{"url_path":"/sec/bosc/10-k/2026/item-4","section_key":"item-4","section_title":"Item 4 Information on","topic":"sec","document":{"doc_type":"20-F","doc_date":"2026-03-31","source_url":"https://www.sec.gov/Archives/edgar/data/1005516/0001213900-26-037333-index.html","accession_number":"0001213900-26-037333","cik":"0001005516","ticker":"BOSC","issuer_name":"BOS BETTER ONLINE SOLUTIONS LTD","edgar_url":"https://www.sec.gov/Archives/edgar/data/1005516/0001213900-26-037333-index.html","primary_entity_key":"0001005516","primary_entity_name":"BOS BETTER ONLINE SOLUTIONS LTD"},"word_count":1776,"has_tables":true,"body_markdown":"**Item 4: Information on\nthe Company**\n\n** **\n\n**4A.\nHistory and Development of the Company**\n\n** **\n\nB.O.S Better Online Solutions\nLtd was incorporated in Israel in 1990 and are subject to the Israeli Companies Law. Our executive offices, shipping and service operations\nare located in Israel. Our address in Israel is 20 Freiman Street, Rishon LeZion, 7535825, Israel. The Company’s Ordinary Shares\nare currently listed on the Nasdaq Capital Market under the symbol “BOSC”.\n\n \n\nOur address in the United\nStates is B.O.S. Better Online Solutions Ltd. c/o Ruby-tech, Inc. 147-20 184th St., Jamaica NY 11413, USA.\n\n \n\nOur telephone number is 972-3-954-2000\nand our website address is www.boscom.com. Our commercial websites are: Supply Chain Solutions Division – www.bossupplychain.com;\nRFID Division – www.bosrfid.com; and Intelligent Robotics Division – www.bosrobotics.com. The information contained\non, or linked from, our websites is not a part of this report. The SEC maintains an Internet site that contains reports, proxy and information\nstatements, and other information regarding issuers, such as we, that file electronically, with the SEC at www.sec.gov.\n\n \n\nIn May 2022, the Company purchased\n546 sqm of offices, 495 sqm of warehouses and nine parking spots in Rishon Le Zion, Israel. The purchased real-estate is part of the facilities\nBOS has been leasing. The purchase price was NIS 6.5 million (approximately $1.9 million).\n\n \n\nOn December 15, 2022, our\ngeneral meeting of shareholders approved an increase of 3,000,000 Ordinary Shares in the Company’s authorized share capital. Following\nsuch approval, the Company’s authorized share capital is 11,000,000 Ordinary Shares, of no nominal value.\n\n \n\nBOS implements cutting-edge\ntechnologies to optimize supply chain operations through its three business divisions:\n\n \n\n \n●\n**Our Supply Chain Solutions Division** is a global distributor of electromechanical components, primarily serving the defense and Hi-Tech industries.\n\n \n\nOur sales engineers work closely with the R&D and development teams of our customers to incorporate our franchised components into their new product designs. Once a product successfully transitions into production, BOS benefits from recurring orders, ensuring long-term revenue and strategic partnership with the customer.\n\n \n\n \n●\n**Our RFID Division** optimizes inventory management by marking and tracking inventory through the supply chain.\n\n \n\nIn January 2016, the Company completed\nthe acquisition of the assets of iDnext Ltd. and its subsidiary Next-Line Ltd., which offers on-site inventory count services in the fields\nof apparel, food, convenience and pharma, and asset tagging and counting services for corporate and governmental entities.\n\n \n\n \n●\n**Our Intelligent Robotics Division** automates the inventory process by replacing manual labor with robots.\n\n \n\nIn June 2019, the Company acquired\nthe business operations of Imdecol Ltd (“**Imdecol**”), in order to expand the Company’s technological capabilities\nand take advantage of the increasing demand for improvements in the productivity of industrial and logistic processes.\n\n \n\n15\n\n \n\n \n\n**4B.\nBusiness Overview**\n\n \n\nBOS manages its business in\nthree reportable segments: the Supply Chain Solutions Division, the RFID Division and the Intelligent Robotics Division.\n\n \n\nThe Company’s customers\nrepresent a cross-section of industry leaders, from the avionics, defense, retail, manufacturers and government markets. The Company’s\nSupply Chain Solutions customers include, among others, Vinyas and Sasmos Interconnection Systems Ltd. from the Indian market, and Refael\nand the Israel Aerospace Industries from the Israeli market. The Company’s RFID Division customers include Shufersal Ltd., Hamashbir\nLazarchan Ltd., Fox Vizel Ltd., The Central Company for Sales and Distribution Ltd and Tnuva Ltd. The Company’s Intelligent Robotics\ncustomers include, among others, Flextronics (Israel) Ltd., and IMI Systems Ltd.