<SEC-DOCUMENT>0001213900-17-009208.txt : 20170828
<SEC-HEADER>0001213900-17-009208.hdr.sgml : 20170828
<ACCEPTANCE-DATETIME>20170828060230
ACCESSION NUMBER:		0001213900-17-009208
CONFORMED SUBMISSION TYPE:	6-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20170828
FILED AS OF DATE:		20170828
DATE AS OF CHANGE:		20170828

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			BOS BETTER ONLINE SOLUTIONS LTD
		CENTRAL INDEX KEY:			0001005516
		STANDARD INDUSTRIAL CLASSIFICATION:	COMPUTER COMMUNICATIONS EQUIPMENT [3576]
		IRS NUMBER:				000000000
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		6-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-14184
		FILM NUMBER:		171053113

	BUSINESS ADDRESS:	
		STREET 1:		20 FREIMAN STREET
		CITY:			RISHON LEZION
		STATE:			L3
		ZIP:			75100
		BUSINESS PHONE:		011-972-3-954-1000

	MAIL ADDRESS:	
		STREET 1:		20 FREIMAN STREET
		CITY:			RISHON LEZION
		STATE:			L3
		ZIP:			75100
</SEC-HEADER>
<DOCUMENT>
<TYPE>6-K
<SEQUENCE>1
<FILENAME>f6k0817_bosbetteronline.htm
<DESCRIPTION>REPORT OF FOREIGN PRIVATE ISSUER
<TEXT>
<HTML>
<HEAD>
     <TITLE></TITLE>
</HEAD>
<BODY STYLE="font: 10pt Times New Roman, Times, Serif">

<P STYLE="margin: 0"></P>

<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 0; margin-bottom: 0"><DIV STYLE="font-size: 1pt; border-top: Black 2pt solid; border-bottom: Black 1pt solid; width: 100%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<P STYLE="margin-top: 0; text-align: center; margin-bottom: 0">&nbsp;</P>

<P STYLE="margin-top: 0; text-align: center; margin-bottom: 0">FORM 6 - K</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">SECURITIES AND EXCHANGE COMMISSION</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">Washington, D.C. 20549</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">Report of Foreign Private Issuer</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">Pursuant to Rule 13a - 16 or 15d -16</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">Under the Securities Exchange Act of
1934</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">For the Month of August 2017</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">Commission&nbsp;file&nbsp;number 001-14184</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><U>B.O.S. Better Online Solutions Ltd.</U></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">(Translation of Registrant's Name into
English)</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><U>20 Freiman Street, Rishon LeZion,
75100, Israel&nbsp;</U></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">(Address of principal executive office)</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Indicate by check mark whether the registrant
files or will file annual reports under cover Form 20-F or Form 40-F.</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">Form 20-F <FONT STYLE="font-family: Times New Roman, Times, Serif">&#9746;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Form
40-F ________</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">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): ___________</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">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): ___________</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: left"></P>

<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 0; margin-bottom: 0"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; border-bottom: Black 2pt solid; width: 100%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: left"></P>

<!-- Field: Page; Sequence: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">B.O.S. Better Online Solutions Ltd.</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: left">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.</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The following exhibit is attached:</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<TABLE BORDER="0" CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify; width: 8%"><FONT STYLE="font-size: 10pt">99.1</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: left; width: 91%"><A HREF="f6k0817ex99-1_bosbetter.htm"><FONT STYLE="font-size: 10pt">Press Release: B.O.S. Better Online Solutions Reports Financial Results for the Second Quarter ended June 30, 2017</FONT></A></TD></TR>
</TABLE>





<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"></P>

<!-- Field: Page; Sequence: 2; Options: NewSection; Value: 2 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center">- <!-- Field: Sequence; Type: Arabic; Name: PageNo -->2<!-- Field: /Sequence --> -</TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Signature</B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: left">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.</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<TABLE BORDER="0" CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: middle">
    <TD DIR="LTR" STYLE="text-align: left; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD COLSPAN="2" DIR="LTR" STYLE="text-align: left; padding: 0; text-indent: 0">B.O.S. Better Online Solutions Ltd.</TD></TR>
<TR STYLE="vertical-align: middle">
    <TD DIR="LTR" STYLE="text-align: left; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD COLSPAN="2" DIR="LTR" STYLE="text-align: left; padding: 0; text-indent: 0">(Registrant)</TD></TR>
<TR STYLE="vertical-align: middle">
    <TD DIR="LTR" STYLE="text-align: left; width: 60%; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD DIR="LTR" STYLE="text-align: left; width: 4%; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD DIR="LTR" STYLE="text-align: left; width: 36%; padding: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: middle">
    <TD DIR="LTR" STYLE="text-align: left; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD DIR="LTR" STYLE="text-align: left; padding: 0; text-indent: 0">By:</TD>
    <TD DIR="LTR" STYLE="border-bottom: black 1.5pt solid; padding: 0; text-align: left; text-indent: 0">/s/ Eyal Cohen</TD></TR>
<TR STYLE="vertical-align: middle">
    <TD DIR="LTR" STYLE="text-align: left; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD DIR="LTR" STYLE="text-align: left; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD DIR="LTR" STYLE="text-align: left; padding: 0; text-indent: 0">Eyal Cohen</TD></TR>
<TR STYLE="vertical-align: middle">
    <TD DIR="LTR" STYLE="text-align: left; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD DIR="LTR" STYLE="text-align: left; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD DIR="LTR" STYLE="text-align: left; padding: 0; text-indent: 0">Co-CEO and Chief Financial Officer</TD></TR>
</TABLE>


