B.O.S. Better Online Solutions (BOSC) 6-K 29 Sep 22 2022 Q2 Report of Foreign Private Issuer Financial data

Document And Entity Information

Document And Entity Information	6 Months Ended
	Jun. 30, 2022
Document Information Line Items
Entity Registrant Name	BOS BETTER ONLINE SOLUTIONS LTD
Document Type	6-K
Current Fiscal Year End Date	--12-31
Amendment Flag	false
Entity Central Index Key	0001005516
Document Period End Date	Jun. 30, 2022
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q2
Entity File Number	001-14184

Condensed Interim Consolidated

Condensed Interim Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
CURRENT ASSETS:
Cash and cash equivalents	$ 1,120	$ 1,875
Restricted bank deposits	130	242
Trade receivables (net of allowance for doubtful accounts of $64 and $123 at June 30, 2022 and December 31 2021, respectively)	10,039	9,209
Other accounts receivable and prepaid expenses	1,324	977
Inventories	5,618	5,567
Total current assets	18,231	17,870
NON-CURRENT ASSETS:
Long-term assets	160	150
Property and equipment, net	1,373	1,097
Operating lease right-of-use assets, net	721	944
Intangible assets, net	548	20
Goodwill	4,895	4,676
Total non-current assets	7,697	6,887
Total assets	25,928	24,757
CURRENT LIABILITIES:
Current maturities of non-current loans	573	740
Operating lease liabilities, current	352	538
Trade payables	6,031	5,200
Employees and payroll accruals	992	996
Deferred revenues	422	917
Advances net of inventory in progress	144	249
Accrued expenses and other liabilities	335	112
Total current liabilities	8,849	8,752
NON-CURRENT LIABILITIES:
Loans, net of current maturities	317	681
Operating lease liabilities, non-current	403	565
Deferred revenues	327	132
Accrued severance pay	249	280
Total non-current liabilities	1,296	1,658
COMMITMENTS AND CONTINGENT LIABILITIES
SHAREHOLDERS’ EQUITY:
Share capital
Ordinary shares: Authorized; 8,000,000 shares at June 30, 2022 and December 31, 2021; Issued and outstanding: 5,701,518 and 5,250,518 shares at June 30, 2022 and December 31, 2021, respectively	84,829	83,835
Additional paid-in capital	989	1,019
Accumulated other comprehensive loss	(243)	(243)
Accumulated deficit	(69,792)	(70,264)
Total equity	15,783	14,347
Total liabilities and shareholders’ equity	$ 25,928	$ 24,757

Condensed Interim Consolidate_2

Condensed Interim Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Trade receivables, allowance for doubtful accounts (in Dollars)	$ 64	$ 123
Ordinary shares, shares authorized	8,000,000	8,000,000
Ordinary shares, shares issued	5,701,518	5,250,518
Ordinary shares, shares outstanding	5,701,518	5,250,518

Condensed Interim Consolidate_3

Condensed Interim Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Income Statement [Abstract]
Revenues	$ 21,138	$ 16,557
Cost of revenues	16,667	13,274
Gross profit	4,471	3,283
Operating costs and expenses:
Research and development	87	114
Sales and marketing	2,384	1,929
General and administrative	999	877
Total operating costs and expenses	3,470	2,920
Operating income	1,001	363
Financial expenses, net	(529)	(98)
Income before taxes on income	472	265
Taxes on income		(1)
Net income	$ 472	$ 264
Basic and diluted net income per share (in Dollars per share)	$ 0.09	$ 0.05
Weighted average number of shares used in computing net income per share:
Basic (in Shares)	5,395,175	5,188,341
Diluted (in Shares)	5,437,929	5,365,243

Condensed Interim Consolidate_4

Condensed Interim Consolidated Statements of Operations (Unaudited) (Parentheticals) - $ / shares	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Income Statement [Abstract]
Basic and diluted net income per share (in Dollars per share)	$ 0.09	$ 0.05

Consolidated Interim Consolidat

Consolidated Interim Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Statement of Comprehensive Income [Abstract]
Net income	$ 472	$ 264
Cash flow hedging instruments:
Change in unrealized gains and losses
Gain in respect of derivative instruments designated for cash flow hedge, net of taxes
Other comprehensive gain
Comprehensive income	$ 472	$ 264

