As filed with the Securities and Exchange Commission on February 17, 2006September 7, 2018

Registration No. 333-225682     

 

Registration No. 333-             

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

AMENDMENT NO. 2


TO

FORM S-3

Form S-3

REGISTRATION STATEMENT
UNDER THE SECURITIES ACT OF 1933


COOL HOLDINGS, INC.

INFOSONICS CORPORATION

(Exact name of registrant as specified in its charter)


 

Maryland

33-0599368

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer

Identification Number)
No.)

 

5880 Pacific Center Blvd.48 NW 25th Street, Suite 108

San Diego, California 92121Miami, FL 33127

(858) 373-1600(786) 675-5246

(Address, including zip code, and telephone number, including area code, of registrant’s principal executive offices)

 


Alfredo Carrasco

Joseph Ram, PresidentChief Financial Officer

5880 Pacific Center Blvd.48 NW 25th Street, Suite 108

San Diego, California 92121Miami, FL 33127

(858) 373-1600(786) 675-5246

(Name, address, including zip code, and telephone number, including area code, of agent for service)

 

Copies to:

David J. Katz

Alan L. TalesnickPerkins Coie LLP

Jon S. Ploetz1888 Century Park East, Suite 1700

Donna J. BloomerLos Angeles, CA 90067

Patton Boggs LLP(310) 788-3268

1660 Lincoln St.

Suite 1900

Denver, CO 80264

(303) 830-1776


Approximate date of commencement of proposed sale to the publicpublic::  From time to time after effectivenessthe effective date of this Registration Statement.the registration statement.

If the only securities being registered on this Form are being offered pursuant to dividend or interest reinvestment plans, please check the following box.  o

If any of the securities being registered on this formForm are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933, other than securities offered only in connection with dividend or interest reinvestment plans, check the following box.  ý

If this Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, please check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering.  o

If this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering.  o

If delivery ofthis Form is a registration statement pursuant to General Instruction I.D. or a post-effective amendment thereto that shall become effective upon filing with the prospectus is expected to be madeCommission pursuant to Rule 434, please462(e) under the Securities Act, check the following box.  o




CALCULATION OF REGISTRATION FEE

Title of each class of
securities to be
registered (1)

 

Amount to be
registered (2)

 

Proposed maximum
offering price per
share

 

Proposed maximum
aggregate offering
price

 

Amount of
registration fee

 

 

 

 

 

 

 

 

 

 

 

Common Stock, par value $.001Private Placement Shares

 

1,100,000

 

$

12.10

(3)

$

13,310,000

 

$

1,424

 

 

 

 

 

 

 

 

 

 

 

Common Stock underlying Warrants to purchase Common StockPrivate Placement Warrants

 

330,000

(4)

$

18.38

 

$

6,065,400

 

$

649

 

 

 

 

 

 

 

 

 

 

 

Common Stock underlying warrants to purchase Common StockPlacement Agent Warrants

 

22,000

(4)

$

13.76

 

$

302,720

 

$

32

 

 

 

 

 

 

 

 

 

 

 

Common Stock underlying warrants to purchase Common Stock Placement Agent Warrants

 

6,600

(4)

$

19.30

 

$

127,380

 

$

14

 

 

 

 

 

 

 

 

 

 

 

TOTAL

 

1,458,600

 

 

 

 

 

$

2,119

 


(1)ConsistsIf this Form is a post-effective amendment to a registration statement filed pursuant to General Instruction I.D. filed to register additional securities or additional classes of shares and shares underlying warrants held by certain selling stockholders.

(2)Pursuantsecurities pursuant to Rule 416413(b) under the Securities Act, check the following box.  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company.  See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.  (Check one):

Large accelerated filer   

Accelerated filer   

Non-accelerated filer   

(Do not check if a smaller reporting company)

Smaller reporting company   

Emerging growth company   

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

CALCULATION OF REGISTRATION FEE

Title of Each Class of Securities to be Registered

 

Amount to be Registered (1)

 

Proposed Maximum Offering Price
Per Share

 

Proposed Maximum Aggregate Offering Price

 

Amount of Registration Fee

Common Stock, par value $0.001 per share

 

(2)

 

(3)

 

(3)

 

 

Preferred Stock, par value $0.001 per share

 

(2)

 

(3)

 

(3)

 

 

Warrants

 

(2)

 

(3)

 

(3)

 

 

Units

 

(2)

 

(3)

 

(3)

 

 

Total

 

 

 

 

 

$25,000,000

 

$3,113(4)

(1)

Pursuant to Rule 416 under the Securities Act of 1933, as amended (the “Securities Act”), the shares being registered hereunder include such indeterminate number of shares of common stock and preferred stock as may be issuable with respect to the shares being registered hereunder as a result of stock splits, stock dividends or similar transactions.

(2)

There are being registered hereunder such indeterminate number of shares of common stock, such indeterminate number of shares of preferred stock, and such indeterminate number of warrants to purchase common stock or preferred stock as will have an aggregate initial offering price not to exceed $25,000,000.  Any securities registered hereunder may be sold separately or as units with other securities registered hereunder.  The securities registered also include such indeterminate number of shares of common stock and preferred stock as may be issued upon conversion of or exchange for preferred stock that provide for conversion or exchange, upon exercise of warrants or pursuant to the anti-dilution provisions of any such securities.

(3)

The proposed maximum initial offering price per share and the proposed maximum aggregate offering price per class of security will be determined, from time to time, by the registrant in connection with the issuance by the registrant of the securities registered hereunder and is not specified as to each class of security pursuant to General Instruction II.D of Form S-3.

(4)

The registration fee has been calculated pursuant to Rule 457(o) under the Securities Act on the basis of the maximum aggregate offering price of all securities registered. An aggregate registration fee of $3,113 was previously paid pursuant to the Registration Statement on Form S-3, File No. 333-225682, filed on June 15, 2018.

The registrant hereby amends this registration statement also covers such additional shares of common stock as may be issued as a result of stock splits, dividends, and combinations.

(3)The proposed maximum offering price per share was estimated solely for the purpose of calculating the registration fee pursuant to Rule 457 under the Securities Act of 1933 based upon the average of the high and low sales prices of the Registrant’s common stock as reported on the American Stock Exchange on February 13, 2006.

(4)Consists of shares underlying warrants which first become exercisable on August 2, 2006.

The Registrant hereby amends this Registration Statement on such date or dates as may be necessary to delay its effective date until the Registrantregistrant shall file a further amendment whichthat specifically states that the Registration Statementthis registration statement shall thereafter become effective in accordance with Section 8(a) of the Securities Act of 1933, as amended, or until the Registration Statementthis registration statement shall become effective on such date as the Securities and Exchange Commission, acting pursuant to said Section 8(a), may determine.

 

EXPLANATORY NOTE


This Amendment No. 2 (this “Amendment”) to the Registration Statement on Form S-3, File No. 333-225682, filed on June 15, 2018, as amended by that certain Amendment No. 1 to the Registration Statement on Form S-3, filed on August 28, 2018 (collectively, the “Registration Statement”) of Cool Holdings, Inc., is being filed in order to update certain items.  Accordingly, this Amendment updates the Registration Statement to update the facing page, include this explanatory note, update the facing page of the prospectus, update the overview description of the Company, update the description of common stock and preferred stock in the prospectus, add additional documents incorporated by reference in the prospectus, update the exhibits included in Item 16. Exhibits list, and bring-forward the dates referenced herein, including the date of the power of attorney included herewith. The remainder of the Registration Statement is unchanged.


 


The information in this prospectus is not complete and may be changed. The stockholdersWe may not sell these securities until the registration statement filed with the Securities and Exchange Commission is effective. This prospectus is not an offer to sell these securities and it is not soliciting an offer to buy these securities in any state where the offer or sale is not permitted.

PRELIMINARY PROSPECTUS DATED FEBRUARY 17, 2006

SUBJECT TO COMPLETION, DATED SEPTEMBER 7, 2018

PROSPECTUS

COOL HOLDINGS, INC.

INFOSONICS CORPORATION$25,000,000

1,458,600 Shares of Common Stock
Preferred Stock
Warrants
Units

This prospectus relatesWe may, from time to the sale by certain of our stockholders, referred to as the “Selling Stockholders”, oftime in one or more offerings, offer and sell up to 1,458,600 shares$25,000,000 in the aggregate of our common stock, which they own or which they may acquire pursuant to the exercise ofpreferred stock, warrants to purchase common stock which they own.or preferred stock, or any combination of the foregoing, either individually or as units comprised of one or more of the other securities.

This prospectus provides a general description of the securities we may offer.  We will provide the specific terms of the securities offered in one or more supplements to this prospectus.  We may also authorize one or more free writing prospectuses to be provided to you in connection with these offerings.  The prospectus supplement and any related free writing prospectus may add, update or change information contained in this prospectus.  You should read carefully this prospectus, the applicable prospectus supplement and any related free writing prospectus, as well as the documents incorporated or deemed to be incorporated by reference, before you invest in any of our securities.  This prospectus may not receivebe used to offer or sell any proceeds from the sale of any sharessecurities unless accompanied by the Selling Stockholders.applicable prospectus supplement.

 

Our common stock is quotedtraded on the American Stock ExchangeThe Nasdaq Capital Market under the symbol “IFO.“IFON.”  On February 13, 2006,September 7, 2018, the closinglast reported sale price for our common stock was $4.14 per share.  As of that date, the aggregate market value of our outstanding common stock held by non-affiliates was approximately $24.5 million based on 7,086,743 shares of our outstanding common stock, of which 5,909,566 shares were held by non-affiliates.  Pursuant to General Instruction I.B.6. of Form S-3, in no event will we sell the securities covered hereby in a public primary offering with a value exceeding more than one-third of the aggregate market value of our common stock was $12.25 per share.in any 12-month period so long as the aggregate market value of our outstanding common stock held by non-affiliates remains below $75,000,000.  During the 12 calendar months prior to and including the date of this prospectus, we have not offered or sold any securities pursuant to General Instruction I.B.6 of Form S-3.

Our preferred stock is all currently designated as “0% Series A Convertible Preferred Stock” and is subject to certain Articles Supplementary of 0% Series A Convertible Preferred Stock (“Articles Supplementary”), which are attached as Exhibit 4.1 to this prospectus and incorporated herein by reference.  The Article Supplementary include provisions that to the extent a dispute arises over a Closing Sale Price, a Conversion Price or fair market value (as the case may be, and as such terms are defined in the Articles Supplementary) (including, without limitation, a dispute relating to the determination of any of the foregoing), or over the arithmetic calculation of a conversion rate, each applicable to the 0% Series A Convertible Preferred Stock, any party to such dispute may compel arbitration to resolve such dispute.  These provisions do not apply to claims under the federal securities are speculative and involvelaws.

Investing in our securities involves a high degree of risk.  You should consider carefully theSee “Risk Factors” beginning on Pagepage 2 of this prospectus and in the documents incorporated by reference in this prospectus, as updated in the applicable prospectus supplement, any related free writing prospectus and other future filings we make with the Securities and Exchange Commission that are incorporated by reference into this prospectus, for a discussion of the factors you should consider carefully before making a decisiondeciding to purchase our stock.securities.

We may sell these securities directly to investors, through agents designated from time to time or to or through underwriters or dealers.  For additional information on the methods of sale, you should refer to the section entitled “Plan of Distribution” in this prospectus.  If any underwriters are involved in the sale of any securities with respect to which this prospectus is being delivered, the names of such underwriters and any applicable commissions or discounts will be set forth

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in a prospectus supplement.  The price to the public of such securities and the net proceeds we expect to receive from such sale will also be set forth in a prospectus supplement.

Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or passed upon the adequacydetermined if this prospectus is truthful or accuracy of this prospectus.complete.  Any representation to the contrary is a criminal offense.

The date of this prospectus is , 2006________, 2018.


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TABLE OF CONTENTS

 



TABLE OF CONTENTS

PROSPECTUS SUMMARY

1

Page

RISK FACTORS

2

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

9

USE OF PROCEEDSAbout this Prospectus

9

1

DIVIDEND POLICYAbout Cool Holdings

9

2

SELLING STOCKHOLDERSRisk Factors

9

2

PLAN OF DISTRIBUTIONNote Regarding Forward-Looking Statements

16

2

LEGAL MATTERSUse of Proceeds

17

3

EXPERTSDilution

17

3

SECURITIES AND EXCHANGE COMMISSION POSITION ON CERTAIN INDEMNIFICATIONDescription of Common Stock and Preferred Stock

17

4

WHERE YOU CAN FIND MORE INFORMATIONDescription of Warrants

18

8

INCORPORATION OF INFORMATION WE FILE WITH THE SECDescription of Units

10

18Plan of Distribution

11

Legal Matters

12

Experts

12

Information Incorporated by Reference

13

Where You Can Find More Information

14

 

You should rely only on

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ABOUT THIS PROSPECTUS

This prospectus is part of a registration statement that we filed with the Securities and Exchange Commission, or the SEC, under the Securities Act of 1933, as amended, or the Securities Act, using a “shelf” registration process.  Under this shelf registration process, we may from time to time sell common stock, preferred stock or warrants to purchase common stock or preferred stock, or any combination of the foregoing, either individually or as units comprised of one or more of the other securities, in one or more offerings up to a total dollar amount of $25,000,000. We have provided to you in this prospectus a general description of the securities we may offer.  Each time we sell securities under this shelf registration, we will, to the extent required by law, provide a prospectus supplement that will contain specific information about the terms of that offering.  We may also authorize one or more free writing prospectuses to be provided to you that may contain material information relating to these offerings.  The prospectus supplement and any related free writing prospectus that we may authorize to be provided to you may also add, update or change information contained in this prospectus or in any documents that we have incorporated by reference into this prospectus.  To the extent there is a conflict between the information contained in this prospectus.  prospectus and the prospectus supplement or any related free writing prospectus, you should rely on the information in the prospectus supplement or the related free writing prospectus; provided that if any statement in one of these documents is inconsistent with a statement in another document having a later date – for example, a document filed after the date of this prospectus and incorporated by reference into this prospectus or any prospectus supplement or any related free writing prospectus – the statement in the document having the later date modifies or supersedes the earlier statement

We have not authorized anyoneany dealer, agent or other person to provide you with different information.  If anyone provides you with differentgive any information you shouldor to make any representation other than those contained or incorporated by reference in this prospectus and any accompanying prospectus supplement, or any related free writing prospectus that we may authorize to be provided to you.  You must not rely on it.upon any information or representation not contained or incorporated by reference in this prospectus or an accompanying prospectus supplement, or any related free writing prospectus that we may authorize to be provided to you.  This prospectus and the accompanying prospectus supplement, if any, do not constitute an offer to sell or the solicitation of an offer to buy any securities other than the registered securities to which they relate, nor do this prospectus and the accompanying prospectus supplement constitute an offer to sell or the solicitation of an offer to buy securities in any jurisdiction to any person to whom it is unlawful to make such offer or solicitation in such jurisdiction.  You should not assume that the information contained in this prospectus, any applicable prospectus supplement or any related free writing prospectus is accurate only as ofon any date subsequent to the date set forth on the front cover of this prospectus.  Ourthe document or that any information we have incorporated by reference is correct on any date subsequent to the date of the document incorporated by reference (as our business, financial condition, results of operations and prospects may have changed since that date), even though this prospectus, any applicable prospectus supplement or any related free writing prospectus is delivered or securities are sold on a later date.

