{"url_path":"/sec/bosc/10-k/2026/item-5","section_key":"item-5","section_title":"Item 5 Operating and","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":4123,"has_tables":true,"body_markdown":"**Item 5: Operating and\nFinancial Review and Prospects**\n\n** **\n\nThe following management’s\ndiscussion and analysis of financial condition and results of operations should be read in conjunction with our financial statements and\nnotes thereto. Certain matters discussed below and throughout this annual report are forward-looking statements that are based on our\nbeliefs and assumptions as well as information currently available to us. Such forward-looking statements may be identified by the use\nof the words “anticipate”, “believe”, “do not believe”, “estimate”, “expect”,\n“plan”, “intend”, “projections”, “forecast”, “may”, “continue”,\n“should”, “predict”, “potential” or the negative of these terms or similar expressions. Such statements\nreflect our current views with respect to future events and are subject to certain risks and uncertainties. While we believe such forward-looking\nstatements are based on reasonable assumptions, should one or more of the underlying assumptions prove incorrect, or these risks or uncertainties\nmaterialize, our actual results may differ materially from those described herein. The dollar amounts discussed in this section are in\nthousands unless otherwise indicated.\n\n \n\n**Overview**\n\n \n\nBOS is a provider of comprehensive\nsolutions to enterprises comprised of services, equipment and custom-made automatic machines that improve inventory control and increase\nproductivity of production and logistic processes. BOS manages its business in three reportable divisions: the Supply Chain Solutions\nDivision, the RFID Division and the Intelligent Robotics Division.\n\n \n\n**Key measures of our performance**\n\n* *\n\nBOS integrates cutting-edge\ntechnologies to streamline and enhance supply chain operations across three specialized divisions: the Supply Chain division, the RFID\ndivision and the Intelligent Robotics division.\n\n \n\n \n\nThe Supply Chain Solutions\ndivision provides a kit of electro-mechanical components for its client. It buys all parts directly from the manufacturers that we represent\nor in the open market.\n\n \n\nThe RFID division product\noffering includes: (i) sale of Automatic Identification Data Capture Equipment (“AIDC”), which we buy from distributors. This\nequipment comprises ruggedized handheld computers, barcodes, and RFID scanners and printers. In most cases, the equipment is sold with\na service contract for repairs; (ii) sale of software licenses and implementation of Warehouse Management Systems of Mantis Informatics\nIsrael Ltd.; and (iii) provision of inventory counting services for retail stores and warehouses.\n\n \n\n20\n\n \n\n \n\nThe Intelligent Robotic division\nprovides custom-made mechanical automation (“Robots”) for the industrial and logistic processes. Our Robots are based on our\nmechanical design, metal sheets that are manufactured for the specific robot, and the integration of off-the-shelf components and other\nrobots.\n\n \n\nWe generate revenues and deliver\nservices principally through our sales team.\n\n \n\nOur revenues are influenced\nby several factors, including, among other things, (i) the capital expenditure budgets of end-users and potential end-users, all of which\nmay be significantly influenced by macroeconomic factors, and (ii) the lead time of our products, especially under the current global\nshortage of components.\n\n \n\n**Costs of revenues**\n\n \n\nCosts of revenues consist\nprimarily of the cost of products we purchase. Costs of products also include labor costs of the production team in the Intelligent Robotic\ndivision, technicians in the RFID division, warehouse staff, rent and other facilities expenses and depreciation.\n\n \n\nFor\nthe year ended December 31, 2025, a hypothetical 1% rise in products prices that we buy would have caused an approximate $340,000\nincrease in costs of revenues in our Consolidated Statements of Operations. As to wages and related benefits, a 10% increase in wages\ndue to wage inflation would have caused an approximate $749,000 increase in costs of revenues in our Consolidated Statements of Operations. During\n2025, we faced trends of inflation in commodities prices and wages costs and we are reflecting these costs in our price list. For further\ninformation, please see “Item 11. Quantitative And Qualitative Disclosures About Market Risk” in this annual report.