Condensed Interim Consolidate_5

Condensed Interim Consolidated Statements of Changes in Shareholders’ Equity - USD ($) $ in Thousands	Ordinary shares	Share capital and additional paid-in capital	Accumulated other comprehensive loss	Accumulated deficit	Total
Balance at Dec. 31, 2020		$ 82,827	$ (243)	$ (70,715)	$ 11,869
Balance (in Shares) at Dec. 31, 2020	4,391,163
Issuance of ordinary shares and warrants, net		1,841			1,841
Issuance of ordinary shares and warrants, net (in Shares)	807,188
Exercise of options into ordinary shares		59			59
Exercise of options into ordinary shares (in Shares)	25,399
Share-based compensation expense		32			32
Net income				264	264
Balance at Jun. 30, 2021		84,759	(243)	(70,451)	14,065
Balance (in Shares) at Jun. 30, 2021	5,223,750
Balance at Dec. 31, 2021		84,854	(243)	(70,264)	14,347
Balance (in Shares) at Dec. 31, 2021	5,250,518
Issuance of ordinary shares and warrants, net		911			911
Issuance of ordinary shares and warrants, net (in Shares)	450,000
Exercise of options into ordinary shares		2			2
Exercise of options into ordinary shares (in Shares)	1,000
Share-based compensation expense		51			51
Net income				472	472
Balance at Jun. 30, 2022		$ 85,818	$ (243)	$ (69,792)	$ 15,783
Balance (in Shares) at Jun. 30, 2022	5,701,518

Condensed Interim Consolidate_6

Condensed Interim Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands			6 Months Ended
		Mar. 09, 2022	Jun. 30, 2022	Jun. 30, 2021
Cash flows from operating activities:
Net income			$ 472	$ 264
Adjustments required to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			164	121
Interest and exchange rate of loans			(133)	(29)
Severance pay, net			(31)	(35)
Share-based compensation expenses			51	32
Increase in trade receivables, net			(830)	(848)
Decrease (Increase) in other accounts receivable and other long term assets			(357)	255
Decrease (Increase) in inventories			(156)	189
Increase (decrease) in trade payables			831	(39)
Decrease in operating lease liabilities			(124)	(28)
Decrease in employees and payroll accruals, deferred revenues, accrued expenses and other liabilities			(218)	(380)
Net cash used in operating activities			(331)	(498)
Cash flows to investing activities:
Purchase of property and equipment			(394)	(246)
Acquisition of assets (b)			(656)
Net cash used in investing activities			(1,050)	(246)
Cash flows from financing activities:
Proceeds received from issuance units that consist of ordinary shares and warrants, net			913	1,841
Proceeds received from issuance of shares upon options exercised, net				59
Proceeds received from loans				129
Repayment of loans			(399)	(393)
Net cash provided by financing activities			514	1,636
Change in cash and cash equivalents, and restricted cash			(867)	892
Cash, cash equivalents and restricted cash at the beginning of the period			2,117	1,176
Cash, cash equivalents and restricted cash at the end of the period			1,250	2,068
(a) Cash paid during the period for:
Interest			$ 19	$ 31
Goodwill		220
Customer relationship		304
Non-competition		269
Acquisition of assets	[1]	$ 793
[1]As of June 30, 2022, an amount of 656 was paid in cash.

General

General	6 Months Ended
	Jun. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
GENERAL	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, 2022, 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. On March 11, 2020, the World Health Organization declared the COVID-19 outbreak a global pandemic. The outbreak has reached all of the regions in which we do business, and governmental authorities around the world have implemented numerous measures attempting to contain and mitigate the effects of the virus, including travel bans and restrictions, border closings, quarantines, shelter-in-place orders, shutdowns, limitations or closures of non-essential businesses, and social distancing requirements. The global spread of COVID-19 and actions taken in response have caused and may continue to cause disruptions and/or delays in our supply chain, shipments, and caused significant economic and business disruption to our customers and vendors. The extent of the impact of COVID-19 on our business and results of operations will depend on future developments, which are highly uncertain, including the duration and severity of the outbreak, the effects of subsequent waves of COVID-19, the ability to maintain our supply chain and restrictions on our business and personnel that may be imposed by governmental rules and regulations implemented to contain or treat COVID-19. Management is monitoring and assessing the impact of the COVID-19 pandemic daily, including recommendations and orders issued by government and public health authorities.