<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: left">Dated: August 28, 2017</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: left"></P>

<!-- Field: Page; Sequence: 3; Value: 2 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center">- <!-- Field: Sequence; Type: Arabic; Name: PageNo -->3<!-- Field: /Sequence --> -</TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center; background-color: white">EXHIBIT INDEX</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center; background-color: white"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="width: 8%; border-bottom: black 1.5pt solid; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">EXHIBIT&nbsp;NO.</FONT></TD>
    <TD STYLE="vertical-align: top; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 91%; border-bottom: black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">DESCRIPTION</FONT></TD></TR>
<TR>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="background-color: #CCEEFF">
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">99.1</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="f6k0817ex99-1_bosbetter.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Press Release: B.O.S. Better Online Solutions Reports Financial Results for the Second Quarter ended June 30, 2017</FONT></A></TD></TR>
</TABLE>


<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center; background-color: white">-
4 -</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center; background-color: white"></P>

<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 0; margin-bottom: 0"><DIV STYLE="font-size: 1pt; border-top: Black 1.5pt solid; width: 100%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center; background-color: white"></P>

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>f6k0817ex99-1_bosbetter.htm
<DESCRIPTION>PRESS RELEASE: B.O.S. BETTER ONLINE SOLUTIONS REPORTS FINANCIAL RESULTS FOR THE SECOND QUARTER ENDED JUNE 30, 2017
<TEXT>
<HTML>
<HEAD>
     <TITLE></TITLE>
</HEAD>
<BODY STYLE="font: 10pt Times New Roman, Times, Serif">

<P STYLE="margin: 0; text-align: right"><B>Exhibit 99.1</B></P>

<P STYLE="margin: 0; text-align: right"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 12pt"><B>B.O.S.
Better Online Solutions Reports Financial Results for the <BR>
Second Quarter ended June 30, 2017</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Net
Income of $166,000 in the Second Quarter. Net Income of $500,000 anticipated for the year 2017<BR>
Eyal Cohen appointed as Co-CEO </B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>RISHON
LEZION, Israel, August 16, 2017 (GLOBE NEWSWIRE) -</B> B.O.S. Better Online Solutions Ltd. (the &ldquo;Company&rdquo;, &ldquo;BOS&rdquo;)
(Nasdaq: BOSC), a leading Israeli provider of RFID and Mobile solutions and a global provider of Supply Chain solutions to enterprises,
announced today its financial results for the Second quarter ended June 30, 2017.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Yuval
Viner, Co-CEO, stated: &ldquo;We ended the second quarter with net income of $166,000, compared to a net income of $126,000 in
the comparable quarter of the previous year. Taking into account our existing backlog, we anticipate our annual net income to
grow from $360,000 in 2016 to $500,000 in 2017. Revenues for the second quarter reflects 6.5% growth as compared to the comparable
quarter last year, we expect growth in our 2017 revenues, as compared to revenues in 2016.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&ldquo;I
am also pleased to welcome Eyal Cohen as Co-CEO of BOS, in addition to his continued role as CFO. In this position, Eyal will
lead our strategic initiatives&rdquo;, Yuval concluded.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Eyal
Cohen, Co-CEO and CFO, stated: &ldquo;In the recent 12 months, we&rsquo;ve generated EBITDA of $1 Million, and our net debt was
reduced to a low $1.3 million. This allows us to pursue organic and inorganic growth.&rdquo;&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><U>BOS
conference call is rescheduled to Wednesday, August 16, 2017</U></B> at 10:00 a.m. EDT - 5:00 p.m., Israel Time (instead of Thursday,
August 17, 2017). A question-and-answer session will follow management&rsquo;s presentation. To access the conference call, please
dial one of the following numbers:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">US:
+1-866-8609642, International: +972-3-9180687.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">For
those unable to listen to the live call, a script of the call will be available the next day after the call on BOS&rsquo;s website,
at: <U>http://www.boscorporate.com</U></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>About
BOS</B></FONT><BR>
<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">B.O.S. Better Online Solutions Ltd. (BOSC) is a leading
Israeli provider of RFID and Mobile solutions and a global provider of Supply Chain solutions to enterprises. BOS&rsquo; RFID
and Mobile division offers both turnkey integration services as well as stand-alone products, including best-of-breed RFID and
AIDC hardware and communications equipment, BOS middleware and industry-specific software applications. The Company&rsquo;s Supply
Chain division provides electronic components consolidation services to the aerospace, defense, medical and telecommunications
industries as well as to enterprise customers worldwide. For more information, please visit: <U>www.boscorporate.com</U>.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">For
more information:<BR>
Eyal Cohen<BR>
Co-CEO and CFO<BR>
+972-542525925</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Use
of Non-GAAP Financial Information</B><BR>
BOS reports financial results in accordance with U.S. 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&rsquo;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&rsquo;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.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"></P>

