BOSC BOS Better Online Solutions Ltd

BOS Better Online Solutions Ltd. ("BOS" or the "Company") (NASDAQ: BOSC) reported its financial results for the first quarter of the year 2022.

Revenues for the first quarter of 2022 increased by 47% to $10.8 million compared to $7.3 million in the comparable quarter of last year.

Operating income for the first quarter of 2022 increased by 98% to $465,000 compared to $234,000 in the comparable quarter of last year.

Net income for the first quarter of 2022 increased by 155% to $314,000 or $0.06 per basic share compared to a net income of $123,000 or $0.02 per basic share in the comparable quarter of 2021.

Eyal Cohen, BOS's CEO stated: "I am encouraged by the strong opening of the first quarter of the year 2022. The globally increasing demand for electronic components and the military conflict in Europe were catalysts for the growth of the Supply Chain division. In addition, the increase in the number of logistic centers in Israel and the return of the retail stores to work on a full scale supported the growth of the RFID division. Looking forward, I anticipate that the shortage of workers for production and the logistics operations will be a growth engine for our Intelligent Robotic division."

BOS will host a conference call on Tuesday, May 31, 2022 at 9:00 a.m. EDT - 4:00 p.m., Israel Time. A question-and-answer session will follow the management's presentation.

To access the conference call, please dial one of the following numbers:US: +1-888-281-1167, International: +972-3-9180644.

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

About BOS

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

• Services – The Supply Chain division provides inventory procurement and kitting.
• Integration – the RFID division provides off-the-shelf software and equipment to track and manage inventory in the production floor and warehouse.
• Development – the Intelligent Robotics division develops and builds custom-made robotic cells for 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
		Three months ended						Year ended
	March 31,							December 31,
		2022			2021			2021
		(Unaudited)						(Audited)
Revenues		$10,789			$7,328			$33,634
Cost of revenues		8,537			5,648			27,048
Gross profit		2,252			1,680			6,586
Operating costs and expenses:
Research and development		51			60			208
Sales and marketing		1,150			952			3,955
General and administrative		527			434			1,906
Acquisition expenses		59			-			-
Total operating costs and expenses		1,787			1,446			6,069
Operating Income		465			234			517
Financial expenses, net		(151	)		(111	)		(105	)
Income before taxes on income		314			123			412
Taxes on income		-			-			39
Net income	$	314		$	123		$	451
Basic net income per share	$	0.06		$	0.02		$	0.09
Diluted net income per share	$	0.06		$	0.02		$	0.08
Weighted average number of shares used in computing basic net income per share		5,251			5,157			5,212
Weighted average number of shares used in computing diluted net income per share		5,291			5,185			5,424
Number of outstanding shares as of March 31, 2022 and 2021 and December 31, 2021		5,251			5,185			5,251

CONSOLIDATED BALANCE SHEETS
(U.S. dollars in thousands)
		March 31, 2022		December 31, 2021
		(Unaudited)		(Audited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	1,300	$	1,875
Restricted bank deposits		239		242
Trade receivables		10,552		9,209
Other accounts receivable and prepaid expenses		1,408		977
Inventories		5,541		5,567
Total current assets		19,040		17,870
LONG-TERM ASSETS		135		150
PROPERTY AND EQUIPMENT, NET		1,073		1,097
OPERATING LEASE RIGHT-OF-USE ASSETS, NET		858		944
OTHER INTANGIBLE ASSETS, NET		580		20
GOODWILL		4,895		4,676
Total assets	$	26,581	$	24,757

CONSOLIDATED BALANCE SHEETS
(U.S. dollars in thousands)
		March 31, 2022		December 31, 2021
		(Unaudited)		(Audited)
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Current maturities of long term loans	$	670	$	740
Operating lease liabilities, current		475		538
Trade payables		6,711		5,200
Employees and payroll accruals		1,118		996
Deferred revenues		455		917
Advances net of inventory in process		371		249
Accrued expenses and other liabilities		333		112
Total current liabilities		10,133		8,752
LONG-TERM LIABILITIES:
Long-term loans, net of current maturities		505		681
Operating lease liabilities, non-current		518		565
Long term deferred revenues		465		132
Accrued severance pay		273		280
Total long-term liabilities		1,761		1,658
TOTAL SHAREHOLDERS' EQUITY		14,687		14,347
Total liabilities and shareholders' equity	$	26,581	$	24,757

CONDENSED CONSOLIDATED EBITDA
(U.S. dollars in thousands)
		Three months ended				Year ended
		March 31,				December 31,
		2022		2021		2021
Operating income	$	465	$	234	$	517
Add:
Amortization of intangible assets		14		5		20
Stock-based compensation		25		15		67
Depreciation		58		54		238
EBITDA	$	562	$	308	$	842

SEGMENT INFORMATION
(U.S. dollars in thousands)
		RFID		Supply Chain solutions		Intelligent Robotics			Intercompany			Consolidated
						Three months ended March 31,
						2022
Revenues	$	4,103	$	6,508		178		$	-		$	10,789
Gross profit		1,031		1,244		-23			-			2,252
Allocated operating expenses		627		776		141			-			1,544
Acquisition expenses		59		-		-						59
Unallocated operating expenses*		-		-		-						184
Income (loss) from operations	$	345	$	468	$	(164	)		-			465
Financial expenses												(151	)
Net income											$	314

		RFID		Supply Chain Solutions		Intelligent Robotics			Intercompany			Consolidated
					Three months ended March 31,
					2021
Revenues	$	2,948	$	3,954	$	454		$	(28	)	$	7,328
Gross profit		848		648		184			-			1,680
Allocated operating expenses		545		535		198			-			1,278
Unallocated operating expenses*		-		-		-						169
Income (loss) from operations	$	303	$	113	$	(14	)		-		$	234
Financial expenses												(111	)
tax on income
Net income												123
		RFID		Supply Chain Solutions		Intelligent Robotics			Intercompany			Consolidated
					Year ended December 31,
					2021
Revenues	$	13,192	$	19,008	$	1,576		$	(142	)	$	33,634
Gross profit (loss)		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												(105	)
tax on income												39
Net income											$	451