Significant Accounting Policies

Significant Accounting Policies	6 Months Ended
	Jun. 30, 2022
Significant Accounting Policies [Abstract]
SIGNIFICANT ACCOUNTING POLICIES	NOTE 2: SIGNIFICANT ACCOUNTING POLICIES The significant accounting policies applied in the financial statements of the Company as of December 31, 2021, were applied consistently in these financial statements. A. Use of estimates in the preparation of financial statements The preparation of 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 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 (vi) revenue recognition. B. Income per share The Company computes net income per share in accordance with ASC 260, “Earnings per share”. Basic income per share is computed by dividing net loss 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 income per ordinary share is computed similar to basic income 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 additional ordinary shares were dilutive. Potential ordinary shares are excluded from the computation for a period in which a net income is reported or if their effect is anti-dilutive. An amount of 1.2 million and 47,500 weighted average outstanding options and warrants have been excluded from the calculation of the diluted net income per share for the period of six months ended June 30, 2022 and 2021, 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. C. Reclassified amounts Certain prior year amounts have been reclassified for consistency with the current year presentation. These reclassifications did not have material effect on the reported results of operations, shareholder’s equity or cash flows. D. Recently issued accounting pronouncements There are currently no accounting standards that have been issued but not yet adopted that we believe will have a significant impact on our unaudited condensed consolidated financial position, results of operations or cash flows.

Unaudited Condensed Interim Con

Unaudited Condensed Interim Consolidated Financial Statements	6 Months Ended
	Jun. 30, 2022
Unaudited Condensed Interim Consolidated Financial Statements [Abstract]
UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS	NOTE 3: UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS These accompanying unaudited condensed interim consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States 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, 2022 have been included. Operating results for the six-month period ended June 30, 2022 are not necessarily indicative of the results that may be expected for the year ended December 31, 2022, or any other interim period in the future. The consolidated balance sheet at December 31, 2021 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, 2021 included in the Company’s Annual Report on Form 20-F, filed with the Securities Exchange Commission on March 31, 2022.

Inventories

Inventories	6 Months Ended
	Jun. 30, 2022
Inventory Disclosure [Abstract]
INVENTORIES	NOTE 4:- INVENTORIES Composition: June 30, 2022 December 31, 2021 Unaudited Audited Raw materials $ 117 $ 178 Inventory in progress 1,684 1,658 Finished goods 4,405 4,673 Net – advances from customers (588 ) (942 ) $ 5,618 $ 5,567