As permitted by SEC rules and regulations, the registration statement of which this prospectus forms a part includes additional information not contained in this prospectus.  You may read the registration statement and the other reports we file with the SEC at its website or at its offices described below under “Where You Can Find More Information.”

Unless the context otherwise requires, all references in this prospectus to the “Company”, “we”, “us”“Cool Holdings,” “we,” “us,” “our,” “the Company” or “ours”similar words refer to InfoSonics Corporation, a Maryland corporation.Cool Holdings, together with our subsidiaries.


i-1-



 

PROSPECTUS SUMMARYABOUT COOL HOLDINGS

Overview

This summary highlights selected information contained elsewhere in this prospectus.  You should readThe strategy of Cool Holdings is to focus our investments on premium retail brands that have the potential for accelerated profitable growth which can ultimately translate into attractive returns for our shareholders.  Our investments may be deployed through stock or asset acquisitions of an entire prospectus carefully before making an investment decision.entity, or via majority or minority interests depending on the opportunity.

Overview

InfoSonics Corporation (referred to as “InfoSonics”Currently, we are a retailer and wholesaler of consumer electronics focused on the “Company,” “we,” “us”operation and “our”) is oneexpansion of the largest distributors of wireless handsets and accessoriesour OneClick® retail stores in the United States, Latin America and Latin America.  We distribute products of several key manufacturers, including Kyocera, LG, Motorola, Nokia, Samsung, VK Mobile, and others.Canada.  As an integral partApple 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 customers’ supply chain,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 perform value added services and customization processes.  Our distribution services include the purchasing, marketing, selling, software customization, warehousing, light assembly, programming, packing, shipping and delivery of handsets for wireless telecommunications from manufacturers to carriers (wireless network operators), agents, resellers, distributors, independent dealers and retailershave direct relationships with top third-party brands in the United StatesApple retail echo-system including Bose, Belkin, Speck, Tech21 and Latin America.

Company Offices

Thule, among others.

Our corporate headquarters are in Miami, Florida. We currently operate a total of sixteen (16) OneClick stores, consisting of seven (7) in the Dominican Republic, 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 acquisition.

Corporate Information

We incorporated under the laws of the State of California on February 7, 1994, under the name InfoSonics Corporation. On September 11, 2003, we reincorporated under the same name under the laws of the State of Maryland. On June 8, 2018, we changed our name to Cool Holdings, Inc.

Our principal executive offices are located at 5880 Pacific Center Blvd, San Diego, California  92121. The48 NW 25th Street, Suite 108, Miami, Florida 33127 and our telephone number at that address is (858) 373-1600, the facsimile number(786) 675-5246. Our corporate website is (858) 373-1503 and the Company’s web site is www.infosonics.com. The Company’s periodic andlocated at www.coolholdings.com. We make available free of charge through our website our annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and amendments to those reports filed with the Securities and Exchange Commission (the “SEC”) can be found on the Company’s website and on the SEC’s website at www.sec.gov.

Key Terms of this Offering

By means of this prospectus, a number of our stockholders are offering to sell up to an aggregate of 1,458,600 shares of common stock that they own, including common stock that they may acquire through the exercise of certain warrants to purchase shares of our common stock that they own.  In this prospectus, we refer to these persons as the “Selling Stockholders”.  We will not receive any of the proceeds from the sales of shares by these Selling Stockholders.  We will pay for the cost of registering the Stockholders’ shares being offered under this prospectus (the “Offering”).

This prospectus covers shares issued in connection with our recent private placement of an aggregate of 1,100,000 shares of the Company’s common stock at a purchase price of $13.10 (the “Private Placement Shares”), for total gross proceeds to the Company of $14,410,000.  The Investors who purchased shares in the private offering (the “Private Placement”) were issued warrants to purchase an aggregate of 330,000 shares of common stock at an exercise price of $18.38 per share during the period beginning August 2, 2006 and ending February 2, 2010 (the “Private Placement Warrants”).  In addition, the Company issued warrants to purchase a total of 28,600 shares to the placement agents (the “Placement Agents”) in the Private Placement (the “Placement Agent Warrants”).  Of the total number of Placement Agent Warrants, warrants to purchase 22,000 shares have an exercise price of $13.76 per share (105% of the $13.10 per share offering price) and 6,600 have an exercise price of $19.30 per share (105% of the $18.38 exercise price of the warrants).  The Placement Agent Warrants first become exercisable on August 2, 2006 and expire on February 2, 2009.  The Placement Agents also received cash compensation equal to 6% of the gross proceeds raised in the Private Placement.

The issuance of the Private Placement Shares, the Private Placement Warrants and the Placement Agent Warrants is exemptor furnished pursuant to provisions of the Securities Act of 1933, as amended (the “Act”), provided by Rule 506 of Regulation D of the Act and Sections 4(2) and 4(6) thereunder, and the Private Placement was made only to “accredited investors” as that term is defined under the Act.  Pursuant to the terms of the Private Placement, the Company agreed to file, no later than 30 days after the closing of the Private Placement, a registration statement with the Securities and Exchange Commission to register the resaleSection 13(a) or other transfer of the Shares (including the shares underlying the Warrants and Placement Agent Warrants) by the purchasers and Placement Agents under the Act. The Registration Statement of which this Prospectus is a part is being filed pursuant to the Company’s obligation to register the resale of the securities sold in the Private Placement.

1



RISK FACTORS

You should carefully consider each of the following risk factors and all of the other information provided in this prospectus before purchasing our common stock.  The risks described below are those we currently believe may materially affect us.  An investment in our common stock involves a high degree of risk, and should be considered only by persons who can afford the loss of their entire investment.

Risk Related to Our Business

Our operating results may vary significantly, which may cause our stock price to fluctuate.

Our operating results are influenced by a number of factors, which may cause our revenue and operating results to fluctuate. These factors include:

promotions and subsidy by wireless network operators;

the timing of introduction of new products by our suppliers and competitors;

purchasing patterns of customers in different markets;

general economic conditions; and

product availability and pricing.

We buy a significant amount of our products from a limited number of suppliers, who may not provide us with competitive products at reasonable prices when we need them in the future.

We purchase wireless handsets and accessories principally from wireless communications equipment manufacturers and distributors. We depend on these suppliers to provide us with adequate inventories of currently popular brand name products on a timely basis and on favorable pricing and other terms. Our agreements with our principal suppliers are non-exclusive, can be terminated on short notice and provide for certain territorial restrictions, as is common in our industry. For the three months ended September 30, 2005 our top three suppliers accounted for 62%, 15% and 11% respectively of our purchases, compared to the three months ended September 30, 2004 during which our top two suppliers accounted for 42%, and 16% respectively of our purchases. Our suppliers may not offer us competitive products on favorable terms or with timely delivery. From time to time, we have been unable to obtain sufficient product supplies. Any failure or delay by our suppliers in supplying us with products on favorable terms may severely diminish our ability to obtain and deliver products to our customers on a timely and competitive basis. If we lose any of our principal suppliers, or if these suppliers are unable to fulfill our product needs, or if any principal supplier imposes substantial price increases and alternative sources of supply are not readily available, it would have a material adverse effect on our results of operations.

2



Our continuing liabilities on leases from our former mall-based retail kiosk locations could have a negative impact on earnings and cash flow.

Although we have assigned our six remaining retail leases to a third party and we have received indemnification from the third party, we also remain liable to the lessor, for the respective remaining lease terms of one to three years, if the third party does not fulfill its obligations under the leases. As of December 31, 2004 the total potential liability under these leases was $1,629,520 which is partially offset by a $95,044 escrow deposit held for the benefit of InfoSonics to the extent that the third party should default on any of the assigned leases.

The loss or reduction in orders from principal customers or a reduction in prices we are able to charge these customers will have a negative impact upon our revenues and could cause our stock price to decline.

Our three largest customers during the three months ended September 30, 2005 accounted for approximately 16%, 14% and 12% respectively, of our product sales. The markets we serve are subject to severe price competition. Additionally, our customers are not contractually obligated to purchase product from us. For these and other reasons such as competitive pricing and competitive pressures, customers may seek to obtain products or services from us at lower prices than we have been able to obtain from these customers in the past. This could occur, for example, in the case of a customer purchasing large quantities of a product from us, who then terminates this relationship because the customer can obtain a lower price by buying directly from the manufacturer. The loss of any of our principal customers, a reduction in the amount of product or services our principal customers order from us or the inability to maintain current terms, including price, with these or other customers could have an adverse effect on our financial condition, results of operations and liquidity. We have experienced losses of certain customers through industry consolidation and ordinary course of business and there can be no assurance that any of our customers will continue to purchase products or services from us or that their purchases will be at the same or greater levels than in prior periods.

Our future profitability depends on our ability to maintain existing margins and our ability to increase our sales, which we may not be able to do.

The gross margins that we realize on sales of wireless handsets could be reduced due to increased competition or a growing industry emphasis on cost containment. Therefore, our future profitability will depend on our ability to maintain our margins or to increase our sales to help offset potential future declines in margins. We may not be able to maintain existing margins for products or services offered by us or increase our sales. Our ability to generate sales is based upon demand for wireless telecommunications products and our having an adequate supply of these products. Even if our sales rates do increase, the gross margins that we receive from our sales may not be sufficient to make our future operations profitable or as profitable.

Our business depends on the continued tendency of wireless equipment manufacturers and network operators to outsource aspects of their business to us.

Our business depends in large part on wireless equipment manufacturers and network operators outsourcing some of their business functions to us. We provide functions such as distribution, inventory management, customized packaging, activation management and other services. Certain wireless equipment manufacturers and network operators have elected, and others may elect, to undertake these services internally. Additionally, our customer service levels, industry consolidation, competition, deregulation, technological changes or other factors could reduce the degree to which members of the

3



wireless telecommunications industry rely on outsourced services such as the services we provide. Any significant change in the market for these services could have a material adverse effect on our current and planned business.

We may not be able to effectively compete in our industry if consolidation of wireless network operators continues.

The past several years have witnessed a consolidation within the wireless network operator community. If this trend continues, it could result in a reduction or elimination of promotional activities by the remaining wireless network operators as they seek to reduce their expenditures, which could, in turn, result in decreased demand for our products or services. Moreover, consolidation of wireless network operators reduces the number of potential contracts available to us. We could also lose business if wireless network operators, which currently are our customers, are acquired by other wireless network operators which are not our customers. Wireless operators may also change their policy regarding sales to their agents by independent distributors, such as requiring those agents to purchase products from the wireless operator or manufacturer, rather than from distributors such as InfoSonics. This type of requirement could have a material adverse effect on our business and results of operations.

Our sales and inventory risk may be materially affected by fluctuations in regional demand patterns and economic factors for which we cannot plan.

The demand for our products and services has fluctuated and may continue to vary substantially within the regions served by us. We believe the roll-out of third generation, or 3G, cellular telephone systems and other new technologies, which has been delayed and could further be delayed, has had and will continue to have an effect on overall subscriber growth and handset replacement demand. Economic slow-downs in regions served by us or changes in promotional programs offered by wireless network operators may lower consumer demand for our products and create higher levels of inventories which could decrease our gross and operating margins. We could face a substantial inventory risk due to depreciation and equipment price erosion if our products are not sold in a timely manner. We believe our operations were adversely affected by an economic slow-down in the United States starting in the fourth quarter of 2000. A prolonged economic slow-down in the United States or any other regions in which we have significant operations could negatively impact our results of operations and financial position.

We may not be able to adequately respond to rapid technological changes in the wireless telecommunications industry, which could cause us to lose customers.

The technology relating to wireless telecommunications equipment changes rapidly resulting in product obsolescence or short product life cycles. We are required to anticipate future technological changes in our industry and to continually identify, obtain and market new products in order to satisfy evolving industry and customer requirements. Competitors or manufacturers of wireless equipment may market products which have perceived or actual advantages over products that we handle or which otherwise render those products obsolete or less marketable. We have made and continue to make significant capital investments in accordance with evolving industry and customer requirements including maintaining levels of inventories of currently popular products that we believe are necessary based on current market conditions. This utilization of capital for inventory buildup of this nature increases our risk of loss due to product obsolescence.

4



Substantial defaults by our customers on accounts receivables could have a significant negative impact on our cash flow and financial condition.

We currently offer and intend to offer open account terms to certain of our customers, which may subject us to credit risks, particularly to the extent that our receivables represent sales to a limited number of customers or are concentrated in particular geographic markets. Although we have an accounts receivable insurance policy, this policy carries a substantial deductible and may not cover us in all instances. We also have an accounts receivable credit facility in order to reduce our working capital requirements. The extent of our ability to use our accounts receivable credit facility is dependent on the amount of and collection cycle of our accounts receivable. Adverse changes in our ability to use accounts receivable financing could have a material adverse effect on our financial position, cash flows and results of operations.

We rely on our suppliers to provide trade credit facilities to adequately fund our on-going operations and product purchases, and without those facilities, our ability to procure products could be reduced.

Our business is dependent on our ability to obtain adequate supplies of currently popular products on favorable pricing and other terms. Our ability to fund our product purchases is dependent on our principal suppliers providing favorable payment terms that allow us to maximize the efficiency of our capital usage. The payment terms we receive from our suppliers are dependent on several factors, including, but not limited to, our payment history with the supplier, the suppliers’ credit granting policies, contractual provisions, our overall credit rating as determined by various credit rating agencies, industry conditions, our recent operating results, financial position and cash flows and the supplier’s ability to obtain credit insurance on amounts that we owe them. Adverse changes in any of these factors, certain of which may not be wholly in our control, could have a material adverse effect on our operations.

Approximately 84% and 68% of our revenues during the three and nine months ended September 30, 2005, respectively, were generated outside of the United States in countries that may have political or other risks.

We engage in sales activities in territories and countries outside of the United States. The fact that we distribute products into a number of countries exposes us to increased credit risks, customs duties, import quotas and other trade restrictions, potentially greater inflationary pressures, and shipping delays. Changes may occur in social, political, regulatory and economic conditions or in laws and policies governing foreign trade and investment in the territories and countries where we currently distribute products. United States laws and regulations relating to investment and trade in foreign countries could also change to our detriment. Any of these factors could have a material adverse effect on our business and operations. Although we purchase and sell products and services in United States dollars and do not engage in exchange swaps, futures or options contracts or other hedging techniques, fluctuations in currency exchange rates could reduce demand for products sold in United States dollars. We cannot predict the effect that future exchange rate fluctuations will have on our operating results. We may in the future engage in currency hedging transactions, which could result in our incurring significant additional losses.

We rely on our information system technology to function efficiently, without interruptions, and if it does not, customer relationships could be harmed.

We have focused on the application of our information system technology to provide customized services to wireless communications equipment manufacturers and network operators. Our ability to meet our customers’ technical and performance requirements is highly dependent on the effective functioning

5



of our information technology systems, which may experience interruptions. These business interruptions could cause us to fall below acceptable performance levels pursuant to our customers’ requirements and could result in the loss of the related business relationship.

We have outstanding indebtedness, which is secured by substantially all our assets and which could prevent us from borrowing additional funds, if needed.

We have a bank line of credit which is based on accounts receivable. If we violate our loan covenants, default on our obligations or become subject to a change of control, our indebtedness would become immediately due and payable. Our credit facility is secured by substantially all of our assets and borrowing availability is based primarily on a percentage of eligible accounts receivable. Consequently, any significant decrease in eligible accounts receivable will limit our ability to borrow additional funds to adequately finance our operations and expansion strategies. The terms of our credit facility could substantially prohibit us from incurring additional indebtedness, which could limit our ability to expand our operations. The terms of our credit facility also include negative covenants that, among other things, limit our ability to sell certain assets and make certain payments, including but not limited to, dividends, repurchases of common stock and other payments outside the normal course of business as well as prohibiting us from merging or consolidating with another corporation or selling all or substantially all of our assets. The facility expires October 2006.