<!-- Field: Page; Sequence: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="margin: 0pt"></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt; padding: 0pt 0pt 3pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><BR>
<B>Safe Harbor Regarding Forward-Looking Statements</B><BR>
The forward-looking statements contained herein reflect management&rsquo;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.&nbsp; 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, 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 and continued availability of financing for working capital purposes
and to refinance outstanding indebtedness; and additional risks and uncertainties detailed in BOS&rsquo;s periodic reports and registration
statements filed with the U.S. Securities 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.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"></P>

<!-- Field: Page; Sequence: 2; Options: NewSection; Value: 2 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->2<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt; padding: 0pt 0pt 3pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">&nbsp;</P>




<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; border-bottom: Black 1.5pt solid; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>CONSOLIDATED
STATEMENTS OF OPERATIONS</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>U.S.
dollars in thousands</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>
<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid; padding-left: 0pt">Six months ended<BR>
June 30,</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; padding-left: 0pt; text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt; padding-left: 0pt; text-align: center">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid; padding-left: 0pt">Three months ended<BR>
June 30,</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; padding-left: 0pt; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center; padding-left: 0pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt; padding-left: 0pt; text-align: center">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid; padding-left: 0pt">2017</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; padding-left: 0pt; text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt; padding-left: 0pt; text-align: center">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid; padding-left: 0pt">2016</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; padding-left: 0pt; text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt; padding-left: 0pt; text-align: center">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid; padding-left: 0pt">2017</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; padding-left: 0pt; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; padding-left: 0pt; text-align: center">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid; padding-left: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;<B>2016</B></FONT></TD><TD STYLE="padding-bottom: 1.5pt; padding-left: 0pt; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center; padding-left: 0pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-left: 0pt; text-align: center">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center; padding-left: 0pt">(Unaudited)</TD><TD STYLE="font-weight: bold; padding-left: 0pt; text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold; padding-left: 0pt; text-align: center">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center; padding-left: 0pt">(Unaudited)</TD><TD STYLE="font-weight: bold; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="padding-left: 0pt; text-indent: 0pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 52%; text-align: left; text-indent: 0pt; padding-left: 0pt">Revenues</TD><TD STYLE="width: 1%; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left; padding-left: 0pt; text-indent: 0pt">$</TD><TD STYLE="width: 9%; text-align: right; padding-left: 0pt; text-indent: 0pt">13,780</TD><TD STYLE="width: 1%; text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="width: 1%; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left; padding-left: 0pt; text-indent: 0pt">$</TD><TD STYLE="width: 9%; text-align: right; padding-left: 0pt; text-indent: 0pt">14,375</TD><TD STYLE="width: 1%; text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="width: 1%; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left; padding-left: 0pt; text-indent: 0pt">$</TD><TD STYLE="width: 9%; text-align: right; padding-left: 0pt; text-indent: 0pt">6,716</TD><TD STYLE="width: 1%; text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="width: 1%; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left; padding-left: 0pt; text-indent: 0pt">$</TD><TD STYLE="width: 9%; text-align: right; padding-left: 0pt; text-indent: 0pt">6,308</TD><TD STYLE="width: 1%; text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; padding-left: 0pt; text-indent: 0pt">Cost of revenues</TD><TD STYLE="padding-bottom: 1.5pt; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right; padding-left: 0pt; text-indent: 0pt">10,868</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right; padding-left: 0pt; text-indent: 0pt">11,508</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right; padding-left: 0pt; text-indent: 0pt">5,252</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right; padding-left: 0pt; text-indent: 0pt">4,992</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; text-indent: 0pt; padding-left: 0pt">Gross profit</TD><TD STYLE="padding-bottom: 1.5pt; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right; padding-left: 0pt; text-indent: 0pt">2,912</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right; padding-left: 0pt; text-indent: 0pt">2,867</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right; padding-left: 0pt; text-indent: 0pt">1,464</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right; padding-left: 0pt; text-indent: 0pt">1,316</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: 0pt; padding-left: 0pt">&nbsp;</TD><TD STYLE="padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: 0pt; padding-left: 0pt">Operating costs and expenses:</TD><TD STYLE="padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;&nbsp;&nbsp;&nbsp;Sales and marketing</TD><TD STYLE="padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt">1,591</TD><TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt">1,546</TD><TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt">777</TD><TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt">755</TD><TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; padding-left: 0pt; text-indent: 0pt">&nbsp;&nbsp;&nbsp;&nbsp;General and administrative</TD><TD STYLE="padding-bottom: 1.5pt; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right; padding-left: 0pt; text-indent: 0pt">845</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right; padding-left: 0pt; text-indent: 0pt">809</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right; padding-left: 0pt; text-indent: 0pt">449</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right; padding-left: 0pt; text-indent: 0pt">351</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; text-indent: 0pt; padding-left: 0pt">Total operating costs and expenses</TD><TD STYLE="padding-bottom: 1.5pt; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right; padding-left: 0pt; text-indent: 0pt">2,436</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right; padding-left: 0pt; text-indent: 0pt">2,355</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right; padding-left: 0pt; text-indent: 0pt">1,226</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right; padding-left: 