BOSC BOS Better Online Solutions Ltd

BOS Better Online Solutions Ltd. ("BOS" or the "Company") (NASDAQ: BOSC) reported financial results for the fourth quarter and the year 2021.

Eyal Cohen, BOS's CEO, stated: "We have made positive progress in the year 2021, although revenues were roughly the same as in the year 2020:

• Gross profit margin improved to 19.6% in the year 2021 from 18.2% in the year 2020;
• Operating expenses decreased to $6.1 million in the year 2021 from $6.8 million in the year 2020;
• Financial expenses decreased to $105,000 in the year 2021 from $348,000 in the year 2020.

As a result, net income for the year 2021 amounted to $451,000 as compared to a $960,000 net loss in the year 2020.”

Eyal Cohen added: “On March 10, 2022, we announced that BOS’ RFID division acquired the assets of Dagesh, which provides inventory counting services in Israel. In addition, on March 28, 2022, we announced that BOS’ Supply Chain division received a $2.4 million order from an existing customer, for delivery this year. This advances us towards our financial targets for the year 2022, which are revenues over $35 million (compared to $33.6 million in the year 2021) and net income to exceed $1 million (compared to a net income of $451,000 in the year 2021.)"

BOS will host a conference call on Wednesday, March 30, 2022, at 9:00 a.m. EDT – 4:00 p.m., Israel Time. A question-and-answer session will follow management’s presentation. To access the conference call, please dial one of the following numbers:

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

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

About BOS

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

• Services – The Supply Chain division provides inventory procurement and kitting.
• Integration – the RFID division provides off-the-shelf software and equipment to track and manage inventory in the production floor and warehouse.
• Development – the Intelligent Robotics division develops and builds custom-made robotic cells for the industrial and logistic processes.

Contact: Eyal Cohen, CEO +972-542525925 | eyalc@boscom.com 

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

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

CONSOLIDATED STATEMENTS OF OPERATIONS
U.S. dollars in thousands
		Year ended								Three months ended
		December 31,								December 31,
		2021					2020			2021						2020
		(Unaudited)								(Unaudited)
Revenues		$	33,634			$	33,551			$	9,079				$	10,426
Cost of revenues			27,048				27,433				7,351					8,528
Gross profit			6,586				6,118				1,728					1,898
Operating costs and expenses:
Research and development			208				112				54					41
Sales and marketing			3,955				3,922				1,053					989
General and administrative			1,906				1,747				563					496
Impairment of intangible assets			-				517				-					-
Impairment of Goodwill			-				471				-					-
Total operating costs and expenses			6,069				6,769				1,670					1,526
Operating income (loss)			517				(651	)			58					372
Financial income (expenses), net			(105	)			(348	)			2					(113	)
Other income, net			-				39				-					(11	)
Income before taxes on income (loss)			412				(960	)			60					248
Taxes on income			39				-				40					-
Net income (loss)			451			$	(960	)		$	100				$	248
Basic net income (loss) per share		$	0.09			$	(0.22	)		$	0.02				$	0.06
Diluted net income (loss) per share		$	0.08			$	(0.22	)		$	0.02				$	0.06
Weighted average number of shares used in computing basic net income per share			5,212				4,298				5,301					4,346
Weighted average number of shares used in computing diluted net income per share			5,424				4,298				5,438					4,350
Number of outstanding shares as of December 31, 2021 and 2020			5,251				4,391				5,251					4,396

CONSOLIDATED BALANCE SHEETS
(U.S. dollars in thousands)
		December 31, 2021				December 31, 2020
		(Unaudited)				(Audited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents		$	1,875			$	1,036
Restricted cash deposits			242				140
Trade receivables			9,209				9,172
Other accounts receivable and prepaid expenses			977				1,311
Inventories			5,567				4,871
Total current assets			17,870				16,530
LONG-TERM ASSETS			150				59
PROPERTY AND EQUIPMENT, NET			1,097				956
OPERATING LEASE RIGHT-OF-USE ASSETS, NET			944				767
OTHER INTANGIBLE ASSETS, NET			20				40
GOODWILL			4,676				4,676
Total assets		$	24,757			$	23,028