Goodwill and Intangible Assets,

Goodwill and Intangible Assets, Net	6 Months Ended
	Jun. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
GOODWILL AND INTANGIBLE ASSETS, NET	NOTE 5:- GOODWILL AND INTANGIBLE ASSETS, NET A. Composition: June 30, 2022 December 31, Weighted Unaudited Audited Cost: Brand name 946 946 4.1 Customer list 2,450 2,450 2.5 Software 111 111 3 Customer relationship 1,032 728 7-8.84 Non-competition 270 - 4 Backlog 117 117 4,926 4,352 Accumulated amortization and impairments: Brand name 946 946 Customer list 2,450 2,450 Software 111 111 Customer relationship 731 708 Non-competition 23 - Backlog 117 117 4,378 4,332 Amortized cost $ 548 $ 20 B. Amortization expenses amounting to $45 and $20 were recorded during the period of six months ended June 30, 2022 and the year ended December 31, 2021, respectively. C. The changes in the carrying amount of goodwill for the period ended June 30, 2022 are as follows: Goodwill Balance as of December 31,2021 4,676 Changes during six months ended June 30, 2022 : Recognition of goodwill 219 Balance as of June 30, 2022 $ 4,895 On March 09, 2022, the Company’s RFID division acquired the assets of Dagesh Ltd., which provides inventory counting services in Israel, mainly for retail stores. In consideration for the acquisition, BOS shall pay NIS 2.3 million (approximately $700) of which NIS 1.5 million was paid at closing, NIS 700,000 was paid in April 2022, and NIS 100,000 shall be paid by March 2023. In addition, BOS shall pay to Dagesh, by March 2023 : An earn-out payment of 3%-6% of the revenues of the acquired assets in the 12 months ending February 28, 2023, provided that these revenues are in excess of NIS 2.5 million; and NIS 100,000, subject to the retention of at least 50% of the employees of Dagesh by BOS. The Company estimates the additional amounts detailed above to be approximately $93. The total cost of the acquisition is estimated at $793. As part of the purchase price allocation for the acquisition, the Company recorded goodwill in the amount of $219. Goodwill reflects the value or premium of the acquisition price in excess of the fair values assigned to specific tangible and intangible assets. Goodwill has an indefinite useful life and therefore is not amortized as an expense (the goodwill balance is not deductible for income tax purposes), but is reviewed annually for impairment of its fair value to the Company. The purchase price intrinsically recognizes the benefits of the broadened depth of new markets and management team and is primarily attributable to expected synergies. The acquired business operations was determined to be included in the RFID segment .

Leases

Leases	6 Months Ended
	Jun. 30, 2022
Leases [Abstract]
LEASES	NOTE 6– LEASES We have entered into several non-cancellable operating lease agreements for our offices and vehicles. Our leases have original lease periods expiring between 2022 and 2026. Payments due under such lease contracts include primarily fix payments. We assume renewals in our determination of the lease term. Our 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 June 30, (unaudited) Operating lease cost: Vehicles 126 Facilities rent 154 280 Remaining Lease Term Vehicles 0.09-2.18 years Facilities rent 0.26-4.26 years Weighted Average Discount Rate Vehicles 3.36 % Facilities rent 3.36 % The following is a schedule, by years, of maturities of operating lease liabilities as of June 30, 2022: June 30, (unaudited) Period: The remainder of 2022 220 2023 289 2024 155 2025 93 2026 39 Total operating lease payments 796 Less: imputed interest 41 Present value of lease liabilities 755

Segments and Geographical Infor

Segments and Geographical Information	6 Months Ended
	Jun. 30, 2022
Segment Reporting [Abstract]
SEGMENTS AND GEOGRAPHICAL INFORMATION	NOTE 7: - SEGMENTS AND GEOGRAPHICAL INFORMATION Until December 31, 2019, the Company presented two reportable segments consisting of the Intelligent Robotics and RFID Division segment and the Supply Chain Solutions segment. Commencing January 1, 2020 the Company decided to review its business operations in three reportable segments, consisting of the RFID segment, Supply Chain Solutions segment and the Intelligent Robotics segment. Previous presentation was adjusted to conform to the current presentation. 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. The Company applies ASC 280, Segment Reporting a. Information about the operating segments for the six months ended June 30, 2022 and 2021 is as follows: RFID Supply Chain Solutions Intelligent Robotics Intercompany Consolidated Six months ended June 30, 2022: Revenues $ 7,693 $ 12,873 $ 572 $ - $ 21,138 Gross profit $ 1,915 $ 2,575 $ (19 ) $ - $ 4,471 Allocated operating expenses $ 1,209 $ 1,585 $ 271 $ - $ 3,065 Acquisition expenses $ 44 $ 44 Unallocated operating expenses $ 361 Operating Income (loss) $ 662 $ 990 $ (290 ) $ - $ 1,001 Financial expenses $ (529 ) Net Income before tax - - - - $ 472 Tax on income - - - - $ - Net Income - - - - $ 472 RFID Supply Chain Solutions Intelligent Robotics Intercompany Consolidated Six months ended June 30, 2021: Revenues $ 6,322 $ 9,249 $ 1,036 $ (50 ) $ 16,557 Gross profit $ 1,553 $ 1,699 $ 31 $ - $ 3,283 Allocated operating expenses $ 1,112 $ 1,148 $ 336 $ - $ 2,596 Unallocated operating expenses $ 324 Income (loss) from operations $ 441 $ 551 $ (305 ) $ - $ 363 Financial expenses - - - - $ (98 ) Net Income before tax - - - - $ 265 Tax on income - - - - $ (1 ) Net Income - - - - $ 264 b. The following presents total revenues for the six months ended June 30, 2022 and 2021 based on the location of customers: June 30, 2022 2021 Unaudited Israel $ 16,686 $ 12,493 Far East 1,536 2,169 India 641 593 Europe 399 250 United States 1,733 1,052 Others 143 - $ 21,138 $ 16,557

