6-K/A

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6 - K/A

Report of Foreign Private Issuer

Pursuant to Rule 13a - 16 or 15d -16

Under the Securities Exchange Act of 1934

For the Month of November 2019

Commission file number 001-14184

B.O.S. Better Online Solutions Ltd.

(Translation of Registrant’s Name into English)

20 Freiman Street, Rishon LeZion, 7535825, Israel

(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

Form 20-F ☒         Form 40-F ☐

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): ___________

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): ___________

B.O.S. Better Online Solutions Ltd.

This Form 6-K/A, including the exhibits, is 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into all effective registration statements, filed by us under the Securities Act of 1933, as amended, to the extent not superseded by documents or reports subsequently filed or furnished.

Attached hereto are the following exhibits:

99.1	Unaudited Condensed Interim Consolidated Financial Statements of the Registrant as of June 30, 2019.
99.2	Management’s Discussion and Analysis of Results of Operations and Financial Condition for the Six Months ended June 30, 2019 and June 30, 2018.

1

SIGNATURE

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.

B.O.S. Better Online Solutions Ltd.
(Registrant)
By:	/s/ Eyal Cohen
	Eyal Cohen
	Co-Chief Executive Officer and Chief Financial Officer

Dated: November 25, 2019

2

EXHIBIT INDEX

EXHIBIT NO.	DESCRIPTION
99.1	Unaudited Condensed Interim Consolidated Financial Statements of the Registrant as of June 30, 2019.
99.2	Management’s Discussion and Analysis of Results of Operations and Financial Condition for the Six Months ended June 30, 2019 and June 30, 2018.

3

EX-99.1

Exhibit 99.1

B.O.S. BETTER ONLINE SOLUTIONS LTD.

AND ITS SUBSIDIARIES

CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2019

IN U.S. DOLLARS

UNAUDITED

INDEX

	Page
Condensed Interim Consolidated Balance Sheets	F2 - F3
Condensed Interim Consolidated Statements of Operations	F4
Condensed Interim Consolidated Statements of Comprehensive Income (loss)	F5
Condensed Interim Consolidated Statements of Changes in Equity	F6
Condensed Interim Consolidated Statements of Cash Flows	F7 - F8
Notes to Condensed Interim Consolidated Financial Statements	F9 - F17

- - - - - - - - - -

B.O.S. BETTER ONLINE SOLUTIONS LTD.

AND ITS SUBSIDIARIES

CONDENSED INTERIM CONSOLIDATED BALANCE SHEETS

U.S. dollars in thousands

	June 30, 2019		December 31, 2018
	Unaudited		Audited
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	1,435	$	1,410
Restricted bank deposits		327		332
Trade receivables		8,945		8,624
Other accounts receivable and prepaid expenses		1,695		829
Inventories		4,272		2,874
Total current assets		16,674		14,069
LONG TERM ASSETS		165		177
PROPERTY AND EQUIPMENT, NET		1,299		1,108
OPERATING LEASE RIGHT-OF-USE ASSETS, NET		929		-
OTHER INTANGIBLE ASSETS, NET		1,015		81
GOODWILL		5,147		4,676
Total assets	$	25,229	$	20,111

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, 2019			December 31, 2018
	Unaudited			Audited
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES:
Current maturities of long term loans	$	634		$	467
Operating lease liabilities, current		527			-
Trade payables		5,527			4,106
Employees and payroll accruals		822			778
Deferred revenues		819			768
Advances net of inventory in progress		57			-
Accrued expenses and other liabilities		222			313
Total current liabilities		8,608			6,432
LONG-TERM LIABILITIES:
Long-term loans, net of current maturities		2,280			1,867
Operating lease liabilities, non-current		460			-
Accrued severance pay		274			301
Total long-term liabilities		3,014			2,168
COMMITMENTS AND CONTINGENT LIABILITIES
EQUITY:
Share capital - Ordinary shares of NIS 80.00 nominal value: Authorized; 6,000,000 shares at June 30, 2019 and December 31, 2018; Issued and outstanding: 4,257,790 and 3,553,714 shares at June 30, 2019 and December 31, 2018, respectively		80,497			75,317
Additional paid-in capital		2,012			5,369
Accumulated other comprehensive income (loss)		(236	)		(333	)
Accumulated deficit		(68,666	)		(68,842	)
Total equity		13,607			11,511
Total liabilities and shareholders’ equity	$	25,229		$	20,111

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,
	2019			2018
	Unaudited			Unaudited
Revenue	$	16,549		$	15,843
Cost of revenues		13,167			12,626
Gross profit	$	3,382		$	3,217
Operating expenses:
Sales and marketing		1,899			1,847
General and administrative		1,158			850
Total operating costs and expenses		3,057			2,697
Operating income		325			520
Financial expenses, net		(129	)		(123	)
Income before taxes on income		196			397
Taxes on income		20			-
Net income	$	176		$	397
Basic and diluted net income per share	$	0.05		$	0.12
Weighted average number of shares used in computing net income per share:
Basic		3,844,775			3,445,949
Diluted		3,847,442			3,445,949

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

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

U.S. dollars in thousands, except per share data

	Six months period ended June 30,
	2019		2018
	Unaudited		Unaudited
Net income	$	176	$	397
Cash flow hedging instruments:
Change in unrealized gains and losses		96		(94	)
Gain in respect of derivative instruments designated for cash flow hedge, net of taxes		1		21
Other comprehensive gain (loss)		97		(73	)
Comprehensive income	$	273	$	324

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

F - 5

B.O.S. BETTER ONLINE SOLUTIONS LTD.

AND ITS SUBSIDIARIES

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

U.S. dollars in thousands (except 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, 2018		3,356,689	$	80,270		$	(220	)	$	(69,832	)	$	10,218
Issuance of Ordinary shares, net		197,025		400			-			-			400
Issuance expenses, net		-		(44	)		-			-			(44	)
Other comprehensive income		-		-			(73	)		-			(73	)
Share-based compensation expense		-		28			-			-			28
Net income		-		-			-			397			397
Balance as of June 30, 2018		3,553,714	$	80,654		$	(293	)	$	(69,435	)	$	10,926
Balance as of January 1, 2019		3,553,714	$	80,686		$	(333	)	$	(68,842	)	$	11,511
Issuance of Ordinary shares, net		178,881		523			-			-			523
Issuance of Ordinary shares related to securities purchase agreement, net (see Note 7(4))		400,000		945			-			-			945
Exercise of options		125,195		316			-			-			316
Other comprehensive income		-		-			97			-			97
Share-based compensation expense		-		39			-			-			39
Net income		-		-			-			176			176
Balance as of June 30, 2019 (unaudited)		4,257,790	$	82,509		$	(236	)	$	(68,666	)	$	13,607

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

	Six months period ended June 30,
	2019			2018
	Unaudited
Cash flows from operating activities:
Net income	$	176		$	397
Adjustments required to reconcile net income to net cash provided by  operating activities:
Depreciation and amortization		152			134
Capital gain from sale of property and equipment		(10	)		-
Currency fluctuation of loans and lease operating lease liabilities		184			(143	)
Severance pay, net		(27	)		(16	)
Share-based compensation expenses		39			28
Decrease (increase) in trade receivables, net		(321	)		1,567
Increase in other accounts receivable and other assets		(792	)		(307	)
(Increase) decrease in inventories		(962	)		489
Increase (decrease) in trade payables		1,421			(1,702	)
Increase (decrease) in employees and payroll accruals, deferred revenues, accrued expenses and other liabilities		4			(101	)
Net cash used in (provided by) operating activities	$	(136	)	$	346
Cash flows to investing activities:
Purchase of property and equipment		(232	)		(464	)
Proceeds from sale of property and equipment		10			-
Acquisition of business		(1,895	)		-
Net cash used in investing activities	$	(2,117	)	$	(464	)

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

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS

U.S. dollars in thousands

	Six months period ended June 30,
	2019			2018
	Unaudited
Cash flows from financing activities:
Proceeds from issuance of shares, net		558			384
Proceeds from issuance of shares related to securities purchase agreement, net (see Note 7(4))		945			-
Proceeds from issuance of shares related to options exercised, net		316			-
Proceeds from long-term bank loans		708			-
Repayment of long-term bank loans		(254	)		(248	)
Net cash provided by financing activities	$	2,273		$	136
Increase in cash and cash equivalents, and restricted cash		20			18
Cash, cash equivalents and restricted cash at the beginning of the period		1,742			1,780
Cash, cash equivalents and restricted cash at the end of the period	$	1,762		$	1,798
Supplementary cash flow activities:
(1) Cash paid during the period for:
Interest	$	43		$	47
(2) Non-cash activities:
Prepaid expenses related to issuance of Ordinary shares related to SEDA 2017 (See Note 7)	$	(35	)	$	(28	)
(3) Acquisitions of Imdecol:
Fair value of Property and equipment, net and inventory acquired at acquisition date:
Property and equipment, net	$	91		$	-
Inventory		380
Fair value of intangible assets acquired at acquisition date		1,424			-
Net cash used to pay for the Acquisition of Imdecol	$	1,895		$	-

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

F - 8

B.O.S. BETTER ONLINE SOLUTIONS LTD.