CONSOLIDATED BALANCE SHEETS
(U.S. dollars in thousands)
		December31,2021			December 31,2020
		(Unaudited)			(Audited)
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Current maturities of long term loans		$	740		$	815
Operating lease liabilities, current			538			557
Trade payables			5,200			5,492
Employees and payroll accruals			996			985
Deferred revenues			917			601
Advances net of inventory in process			249			68
Accrued expenses and other liabilities			112			391
Total current liabilities			8,752			8,909
LONG-TERM LIABILITIES:
Long-term loans, net of current maturities			681			1,216
Operating lease liabilities, non-current			565			367
Long term deferred revenues			132			303
Accrued severance pay			280			364
Total long-term liabilities			1,658			2,250
TOTAL SHAREHOLDERS' EQUITY			14,347			11,869
Total liabilities and shareholders' equity		$	24,757		$	23,028

CONDENSED CONSOLIDATED EBITDA
(U.S. dollars in thousands)
		Year endedDecember 31,							Three months endedDecember 31,
		2021			2020				2021			2020
Operating income (loss)		$	517		$	(651	)		$	58			$	372
Add:
Impairment of Goodwill and other intangible assets			-			988				-				-
Amortization of intangible assets			20			40				5				4
Stock-based compensation			67			65				23				8
Depreciation			238			270				63				62
EBITDA		$	842		$	712			$	149			$	446

        

SEGMENT INFORMATION
(U.S. dollars in thousands)
	RFID			Supply Chain Solutions				IntelligentRobotics				Intercompany				Consolidated
								Year ended December 31,2021
Revenues	$	13,192		$	19,008				1,576			$	(142	)		$	33,634
Gross profit		3,338			3,708				(460	)			-				6,586
Allocated operating expenses		2,300			2,497				573				-				5,370
Unallocated operating expenses*		-			-				-								699
Income (loss) from operations	$	1,038		$	1,211			$	(1,033	)			-				517
Financial expenses and																	(105	)
tax on income																	39
Net income																$	451

		RFID					SupplyChain Solutions			Intelligent Robotics				Intercompany				Consolidated
						Year ended December 31, 2020
Revenues		$	12,523				$	18,594		$	2,502			$	(68	)			$	33,551
Gross profit (loss)			3,265					3,724			(871	)			-					6,118
Allocated operating expenses			2,099					2,373			641				-					5,113
Impairment of goodwill and intangible assets			-					-			988				-					988
			-					-			-
Unallocated operating expenses*																				668
Income (loss) from operations		$	1,166				$	1,351		$	(2,500	)			-					(651
Financial expenses																				(348
Other income																				39
Net loss																			$	(960

SEGMENT INFORMATION(U.S. dollars in thousands)

			RFID					Supply Chain Solutions			Intelligent Robotics						Intercompany					Consolidated
							Three months ended December 31, 2021
Revenues			$	3,999				$	4,840		$	236					$	4					$	9,079
Gross profit (loss)				1,126					1,025			(423		)				-						1,728
Allocated operating expenses				659					709			121						-						1,489
Unallocated operating expenses*																								181
				-					-			-
Income (loss) from operations			$	467				$	316		$	(544		)				-						58
Financial income																								2
Tax on income																								40
Net income																								100

			RFID					Supply Chain Solutions			Intelligent Robotics				Intercompany						Consolidated
							Three months ended December 31, 2020
Revenues			$	3,547				$	4,769		$	2,135			$	(25			)			$	10,426
Gross profit (loss)				1,042					842			14				-							1,898
Allocated operating expenses				575					643			137				-							1,355
Impairment of goodwill and intangible assets				-					-			-				-							-
Unallocated operating expenses*																							201
				-					-			-
Income (loss) from operations			$	467					197		$	(91	)			-							372
Financial expenses																							(113			)
Tax on income																							(11			)
Net loss																						$	248

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