Shareholders' Equity

Shareholders' Equity	6 Months Ended
	Jun. 30, 2022
Stockholders' Equity Note [Abstract]
SHAREHOLDERS' EQUITY	NOTE 8: SHAREHOLDERS’ EQUITY a. In April 2022, a total of 1,000 options were exercised for the amount of $2. b. On May 2, 2022, the Company entered into a definitive agreement with several investors for the sale of 450,000 units, each consisting of one ordinary share and one half warrant to purchase an ordinary share, at a unit purchase price of $2.2. The warrants have an exercise price of $2.2 per ordinary share and are immediately exercisable into ordinary shares over a five-year term. The sale was made in a registered direct offering with a total gross amount of $990 or $911 net of incremental and direct issuance expenses. c. In June 2021, a total of 25,399 options were exercised for the amount of $59. d. On March 31, 2021, the Company issued 7,188 ordinary shares (equivalent to $27) to an officer of the Company as a bonus, which was approved by the Board of Directors and shareholders. e. On January 4, 2021, the Company entered into a definitive agreement with several institutional investors for the sale of 800,000 units, each consisting of one ordinary share and 0.9 of a warrant to purchase an ordinary share at a combined purchase price of $2.5. The warrants have an exercise price of $2.75 per share and are immediately exercisable into ordinary shares over a five-year term. The sale was made in a registered direct offering with a total gross amount of $2,000 or $1,841 net of incremental and direct issuance expenses.

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2022
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 9: SUBSEQUENT EVENTS a. On May 9, 2022, the Company entered into an agreement to purchase 546 square meters of offices, 495 square meters of warehouse space and nine parking spaces in Rishon Lezion. The purchased real estate is part of the facilities leased by BOS in Rishon Lezion. BOS paid NIS 6.5 million (approximately $1.9 million) for this purchase. 10% of the purchase price was paid on signing and the balance on September 1, 2022, on which date ownership of these assets was registered under the name of the Company.

Accounting Policies, by Policy

Accounting Policies, by Policy (Policies)	6 Months Ended
	Jun. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Use of estimates in the preparation of financial statements	A. Use of estimates in the preparation of financial statements The preparation of 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 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 (vi) revenue recognition.
Income per share	B. Income per share The Company computes net income per share in accordance with ASC 260, “Earnings per share”. Basic income per share is computed by dividing net loss 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 income per ordinary share is computed similar to basic income 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 additional ordinary shares were dilutive. Potential ordinary shares are excluded from the computation for a period in which a net income is reported or if their effect is anti-dilutive. An amount of 1.2 million and 47,500 weighted average outstanding options and warrants have been excluded from the calculation of the diluted net income per share for the period of six months ended June 30, 2022 and 2021, 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.
Reclassified amounts	C. Reclassified amounts Certain prior year amounts have been reclassified for consistency with the current year presentation. These reclassifications did not have material effect on the reported results of operations, shareholder’s equity or cash flows.
Recently issued accounting pronouncements	D. Recently issued accounting pronouncements There are currently no accounting standards that have been issued but not yet adopted that we believe will have a significant impact on our unaudited condensed consolidated financial position, results of operations or cash flows.