0pt; text-indent: 0pt">1,106</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: 0pt; padding-left: 0pt">&nbsp;</TD><TD STYLE="padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: 0pt; padding-left: 0pt">Operating income</TD><TD STYLE="padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt">476</TD><TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt">512</TD><TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt">238</TD><TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt">210</TD><TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; text-indent: 0pt; padding-left: 0pt">Financial expenses, net</TD><TD STYLE="padding-bottom: 1.5pt; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right; padding-left: 0pt; text-indent: 0pt">(163</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left; padding-left: 0pt; text-indent: 0pt">)</TD><TD STYLE="padding-bottom: 1.5pt; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right; padding-left: 0pt; text-indent: 0pt">(166</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left; padding-left: 0pt; text-indent: 0pt">)</TD><TD STYLE="padding-bottom: 1.5pt; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right; padding-left: 0pt; text-indent: 0pt">(72</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left; padding-left: 0pt; text-indent: 0pt">)</TD><TD STYLE="padding-bottom: 1.5pt; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right; padding-left: 0pt; text-indent: 0pt">(84</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left; padding-left: 0pt; text-indent: 0pt">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 4pt; text-indent: 0pt; padding-left: 0pt">Net income</TD><TD STYLE="padding-bottom: 4pt; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left; padding-left: 0pt; text-indent: 0pt">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right; padding-left: 0pt; text-indent: 0pt">313</TD><TD STYLE="padding-bottom: 4pt; text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="padding-bottom: 4pt; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left; padding-left: 0pt; text-indent: 0pt">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right; padding-left: 0pt; text-indent: 0pt">346</TD><TD STYLE="padding-bottom: 4pt; text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="padding-bottom: 4pt; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left; padding-left: 0pt; text-indent: 0pt">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right; padding-left: 0pt; text-indent: 0pt">166</TD><TD STYLE="padding-bottom: 4pt; text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="padding-bottom: 4pt; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left; padding-left: 0pt; text-indent: 0pt">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right; padding-left: 0pt; text-indent: 0pt">126</TD><TD STYLE="padding-bottom: 4pt; text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: 0pt; padding-left: 0pt">&nbsp;</TD><TD STYLE="padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 4pt; text-indent: 0pt; padding-left: 0pt">Basic and diluted net income per share</TD><TD STYLE="padding-bottom: 4pt; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left; padding-left: 0pt; text-indent: 0pt">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right; padding-left: 0pt; text-indent: 0pt">0.10</TD><TD STYLE="padding-bottom: 4pt; text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="padding-bottom: 4pt; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left; padding-left: 0pt; text-indent: 0pt">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right; padding-left: 0pt; text-indent: 0pt">0.14</TD><TD STYLE="padding-bottom: 4pt; text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="padding-bottom: 4pt; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left; padding-left: 0pt; text-indent: 0pt">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right; padding-left: 0pt; text-indent: 0pt">0.05</TD><TD STYLE="padding-bottom: 4pt; text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="padding-bottom: 4pt; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left; padding-left: 0pt; text-indent: 0pt">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right; padding-left: 0pt; text-indent: 0pt">0.05</TD><TD STYLE="padding-bottom: 4pt; text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: 0pt; padding-left: 0pt">&nbsp;</TD><TD STYLE="padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 4pt; text-indent: -10pt; padding-left: 10pt">Weighted average number of shares used in computing basic net income per share</TD><TD STYLE="padding-bottom: 4pt; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right; padding-left: 0pt; text-indent: 0pt">3,051</TD><TD STYLE="padding-bottom: 4pt; text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="padding-bottom: 4pt; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right; padding-left: 0pt; text-indent: 0pt">2,446</TD><TD STYLE="padding-bottom: 4pt; text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="padding-bottom: 4pt; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right; padding-left: 0pt; text-indent: 0pt">3,104</TD><TD STYLE="padding-bottom: 4pt; text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="padding-bottom: 4pt; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right; padding-left: 0pt; text-indent: 0pt">2,512</TD><TD STYLE="padding-bottom: 4pt; text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 4pt; text-indent: -10pt; padding-left: 10pt">Weighted average number of shares used in computing diluted net income per share</TD><TD STYLE="padding-bottom: 4pt; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right; padding-left: 0pt; text-indent: 0pt">3,051</TD><TD STYLE="padding-bottom: 4pt; text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="padding-bottom: 4pt; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right; padding-left: 0pt; text-indent: 0pt">2,452</TD><TD STYLE="padding-bottom: 4pt; text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="padding-bottom: 4pt; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right; padding-left: 0pt; text-indent: 0pt">3,104</TD><TD STYLE="padding-bottom: 4pt; text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="padding-bottom: 4pt; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right; padding-left: 0pt; text-indent: 0pt">2,518</TD><TD STYLE="padding-bottom: 4pt; text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD></TR>
</TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT></P>

<!-- Field: Page; Sequence: 3; Value: 2 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->3<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt; padding: 0pt 0pt 3pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; border-bottom: Black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>CONSOLIDATED
BALANCE SHEETS</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>(U.S.
dollars in thousands)</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-weight: normal">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt; padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-left: 0pt; text-indent: 0pt; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; padding-left: 0pt; border-bottom: Black 1.5pt solid">June 30,<BR>
2017</TD><TD STYLE="font-weight: bold; padding-left: 0pt; text-align: center; padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-left: 0pt; text-align: center; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; padding-left: 0pt; border-bottom: Black 1.5pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt"><B>December
                                         31,<BR>
2016</B></P>