\n\n** **\n\n**Gross profit**\n\n \n\nThe gross profit and gross\nmargin for our products were influenced mostly by the mix of our products sold, and the improvement in the results of the Intelligent\nRobotics division, from a gross profit of $185,000 in year 2023 to a gross profit of $331,000 in the year 2024 and $430,000 in the year\n2025.\n\n \n\n**Operating expenses**\n\n \n\nOur operating expenses for\n2025 consisted mainly of selling, general and administrative expenses and impairment of goodwill and other intangible assets.\n\n \n\nOur selling, general and administrative\nexpenses include employee compensation and employee-related expenses for marketing, sales and other sales-operation positions, and for\nmanagerial and administrative functions, including executive officers, accounting, legal, information technology and human resources.\nThis category of expenses also covers commissions, advertising and promotions expenses, professional service fees, respective depreciation,\namortization expenses related to certain intangible assets, as well as associated overhead.\n\n \n\nCommissions consist of sales-based\ncommissions to independent sales agents and internal sales personnel. Commission rates vary, depending on the geographic location of the\nagent, type of products sold, and the degree of achievement of certain performance targets. Our advertising and promotion expenses consist\nprimarily of media advertising costs, trade and consumer marketing expenses, which aim to strengthen the leadership of our brand in key\nvertical markets.\n\n \n\nFacilities costs that are\nincluded in our selling, general and administrative expenses include an allocated portion of the occupancy costs for our facilities where\nsales, marketing and administrative personnel are located. Professional service fees for accounting and legal services are also included\nin selling, general and administrative expenses.\n\n** **\n\n21\n\n \n\n** **\n\n**Legal Contingencies**\n\n \n\nNone\n\n \n\n**5A.\nResults of Operation**\n\n** **\n\n**Comparison of 2025 to 2024**\n\n \n\nRevenues for 2025 increased\nby 26.5% to $50.5 million from $40 million in 2024. The primary driver of growth was heightened geopolitical tension in Israel and Europe,\nwhich increased demand for our Supply Chain division’s products. Revenues of the Supply Chain division increased by 37.6% to $35.5\nmillion in 2025 from $25.8 million in 2024. Revenues of the RFID division increased by 5.5% to $13.6 million in 2025 from $12.9 million\nin 2024. Revenues of the Robotics division increased by 3.1% to $1.85 million in 2025 from $1.4 million in 2024.\n\n \n\nGross profit for 2025 was\n$12.1 million (a gross profit margin of 23.9%) compared to $9.3 million (a gross profit margin of 23.5%) for 2024. The relatively high gross profit margin in 2025 reflected a favorable product mix compared to prior periods.\n\n \n\nGross profit for 2025 in the\nSupply Chain division was $8.7 million (a gross profit margin of 24.6%) compared to $5.4 million (a gross profit margin of 21%) for 2024.\n\n \n\nGross profit for 2025 in the RFID division was $2.9 million (a gross profit margin of 21.3%), compared to $3.5 million (a gross profit\nmargin of 27.4%) for 2024. The decrease was primarily due to operational inefficiencies identified during 2025, which we are actively\naddressing through operational improvement measures implemented during the year. The relatively high gross profit margin in 2024 also\nreflected a favorable product mix compared to prior periods, which did not recur in 2025.\n\n \n\nGross profit for 2025 in the\nRobotics division was $0.4 million (a gross profit margin of 23.3%) compared to $0.3 million (a gross profit margin of 23.5%) for 2024.\n\n \n\nSales and marketing expenses\nfor 2025 increased to $5.2 million from $4.4 million in 2024, consistent with the increase in revenues during the period. The increase\nalso includes approximately $250,000 attributable to the appreciation of the NIS against the U.S. dollar during the year 2025.\n\n \n\nGeneral and administrative\nexpenses increased to $2.5 million in 2025 from $2.1 million in 2024. The increase includes $80,000 of costs related to the execution\nof a sales agreement with A.G.P./Alliance Global Partners for the sale of up to $4 million of the Company’s Ordinary Shares in an\nat-the-market offering. In addition, the appreciation of the NIS against the U.S. dollar during the year 2025 increased general and administrative\nexpenses by approximately $120,000 in 2025 compared to 2024.\n\n \n\nThe ongoing political tensions\nin Israel since 2023, and the continued conflict throughout 2024 and 2025, negatively impacted the Israeli commercial market, which constitutes\nthe primary revenue base for the RFID division. Following a cumulative revenue decline of 12% in the RFID division between 2022 and 2025,\nthe Company recorded an impairment of intangible assets and goodwill of $1.2 million in 2025 and $0.7 million in 2024.