Inventories (Tables)

Inventories (Tables)	6 Months Ended
	Jun. 30, 2022
Inventory Disclosure [Abstract]
Schedule of inventories	June 30, 2022 December 31, 2021 Unaudited Audited Raw materials $ 117 $ 178 Inventory in progress 1,684 1,658 Finished goods 4,405 4,673 Net – advances from customers (588 ) (942 ) $ 5,618 $ 5,567

Goodwill and Intangible Asset_2

Goodwill and Intangible Assets, Net (Tables)	6 Months Ended
	Jun. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of goodwill and intangible assets	June 30, 2022 December 31, Weighted Unaudited Audited Cost: Brand name 946 946 4.1 Customer list 2,450 2,450 2.5 Software 111 111 3 Customer relationship 1,032 728 7-8.84 Non-competition 270 - 4 Backlog 117 117 4,926 4,352 Accumulated amortization and impairments: Brand name 946 946 Customer list 2,450 2,450 Software 111 111 Customer relationship 731 708 Non-competition 23 - Backlog 117 117 4,378 4,332 Amortized cost $ 548 $ 20
Schedule of carrying amount of goodwill	Goodwill Balance as of December 31,2021 4,676 Changes during six months ended June 30, 2022 : Recognition of goodwill 219 Balance as of June 30, 2022 $ 4,895

Leases (Tables)

Leases (Tables)	6 Months Ended
	Jun. 30, 2022
Leases [Abstract]
Schedule of lease costs, lease term and discount rate	Six Months June 30, (unaudited) Operating lease cost: Vehicles 126 Facilities rent 154 280 Remaining Lease Term Vehicles 0.09-2.18 years Facilities rent 0.26-4.26 years Weighted Average Discount Rate Vehicles 3.36 % Facilities rent 3.36 %
Schedule of maturities of operating lease liabilities	June 30, (unaudited) Period: The remainder of 2022 220 2023 289 2024 155 2025 93 2026 39 Total operating lease payments 796 Less: imputed interest 41 Present value of lease liabilities 755

Segments and Geographical Inf_2

Segments and Geographical Information (Tables)	6 Months Ended
	Jun. 30, 2022
Segment Reporting [Abstract]
Schedule of operating segments	RFID Supply Chain Solutions Intelligent Robotics Intercompany Consolidated Six months ended June 30, 2022: Revenues $ 7,693 $ 12,873 $ 572 $ - $ 21,138 Gross profit $ 1,915 $ 2,575 $ (19 ) $ - $ 4,471 Allocated operating expenses $ 1,209 $ 1,585 $ 271 $ - $ 3,065 Acquisition expenses $ 44 $ 44 Unallocated operating expenses $ 361 Operating Income (loss) $ 662 $ 990 $ (290 ) $ - $ 1,001 Financial expenses $ (529 ) Net Income before tax - - - - $ 472 Tax on income - - - - $ - Net Income - - - - $ 472 RFID Supply Chain Solutions Intelligent Robotics Intercompany Consolidated Six months ended June 30, 2021: Revenues $ 6,322 $ 9,249 $ 1,036 $ (50 ) $ 16,557 Gross profit $ 1,553 $ 1,699 $ 31 $ - $ 3,283 Allocated operating expenses $ 1,112 $ 1,148 $ 336 $ - $ 2,596 Unallocated operating expenses $ 324 Income (loss) from operations $ 441 $ 551 $ (305 ) $ - $ 363 Financial expenses - - - - $ (98 ) Net Income before tax - - - - $ 265 Tax on income - - - - $ (1 ) Net Income - - - - $ 264
Schedule of total revenues	June 30, 2022 2021 Unaudited Israel $ 16,686 $ 12,493 Far East 1,536 2,169 India 641 593 Europe 399 250 United States 1,733 1,052 Others 143 - $ 21,138 $ 16,557

Significant Accounting Polici_2

Significant Accounting Policies (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Weighted average outstanding amount (in Dollars)	$ 1.2
Weighted average outstanding	47,500	47,500

Inventories (Details) - Schedul

Inventories (Details) - Schedule of inventories - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Schedule Of Inventories [Abstract]
Raw materials	$ 117	$ 178
Inventory in progress	1,684	1,658
Finished goods	4,405	4,673
Net – advances from customers	(588)	(942)
Inventories	$ 5,618	$ 5,567

