Exhibit 99.1

 

B.O.S. BETTER ONLINE SOLUTIONS LTD.

 

AND ITS SUBSIDIARIES

 

CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

 

AS OF JUNE 30, 2025

 

IN U.S. DOLLARS

 

UNAUDITED

 

INDEX

 

  Page
   
Condensed Interim Consolidated Balance Sheets F-2 - F-3
   
Condensed Interim Consolidated Statements of Operations F-4
   
Condensed Interim Consolidated Statements of Changes in Shareholders’ Equity F-5
   
Condensed Interim Consolidated Statements of Cash Flows F-6 - F-7
   
Notes to Condensed Interim Consolidated Financial Statements F-8 - F-16

 

- - - - - - - - - -

 

F-1

 

 

B.O.S. BETTER ONLINE SOLUTIONS LTD.

AND ITS SUBSIDIARIES

 

CONDENSED INTERIM CONSOLIDATED BALANCE SHEETS

U.S. dollars in thousands

 

  

June 30,

2025

   December 31,
2024
 
   Unaudited   Audited 
ASSETS        
         
CURRENT ASSETS:        
Cash and cash equivalents  $5,170   $3,368 
Restricted bank deposits   65    185 
Trade receivables (net of allowance for doubtful accounts of $95 and $79 at June 30, 2025 and December 31 2024, respectively)   15,689    11,787 
Other accounts receivable and prepaid expenses   1,165    1,150 
Inventories   6,917    7,870 
           
Total current assets   29,006    24,360 
           
NON-CURRENT ASSETS:          
Long-term assets   146    177 
Property and equipment, net   3,483    3,417 
Deferred Tax Assets   1,082    1,000 
Operating lease right-of-use assets, net   834    779 
Intangible assets, net   392    422 
Goodwill   3,488    4,188 
           
Total non-current assets   9,425    9,983 
           
Total assets  $38,431   $34,343 

 

The accompanying notes are an integral part of the condensed interim consolidated financial statements.

 

F-2

 

 

B.O.S. BETTER ONLINE SOLUTIONS LTD.

AND ITS SUBSIDIARIES

 

CONDENSED INTERIM CONSOLIDATED BALANCE SHEETS

U.S. dollars in thousands (except share and per share data)

 

  

June 30,

2025

   December 31,
2024
 
   Unaudited   Audited 
LIABILITIES AND SHAREHOLDERS’ EQUITY        
         
CURRENT LIABILITIES:        
Current maturities of non-current loans  $278   $439 
Operating lease liabilities, current   223    176 
Trade payables   6,088    6,362 
Employees and payroll accruals   1,072    1,087 
Deferred revenues   3,174    2,003 
Accrued expenses and other liabilities   844    598 
           
Total current liabilities   11,679    10,665 
           
NON-CURRENT LIABILITIES:          
Loans, net of current maturities   971    980 
Operating lease liabilities, non-current   652    576 
Deferred revenues   290    293 
Accrued severance pay   609    498 
           
Total non-current liabilities   2,522    2,347 
           
COMMITMENTS AND CONTINGENT LIABILITIES   
 
    
 
 
           
SHAREHOLDERS’ EQUITY:          
Share capital and additional paid-in capital   
 
    
 
 
Ordinary shares: Authorized; 11,000,000 shares at June 30, 2025 and December 31, 2024; Issued and outstanding: 6,059,992 and 5,792,559 shares at June 30, 2025 and December 31, 2024   87,186    86,401 
Accumulated other comprehensive loss   (243)   (243)
Accumulated deficit   (62,713)   (64,827)
           
Total equity   24,230    21,331 
           
Total liabilities and shareholders’ equity  $38,431   $34,343 

 

The accompanying notes are an integral part of the condensed interim consolidated financial statements.

 

F-3

 

 

B.O.S. BETTER ONLINE SOLUTIONS LTD.

AND ITS SUBSIDIARIES

 

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS

U.S. dollars in thousands (except share and per share data)

 

  

Six months period ended

June 30,

     
   2025   2024 
   Unaudited   Unaudited 
         
Revenues  $26,553   $19,734 
Cost of revenues   20,334    14,976 
           
Gross profit  $6,219   $4,758 
           
Operating costs and expenses:          
Research and development   87    84 
Sales and marketing   2,540    2,213 
General and administrative   1,081    956 
Impairment of Goodwill   700    
-
 
Total operating costs and expenses   4,408    3,253 
           
Operating income   1,811    1,505 
Financial income (expenses), net   424    (262)
Income before taxes on income   2,235    1,243 
Taxes on income   121    1 
Net income  $2,114   $1,242 
           
Basic net income per share  $0.36   $0.22 
           
Diluted net income per share  $0.33   $0.21 
           
Weighted average number of shares used in computing net income per share:          
Basic   5,925    5,748 
           
Diluted   6,385    5,833 

 

The accompanying notes are an integral part of the condensed interim consolidated financial statements.