</TD><TD STYLE="padding-left: 0pt; text-align: center; padding-bottom: 1.5pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center; padding-left: 0pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-left: 0pt; text-align: center">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; padding-left: 0pt">(Unaudited)</TD><TD STYLE="font-weight: bold; padding-left: 0pt; text-align: center">&nbsp;</TD><TD STYLE="padding-left: 0pt; text-align: center">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; padding-left: 0pt"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt"><B>(Audited)</B></P>


</TD><TD STYLE="padding-left: 0pt; text-indent: 0pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center; padding-left: 0.125in">ASSETS</TD><TD STYLE="padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="padding-left: 0pt; text-indent: 0pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="padding-left: 0pt; text-indent: 0pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">CURRENT ASSETS:</TD><TD STYLE="padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="padding-left: 0pt; text-indent: 0pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; text-align: left; padding-left: 0.125in; text-indent: 0pt">Cash and cash equivalents</TD><TD STYLE="width: 1%; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left; padding-left: 0pt; text-indent: 0pt">$</TD><TD STYLE="width: 9%; text-align: right; padding-left: 0pt; text-indent: 0pt">1,790</TD><TD STYLE="width: 1%; text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="width: 1%; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left; padding-left: 0pt; text-indent: 0pt">$</TD><TD STYLE="width: 9%; text-align: right; padding-left: 0pt; text-indent: 0pt">1,286</TD><TD STYLE="width: 1%; text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 0.125in; text-indent: 0pt">Restricted bank deposits</TD><TD STYLE="padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt">203</TD><TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt">196</TD><TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 0.125in; text-indent: 0pt">Trade receivables</TD><TD STYLE="padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt">9,195</TD><TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt">7,928</TD><TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 0.125in; text-indent: 0pt">Other accounts receivable and prepaid expenses</TD><TD STYLE="padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt">1,025</TD><TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt">992</TD><TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 0.125in; text-indent: 0pt; padding-bottom: 1.5pt">Inventories</TD><TD STYLE="padding-left: 0pt; text-indent: 0pt; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt; border-bottom: Black 1.5pt solid">&nbsp;</TD><TD STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt; border-bottom: Black 1.5pt solid">2,759</TD><TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt; padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-left: 0pt; text-indent: 0pt; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt; border-bottom: Black 1.5pt solid">&nbsp;</TD><TD STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt; border-bottom: Black 1.5pt solid">2,314</TD><TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt; padding-bottom: 1.5pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-decoration: none; text-align: left; padding-left: 0pt; text-indent: 0pt; padding-bottom: 1.5pt"><U>Total</U>
    current assets</TD><TD STYLE="padding-left: 0pt; text-indent: 0pt; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt; border-bottom: Black 1.5pt solid">&nbsp;</TD><TD STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt; border-bottom: Black 1.5pt solid">14,972</TD><TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt; padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-left: 0pt; text-indent: 0pt; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt; border-bottom: Black 1.5pt solid">&nbsp;</TD><TD STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt; border-bottom: Black 1.5pt solid">12,716</TD><TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt; padding-bottom: 1.5pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt; padding-bottom: 1.5pt">LONG-TERM ASSETS</TD><TD STYLE="padding-left: 0pt; text-indent: 0pt; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt; border-bottom: Black 1.5pt solid">&nbsp;</TD><TD STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt; border-bottom: Black 1.5pt solid">183</TD><TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt; padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-left: 0pt; text-indent: 0pt; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt; border-bottom: Black 1.5pt solid">&nbsp;</TD><TD STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt; border-bottom: Black 1.5pt solid">43</TD><TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt; padding-bottom: 1.5pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt; padding-bottom: 1.5pt">PROPERTY AND EQUIPMENT, NET</TD><TD STYLE="padding-left: 0pt; text-indent: 0pt; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt; border-bottom: Black 1.5pt solid">&nbsp;</TD><TD STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt; border-bottom: Black 1.5pt solid">458</TD><TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt; padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-left: 0pt; text-indent: 0pt; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt; border-bottom: Black 1.5pt solid">&nbsp;</TD><TD STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt; border-bottom: Black 1.5pt solid">514</TD><TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt; padding-bottom: 1.5pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt; padding-bottom: 1.5pt">OTHER INTANGIBLE ASSETS, NET</TD><TD STYLE="padding-left: 0pt; text-indent: 0pt; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt; border-bottom: Black 1.5pt solid">&nbsp;</TD><TD STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt; border-bottom: Black 1.5pt solid">167</TD><TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt; padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-left: 0pt; text-indent: 0pt; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt; border-bottom: Black 1.5pt solid">&nbsp;</TD><TD STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt; border-bottom: Black 1.5pt solid">195</TD><TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt; padding-bottom: 1.5pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt; padding-bottom: 1.5pt">GOODWILL</TD><TD STYLE="padding-left: 0pt; text-indent: 0pt; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt; border-bottom: Black 1.5pt solid">&nbsp;</TD><TD STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt; border-bottom: Black 1.5pt solid">4,676</TD><TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt; padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-left: 0pt; text-indent: 0pt; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt; border-bottom: Black 1.5pt solid">&nbsp;</TD><TD STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt; border-bottom: Black 1.5pt solid">4,676</TD><TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt; padding-bottom: 1.5pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-decoration: none; text-align: left; padding-left: 0pt; text-indent: 0pt; padding-bottom: 4pt"><U>Total assets</U></TD><TD STYLE="padding-left: 0pt; text-indent: 0pt; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt; border-bottom: Black 4pt double">$</TD><TD STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt; border-bottom: Black 4pt double">20,456</TD><TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt; padding-bottom: 4pt">&nbsp;</TD><TD STYLE="padding-left: 0pt; text-indent: 0pt; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt; border-bottom: Black 4pt double">$</TD><TD STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt; border-bottom: Black 4pt double">18,144</TD><TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt; padding-bottom: 4pt">&nbsp;</TD></TR>
</TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT></P>