\n\n** **\n\n**BOS’ Product Offerings**\n\n* *\n\n*Supply Chain Solutions Division*\n\n \n\n* *\n\nThe Company’s Supply\nChain Solutions division represents global manufacturers and integrates their electro- mechanical components into the products of its\ncustomers from the Defense and Hi-Tech industries. Our team of engineers collaborates closely with the customers’ R&D engineers\nto ensure a seamless integration.\n\n \n\nThe Company’s Supply\nChain Solutions division represents and distributes engineering designs for sale on a non-exclusive basis of manufactures including, among\nothers, Amphenol TCS Inc., Positronic Global Connector Solutions, Sensata Technologies Inc., Integrated Power Designs, Inc., Net\nPower Inc., Switchcraft Inc., First Sensor A.G., Fema Electronics Corporation, Yeebo Group, SGC Technologies Inc., Fischer Connectors\nSA and Civue Optotech Inc. \n\n \n\nIn 2025, 70% of our revenues\nwere attributed to sales of the Supply Chain Solutions division.\n\n \n\n*RFID Division*\n\n \n\n \n\nRFID (Radio Frequency Identification)\nrefers to the use of an automatic identification method to remotely retrieve data using devices called RFID tags. An RFID tag is an object\nsuch as a pendant, bead, nail, label, micro wire or fiber, which can be applied to or incorporated into a product, animal, or person for\nthe purpose of identification using radio waves.\n\n \n\nThe RFID division optimizes\ninventory management throughout the supply chain by integrating into our customers’ production our proprietary software and third\nparties’ cutting-edge off the shelf equipment. This includes ruggedized equipment for industrial and logistics processes, such as\nhandheld computers, forklift tablets, industrial scanners, thermal printers, RFID readers and wireless access from leading manufacturers\nsuch as Zebra and Honeywell.\n\n \n\nThrough our proprietary interfaces,\neach inventory transaction on-site is reported instantly to the customers’ Enterprise Resource Planning (ERP) system, ensuring real-time\ndata update.\n\n \n\n16\n\n \n\n \n\nAs a complementary service,\ntwice a year (in general) we count our customers’ inventory in the warehouses and stores using our professional staff, equipment\nand proprietary software.\n\n \n\nIn 2025, 27% of our revenues\nwere attributed to sales generated from the Company’s RFID Division.\n\n \n\n*Intelligent Robotics Division*\n\n* *\n\n \n\nThe Intelligent Robotics Division\ndevelops custom-made robotics cells and integrates off-the-shelf robots into customers’ production lines, using its proprietary\nmechanical-electrical-software.   \n\n \n\nThe goal of our robotics cells\nis to reduce dependency on the workforce and increase capacities and accuracy in inventory production and logistic process. Accordingly,\nour robotic cells are machine-tending for production lines, meaning robots serve another production machine as well as palletizing robots\nfor logistic centers, instead of assisting human workers.\n\n \n\nIn 2025, 4% of our revenues\nwere attributed to sales generated from the Company’s Intelligent Robotics Division.\n\n \n\nTowards the end of 2021 the\nCompany has begun to shift the focus of its Intelligent Robotics division from the US markets to the Israeli market. The division has\nsince successfully transitioned to the Israeli defense sector, with more than 50% of its backlog attributed to this segment. In 2025,\n94% of the revenues of the Intelligent Robotics division were from the Israeli market.\n\n** **\n\n**Marketing, Distribution and Sales**\n\n** **\n\n*Supply Chain Solutions* Division\n\n \n\nThe Company markets its Supply\nChain Solutions directly to customers or through distributors worldwide. The Company’s sales force is comprised of direct sales\nteams and sales agents.\n\n* *\n\n*RFID Division*\n\n \n\nThe Company markets its solutions\nprimarily to medium and large sized corporations through a combination of direct sales and sales agents.\n\n \n\n*Intelligent Robotics Division *\n\n \n\nThe Company markets its solutions\nprimarily through a combination of direct sales and sales agents.\n\n \n\n**Seasonality**\n\n** **\n\nThe Company’s sales\nare subject to seasonality. The revenues of the first and fourth quarter are usually relatively higher than the revenues for the second\nand third quarter. The seasonality is attributable mainly to inventory counting services which generate a majority of their revenues in\nthe fourth and first quarter of the year.