The wireless telecommunications industry is intensely competitive and we may not be able to continue to compete against well-established competitors with greater financial and other resources.

We compete for sales of wireless telecommunications equipment and accessories, and expect that we will continue to compete, with numerous well-established wireless network operators, distributors and manufacturers, including our own suppliers. Many of our competitors possess greater financial and other resources than we do and may market similar products or services directly to our customers. Distribution of wireless telecommunications equipment and accessories has generally had low barriers to entry. As a result, additional competitors may choose to enter our industry in the future. The markets for wireless handsets and accessories are characterized by intense price competition and significant price erosion over the life of a product. Many of our competitors have the financial resources to withstand substantial price competition and to implement extensive advertising and promotional programs, both generally and in response to efforts by additional competitors to enter into new markets or introduce new products. Our ability to continue to compete successfully will depend largely on our ability to maintain our current industry relationships. We may not be successful in anticipating and responding to competitive factors affecting our industry, including new or changing outsourcing requirements, the entry of additional well-capitalized competitors, new products which may be introduced, changes in consumer preferences, demographic trends, international, national, regional and local economic conditions and competitors’ discount pricing and promotion strategies. As wireless telecommunications markets mature and as we seek to enter into new markets and offer new products in the future, the competition that we face may change and grow more intense.

Our continued growth depends on retaining our current key employees and attracting additional qualified personnel, and we may not be able to continue to do so.

Our success depends in large part on the abilities and continued service of our executive officers and other key employees, particularly Joseph Ram, our Chief Executive Officer. Although we have entered into employment agreements with several of our officers and employees, including Mr. Ram, we may not be able to retain their services under applicable law. The loss of executive officers or other key personnel could have a material adverse effect on us. In addition, in order to support our continued growth, we will be required to effectively recruit, develop and retain additional qualified management. If

6



we are unable to attract and retain additional necessary personnel, it could delay or hinder our plans for growth.

We rely on trade secret laws and agreements with our key employees and other third parties to protect our proprietary rights, and there is no assurance that these laws or agreements adequately protect our rights.

We rely on trade secret laws to protect our proprietary knowledge, particularly our database of customers and suppliers and business terms such as pricing. In general, we also have non-disclosure agreements with our key employees and limit access to and distribution of our trade secrets and other proprietary information. These measures may prove difficult to enforce and may not prove adequate to prevent misappropriation of our proprietary information.

We may become subject to suits alleging medical risks associated with our wireless handsets, and the cost of these suits could be substantial, and divert funds from our business.

Lawsuits or claims have been filed or made against manufacturers of wireless handsets over the past years alleging possible medical risks, including brain cancer, associated with the electromagnetic fields emitted by wireless communications handsets. There has been only limited relevant research in this area, and this research has not been conclusive as to what effects, if any, exposure to electromagnetic fields emitted by wireless handsets has on human cells. Substantially all of our revenues are derived, either directly or indirectly, from sales of wireless handsets. We may become subject to lawsuits filed by plaintiffs alleging various health risks from our products. If any future studies find possible health risks associated with the use of wireless handsets or if any damages claim against us is successful, it could have a material adverse effect on our business. Even an unsubstantiated perception that health risks exist could adversely affect our ability or the ability of our customers to market wireless handsets.

Risks Related To This Prospectus and Our Common Stock

Stockholders may be diluted as a result of future offerings or other financings.

We may need to raise additional capital through one or more future public offerings, private placements or other financings involving our securities. We recently raised approximately $14,400,000 of gross proceeds through the sale of 1,100,000 shares of our common stock and warrants to purchase 330,000 shares of common stock pursuant to a private offering which was made to accredited and institutional investors. As a result of this financing and any future financings, none of which is currently planned, ownership interests in our company may be greatly diluted.

Our common stock, and our stock price could be volatile and could decline, resulting in a substantial loss on your investment.

Prior to our initial public offering in June 2004, there was not a public market for our common stock. An active trading market for our common stock may never develop or be sustained, which could affect the ability of our stockholders to sell their shares and could depress the market price of their shares. The stock market in general and the market for telecommunications-related stocks in particular, has been highly volatile. As a result, the market price of our common stock is likely to be similarly volatile, and in fact has been unusually volatile during the ninety days preceeding the date of this prospectus, and investors in our common stock may experience a decrease in the value of their stock, including decreases unrelated to our operating performance or prospects. The price of our common stock could be subject to wide fluctuations in response to a number of factors, including those listed in this ‘‘Risk Factors’’ section.

7



In the past, securities class action litigation has often been instituted against companies following periods of volatility in their stock price. This type of litigation against us could result in substantial costs and divert our management’s attention and resources.

Shares of common stock that are issuable pursuant to our stock option plans and our outstanding warrants, when issued, could result in dilution to existing stockholders and could cause the market price of our common stock to fall.

We have reserved shares of common stock that may be issuable pursuant to our stock option plans and our outstanding options outside those plans. These securities, when issued and outstanding, may reduce earnings per share under accounting principles generally accepted in the United States of America and, to the extent that they are exercised and shares of common stock are issued, dilute percentage ownership to existing stockholders which could have an adverse effect on the market price of our common stock.

The ability of our stockholders to control our policies or effect a change in control of our company is limited, which may not be in our stockholders’ best interests.

Some provisions of our charter and bylaws and the General Corporation Law of Maryland, where we are incorporated, may delay or prevent a change in control of our company or other transactions that could provide our common stockholders with a premium over the then-prevailing market price of our common stock or that might otherwise be in the best interests of our stockholders. These include the ability of our Board of Directors to authorize the issuance of preferred stock without stockholder approval, which preferred stock may have voting provisions that could delay or prevent a change in control or other transaction that might involve a premium price or otherwise be in the best interests of our stockholders. Maryland law imposes restrictions on some business combinations and requires compliance with statutory procedures before some mergers and acquisitions can occur. These provisions of Maryland law may have the effect of discouraging offers to acquire us even if the acquisition would be advantageous to our stockholders.

Our chief executive officer beneficially owns approximately 37.55% of our outstanding common stock and might be able to influence the Company to pursue strategic interests which are not consistent with the interests of other stockholders.

Our Chief Executive Officer, who is also our largest stockholder, beneficially owns approximately 37.55% of our outstanding common stock.  It is possible that he may be able to exercise control over many matters requiring approval by the board of directors or our stockholders by virtue of his holdings.  As a result, he may be able to:

Control the composition of our board of directors;

Determine the outcome of significant corporate transactions, including changes in control that may be beneficial to stockholders; and

Act in his own interest, which may conflict with, or be different from, the interests of the other stockholders.

8



CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

This prospectus and the materials incorporated herein by reference contain forward-looking statements, including statements regarding, among other items, known or unknown risks, uncertainties and other factors that may cause the actual results, performance, or achievements of InfoSonics to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Specifically, 1) the actions of competitors and customers and our ability to execute our business plans; and 2) our ability to increase revenues and operating income is dependent upon our ability to continue to expand our current businesses and to enter new business areas, general economic conditions, and other factors. You can identify forward-looking statements by terminology such as “may,” “will,” “should,” “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “potential,” “continues” or the negative of these terms or other comparable terminology. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements.

USE OF PROCEEDS

The Selling Stockholders will be selling all of the shares under this prospectus in the Offering.  The proceeds from the sale of the shares will be received directly by the Selling Stockholders.  We will receive no proceeds from the sale of the shares offered by Selling Stockholders under this prospectus.

DIVIDEND POLICY

We have never paid cash dividends and have no plans to do so in the foreseeable future.  Our future dividend policy will be determined by our board of directors and will depend upon a number of factors, including our financial condition and performance, our cash needs and expansion plans, income tax consequences, and the restrictions that applicable laws, our current preferred stock instruments, and our future credit arrangements may then impose.

SELLING STOCKHOLDERS

The securities are being offered by the named selling security holders below.  The table below assumes the immediate exercise of all warrants to purchase Common Stock, without regard to other factors that may determine whether such rights of conversion or purchase are exercised.  These factors include but are not limited to the other rights associated with the terms of the warrant agreements, and the specific exercise price of the securities held by each selling security holder and its relation to the market price.

The selling security holders may from time to time offer and sell pursuant to this prospectus up to an aggregate of: (i) 1,100,000 shares of our Common Stock now owned by them; (ii) 330,000 shares of Common Stock issuable to them upon the exercise, at $18.38 per share, of the Private Placement Warrants; (iii) 22,000 shares of Common Stock issuable to the Placement Agents, upon the exercise, at $13.76 per share, of Placement Agent Warrants; and (iv) 6,600 shares of Common Stock issuable to the Placement Agents, upon the exercise, at $19.30 per share, of Placement Agent Warrants.  The selling security holders may, from time to time, offer and sell any or all of the shares that are registered under this prospectus, although they are not obligated to do so.

We have been advised, as noted below in the footnotes to the table, two of the selling stockholders are broker-dealers and four of the selling stockholders are affiliates of broker-dealers.

We do not know when or in what amounts the selling security holders may offer the shares described in this Prospectus for sale.  The selling security holders may decide not to exercise any warrants or sell any of the shares that this Prospectus covers.  Because the selling security holders may offer all or some of the shares pursuant to this Prospectus, and because there are currently no agreements, arrangements or understandings with respect to the sale of any of the shares that the selling security holders will hold after completion of the Offering, we cannot estimate the number of the shares that the

9



selling security holders will hold after completion of the Offering.  However, for purposes of the following tables, we have assumed that, after completion of the Offering, the selling security holders will hold none of the securities that this Prospectus covers.

The following table sets forth, to the Company’s best knowledge and belief, with respect to the selling security holders:

                       the number of shares of common stock beneficially owned as of February 8, 2006 and prior to the offering contemplated hereby,

                       the number of shares of common stock eligible for resale and to be offered by each selling security holder pursuant to this prospectus,

                       the number of shares owned by each selling security holder after the offering contemplated hereby, assuming that all shares eligible for resale pursuant to this prospectus actually are sold,

                       the percentage of shares of common stock beneficially owned by each selling security holder after the offering contemplated hereby, and

                       in notes to the table, additional information concerning the selling security holders, including any NASD affiliations and any relationships, excluding non-executive employee and other non-material relationships, that a selling security holder had during the past three years with the registrant or any of its predecessors or affiliates.

10



Selling Stockholders (A)

 

Number of Shares of
Common Stock Owned
Before Offering (B)

 

Number of Shares To Be
Offered (C)

 

Number
of Shares
Owned
After
Offering

 

Percentage
of
Outstanding
Shares of
Common
Stock
Owned
After
Offering

 

Castlerigg Master Investments Ltd. (1)

 

162,500

 

162,500

 

 

0

%

Truk International Fund, LP (2)

 

8,775

 

8,775

 

 

0

%

Truk Opportunity Fund, LLC (3)

 

147,225

 

147,225

 

 

0

%

Radcliffe SPC, Ltd. for and on behalf of the Class A Convertible Crossover Segregated Portfolio (4)

 

130,000

 

130,000

 

 

0

%

UBS O’Connor LLC f/b/o O’Connor PIPES Corporate Strategies Master Limited (5)

 

130,000

 

130,000

 

 

0

%

Nite Capital, L.P. (6)

 

130,000

 

130,000

 

 

0

%

Capital Ventures International (7)

 

97,500

 

97,500

 

 

0

%

Cranshire Capital, L.P.(8)

 

65,000

 

65,000

 

 

0

%

Enable Growth Partners LP (9)

 

66,430

 

66,430

 

 

0

%

Enable Opportunity Partners LP (10)

 

10,920

 

10,920

 

 

0

%

Pierce Diversified Strategy Master Fund (11)

 

13,650

 

13,650

 

 

0

%

Telluride Capital Master Fund Ltd. (12)

 

87,750

 

87,750

 

 

0

%

DBZ Acquisition Partners II, LLC (13)

 

78,000

 

78,000

 

 

0

%

DKR SoundShore Oasis Holding Fund Ltd.(14)

 

74,750

 

74,750

 

 

0

%

Colonial Fund, LLC (15)

 

45,500

 

45,500

 

 

0

%

Omicron Master Trust (16)

 

45,500

 

45,500

 

 

0

%

Basso Fund Ltd. (17)

 

6,630

 

6,630

 

 

0

%

Basso Multi-Strategy Holding Fund Ltd. (18)

 

24,570

 

24,570

 

 

0

%

Basso Private Opportunities Holding Fund Ltd. (19)

 

7,800

 

7,800

 

 

 

0

%

11



Selling Stockholders (A)

 

Number of Shares of
Common Stock Owned
Before Offering (B)

 

Number of Shares To Be
Offered (C)

 

Number
of Shares
Owned
After
Offering

 

Percentage
of
Outstanding
Shares of
Common
Stock
Owned
After
Offering

 

CAMOFI Master, LDC (20)

 

26,000

 

26,000

 

 

0

%

JGB Capital LP (21)

 

19,500

 

19,500

 

 

0

%

Iroquois Master Fund Ltd. (22)

 

52,000

 

52,000

 

 

0

%

SG Cowen & Co., LLC (23)

 

24,310

 

24,310

 

 

0

%

Montgomery 2006-1 Partnership (24)

 

4,290

 

4,290

 

 

0

%

 

 

 

 

 

 

 

 

 

 

TOTAL

 

1,458,600

 

1,458,600

 

 

 

 

 


(A) It is our understanding that any selling security holder that is an affiliate of a broker-dealer purchased the securities offered hereunder in the ordinary course of business, and at the time of the purchase, had no agreements or understanding to distribute the securities.

(B) Includes shares underlying warrants held by the selling security holder that are covered by this prospectus.

(C) The number of shares of common stock to be sold assumes that the selling security holder elects to sell all the shares of common stock held by the selling security holder that are covered by this prospectus.

(1)          Sandell Asset Management Corp. (“SAMC”), is the investment manager of Castlerigg Master Investments Ltd. (“Master”).  Thomas Sandell is the controlling person of SAMC and may be deemed to share beneficial ownership of the shares beneficially owned by Master.  Castlerigg International Ltd. (“Castlerigg International”) is the controlling shareholder of Castlerigg International Holdings Limited (“Holdings”).  Holdings is the controlling shareholder of Master.  Each of Holdings and Castlerigg International may be deemed to share beneficial ownership of the shares beneficially owned by Master.  SAMC, Mr. Sandell, Holdings and Castlerigg International each disclaims beneficial ownership of the securities owned by Master described above. Includes 125,000 shares of common stock and warrants to acquire 37,500 shares of our common stock at an exercise price of $18.38 per share, which become exercisable on August 2, 2006 and which terminate on February 2, 2010.

(2)          Michael E. Fein and Stephen E. Saltzstein, as principals of Atoll Asset Management LLC, the Managing Member of Truk International Fund, LP, exercise investment and voting control over the securities owned by Truk International Fund, LP.  Both Mr. Fein and Mr. Saltzstein disclaim beneficial ownership of the securities owned by Truk International Fund, LP.  Includes 6,750 shares of common stock and warrants to acquire 2,025 shares of our common stock at an exercise price of $18.38 per share, which become exercisable on August 2, 2006 and which terminate on February 2, 2010.

