Company: OMQS
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001641172-25-024877
Chunk: 77

Company: OMNIQ Corp.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 8
Chunk 77
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 the sale of the legacy business.

Intangible
amortization – Intangible amortization expenses for the six months ended June 30, 2025, and 2024 totaled $468 thousand
and $458 thousand, respectively. The modest increase is due the timing of amortization of customer relationships, trade names and other
intangible assets.

Other
income and expenses

Interest
Expense – Interest expense for the six months ended June 30, 2025, totaled $403 thousand, compared to $538 thousand for the
six months ended June 30, 2024. The change in interest expense is attributable to fluctuations in borrowings under the Company’s
credit facilities and the retirement of debt associated with the legacy business. Other income and expenses include a gain on debt settlement
of $325 thousand recorded in the six months ended June 30, 2025, and $0 in the comparable 2024 period.

Discontinued
operations – On June 30, 2025, the Company completed the sale of its legacy business. As a result, the assets and liabilities
of the legacy business were classified as held for sale and its results of operations for all periods presented have been reported as
discontinued operations. For the six months ended June 30, 2025 and 2024, loss from discontinued operations (net of tax) was $1.7 million
and $1.0 million, respectively. The increase in loss from discontinued operations reflects transaction-related expenses and a one-time
loss on the sale of certain assets.

Net
income (loss) – For the six months ended June 30, 2025, the Company recorded a net loss of $34 thousand, compared with a net
loss of $5.1 million for the six months ended June 30, 2024. The significant improvement in net results was driven by higher margins
on continuing operations, lower operating expenses and the gain on debt settlement, partially offset by increased loss from discontinued
operations.

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