 

F-4

 

 

B.O.S. BETTER ONLINE SOLUTIONS LTD.

AND ITS SUBSIDIARIES

 

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY

U.S. dollars in thousands (except share and per share data)

 

   Ordinary
shares
   Share capital
and additional
paid-in
capital
   Accumulated
other
comprehensive
loss
   Accumulated
deficit
   Total shareholders’
equity
 
                     
Balance as of January 1, 2024   5,748,018   $86,209   $(243)  $(67,127)  $18,839 
Share-based compensation expense   -    43    
-
    
-
    43 
Net income   -    
-
    
-
    1,242    1,242 
                          
Balance as of June 30, 2024 (unaudited)   5,748,018   $86,252   $(243)  $(65,885)  $20,124 
                          
Balance as of January 1, 2025   5,792,559   $86,401   $(243)  $(64,827)  $21,331 
Exercise of options into ordinary shares   267,433    764    
-
    
-
    764 
Share-based compensation expense   -    21    
-
    
-
    21 
Net income   -    
-
    
-
    2,114    2,114 
                          
Balance as of June 30, 2025 (unaudited)   6,059,992   $87,186   $(243)  $(62,713)  $24,230 

 

The accompanying notes are an integral part of the condensed interim consolidated financial statements.

 

F-5

 

 

B.O.S. BETTER ONLINE SOLUTIONS LTD.

AND ITS SUBSIDIARIES

 

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS

U.S. dollars in thousands (except share and per share data)

 

  

Six months period ended

June 30,

 
   2025   2024 
   Unaudited 
Cash flows from operating activities:        
         
Net income  $2,114   $1,242 
Adjustments required to reconcile net income to net cash provided by operating activities:          
Depreciation and amortization   234    274 
Impairment of Goodwill   700    
-
 
Interest and exchange rate of loans   98    (45)
Severance pay, net   111    (16)
Share-based compensation expenses   21    43 
Decrease (Increase) in trade receivables, net   (3,902)   1,714 
Decrease (Increase) in other accounts receivable and other long-term assets   15    (450)
Increase in inventories   953    (520)
Decrease in trade payables   (274)   (1,507)
Decrease (increase) in Deferred Tax Assets   (82)   
-
 
Decrease in operating lease right-of-use assets, net   113    141 
Increase in operating lease liabilities   (46)   (164)
Increase (Decrease) in employees and payroll accruals, deferred revenues, accrued expenses and other liabilities   1,399    (392)
           
Net cash provided by operating activities  $1,454   $320 
           
Cash flows to investing activities:          
           
Purchase of property and equipment   (269)   (245)
           
Net cash used in investing activities  $(269)  $(245)

 

The accompanying notes are an integral part of the condensed interim consolidated financial statements.

 

F-6

 

 

B.O.S. BETTER ONLINE SOLUTIONS LTD.

AND ITS SUBSIDIARIES

 

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS

U.S. dollars in thousands (except share and per share data)

 

  

Six months period ended

June 30,

 
   2025   2024 
   Unaudited 
Cash flows from financing activities:        
         
Proceeds received from issuance of shares upon options exercised, net   764    
-
 
           
Repayment of loans   (267)   (85)
           
Net cash provided by (used in) financing activities  $497   $(85)
           
Change in cash and cash equivalents, and restricted bank deposits   1,682    (10)
Cash, cash equivalents and restricted bank deposits at the beginning of the period   3,553    2,561 
           
Cash, cash equivalents and restricted bank deposits at the end of the period  $5,235   $2,551 
           
Supplementary cash flow activities:          
           
(a) Cash paid during the period for:          
Tax  $65   $
-
 
Interest  $286   $48 

 

The accompanying notes are an integral part of the condensed interim consolidated financial statements.

 

F-7

 

 

B.O.S. BETTER ONLINE SOLUTIONS LTD.

AND ITS SUBSIDIARIES

 

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

U.S. dollars in thousands (except share and per share data)

 

NOTE 1: GENERAL

 

  A. B.O.S. Better Online Solutions Ltd. (“BOS” or the “Company”) is an Israeli corporation. The Company’s shares are listed on NASDAQ under the ticker BOSC.