\n\n \n\n17\n\n \n\n \n\nThe following tables set forth\nthe Company’s revenues (in thousands of $), by major geographic areas and by divisions, for the periods indicated below:\n\n \n\n*Sales by major geographic areas ($ in thousands)*\n\n* *\n\n  \n2025  \n%  \n2024  \n%  \n2023  \n% \n\nIsrael \n$46,195  \n 91  \n$36,156  \n 91  \n$38,125  \n 86 \n\nFar East \n 5  \n -  \n 75  \n -  \n 1,331  \n 3 \n\nIndia \n 1,630  \n 3  \n 1,414  \n 3  \n 1,726  \n 4 \n\nAmerica \n 1,348  \n 3  \n 1,067  \n 3  \n 1,433  \n 3 \n\nEurope \n 1,391  \n 3  \n 1,236  \n 3  \n 1,513  \n 4 \n\nRest of the world \n -  \n -  \n 1  \n -  \n 51  \n - \n\nTotal Revenues \n$50,569  \n 100  \n$39,949  \n 100  \n$44,179  \n 100 \n\n* *\n\n*Sales by quarters*\n\n* *\n\n  \n2025  \n%  \n2024  \n%  \n2023  \n% \n\nQ1 \n$15,027  \n 30  \n$11,287  \n 28  \n$12,141  \n 27 \n\nQ2 \n 11,527  \n 23  \n 8,447  \n 21  \n 11,337  \n 26 \n\nQ3 \n 11,392  \n 22  \n 9,827  \n 25  \n 9,815  \n 22 \n\nQ4 \n 12,623  \n 25  \n 10,388  \n 26  \n 10,886  \n 25 \n\nTotal Revenues \n$50,569  \n 100  \n$39,949  \n 100  \n$44,179  \n 100 \n\n \n\n*Sales by divisions*\n\n \n\n  \n2025  \n%  \n2024  \n%  \n2023  \n% \n\nSupply Chain Solutions Division \n$35,545  \n 70  \n$25,829  \n 64  \n$28,845  \n 66 \n\nRFID Division \n$13,587  \n 27  \n$12,877  \n 32  \n$13,713  \n 31 \n\nIntelligent Robotics Division \n$1,847  \n 4  \n$1,410  \n 4  \n$1,742  \n 4 \n\nIntercompany \n$(410) \n (1) \n$(167) \n -  \n$(121) \n (1)\n\nTotal Revenues \n$50,569  \n 100  \n$39,949  \n 100  \n$44,179  \n 100 \n\n \n\n**Competition**\n\n** **\n\n*Supply Chain Solutions Division *\n\n** **\n\nThe Company maintains several\nrepresentation agreements with major manufacturers. In 2025, 52% of our Supply Chain Solutions Division’s purchases were sourced\nfrom five key suppliers. In particular, 22% of our Supply Chain Solutions division purchases in 2025 were sourced from Positronics Manufacturing\nCompany. These representation agreements are not exclusive.\n\n \n\nThe Company’s Israeli\ncompetitors for distribution to the electronic industry include the publicly traded Telsys Ltd. and STG International Electronics (1981)\nLtd., as well as Nisco Projects Ltd., Eastronics Ltd., Elimec Engineering Ltd. and Teder Electro Mechanical Engineering Ltd.\n\n \n\nIn the international market,\nthe Company’s competitors consist of mainly Arrow Electronics International Inc., Avnet Electronics Marketing, TTI Inc., PEI-Genesis\nInc., Weco Electrical Connectors Inc., Electro Enterprises Inc., Flame Enterprise Inc., Norstan Electronics Inc., Peerless Electronics\nInc. and Future Electronics. \n\n \n\n18\n\n \n\n \n\n*RFID Division*\n\n \n\nThe RFID market is subject\nto rapidly changing technology and evolving standards incorporated into robots, mobile equipment, Enterprise Resource Planning systems,\ncomputer networks and host computers. As the market grows, so does the number of competitors. A few of the competitors have greater financial,\nmarketing and technological resources than BOS.\n\n \n\nIn Israel, the Company’s\nmain competitors in the RFID market are eWave mobile Ltd., Dangot, Dannet Advanced Technologies Ltd. and Globe Tag Ltd.\n\n \n\n*Intelligent Robotics Division *\n\n \n\nOur Intelligent Robotics Division\nprimary target market is the Israeli market. Main competitors in this territory include GBM Automation and Robotics Ltd and Automatica\nLtd.\n\n \n\n**Strategy **\n\n \n\nThe Company’s vision\nis to become a leading provider of comprehensive solutions to enterprises that improve inventory control and increase productivity of\nproduction and logistics processes. The Company operates through three divisions that offer equipment (Supply Chain Solutions division),\nservices (RFID division) and custom-made automatic machines (Intelligent Robotics division). \n\n** **\n\n**Exchange Controls**\n\n** **\n\nSee “Item 10D. Exchange\nControls.”\n\n \n\nFor other government regulations\naffecting the Company’s business, see “Item 5A. Results of Operations – Grants and Participation.”\n\n \n\n**4C.\nOrganizational Structure**\n\n** **\n\nThe Company’s wholly\nowned subsidiaries include:\n\n \n\nIn Israel:\n\n \n\n \n(1)\nBOS-Dimex, an Israeli corporation, part of the Intelligent Robotics division and RFID division; and\n\n \n\n \n(2)\nBOS-Odem, an Israeli corporation, part of the Supply Chain Solutions division.\n\n \n\nIn the United States:\n\n \n\nRuby-Tech Inc., a New York corporation,\na wholly owned subsidiary of BOS-Odem and a part of the Supply Chain Solutions division.\n\n \n\n**4D.\nProperty, Plants and Equipment**\n\n** **\n\nOur offices are located in\nthe following facility in Israel:\n\n \n\n**Location**\n \n**Size (square meters)**\n \n**Lease period**\n\nRishon LeZion\n \n1,695\n \nThrough September 2028 (excluding extension options)\n\nRishon LeZion\n \n1,029\n \nOwned\n\n \n\nOur average monthly rental\nfees for the year 2025 and for the year 2024 amounted to $17,000 and $13,000, respectively.\n\n \n\n19"}