focus all our energies on our North American Simply Mac business. We believe our improved balance sheet will strengthen our ability to capitalize our business, expand Simply Mac’s store and service presence around the country, take advantage of B2B opportunities and provide more resources to our growing eCommerce business. We are excited about the future potential of our business.”

About Cool Holdings, Inc.

Cool Holdings is a Miami-based company currently comprised of Simply Mac and OneClick, two chains of retail stores and an authorized reseller under the Apple Premier Partner, APR (Apple Premium Reseller) and AAR MB (Apple Authorized Reseller Mono-Brand) programs and Cooltech Distribution, an authorized distributor to the OneClick stores and other resellers of Apple products and other high-profile consumer electronic brands. Additional information can be found on its website at www.coolholdings.com. 

Forward-looking and cautionary statements

Forward-looking statements in this press release and all other statements that are not historical facts are made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements, including those related to our ability to attract new funding, expand our store presence, take advantage of B2B opportunities and grow our eCommerce business, involve factors, risks, and uncertainties that may cause actual results in future periods to differ materially from such statements. There are a number of factors that could cause actual events to differ materially from those indicated by such forward-looking statements, including actions by third parties. A list and description of various risk factors related to Cool Holdings, Inc. can be found and reviewed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 and the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2019, both of which can be accessed under the Company’s profile at www.sec.gov. These forward-looking statements speak only as of the date of this release and we undertake no obligation to publicly update any forward-looking statements to reflect new information, events or circumstances after the date of this release, except as required by law.

All product names, logos, and brands are property of their respective owners. All company, product and service names used in this website are for identification purposes only. Use of these names, logos, and brands does not imply endorsement.

Contact:

Vernon A. LoForti, CFO

vern.loforti@coolholdings.com

Cool Holdings Provides Corporate Update

MIAMI, December 2, 2019 – Cool Holdings, Inc. (OTCQB: AWSM) (the “Company” or “Cool
Holdings”), the parent company of Simply Mac, Inc., the largest Apple Premier Partner in the U.S., provided a corporate update today regarding its recent accomplishments and its future plans. Having
recently completed the acquisition of Simply Mac, the Company has a target to achieve positive EBITDA and restructure its balance sheet in 2020.


Reinier Voigt, President and Chief Executive Officer of Cool Holdings, commented: “We believe that the key to getting our Company profitable was provided to us on September 25, 2019 when we completed the acquisition of Simply Mac. Owning the largest Apple Premier Partner in the U.S. provides us with a superb platform upon which to build and transform our Company. Not unexpectedly, when Interbrand, the global brand consulting firm, recently published its 2019 ranking of top brands, Apple ranked #1 for the 7 th consecutive year. Simply Mac has been a Premier Partner since 2006 and we continue to believe in the longevity of Apple as a company and its constant innovation and roadmap of future products.” Continuing, Mr. Voigt noted: “With this ‘key’ now in our possession, we still have a lot of work to do to unlock Simply Mac’s potential. Some of that work includes continual improvements in product purchasing, especially for third party accessories, and avoiding the pitfalls of having excess inventories which hampers working capital, margins and administrative management. We will endeavor to properly stock our stores with inventory at the peak seasonal sales periods. Improving our inventory turns and cash-to-cash cycle will be important to achieving profitability, especially in a constrained capital environment. Simply Mac is one of the top providers of service for Apple products in the U.S. and we need to leverage that. Service is a category that generates our highest gross margins and we have plans to open smaller footprint stores that focus almost entirely on this offering. In fiscal 2018, Simply Mac reported $90.2 million in sales. With that level of sales, for every 1% improvement in gross margin and/or operating profit margin we are able to achieve, we could add approximately $900,000 to the bottom line.

Additionally, we will work with our current debt holders to deleverage our balance sheet and add more permanent capital to our Company, as well as seek new equity for growth.”

The Executive Team
Cool Holdings is led by Reinier Voigt, who was appointed in June 2019 as a Director and the Company’s
President and Chief Executive Officer. Prior to that, he served as Chief Operating Officer since December 2016. From May 2015 until August 2016, Mr. Voigt was President and Chief Operating
Officer of TEReI International, a merchant bank focused on debt and equity opportunities in the small to mid-cap markets in North and South America, and from September 2006 until April 2015 he was the Chief Operation Officer of Facey Telecom. Mr. Voigt has more than twenty years of experience in business operations which includes a focus on profit and loss optimization, strategic planning, finance and financial reporting.


The Company’s Chief Financial Officer is Vernon A. LoForti, who was appointed to that position in June 2019. Prior to that, he served the Company as its Vice President and Secretary, beginning after the merger with Cooltech Holding in March 2018. Mr. LoForti previously served as the Chief Financial Officer of InfoSonics from July 2010 through the date of the merger. Prior to InfoSonics, Mr. LoForti served as CEO of Overland Storage, Inc., a global supplier of data protection appliances, where he worked for 14 years and led the company’s initial public offering as its CFO. Beginning his career in public accounting with Price Waterhouse in Los Angeles, Mr. LoForti has thirty-five years of experience as a financial executive with U.S. publicly-held companies.