AND ITS SUBSIDIARIES

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

U.S. dollars in thousands

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. The Company has two operating divisions: the Intelligent Robotics and RFID division and the Supply Chain Solutions division.

The Company’s wholly-owned subsidiaries include:

1. BOS-Dimex Ltd., (“BOS-Dimex”), is an Israeli company that comprises the RFID and Robotics Solutions segment. BOS-Dimex provides comprehensive turn-key solutions for Automatic Identification and Data Collection (AIDC), combining a mobile infrastructure with software application of manufacturers that we represent. Following the acquisition in January 2016 by BOS-Dimex of the business operations of iDnext Ltd. and its subsidiary Next-Line Ltd., BOS-Dimex also offers on-site inventory count services in the fields of apparel, food, convenience and pharma, asset tagging and counting services for corporate and governmental entities. In June 2019 the Company completed the acquisition of the assets of Imdecol Ltd. and now offers intelligent robotics systems for industrial and logistics processes as well as for retail store management.

2. BOS-Odem Ltd. (“BOS-Odem”), an Israeli company, is a distributor of electronic components to customers in the defense high technology industry and a supply chain service provider for aviation customers that seek 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, a wholly-owned subsidiary of BOS-Odem and a part of the Supply Chain Solutions segment.

NOTE 2: SIGNIFICANT ACCOUNTING POLICIES

The significant accounting policies applied in the financial statements of the Company as of December 31, 2018, are applied consistently in these financial statements, except for the effect of adoption of new accounting standards updates as described below:

Recently issued accounting pronouncements

Accounting Standards Update 2016-02, “Leases (Topic 842): Section A – Leases: Amendments to the FASB Accounting Standards Codification; Section B – Conforming Amendments Related to Leases: Amendments to the FASB Accounting Standards Codification; Section C – Background Information and Basis for Conclusions”

Commencing January 1, 2019, the Company adopted ASC Update (ASU) No. 2016-02, Leases (Topic 842).

Under the new guidance, lessees are required to recognize the following for all leases (with the exception of short-term leases) at the commencement date: 1. A lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and, 2. A right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term.

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B.O.S. BETTER ONLINE SOLUTIONS LTD.

AND ITS SUBSIDIARIES

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

U.S. dollars in thousands

NOTE 2: SIGNIFICANT ACCOUNTING POLICIES (Cont.)

Under the new guidance, lessor accounting remained largely unchanged. Certain changes were made to align, where necessary, lessor’s accounting with the lessee’s accounting model and Topic 606, Revenue from Contracts with Customers. The new lease guidance simplified the accounting for sale and leaseback transactions primarily because lessees must recognize lease assets and lease liabilities. Lessees will no longer be provided with a source of off-balance sheet financing.

In July 2018, the FASB issued amendments in ASU 2018-11, which provide a transition election to not restate comparative periods for the effects of applying the new standard. This transition election permits entities to change the date of initial application to the beginning of the earliest comparative period presented, or retrospectively at the beginning of the period of adoption through a cumulative-effect adjustment.

The new standard provides a number of optional practical expedients in transition some of which, if elected, are required to be applied as a package (package of practical expedients) while other expedients can be applied on a stand-alone basis. Such package permits the Company not to reassess its prior conclusions regarding lease identification, lease classification and initial direct costs under the new standard.

For public business entities ASU 2016-02 became effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years (i.e., January 1, 2019, for a calendar year Company).

The Company adopted the new standard on January 1, 2019 and used its effective date as the date of initial application. Consequently, the effect of the adoption was reflected through a cumulative-effect adjustment, and financial information for comparative periods was not required to be updated.

The Company elected the package of practical expedients permitted under the transition guidance, which allowed the Company to carryforward its historical lease classification, its assessment on whether a contract was or contains a lease, and its initial direct costs for any leases that existed prior to January 1, 2019. The Company also elected to keep leases with an initial term of 12 months or less off the balance sheet and recognize the associated lease payments in the consolidated statements of operations.

Following adoption of the new standard, the Company recognized additional operating lease liabilities for its operating leases of facilities and motor vehicles in an estimated amount of $879, with corresponding right-of-use assets of approximately the same amount based on the present value of the remaining minimum rental payments under current leasing standards for existing operating leases. The adoption did not impact the Company’s beginning retained earnings, or prior year condensed consolidated statements of comprehensive loss and condensed consolidated statements of cash flows.

Under the new standard, the Company determines if an arrangement is a lease at inception. Right of use of assets and liabilities are recognized at commencement date based on the present value of remaining lease payments over the lease term. For this purpose, the Company considers only payments that are fixed and determinable at the time of commencement. As most of the Company’s leases do not provide an implicit rate, the Company used its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The Company’s incremental borrowing rate is a hypothetical rate based on the Company’s understanding of what its credit rating would be. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise such options.

F - 10

B.O.S. BETTER ONLINE SOLUTIONS LTD.

AND ITS SUBSIDIARIES

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

U.S. dollars in thousands

NOTE 2: SIGNIFICANT ACCOUNTING POLICIES (Cont.)

Rate based on the information available at commencement date in determining the present value of lease payments. The Company’s incremental borrowing rate is a hypothetical rate based on the Company’s understanding of what its credit rating would be. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that it will exercise such options.

Operating leases are included in operating lease right-of-use assets, operating lease liabilities, current and non-current operating lease liabilities, on the condensed consolidated balance sheets.

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

	Six Months Period Ended June 30, 2019
Operating lease costs :
Vehicles		142
Facilities rent		119
Total operating lease cost	$	261
Remaining Lease Term
Vehicles		0.8-2.11 years
Facilities rent		1.8-3.8 years
Weighted Average Discount Rate
Vehicles		3.36	%
Facilities rent		3.36	%
Future lease payments are:
The remainder of 2019		265
2020		472
2021		222
2022		19
2023		9
	$	987

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B.O.S. BETTER ONLINE SOLUTIONS LTD.

AND ITS SUBSIDIARIES

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

U.S. dollars in thousands

NOTE 2: SIGNIFICANT ACCOUNTING POLICIES (Cont.)

Accounting Standards Update 2018-07 “Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting”

Commencing January 1, 2019, the Company adopted ASC Update 2018-07, “Improvements to Nonemployee Share-Based Payment Accounting” (ASU 2018-07), which simplifies the accounting for share-based payments granted to nonemployees for goods and services. Under the ASU, most of the guidance on such payments to nonemployees would be aligned with the requirements for share-based payments granted to employees. The changes became effective for public companies for fiscal years starting after December 15, 2018, including interim periods within that fiscal year.

The adoption of ASU 2018-07 will not have a significant impact on its consolidated financial statements.

Accounting Standards Update 2017-12 “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities”

Commencing January 1, 2019, the Company adopted ASC Update 2017-12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. (ASU 2017-12)” ASU 2017-12, amends the hedge accounting recognition and presentation requirements in ASC 815 in order to (1) improve the transparency and understandability of information conveyed to financial statement users about an entity’s risk management activities by better aligning the entity’s financial reporting for hedging relationships with those risk management activities and (2) reduce the complexity of and simplify the application of hedge accounting by preparers.

ASU 2017-12 eliminates the concept of separately recognizing periodic hedge ineffectiveness for cash flow and net investment hedges. Accordingly, the impact of both the effective and ineffective components of a hedging relationship will be recognized in the same financial reporting period and in the same income statement line item. Also, the guidance in ASU 2017-12 includes certain targeted improvements to existing guidance on quantitative and qualitative assessments of initial and ongoing hedge effectiveness.

The transition guidance in ASU 2017-12 requires an entity to apply the amendments using a modified retrospective approach to hedging relationships that exist as of the date of adoption by recording a cumulative-effect adjustment to the opening balance of retained earnings as of the most recent period presented. Entities must apply the new and modified disclosure requirements prospectively from the date of adoption.