Goodwill and Intangible Asset_3

Goodwill and Intangible Assets, Net (Details) $ in Thousands	1 Months Ended		6 Months Ended
	Mar. 31, 2023 ILS (₪)	Apr. 30, 2022 ILS (₪)	Jun. 30, 2022 USD ($)	Jun. 30, 2022 ILS (₪)	Jun. 30, 2021 USD ($)
Goodwill and Intangible Assets, Net (Details) [Line Items]
Amortization expenses | $			$ 45		$ 20
Consideration acquisition payment		₪ 700,000	$ 700	₪ 2,300,000
Closing consideration acquisition payment | ₪				₪ 1,500,000
Retention percentage			50%	50%
Additional amounts estimated | $			$ 93
Total cost of the acquisition | $			793
Goodwill | $			$ 219
Minimum [Member]
Goodwill and Intangible Assets, Net (Details) [Line Items]
Earn out payment percentage			3%	3%
Excess revenues | ₪				₪ 100,000
Maximum [Member]
Goodwill and Intangible Assets, Net (Details) [Line Items]
Earn out payment percentage			6%	6%
Excess revenues | ₪				₪ 2,500,000
Forecast [Member]
Goodwill and Intangible Assets, Net (Details) [Line Items]
Consideration acquisition payment | ₪	₪ 100,000

Goodwill and Intangible Asset_4

Goodwill and Intangible Assets, Net (Details) - Schedule of goodwill and intangible assets - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	Dec. 31, 2021
Cost:
Total cost	$ 4,926	$ 4,352
Accumulated amortization and impairments:
Total accumulated amortization	4,378	4,332
Amortized cost	548	20
Brand name [Member]
Cost:
Total cost	$ 946	946
Weighted average amortization period	4 years 1 month 6 days
Accumulated amortization and impairments:
Total accumulated amortization	$ 946	946
Customer list [Member]
Cost:
Total cost	$ 2,450	2,450
Weighted average amortization period	2 years 6 months
Accumulated amortization and impairments:
Total accumulated amortization	$ 2,450	2,450
Software [Member]
Cost:
Total cost	$ 111	111
Weighted average amortization period	3 years
Accumulated amortization and impairments:
Total accumulated amortization	$ 111	111
Customer relationship [Member]
Cost:
Total cost	1,032	728
Accumulated amortization and impairments:
Total accumulated amortization	$ 731	708
Customer relationship [Member] | Minimum [Member]
Cost:
Weighted average amortization period	7 years
Customer relationship [Member] | Maximum [Member]
Cost:
Weighted average amortization period	8 years 10 months 2 days
Non-competition [Member]
Cost:
Total cost	$ 270
Weighted average amortization period	4 years
Accumulated amortization and impairments:
Total accumulated amortization	$ 23
Backlog [Member]
Cost:
Total cost	117	117
Accumulated amortization and impairments:
Total accumulated amortization	$ 117	$ 117

Goodwill and Intangible Asset_5

Goodwill and Intangible Assets, Net (Details) - Schedule of carrying amount of goodwill $ in Thousands	6 Months Ended
	Jun. 30, 2022 USD ($)
Schedule Of Carrying Amount Of Goodwill Abstract
Balance as of December 31,2021	$ 4,676
Changes during six months ended June 30, 2022 :
Recognition of goodwill	219
Balance as of June 30,2022	$ 4,895

Leases (Details) - Schedule of

Leases (Details) - Schedule of lease costs, lease term and discount rate $ in Thousands	6 Months Ended
	Jun. 30, 2022 USD ($)
Operating lease cost:
Vehicles (in Dollars)	$ 126
Facilities rent (in Dollars)	154
Operating lease cost (in Dollars)	$ 280
Weighted Average Discount Rate
Vehicles	3.36%
Facilities rent	3.36%
Minimum [Member]
Remaining Lease Term
Vehicles	1 month 2 days
Facilities rent	3 months 3 days
Maximum [Member]
Remaining Lease Term
Vehicles	2 years 2 months 4 days
Facilities rent	4 years 3 months 3 days