(3)          Michael E. Fein and Stephen E. Saltzstein, as principals of Atoll Asset Management LLC, the Managing Member of Truk Opportunity Fund, LLC, exercise investment and voting control over the securities owned by Truk Opportunity Fund, LLC.  Both Mr. Fein and Mr. Saltzstein disclaim beneficial ownership of the securities owned by Truk Opportunity Fund, LLC Includes 113,250 shares of common stock and warrants to acquire 33,975 shares of our common stock at an exercise price of $18.38 per share, which become exercisable on August 2, 2006 and which terminate on February 2, 2010.

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(4)          Pursuant to an investment management agreement, RG Capital Management, L.P., (“RG Capital”) serves as the investment manager of Radcliffe SPC, Ltd.’s Class A Convertible Crossover Segregated Portfolio.  RGC Management Company, LLC (“Management”) is the general partner of RG Capital.  Steve Katznelson and Gerald Stahlecker serve as the managing members of Management.  Each of RG Capital, Management, and Messrs. Katznelson and Stahlecker disclaims beneficial ownership of the securities owned by Radcliffe SPC, Ltd. for and on behalf of the Class A Convertible Crossover Segregated Portfolio. Includes 100,000 shares of common stock and warrants to acquire 30,000 shares of our common stock at an exercise price of $18.38 per share, which become exercisable on August 2, 2006 and which terminate on February 2, 2010.

(5)          Includes 100,000 shares of common stock and warrants to acquire 30,000 shares of our common stock at an exercise price of $18.38 per share, which become exercisable on August 2, 2006 and which terminate on February 2, 2010.

(6)          Keith Goodman, Manager of the General Partner of Nite Capital LP, has voting and investment power over the shares owned by Nite Capital LP.  Mr. Goodman disclaims beneficial ownership in the shares held by Nite Capital LP.  Includes 100,000 shares of common stock and warrants to acquire 30,000 shares of our common stock at an exercise price of $18.38 per share, which become exercisable on August 2, 2006 and which terminate on February 2, 2010.

(7)          Capital Ventures International is affiliated with one or more registered broker-dealers. Capital Ventures International purchased the shares being registered hereunder in the ordinary course of business and at the time of purchase, had no agreements or understandings, directly or indirectly, with any other person to distribute such shares. Includes 75,000 shares of common stock and warrants to acquire 22,500 shares of our common stock at an exercise price of $18.38 per share, which become exercisable on August 2, 2006 and which terminate on February 2, 2010.

(8)          Includes 50,000 shares of common stock and warrants to acquire 15,000 shares of our common stock at an exercise price of $18.38 per share, which become exercisable on August 2, 2006 and which terminate on February 2, 2010.  Mitchell P. Kopin, President of Downsview Capital, Inc., the General Partner of Cranshire Capital, L.P. has sole voting and investment power over the shares owned by Chanshire Capital, L.P.  Mitchell P. Kopin and Downsview Capital, Inc. disclaim beneficial ownership of the shares held by Cranshire Capital, L.P.

(9)          Enable Growth Partners LP is affiliated with Enable Capital LLC, a registered broker-dealer.  Mitch Levine is the Managing Member of Enable Capital LLC and is also a principal in Enable Growth Partners LP’s general partner.  Enable Growth Partners L.P. purchased the securities described above for the sole benefit of the fund’s limited partners, and with no pre-existing, current or future intent to distribute the Company’s securities through Enable Capital LLC.  Enable Growth Partners L.P. acquired the securities in the ordinary course of business and, at the time of acquisition, had no agreements, understandings or arrangements with any other persons, directly or indirectly, to dispose of the securities.  Enable Capital LLC maintains no direct or client accounts.  Includes 51,100 shares of common stock and warrants to acquire 15,330 shares of our common stock at an exercise price of $18.38 per share, which become exercisable on August 2, 2006 and which terminate on February 2, 2010.

(10)    Enable Opportunity Partners LP is affiliated with Enable Capital LLC, a registered broker-dealer.  Mitch Levine is the Managing Member of Enable Capital LLC and is also a principal in Enable Opportunity Partners LP’s general partner.  Enable Opportunities Partners L.P. purchased the securities described above for the sole benefit of the fund’s limited partners, and with no pre-existing, current or future intent to distribute the Company’s securities through Enable Capital LLC.  Enable Opportunities Partners L.P. acquired the securities in the ordinary course of business and, at the time of acquisition, had no agreements, understandings or arrangements with any other persons, directly or indirectly, to dispose of the securities.  Enable Capital LLC maintains no direct or client accounts. Includes 8,400 shares of common stock and warrants to acquire 2,520 shares of our common stock at an exercise price of $18.38 per share, which become exercisable on August 2, 2006 and which terminate on February 2, 2010.

13



(11)    Pierce Diversified Strategy Master Fund LLC is affiliated with Enable Capital LLC, a registered broker-dealer.  Mitch Levine is the Managing Member of Enable Capital LLC and is also a principal in Pierce Diversified Strategy Master Fund LLC’s general partner.  Pierce Diversified Strategy Master Fund LLC purchased the securities described above for the sole benefit of the fund’s limited partners, and with no pre-existing, current or future intent to distribute the Company’s securities through Enable Capital LLC.   Pierce Diversified Strategy Master Fund LLC acquired the securities in the ordinary course of business and, at the time of acquisition, had no agreements, understandings or arrangements with any other persons, directly or indirectly, to dispose of the securities.  Enable Capital LLC maintains no direct or client accounts. Includes 10,500 shares of common stock and warrants to acquire 3,150 shares of our common stock at an exercise price of $18.38 per share, which become exercisable on August 2, 2006 and which terminate on February 2, 2010.

(12)    Includes 67,500 shares of our common stock held by Telluride Capital Master Fund Ltd., and 20,250 shares of our common stock issuable upon the exercise of warrants held by Telluride Capital Master Fund Ltd.  The warrants, which have an exercise price of $18.38 per share, become exercisable on August 2, 2006 and terminate on February 2, 2010.  Telluride Capital Master Fund Ltd, a Cayman Islands company, is a private investment fund that is owned by all of its investors and is managed by Telluride Asset Management LLC.  Telluride Asset Management LLC, whose sole member is Peter Hajas, has voting and investment control over the shares that are owned by Telluride Capital Master Fund Ltd.  Peter Hajas and Telluride Asset Management LLC disclaim beneficial ownership of the shares held by Telluride Capital Master Fund Ltd. The address for Telluride Asset Management LLC is 1000 Parkers Lake Road, Wayzata, Minnesota 55391.

(13)    Includes 60,000 shares of common stock and warrants to acquire 18,000 shares of our common stock at an exercise price of $18.38 per share, which become exercisable on August 2, 2006 and which terminate on February 2, 2010.

(14)    The investment manager of DKR SoundShore Oasis Holding Fund Ltd. (the “Fund”) is DKR Oasis Management Company LP (the “Investment Manager”).  The Investment Manager has the authority to do any and all acts on behalf of the Fund, including voting any shares held by the Fund.  Mr. Seth Fischer is the managing partner of Oasis Management Holdings LLC, one of the general partners of the Investment Manager.  Mr. Fischer has ultimate responsibility for trading with respect to the Fund.  Mr. Fischer disclaims beneficial ownership of the shares.  Includes 57,500 shares of common stock and warrants to acquire 17,250 shares of our common stock at an exercise price of $18.38 per share, which become exercisable on August 2, 2006 and which terminate on February 2, 2010.

(15)    Includes 35,000 shares of common stock and warrants to acquire 10,500 shares of our common stock at an exercise price of $18.38 per share, which become exercisable on August 2, 2006 and which terminate on February 2, 2010.

(16)    Omicron Capital, L.P., a Delaware limited partnership (“Omicron Capital”), serves as investment manager to Omicron Master Trust, a trust formed under the laws of Bermuda (“Omicron”), Omicron Capital, Inc., a Delaware corporation (“OCI”), serves as general partner of Omicron Capital, and Winchester Global Trust Company Limited (“Winchester”) serves as the trustee of Omicron.  By reason of such relationships, Omicron Capital and OCI may be deemed to share dispositive power over the shares of our common stock owned by Omicron, and Winchester may be deemed to share voting and dispositive power over the shares of our common stock owned by Omicron.  Omicron Capital, OCI and Winchester disclaim beneficial ownership of such shares of our common stock.  Omicron Capital has delegated authority from the board of directors of Winchester regarding the portfolio management decisions with respect to the shares of common stock owned by Omicron and, as ofFebruary 8, 2006, Mr. Olivier H. Morali and Mr. Bruce T. Bernstein, officers of OCI, have delegated authority from the board of directors of OCI regarding the portfolio management decisions of Omicron Capital with respect to the shares of common stock owned by Omicron.  By reason of such delegated authority, Messrs. Morali and Bernstein may be deemed to share dispositive power over the shares of our common stock owned by Omicron.  Messrs. Morali and Bernstein disclaim beneficial ownership of such shares of our common stock and neither of such persons has any legal right to maintain such delegated authority.  No other person has sole or shared voting or dispositive power with respect to the shares of our common stock being offered by Omicron, as those terms are used for purposes under Regulation 13D-G of the Securities Exchange Act of 1934, as amended. Omicron and

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Winchester are not “affiliates” of one another, as that term is used for purposes of the Securities Exchange Act of 1934, as amended, or of any other person named in this prospectus as a selling stockholder.  No person or “group” (as that term is used in Section 13(d)15(d) of the Securities Exchange Act of 1934, as amended, or the SEC’s Regulation 13D-G) controls OmicronExchange Act, as soon as reasonably practicable after we electronically file such material with, or furnish it to, the SEC. The information contained in, or that can be accessed through, our website is not part of this prospectus supplement or the accompanying prospectus.

RISK FACTORS

Investing in our securities involves a high degree of risk.  You should carefully consider the risk factors set forth under “Risk Factors” described in our most recent annual report on Form 10-K, as supplemented and Winchester.  Includes 35,000updated by subsequent quarterly reports on Form 10-Q and current reports on Form 8-K that we have filed with the SEC, together with all other information contained or incorporated by reference in this prospectus and any applicable prospectus supplement and in any related free writing prospectus in connection with a specific offering, before making an investment decision.  Each of the risk factors could materially and adversely affect our business, operating results, financial condition and prospects, as well as the value of an investment in our securities, and the occurrence of any of these risks might cause you to lose all or part of your investment.

NOTE REGARDING FORWARD-LOOKING STATEMENTS

This prospectus and our SEC filings that are incorporated by reference into this prospectus contain or incorporate by reference forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act.  All statements, other than statements of historical fact, included or incorporated by reference in this prospectus regarding our business strategy, future operations, projected financial position, potential strategic transactions, proposed distribution channels, projected sales growth, proposed new products, estimated future revenues, cash flows and

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profitability, projected costs, potential sources of additional capital, future prospects, future economic conditions, the future of our industry and results that might be obtained by pursuing management’s current plans and objectives are forward-looking statements.  The words “believe,” “anticipate,” “estimate,” “plan,” “expect,” “intend,” “may,” “could,” “should,” “potential,” “likely,” “projects,” “continue,” “will,” and “would” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words.  Forward-looking statements reflect our current views with respect to future events, are based on assumptions and are subject to risks and uncertainties.  We cannot guarantee that we actually will achieve the plans, intentions or expectations expressed in our forward-looking statements and you should not place undue reliance on these statements.  There are a number of important factors that could cause our actual results to differ materially from those indicated or implied by forward-looking statements.  These important factors include those discussed under the heading “Risk Factors” contained or incorporated by reference in this prospectus and in the applicable prospectus supplement and any free writing prospectus we may authorize for use in connection with a specific offering.  These factors and the other cautionary statements made in this prospectus should be read as being applicable to all related forward-looking statements whenever they appear in this prospectus.  Except as required by law, we undertake no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

USE OF PROCEEDS

Except as described in any prospectus supplement and any free writing prospectus in connection with a specific offering, we currently intend to use the net proceeds from the sale of the securities offered under this prospectus to fund the growth of our business, primarily working capital, and for general corporate purposes.  We may also use a portion of the net proceeds to acquire or invest in technologies, products and/or businesses that we believe will enhance the value of our Company, although we have no current commitments or agreements with respect to any such transactions as of the date of this prospectus.  We have not determined the amount of net proceeds to be used specifically for the foregoing purposes.  As a result, our management will have broad discretion in the allocation of the net proceeds and investors will be relying on the judgment of our management regarding the application of the proceeds of any sale of the securities.  If a material part of the net proceeds is to be used to repay indebtedness, we will set forth the interest rate and maturity of such indebtedness in a prospectus supplement. Pending use of the net proceeds, we intend to invest the proceeds in investment-grade, interest-bearing securities.

DILUTION

If required, we will set forth in a prospectus supplement the following information regarding any material dilution of the equity interests of investors purchasing securities in an offering under this prospectus:

the net tangible book value per share of our equity securities before and after the offering;

the amount of the increase in such net tangible book value per share attributable to the cash payments made by purchasers in the offering; and

the amount of the immediate dilution from the public offering price which will be absorbed by such purchasers.


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DESCRIPTION OF COMMON STOCK AND PREFERRED STOCK

The following description of our common stock and preferred stock, together with any additional information we include in any applicable prospectus supplement or any related free writing prospectus, summarizes the material terms and provisions of our common stock and the preferred stock that we may offer under this prospectus.  While the terms we have summarized below will apply generally to any future common stock or preferred stock that we may offer, we will describe the particular terms of any class or series of these securities in more detail in the applicable prospectus supplement.  For the complete terms of our common stock and preferred stock, please refer to our articles of incorporation and our bylaws, as amended, that are incorporated by reference into the registration statement of which this prospectus is a part or may be incorporated by reference in this prospectus or any applicable prospectus supplement.  The terms of these securities may also be affected by the Maryland General Corporation Law, or the MGCL.  The summary below and that contained in any applicable prospectus supplement or any related free writing prospectus are qualified in their entirety by reference to our articles of incorporation and bylaws, as in effect at the time of any offering of securities under this prospectus.  For information on how to obtain copies of our articles of incorporation and bylaws, see “Where You Can Find More Information.”

Common Stock

As of the date of this prospectus, our articles of incorporation authorize us to issue 150,000,000 shares of common stock, par value $0.001 per share, of which 7,086,743 shares were issued and outstanding as of September 7, 2018.  Additional shares of authorized common stock may be issued, as authorized by our board of directors from time to time, without stockholder approval, except as may be required by applicable securities exchange requirements.  The holders of common stock possess exclusive voting rights in us, except to the extent our board of directors specifies voting power with respect to any other class of securities issued in the future.  Each holder of our common stock is entitled to one vote for each share held of record on each matter submitted to a vote of stockholders, except that in the election of directors each holder of our common stock shall have as many votes for each share of record as there are directors to be elected and for whose election the holder has a right to vote.  Stockholders do not have any right to cumulate votes in the election of directors.

Subject to any preferences that may be granted to the holders of preferred stock, each holder of our common stock is entitled to share ratably in any distributions to stockholders and to receive ratably any dividends as may be declared by our board of directors out of funds legally available therefor, although as of the date of this prospectus, no dividends have been declared or paid.  In the event of our liquidation, dissolution or winding up, the holders of our common stock will be entitled to receive, after payment of all of our debts and liabilities and of all sums to which holders of any preferred stock may be entitled, the distribution of any of our remaining assets.  Holders of our common stock have no conversion, exchange, sinking fund or redemption rights and have no preemptive rights to subscribe for any of our securities.