 

  B. As of June 30, 2025, the Company has three operating segments that include Intelligent Robotics, RFID and Supply Chain Solutions.

 

  C. The Company’s wholly owned subsidiaries include:

 

  1. BOS-Dimex Ltd., (“BOS-Dimex”), is an Israeli company that comprises the RFID segment. BOS-Dimex provides comprehensive turn-key solutions for Automatic Identification and Data Collection (AIDC), combining a mobile infrastructure with software applications of manufacturers that we represent. BOS-Dimex also offers on-site inventory count services in the fields of apparel, food, convenience and pharma as well as asset tagging and counting services for corporate and governmental entities.

 

  2. BOS-Odem Ltd. (“BOS-Odem”), an Israeli company, is a distributor of electronic components to customers worldwide, mainly in the aerospace and defense industries. BOS-Odem is also a supply chain service provider for aviation customers that prefer to consolidate their component acquisitions through a supplier that is able to provide a comprehensive solution to their components-supply needs. BOS-Odem is part of the Supply Chain Solutions segment; and

 

  3. Ruby-Tech Inc., a New York corporation, is a wholly owned subsidiary of BOS-Odem and a part of the Supply Chain Solutions segment.

 

D.Iron Swords War

 

   

In October 2023, the Government of Israel declared a state of war in response to attacks on civilians in the southern region of the country, with hostilities also affecting northern Israel. During 2025, the conflict escalated to include direct hostilities between Israel and Iran. A ceasefire between Israel and Iran was reached by the end of June 2025.

 

The security situation has resulted in certain challenges, including disruptions in supply chains, and temporary shortage of personnel due to the mobilization of employees for reserve duty.

 

In addition, regional tensions, including Houthis attacks on commercial shipping routes in the Red Sea, have led to delays in shipments and increased shipping costs.

 

The Company has taken measures to safeguard its employees, and facilities in Israel, and to minimize any potential impact on its operations.

 

As of June 2025, most of the Company’s employees who had been called up for reserve duty have returned to work.

 

The security situation in recent months has not had a material impact on the Company’s financial results.

 

However, given the unpredictability of the duration and the scope of the conflict, the Company is unable to estimate the potential future impact on its business, financial condition or results of operations. Management continuous to monitor the developments closely and will take appropriate actions to mitigate risks to its operations and assets.

 

F-8

 

 

B.O.S. BETTER ONLINE SOLUTIONS LTD.

AND ITS SUBSIDIARIES

 

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

U.S. dollars in thousands (except share and per share data)

 

NOTE 2: SIGNIFICANT ACCOUNTING POLICIES

 

The significant accounting policies applied in the financial statements of the Company as of December 31, 2024, were applied consistently in these interim financial statements.

 

  A. Use of estimates in the preparation of financial statements

 

The preparation of condensed interim consolidated financial statements in conformity with accounting principles generally accepted in the United States (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the dates of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. As applicable to these consolidated interim financial statements, the most significant estimates and assumptions include (i) net realizable value of the inventory, (ii) impairment analysis of goodwill and intangible assets, (iii) allowance for doubtful accounts; and (iv) revenue recognition.

 

  B. Principles of consolidation

 

The consolidated financial statements include the accounts of the Company and its subsidiaries. Intercompany transactions and balances, including profits from intercompany sales not yet realized outside the Company, were eliminated upon consolidation.

 

  C. Cash and cash equivalents

 

Cash equivalents are short-term highly liquid investments with original maturities of less than three months from date of purchase.

 

  D. Earnings per share

 

The Company computes net earnings per share in accordance with ASC 260, “Earnings per share”. Basic earnings per share is computed by dividing net income attributable to ordinary shareholders by the weighted-average number of ordinary shares outstanding during the period, net of the weighted average number of treasury shares (if any).

 

Diluted earnings per ordinary share is computed similar to basic earnings per share, except that the denominator is increased to include the number of additional potential ordinary shares that would have been outstanding if the potential ordinary shares had been issued and if the effect of the additional ordinary shares were dilutive. Potential ordinary shares are excluded from the computation for a period in which a net earning is reported or if their effect is anti-dilutive.

 

An amount of 0.9 million and 1.4 million weighted average outstanding options and warrants have been excluded from the calculation of the diluted net earnings per share for the period of six months ended June 30, 2025 and 2024, respectively, because the effect of the ordinary shares issuable as a result of the exercise or conversion of these instruments was determined to be anti-dilutive. 