For public business entities, the guidance in ASU 2017-12 became effective for fiscal years beginning after December 15, 2018 and for interim periods within those fiscal years.

Management has determined that based on the current level of the hedging activities of the Company, ASU 2017-12 will not have a significant impact on the results of operations and financial statements.

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B.O.S. BETTER ONLINE SOLUTIONS LTD.

AND ITS SUBSIDIARIES

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

U.S. dollars in thousands

NOTE 3: UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

These 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, 2019 have been included. Operating results for the six-month period ended June 30, 2019 are not necessarily indicative of the results that may be expected for the year ended December 31, 2019, or any other interim period in the future.

The consolidated balance sheet at December 31, 2018 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, 2018 included in the Company’s Annual Report on Form 20-F, filed with the Securities Exchange Commission on April 1, 2019.

NOTE 4: FAIR VALUE OF FINANCIAL INSTRUMENTS

The Company uses derivative instruments primarily to manage exposure to foreign currency exchange rates. The Company’s primary objective in holding derivatives is to reduce the volatility of earnings and cash flows due to changes in foreign currency exchange rates related to forecasted monthly payroll payments of employees which are paid in NIS.

Gains on designated derivatives reclassified from OCI into Consolidated Statement of Operations for the periods ended:

	Six months period ended June 30,
	2019			2018
	Unaudited
Line Item in Statement of Operations
Derivatives designated as cash flow hedging instruments:
Foreign currency derivatives                 Cost of revenues	$	-		$	(10	)
Foreign currency derivatives                 Sales and marketing		(1	)		(8	)
Foreign currency derivatives                 General and administrative		-			(3	)
Total income	$	(1	)	$	(21	)

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B.O.S. BETTER ONLINE SOLUTIONS LTD.

AND ITS SUBSIDIARIES

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

U.S. dollars in thousands

NOTE 4: FAIR VALUE OF FINANCIAL INSTRUMENTS (Cont.)

The following table presents the assets and liabilities measured at fair value on a recurring basis as of June 30, 2019 and 2018:

	June 30, 2019
	Fair Value		Level 1		Level 2		Level 3
	Unaudited
Description
Derivative assets	$	10		-	$	10		-
	$	10		-	$	10		-

	June 30, 2018
	Fair Value		Level 1		Level 2		Level 3
	Unaudited
Description
Derivative liabilities	$	47		-	$	47		-
	$	47		-	$	47		-

NOTE 5: ACQUISITION OF BUSINESS

On June 1, 2019 the Company completed the acquisition of the assets of Imdecol Ltd, a global integrator and manufacturer of automatic and robotic systems that enhance the productivity of production lines.

The purchase price of Imdecol’s business is based on a multiple of four times the average annual operating profit of Imdecol’s business for the years 2017, 2018, 2019 and for the 12 months ended June 30, 2020 (the “Formula of Consideration”).

The purchase price for Imdecol’s assets is payable as follows:

a. An advance of $276 was paid to Imdecol in cash upon signing the definitive agreement in March 2019;

b. An additional approximately $1,619 was paid to Imdecol in cash at closing, on June 1, 2019.

c. The final consideration will be paid by August 2020, according to the Formula of Consideration. Additional payment, if required, will be done in the following manner:

● Up to $417 shall be paid to Imdecol, by way of issuance of BOS’s ordinary shares. The value of the ordinary shares will be determined according to their market price prior to issuance and the shares will be subject to a lock-up period until June 2022.

● The residual amount, if any, will be paid in cash.

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B.O.S. BETTER ONLINE SOLUTIONS LTD.

AND ITS SUBSIDIARIES

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

U.S. dollars in thousands

NOTE 5: ACQUISITION OF BUSINESS (Cont.)

The acquisition was accounted for as a business combination under ASC-805.

The purchase price allocation of the acquired business is as follows:

	June 01,
	2019
Cash paid		1,895
Total acquisition price	$	1,895
Recognized amounts of identifiable assets acquired:
Intangible assets, net		953
Property and equipment, net		91
Inventory		380
Net assets acquired		1,424
Goodwill		471

As part of the purchase price allocation for the acquisition, the Company recorded goodwill in the amount of $471. 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. Company’s management expects that the acquired business performance by August 2020 will not meet the profitability goals for contingent payment. Accordingly, no contingent consideration was recorded.

The Company filed proforma information regarding the acquisition and the acquired business operations was determined to be included in the RFID and Robotics Solutions segment.

NOTE 6: SEGMENTS AND GEOGRAPHICAL INFORMATION

The Company manages its business in two reportable segments, consisting of the RFID and Robotics Solutions segment and the Supply Chain Solutions 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. The Company applies ASC 280, Segment Reporting.

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B.O.S. BETTER ONLINE SOLUTIONS LTD.

AND ITS SUBSIDIARIES

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

U.S. dollars in thousands

NOTE 6: SEGMENTS AND GEOGRAPHICAL INFORMATION (Cont.)

a. Revenues, gross profit and assets for the operating segments for the six months ended June 30, 2019 and 2018 were as follows:

	RFID and Robotics Solutions		Supply Chain Solutions		Intercompany			Consolidated
Six months ended June 30, 2019
Revenues	$	7,027	$	9,616	$	(94	)	$	16,549
Gross profit	$	1,404	$	1,978	$	-		$	3,382
Assets related to segment (see Note 5)	$	7,454	$	1,101	$	-		$	8,555
Six months ended June 30, 2018
Revenues	$	7,145	$	8,740	$	(42	)	$	15,843
Gross profit	$	1,696	$	1,521	$	-		$	3,217
Assets related to segment	$	5,349	$	627	$	-		$	5,976

b. The following presents total revenues for the six months ended June 30, 2019 and 2018 based on the location of customers:

	June 30,
	2019		2018
	Unaudited
Israel	$	11,081	$	11,471
Far East		3,074		1,342
India		1,494		2,723
Europe		479		252
United States		421		55
	$	16,549	$	15,843

NOTE 7: SHAREHOLDERS’ EQUITY

1. Issuance of Ordinary Shares in connection with Standby Equity Distribution Agreements:

On May 8, 2017 the Company entered into a Standby Equity Distribution Agreement (“SEDA”), with YA II PN Ltd. (“YA”), for the sale of up to $2,000 of its Ordinary Shares to YA. The Company may effect the sale, at its sole discretion, during a four-year period for the 2017 SEDA, beginning on the date on which the Securities and Exchange Commission first declares effective a registration statement registering the resale of the Company’s Ordinary Shares by YA. For each Ordinary Share purchased under the SEDA, YA will pay 93% of the lowest daily VWAP (as defined below) of the Ordinary Shares during the three consecutive trading days, following the date of an advance notice from the Company (provided such VWAP is greater than or equal to 90% of the last closing price of the Ordinary shares at the time of delivery of the advance notice). Notwithstanding the forgoing, the notice shall not exceed $500. “VWAP” is defined as of any date, to be such date’s daily dollar volume-weighted average price of the Ordinary Shares as reported by Bloomberg, LP.  The Company may terminate the SEDA at any time upon prior notice to YA, as long as there are no advance notices outstanding and the Company has paid to YA all amounts then due.

F - 16

B.O.S. BETTER ONLINE SOLUTIONS LTD.

AND ITS SUBSIDIARIES

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

U.S. dollars in thousands

NOTE 7: SHAREHOLDERS’ EQUITY (Cont.)

In connection with the SEDA, the Company issued 67,307 Ordinary shares to YA as a commitment fee. The commitment fee is recorded as prepaid expenses according to the consumption of the SEDA. As of June 30, 2019, the balance of those prepaid expenses was $77.

During the year 2018, the Company issued to YA 197,025 Ordinary Shares, for a total amount of $372, net of $23 issuance expenses.

During the six months ended June 30, 2019, the Company issued to YA 158,023 Ordinary Shares, for a total amount of $465.

2. From February 19, 2019 until March 15, 2019, a total of 125,195 options were exercised for the amount of $316.

3. On February 25, 2019 the Company issued 20,858 Ordinary Shares (equivalent to $62) to officers of the Company related to Bonus payments approved by the Board of Directors and shareholders.

4. On May 16, 2019 the Company entered into and closed a securities purchase agreement with several Investors for the sale of 400,000 Ordinary Shares at a price of $2.50 per share, resulting in gross proceeds of $1 million and $59 issuance expenses. In addition, the Company issued to the investors 240,000 warrants with an exercise price of $3.30 per Ordinary Share. The warrants shall be exercisable for 3.5 years and shall be subject to a three-year vesting period as follows: one third of the warrants shall vest annually (upon the lapse of 12 months, 24 months and 36 months from issuance), provided that on the applicable vesting date the investor did not sell any of the Ordinary Shares purchased on the private placement. Vesting of all of the warrants shall be accelerated in the event that any one or more shareholders acting together acquire a block of 40% of the Company’s issued and outstanding share capital.