All of the outstanding shares of our common stock are fully paid and non-assessable.  The shares of common stock offered by this prospectus or upon the conversion of any preferred stock or exercise of any warrants offered pursuant to this prospectus, when issued and paid for, will also be, fully paid and non-assessable.

Securities Exchange Listing

Our common stock is listed on The Nasdaq Capital Market under the symbol “AWSM.”

Transfer Agent and Registrar

The transfer agent and registrar for our common stock is Computershare.

Preferred Stock

As of the date of this prospectus, our articles of incorporation authorize us to issue 10,000,000 shares of preferred stock, par value $0.001 per share, all of which is currently designated as “0% Series A Convertible Preferred Stock”, and which 657,710 shares are currently outstanding. Pursuant to our articles of incorporation, our board of directors has the authority to provide for the issuance, in one or more series, of our authorized preferred stock and to fix or alter the rights, preferences, privileges and restrictions granted to or imposed upon any series of our preferred stock.  The rights, privileges, preferences and restrictions of any such series of our preferred stock may be subordinated to, pari passu with (including, without limitation, inclusion in provisions with respect to liquidation and acquisition preferences, redemption or approval of matters by vote or written consent), or senior to any of those of any present or future class or series of preferred stock or common stock.  The issuance of preferred stock may have the effect of decreasing the market price of our common stock and may adversely affect the voting power of holders of our common stock and reduce the likelihood that holders of our common stock will receive dividend payments and payments upon liquidation.

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The particular terms of each class or series of preferred stock that we may offer under this prospectus, including redemption privileges, liquidation preferences, voting rights, dividend rights and/or conversion rights, will be more fully described in the applicable prospectus supplement relating to the preferred stock offered thereby.  The rights, preferences, privileges and restrictions of any series of preferred stock that we may offer under this prospectus will be set forth in the particular articles supplementary that we would file with the Maryland State Department of Assessments and Taxation.  We will file as an exhibit to the registration statement of which this prospectus is a part, or will incorporate by reference from another report we file with the SEC, the form of any articles supplementary that describe the terms of the series of preferred stock we may offer before the issuance of the related series of preferred stock.  The applicable prospectus supplement will specify the terms of the series of preferred stock we may offer, including, but not limited to:

the distinctive designation and the maximum number of shares in the series;

the number of shares we are offering and purchase price per share;

the liquidation preference, if any;

the terms on which dividends, if any, will be paid;

the voting rights, if any, of the shares of the series;

the terms and conditions, if any, on which the shares of the series shall be convertible into, or exchangeable for, shares of any other class or classes of capital stock;

the terms on which the shares may be redeemed, if at all;

any listing of the preferred stock on any securities exchange or market;

a discussion of any material or special United States federal income tax considerations applicable to the preferred stock; and

any or all other preferences, rights, restrictions, including restrictions on transferability, and qualifications of shares of the series.

The description of preferred stock above and the description of the terms of a particular series of preferred stock in any applicable prospectus supplement are not complete.  You should refer to the applicable articles supplementary for complete information.

Anti-Takeover Effects of Provisions of our Charter Documents and Maryland Law

Provisions of the MGCL, our articles of incorporation and our bylaws could make it more difficult to acquire us by means of a tender offer, a proxy contest or otherwise, or to remove incumbent officers and directors.  These provisions, summarized below, are expected to discourage certain types of coercive takeover practices and takeover bids that our board of directors may consider inadequate and to encourage persons seeking to acquire control of us to first negotiate with our board of directors.  We believe that the benefits of increased protection of our ability to negotiate with the proponent of an unfriendly or unsolicited proposal to acquire or restructure us outweigh the disadvantages of discouraging takeover or acquisition proposals because, among other things, negotiation of these proposals could result in an improvement of their terms.  This summary does not purport to be complete and is qualified in its entirety by reference to the MGCL and our articles of incorporation and bylaws.

Articles of Incorporation and Bylaws

Preferred Stock.   Under our articles of incorporation, our board of directors has the power to authorize the issuance of up to 10,000,000 shares of preferred stock, all of which are currently designated as “0% Series A Convertible Preferred Stock”, and to determine the price, rights, preferences, privileges and restrictions, including voting rights, of those shares without further vote or action by our stockholders.  The issuance of preferred stock may:

delay, defer or prevent a change in control;

discourage bids for our common stock at a premium over the market price of our common stock;

adversely affect the voting and other rights of the holders of our common stock; and

discourage acquisition proposals or tender offers for our shares and, as a consequence, inhibit fluctuations in the market price of our shares that could result from actual or rumored takeover attempts.

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Advance Notice Requirement for Stockholder Nominations for Directors.   Stockholder nominations of individuals for election to our board of directors must comply with the advance-notice procedures set forth in our bylaws.  Generally, to be timely, such notice must be received by our Corporate Secretary not less than 90 days nor more than 130 days prior to (i) any meeting (other than an annual meeting) at which directors are to be elected, appointed or designated or (ii) in the case of an annual meeting, the anniversary of the previous year’s annual meeting; provided, however, that if, (x) in the case of an annual meeting, the annual meeting is scheduled to be held on a date more than 30 days prior to or delayed by more than 60 days after such anniversary date, or (y) in the case of any other meeting, less than 100 days’ notice of the meeting is given to the stockholders, then notice by the stockholder must be delivered no later than the close of business 90 days prior to such meeting or the 10th day following the day on which notice of the date of the meeting was mailed or public disclosure of the date of the meeting was first made by the Company.

Advance Notice Requirement for Stockholder Proposals at Annual Meeting.   Any stockholder who intends to present a proposal at an annual meeting of stockholders without inclusion of such proposal in our proxy materials must provide us notice of such proposal in the manner set forth in our bylaws not less than 53 days nor more than 90 days prior to the annual meeting at which the business proposed is to be acted upon; provided, however, that if less than 60 days’ notice of the annual meeting is given to stockholders, written notice of business proposed by stockholders must be delivered or mailed, as prescribed in our bylaws, to our Corporate Secretary not later than the close of the seventh day following the day on which notice of the meeting was mailed to stockholders.

Special Meeting Requirements.   Our bylaws provide that special meetings of our stockholders may be called only at the request of our president, our board of directors, or stockholders holding an aggregate of at least 25% of the outstanding shares of our common stock entitled to be voted at such meeting.  Such written request must state the purpose(s) of the meeting and the matters proposed to be acted on at the meeting, and the requesting stockholders must pay us the reasonable estimated cost of preparing and mailing a notice of the meeting to stockholders entitled to vote at the meeting.

No Cumulative Voting.   Our articles of incorporation specifically disallow cumulative voting for directors, which means that the holders of a plurality of the outstanding voting shares can elect all directors then standing for reelection.

Indemnification.   Our articles of incorporation and bylaws provide that we will indemnify our officers and directors against losses, as incurred, in investigations and legal proceedings resulting from their services to us, which may include service in connection with takeover defense measures.

Removal of Directors.   Our bylaws provide that the affirmative vote of the holders of a majority of our shares then entitled to be cast generally for the election of directors is required to remove our directors, either with or without cause.

Authorized but Unissued Shares.   Except as may be required by applicable securities exchange requirements, our authorized but unissued shares of common stock and warrantspreferred stock will be available for future issuance without stockholder approval.  We may use additional shares for a variety of purposes, including future public offerings to acquire 10,500 shares of our common stock at an exercise price of $18.38 per share, which become exercisable on August 2, 2006 and which terminate on February 2, 2010.

(17)    Basso Capital Management, L.P. (“Basso”) is the Investment Managerraise additional capital, to Basso Fund Ltd.  Howard I.  Fischer is a managing member of Basso GP, LLC, the General Partner of Basso,fund acquisitions and as such has investment power and voting control over these securities.  Mr. Fischer disclaims beneficial ownershipemployee compensation.  The existence of these securities. Includes 5,100authorized but unissued shares of common stock and preferred stock could render more difficult or discourage an attempt to obtain control of us by means of a proxy contest, tender offer, merger or otherwise.

Control Share Acquisitions

We are subject to Subtitle 7 of Title 3 of the MGCL, which is referred to as the Maryland Control Share Acquisition Act (the “Act”).  The Act provides that “control shares” of a corporation acquired in a “control share acquisition” will have no voting rights except to the extent approved by a vote of two-thirds of the votes eligible to cast on the matter under the Act.  “Control shares” means shares of stock that, if aggregated with all other shares of stock previously acquired by the acquirer, would entitle the acquirer to exercise voting power in electing directors within one of the following ranges of the voting power:  one-tenth or more but less than one-third, one-third or more but less than a majority, or a majority or more of all voting power.  A “control share acquisition” means the acquisition of control shares, subject to certain exceptions.

If voting rights of control shares acquired in a control share acquisition are not approved at a stockholder’s meeting, then subject to certain conditions and limitations, the issuer may redeem any or all of the control shares for fair value.  If voting rights of such control shares are approved at a stockholder’s meeting and the acquirer becomes entitled to vote a majority of the shares of stock entitled to vote, all other stockholders may exercise appraisal rights.

The above provisions may delay, defer or prevent a takeover attempt, and thereby prevent stockholders of the Company from receiving a “control premium” for their shares.  For example, these provisions may defer or prevent tender offers for our

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common stock or purchases of large blocks, thus limiting the opportunities for the Company’s stockholders to receive a premium for their shares over then prevailing market prices.

Maryland Unsolicited Takeovers Act

Subtitle 8 of Title 3 of the MGCL permits a Maryland corporation with a class of equity securities registered under the Exchange Act and at least three independent directors to elect to be subject, by provision in its articles of incorporation or bylaws or a resolution of its board of directors, to any or all of five provisions:

a classified board;

a two-thirds vote requirement for removing a director;

a requirement that the number of directors be fixed only by vote of directors;

a requirement that a vacancy on the board be filled only by the remaining directors and for the remainder of the full term of the directorship in which the vacancy occurred; and

a majority requirement for the calling of a special meeting of stockholders.

Through provisions in our articles of incorporation and bylaws unrelated to Subtitle 8, we:

vest in the board the exclusive power to fix the number of directors; and

require that vacancies on the board be filled only by the remaining directors, even if the remaining directors do not constitute a quorum, and for the remainder of the full term of the directorship in which the vacancy occurred.


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DESCRIPTION OF WARRANTS

General

We may issue warrants for the purchase of common stock or preferred stock.  Warrants may be offered independently or together with common stock or preferred stock offered by any prospectus supplement and may be attached to or separate from those securities.  While the terms we have summarized below will apply generally to any warrants that we may offer under this prospectus, we will describe in particular the terms of any series of warrants that we may offer in more detail in the applicable prospectus supplement and any applicable free writing prospectus.  The terms of any warrants offered under a prospectus supplement may differ from the terms described below.

We will file as an exhibit to the registration statement of which this prospectus is a part, or will incorporate by reference from another report that we file with the SEC, the form of warrant and/or warrant agreement, which may include a form of warrant certificate, as applicable, that describes the terms of the particular series of warrants we may offer before the issuance of the related series of warrants.  We may issue the warrants under a warrant agreement that we will enter into with a warrant agent to be selected by us.  The warrant agent will act solely as our agent in connection with the warrants and will not assume any obligation or relationship of agency or trust for or with any registered holders of warrants or beneficial owners of warrants.  The following summary of material provisions of the warrants and warrant agreements are subject to, and qualified in their entirety by reference to, all the provisions of the form of warrant and/or warrant agreement and warrant certificate applicable to a particular series of warrants.  We urge you to read the applicable prospectus supplement and any related free writing prospectus, as well as the complete form of warrant and/or the warrant agreement and warrant certificate, as applicable, that contain the terms of the warrants.

The particular terms of any issue of warrants will be described in the prospectus supplement relating to the issue.  Those terms may include:

the title of such warrants;

the aggregate number of such warrants;

the price or prices at which such warrants will be issued;

the currency or currencies (including composite currencies) in which the price of such warrants may be payable;

the terms of the securities purchasable upon exercise of such warrants and the procedures and conditions relating to the exercise of such warrants;

the price at which the securities purchasable upon exercise of such warrants may be purchased;

the date on which the right to exercise such warrants will commence and the date on which such right shall expire;

any provisions for adjustment of the number or amount of securities receivable upon exercise of the warrants or the exercise price of the warrants;

if applicable, the minimum or maximum amount of such warrants that may be exercised at any one time;

if applicable, the designation and terms of the securities with which such warrants are issued and the number of such warrants issued with each such security;

if applicable, the date on and after which such warrants and the related securities will be separately transferable;

information with respect to book-entry procedures, if any;

the terms of any rights to redeem or call the warrants;

United States federal income tax consequences of holding or exercising the warrants, if material; and

any other terms of such warrants, including terms, procedures and limitations relating to the exchange or exercise of such warrants.

Each warrant will entitle its holder to purchase the number of shares of common stock or preferred stock at the exercise price set forth in, or calculable as set forth in, the applicable prospectus supplement.  The warrants may be exercised as set forth in the prospectus supplement relating to the warrants offered.  Unless we otherwise specify in the applicable prospectus supplement, warrants may be exercised at any time up to the close of business on the expiration date set forth in the prospectus supplement relating to the warrants offered thereby.  After the close of business on the expiration date, unexercised warrants will become void.

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We will specify the place or places where, and the manner in which, warrants may be exercised in the form of warrant, warrant agreement or warrant certificate and applicable prospectus supplement.  Upon receipt of payment and the warrant or warrant certificate, as applicable, properly completed and duly executed at the corporate trust office of the warrant agent, if any, or any other office, including ours, indicated in the prospectus supplement, we will, as soon as practicable, issue and deliver the securities purchasable upon such exercise.  If less than all of the warrants (or the warrants represented by such warrant certificate) are exercised, a new warrant or a new warrant certificate, as applicable, will be issued for the remaining amount of warrants.  If we so indicate in the applicable prospectus supplement, holders of the warrants may surrender securities as all or part of the exercise price for warrants.

Prior to the exercise of any warrants to acquire 1,530purchase common stock or preferred stock, holders of the warrants will not have any of the rights of holders of the common stock or preferred stock purchasable upon exercise, including the right to vote or to receive any payments of dividends or payments upon our liquidation, dissolution or winding up on the common stock or preferred stock purchasable upon exercise, if any.

Outstanding Warrants

As of September 7, 2018, there were 4,682,435 outstanding warrants to purchase shares of our common stock at an exercise price of $18.38 per share, which become exercisable on August 2, 2006 and which terminate on February 2, 2010.stock.


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(18)DESCRIPTION OF UNITS    Basso Capital Management, L.P. (“Basso”)

The following description, together with the additional information we may include in any applicable prospectus supplement, summarizes the material terms and provisions of the units that we may offer under this prospectus.  While the terms we have summarized below will apply generally to any units that we may offer under this prospectus, we will describe the particular terms of any series of units in more detail in the applicable prospectus supplement and any related free writing prospectus.  The terms of any units offered under a prospectus supplement may differ from the terms described below.  However, no prospectus supplement will fundamentally change the terms that are set forth in this prospectus or offer a security that is not registered and described in this prospectus at the Investment Managertime of its effectiveness.

We will file as an exhibit to Basso Multi-Strategy Holding Fund, Ltd.  Howard I.  Fischerthe registration statement of which this prospectus is a managing memberpart, or will incorporate by reference from another report we file with the SEC, the form of Basso GP, LLC,unit agreement that describes the General Partnerterms of Basso,the series of units we may offer under this prospectus, and any supplemental agreements, before the issuance of the related series of units.  The following summaries of material terms and provisions of the units are subject to, and qualified in their entirety by reference to, all the provisions of the unit agreement and any supplemental agreements applicable to a particular series of units.  We urge you to read the applicable prospectus supplement and any related free writing prospectus, as such has investment powerwell as the complete unit agreement and voting control over these securities.  Mr. Fischer disclaims beneficial ownershipany supplemental agreements that contain the terms of these securities. Includes 18,900the units.