 

F-9

 

 

B.O.S. BETTER ONLINE SOLUTIONS LTD.

AND ITS SUBSIDIARIES

 

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

U.S. dollars in thousands (except share and per share data)

 

NOTE 2: SIGNIFICANT ACCOUNTING POLICIES cont.

 

E.Recently issued accounting pronouncements, not yet adopted

 

ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures

 

On December 14, the FASB issued ASU 2023-09— Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”).

 

ASU 2023-09 requires disaggregated information about a reporting entity’s effective tax rate reconciliation as well as information on income taxes paid. ASU 2023-09, Improvements to Income Tax Disclosures, applies to all entities subject to income taxes.

 

The amendments in ASU 2023-09 require that public business entities (PBE’s) on an annual basis (1) disclose specific categories in the rate reconciliation and (2) provide additional information for reconciling items that meet a quantitative threshold. Specifically, PBE’s are required to disclose a tabular reconciliation, using both percentages and reporting currency amounts, according to specific categories. Separate disclosure is required for any reconciling item in which the effect of the item is equal to or greater than 5 percent of the amount computed by multiplying the income (or loss) from continuing operations before income taxes by the applicable statutory income tax rate.

 

Also, ASU 2023-09 require that all entities disclose on an annual basis, information about income taxes paid, including the amount of income taxes paid (net of refunds received) disaggregated by federal (national), state, and foreign taxes and the amount of income taxes paid (net of refunds received) disaggregated by individual jurisdictions. In addition, ASC 2023-09 require that all entities disclose information about income (or loss) from continuing operations before income tax expense (or benefit) disaggregated between domestic and foreign and Income tax expense (or benefit) from continuing operations disaggregated by federal (national), state, and foreign.

 

The amendments in ASU 2023-09 also eliminate certain current disclosure requirements.

 

For public business entities (PBEs), the new requirements will be effective for annual periods beginning after December 15, 2024. The guidance will be applied on a prospective basis with the option to apply the standard retrospectively. The provisions of ASU 2023-09 will be applied in the annual financial statements for the year ended December 31, 2025.

 

F-10

 

 

B.O.S. BETTER ONLINE SOLUTIONS LTD.

AND ITS SUBSIDIARIES

 

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

U.S. dollars in thousands (except share and per share data)

 

NOTE 2: SIGNIFICANT ACCOUNTING POLICIES cont.

 

ASU 2024-03, “Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures

 

On November 2024, the FASB issued ASU 2024-03, “Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (“ASU 2024-03”).

 

ASU 2024-03 enhances disclosure of certain costs and expenses to provide enhanced transparency into the expenses presented in the income statement.

 

ASU 2024-03 is effective for annual periods beginning after December 15, 2026. The Company intends to adopt and apply the guidance in fiscal year 2027. ASU 2024-03 should be adopted retrospectively to all periods presented in the financial statements and early adoption is permitted. The Company has not yet assessed the impact of the disclosure of this standard ASU 2024-03.

 

NOTE 3: UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

 

These accompanying unaudited condensed interim consolidated financial statements have been prepared in accordance with U.S. GAAP for interim financial information. Accordingly, they do not include all the information and footnotes required by generally accepted accounting principles in the United States for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation of the Company’s financial position as of June 30, 2025, have been included. Operating results for the six-month period ended June 30, 2025, are not necessarily indicative of the results that may be expected for the year ended December 31, 2025, or any other interim period in the future.

 

The consolidated balance sheet at December 31, 2024 has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by generally accepted accounting principles in the United States for complete financial statements.

 

The unaudited interim financial statements should be read in conjunction with the Company’s annual financial statements and accompanying notes as of December 31, 2024, included in the Company’s Annual Report on Form 20-F, filed with the Securities Exchange Commission on March 31, 2025.

 

NOTE 4: INVENTORIES

 

Composition:

 

   June 30,
2025
   December 31,
2024
 
   Unaudited   Audited 
Raw materials  $25   $200 
Inventory in progress   1,927    1,559 
Finished goods   4,965    6,111 
           
   $6,917   $7,870 

 

F-11

 

 

B.O.S. BETTER ONLINE SOLUTIONS LTD.