NOTE 8: SUBSEQUENT EVENTS

On October 29, 2019, the Company announced:

a. That it expects to record a write-off of approximately $600,000 in the third quarter of 2019, related to its acquisition of the assets of Imdecol Ltd, a global integrator and manufacturer of automatic and robotic systems.

b. That it has revised its revenue expectation for the full year of 2019 to $33 million, from its previous expectation of $36 million.

F - 17

EX-99.2

Exhibit 99.2

MANAGEMENT’S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION FOR THE SIX MONTHS ENDED JUNE 30, 2019 AND JUNE 30, 2018

Revenues for the six months ended June 30, 2019 were $16.55 million, compared to $15.84 million for the six months ended June 30, 2018. The increase is attributed mostly to revenue growth in the Supply Chain division, primarily due to international sales (mainly in the Far East), which accounted for 56% of the division’s revenues for the six months ended June 30, 2019, compared to 50% in the six months ended June 30, 2018.

Gross profit for the six months ended June 30, 2019 amounted to $3.38 million (a gross margin of 20.4%), compared to $3.2 million (a gross margin of 20.3%) for the six months ended June 30, 2018. The increase in gross profit is attributable to the increase in revenues presented above.

Sales and marketing expenses for the six months ended June 30, 2019 were $1.9 million (11.5% of revenues), compared to $1.85 million (11.6% of revenues) for the six months ended June 30, 2018.

General and administrative expenses for the six months ended June 30, 2019 were $1.16 million, compared to $850,000 in the six months ended June 30, 2018. The increase is attributed to most to costs associated with a special shareholders meeting convened at the demand of an activist shareholder in the amount of $88,000, and to expenses related to the acquisition of the business of Imdecol Ltd. (“Imdecol”) in the amount of $128,000.

As a result of the above, operating income for the six months ended June 30, 2019 amounted to $325,000, compared to $520,000 in the six months ended June 30, 2018.

Financial expenses for the six months ended June 30, 2019 were $129,000, compared to $123,000 in the six months ended June 30, 2018.

Net income for the six months ended June 30, 2019 amounted to $176,000, compared to $397,000 for the six months ended June 30, 2018. On a per-share basis, the basic and diluted net income per-share in the six months ended June 30, 2019 was $0.05, compared to $0.12 net income per share for the six months ended June 30, 2018.

Liquidity and Capital Resources

As of June 30, 2019, we had $2.28 million in long-term bank loans, and current maturities of $634,000. Cash and cash equivalents as of June 30, 2019 amounted to $1.44 million. As of June 30, 2019, the Company had a working capital of $8.07 million, and it is the Company's opinion that the current working capital is sufficient for the Company's present requirements.

On May 28, 2019, the Company increased its credit facilities from Bank Beinleumi in the amount of $708,000. This amount was used in the acquisition of the business operation of Imdecol. The bank agreement includes covenants to maintain certain financial ratios related to shareholders' equity, EBITDA and operating results. The Bank Beinleumi credit facilities are secured by a first priority floating charge on the present and future assets of the Company and its Israeli subsidiaries, and by a first priority fixed charge on their goodwill, unpaid share capital and any insurance entitlements pertaining to assets underlying these charges. As of June 30, 2019, the Company met the covenants set forth in the bank agreement. The loan will be repaid in equal monthly installments during a period of 5 years.

On May 8, 2017, the Company entered into a Standby Equity Distribution Agreement (“SEDA”), with YA II PN Ltd. (“YA”). Under the SEDA, the Company has the right to sell its Ordinary Shares to YA for up to a total purchase price of $2,000,000 . The Company may effect the sale, at its sole discretion, during a four-year period for the 2017 SEDA, beginning on the date on which the Securities and Exchange Commission first declares effective a registration statement registering the resale of the Company’s Ordinary Shares by YA.

For each Ordinary Share purchased under the SEDA, YA will pay 93% of the lowest daily VWAP (as defined below) of the Ordinary Shares during the three consecutive trading days, following the date of an advance notice from the Company (provided such VWAP is greater than or equal to 90% of the last closing price of the Ordinary shares at the time of delivery of the advance notice). Notwithstanding the forgoing, the notice shall not exceed $500,000.

“VWAP” is defined as of any date, to be such date’s daily dollar volume-weighted average price of the Ordinary Shares as reported by Bloomberg, LP.  The Company may terminate the SEDA at any time upon prior notice to YA, as long as there are no advance notices outstanding and the Company has paid to YA all amounts then due.

In connection with the SEDA, the Company issued 67,307 Ordinary shares to YA as a commitment fee. The commitment fee is recorded as prepaid expenses according to the consumption of the SEDA. As of June 30, 2019, the balance of those prepaid expenses was $77,000.

During the six months ended June 30, 2019, the Company issued to YA 158,023 Ordinary Shares, for a total amount of $465,000. 

During the six months ended June 30, 2019, a total of 125,195 options were exercised for the amount of $316,000.

During the six months ended June 30, 2019, the Company issued 20,858 Ordinary Shares (equivalent to $62,000) to officers of the Company related to Bonus payments approved by the Board of Directors and shareholders.

On May 16, 2019, the Company entered into and closed a securities purchase agreement with several Investors for the sale of 400,000 Ordinary Shares at a price of $2.50 per share, resulting in gross proceeds of $1 million and $59,000 issuance expenses. In addition, the Company issued to the investors 240,000 warrants with an exercise price of $3.30 per Ordinary Share. The warrants shall be exercisable for 3.5 years form the date of their issuance, and shall be subject to a three-year vesting period as follows: one third of the warrants shall vest annually (upon the lapse of 12 months, 24 months and 36 months from issuance), provided that on the applicable vesting date the investor did not sell any of the Ordinary Shares purchased on the private placement. Vesting of all of the warrants shall be accelerated in the event that any one or more shareholders acting together acquire a block of 40% of the Company’s issued and outstanding share capital.

We finance our activities by different means, including long-term loans, cash flow from operating activities and issuance of Company Ordinary Shares.

2

Working capital requirements will vary from time-to-time and will depend on numerous factors, including but not limited to, the operating results, scope of sales, supplier and customer credit terms, and acquisition activities.

We have in-balance sheet financial instruments and off-balance sheet contingent commitments. Our in-balance sheet financial instruments consist of our assets and liabilities. As of June 30, 2019, our trade receivables' and trade payables' aging days were 97 and 76 days, respectively. The fair value of our financial instruments is similar to their book value. Our off-balance sheet contingent commitments consist of: (a) royalty commitments that are directly related to our future revenues, (b) lease commitments of our premises and vehicles, and (c) directors' and officers' indemnities, in excess of the proceeds received from liability insurance, which we obtain.

Cash Flow

Net cash used in operating activities during the six months ended June 30, 2019 was $136,000, compared to net cash provided by operating activities of $346,000 during the six months ended June 30, 2018. The increase is attributed mainly to an increase in other accounts receivable which is derived from the acquisition of the business operation of Imdecol in June 1, 2019 and an increase in inventory which is related to the Supply Chain division.

Net cash used in investing activities during the six months ended June 30, 2019 amounted to $2.1 million, compared to $533,000 during the six months ended June 30, 2018. The increase is due to net cash used for the acquisition of the business operation of Imdecol In the amount of $1.9 million.

Net cash provided by financing activities during the six months ended June 30, 2019 was $2.3 million, compared to $136,000 in the six months ended June 30, 2018. During the first six months of 2019, we raised $1 million (net of $55,000 issuance expenses) pursuant to a securities purchase agreement with several investors for the sale of 400,000 Ordinary Shares. In addition, as mentioned above, in the first six months of 2019, we increased our long-term bank loans in the amount of $708,000, to finance the acquisition of the business operation of Imdecol.