<!-- Field: Page; Sequence: 4; Value: 2 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->4<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt; padding: 0pt 0pt 3pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT>&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; border-bottom: Black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>CONSOLIDATED
BALANCE SHEETS</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>(U.S.
dollars in thousands)</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid; padding-left: 0pt; text-indent: 0pt">June 30,<BR>
2017</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid; padding-left: 0pt; text-indent: 0pt">December&nbsp;31,<BR>
 2016</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; padding-left: 0pt; text-indent: 0pt">(Unaudited)</TD><TD STYLE="font-weight: bold; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; padding-left: 0pt; text-indent: 0pt">(Audited)</TD><TD STYLE="font-weight: bold; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="padding-left: 0pt; text-indent: 0pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center; padding-left: 0pt">LIABILITIES AND SHAREHOLDERS&rsquo; EQUITY</TD><TD STYLE="padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="padding-left: 0pt; text-indent: 0pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="padding-left: 0pt; text-indent: 0pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">CURRENT LIABILITIES:</TD><TD STYLE="padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="padding-left: 0pt; text-indent: 0pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; text-align: left; text-indent: 0pt; padding-left: 0.125in">Current maturities of long term loans</TD><TD STYLE="width: 1%; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="width: 9%; text-align: right; padding-left: 0pt; text-indent: 0pt">400</TD><TD STYLE="width: 1%; text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="width: 1%; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="width: 9%; text-align: right; padding-left: 0pt; text-indent: 0pt">400</TD><TD STYLE="width: 1%; text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: 0pt; padding-left: 0.125in">Trade payables</TD><TD STYLE="padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt">5,609</TD><TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt">4,601</TD><TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: 0pt; padding-left: 0.125in">Employees and payroll accruals</TD><TD STYLE="padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt">708</TD><TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt">677</TD><TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: 0pt; padding-left: 0.125in">Deferred revenues</TD><TD STYLE="padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt">928</TD><TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt">680</TD><TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; padding-left: 0.125in; text-indent: 0pt">Accrued expenses and other liabilities</TD><TD STYLE="padding-bottom: 1.5pt; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right; padding-left: 0pt; text-indent: 0pt">298</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right; padding-left: 0pt; text-indent: 0pt">259</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-decoration: none; text-align: left; padding-bottom: 1.5pt; padding-left: 0pt; text-indent: 0pt"><U>Total</U>
    current liabilities</TD><TD STYLE="padding-bottom: 1.5pt; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right; padding-left: 0pt; text-indent: 0pt">7,943</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right; padding-left: 0pt; text-indent: 0pt">6,617</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">LONG-TERM LIABILITIES:</TD><TD STYLE="padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: 0pt; padding-left: 0.125in">Long-term loans, net of current maturities</TD><TD STYLE="padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt">2,656</TD><TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt">2,734</TD><TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: 0pt; padding-left: 0.125in">Accrued severance pay</TD><TD STYLE="padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt">212</TD><TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt">194</TD><TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; text-indent: 0pt; padding-left: 0.125in">Deferred gain</TD><TD STYLE="padding-bottom: 1.5pt; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right; padding-left: 0pt; text-indent: 0pt">2</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right; padding-left: 0pt; text-indent: 0pt">15</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-decoration: none; text-align: left; padding-bottom: 1.5pt; padding-left: 0pt; text-indent: 0pt"><U>Total</U>
    long-term liabilities</TD><TD STYLE="padding-bottom: 1.5pt; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right; padding-left: 0pt; text-indent: 0pt">2,870</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right; padding-left: 0pt; text-indent: 0pt">2,943</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; padding-left: 0pt; text-indent: 0pt">SHAREHOLDERS&rsquo; EQUITY</TD><TD STYLE="padding-bottom: 1.5pt; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right; padding-left: 0pt; text-indent: 0pt">9,643</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right; padding-left: 0pt; text-indent: 0pt">8,584</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-decoration: none; text-align: left; padding-bottom: 4pt; padding-left: 0pt; text-indent: 0pt"><U>Total</U>
    liabilities and shareholders&rsquo; equity</TD><TD STYLE="padding-bottom: 4pt; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left; padding-left: 0pt; text-indent: 0pt">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right; padding-left: 0pt; text-indent: 0pt">20,456</TD><TD STYLE="padding-bottom: 4pt; text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD><TD STYLE="padding-bottom: 4pt; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left; padding-left: 0pt; text-indent: 0pt">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right; padding-left: 0pt; text-indent: 0pt">18,144</TD><TD STYLE="padding-bottom: 4pt; text-align: left; padding-left: 0pt; text-indent: 0pt">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT></P>