AND ITS SUBSIDIARIES

 

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

U.S. dollars in thousands (except share and per share data)

 

NOTE 5: INTANGIBLE ASSETS, NET

 

A.Other Intangible Assets:

 

  

June 30,

2025

   December 31,
2024
 
Cost:        
Suppliers’ relationships   760    760 
Customers’ relationship   1,032    1,032 
Non-competition   270    270 
           
    2,062    2,062 
Accumulated amortization:          
Suppliers’ relationship   180    150 
Customer relationship   862    862 
Non-competition   162    162 
           
    1,204    1,174 
           
Impairment of Intangible Assets:          
Suppliers’ relationship   189    189 
Customer relationship   204    204 
Non-competition   73    73 
           
    466    466 
    1,670    1,640 
           
Amortized cost  $392   $422 

 

B.Amortization expenses amounted to $30 and $190 for the period of six months ended June 30, 2025, and the year ended December 31, 2024, respectively.

 

C.The changes in the carrying amount of goodwill during the period of six months ended June 30, 2025, and the year ended December 31, 2024, respectively are as follows:

 

   Goodwill 
Balance as of January 1 and December 31, 2023   4,895 
Acquisition during 2024     
Impairment of Goodwill   (707)
Balance as of January 1 and December 31, 2024   4,188 
Changes during 2025     
Acquisition during 2025   
-
 
Impairment of Goodwill   (700)
Balance as of June 30, 2025  $3,488 

 

F-12

 

 

B.O.S. BETTER ONLINE SOLUTIONS LTD.

AND ITS SUBSIDIARIES

 

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

U.S. dollars in thousands (except share and per share data)

 

NOTE 5:INTANGIBLE ASSETS, NET cont.

 

Goodwill represents an excess of the costs over the net assets of businesses acquired. Under ASC 350, Intangibles - Goodwill and Other (“ASC 350”), goodwill is not amortized but instead is tested for impairment at least annually or between annual tests in certain circumstances and written-down when impaired.

 

The Company performs its annual impairment analysis of goodwill as of December 31 of each year, or more often if indicators of impairment are present. The provisions of ASC 350 require that the impairment test be performed on goodwill at the level of the reporting unit. As required by ASC 350, the Company chooses either to perform a qualitative assessment of whether a goodwill impairment test is necessary or proceeds directly to the goodwill impairment test. Such determination is made for each reporting unit on a stand-alone basis. The qualitative assessment includes various factors such as macroeconomic conditions, industry and market considerations, cost factors, overall financial performance, earnings multiples, gross margin and cash flows from operating activities and other relevant factors. When the Company chooses to perform a qualitative assessment and determines that it is more likely than not (more than 50 percent likelihood) that the fair value of the reporting unit is less than its carrying value, then the Company proceeds to the goodwill impairment test. If the Company determines otherwise, no further evaluation is necessary.

 

When the Company decides or is required to perform the goodwill impairment test, the Company compares the fair value of the reporting unit to its carrying value and an impairment charge is recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value, if any.

 

The Company operates in three operating-based segments: the Intelligent Robotics division, the RFID division and the Supply Chain Solutions division. The Company’s goodwill was related to two different reporting units: the RFID division and the Intelligent Robotics division, each of which represents a whole separate reporting unit. As of June 30, 2025, and December 31, 2024, there is a balance of goodwill related only to the RFID division.

 

Under the RFID division segment there is one reporting unit with an allocated goodwill amount of $3,488 as of June 30, 2025. As of June 30, 2025, the Company decided to perform an impairment test, due to the existence of certain negative factors such as failure to meet budget targets.  The impairment analysis was performed using the income approach and concluded that the carrying value of such reporting unit exceeds its fair value. As of June 30, 2025, and December 31, 2024, the analysis resulted in a goodwill impairment charge of $700, which was recognized as an impairment loss for the six-month period ended June 30, 2025. The most significant assumptions used for the income approach for the impairment test were four years of projected net cash flows, estimated weighted average cost of capital and a long-term growth rate. The significant assumptions used for the assessment were a discount rate of 16.5% and a long-term growth rate of 3%. The measurement of fair value of reporting units as part of goodwill impairment analysis is classified under Level 3 within the fair value hierarchy.

 

F-13

 

 

B.O.S. BETTER ONLINE SOLUTIONS LTD.

AND ITS SUBSIDIARIES

 

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

U.S. dollars in thousands (except share and per share data)

 

NOTE 6:LEASES

 

The Company has entered into several non-cancellable operating lease agreements for its offices and vehicles. The Company’s leases have original lease periods expiring between 2025 and 2034. Payments due under such lease contracts include primarily fixed payments. The Company assumes renewals in the determination of the lease term. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants.