3

XML

Subsequent Events (Details) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
	Oct. 29, 2019	Dec. 31, 2019	Dec. 31, 2018
Subsequent Events (Textual)
Revenue expectation			$ 36,000
Subsequent Event [Member]
Subsequent Events (Textual)
Write-off of approximately	$ 600
Revenue expectation		$ 33,000

XML

Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2019

Accounting Policies [Abstract]

Schedule of operating lease costs, lease terms and discount rate

	Six Months Period Ended June 30, 2019
Operating lease costs :
Vehicles		142
Facilities rent		119
Total operating lease cost	$	261
Remaining Lease Term
Vehicles		0.8-2.11 years
Facilities rent		1.8-3.8 years
Weighted Average Discount Rate
Vehicles		3.36	%
Facilities rent		3.36	%
Future lease payments are:
The remainder of 2019		265
2020		472
2021		222
2022		19
2023		9
	$	987

XML

Acquisition of Business

6 Months Ended

Jun. 30, 2019

Acquisition of Business [Abstract]

ACQUISITION OF BUSINESS

NOTE 5: ACQUISITION OF BUSINESS

On June 1, 2019 the Company completed the acquisition of the assets of Imdecol Ltd, a global integrator and manufacturer of automatic and robotic systems that enhance the productivity of production lines.

The purchase price of Imdecol's business is based on a multiple of four times the average annual operating profit of Imdecol's business for the years 2017, 2018, 2019 and for the 12 months ended June 30, 2020 (the "Formula of Consideration").

The purchase price for Imdecol's assets is payable as follows:

a. An advance of $276 was paid to Imdecol in cash upon signing the definitive agreement in March 2019;

b. An additional approximately $1,619 was paid to Imdecol in cash at closing, on June 1, 2019.

c. The final consideration will be paid by August 2020, according to the Formula of Consideration. Additional payment, if required, will be done in the following manner:

● Up to $417 shall be paid to Imdecol, by way of issuance of BOS's ordinary shares. The value of the ordinary shares will be determined according to their market price prior to issuance and the shares will be subject to a lock-up period until June 2022.

● The residual amount, if any, will be paid in cash.

The acquisition was accounted for as a business combination under ASC-805.

The purchase price allocation of the acquired business is as follows:

	June 01,
	2019
Cash paid		1,895
Total acquisition price	$	1,895
Recognized amounts of identifiable assets acquired:
Intangible assets, net		953
Property and equipment, net		91
Inventory		380
Net assets acquired		1,424
Goodwill		471

As part of the purchase price allocation for the acquisition, the Company recorded goodwill in the amount of $471. 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. Company's management expects that the acquired business performance by August 2020 will not meet the profitability goals for contingent payment. Accordingly, no contingent consideration was recorded.

The Company filed proforma information regarding the acquisition and the acquired business operations was determined to be included in the RFID and Robotics Solutions segment.

XML

Significant Accounting Policies

6 Months Ended

Jun. 30, 2019

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, 2018, are applied consistently in these financial statements, except for the effect of adoption of new accounting standards updates as described below:

Recently issued accounting pronouncements

Accounting Standards Update 2016-02, "Leases (Topic 842): Section A – Leases: Amendments to the FASB Accounting Standards Codification; Section B – Conforming Amendments Related to Leases: Amendments to the FASB Accounting Standards Codification; Section C – Background Information and Basis for Conclusions"

Commencing January 1, 2019, the Company adopted ASC Update (ASU) No. 2016-02, Leases (Topic 842).

Under the new guidance, lessees are required to recognize the following for all leases (with the exception of short-term leases) at the commencement date: 1. A lease liability, which is a lessee's obligation to make lease payments arising from a lease, measured on a discounted basis; and, 2. A right-of-use asset, which is an asset that represents the lessee's right to use, or control the use of, a specified asset for the lease term.

Under the new guidance, lessor accounting remained largely unchanged. Certain changes were made to align, where necessary, lessor's accounting with the lessee's accounting model and Topic 606, Revenue from Contracts with Customers. The new lease guidance simplified the accounting for sale and leaseback transactions primarily because lessees must recognize lease assets and lease liabilities. Lessees will no longer be provided with a source of off-balance sheet financing.

In July 2018, the FASB issued amendments in ASU 2018-11, which provide a transition election to not restate comparative periods for the effects of applying the new standard. This transition election permits entities to change the date of initial application to the beginning of the earliest comparative period presented, or retrospectively at the beginning of the period of adoption through a cumulative-effect adjustment.

The new standard provides a number of optional practical expedients in transition some of which, if elected, are required to be applied as a package (package of practical expedients) while other expedients can be applied on a stand-alone basis. Such package permits the Company not to reassess its prior conclusions regarding lease identification, lease classification and initial direct costs under the new standard.

For public business entities ASU 2016-02 became effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years (i.e., January 1, 2019, for a calendar year Company).

The Company adopted the new standard on January 1, 2019 and used its effective date as the date of initial application. Consequently, the effect of the adoption was reflected through a cumulative-effect adjustment, and financial information for comparative periods was not required to be updated.

The Company elected the package of practical expedients permitted under the transition guidance, which allowed the Company to carryforward its historical lease classification, its assessment on whether a contract was or contains a lease, and its initial direct costs for any leases that existed prior to January 1, 2019. The Company also elected to keep leases with an initial term of 12 months or less off the balance sheet and recognize the associated lease payments in the consolidated statements of operations.

Following adoption of the new standard, the Company recognized additional operating lease liabilities for its operating leases of facilities and motor vehicles in an estimated amount of $879, with corresponding right-of-use assets of approximately the same amount based on the present value of the remaining minimum rental payments under current leasing standards for existing operating leases. The adoption did not impact the Company's beginning retained earnings, or prior year condensed consolidated statements of comprehensive loss and condensed consolidated statements of cash flows.

Under the new standard, the Company determines if an arrangement is a lease at inception. Right of use of assets and liabilities are recognized at commencement date based on the present value of remaining lease payments over the lease term. For this purpose, the Company considers only payments that are fixed and determinable at the time of commencement. As most of the Company's leases do not provide an implicit rate, the Company used its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The Company's incremental borrowing rate is a hypothetical rate based on the Company's understanding of what its credit rating would be. The Company's lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise such options.

Rate based on the information available at commencement date in determining the present value of lease payments. The Company's incremental borrowing rate is a hypothetical rate based on the Company's understanding of what its credit rating would be. The Company's lease terms may include options to extend or terminate the lease when it is reasonably certain that it will exercise such options.

Operating leases are included in operating lease right-of-use assets, operating lease liabilities, current and non-current operating lease liabilities, on the condensed consolidated balance sheets.

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

	Six Months Period Ended June 30, 2019
Operating lease costs :
Vehicles		142
Facilities rent		119
Total operating lease cost	$	261
Remaining Lease Term
Vehicles		0.8-2.11 years
Facilities rent		1.8-3.8 years
Weighted Average Discount Rate
Vehicles		3.36	%
Facilities rent		3.36	%
Future lease payments are:
The remainder of 2019		265
2020		472
2021		222
2022		19
2023		9
	$	987

Accounting Standards Update 2018-07 "Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting"

Commencing January 1, 2019, the Company adopted ASC Update 2018-07, "Improvements to Nonemployee Share-Based Payment Accounting" (ASU 2018-07), which simplifies the accounting for share-based payments granted to nonemployees for goods and services. Under the ASU, most of the guidance on such payments to nonemployees would be aligned with the requirements for share-based payments granted to employees. The changes became effective for public companies for fiscal years starting after December 15, 2018, including interim periods within that fiscal year.

The adoption of ASU 2018-07 will not have a significant impact on its consolidated financial statements.

Accounting Standards Update 2017-12 "Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities"

Commencing January 1, 2019, the Company adopted ASC Update 2017-12, "Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. (ASU 2017-12)" ASU 2017-12, amends the hedge accounting recognition and presentation requirements in ASC 815 in order to (1) improve the transparency and understandability of information conveyed to financial statement users about an entity's risk management activities by better aligning the entity's financial reporting for hedging relationships with those risk management activities and (2) reduce the complexity of and simplify the application of hedge accounting by preparers.

ASU 2017-12 eliminates the concept of separately recognizing periodic hedge ineffectiveness for cash flow and net investment hedges. Accordingly, the impact of both the effective and ineffective components of a hedging relationship will be recognized in the same financial reporting period and in the same income statement line item. Also, the guidance in ASU 2017-12 includes certain targeted improvements to existing guidance on quantitative and qualitative assessments of initial and ongoing hedge effectiveness.

The transition guidance in ASU 2017-12 requires an entity to apply the amendments using a modified retrospective approach to hedging relationships that exist as of the date of adoption by recording a cumulative-effect adjustment to the opening balance of retained earnings as of the most recent period presented. Entities must apply the new and modified disclosure requirements prospectively from the date of adoption.

For public business entities, the guidance in ASU 2017-12 became effective for fiscal years beginning after December 15, 2018 and for interim periods within those fiscal years.