<!-- Field: Page; Sequence: 5; Value: 2 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->5<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt; padding: 0pt 0pt 3pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; border-bottom: Black 1.5pt solid; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>RECONCILIATION
OF NON-GAAP FINANCIAL RESULTS</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>(U.S.
dollars in thousands)</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Six months ended<BR>
June 30,</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Three months ended<BR>
June 30,</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2017</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2016</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2017</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2016</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center">(Unaudited)</TD><TD STYLE="font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center">(Unaudited)</TD><TD STYLE="font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 52%; text-align: left">Net Income as reported <BR></TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">313</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">346</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">166</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">126</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Adjustments:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Amortization of intangible assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">28</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">53</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">14</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">23</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Stock based compensation</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">32</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">68</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">15</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">34</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Acquisition expenses</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">30</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Total Adjustments</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">60</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">151</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">29</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">57</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 4pt; text-indent: -8.5pt; padding-left: 8.5pt">Net Income on a Non-GAAP basis</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">373</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">497</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">195</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">183</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; border-bottom: Black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>CONDENSED
CONSOLIDATED EBITDA</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>(U.S.
dollars in thousands)</B></FONT></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Six months ended<BR>
June 30,</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Three months ended<BR>
June 30,</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2017</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2016</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2017</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2016</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 52%; text-align: left">Operating income</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">476</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">512</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">238</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">210</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 0.125in">Add:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: normal; text-align: left">Amortization of intangible assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">28</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">53</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">14</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">23</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: normal; text-align: left; text-indent: -8.5pt; padding-left: 8.5pt">Stock based compensation</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">32</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">68</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">15</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">34</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: normal; text-align: left; padding-bottom: 1.5pt; text-indent: -8.5pt; padding-left: 8.5pt">Depreciation</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">90</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">93</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">44</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">46</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 4pt; text-indent: -8.5pt; padding-left: 8.5pt">EBITDA</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">626</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">726</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">311</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">313</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif"></FONT></P>

