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Form 6-K BOS BETTER ONLINE SOLUTI For: Aug 23

August 23, 2022 10:25 AM EDT

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 6 - K

 

Report of Foreign Private Issuer

 

Pursuant to Rule 13a - 16 or 15d -16

Under the Securities Exchange Act of 1934

 

For the Month of August 2022

 

Commission file number 001-14184

 

B.O.S. Better Online Solutions Ltd.

(Translation of Registrant's Name into English)

 

20 Freiman Street, Rishon LeZion, 7535825, Israel 

(Address of principal executive office)

 

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

 

Form 20-F ☒     Form 40-F ________

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ___________

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ___________

 

 

 

 

 

 

B.O.S. Better Online Solutions Ltd.

 

The GAAP financial statements, included in the Press Release that is attached to this Form 6-K, are hereby incorporated by reference into all effective Registration Statements filed by us under the Securities Act of 1933, as amended, to the extent not superseded by documents or reports subsequently filed or furnished.

 

The following exhibit is attached:

 

99.1   Press Release: BOS Reports Second Quarter of the Year 2022 Financial Results.

 

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Signature

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

  B.O.S. Better Online Solutions Ltd.
  (Registrant)
     
  By: /s/ Moshe Zeltzer
    Moshe Zeltzer
    Chief Financial Officer

 

Dated: August 23, 2022

 

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EXHIBIT INDEX

 

EXHIBIT NO.   DESCRIPTION
     
99.1   Press Release: BOS Reports Second Quarter of the Year 2022 Financial Results.

 

 

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Exhibit 99.1

 

BOS Reports Second Quarter of the Year 2022 Financial Results

Growth of 12% in Revenues as compared to Second Quarter of 2021

 

RISHON LE ZION, Israel, August 23, 2022 – BOS Better Online Solutions Ltd. (“BOS” or the “Company”) (NASDAQ: BOSC) reported its financial results for the second quarter of the year 2022.

 

Revenues for the second quarter of 2022 grew by 12% to $10.3 million from $9.2 million in the comparable quarter last year.

 

Gross profit margin for the second quarter of 2022 improved to 21.4%, compared to 17.3% in the comparable quarter last year.

 

Operating profit for the second quarter grew by 315% to $537,000 compared to an operating profit of $129,000 in the comparable quarter last year.

 

EBITDA for the second quarter increased to $652,000 from $207,000 in the comparable quarter last year.

 

Financial expenses for the second quarter of 2022 increased to $378,000 compared to a financial income of $13,000 in the comparable quarter last year. This increase in expenses is attributed to foreign exchange differences between the Israeli NIS and the US dollar.

 

As of June 30, 2022, we had $3.2 million of net assets linked to the Israeli NIS. The devaluation of the Israeli NIS against the US dollar by 10.2% during the second quarter of 2022 caused expenses in the amount of $320,000. Conversely, this devaluation reduced our operating expenses by approximately $40,000. The devaluation of the US dollar against the Israeli NIS commencing July 1, 2022, is expected to generate income from foreign exchange differences in the third quarter of 2022.

 

As a result of the above, net income for the second quarter of 2022 was $159,000 or $0.03 per basic share compared to a net income of $141,000 or $0.03 per basic share in the comparable quarter last year.

 

Eyal Cohen, BOS’s CEO stated: “I am encouraged by the growth of 27.6% in revenues and of 175% in operating profit in the first six months of the year 2022 as compared to the corresponding period last year. We have a relatively strong backlog that is expected to support this trend in the second half of 2022. This advances us towards meeting our financial targets for the year 2022, which are revenues of over $35 million (compared to $33.6 million in the year 2021) and net income in excess of $1 million (compared to a net income of $451,000 in the year 2021.)”

 

Ziv Dekel, BOS’s Chairman stated: “During the first half of 2022, the Company continued the execution of its turnaround process, which has led to encouraging financial results. Led by Eyal, BOS’ management is focused on growth initiatives, and is working diligently towards realizing its potential.”

 

BOS will host a conference call on Tuesday, August 23, 2022, at 9:00 a.m. EDT - 4:00 p.m., Israel Time. A question-and-answer session will follow management’s presentation.

 

To access the conference call, please dial one of the following numbers:

US: +1-888-281-1167, International: +972-3-9180644.

 

For those unable to listen to the live call, a replay of the call will be available the next day on the BOS website: www.boscom.com

 

 

 

 

About BOS

 

BOS provides services and systems for inventory production and management in three channels:

 

Services – The Supply Chain division provides inventory procurement and kitting.