 

The components of lease costs, lease term and discount rate are as follows: 

 

   Six Months Ended 
   June 30,
2025
 
   (unaudited) 
Operating lease cost:    
Vehicles   54 
Facilities rent   98 
    152 
Remaining Lease Term     
Vehicles   0.34 -2.84 years 
Facilities rent   0.26-9.09 years 
      
Weighted Average Discount Rate     
Vehicles   4.42%
Facilities rent   4.53%

 

The following is a schedule, by year, of maturities of operating lease liabilities as of June 30, 2025:

 

   June 30,
2025
 
   (unaudited) 
Period:    
The remainder of 2025   127 
2026   225 
2027   156 
2028   131 
2029   71 
2030-2034   331 
Total operating lease payments   1,041 
Less: imputed interest   (166)
Present value of lease liabilities   875 

 

F-14

 

 

B.O.S. BETTER ONLINE SOLUTIONS LTD.

AND ITS SUBSIDIARIES

 

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

U.S. dollars in thousands (except share and per share data)

 

NOTE 7: SEGMENTS AND GEOGRAPHICAL INFORMATION

 

Commencing January 1, 2020, the Company presents its business operations in three reportable segments, consisting of the RFID segment, Supply Chain Solutions segment and the Intelligent Robotics segment.

 

The Company’s management makes financial decisions and allocates resources, based on the information it receives from its internal management system. The Company allocates resources and assesses performance for each operating segment using information about revenues and gross profit.

 

  a. Information about the operating segments for the six months ended June 30, 2025 and 2024 is as follows:

 

   RFID  

Supply

Chain Solutions

   Intelligent Robotics   Intercompany   Consolidated 
                     
Six months ended June 30, 2025:                    
                     
Revenues from external customers  $6,168   $19,734   $868   $     (217)  $26,553 
                          
Cost of revenues, net of allowance  $4,907   $14,688   $663   $(217)  $20,041 
                          
Allowance for slow inventory  $
-
   $293   $
-
   $
-
   $293 
                          
Gross profit  $1,261   $4,753   $205   $
-
   $6,219 
                          
Allocated operating expenses  $1,760   $2,106   $141   $
-
   $4,007 
                          
Unallocated operating expenses   
-
    
-
    
-
    
-
   $401 
                          
Operating Income (loss)  $(499)  $2,647   $64   $
-
   $1,811 
                          
Financial income   
-
    
-
    
-
    
-
   $424 
                          
Income before taxes on income   
-
    
-
    
-
    
-
   $2,235 
                          
Tax on income   
-
    
-
    
-
    
-
   $121 
                          
Net Income   
-
    
-
    
-
    
-
   $2,114 

 

F-15

 

 

B.O.S. BETTER ONLINE SOLUTIONS LTD.

AND ITS SUBSIDIARIES

 

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

U.S. dollars in thousands (except share and per share data)

 

NOTE 7:SEGMENTS AND GEOGRAPHICAL INFORMATION – Cont.

 

   RFID  

Supply
Chain
Solutions

   Intelligent
Robotics
   Intercompany   Consolidated 
                     
Six months ended June 30, 2024:                    
                     
Revenues from external customers  $6,662   $12,687   $401   $(16)  $19,734 
                          
Cost of revenues, net of allowance  $5,042   $9,599   $251   $(16)  $14,876 
                          
Allowance for slow-moving inventory  $
-
   $100   $
-
   $
-
   $100 
                          
Gross profit  $1,620   $2,988   $150   $
-
   $4,758 
                          
Allocated operating expenses  $1,103   $1,683   $122   $
-
   $2,908 
                          
Unallocated operating expenses   
-
    
-
    
-
    
-
   $345 
                          
Operating Income (loss)  $517   $1,305   $28   $
-
   $1,505 
                          
Financial expenses   
-
    
-
    
-
    
-
   $(262)
                          
Net Income before tax   
-
    
-
    
-
    
-
   $1,243 
                          
Tax on income   
-
    
-
    
-
    
-
   $1 
                          
Net Income   
-
    
-
    
-
    
-
   $1,242 

 

  b. The following presents total revenues for the six months ended June 30, 2025 and 2024 based on the location of customers:

 

   June 30, 
   2025   2024 
   Unaudited 
         
Israel  $23,746   $18,041 
Far East   
-
    54 
India   696    796 
Europe   919    463 
United States   1,192    377 
Others   
-
    3 
           
   $26,553   $19,734 

 

F-16

 

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