Subsequent to the Merger, we decided to phase out the verykool® brand of cellular phones and tablets, which was the legacy business of InfoSonics before the Merger, and focus on the business model and strategy of Cooltech. During the remainder of calendar year 2018, we will work with our verykool® customers to systematically exhaust the inventory of verykool® products and wind down that business. We are now integrating InfoSonics and Cooltech facilities, systems, and personnel and we expect the integration process to be completed by the end of 2018. Because the Merger was deemed to be a reverse merger, although InfoSonics was the legal acquiror of Cooltech, Cooltech was deemed to be acquiring InfoSonics for accounting purposes. As a consequence, our historical financial statements prior to the Merger presented in these and in future financial statements reflect those of Cooltech, except for the legal capital of Cooltech which is retroactively adjusted to reflect the legal capital of InfoSonics. To clarify, our consolidated results for the three months ended March 31, 2018 include the results of Cooltech for the full quarter combined with the results of the legacy InfoSonics business for the period from March 13, 2018 to March 31, 2018. The Business Overview below presents our new business model without mention of the verykool® legacy business that we are winding down. Also, we intend to change our name in the near future to reflect our new strategy. Business Overview We are a retailer and wholesaler of consumer electronics focused on the operation and expansion of our OneClick® retail stores in the United States, Latin America and Canada. As an Apple Premier Partner, we work with Apple to develop our network of OneClick stores in locations and markets where Apple has limited or no presence. In our stores, we sell all Apple and Apple-approved products and accessories, including accessories that we source from independent third parties. We also provide repair service for Apple products and are one of the select authorized third-parties that Apple entrusts with its proprietary machines used to repair or replace damaged iPhone screens. Retail customers may book a repair appointment at one of our OneClick stores directly through the Apple website. Our Cooltech Distribution unit distributes various consumer electronics to resellers, retailers and small and medium-sized businesses in Latin America and the United States. We market and distribute a variety of mobility, computing, audio/video, and other technology products including laptops, tablets, cell phones, drones, smart watches, gaming consoles, accessories and audio devices. In addition to our direct relationship with Apple, we have direct relationships with top third-party brands in the Apple retail echo-system including Bose, Belkin, Speck, Tech21 and Thule, among others. We currently operate a total of nine (9) OneClick stores, consisting of six (6) in Argentina and three (3) in Florida. Our goal in the next three (3) years is to expand our network of OneClick stores to 200 locations in Latin America, the U.S. and Canada to become one of Apple’s largest retail partners. We expect that our growth will come from a combination of organic expansion on a store-by-store basis, as well as external acquisitions.