General

We may issue units comprised of shares of common stock and warrants to acquire 5,670 shares of our common stock at an exercise price of $18.38 per share, which become exercisable on August 2, 2006 and which terminate on February 2, 2010.

(19)    Basso Capital Management, L.P. (“Basso”) is the Investment Manager to Basso Private Opportunities Holding Fund, Ltd.  Howard I.  Fischer is a managing member of Basso GP, LLC, the General Partner of Basso, and as such has investment power and voting control over these securities.  Mr. Fischer disclaims beneficial ownership of these securities. Includes 6,000 shares of commonor preferred stock and warrants in any combination.  Each unit will be issued so that the holder of the unit is also the holder of each security included in the unit.  Thus, the holder of a unit will have the rights and obligations of a holder of each included security.  The unit agreement under which a unit is issued may provide that the securities included in the unit may not be held or transferred separately, at any time or at any time before a specified date.

We will describe in the applicable prospectus supplement the terms of the series of units, including, but not limited to:

the designation and terms of the units and of the securities comprising the units, including whether and under what circumstances those securities may be held or transferred separately;

any provisions of the governing unit agreement that differ from those described below; and

any provisions for the issuance, payment, settlement, transfer or exchange of the units or of the securities comprising the units.

The provisions described in this section, as well as those described under “Description of Common Stock and Preferred Stock” and “Description of Warrants” will apply to acquire 1,800 shares of oureach unit and to any common stock, preferred stock or warrant included in each unit, respectively.

Issuance in Series

We may issue units in such amounts and in numerous distinct series as we determine.

Enforceability of Rights by Holders of Units

We may enter into unit agreements with a unit agent.  Each unit agent will act solely as our agent under the applicable unit agreement and will not assume any obligation or relationship of agency or trust with any holder of any unit.  A single bank or trust company may act as unit agent for more than one series of units.  A unit agent will have no duty or responsibility in case of any default by us under the applicable unit agreement or unit, including any duty or responsibility to initiate any proceedings at law or otherwise, or to make any demand upon us.  Any holder of a unit may, without the consent of the related unit agent or the holder of any other unit, enforce by appropriate legal action its rights as holder under any security included in the unit.

We, the unit agents and any of their agents may treat the registered holder of any unit certificate as an exercise priceabsolute owner of $18.38 per share, which become exercisable on August 2, 2006the units evidenced by that certificate for any purpose and which terminate on February 2, 2010.

(20)    Includes 20,000 shares of common stock and warrants to acquire 6,000 shares of our common stock at an exercise price of $18.38 per share, which become exercisable on August 2, 2006 and which terminate on February 2, 2010.

(21)    Includes 15,000 shares of common stock and warrants to acquire 4,500 shares of our common stock at an exercise price of $18.38 per share, which become exercisable on August 2, 2006 and which terminate on February 2, 2010.

(22)    Includes 40,000 shares of common stock and warrants to acquire 12,000 shares of our common stock at an exercise price of $18.38 per share, which become exercisable on August 2, 2006 and which terminate on February 2, 2010.

(23)    Includes shares underlying warrants to purchase 18,700 shares at an exercise price of  $13.76 per share until February 2, 2009 and shares underlying warrants to purchase 5,610 shares at an exercise price of  $19.30 per share until February 2, 2009.   SG Cowen & Co., LLC (“SG Cowen”) acted as the lead placement agent inperson entitled to exercise the Offering and received these warrants as compensation for services rendered.rights attaching to the units so requested, despite any notice to the contrary.


(24)    Includes shares underlying warrants to purchase 3,300 shares at an exercise price of $13.76 per shares until February 2, 2009 and includes shares underlying warrants to purchase 990 shares at an exercise price of $19.30 per share until February 2, 2009.  Montgomery 2006-1 Partnership is an affiliate of Montgomery & Co., LLC, who acted as a placement agent in the Offering and received these warrants as compensation for services rendered.-10-

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PLAN OF DISTRIBUTION

The selling stockholdersWe may from time to time, sell any or all of their shares of common stock on any stock exchange, market or trading facility on which the shares are traded orour securities in private transactions.  These sales may be at fixed or negotiated prices.  The selling stockholders may use any one or more of the following methods when selling shares:ways from time to time:

through agents;

ordinary brokerage transactions and transactions to or through underwriters;

through brokers or dealers;

in which“at the broker-dealer solicits purchasers;

block trades in whichmarket offerings” within the broker-dealer will attemptmeaning of Rule 415(a)(4) under the Securities Act, to sell the shares as agent but may position and resellor through a portion of the block as principal to facilitate the transaction;

purchases by a broker-dealer as principal and resale by the broker-dealer for its account;

market maker or into an existing trading market, on an exchange distribution in accordance with the rules of the applicable exchange;or otherwise;

privately negotiated transactions;

short sales;

broker-dealers may agree with the selling stockholdersdirectly by us to sellpurchasers, including through a specified number of such shares at a stipulated price per share;specific bidding, auction or other process; or

through a combination of any suchof these methods of sale; andsale.

any other method permitted pursuant to applicable law.

 

The selling stockholdersapplicable prospectus supplement will contain the terms of the transaction, the name or names of any underwriters, dealers, agents and the respective amounts of securities underwritten or purchased by them, the initial public offering price of the securities, and the applicable agent’s commission, dealer’s purchase price or underwriter’s discount.  Any dealers and agents participating in the distribution of the securities may be deemed to be underwriters, and compensation received by them on resale of the securities may be deemed to be underwriting discounts.

Any initial offering price, dealer purchase price, discount or commission may be changed from time to time.

The securities may be distributed from time to time in one or more transactions, at negotiated prices, at a fixed price or fixed prices (that may be subject to change), at market prices prevailing at the time of sale, at various prices determined at the time of sale or at prices related to prevailing market prices.

Offers to purchase securities may be solicited directly by us or by agents designated by us from time to time.  Unless otherwise indicated in the prospectus supplement, any such agent will use its commercially reasonable efforts to solicit purchases for the period of its appointment or to sell securities on a continuing basis.  Agents may receive compensation in the form of commissions, discounts or concessions from us.  Agents may also receive compensation from the purchasers of the securities for whom they sell shares under Rule 144 underas principals.  Each particular agent will receive compensation in amounts negotiated in connection with the sale, which might be in excess of customary commissions.  Any such agent may be deemed to be an underwriter, as that term is defined in the Securities Act, if available, rather than under this prospectus.

Broker-dealers engagedof the securities so offered and sold.  Accordingly, any commission, discount or concession received by the selling stockholders may arrange for other brokers-dealers to participate in sales.  Broker-dealers may receive commissions or discounts from the selling stockholders (or, ifthem and any broker-dealer acts as agent for the purchaser of shares, from the purchaser) in amounts to be negotiated.  The selling stockholders do not expect these commissions and discounts to exceed what is customary in the types of transactions involved.  Any profitsprofit on the resale of shares of common stockthe securities purchased by a broker-dealer acting as principal mightthem may be deemed to be underwriting discounts or commissions under the Securities Act.  Discounts, concessions, commissions and similar selling expenses, if any, attributable to the sale of shares will be borne by a selling stockholder.  The selling stockholders may agree to indemnify any agent, dealer or broker-dealer that participates in transactions involving sales of the shares if liabilities are imposed on that person under the Securities Act.

The selling stockholders may from time to time pledge or grant a security interest in some or all of the shares of common stock owned by them and, if they default in the performance of their secured obligations, the pledgees or secured parties may offer and sell the shares of common stock from time to time under this prospectus after we have filed a supplement to this prospectus under Rule 424(b)(3) or other applicable provision of the Securities Act of 1933 supplementing or amending the list of selling stockholders to include the pledgee, transferee or other successors in interest as selling stockholders under this prospectus.

The selling stockholders also may transfer the shares of common stock in other circumstances, in which case the transferees, pledgees or other successors in interest will be the selling beneficial owners for purposes of this prospectus and may sell the shares of common stock from time to time under this prospectus after we have filed a supplement to this prospectus under Rule 424(b)(3) or other applicable provision of the Securities Act of 1933 supplementing or amending the list of selling stockholders to include the pledgee, transferee or other successors in interest as selling stockholders under this prospectus.

The selling stockholders and any broker-dealers or agents that are involved in selling the shares of common stock may be deemed to be “underwriters” within the meaning of the Securities Act in

16



connection with such sales.  In such event, any SECs received by such broker-dealers or agents and any profit on the resale of the shares of common stock purchased by them may be deemed to be underwriting SECs or discounts under the Securities Act.

We are required to pay all fees and expenses incident to the registration of the shares of common stock.  We have agreed to indemnify the selling stockholders against certain losses, claims, damages and liabilities, including liabilities under the Securities Act.

The selling stockholders have advised us that they have not entered into any agreements, understandings or arrangements with any underwriters or broker-dealers regarding the sale of their securities.  As of the date of this prospectus, there are no special selling arrangements between any broker-dealer or other person and us.  No period of time has been fixed within which the securities will be offered and sold.

If underwriters are utilized in the sale of any securities in respect of which this prospectus is being delivered, such securities will be acquired by the underwriters for their own account and may be resold from time to time in one or more transactions, including negotiated transactions, at fixed public offering prices or at varying prices determined by the underwriters at the time of sale.  Securities may be offered to the public either through underwriting syndicates represented by managing underwriters or directly by one or more underwriters.  If any underwriter or underwriters are utilized in the sale of securities, unless otherwise indicated in the applicable prospectus supplement, the obligations of the underwriters are subject to certain conditions precedent, and the underwriters will be obligated to purchase all such securities if they purchase any of them.

If a dealer is utilized in the sale of the securities in respect of which this prospectus is delivered, we will sell such securities to the dealer as principal.  The dealer may then resell such securities to the public at varying prices to be determined by such dealer at the time of resale.  Transactions through brokers or dealers may include block trades in which brokers or dealers will attempt to sell shares as agent but may position and resell as principal to facilitate the transaction or in cross trades, in which the same broker or dealer acts as agent on both sides of common stock, nor is therethe trade.  Any such dealer may be deemed to be an underwriter, as such term is defined in the Securities Act, of the securities so offered and sold.

Offers to purchase securities may be solicited directly by us, and the sale thereof may be made by us, directly to institutional investors or coordinating broker actingothers who may be deemed to be underwriters within the meaning of the Securities Act with respect to any resale thereof.

-11-


Agents, underwriters and dealers may be entitled under relevant agreements with us to indemnification by us against certain liabilities, including liabilities under the Securities Act, or to contribution with respect to payments which such agents, underwriters and dealers may be required to make in respect thereof.  The terms and conditions of any indemnification or contribution will be described in the applicable prospectus supplement.

Underwriters, broker-dealers or agents may receive compensation in the form of commissions, discounts or concessions from us.  Underwriters, broker-dealers or agents may also receive compensation from the purchasers of shares for whom they act as agents or to whom they sell as principals, or both.  Compensation as to a particular underwriter, broker-dealer or agent will be in amounts to be negotiated in connection with a proposed saletransactions involving shares and might be in excess of shares ofcustomary commissions.  In effecting sales, broker-dealers engaged by us may arrange for other broker-dealers to participate in the resales.

Any securities offered other than common stock by any selling stockholder.  If we are notified by any selling stockholder that any material arrangement has been entered into withwill be a broker-dealer fornew issue and, other than the sale of shares of common stock, if required,which is listed on The Nasdaq Capital Market, will have no established trading market.  We may elect to list any series of securities on an exchange, and in the case of the common stock, on any additional exchange, but, unless otherwise specified in the applicable prospectus supplement and/or other offering material, we shall not be obligated to do so.  It is possible that one or more underwriters may make a market in a class or series of securities, but the underwriters will file a supplementnot be obligated to this prospectus.  Ifdo so and may discontinue any market making at any time without notice.  No assurance can be given as to the selling stockholders use this prospectusliquidity of, or the trading market for, any sale of the sharessecurities.

Agents, underwriters and dealers may engage in transactions with, or perform services for, us or our subsidiaries in the ordinary course of common stock, they will be subject to the prospectus delivery requirements of the Securities Act.business.

The anti-manipulation rules ofAny underwriter may engage in overallotment, stabilizing transactions, short covering transactions and penalty bids in accordance with Regulation M under the Securities Exchange Act of 1934 may apply toAct.  Overallotment involves sales of our common stock and activitiesin excess of the offering size, which create a short position.  Stabilizing transactions permit bids to purchase the underlying security so long as the stabilizing bids do not exceed a specified maximum.  Short covering transactions involve purchases of the securities in the open market after the distribution is completed to cover short positions.  Penalty bids permit the underwriters to reclaim a selling stockholders.concession from a dealer when the securities originally sold by the dealer are purchased in a covering transaction to cover short positions.  Those activities may cause the price of the securities to be higher than it would otherwise be.  If commenced, the underwriters may discontinue any of the activities at any time.  An underwriter may carry out these transactions on The Nasdaq Capital Market, in the over-the-counter market or otherwise.

The place and time of delivery for securities will be set forth in the accompanying prospectus supplement.

LEGAL MATTERS

The validity of the issuance of the shares of common stocksecurities being offered hereby and other legal matters in connection herewith have beenby this prospectus will be passed upon for us by Patton BoggsPerkins Coie LLP.  PartnersIf the validity of Patton Boggs LLP own an aggregate of 22,000 shares ofany securities is also passed upon by counsel for any underwriters, dealers or agents, that counsel will be named in the Company’s common stock.prospectus supplement relating to that specific offering.

EXPERTS

The consolidated financial statements of Cool Holdings, Inc. (formerly known as InfoSonics Corporation appearingCorporation) incorporated in ourthis prospectus by reference to the Annual Report on Form 10-K for the fiscal yearsyear ended December 31, 2004 and 20032017 have been audited by Singer Lewak Greenbaum & Goldstein LLP, independent auditors, as set forth in their report included in the Annual Report andso incorporated in this prospectus by reference.  The foregoing financial statements are incorporated in this prospectus by reference in reliance uponon the report of theSingerLewak LLP, an independent auditors and uponregistered public accounting firm, given on the authority of thatsuch firm as experts in auditing and accounting.

SECURITIES AND EXCHANGE COMMISSION
POSITION ON CERTAIN INDEMNIFICATION

The General Corporation Lawaudited consolidated financial statements of Cooltech Holding Corp. for the Stateyear ended December 31, 2016, and the year ended December 31, 2017 (which also includes, in Note 6, pro forma results of Maryland (the “Maryland Code”) providesoperations with respect to OneClick License, LLC, OneClick International, LLC, and OneClick Argentino S.R.L., for mandatory indemnification against reasonable expenses incurredthe nine months ended September 30, 2017, as required by directors and officersArticle 11 of a corporationRegulation S-X) incorporated in connection with an action, suit or proceeding broughtthis prospectus by reason of their position as a director or officer if they are successful, on the merits or otherwise, in defense of the proceeding. The Maryland Code also allows a corporation to indemnify directors or officers in such proceedings if the director or officer acted in good faith, in a manner he reasonably believed to be in or not opposedreference to the best interests of the corporation, and, in the case of a criminal proceeding, he had no reasonable cause to believe that his conduct was unlawful.