\n\n \n\nFinancial income increased\nto $590,000 in 2025 from financial expenses of $139,000 in 2024. The change was driven primarily by foreign exchange gains of $806,000\nin 2025, compared to foreign exchange losses of $58,000 in 2024, reflecting the appreciation of the NIS against the U.S. dollar of 7%\nin 2025 compared to 0.3% in 2024.\n\n \n\nNet profit for 2025 was $3.6\nmillion compared to $2.3 million in 2024. Basic and diluted net income per share for 2025 were $0.59 and $0.57, respectively, compared\nto basic and diluted net income per share of $0.40 and $0.39 for 2024.\n\n \n\nFor a discussion of our\nfinancial results for the year 2024 see item 5A included in our annual report on Form 20-F for the year ended December 31, 2024, which\nwas filed with the U.S. Securities and Exchange Commission on March 31, 2025.\n\n \n\n**Variability of Quarterly Operating Results**\n\n** **\n\nOur revenues and profitability\nmay vary in any given year, and from quarter to quarter, depending on the mix of products sold. In addition, due to potential competition\nand other factors, we may be required to reduce prices for our products and services in the future.\n\n \n\nOur future results will be\naffected by a number of factors including our ability to:\n\n \n\n \n●\nestablish effective sales channels and manage them;\n\n \n \n \n\n \n●\nintroduce and deliver new products on a timely basis;\n\n \n \n \n\n \n●\nanticipate accurately customer demand patterns;\n\n \n\n \n●\nmanage future inventory levels in line with anticipated demand; and\n\n \n \n \n\n \n●\nsuccessfully meet bank financial covenants.\n\n \n\n22\n\n \n\n \n\nThese results may also be\naffected by currency exchange rate fluctuations and interest rate and economic conditions in the geographical areas in which we operate.\nThere can be no assurance that our historical trends will continue, or that revenues, gross profit and net income in any particular quarter\nwill not be lower than those of the preceding quarters, including comparable quarters.\n\n \n\n**Effective Corporate Tax Rate**\n\n** **\n\nCommencing January 1, 2018,\nthe corporate tax rate is 23%.\n\n \n\n**Conditions in Israel**\n\n** **\n\nWe are incorporated under\nthe laws of the State of Israel, where we also maintain our headquarters and our research and development and manufacturing facilities.\nSee Item 3D. “Risk Factors – Risks Relating to Our Location in Israel” for a description of governmental, economic,\nfiscal, monetary or political polices or factors that have materially affected or could materially affect our operations.\n\n \n\n**5B.\nLiquidity and Capital Resources**\n\n \n\nIn the year ended December\n31, 2025, the Company had net profit of $3.63 million as compared to net profit of $2.3 million in the year 2024 and a net profit of $2.06\nmillion in the year 2023. In the year ended December 31, 2025, the Company generated a positive cash flow from operating activities amounting\nto $5 million as compared to a positive cash flow from operating activities amounting to $1.3 million in 2024 and a positive cash flow\nfrom operating activities amounting to $1.83 million in 2023. The Company’s cash and cash equivalents amounted to $11.9 million\nas of December 31, 2025. The Company had a positive working capital of $22.4 million, $13.7 million and $11.14 million, as of December\n31, 2025, December 31, 2024 and December 31, 2023, respectively.\n\n \n\nWe finance our activities\nby different means, including short and long-term loans, cash flow from operating activities and issuance of Company shares.\n\n** **\n\nWorking capital requirements\nwill vary from time-to-time and will depend on numerous factors, including but not limited to, the operating results, scope of sales and\nsupplier and customer credit terms.\n\n \n\nAs of December 31, 2025, we\nhad $972,00 in long-term debt (net of current maturities of $148,000) and $672,000 of short-term bank loans.\n\n \n\nThe Company’s loans\nfrom Bank Beinleumi are secured by:\n\n \n\n \n●\nA first ranking fixed charge on any unpaid share capital of the Company, the goodwill of the Company, and any insurance entitlements in the Company’s assets pledged thereunder; and\n\n \n \n \n\n \n●\nFloating charges on all of the assets of the Company and our Israeli subsidiaries, owned now or in the future.\n\n \n\nThe Company also guarantees\nthe liabilities of its Israeli subsidiaries to Bank Beinleumi and each of its Israeli subsidiaries guarantees the Company’s liabilities\nto Bank Beinleumi.