Leases (Details) - Schedule o_2

Leases (Details) - Schedule of maturities of operating lease liabilities $ in Thousands	Jun. 30, 2022 USD ($)
Period:
The remainder of 2022	$ 220
2023	289
2024	155
2025	93
2026	39
Total operating lease payments	796
Less: imputed interest	41
Present value of lease liabilities	$ 755

Segments and Geographical Inf_3

Segments and Geographical Information (Details) - Schedule of operating segments - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
RFID [Member]
Segment Reporting Information [Line Items]
Revenues	$ 7,693	$ 6,322
Gross profit	1,915	1,553
Allocated operating expenses	1,209	1,112
Acquisition expenses	44
Unallocated operating expenses
Operating Income (loss)	662	441
Financial expenses
Net Income before tax
Tax on income
Net Income
Supply Chain Solutions [Member]
Segment Reporting Information [Line Items]
Revenues	12,873	9,249
Gross profit	2,575	1,699
Allocated operating expenses	1,585	1,148
Unallocated operating expenses
Operating Income (loss)	990	551
Financial expenses
Net Income before tax
Tax on income
Net Income
Intelligent Robotics [Member]
Segment Reporting Information [Line Items]
Revenues	572	1,036
Gross profit	(19)	31
Allocated operating expenses	271	336
Unallocated operating expenses
Operating Income (loss)	(290)	(305)
Financial expenses
Net Income before tax
Tax on income
Net Income
Consolidated [Member]
Segment Reporting Information [Line Items]
Revenues	21,138	16,557
Gross profit	4,471	3,283
Allocated operating expenses	3,065	2,596
Acquisition expenses	44
Unallocated operating expenses	361	324
Operating Income (loss)	1,001	363
Financial expenses	(529)	(98)
Net Income before tax	472	265
Tax on income		(1)
Net Income	472	264
Intercompany [Member]
Segment Reporting Information [Line Items]
Revenues		(50)
Gross profit
Allocated operating expenses
Unallocated operating expenses
Operating Income (loss)
Financial expenses
Net Income before tax
Tax on income
Net Income

Segments and Geographical Inf_4

Segments and Geographical Information (Details) - Schedule of total revenues - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenues	$ 21,138	$ 16,557
Israel [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenues	16,686	12,493
Far East [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenues	1,536	2,169
India [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenues	641	593
Europe [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenues	399	250
United States [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenues	1,733	1,052
Others [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenues	$ 143

Shareholders' Equity (Details)

Shareholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands				1 Months Ended
	May 02, 2022	Apr. 08, 2022	Jan. 04, 2021	Jun. 30, 2021	Mar. 31, 2021
Shareholders' Equity (Details) [Line Items]
Issuance of ordinary shares (in Shares)		1,000
Bonus amount		$ 2			$ 27
Ordinary shares (in Shares)	450,000
Purchase price per shares (in Dollars per share)	$ 2.2
Exercise price per shares (in Dollars per share)	$ 2.2
Total amount	$ 990
Net issuance expenses	$ 911
Exercise of options				$ 59
Agreement, description			On January 4, 2021, the Company entered into a definitive agreement with several institutional investors for the sale of 800,000 units, each consisting of one ordinary share and 0.9 of a warrant to purchase an ordinary share at a combined purchase price of $2.5.  The warrants have an exercise price of $2.75 per share and are immediately exercisable into ordinary shares over a five-year term. The sale was made in a registered direct offering with a total gross amount of $2,000 or $1,841 net of incremental and direct issuance expenses.
Ordinary Shares [Member]
Shareholders' Equity (Details) [Line Items]
Issuance of ordinary shares (in Shares)					7,188
Exercise of options				$ 25,399

Subsequent Events (Details)

Subsequent Events (Details) - May 09, 2022 ₪ in Millions, $ in Millions	USD ($)	ILS (₪)
Subsequent Events [Abstract]
Purchase to agreement, description	the Company entered into an agreement to purchase 546 square meters of offices, 495 square meters of warehouse space and nine parking spaces in Rishon Lezion.	the Company entered into an agreement to purchase 546 square meters of offices, 495 square meters of warehouse space and nine parking spaces in Rishon Lezion.
Purchase amount	$ 1.9	₪ 6.5
Percentage of assets purchased	10%	10%