Management has determined that based on the current level of the hedging activities of the Company, ASU 2017-12 will not have a significant impact on the results of operations and financial statements.

XML

Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Statement of Comprehensive Income (Loss) [Abstract]
Net income	$ 176	$ 397
Cash flow hedging instruments:
Change in unrealized gains and losses	96	(94)
Gain in respect of derivative instruments designated for cash flow hedge, net of taxes	1	21
Other comprehensive gain (loss)	97	(73)
Comprehensive income	$ 273	$ 324

XML

Document and Entity Information	6 Months Ended
	Jun. 30, 2019
Document and Entity Information [Abstract]
Entity Registrant Name	BOS BETTER ONLINE SOLUTIONS LTD
Entity Central Index Key	0001005516
Amendment Flag	true
Current Fiscal Year End Date	--12-31
Document Type	6-K/A
Document Period End Date	Jun. 30, 2019
Amendment Description	Amendment one
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2019
Entity File Number	001-14184

XML

Segments and Geographical Information (Details 1) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Segment Reporting Information [Line Items]
Total revenues	$ 16,549	$ 15,843
Israel [Member]
Segment Reporting Information [Line Items]
Total revenues	11,081	11,471
Far East [Member]
Segment Reporting Information [Line Items]
Total revenues	3,074	1,342
India [Member]
Segment Reporting Information [Line Items]
Total revenues	1,494	2,723
Europe [Member]
Segment Reporting Information [Line Items]
Total revenues	479	252
United States [Member]
Segment Reporting Information [Line Items]
Total revenues	$ 421	$ 55

XML

Fair Value of Financial Instruments (Details 1) - Fair Value [Member] - USD ($) $ in Thousands	Jun. 30, 2019	Jun. 30, 2018
Defined Benefit Plan Disclosure [Line Items]
Derivative assets	$ 10
Derivative liabilities		$ 47
Total	10	47
Level 1 [Member]
Defined Benefit Plan Disclosure [Line Items]
Derivative assets
Derivative liabilities
Total
Level 2 [Member]
Defined Benefit Plan Disclosure [Line Items]
Derivative assets	10
Derivative liabilities		47
Total	10	47
Level 3 [Member]
Defined Benefit Plan Disclosure [Line Items]
Derivative assets
Derivative liabilities
Total

XML

General (Details)	6 Months Ended
	Jun. 30, 2019 Segments
General (Textual)
Number of segments	2

XML

Acquisition of Business (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Jun. 01, 2019	Dec. 31, 2018
Acquisition of Business [Abstract]
Cash paid		$ 1,895
Total acquisition price		1,895
Recognized amounts of identifiable assets acquired:
Intangible assets, net	$ 929	953
Property and equipment, net	1,299	91	1,108
Inventory	4,272	380	2,874
Net assets acquired		1,424
Goodwill	$ 5,147	$ 471	$ 4,676

XML

Significant Accounting Policies (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2019 USD ($)
Operating lease costs :
Total operating lease cost	$ 261
Future lease payments are:
The remainder of 2019	265
2020	472
2021	222
2022	19
2023	9
Total future lease payments	987
Vehicles [Member]
Operating lease costs :
Total operating lease cost	$ 142
Weighted Average Discount Rate
Weighted Average Discount Rate	3.36%
Vehicles [Member] | Minimum [Member]
Remaining Lease Term
Remaining Lease Term	9 months 18 days
Vehicles [Member] | Maximum [Member]
Remaining Lease Term
Remaining Lease Term	2 years 1 month 9 days
Facilities rent [Member]
Operating lease costs :
Total operating lease cost	$ 119
Weighted Average Discount Rate
Weighted Average Discount Rate	3.36%
Facilities rent [Member] | Minimum [Member]
Remaining Lease Term
Remaining Lease Term	1 year 9 months 18 days
Facilities rent [Member] | Maximum [Member]
Remaining Lease Term
Remaining Lease Term	3 years 9 months 18 days

XML

Segments and Geographical Information (Details Textual)	6 Months Ended
	Jun. 30, 2019 Segments
Segments and Geographical Information (Textual)
Number of reportable segments	2

XML

Shareholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands				1 Months Ended	6 Months Ended		12 Months Ended
	May 16, 2019	Feb. 25, 2019	May 08, 2017	Mar. 15, 2019	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Shareholders' Equity (Textual)
Issuance of ordinary shares, shares		20,858
Issuance of ordinary shares					$ 523	$ 400
Trading description		The Company issued 20,858 Ordinary Shares (equivalent to $62) to officers of the Company related to Bonus payments approved by the Board of Directors and shareholders.
Ordinary shares, shares authorized					6,000,000		6,000,000
Stock option compensation expenses					$ 39	$ 28
Purchase agreement, description	The Company entered into and closed a securities purchase agreement with several Investors for the sale of 400,000 Ordinary Shares at a price of $2.50 per share, resulting in gross proceeds of $1 million and $59 issuance expenses. In addition, the Company issued to the investors 240,000 warrants with an exercise price of $3.30 per Ordinary Share. The warrants shall be exercisable for 3.5 years and shall be subject to a three-year vesting period as follows: one third of the warrants shall vest annually (upon the lapse of 12 months, 24 months and 36 months from issuance), provided that on the applicable vesting date the investor did not sell any of the Ordinary Shares purchased on the private placement. Vesting of all of the warrants shall be accelerated in the event that any one or more shareholders acting together acquire a block of 40% of the Company's issued and outstanding share capital.
Standby Equity Distribution Agreement [Member]
Shareholders' Equity (Textual)
Issuance of ordinary shares					67,307
Issuance of ordinary share value					$ 77
Stock Option [Member]
Shareholders' Equity (Textual)
Trading description				From February 19, 2019 until March 15, 2019, a total of 125,195 options were exercised for the amount of $316.
Weighted-average grant-date fair value of options granted						$ 0.93
Unrecognized compensation cost related to non-vested share-based compensation arrangements							$ 372
Options exercised
Ya Global [Member]
Shareholders' Equity (Textual)
Issuance of ordinary shares			$ 2,000
Number of ordinary shares issued, shares					158,023		197,025
Number of ordinary shares issued					$ 465		$ 372
Trading description			For each Ordinary Share purchased under the SEDA, YA will pay 93% of the lowest daily VWAP (as defined below) of the Ordinary Shares during the three consecutive trading days, following the date of an advance notice from the Company (provided such VWAP is greater than or equal to 90% of the last closing price of the Ordinary shares at the time of delivery of the advance notice). Notwithstanding the forgoing, the notice shall not exceed $500. "VWAP" is defined as of any date, to be such date's daily dollar volume-weighted average price of the Ordinary Shares as reported by Bloomberg, LP.  The Company may terminate the SEDA at any time upon prior notice to YA, as long as there are no advance notices outstanding and the Company has paid to YA all amounts then due.
Issuance expenses							$ 23

XML

Fair Value of Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2019

Fair Value Disclosures [Abstract]

Schedule of gains on designated derivatives reclassified

	Six months period ended June 30,
	2019			2018
	Unaudited
Line Item in Statement of Operations
Derivatives designated as cash flow hedging instruments:
Foreign currency derivatives                 Cost of revenues	$	-		$	(10	)
Foreign currency derivatives                 Sales and marketing		(1	)		(8	)
Foreign currency derivatives                 General and administrative		-			(3	)
Total income	$	(1	)	$	(21	)

Schedule of assets and liabilities measured at fair value on a recurring basis

	June 30, 2019
	Fair Value		Level 1		Level 2		Level 3
	Unaudited
Description
Derivative assets	$	10		-	$	10		-
	$	10		-	$	10		-

	June 30, 2018
	Fair Value		Level 1		Level 2		Level 3
	Unaudited
Description
Derivative liabilities	$	47		-	$	47		-
	$	47		-	$	47		-

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Segments and Geographical Information

6 Months Ended

Jun. 30, 2019

Segment Reporting [Abstract]

SEGMENTS AND GEOGRAPHICAL INFORMATION

NOTE 6: SEGMENTS AND GEOGRAPHICAL INFORMATION

The Company manages its business in two reportable segments, consisting of the RFID and Robotics Solutions segment and the Supply Chain Solutions 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. The Company applies ASC 280, Segment Reporting.

a. Revenues, gross profit and assets for the operating segments for the six months ended June 30, 2019 and 2018 were as follows:

	RFID and Robotics Solutions		Supply Chain Solutions		Intercompany			Consolidated
Six months ended June 30, 2019
Revenues	$	7,027	$	9,616	$	(94	)	$	16,549
Gross profit	$	1,404	$	1,978	$	-		$	3,382
Assets related to segment (see Note 5)	$	7,454	$	1,101	$	-		$	8,555
Six months ended June 30, 2018
Revenues	$	7,145	$	8,740	$	(42	)	$	15,843
Gross profit	$	1,696	$	1,521	$	-		$	3,217
Assets related to segment	$	5,349	$	627	$	-		$	5,976

b. The following presents total revenues for the six months ended June 30, 2019 and 2018 based on the location of customers:

	June 30,
	2019		2018
	Unaudited
Israel	$	11,081	$	11,471
Far East		3,074		1,342
India		1,494		2,723
Europe		479		252
United States		421		55
	$	16,549	$	15,843

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Condensed Interim Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Income Statement [Abstract]
Revenue	$ 16,549	$ 15,843
Cost of revenues	13,167	12,626
Gross profit	3,382	3,217
Operating expenses:
Sales and marketing	1,899	1,847
General and administrative	1,158	850
Total operating costs and expenses	3,057	2,697
Operating income	325	520
Financial expenses, net	(129)	(123)
Income before taxes on income	196	397
Taxes on income	20
Net income	$ 176	$ 397
Basic and diluted net income per share	$ 0.05	$ 0.12
Weighted average number of shares used in computing net income per share:
Basic	3,844,775	3,445,949
Diluted	3,847,442	3,445,949

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General

6 Months Ended

Jun. 30, 2019

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. The Company has two operating divisions: the Intelligent Robotics and RFID division and the Supply Chain Solutions division.

The Company's wholly-owned subsidiaries include:

1. BOS-Dimex Ltd., ("BOS-Dimex"), is an Israeli company that comprises the RFID and Robotics Solutions segment. BOS-Dimex provides comprehensive turn-key solutions for Automatic Identification and Data Collection (AIDC), combining a mobile infrastructure with software application of manufacturers that we represent. Following the acquisition in January 2016 by BOS-Dimex of the business operations of iDnext Ltd. and its subsidiary Next-Line Ltd., BOS-Dimex also offers on-site inventory count services in the fields of apparel, food, convenience and pharma, asset tagging and counting services for corporate and governmental entities. In June 2019 the Company completed the acquisition of the assets of Imdecol Ltd. and now offers intelligent robotics systems for industrial and logistics processes as well as for retail store management.

2. BOS-Odem Ltd. ("BOS-Odem"), an Israeli company, is a distributor of electronic components to customers in the defense high technology industry and a supply chain service provider for aviation customers that seek 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, a wholly-owned subsidiary of BOS-Odem and a part of the Supply Chain Solutions segment.

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Segments and Geographical Information (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Segment Reporting Information [Line Items]
Revenues	$ 16,549	$ 15,843
Gross profit	3,382	3,217
Assets related to segment	25,229	5,976	$ 20,111
RFID and Mobile Solutions (BOS-Dimex) [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Revenues	7,027	7,145
Gross profit	1,404	1,666
Assets related to segment	7,454	5,349
Supply Chain Solutions (BOS-Odem) [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Revenues	9,616	8,740
Gross profit	1,978	1,521
Assets related to segment	1,101	627
Intercompany [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Revenues	(94)	(42)
Gross profit
Assets related to segment

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Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Derivatives designated as cash flow hedging instruments:
Foreign currency derivatives Cost of revenues		$ (10)
Foreign currency derivatives Sales and marketing	(1)	(8)
Foreign currency derivatives General and administrative		(3)
Total income	$ (1)	$ (21)

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Segments and Geographical Information (Tables)

6 Months Ended

Jun. 30, 2019

Segment Reporting [Abstract]

Schedule of revenues, gross profit and assets for the operating segments

	RFID and Robotics Solutions		Supply Chain Solutions		Intercompany			Consolidated
Six months ended June 30, 2019
Revenues	$	7,027	$	9,616	$	(94	)	$	16,549
Gross profit	$	1,404	$	1,978	$	-		$	3,382
Assets related to segment (see Note 5)	$	7,454	$	1,101	$	-		$	8,555
Six months ended June 30, 2018
Revenues	$	7,145	$	8,740	$	(42	)	$	15,843
Gross profit	$	1,696	$	1,521	$	-		$	3,217
Assets related to segment	$	5,349	$	627	$	-		$	5,976

Schedule of total revenues and long-lived assets

	June 30,
	2019		2018
	Unaudited
Israel	$	11,081	$	11,471
Far East		3,074		1,342
India		1,494		2,723
Europe		479		252
United States		421		55
	$	16,549	$	15,843

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Subsequent Events

6 Months Ended

Jun. 30, 2019

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

NOTE 8: SUBSEQUENT EVENTS

On October 29, 2019, the Company announced:

a. That it expects to record a write-off of approximately $600,000 in the third quarter of 2019, related to its acquisition of the assets of Imdecol Ltd, a global integrator and manufacturer of automatic and robotic systems.

b. That it has revised its revenue expectation for the full year of 2019 to $33 million, from its previous expectation of $36 million.

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Fair Value of Financial Instruments

6 Months Ended

Jun. 30, 2019

Fair Value Disclosures [Abstract]

FAIR VALUE OF FINANCIAL INSTRUMENTS

NOTE 4: FAIR VALUE OF FINANCIAL INSTRUMENTS

The Company uses derivative instruments primarily to manage exposure to foreign currency exchange rates. The Company's primary objective in holding derivatives is to reduce the volatility of earnings and cash flows due to changes in foreign currency exchange rates related to forecasted monthly payroll payments of employees which are paid in NIS.

Gains on designated derivatives reclassified from OCI into Consolidated Statement of Operations for the periods ended:

	Six months period ended June 30,
	2019			2018
	Unaudited
Line Item in Statement of Operations
Derivatives designated as cash flow hedging instruments:
Foreign currency derivatives                 Cost of revenues	$	-		$	(10	)
Foreign currency derivatives                 Sales and marketing		(1	)		(8	)
Foreign currency derivatives                 General and administrative		-			(3	)
Total income	$	(1	)	$	(21	)

The following table presents the assets and liabilities measured at fair value on a recurring basis as of June 30, 2019 and 2018:

	June 30, 2019
	Fair Value		Level 1		Level 2		Level 3
	Unaudited
Description
Derivative assets	$	10		-	$	10		-
	$	10		-	$	10		-

	June 30, 2018
	Fair Value		Level 1		Level 2		Level 3
	Unaudited
Description
Derivative liabilities	$	47		-	$	47		-
	$	47		-	$	47		-

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Condensed Interim Consolidated Statements of Changes in Equity - USD ($) $ in Thousands	Ordinary Shares	Share capital and additional paid-in capital	Accumulated other comprehensive loss	Accumulated deficit	Total
Beginning Balance at Dec. 31, 2017		$ 80,270	$ (220)	$ (69,832)	$ 10,218
Beginning Balance, Shares at Dec. 31, 2017	3,356,689
Issuance of Ordinary shares, net		400			400
Issuance of Ordinary shares, net Shares	197,025
Issuance expenses, net		(44)			(44)
Other comprehensive income			(73)		(73)
Share-based compensation expense		28			28
Net income				397	397
Ending Balance at Jun. 30, 2018		80,654	(293)	(69,435)	10,926
Ending Balance, Shares at Jun. 30, 2018	3,553,714
Beginning Balance at Dec. 31, 2018		80,686	(333)	(68,842)	11,511
Beginning Balance, Shares at Dec. 31, 2018	3,553,714
Issuance of Ordinary shares, net		523			523
Issuance of Ordinary shares, net Shares	178,881
Exercise of options		316			316
Exercise of options, Shares	125,195
Issuance of Ordinary shares related to securities purchase agreement, net (see Note 7(4))		945			945
Issuance of Ordinary shares related to securities purchase agreement, net (see Note 7(4)), Shares	400,000
Other comprehensive income			97		97
Share-based compensation expense		39			39
Net income				176	176
Ending Balance at Jun. 30, 2019		$ 82,509	$ (236)	$ (68,666)	$ 13,607
Ending Balance, Shares at Jun. 30, 2019	4,257,790

