Sale of Latin American Subsidiaries

9 Months Ended

Oct. 30, 2021

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 17, the Company sold OneClick Argentino, its business unit in Argentina, and Verablue Caribbean Group, its business unit in the Dominican Republic, which resulted in a loss on sale of $136,000 in the 39 weeks ended October 31, 2020. 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. There were no results of discontinued operations for the 39 weeks ended October 30, 2021.

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	)

Latin American Subsidiaries [Member]

Discontinued Operations

NOTE 17. Sale of Latin American Subsidiaries

On January 31, 2020, the Company entered into a definitive agreement with two employees of the Company to sell all of its ownership interest in OneClick Argentino S.R.L., the Company’s subsidiary that operated 6 retail electronics stores in Argentina. The purchase price to the buyers was the assumption of all liabilities of the Argentinian subsidiary, including $321,000 of debt owed to two major distribution suppliers. OneClick Argentino S.R.L. has been classified as a discontinued operation in the Company’s consolidated financial statements for all periods presented.

On April 6, 2020, the Company entered into a definitive agreement with an employee of the Company to sell all of its ownership interest in Verablue Caribbean Group, S.R.L. (“Verablue”), the Company’s subsidiary that operated 7 retail electronics stores in in the Dominican Republic. The buyers assumed all liabilities of Verablue, and agreed to pay the Company $100,000 in additional consideration, evidenced by a 6-month installment promissory note. Verablue has been classified as a discontinued operation in the Company’s consolidated financial statements for all periods presented.