Key to the management team of Simply Mac is Howard Young, Vice President of Sales and Operations. Mr. Young has over 19 years of sales and operations management experience, and is continually focused on revenue and margin generation, cost savings and process improvements, while ensuring Simply Mac maintains best in class customer service and strong relationships with Apple. Prior to joining the company in 2011, Mr. Young worked for almost 4 years for Apple as a store leader, and prior to that was
in management positions at Best Buy and Pottery Barn.

Store Base
After the opening on November 16, 2019 of the newest Simply Mac store in Louisville, Kentucky, Cool Holdings currently operates a total of 58 Apple retail stores under its 2 brands: Simply Mac and OneClick. Located primarily in smaller cities close to a university where Apple has no presence, Simply Mac is an important provider of Apple authorized service in the U.S. There are 42 Simply Mac stores located in 18 states in the U.S. as follows:

The 16 OneClick stores are located as follows: 7 in the Dominican Republic, 6 in Argentina and 3 inFlorida.


Immediate Store-Level Focus Cool
Holdings immediate focus will be on the following areas of store operations and performance:

  • Florida OneClick Store Rebranding. Beginning in 2020, the Company plans to rebrand the 3 OneClick stores in Florida as Simply Mac stores in order to consolidate all U.S. locations under the strength of the Simply Mac brand name.
  • Capitalize on the synergies between OneClick and Simply Mac. The Company has already begun the process of cross pollinating the strengths of the two brands. Simply Mac stores generate superior margins by selling Certified Preowned (“CPO”) Apple products and their own brand of extended warranty called “Simple Care.” The Company’s OneClick stores are now beginning to offer these products. One Click did a better job at product management of third-party accessories in terms of a better portfolio of products and better pricing as it took advantage of direct relationships with manufacturers. This strength is now being implemented at Simply Mac, who previously relied primarily on purchasing accessories only from its distribution suppliers.
  • Maximize Simply Mac’s strength in repair service. Simply Mac is a market leader in warranty repair and service of Apple products. It intends to identify markets and locations where it can open smaller footprint locations focused almost entirely on service. Such locations would have lower labor, operating and occupancy costs, as well as only minimal inventory or product display levels. This would translate into significantly higher operating profit margins.
  • Examine SKUs sold in each store. The 80/20 rule is usually in effect in that 20% of retail SKUs
    generate 80% of gross profit. This is especially true in third party accessories. The Company is
    focusing on buying smarter and managing inventory better to avoid excess inventory and write-
    downs, increase inventory turns and minimizing working capital needs. The Company’s business
    is very seasonal with peak sales periods occurring around holidays periods throughout the year, consistent with consumer electronic buying patterns. Consequently, the Company is working to
    ensure its stores are properly stocked during those periods to maximize ROI.
  • Strive to provide superior customer service. Adopting Simply Mac’s founding vision, Cool Holdings will strive to be one of America’s Premier Technology Retailers. Superior customer service is critical to making this a reality, and it is a metric that Apple monitors closely. The Company will strive to continue to hire the best people, train them properly and provide them with the right incentives to be successful. Then, as stated in our Simply Mac pledge, “we must
    take great care of our customers, or someone else will.”
  • Evaluate under-performing stores to improve overall profitability. The Company monitors the performance of each and every retail store on a daily basis against the prior year and budget. Management works to promptly identify underperforming stores, isolate reasons for
    underperformance, assess management and staffing, find ways to increase sales and/or reduce operating costs and consider relocation where necessary.

Partnership with Torque Esports
On October 29, 2019, Cool Holdings signed a 3-year agreement with Torque Esports Corp., formerly Millennial Esports Corp. (TSX VENTURE: GAME, OTCQB: MLLLF) (“Torque”). This partnership is designed to drive more traffic to all the Simply Mac stores. Under the agreement, Simply Mac is now the named sponsor and sole and exclusive supplier of Apple products for “America’s Fastest Gamer” events produced by Ideas & Cars. Commenting on the partnership, Darren Cox, Torque President and CEO, stated: “We were thrilled to be working with Simply Mac to not only showcase their brand to the millions of television viewers who watch the documentary series of World’s Fastest Gamer around the world, but also to use the incredible tools from Apple they provide to us to actually create the series content. At Torque, we’re not only using Apple MacBook Pros and iMacs to create the documentary
series, but we also used the iPhone 11 Pro to shoot our social media content produced throughout he

On October 29, 2019, Cool Holdings signed a 3-year agreement with Torque Esports Corp., formerly Millennial Esports Corp. (TSX VENTURE: GAME, OTCQB: MLLLF) (“Torque”). This partnership is designed to drive more traffic to all the Simply Mac stores. Under the agreement, Simply Mac is now the named sponsor and sole and exclusive supplier of Apple products for “America’s Fastest Gamer” events produced by Ideas & Cars. Commenting on the partnership, Darren Cox, Torque President and CEO, stated: “We were thrilled to be working with Simply Mac to not only showcase their brand to the millions of television viewers who watch the documentary series of World’s Fastest Gamer around the world, but also to use the incredible tools from Apple they provide to us to actually create the series content. At Torque, we’re not only using Apple MacBook Pros and iMacs to create the documentary
series, but we also used the iPhone 11 Pro to shoot our social media content produced throughout the CaliforniaDreamin finals tour.”