<!-- Field: Page; Sequence: 6; Value: 2 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->6<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt; padding: 0pt 0pt 3pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; border-bottom: Black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>SEGMENT
INFORMATION</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>(U.S.
dollars in thousands)</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt; font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-left: 0pt; text-indent: 0pt; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; padding-left: 0pt; border-bottom: Black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">RFID
    and Mobile Solutions</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-left: 0pt; text-align: center; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-left: 0pt; text-align: center; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; padding-left: 0pt; border-bottom: Black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Supply<BR>
Chain     Solutions</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-left: 0pt; text-align: center; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-left: 0pt; text-align: center; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; padding-left: 0pt; border-bottom: Black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Intercompany</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-left: 0pt; text-align: center; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-left: 0pt; text-align: center; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; padding-left: 0pt; border-bottom: Black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Consolidated</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-left: 0pt; text-align: center; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-left: 0pt; text-align: center; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; padding-left: 0pt; border-bottom: Black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">RFID
    and Mobile Solutions</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-left: 0pt; text-align: center; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="padding-left: 0pt; text-align: center; font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: center; padding-left: 0pt; border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Supply
    Chain Solutions</B></FONT></TD><TD STYLE="padding-left: 0pt; text-align: center; font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-left: 0pt; text-align: center; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; padding-left: 0pt; border-bottom: Black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Intercompany</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-left: 0pt; text-align: center; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-left: 0pt; text-align: center; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; padding-left: 0pt; border-bottom: Black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Consolidated</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-left: 0pt; text-align: center; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; padding-left: 0pt; font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-left: 0pt; text-align: center; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="14" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; padding-left: 0pt; border-bottom: Black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Six
    months ended June 30, 2017</B></FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-left: 0pt; text-align: center; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-left: 0pt; text-align: center; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="14" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; padding-left: 0pt; border-bottom: Black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Three
    months ended&nbsp;&nbsp;June 30, 2017</B></FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-left: 0pt; text-indent: 0pt; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="padding-left: 0pt; text-indent: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="padding-left: 0pt; text-indent: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="padding-left: 0pt; text-indent: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="padding-left: 0pt; text-indent: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="padding-left: 0pt; text-indent: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="padding-left: 0pt; text-indent: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="padding-left: 0pt; text-indent: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="padding-left: 0pt; text-indent: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="padding-left: 0pt; text-indent: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="padding-left: 0pt; text-indent: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="padding-left: 0pt; text-indent: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="padding-left: 0pt; text-indent: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="padding-left: 0pt; text-indent: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="padding-left: 0pt; text-indent: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="padding-left: 0pt; text-indent: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="padding-left: 0pt; text-indent: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 10%; text-align: left; padding-left: 0pt; text-indent: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Revenues</FONT></TD><TD STYLE="width: 1%; padding-left: 0pt; text-indent: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left; padding-left: 0pt; text-indent: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD><TD STYLE="width: 9%; text-align: right; padding-left: 0pt; text-indent: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">6,229</FONT></TD><TD STYLE="width: 1%; text-align: left; padding-left: 0pt; text-indent: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="width: 1%; padding-left: 0pt; text-indent: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left; padding-left: 0pt; text-indent: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD><TD STYLE="width: 9%; text-align: right; padding-left: 0pt; text-indent: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">7,639</FONT></TD><TD STYLE="width: 1%; text-align: left; padding-left: 0pt; text-indent: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; padding-left: 0pt; text-indent: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 0pt; text-indent: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD><TD STYLE="width: 9%; font: 10pt Times New Roman, Times, Serif; text-align: right; padding-left: 0pt; text-indent: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(88</FONT></TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 0pt; text-indent: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</FONT></TD><TD STYLE="width: 1%; padding-left: 0pt; text-indent: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left; padding-left: 0pt; text-indent: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD><TD STYLE="width: 9%; text-align: right; padding-left: 0pt; text-indent: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">13,780</FONT></TD><TD STYLE="width: 1%; text-align: left; padding-left: 0pt; text-indent: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="width: 1%; padding-left: 0pt; text-indent: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left; padding-left: 0pt; text-indent: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD><TD STYLE="width: 9%; text-align: right; padding-left: 0pt; text-indent: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2,918</FONT></TD><TD STYLE="width: 1%; text-align: left; padding-left: 0pt; text-indent: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="width: 1%; padding-left: 0pt; text-indent: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left; padding-left: 0pt; text-indent: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD><TD STYLE="width: 9%; text-align: right; padding-left: 0pt; text-indent: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">3,823</FONT></TD><TD STYLE="width: 1%; text-align: left; padding-left: 0pt; text-indent: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; padding-left: 0pt; text-indent: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 0pt; text-indent: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD><TD STYLE="width: 9%; font: 10pt Times New Roman, Times, Serif; text-align: right; padding-left: 0pt; text-indent: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(25</FONT></TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 0pt; text-indent: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</FONT></TD><TD STYLE="width: 1%; padding-left: 0pt; text-indent: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left; padding-left: 0pt; text-indent: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD><TD STYLE="width: 9%; text-align: right; padding-left: 0pt; text-indent: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">6,716</FONT></TD><TD STYLE="width: 1%; text-align: left; padding-left: 0pt; text-indent: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="padding-left: 0pt; text-indent: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="padding-left: 0pt; text-indent: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="padding-left: 0pt; text-indent: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="padding-left: 0pt; text-indent: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="padding-left: 0pt; text-indent: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="padding-left: 0pt; text-indent: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="padding-left: 0pt; text-indent: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="padding-left: 0pt; text-indent: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Gross
    profit</FONT></TD><TD STYLE="padding-left: 0pt; text-indent: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD><TD STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1,533</FONT></TD><TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="padding-left: 0pt; text-indent: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD><TD STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1,379</FONT></TD><TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="padding-left: 0pt; text-indent: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD><TD STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD><TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="padding-left: 0pt; text-indent: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD><TD STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2,912</FONT></TD><TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="padding-left: 0pt; text-indent: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD><TD STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">749</FONT></TD><TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="padding-left: 0pt; text-indent: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD><TD STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">715</FONT></TD><TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="padding-left: 0pt; text-indent: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD><TD STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD><TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="padding-left: 0pt; text-indent: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD><TD STYLE="text-align: right; padding-left: 0pt; text-indent: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1,464</FONT></TD><TD STYLE="text-align: left; padding-left: 0pt; text-indent: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
</TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-weight: normal">&nbsp;</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B></B></FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">RFID and Mobile Solutions</TD><TD STYLE="font-weight: bold; text-align: center; padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: center; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Supply Chain Solutions</TD><TD STYLE="font-weight: bold; text-align: center; padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: center; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Intercompany</TD><TD STYLE="font-weight: bold; text-align: center; padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: center; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Consolidated</TD><TD STYLE="font-weight: bold; text-align: center; padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: center; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">RFID and Mobile Solutions</TD><TD STYLE="font-weight: bold; text-align: center; padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: center; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Supply Chain Solutions</TD><TD STYLE="font-weight: bold; text-align: center; padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: center; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Intercompany</TD><TD STYLE="font-weight: bold; text-align: center; padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: center; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Consolidated</TD><TD STYLE="font-weight: bold; text-align: center; padding-bottom: 1.5pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center; padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="text-align: center; padding-bottom: 1.5pt"></TD>
    <TD COLSPAN="14" STYLE="text-align: center; border-bottom: Black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Six
months ended June 30, 2016</B></FONT></TD><TD STYLE="text-align: center; padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="text-align: center; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="14" STYLE="text-align: center; border-bottom: Black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Three
months ended June 30, 2016</B> </FONT></TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 10%; text-align: left">Revenues</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">6,034</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">8,368</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(27</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">14,375</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">2,584</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">3,750</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(26</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">6,308</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Gross profit</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">1,499</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">1,368</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">2,867</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">687</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">629</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">1,316</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">8&nbsp;</P>

<!-- Field: Rule-Page --><DIV ALIGN="CENTER" STYLE="margin-top: 0pt; margin-bottom: 0pt"><DIV STYLE="font-size: 1pt; border-top: Black 1.5pt solid; width: 100%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