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Condensed Interim Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
CURRENT ASSETS:
Cash and cash equivalents	$ 1,435	$ 1,410
Restricted bank deposits	327	332
Trade receivables	8,945	8,624
Other accounts receivable and prepaid expenses	1,695	829
Inventories	4,272	2,874
Total current assets	16,674	14,069
LONG TERM ASSETS	165	177
PROPERTY AND EQUIPMENT, NET	1,299	1,108
OPERATING LEASE RIGHT-OF-USE ASSETS, NET	929
OTHER INTANGIBLE ASSETS, NET	1,015	81
GOODWILL	5,147	4,676
Total assets	25,229	20,111
CURRENT LIABILITIES:
Current maturities of long term loans	634	467
Operating lease liabilities, current	527
Trade payables	5,527	4,106
Employees and payroll accruals	822	778
Deferred revenues	819	768
Advances net of inventory in progress	57
Accrued expenses and other liabilities	222	313
Total current liabilities	8,608	6,432
LONG-TERM LIABILITIES:
Long-term loans, net of current maturities	2,280	1,867
Operating lease liabilities, non-current	460
Accrued severance pay	274	301
Total long-term liabilities	3,014	2,168
EQUITY:
Share capital - Ordinary shares of NIS 80.00 nominal value: Authorized; 6,000,000 shares at June 30, 2019 and December 31, 2018; Issued and outstanding: 4,257,790 and 3,553,714 shares at June 30, 2019 and December 31, 2018, respectively	80,497	75,317
Additional paid-in capital	2,012	5,369
Accumulated other comprehensive income (loss)	(236)	(333)
Accumulated deficit	(68,666)	(68,842)
Total equity	13,607	11,511
Total liabilities and shareholders' equity	$ 25,229	$ 20,111

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Shareholders' Equity

6 Months Ended

Jun. 30, 2019

Stockholders' Equity Note [Abstract]

SHAREHOLDERS' EQUITY

NOTE 7: SHAREHOLDERS' EQUITY

1. Issuance of Ordinary Shares in connection with Standby Equity Distribution Agreements:

On May 8, 2017 the Company entered into a Standby Equity Distribution Agreement ("SEDA"), with YA II PN Ltd. ("YA"), for the sale of up to $2,000 of its Ordinary Shares to YA. The Company may effect the sale, at its sole discretion, during a four-year period for the 2017 SEDA, beginning on the date on which the Securities and Exchange Commission first declares effective a registration statement registering the resale of the Company's Ordinary Shares by YA. For each Ordinary Share purchased under the SEDA, YA will pay 93% of the lowest daily VWAP (as defined below) of the Ordinary Shares during the three consecutive trading days, following the date of an advance notice from the Company (provided such VWAP is greater than or equal to 90% of the last closing price of the Ordinary shares at the time of delivery of the advance notice). Notwithstanding the forgoing, the notice shall not exceed $500. "VWAP" is defined as of any date, to be such date's daily dollar volume-weighted average price of the Ordinary Shares as reported by Bloomberg, LP.  The Company may terminate the SEDA at any time upon prior notice to YA, as long as there are no advance notices outstanding and the Company has paid to YA all amounts then due.

In connection with the SEDA, the Company issued 67,307 Ordinary shares to YA as a commitment fee. The commitment fee is recorded as prepaid expenses according to the consumption of the SEDA. As of June 30, 2019, the balance of those prepaid expenses was $77.

During the year 2018, the Company issued to YA 197,025 Ordinary Shares, for a total amount of $372, net of $23 issuance expenses.

During the six months ended June 30, 2019, the Company issued to YA 158,023 Ordinary Shares, for a total amount of $465.

2. From February 19, 2019 until March 15, 2019, a total of 125,195 options were exercised for the amount of $316.

3. On February 25, 2019 the Company issued 20,858 Ordinary Shares (equivalent to $62) to officers of the Company related to Bonus payments approved by the Board of Directors and shareholders.

4. On May 16, 2019 the Company entered into and closed a securities purchase agreement with several Investors for the sale of 400,000 Ordinary Shares at a price of $2.50 per share, resulting in gross proceeds of $1 million and $59 issuance expenses. In addition, the Company issued to the investors 240,000 warrants with an exercise price of $3.30 per Ordinary Share. The warrants shall be exercisable for 3.5 years and shall be subject to a three-year vesting period as follows: one third of the warrants shall vest annually (upon the lapse of 12 months, 24 months and 36 months from issuance), provided that on the applicable vesting date the investor did not sell any of the Ordinary Shares purchased on the private placement. Vesting of all of the warrants shall be accelerated in the event that any one or more shareholders acting together acquire a block of 40% of the Company's issued and outstanding share capital.

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Unaudited Condensed Interim Consolidated Financial Statements

6 Months Ended

Jun. 30, 2019

Unaudited Condensed Interim Consolidated Financial Statements [Abstract]

UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

NOTE 3: UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

These 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, 2019 have been included. Operating results for the six-month period ended June 30, 2019 are not necessarily indicative of the results that may be expected for the year ended December 31, 2019, or any other interim period in the future.

The consolidated balance sheet at December 31, 2018 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, 2018 included in the Company's Annual Report on Form 20-F, filed with the Securities Exchange Commission on April 1, 2019.

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Acquisition of Business (Tables)

6 Months Ended

Jun. 30, 2019

Acquisition of Business [Abstract]

Schedule of purchase price allocation of acquired business

	June 01,
	2019
Cash paid		1,895
Total acquisition price	$	1,895
Recognized amounts of identifiable assets acquired:
Intangible assets, net		953
Property and equipment, net		91
Inventory		380
Net assets acquired		1,424
Goodwill		471

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Condensed Interim Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Cash flows from operating activities:
Net income	$ 176	$ 397
Adjustments required to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	152	134
Capital gain from sale of property and equipment	(10)
Currency fluctuation of loans and lease operating lease liabilities	184	(143)
Severance pay, net	(27)	(16)
Share-based compensation expenses	39	28
Decrease (increase) in trade receivables, net	(321)	1,567
Increase in other accounts receivable and other assets	(792)	(307)
(Increase) decrease in inventories	(962)	489
Increase (decrease) in trade payables	1,421	(1,702)
Increase (decrease) in employees and payroll accruals, deferred revenues, accrued expenses and other liabilities	4	(101)
Net cash used in (provided by) operating activities	(136)	346
Cash flows to investing activities:
Purchase of property and equipment	(232)	(464)
Proceeds from sale of property and equipment	10
Acquisition of business	(1,895)
Net cash used in investing activities	(2,117)	(464)
Cash flows from financing activities:
Proceeds from issuance of shares, net	558	384
Proceeds from issuance of shares related to securities purchase agreement, net (see Note 7(4))	945
Proceeds from issuance of shares related to options exercised, net	316
Proceeds from long-term bank loans	708
Repayment of long-term bank loans	(254)	(248)
Net cash provided by financing activities	2,273	136
Increase in cash and cash equivalents, and restricted cash	20	18
Cash, cash equivalents, and restricted cash at the beginning of the year	1,742	1,780
Cash, cash equivalents, and restricted cash at the end of the year	1,762	1,798
(1) Cash paid during the period for:
Interest	43	47
(2) Non-cash activities:
Prepaid expenses related to issuance of Ordinary shares related to SEDA 2017 (See Note 7)	(35)	(28)
Acquisitions of Imdecol:
Fair value of Property and equipment, net and inventory acquired at acquisition date:
Property and equipment, net	91
Inventory	380
Fair value of intangible assets acquired at acquisition date	1,424
Net cash used to pay for the Acquisition of Imdecol	$ 1,895

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Condensed Interim Consolidated Balance Sheets (Parenthetical) - ₪ / shares	Jun. 30, 2019	Dec. 31, 2018
Statement of Financial Position [Abstract]
Ordinary shares, par value per share	₪ 80.00	₪ 80.00
Ordinary shares, shares authorized	6,000,000	6,000,000
Ordinary shares, shares issued	4,257,790	3,553,714
Ordinary shares, shares outstanding	4,257,790	3,553,714

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Acquisition of Business (Details Textual) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Jun. 01, 2019	Dec. 31, 2018
Acquisition of Business (Textual)
Goodwill	$ 5,147	$ 471	$ 4,676
Imdecol Ltd [Member]
Acquisition of Business (Textual)
Purchase price, description	a. An advance of $276 was paid to Imdecol in cash upon signing the definitive agreement in March 2019; b. An additional approximately $1,619 was paid to Imdecol in cash at closing, on June 1, 2019. c. The final consideration will be paid by August 2020, according to the Formula of Consideration. Additional payment, if required, will be done in the following manner:
Ordinary shares value issued for payment	$ 417

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Significant Accounting Policies (Details Textual) $ in Thousands	Jun. 30, 2019 USD ($)
Significant Accounting Policies (Textual)
Operating lease right-of-use assets	$ 879