\n\n \n\nIn August 2022, the Company’s\nwholly owned subsidiary, BOS-Dimex Ltd., received a loan in the amount of $1.28 million (NIS 4,500,000) from Bank Leumi in order to finance\nthe purchase by the Company of the warehouse and office space in Rishon Lezion.\n\n \n\nWe rely on Bank Beinleumi\nto provide all of the credit facilities to our subsidiaries. In October 2017, we replaced all our Bank Leumi credit facilities with credit\nfacilities from Bank Beinleumi, so that currently all of our outstanding bank debt, except for the loan to purchase our warehouse and\noffice space and another non-material loan, is owed to Bank Beinleumi.\n\n \n\n23\n\n \n\n \n\nOn January 4, 2021, the Company\nentered into a definitive agreement with institutional investors for the purchase and sale of 800,000 Ordinary Shares and 720,000 warrants\nat a combined purchase price of $2.50 in a registered direct offering, which resulted in gross proceeds of $2 million. The warrants have\nan exercise price of $2.75 per Ordinary Share and in 2025 all have been exercised.\n\n \n\nIn October 2022, the Company\nextended the expiration date to November 16, 2025, of 300,000 warrants with an exercise price of $3.30 per ordinary share, which were\nissued in 2019 in connection with an equity financing. All of these warrant have been exercised in 2025.\n\n \n\nIn May 2022, the Company completed\nthe sale of 450,000 Ordinary Shares and 225,000 warrants at a combined purchase price of $990,000 in a registered direct offering with\nseveral investors. The warrants have an exercise price of $2.20 per Ordinary Share, are immediately exercisable and will expire in five\nyears from the issue date.\n\n \n\nIn September 2025, the Company\nentered into a sales agreement with A.G.P./Alliance Global Partners for the sale of up to $4 million of the Company’s Ordinary Shares\nin an at-the-market offering (the “**Sales Agreement**”). The Sales Agreement provides that the commission payable to the\nagent for sales of Ordinary Shares shall be 3% of the gross proceeds of such sale. The Sales Agreement contains customary representations\nand warranties of the parties and indemnification and contribution provisions under which the Company and the agent have agreed to indemnify\neach other against certain liabilities, including liabilities under the Securities Act. The agent and the Company have the right, by giving\nwritten notice as specified in the Sales Agreement, to terminate the Sales Agreement. As of December 31, 2025, the Company did not sell\nany Ordinary Shares under the Sales Agreement.\n\n \n\nWe have in-balance sheet financial\ninstruments and off-balance sheet contingent commitments. Our on-balance sheet financial instruments consist of our assets and liabilities.\nOur cash is held in bank accounts in U.S. dollars and NIS bearing no interest. As of December 31, 2025, our trade receivables’ and\ntrade payables’ aging days were 113 and 75 days, respectively. The fair value of our financial instruments is similar to their book\nvalue. Our off-balance sheet contingent commitments consist of: (a) royalty commitments that are directly related to our future revenues,\n(b) lease commitments of our premises and vehicles, and (c) directors’ and officers’ indemnities, in excess of the proceeds\nreceived from liability insurance, which we obtain.\n\n \n\nThe Company had working capital\nof $22,360,000 as of December 31, 2025. It is the Company’s opinion that current working capital is sufficient for the Company’s\nongoing operation. The Company may grow its business through acquisitions of complementary business for both divisions. In order to finance\nsuch acquisitions, the Company might need to significantly increase its debt and raise additional equity financing.\n\n \n\n**Cash Flows**\n\n \n\nNet cash provided by operating\nactivities increased to $5 million in 2025 from $1.3 million in 2024, mainly due to a decrease in trade payables.\n\n \n\nNet cash used in investment\nactivities in 2025 amounted to $452,000, attributed to the purchase of property and equipment. Net cash used in investment activities\nin 2024 amounted to $519,000, attributed to the purchase of property and equipment. Net cash used in investment activities in 2023 amounted\nto $772,000 used mainly for purchasing property and equipment in the amount of $341,000 (see Note 7 to the financial statements) and to\nthe acquisition of Proteus and Microwave’s assets in the amount of $431,000 (see Note 3 to the financial statements).