NOTE 17. Segments

The tables below (in thousands) reflect the operating results of the Company’s segments for the reported periods, consistent with the management and measurement system utilized within the Company. The three segments include (1) the Company’s OneClick retail stores, (2) it’s Cooltech Distribution business and (3) its verykool^® product line, that is being phased out and discontinued after the Merger. Performance measurement of each segment is based on sales, gross profit and operating income (loss). The segments represent components of the Company for which separate financial information is available that is utilized on a regular basis by the Chief Operating Decision Maker (“CODM”) in determining how to allocate Company resources and evaluate performance. The CODM is a group of Company executives who comprise the management committee, consisting of the Company’s Chief Executive Officer, Chief Sales and Marketing Officer, Chief Operating Office and Chief Financial Officer.

	OneClick Retail Stores			Cooltech Distribution			Verykool Products			Total Segments
Three months ended September 30, 2018:
Net sales	$	3,685		$	1,693		$	1,759		$	7,137
Gross profit (loss)	$	1,088		$	137		$	(135	)	$	1,090
Operating loss	$	(459	)	$	(364	)	$	(539	)	$	(1,362	)

Three months ended September 30, 2017:
Net sales	$	-		$	2,514		$	-		$	2,514
Gross profit	$	-		$	250		$	-		$	250
Operating loss	$	-		$	(122	)	$	-		$	(122	)

Reconciliation of Operating Loss to Cool Holdings as Reported:
	Three Months Ended
	September 30,
	2018			2017
Operating loss:
Total reportable segments	$	(1,362	)	$	(122	)
Unallocated expenses		(2,152	)		(3,618	)
Total consolidated operating loss	$	(3,514	)	$	(3,740	)

	OneClick Retail Stores			Cooltech Distribution			Verykool Products			Total Segments
Nine months ended September 30, 2018:
Net sales	$	9,329		$	6,353		$	6,164		$	21,846
Gross profit (loss)	$	2,739		$	578		$	(101	)	$	3,216
Operating loss	$	(2,505	)	$	(952	)	$	(1,459	)	$	(4,916	)

Nine months ended September 30, 2017:
Net sales	$	-		$	8,714		$	-		$	8,714
Gross profit	$	-		$	520		$	-		$	520
Operating loss	$	-		$	(387	)	$	-		$	(387	)

Reconciliation of Operating Loss to Cool Holdings as Reported:
	Nine Months Ended
	September 30,
	2018			2017
Operating loss:
Total reportable segments	$	(4,916	)	$	(387	)
Unallocated expenses		(4,218	)		(4,466	)
Total consolidated operating loss	$	(9,134	)	$	(4,853	)

Long-lived assets by segment at September 30, 2018 are shown below (in thousands):

	OneClick Retail Stores		Cooltech Distribution		Verykool Products		Total Segments		Corporate		Consolidated
Property and equipment, net	$	930	$	9	$	30	$	969	$	97	$	1,066
Intangibles, net		1,016		2		—		1,018		—		1,018
Goodwill		12,126		—		—		12,126		3,343		15,469
Total	$	14,072	$	11	$	30	$	14,113	$	3,440	$	17,553