The Maryland Code permits a corporation to expand the rights to indemnification by a provision in its bylaws, by an agreement, by resolution of stockholders or directors not involved in the proceeding, or otherwise. However, a corporation may not indemnify a director or officer if the

17



proceeding was one by or on behalf of the corporation and in the proceeding the director or officer is adjudged to be liable to the corporation. Our Bylaws provide that we are required to indemnify our directors and officers to the fullest extent permitted by law, including those circumstances in which indemnification would otherwise be discretionary.

In addition to the general indemnification described above, we have adopted, in our articles of incorporation, a provision under the Maryland Code that eliminates and limits certain personal liability of directors and officers for monetary damages for breaches of the fiduciary duty of care.

Insofar as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers or persons controlling the Company pursuant to the foregoing provisions, we have been informed that, in the opinion of the SEC, such indemnification is against public policy as expressed in the Securities Act and is therefore unenforceable.

WHERE YOU CAN FIND MORE INFORMATION

This prospectus constitutes a part of a registration statementCurrent Report on Form S-3 we8-K/A, filed with the SEC underon May 21, 2018, have been so incorporated in reliance on the Securities Act.  This prospectus does not contain allreport of MNP LLP, an independent registered public accounting firm, given on the information set forthauthority of such firm as experts in auditing and accounting.

The audited financial statements of OneClick International, LLC for the registration statement and exhibits thereto, and statements includedyear ended December 31, 2016, incorporated in this prospectus asby reference to the content of any contract or other document referredProspectus filed pursuant to are not necessarily complete.  For further information, please review the registration statement and the exhibits and schedulesRule 424(b)(3), filed with the registration statement.

We are subject to the informational requirementsSEC on February 12, 2018, which forms part of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and we file quarterly reports, current reports, proxy statements and other informationRegistration Statement on Form S-4/A, filed with the SEC on February 9, 2018, have been so incorporated in accordance withreliance on Item 11 of Form S-3 and on the Exchange Act.  These reports, proxyreport of MNP LLP, an independent registered public accounting firm, given on the authority of such firm as experts in auditing and accounting.

-12-


The audited financial statements of OneClick Argentino S.R.L for the year ended December 31, 2016, and other information can be inspected and copied at the publicyear ended December 31, 2015, incorporated in this prospectus by reference facilities maintained byto the SEC at 100 F Street, N.E.Prospectus filed pursuant to Rule 424(b)(3), Washington, D.C. 20549.  In addition, these materials filed electronically by the Company with the SEC are available aton February 12, 2018, which forms part of the SEC’s World Wide Web site at http://www.sec.gov.  The SEC’s World Wide Web site contains reports, proxy and information statements, and other information regarding issuers that file electronicallyRegistration Statement on Form S-4/A, filed with the SEC.  Information aboutSEC on February 9, 2018, have been so incorporated in reliance on Item 11 of Form S-3 and on the operationreport of BDO - Becher & Asociados S.R.L., an independent registered public accounting firm, given on the SEC’s public reference facilities may be obtained by calling the SEC at 1-800-SEC-0330.authority of such firm as experts in auditing and accounting.

 

INCORPORATION OF INFORMATION WE FILE WITH THE SEC

INCORPORATED BY REFERENCE

The SEC allows us to “incorporate by reference” into this prospectus the information we file with them, which means:  incorporated documents are considered part of this prospectus;the SEC.  This means that we can disclose important information to you by referring you to those documents; and information we file withdocuments.  Any statement contained in a document incorporated by reference in this prospectus shall be deemed to be modified or superseded for purposes of this prospectus to the SEC will automatically update and supersedeextent that a statement contained herein, or in any subsequently filed document, which also is incorporated by reference herein, modifies or supersedes such earlier statement.  Any such statement so modified or superseded shall not be deemed, except as so modified or superseded, to constitute a part of this incorporated information.

prospectus.

We hereby incorporate by reference into this prospectus the following documents listed below, whichthat we have filed with the SEC under the Exchange Act:Act (File No. 001-32217):

                  Ourour Annual ReportReports on Form 10-K for the fiscal year ended December 31, 2004;2017, filed with the SEC on March 8, 2018;

                  Ourour Quarterly Reports on Form 10-Q for the quartersquarterly period ended March 31, 2005,2018 and June 30, 2005, and September 30, 2005, respectively;

                  Our Current Reports on Form 8-K2018, filed with the SEC on eachMay 21, 2018 and August 14, 2018;

our Current Reports on Forms 8-K or 8-K/A, as applicable, filed with the SEC on January 5, 2018, January 8, 2018, January 22, 2018, February 13, 2018, March 7, 2018, March 12, 2018, March 28, 2018, April 9, 2018, April 17, 2018, May 21, 2018, June 6, 2018, June 14, 2018, July 9, 2018, August 16, 2018 and August 20, 2018; and

the description of our common stock contained in our Registration Statement on Form 8-A, filed with the SEC on August 11, 2004, September 10, 2004, October 19, 2004, November 3, 2004, November 22, 2004, January 25, 2005, February 1, 2005, April 22, 2005, August 11, 2005, August 19, 2005, August 25, 2005;2, 2006, including any amendment or report filed for the purpose of updating such description.

 

18In reliance on Item 11 of Form S-3, we hereby incorporate by reference into this prospectus the following documents that we have filed with the SEC under the Securities Act (File No. 001-32217):


the audited financial statements of OneClick International, LLC for the year ended December 31, 2016, and related report of MNP LLP, and the unaudited financial statements of OneClick International, LLC for the nine months ended September 30, 2017, each filed as part of our Prospectus filed pursuant to Rule 424(b)(3), filed with the SEC on February 12, 2018, which forms part of the Registration Statement on Form S-4/A, filed with the SEC on February 9, 2018.  The financial statements of OneClick International, LLC for the nine months ended September 30, 2017 were not audited and therefore only unaudited versions of such financial statements are available to be incorporated by reference into this prospectus; and


October 5, 2005, October 13, 2005, November 29, 2005,the audited financial statements of OneClick Argentino S.R.L for the year ended December 19, 2005, January 6, 2006, January31, 2016, and the year ended December 31, 2015, and the unaudited financial statements of OneClick Argentino S.R.L. for the nine months ended September 30, 20062017, each filed as part of our Prospectus filed pursuant to Rule 424(b)(3), filed with the SEC on February 12, 2018, which forms part of the Registration Statement on Form S-4/A, filed with the SEC on February 9, 2018.  The financial statements of OneClick Argentino S.R.L for the nine months ended September 30, 2017 were not audited and February 2, 2006, respectively.

                  Our Proxy Statement dated July 11, 2005 concerning our Annual Meetingtherefore only unaudited versions of Stockholders held on August 5, 2005;such financial statements are available to be incorporated by reference into this prospectus.

                  Any reports filed under SectionsAll documents that we file with the SEC pursuant to Section 13(a), 13(c), 14 or 15(d) of the Securities Exchange Act (other than Current Reports on Form 8-K, or portions thereof, furnished under Item 2.02 or 7.01 of 1934 subsequentForm 8-K) (i) after the initial filing date of the registration statement of which this prospectus forms a part and prior to the effectiveness of such registration statement and (ii) after the date of this prospectus and prior to the termination of the offering made undershall be deemed to be incorporated by reference in this prospectus;prospectus from the date of filing of the documents, unless we specifically provide otherwise.  Information that we file with the SEC will automatically update and

                  The description of our common stock may replace information previously filed with the SEC.  To the extent that any information contained in ourany Current Report on Form S-1 (File No. 333-112339)8-K or any exhibit thereto, was or is furnished to, rather than filed with the SEC, on January 30, 2004 and as subsequently amended on each of March 26, 2004, April 16, 2004, May 10, 2004, May 13, 2004, May 19, 2004 and May 20, 2004.such information or exhibit is specifically not incorporated by reference.

-13-


 

WeUpon written or oral request made to us at the address or telephone number below, we will, at no cost to the requester, provide without charge to each person, including any beneficial owner, to whom a copy of this prospectus has beenis delivered, upon written or oral request, a copy of any or all of the documents referred to aboveinformation that havehas been incorporated by reference in this prospectus (other than an exhibit to a filing, unless that exhibit is specifically incorporated by reference into that filing), but not delivered with this prospectus.  Requests for copies shouldYou may also access this information on our website at www.infosonics.com by viewing the “SEC Filings” subsection of the “Investors” menu.  No additional information on our website is deemed to be directed to Jeffrey Klausner, InfoSonics Corporation, part of or incorporated by reference into this prospectus.  We have included our website address in this prospectus solely as an inactive textual reference. 5880 Pacific Center Blvd, San Diego, CA  92121, telephone (858) 373-1600.

Cool Holdings, Inc.

48 NW 25th Street

Miami, FL 33127

Attn:  Investor Relations

(786) 675-5246

 

19WHERE YOU CAN FIND MORE INFORMATION



As permitted by SEC rules, this prospectus omits certain information and exhibits that are included in the registration statement of which this prospectus forms a part.  Since this prospectus may not contain all of the information that you may find important, you should review the full text of these documents.  If we have filed a contract, agreement or other document as an exhibit to the registration statement of which this prospectus forms a part, you should read the exhibit for a more complete understanding of the document or matter involved.  Each statement in this prospectus, including statements incorporated by reference as discussed above, regarding a contract, agreement or other document is qualified in its entirety by reference to the actual document.

We are subject to the information reporting requirements of the Exchange Act, and, in accordance with these requirements, we file annual, quarterly and current reports, proxy statements, and other information with the SEC.  You may inspect, read and copy the reports and other information we file with the SEC at the SEC’s Public Reference Room located at 100 F Street, N.E., Washington, D.C. 20549.  You may obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330.  The SEC also maintains an internet website at www.sec.gov that contains our filed reports, proxy and information statements, and other information that we file electronically with the SEC.  Additionally, we make these filings available, free of charge, on our website at www.infosonics.com in the “SEC Filings” subsection of the “Investors” menu as soon as reasonably practicable after we electronically file such materials with, or furnish them to, the SEC.  The information on our website, other than these filings, is not, and should not be, considered part of this prospectus, is not incorporated by reference into this prospectus, and should not be relied upon in connection with making any investment decision with respect to our securities.

 

-14-


Cool Holdings, Inc.

$25,000,000

Common Stock
Preferred Stock
Warrants
Units

PROSPECTUS

_______ __, 2018


PART II

INFORMATION NOT REQUIRED IN PROSPECTUS

Item 14.   Other Expenses of Issuance and Distribution.

The following is an itemization of all expenses (subject to future contingencies) incurred or to be incurred by the Registrant in connection with the registrationissuance and distribution of the securities being offered.  The selling stockholders will not pay any ofregistered are set forth in the following expenses.table (all amounts other than the registration fee are estimated):

Type of Expense

 

Amount

 

Registration Fees

 

$

2,119

 

Transfer Agent Fees

 

$

1,000

 

Costs of Printing and Engraving

 

$

2,500

*

Legal Fees

 

$

10,000

*

Accounting Fees

 

$

5,000

*

Total

 

$

20,619

 

Amount
to be Paid

Registration fee – Securities and Exchange Commission

$3,113

Accountants' fees and expenses

**

Legal fees and expenses

**

Stock exchange listing fees

**

Printing expenses

**

Miscellaneous

**

Total

$3,113

 


**

These fees and expenses are calculated based on the securities offered and the number of issuances and, accordingly, cannot be estimated at this time.  They will be provided as applicable by amendment or in a filing with the Securities and Exchange Commission (the SEC) pursuant to the Exchange Act of 1934, as amended, and incorporated herein by reference or reflected in the applicable prospectus supplement.

*estimated

 

Item 15.   Indemnification of Directors and Officers.

The registrant’s articles of incorporation limit the liability of its directors and officers to the fullest extent permitted by the Maryland General Corporation Law (as amended from time to time, or the MGCL) and, together with the registrant’s bylaws, as amended, requires the registrant to indemnify its present and former directors and any individual who, while its director and at the request of the Stateregistrant, serves or has served another corporation, partnership, joint venture, trust, employee benefit plan or other enterprise as a director, officer, partner or trustee, against liabilities to the fullest extent allowed under Maryland law.  The registrant’s articles of Maryland allows corporationsincorporation and bylaws permit the registrant, with the approval of its board of directors, to indemnify any person who wasand advance or is a party or is threatened to be made a party toreimburse the expenses of any threatened, pending or completed action or suit or proceeding, whether civil, criminal, administrative or investigative, by reason of the fact that he or she is or was a director, officer, employee or agent of the registrant or of any predecessor, to the maximum extent permitted by the MGCL.

The MGCL requires a corporation or is or was serving at(unless its articles of incorporation provide otherwise, which the request of the corporation asregistrant’s do not) to indemnify a director or officer employee, partner, trustee,who has been successful, on the merits or agentotherwise, in the defense of another

II-1



any proceeding to which he or she is made a party by reason of his or her service in that capacity.  The MGCL permits a corporation partnership, joint venture, trust,to indemnify its present and former directors and officers, among others, against judgments, penalties, fines, settlements and reasonable expenses actually incurred by them in connection with any proceeding to which they may be made a party by reason of their service in those or other enterprise or employee benefit plan,capacities unless it is established that:

                  thean act or omission of the director or officer was material to the matter giving rise to the proceeding and either was committed in bad faithand:

(1)

was committed in bad faith; or

(2)

was the result of active and deliberate dishonesty;

the director or was the result of active and deliberate dishonesty;

                  the personofficer actually received an improper personal benefit in money, property or services; or

in the case of any criminal proceeding, the persondirector or officer had reasonable cause to believe that the act or omission was unlawful.

 

Under Maryland law, indemnification may be provided against judgments, penalties, fines, settlements and reasonable expenses actually incurred by the person in connection with the proceeding. The indemnification may be provided, however, only if authorized for a specific proceeding after a determination has been made that indemnification is permissibleHowever, under the circumstances because the person met the applicable standard of conduct. This determination is required to be made:

                  by the board of directors byMGCL, a majority vote ofMaryland corporation may not indemnify for an adverse judgment in a quorum consisting of directors not, at the time, parties to the proceeding or, if a quorum cannot be obtained, then by a majority vote of a committee of the board consisting solely of two or more directors not, at the time, parties to the proceeding and who a majority of the board of directors designated to act in the matter;

                  by special legal counsel selected by the board or board committee by the vote set forth above, or, if such vote cannot be obtained, by a majority of the entire board; or

                  by the stockholders.

If the proceeding is onesuit by or in the right of the corporation or for a judgment of liability on the basis that personal benefit was improperly received, unless in either case a court orders indemnification, may not be provided asand then only for expenses.  In addition, the MGCL permits a corporation to any proceeding in which the person is found liable to the corporation.

A Maryland corporation may pay, before final disposition, theadvance reasonable expenses including attorneys’ fees, incurred by a director, officer, employee or agent in defending a proceeding. Under Maryland law, expenses may be advanced to a director or officer whenupon the corporation’s receipt of:

a written affirmation by the director or officer gives a written affirmation of his or her good faith belief that he or she has met the standard of conduct necessary for indemnification by the corporation; and

a written undertaking to the corporationby him or her or on his or her behalf to repay the amounts advancedamount paid or reimbursed by the corporation if it is ultimately determined that he or she isthe standard of conduct was not entitled to indemnification. Maryland law does not require that the undertaking be secured, and the undertaking may be accepted without reference to the financial ability of the director or officer to repay the advance. A Maryland corporation is required to indemnify the reasonable expenses of any director who has been successful, on the merits or otherwise, in defense of a proceeding. The determination as to reasonableness of expenses is required to be made in the same manner as required for indemnification.met.