 

Integration – the RFID division provides off-the-shelf software and equipment to track and manage inventory in the production floor and warehouse.

 

Development – the Intelligent Robotics division develops and builds custom-made robotic cells for industrial and logistic processes.

 

Contact:
Eyal Cohen, CEO
+972-542525925 | [email protected]

 

Use of Non-GAAP Financial Information

 

BOS reports financial results in accordance with US GAAP and herein provides some non-GAAP measures. These non-GAAP measures are not in accordance with, nor are they a substitute for, GAAP measures. These non-GAAP measures are intended to supplement the Company’s presentation of its financial results that are prepared in accordance with GAAP. The Company uses the non-GAAP measures presented to evaluate and manage the Company’s operations internally. The Company is also providing this information to assist investors in performing additional financial analysis that is consistent with financial models developed by research analysts who follow the Company. The reconciliation set forth below is provided in accordance with Regulation G and reconciles the non-GAAP financial measures with the most directly comparable GAAP financial measures.

 

Safe Harbor Regarding Forward-Looking Statements

 

The forward-looking statements contained herein reflect management’s current views with respect to future events and financial performance. These forward-looking statements are subject to certain risks and uncertainties that could cause the actual results to differ materially from those in the forward-looking statements, all of which are difficult to predict and many of which are beyond the control of BOS. These risk factors and uncertainties include, amongst others, the dependency of sales being generated from one or few major customers, the uncertainty of BOS being able to maintain current gross profit margins, inability to keep up or ahead of technology and to succeed in a highly competitive industry, failure to successfully integrate and achieve the potential benefits of the acquisition of the business operations of Imdecol Ltd. (the Robotics business line) and of Dagesh Inventory Counting and Maintenance Ltd., inability to maintain marketing and distribution arrangements and to expand our overseas markets, uncertainty with respect to the prospects of legal claims against BOS, the effect of exchange rate fluctuations, general worldwide economic conditions, the impact of the COVID-19 virus and continued availability of financing for working capital purposes and to refinance outstanding indebtedness; and additional risks and uncertainties detailed in BOS’ periodic reports and registration statements filed with the US Securities and Exchange Commission. BOS undertakes no obligation to publicly update or revise any such forward-looking statements to reflect any change in its expectations or in events, conditions or circumstances on which any such statements may be based, or that may affect the likelihood that actual results will differ from those set forth in the forward-looking statements.

 

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CONSOLIDATED STATEMENTS OF OPERATIONS

U.S. dollars in thousands

 

   Six months ended
June 30,
   Three months ended
June 30,
 
   2022   2021   2022   2021 
   (Unaudited)   (Unaudited) 
                 
Revenues  $21,138   $16,557   $10,350   $9,229 
Cost of revenues   16,667    13,274    8,130    7,626 
Gross profit   4,471    3,283    2,220    1,603 
                     
Operating costs and expenses:                    
Research and development   87    114    36    54 
Sales and marketing   2,340    1,929    1,176    977 
General and administrative   999    877    471    443 
Acquisition expenses   44    -    -    - 
Total operating costs and expenses   3,470    2,920    1,683    1,474 
                     
Operating income   1,001    363    537    129 
Financial income (expenses), net   (529)   (98)   (378)   13 
Income before taxes on income   472    265    159    142 
Taxes on income   -    (1)   -    (1)
Net income  $472   $264   $159   $141 
                     
Basic and diluted net income per share  $0.09   $0.05   $0.03   $0.03 
Weighted average number of shares used in computing basic net income per share   5,395    5,188    5,538    5,219 
Weighted average number of shares used in computing diluted net income per share   5,438    5,216    5,570    5,252 
Number of outstanding shares as of June 30, 2022 and 2021   5,702    5,224    5,702    5,224 

 

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CONSOLIDATED BALANCE SHEETS

(U.S. dollars in thousands)

 

   June 30,
2022
   December 31,
2021
 
   (Unaudited)    (Audited) 
         
ASSETS        
         
CURRENT ASSETS:        
Cash and cash equivalents  $1,120   $1,875 
Restricted bank deposits   130    242 
Trade receivables   10,039    9,209 
Other accounts receivable and prepaid expenses   1,324    977 
Inventories   5,618    5,567 
           
Total current assets   18,231    17,870 
           
LONG-TERM ASSETS   160    150 
           
PROPERTY AND EQUIPMENT, NET   1,373    1,097 
           
OPERATING LEASE RIGHT-OF-USE ASSETS, NET   721    944 
           
OTHER INTANGIBLE ASSETS, NET   548    20 
           
GOODWILL   4,895    4,676 
           
Total assets  $25,928   $24,757 

 