Recapitalization Efforts
At September 30, 2019, Cool Holdings had negative shareholders’ equity of $11.5 million and $24.2 million principal amount of debt, including $7.9 million owed to GameStop Corp. (“GameStop”) in connection with the Simply Mac purchase. In late October, the Company made an offer to holders of the $16.3 million of promissory and convertible notes, excluding GameStop, to convert those notes into shares of our common stock. Holders of just over 50% of the notes with an aggregate principal value of $8.3 million elected to convert. The Company continues to work with its debtholders to manage the remaining outstanding balances while seeking short-term working capital funding to execute its strategy as noted above.

About Cool Holdings, Inc.
Cool Holdings is a Miami-based company currently comprised of Simply Mac and OneClick, two chains of retail stores and an authorized reseller under the Apple Premier Partner, APR (Apple Premium Reseller) and AAR MB (Apple Authorized Reseller Mono-Brand) programs and Cooltech Distribution, an authorized distributor to the OneClick stores and other resellers of Apple products and other high-profile consumer electronic brands.  Additional information can be found on its website at www.coolholdings.com.


Forward-looking and cautionary statements
Forward-looking statements in this press release and all other statements that are not historical facts are made under the safe
harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements, including those related to our target
to achieve positive EBITDA and restructure our balance sheet by the fourth quarter of 2020, our ability to improve the gross margin and operating margin of Simply Mac stores, future expansion of Simply Mac stores, our ability to improve inventory turns, hire the best people, provide superior customer service and evaluate under-performing stores to improve profitability, involve factors, risks, and uncertainties that may cause actual results in future periods to differ materially from such statements.

There are a number of factors that could cause actual events to differ materially from those indicated by such forward-looking statements, including actions by third parties, including Apple. A list and description of various risk factors related to Cool Holdings, Inc. can be found and reviewed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 and the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2019, both of which can be accessed under the Company’s profile at www.sec.gov. These forward-looking statements speak only as of the date of this release and we undertake no obligation to publicly update any forward-looking statements to reflect new information, events or circumstances
after the date of this release, except as required by law.


All product names, logos, and brands are property of their respective owners. All company, product and service names used in this website are for identification purposes only. Use of these names, logos, and brands does not imply endorsement.


Contact:
Vernon A. LoForti, CFO
vern.loforti@infosonics.com
858-373-1675

kentucky

Cool Holdings Announces the Opening of its Newest Simply Mac Store in Louisville, Kentucky

Cool Holdings, Inc. (the “Company” or “Cool Holdings”) announced the grand opening of its new Simply Mac retail store in Louisville, Kentucky.  The opening of this official Apple Premier Partner Store further expands Simply Mac’s footprint across the U.S.  The 1,640 square foot store, located at 3702 Lexington Road, will offer the entire suite of Apple products, as well as third party accessories and Simply Mac’s signature service and warranty repairs on all product categories by our trained team of Apple-certified technicians.  Simply Mac also offers customer financing and extended warranty coverage on all Apple products.

Investors Coolholdings

Cool Holdings Announces Delisting From Nasdaq and Applies to Have Common Stock Traded on OTCQB

Cool Holdings, Inc. announced that it withdrew its oral hearing request (the “Request”) it previously submitted to the Nasdaq Hearings Panel on October 7, 2019. The Request was submitted to the Panel after the Company received a letter from the Nasdaq Listing Qualifications Staff on October 1, 2019

Simply Mac, Inc

Simply Mac, Inc., Apple’s Largest Premier Partner, Announces $3.15 million Partnership with World’s Fastest Gamer

Cool Holdings, Inc. today announced that they have entered into a partnership valued at $3.15 million between Simply Mac, Inc. (“Simply Mac”), a wholly-owned subsidiary of Cool, and Ideas & Cars Ltd. (Ideas & Cars”) a wholly-owned subsidiary of Torque. 

Cool Holdings, Inc. Announces Acquisition of Simply Mac and Becomes the Largest Apple Premier Partner in the United States

Cool Holdings, Inc. announced that it has completed the acquisition of Simply Mac, Inc.
Together with its 16 existing OneClick stores, the Company now operates 57 retail stores in the United States, Argentina and the Dominican Republic.