\n\n \n\nNet cash provided by financing\nactivities in 2025 amounted to $3.8 million, attributed mainly to proceeds from exercise of options and warrants in the amount of $3.6\nmillion. Net cash provided by financing activities in 2024 amounted to $217,000, attributed mainly to proceeds from short and long term\nbank loans in the amount of $265,000 and to proceeds from issuance of shares and exercise of options in the amount of $119,000. Net cash\nused in financing activities in 2023 amounted to $389,000, attributed mainly to the repayment of short and long term bank loans in the\namount of $584,000.\n\n \n\n24\n\n \n\n \n\n**5C.\nResearch and Development**\n\n** **\n\nOur research and development\nis attributed to the Intelligent Robotics division and consists of the engineering resources required to develop custom-made automation\nconcepts for potential customers. Research and development expenses were $178,000 for the year ended December 31, 2025, compared to $175,000\nfor the year ended December 31, 2024.\n\n \n\n**5D.\nTrend Information**\n\n** **\n\nBOS’ vision is to become\na leading integrator of comprehensive technological solutions that improve the control over and the productivity of inventory production\nand logistics processes. BOS’ solutions comprise of services, equipment, software and custom-made automatic machines. BOS operates\nthrough three divisions: Supply Chain, RFID and Intelligent Robotics.\n\n \n\nA significant factor driving\nour growth is the substantial portion of our revenues being derived from the defense sector—an industry experiencing strong and\nsustained expansion. As defense spending continues to rise globally, we believe that we are well-positioned to capitalize on these opportunities\nand achieve future growth.\n\n \n\nThe Supply Chain’s flagship\ncustomers are the Israel Aerospace Industries, Elbit Systems, and Rafael that are global leaders in the defense segment. We supply to\nthem directly and also indirectly through sales to their subcontractors worldwide, spanning the USA, India, and numerous European countries.\n\n \n\nThe Intelligent Robotics division\nhas successfully transitioned to the defense sector, with 90% of its backlog serving this rapidly growing market. The Intelligent Robotics\ndivision’s flagship customer is Elbit Systems, a global leader in the defense industry.\n\n \n\nThe ongoing geopolitical tensions in Israel since October 2023 have continued to adversely affect the Israeli commercial market, which\nrepresents the primary revenue base for this division. As a result, we recorded goodwill impairment charges of $700,000 in 2024 and an\nadditional $1.2 million in 2025 (as further described in Note 8 to our consolidated financial statements). To reduce our exposure to the\ngeopolitically sensitive Israeli commercial market, we plan to invest throughout 2026 in expanding into more stable regulated sectors,\nincluding medical and defense. Doing so will require broadening our product offering, hiring personnel with relevant domain expertise,\nand establishing new customer relationships, with revenue contributions expected to begin in 2027, subject to the successful execution\nof these initiatives.\n\n \n\n**5E.\nCritical Accounting Estimates**\n\n \n\nOur discussion and analysis\nof our financial condition and results of operations is based on our consolidated financial statements, which have been prepared in accordance\nwith accounting principles generally accepted in the United States. The preparation of our financial statements in conformity with generally\naccepted accounting principles in the United States requires our management to make estimates and assumptions that affect the reported\namounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the\nreported amounts of revenues and expenses during the reporting period. These amounts and disclosures could potentially be materially different\nunder other assumptions and conditions. These are our management’s best estimates based on experience and historical data; however,\nactual results could differ materially from these estimates. Our significant accounting principles are presented within Note 2 to our\nConsolidated Financial Statements attached to this annual report. While all the accounting policies impact the financial statements, certain\npolicies may be viewed to be critical. Management believes that the following policies are those that are most important to the portrayal\nof our financial condition, results of operations and for fully understanding and evaluating our reported results:\n\n \n\n \n●\nInventories\n\n \n\n \n●\nGoodwill\n\n \n\na.\nInventories:\n\n \n \n\n \nThe inventory is valued at the lower of cost or net realizable value. Cost is determined using the moving average cost method. In 2025 and 2024, inventory write-down amounted to $784 and $563, respectively.