| Discontinued Operations |
NOTE 3. Discontinued Operations
During the fourth quarter of 2018, the Company completed the closure of its verykool business segment. Also, as discussed in Note 18, the Company sold OneClick Argentino, its business unit in Argentina, and Verablue Caribbean Group, its business unit in the Dominican Republic, which resulted in losses on sale of $13,000 and $136,000 in the transition period from January 1, 2020 to February 1, 2020 and in the 39 weeks ended October 31, 2020, respectively. Consequently, these business units, plus OneClick International, the wholly owned parent of the two business units, are also reported as discontinued operations in our consolidated financial statements for all periods presented.
The results of discontinued operations for the three months ended September 30, 2019 are as follows (in thousands):
|
|
Verykool |
|
|
OneClick International |
|
|
OneClick Argentino |
|
|
Verablue Caribbean |
|
|
TOTAL |
|
|
Net sales |
$ |
— |
|
|
$ |
— |
|
|
$ |
1,862 |
|
|
$ |
1,052 |
|
|
$ |
2,914 |
|
|
Cost of sales |
|
— |
|
|
|
— |
|
|
|
1,228 |
|
|
|
793 |
|
|
|
2,021 |
|
|
Gross profit |
|
— |
|
|
|
— |
|
|
|
634 |
|
|
|
259 |
|
|
|
893 |
|
|
Selling, general and administrative expenses |
|
6 |
|
|
|
138 |
|
|
|
559 |
|
|
|
247 |
|
|
|
950 |
|
|
Operating income (loss) |
|
(6 |
) |
|
|
(138 |
) |
|
|
75 |
|
|
|
12 |
|
|
|
(57 |
) |
|
Other expense, net |
|
(1 |
) |
|
|
— |
|
|
|
(328 |
) |
|
|
— |
|
|
|
(329 |
) |
|
Income (loss) from discontinued operations before income taxes |
|
(7 |
) |
|
|
(138 |
) |
|
|
(253 |
) |
|
|
12 |
|
|
|
(386 |
) |
|
Provision for income taxes |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
- |
|
|
Net income (loss) from discontinued operations |
$ |
(7 |
) |
|
$ |
(138 |
) |
|
$ |
(253 |
) |
|
$ |
12 |
|
|
$ |
(386 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The results of discontinued operations for the nine months ended September 30, 2019 are as follows (in thousands):
|
|
Verykool |
|
|
OneClick International |
|
|
OneClick Argentino |
|
|
Verablue Caribbean |
|
|
TOTAL |
|
|
Net sales |
$ |
47 |
|
|
$ |
— |
|
|
$ |
5,752 |
|
|
$ |
2,860 |
|
|
$ |
8,659 |
|
|
Cost of sales |
|
47 |
|
|
|
12 |
|
|
|
3,774 |
|
|
|
2,027 |
|
|
|
5,860 |
|
|
Gross profit |
|
- |
|
|
|
(12 |
) |
|
|
1,978 |
|
|
|
833 |
|
|
|
2,799 |
|
|
Selling, general and administrative expenses |
|
33 |
|
|
|
392 |
|
|
|
2,153 |
|
|
|
858 |
|
|
|
3,436 |
|
|
Operating loss |
|
(33 |
) |
|
|
(404 |
) |
|
|
(175 |
) |
|
|
(25 |
) |
|
|
(637 |
) |
|
Other income (expense), net |
|
25 |
|
|
|
(13 |
) |
|
|
(548 |
) |
|
|
— |
|
|
|
(536 |
) |
|
Loss from discontinued operations before income taxes |
|
(8 |
) |
|
|
(417 |
) |
|
|
(723 |
) |
|
|
(25 |
) |
|
|
(1,173 |
) |
|
Provision for income taxes |
|
(2 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(2 |
) |
|
Net loss from discontinued operations |
$ |
(10 |
) |
|
$ |
(417 |
) |
|
$ |
(723 |
) |
|
$ |
(25 |
) |
|
$ |
(1,175 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The results of discontinued operations for the transition period from January 1, 2020 to February 1, 2020 are as follows (in thousands):
|
|
Verykool |
|
|
OneClick International |
|
|
OneClick Argentino |
|
|
Verablue Caribbean |
|
|
TOTAL |
|
|
Net sales |
$ |
— |
|
|
$ |
— |
|
|
$ |
821 |
|
|
$ |
334 |
|
|
$ |
1,155 |
|
|
Cost of sales |
|
8 |
|
|
|
— |
|
|
|
544 |
|
|
|
223 |
|
|
|
775 |
|
|
Gross profit (loss) |
|
(8 |
) |
|
|
— |
|
|
|
277 |
|
|
|
111 |
|
|
|
380 |
|
|
Selling, general and administrative expenses |
|
2 |
|
|
|
1 |
|
|
|
203 |
|
|
|
81 |
|
|
|
287 |
|
|
Operating income (loss) |
|
(10 |
) |
|
|
(1 |
) |
|
|
74 |
|
|
|
30 |
|
|
|
93 |
|
|
Other income (expense), net |
|
— |
|
|
|
— |
|
|
|
(21 |
) |
|
|
(6 |
) |
|
|
(27 |
) |
|
Income (loss) from discontinued operations before income taxes |
|
(10 |
) |
|
|
(1 |
) |
|
|
53 |
|
|
|
24 |
|
|
|
66 |
|
|
Provision for income taxes |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Net income (loss) from discontinued operations |
$ |
(10 |
) |
|
$ |
(1 |
) |
|
$ |
53 |
|
|
$ |
24 |
|
|
$ |
66 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The results of discontinued operations for the 13 weeks ended October 31, 2020 are as follows (in thousands):
|
|
Verykool |
|
|
TOTAL |
|
|
Net sales |
$ |
— |
|
|
$ |
— |
|
|
Cost of sales |
|
— |
|
|
|
— |
|
|
Gross profit |
|
— |
|
|
|
— |
|
|
Selling, general and administrative expenses |
|
— |
|
|
|
— |
|
|
Operating loss |
|
— |
|
|
|
— |
|
|
Other income, net |
|
51 |
|
|
|
51 |
|
|
Income from discontinued operations before income taxes |
|
51 |
|
|
|
51 |
|
|
Provision for income taxes |
|
— |
|
|
|
— |
|
|
Net income from discontinued operations |
$ |
51 |
|
|
$ |
51 |
|
|
|
|
|
|
|
|
|
|
The results of discontinued operations for the 39 weeks ended October 31, 2020 are as follows (in thousands):
|
|
Verykool |
|
|
Verablue Caribbean |
|
|
TOTAL |
|
|
Net sales |
$ |
— |
|
|
$ |
407 |
|
|
$ |
407 |
|
|
Cost of sales |
|
— |
|
|
|
319 |
|
|
|
319 |
|
|
Gross profit |
|
— |
|
|
|
88 |
|
|
|
88 |
|
|
Selling, general and administrative expenses |
|
6 |
|
|
|
192 |
|
|
|
198 |
|
|
Operating loss |
|
(6 |
) |
|
|
(104 |
) |
|
|
(110 |
) |
|
Other income (expense), net |
|
54 |
|
|
|
(129 |
) |
|
|
(75 |
) |
|
Income (loss) from discontinued operations before income taxes |
|
48 |
|
|
|
(233 |
) |
|
|
(185 |
) |
|
Provision for income taxes |
|
— |
|
|
|
— |
|
|
|
— |
|
|
Net income (loss) from discontinued operations |
$ |
48 |
|
|
$ |
(233 |
) |
|
$ |
(185 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|