Company: OMQS
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023481
Chunk: 2

Company: OMNIQ Corp.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 2
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 receivables
as of September 30, 2024, and no customers accounted for more than 10% as of December 31, 2024.

For the nine months ended September 30, 2025 one vendor made up 13.9% of
our purchases, and for the year ended December 31, 2024 one vendor made up 15%, of our purchases.

The concentrations are based on the continuing operations and do not
include operations from subsidiaries sold.

    F-6

NOTE
4 – BUSINESS ACQUISITION

CodeBlocks
LTD

On January 30, 2024, OMNIQ’s wholly owned subsidiary, Dangot Computers Ltd. (“Dangot”), entered into a Share Purchase
Agreement (the “Purchase Agreement”) with CodeBlocks Ltd. (CodeBlocks”) and CodeBlocks’ owners, Alina Lifshits
and Erez Attia pursuant to which Dangot, acquired all of the capital stock of CodeBlocks in exchange for NIS 4,666,664 (approximately
US $ 1,275,044). The purchase Agreement closed on February 1, 2024. As noted in Note 12, this entity was sold on
June 30, 2025.

NOTE
5 – INVENTORY

Inventory
consisted of the following as of:

SCHEDULE
OF INVENTORY

    In thousands 
    September 30,
                                                                                2025  
    December 31,
                                                                                2024 

    Raw materials 
    $215  
    $287 
  
    Inventory in transit 
     46  
     4,076 
  
    Finished goods 
     4,172  
     49 
  
    Less allowance for obsolescence 
     (941) 
     (1,204)
  
    Total inventories (continuing operations) 
     3,492  
     3,208 
  
    Inventories related to discontinued operations 
     -  
     4,197 
  
    Total inventories 
    $3,492  
    $7,405 

NOTE
6 – CREDIT FACILITIES AND LINE OF CREDIT

We
maintain operating lines of credit, factoring and revolving credit facilities with banks and finance companies to provide us with working
capital.

On
January 18, 2024, the Company’s wholly owned subsidiary, Quest Marketing, Inc. (“Quest”)