\n\n \n \n\n \nInventory write-offs and write-downs are provided to cover risks arising from slow-moving items or technological obsolescence.\n\n \n\n25\n\n \n\n \n\nb.\nImpairment of long-lived assets and intangible assets subject to amortization:\n\n \n\nThe Company’s long-lived\nassets are reviewed for impairment in accordance with ASC 360-10, *Accounting for the Impairment or Disposal of Long-Lived Asset*,\nwhenever events or changes in circumstances indicate that the carrying amount of an asset (or asset group) may not be recoverable. Recoverability\nof assets to be held and used is measured by a comparison of the carrying amount of an asset (or asset group) to the future undiscounted\ncash flows expected to be generated by the assets (or asset group). If such assets are considered to be impaired, the impairment to be\nrecognized is measured as the amount by which the carrying amount of the assets exceeds their fair value.\n\n \n\nRecoverability of intangible\nassets is measured by a comparison of the carrying amount of the asset to the undiscounted future cash flows expected to be generated\nby the asset. If intangible assets are considered to be impaired, the amount of any impairment is measured as the difference between the\ncarrying value and the fair value of the impaired assets.\n\n \n\nIntangible assets with finite\nlives are amortized using the straight-line basis over their useful lives, to reflect the pattern in which the economic benefits of the\nintangible assets are consumed or otherwise used up. As of December 31, 2025, the remaining intangible assets were comprised of suppliers’\nrelationships.\n\n \n\nc.\nGoodwill:\n\n \n\nGoodwill represents excess\nof the costs over the net assets of businesses acquired. Under ASC 350, Intangibles - Goodwill and Other (“ASC 350”), goodwill\nis not amortized but instead is tested for impairment at least annually or between annual tests in certain circumstances, and written-down\nwhen impaired.\n\n \n\nThe Company performs its annual\nimpairment analysis of goodwill as of December 31 of each year, or more often if indicators of impairment are present. The provisions\nof ASC 350 require that the impairment test be performed on goodwill at the level of the reporting unit. As required by ASC 350, the Company\nchooses either to perform a qualitative assessment whether a goodwill impairment test is necessary or proceeds directly to the goodwill\nimpairment test. Such determination is made for each reporting unit on a stand-alone basis. The qualitative assessment includes various\nfactors such as macroeconomic conditions, industry and market considerations, cost factors, overall financial performance, earnings multiples,\ngross margin and cash flows from operating activities and other relevant factors. When the Company chooses to perform a qualitative assessment\nand determines that it is more likely than not (more than 50 percent likelihood) that the fair value of the reporting unit is less than\nits carrying value, then the Company proceeds to the goodwill impairment test. If the Company determines otherwise, no further evaluation\nis necessary.\n\n \n\nCommencing upon the adoption\nof ASU 2017-04 (which eliminated Step 2 from the goodwill impairment, for goodwill impairment tests performed in fiscal years beginning\nafter December 15, 2019) when the Company decides or is required to perform the goodwill impairment test, the Company compares the fair\nvalue of the reporting unit to its carrying value and an impairment charge is recognized for the amount by which the carrying amount exceeds\nthe reporting unit’s fair value, if any.\n\n \n\nThe Company operates in three\noperating-based segments: the Supply Chain Solutions division, the RFID division and the Intelligent Robotics division. As of December\n31, 2025, all of the Company’s goodwill related to the RFID Division.\n\n \n\nUnder the RFID Division segment\nthere is one reporting unit with an allocated goodwill amount of approximately $3 million. The Company performed an impairment analysis\nas of December 31, 2024, using the income approach and concluded that the fair value of such reporting unit is below its carrying\nvalue. The Company performed an impairment analysis as of June 30, 2025, and as of December 31, 2025, using the income approach and\nconcluded that the fair value of such reporting unit is below its carrying value. Accordingly, on June 30, 2025, the Company recorded\nan impairment loss of goodwill with respect to such unit in a sum of $700,000 on December 31, 2025, the Company recorded an impairment\nloss of goodwill with respect to such unit in a sum of $500,000\n\n \n\n26"}