 

Under Maryland law,The registrant’s bylaws, as amended, obligate the indemnification and advancement of expenses provided by statute are not exclusive of any other rights to which a person who is not a director seeking indemnification or advancement of expenses may be entitled under any charter, bylaw, agreement, vote of stockholders, vote of directors or otherwise.

Our Articles of Incorporation provide that we shall indemnify each director or officer:

II-2



registrant, to the fullest extent permitted by the General Corporation LawMaryland law in effect from time to time, without requiring a preliminary determination of the Stateultimate entitlement to indemnification, to pay or reimburse reasonable expenses in advance of Maryland,final disposition of a proceeding to:

any present or any similar provision or provisions of applicable law atformer director who is made a party to the time in effect, in connection with any threatened, pending or completed action, suit or proceeding whether civil, criminal, administrative or investigative, by reason of his or her service in that capacity; or

make any individual who, while its director and at the fact that heregistrant’s request, serves or she ishas served another corporation, partnership, joint venture, trust, employee benefit plan or was at any time a director or officer, or is or was at any time serving at our requestother enterprise as a director, officer, employee, agentpartner or trustee of another corporation, partnership, limited liability company, joint venture, trust, other enterprise or employee benefit plan; and

who is made a party to the fullest extent permitted by the common law and by any statutory provision other than the General Corporation Law of the State of Maryland in connection with any threatened, pending or completed action, suit or proceeding whether civil, criminal, administrative or investigative, by reason of the facthis or her service in that he or she is or was at any time a director or officer, or is or was at any time serving at our request as a director, officer, employee, agent or trustee of another corporation, partnership, limited liability company, joint venture, trust, other enterprise or employee benefit plan.capacity.

 

Additionally, our ArticlesInsofar as the foregoing provisions permit indemnification of Incorporation providedirectors, officers or persons controlling the registrant for liability arising under the Securities Act of 1933, as amended, the registrant has been informed that, we may indemnify any of our employees or agents toin the fullest extent permitted by the General Corporation Lawopinion of the State ofSEC, this indemnification is against public policy as expressed in the Securities Act and is, therefore, unenforceable.

The MGCL permits a Maryland or any similar provision or provisions of applicable law at the time in effect, in connection with any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative, by reason of the fact that he or she is or was at any time our employee or agent, or is or was at any time serving at our request as a director, officer, employee, agent or trustee of another corporation partnership, limited liability company, joint venture, trust, other enterprise or employee benefit plan.

Reasonable expenses incurred in defending any action, suit or proceeding described above shall be paid by the corporation in advance of the final disposition of such action, suit or proceeding upon receipt of an undertaking by or on behalf of such director, officer or employee to repay such amount to the corporation if it shall ultimately be determined that he or she is not entitled to be indemnified by us.

In addition to the general indemnification described above, Maryland law permits corporations to include anyin its articles of incorporation a provision expanding or limiting the liability of its directors and officers to the corporation orand its stockholders for money damages but may not include any provision that restricts or limits theexcept for liability resulting from actual receipt of its directors or officers to the corporation or its stockholders for the following:

                  to the extent that it is proved that the person actually received an improper benefit or profit in money, property or services for the amount of the benefit or profit in money, property or services actually received; or

                  to the extent that a judgment or other final adjudication adverse to the person is entered in a proceeding based on a finding in the proceeding that the person’s action, or failure to act, was the result of active and deliberate dishonesty and wasestablished by a final judgment as being material to the cause of action adjudicatedaction.  The registrant’s articles of incorporation contain such a provision which eliminates such liability to the maximum extent permitted by Maryland law.

The foregoing summaries are necessarily subject to the complete text of the MGCL, the registrant’s articles of incorporation and bylaws, as amended, and the arrangements referred to above and are qualified in the proceeding.

their entirety by reference thereto.

We have adopted, in our charter,maintain a provision that eliminatesdirectors’ and limits the personalofficers’ liability of each of ourinsurance policy.  The policy insures directors and officers to the full extent permitted by the laws of the State of Maryland.

We also currently have liability insurance for ouragainst unindemnified losses arising from certain wrongful acts in their capacities as directors and officers and reimburses us for those losses for which we have lawfully indemnified the directors and officers.  The policy contains various exclusions.

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Item 16.   Exhibits.Exhibits

The list of exhibits in the Exhibit Index to this registration statement is incorporated herein by reference.

Exhibit
No.

Description

5.1*

 

Opinion of Patton Boggs LLP concerning the legality of the securities being registered.Description

1.1

 

Form of Underwriting Agreement (*)

10.13.1

 

Securities Purchase Agreement. Incorporated by reference from Registrant’s Current Report on Form 8-K filed on February 2, 2006.Articles of Incorporation, as amended (+)

3.2

 

Bylaws, as amended (+)

10.24.1

Articles Supplementary of 0% Series A Convertible Preferred Stock (+)

4.2

Form of Common Stock Certificate (1)

4.3

Form of Preferred Stock Certificate (*)

4.4

 

Form of Warrant Agreement. Incorporated by reference from Registrant’s Current Report on Form 8-K filed on February 2, 2006.(*)

4.5

 

Form of Warrant Agreement (*)

23.1*4.6

 

ConsentForm of Patton Boggs LLP (included in Opinion in Exhibit 5.1).Unit Agreement (*)

5.1

 

Opinion of Perkins Coie LLP (+)

23.2*23.1

 

Consent of Singer Lewak Greenbaum & GoldsteinSingerLewak LLP (+)

23.2

 

Consent of MNP LLP for Cooltech Holding Corp. Financial Statements(+)

23.3

Consent of MNP LLP for OneClick International LLC Financial Statements (+)

23.4

Consent of MDO – Becher & Asociados S.R.L. (+)

23.5

Consent of Perkins Coie LLP (included in Exhibit 5.1)

24.1

 

Form of Power of Attorney (included in the (contained on signature page to the Registration Statement)page)


*Filed herewith______________

(1)Incorporated by reference to the Company’s Registration Statement on Form S-1, filed on January 30, 2004.

 

Item 17.  Undertakings.


 

(a)(*)The undersigned registrant hereby undertakes:To be filed by amendment or as an exhibit to a filing with the SEC under Section 13 or 15(d) of the Securities Exchange Act of 1934 and incorporated by reference in connection with the offering of securities to the extent required for any such offering.

(+)Filed herewith.

 

1.Item 17.   Undertakings

(a)

The undersigned registrant hereby undertakes:

(1)

To file, during any period in which offers or sales are being made, a post-effective amendment to this registration statement:

(i)To file, during any period in which offers or sales are being made, a post-effective amendment to this registration statement:

(i)to include any prospectus required by Section 10(a)(3) of the Securities Act of 1933;

(ii)to reflect in the prospectus any facts or events arising after the effective date of the registration statement (or the most recent post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in the registration statement.  Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range may be reflected in the form of prospectus filed with the Commission pursuant to Rule 424(b) if, in the aggregate, the changes in volume and price represent no more than 20% change in the maximum aggregate offering price set forth in the “Calculation of Registration Fee” table in the effective registration statement.

(iii)to include any material information with respect to the plan of distribution not previously disclosed in the registration statement or any material change to such information in the registration statement;

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(ii)

To reflect in the prospectus any facts or events arising after the effective date of the registration statement (or the most recent post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in the registration statement.  Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range may be reflected in the form of prospectus filed with the Commission pursuant to Rule 424(b) if, in the aggregate, the changes in volume and price represent no more than 20 percent change in the maximum aggregate offering price set forth in the “Calculation of Registration Fee” table in the effective registration statement.

(iii)

To include any material information with respect to the plan of distribution not previously disclosed in the registration statement or any material change to such information in the registration statement.


provided, however, that paragraphs (a)(1)(i), (a)(1)(ii) and (a)(1)(ii)(iii) of this section do not apply if the registration statement is on Form S-3, and if the information required to be included in a post-effective amendment by those paragraphs is contained in periodic reports filed with or furnished to the Securities and Exchange Commission by the registrant pursuant to Section 13 or Section 15(d) of the Securities Exchange Act of 1934 andthat are incorporated by reference to the registration statement.

2.That, for the purpose of determining any liability under the Securities Act, each such post-effective amendment shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.

3.To remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the termination of the offering.

(b)                                 The undersigned Registrant hereby undertakes that, for purposes of determining any liability under the Securities Act of 1933, each filing of the registrant’s annual report pursuant to Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934 (and, where applicable, each filing of an employee benefit plan’s annual report pursuant to Section 15(d) of the Securities Exchange Act of 1934) that is incorporated by reference in the registration statement, shall be deemedor is contained in a form of prospectus filed pursuant to be a new registration statement relating to the securities offered herein,Rule 424(b).

(2)

That, for the purpose of determining any liability under the Securities Act of 1933, each such post-effective amendment shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.

(3)

To remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the termination of the offering.

(4)

That, for the purpose of determining liability under the Securities Act of 1933 to any purchaser:

(i)

Each prospectus filed by the registrant pursuant to Rule 424(b)(3) shall be deemed to be part of the registration statement as of the date the filed prospectus was deemed part of and included in the registration statement; and

(ii)

Each prospectus required to be filed pursuant to Rule 424(b)(2), (b)(5), or (b)(7) as part of a registration statement in reliance on Rule 430B relating to an offering made pursuant to Rule 415(a)(1)(i), (vii), or (x) for the purpose of providing the information required by Section 10(a) of the Securities Act of 1933 shall be deemed to be part of and included in the registration statement as of the earlier of the date such form of prospectus is first used after effectiveness or the date of the first contract of sale of securities in the offering described in the prospectus.  As provided in Rule 430B, for liability purposes of the issuer and any person that is at that date an underwriter, such date shall be deemed to be a new effective date of the registration statement relating to the securities in the registration statement to which that prospectus relates, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.  Provided, however, that no statement made in a registration statement or prospectus that is part of the registration statement or made in a document incorporated or deemed incorporated by reference into the registration statement or prospectus that is part of the registration statement will, as to a purchaser with a time of contract of sale prior to such effective date, supersede or modify any statement that was made in the registration statement or prospectus that was part of the registration statement or made in any such document immediately prior to such effective date.

(5)

That, for the purpose of determining liability of the registrant under the Securities Act of 1933 to any purchaser in the initial distribution of the securities:  The undersigned registrant undertakes that in a primary offering of securities of the undersigned registrant pursuant to this registration statement, regardless of the underwriting method used to

 


sell the securities to the purchaser, if the securities are offered or sold to such purchaser by means of any of the following communications, the undersigned registrant will be a seller to the purchaser and will be considered to offer or sell such securities to such purchaser:

(i)

Any preliminary prospectus or prospectus of the undersigned registrant relating to the offering required to be filed pursuant to Rule 424;

(ii)

Any free writing prospectus relating to the offering prepared by or on behalf of the undersigned registrant or used or referred to by the undersigned registrant;

(iii)

The portion of any other free writing prospectus relating to the offering containing material information about the undersigned registrant or its securities provided by or on behalf of the undersigned registrant; and

(iv)

Any other communication that is an offer in the offering made by the undersigned registrant to the purchaser.

(b)

That, for purposes of determining any liability under the Securities Act of 1933, each filing of the registrant’s annual report pursuant to section 13(a) or section 15(d) of the Securities Exchange Act of 1934 (and, where applicable, each filing of an employee benefit plan’s annual report pursuant to section 15(d) of the Securities Exchange Act of 1934) that is incorporated by reference in the registration statement shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.

(c)Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of the registrant pursuant to the foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable.  In the event that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue.


II-5



 

SIGNATURES

Pursuant to the requirements of the Securities Act of 1933, the registrant certifies that it has reasonable grounds to believe that it meets all of the requirements for filing on Form S-3 and has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of San Diego,Miami, State of California,Florida, on the 17th day of February, 2006.September 7, 2018.

INFOSONICS CORPORATION

By:

/s/ Joseph Ram

 

 

Joseph Ram, COOL HOLDINGS, INC.

By:  /s/ Mauricio Diaz

Name:Mauricio Diaz

Title:Chief Executive Officer

 

POWER OF ATTORNEY

KNOW ALL MEN BY THESE PRESENTS, that the undersigned officers and directors of the registrant, by virtue of their signatures to this registration statement appearingEach person whose individual signature appears below hereby constituteauthorizes and appoint Joseph Ram,appoints Mauricio Diaz and Alfredo Carrasco, and each of them, with full power of substitution and resubstitution and full power to act without the other, as his true and lawful attorney-in-fact and agent to act in their names,his name, place and stead and to execute in the name and on behalf of each person, individually and in each capacity stated below, and to file any and all amendments to this registration statement, including any and all post-effective amendments, or any registration statements to be filed in connection with this registration statement pursuant to Rule 462 under the capacities set forth opposite their namesSecurities Act of 1933, as amended, and hereby ratifyto file the same, with all exhibits thereto, and other documents in connection therewith, with the Securities and Exchange Commission, granting unto said attorneys-in-fact and agents, and each of them, full power and authority to do and perform each and every act and thing, ratifying and confirming all that said attorney-in-factattorneys-in-fact and agents or any of them or their or his substitute or substitutes may lawfully do or cause to be done by virtue hereof.

thereof.

Pursuant to the requirements of the Securities Act of 1933, this registration statement has been signed by the following persons in the capacities andindicated below on the date indicated.September 7, 2018.

Signature

Title

Date

 

/s/ Mauricio Diaz

Mauricio Diaz

 

 

/s/ Joseph Ram

Chief Executive Officer (Principal

February 17, 2006and Director
(Principal Executive Officer)

Joseph Ram

/s/ Alfredo Carrasco

Executive Officer) and DirectorAlfredo Carrasco

 

 

Chief Financial Officer
(Principal Financial and Accounting Officer)

 

/s/ Andrew DeFrancesco

Andrew DeFrancesco

 

 

Director

/s/ Randall P. MarxMichael Galloro

Director

February 17, 2006

Randall P. MarxMichael Galloro

 

 

Director

 

/s/ Aaron Serruya

Aaron Serruya

 

 

Director

 

/s/ Felipe Rezk

DirectorFelipe Rezk

 

 

Robert S. Picow

/s/ Kirk A. Waldron

Director

 

February 17, 2006

Kirk A. Waldron

/s/ Abraham Rosler

Director

February 17, 2006

Abraham Rosler

/s/ Jeffrey Klausner

Chief Financial Officer (Principal

February 17, 2006

Jeffrey Klausner

Financial and Accounting Officer)

II-6



EXHIBIT INDEX

(Attached To And Made A Part Of This Registration Statement On Form S-3

For InfoSonics Corporation. Dated February 17, 2006)

 

The following is a complete list of Exhibits filed as part of this Registration Statement, which exhibits are incorporated by reference herein:

 

Exhibit No.

Description

5.1*

Opinion of Patton Boggs LLP concerning the legality of the securities being registered.

10.1

Securities Purchase Agreement. Incorporated by reference from Registrant’s Current Report on Form 8-K filed on February 2, 2006.

10.2

Form of Warrant Agreement. Incorporated by reference from Registrant’s Current Report on Form 8-K filed on February 2, 2006.

23.1*

Consent of Patton Boggs LLP (included in Opinion in Exhibit 5.1)

23.2*

Consent of Singer Lewak Greenbaum & Goldstein LLP.

24.1

Power of Attorney (included in the signature page to the Registration Statement).


*Filed herewith