Company: OMQS
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010783
Chunk: 36

Company: OMNIQ Corp.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 36
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, totaled $462 thousand, as compared to $917 thousand for the three months ended March 31, 2024.
The decrease is primarily attributable to the reduced line of credit.

Inflation

The Company’s results of operations have not
been materially affected by inflation and management does not expect inflation to have a material impact on its operations in the future.

Off- Balance Sheet Arrangements

The Company currently does not have any off-balance
sheet arrangements.

5

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES
ABOUT MARKET RISK

Not Applicable

ITEM 4. CONTROLS AND PROCEDURES

EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES

(a) Evaluation of Disclosure and Control Procedures

We maintain “disclosure controls and procedures”,
as such terms are defined under Exchange Act Rule 13a-15(e), that are designed to ensure that information required to be disclosed in
our Exchange Act reports is recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and
forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer (“CEO”)
and Principal Accounting Officer, as appropriate, to allow timely decisions regarding required disclosures. The Company acknowledges that
any controls and procedures can provide only reasonable assurances of achieving the desired control objectives.

We have carried out an evaluation as required by Rule
13a-15(d) under the supervision of and with the participation of our management, including our Chief Executive Officer and Principal Accounting
Officer, of the effectiveness of the design and operation of our disclosure controls and procedures as of March 31, 2025. Based upon their
evaluation, the Chief Executive Officer and Principal Accounting Officer concluded that, as of March 31, 2025, the Company’s disclosure
controls and procedures were not effective. Although we have determined that the existing controls and procedures are not effective, the
deficiencies identified have not been deemed material to our reporting disclosures.

(b) Management’s Report on Internal Controls
over Financial Reporting

The Company’s management is responsible for
establishing and maintaining adequate internal control over financial reporting, as such term is defined in Exchange Act Rules 13a-15(f)
and 15d-15(f). Internal control over financial reporting refers to the process designed by, or under the supervision of, our Chief Executive
Officer and Principal Accounting Officer, and affected by our Board, management and other personnel,