NOTE 1. Basis of Presentation The accompanying unaudited condensed consolidated financial statements and these condensed notes have been prepared in accordance with accounting principles generally accepted in the United States (GAAP) for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X of the Securities Exchange Act of 1934, as amended (the Exchange Act). Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. The preparation of financial statements requires management to make estimates and assumptions that affect amounts reported in the financial statements and accompanying notes. Actual results are likely to differ from those estimates, but management does not believe such differences will materially affect the financial position or results of operations of Simply, Inc. (the Company), although they may. These unaudited consolidated financial statements and condensed notes should be read in conjunction with the financial statements and notes as of and for the year ended December 31, 2019 included in the Companys Annual Report on Form 10-K for such year. On September 25, 2019, the Company completed the acquisition of Simply Mac, Inc. (Simply Mac) in a stock transaction, after which Simply Mac became a wholly-owned subsidiary of the Company (see Note 17). Consequently, the results of Simply Mac are included in the Companys consolidated financial statements for periods subsequent to the acquisition. In early 2020, t he Company sold both of its international subsidiaries in Latin America (see Note 18). On January 31, 2020, the Company sold all of its ownership interest in OneClick Argentino S.R.L., the Companys subsidiary that operated 6 retail electronics stores in Argentina. On April 6, 2020, the Company sold all of its ownership interest in Verablue Caribbean Group, S.R.L. (Verablue), the Companys subsidiary that operated 7 retail electronics stores in in the Dominican Republic. Both entities have been classified as discontinued operations in the Companys consolidated financial statements for all periods presented . During March 2020, the Company restructured substantially all of its remaining outstanding debt. At September 30, 2019, after the acquisition of Simply Mac, the principal amount of the Companys outstanding debt amounted to $24.2 million. During October 2019, approximately $7.8 million of the debt was converted into common stock of the Company, leaving $16.4 million outstanding at December 31, 2019. After the March restructuring, the Companys outstanding debt was reduced by $14.6 million through a combination of debt forgiveness and conversion into common stock, leaving $1.8 million outstanding with extended maturity dates. Prior to its acquisition by the Company, Simply Mac operated on a 52-53 fiscal year ending on the Saturday closest to January 31 st . The Company subsequently decided to change its fiscal year to mirror the Simply Mac fiscal year effective beginning with the fiscal year ending January 30, 2021 (Fiscal 2021) in order to align the Companys financial reporting periods to the operational periods of its Simply Mac stores and be more consistent with peer retail companies. The Company made the fiscal year change on a prospective basis and did not adjust operating results for prior periods. This Form 10-Q includes unaudited consolidated financial statements for the one-month transition period for the month of January 2020, the third fiscal quarter for the 13 weeks ended October 31, 2020 and the 39 weeks ended October 31, 2020. As permitted under the rules of the Securities and Exchange Commission (SEC), prior period financial statements have not been recast, as management believes (i) the three and nine months ended September 30, 2019 are comparable to the 13 and 39 weeks ended October 31, 2020, respectively, and (ii) recasting prior period results was not practicable nor cost justified. Effective October 14, 2020, the Company changed its legal name from Cool Holdings, Inc. to Simply, Inc. and effected a one-for-ten reverse split of its issued and outstanding common stock. All share and per share numbers in this report have been retroactively restated to account for the reverse split. In addition, certain accounts in the Companys consolidated balance sheet at December 31, 2019 were reclassified to conform to their presentation at February 1, 2020 and at October 31, 2020. The Companys consolidated financial statements include assets, liabilities and operating results of its wholly-owned subsidiaries. All material intercompany accounts and transactions have been eliminated in consolidation. In the opinion of management, these unaudited consolidated financial statements reflect all adjustments, consisting only of normal recurring adjustments, considered necessary to fairly present the Companys financial condition as of October 31, 2020 and February 1, 2020, and the results of operations, financial position and cash flows for all periods presented. The results reported in these consolidated financial statements for the transition period from January 1, 2020 to February 1, 2020 and for the 39 weeks ended October 31, 2020 are not necessarily indicative of the operating results, financial condition or cash flows that may be expected for the full year of Fiscal 2021 or for any future period.