 

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CONSOLIDATED BALANCE SHEETS

(U.S. dollars in thousands)

 

  

June 30,

2022

   December 31,
2021
 
   (Unaudited)   (Audited) 
         
LIABILITIES AND SHAREHOLDERS’ EQUITY        
         
CURRENT LIABILITIES:        
Current maturities of long term loans  $573   $740 
Operating lease liabilities, current   352    538 
Trade payables   6,031    5,200 
Employees and payroll accruals   992    996 
Deferred revenues   422    917 
Advances net of inventory in process   144    249 
Accrued expenses and other liabilities   335    112 
           
Total current liabilities   8,849    8,752 
           
LONG-TERM LIABILITIES:          
Long-term loans, net of current maturities   317    681 
Operating lease liabilities, non-current   403    565 
Long term deferred revenues   327    132 
Accrued severance pay   249    280 
           
Total long-term liabilities   1,296    1,658 
           
           
TOTAL SHAREHOLDERS’ EQUITY   15,783    14,347 
           
           
Total liabilities and shareholders’ equity  $   25, 928   $24,757 

 

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CONDENSED CONSOLIDATED EBITDA

(U.S. dollars in thousands)

 

   Six months ended
June 30,
   Three months ended
June 30,
 
   2022   2021   2022   2021 
                 
Operating income  $1,001   $363   $537   $129 
Add:                    
Amortization of intangible assets   45    10    31    5 
Stock-based compensation   50    31    25    16 
Depreciation   118    111    60    57 
EBITDA  $1,214   $515   $653   $207 

 

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SEGMENT INFORMATION

(U.S. dollars in thousands)

 

   RFID  

Supply

Chain Solutions

   Intelligent Robotics   Intercompany   Consolidated 
      

Six months ended June 30, 2022

 
                     
Revenues  $7,693   $12,873   $572   $            -   $21,138 
                          
Gross profit (loss)   1,915    2,575    (19)   -    4,471 
                          
Allocated operating expenses   1,209    1,585    271    -    3,065 
                          
Acquisition expenses   44    -    -    -    44 
                          
Unallocated operating expenses*   -    -    -         361 
                          
Income (loss) from operations  $662   $990   $(290)   -    1,001 
                          
Financial expenses and tax on income                       (529)
                          
Net income                      $472 

 

   RFID  

Supply

Chain Solutions

   Intelligent Robotics   Intercompany   Consolidated 
      

Six months ended June 30, 2021

 
                     
Revenues  $6,322   $9,249   $1,036   $(50)  $16,557 
                          
Gross profit   1,553    1,699    31    -    3,283 
                          
Allocated operating expenses   1,112    1,148    336    -    2,596 
                          
Unallocated operating expenses*                       324 
                          
Income (loss) from operations  $441   $551   $(305)        363 
                          
Financial expenses and tax on income                       (99)
                          
Net income                       $264 

 

*Unallocated operating expenses include costs not specific to a particular segment but are general to the group, such as expenses incurred for insurance of directors and officers, public company fees, legal fees, and other similar corporate costs.

 

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SEGMENT INFORMATION

(U.S. dollars in thousands)

 

   RFID  

Supply

Chain Solutions

   Intelligent Robotics   Intercompany   Consolidated 
      

Three months ended June 30, 2022

 
                     
Revenues  $3,590   $6,366   $394   $              -   $10,350 
                          
Gross profit   885    1,332    3    -    2,220 
                          
Allocated operating expenses   566    809    129    -    1,504 
                          
Unallocated operating expenses*                  -    179 
                          
Income (loss) from operations  $319   $523   $(126)   -    537 
                          
Financial expenses and tax on income                       378 
                          
Net income                      $159 

 

   RFID  

Supply

Chain Solutions

   Intelligent Robotics   Intercompany   Consolidated 
       Three months ended June 30, 2021 
                     
Revenues  $3,374   $5,295   $582   $(22)  $9,229 
                          
Gross profit (loss)   706    1,050    (153)   -    1,603 
                          
Allocated operating expenses   567    612    138                  -    1,319 
                          
Unallocated operating expenses*                       155 
    -    -    -           
Income (loss) from operations  $139   $438   $(291)   -    129 
                          
Financial income and tax on income                       12 
                          
Net income                      $141 

 

*Unallocated operating expenses include costs not specific to a particular segment but are general to the group, such as expenses incurred for insurance of directors and officers, public company fees, legal fees, and other similar corporate costs.

 

 

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