Company: OMQS
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001813
Chunk: 85

Company: OMNIQ Corp.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 2
Chunk 85
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-cash impairment of $14.7 million.

13

Other
Income and Expenses

The
Company incurred $3.5 million in interest expense for the year ended December 31, 2024,
compared to $3.3 million for the year ended December 31, 2023. The interest expense is comprised of interest incurred on promissory notes
payable, the company’s line of credit, and vendor payables.

Foreign
Currency Transactions

The
Company has multiple subsidiaries conducting operations in Israel, therefore there were transactions denominated in currency other than
US dollars for both 2024 and 2023. Foreign transaction gains and losses are reported on the consolidated statement of operations and
comprehensive loss and were included in the amount of loss from comprehensive income.

Provision
for Income Taxes

For the year ended December 31, 2024, the Company has $12 thousand of current
income tax expense (US State & Local and Foreign) and $882 thousand deferred income tax benefit.

For
the year ended December 31, 2023, the Company has $741 thousand of current income tax provision (US State & Local and Foreign) and
$221 thousand deferred income tax expense.

Net
loss

The
Company realized a net loss of $10 million for the year ended December
31, 2024, compared to a net loss of $29.4 million for the year ended December 31, 2023. The decreased loss in 2024 is due primarily to
impairment of goodwill from prior year not in 2024 and the decrease in revenue.

Liquidity
and Capital Resources

As
of December 31, 2024, the Company had cash in the amount of $2.3 million
and a working capital deficit of $54 million, compared to cash in the amount of $1.7 million, and a working capital deficit of $45 million
as of December 31, 2023. The Company had stockholders’ deficit attributable to OmniQ stockholders of $43.9 million and $35 million
as of December 31, 2024 and 2023, respectively. This increase in our stockholders’ deficit was primarily attributable to net losses.

The
Company’s accumulated deficit was $123.9 million and $113.9 million
as of December 31, 2024 and 2023, respectively.

The
Company’s operations provided net cash of $2.4 million and