Company: OMQS
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010783
Chunk: 47

Company: OMNIQ Corp.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 2
Chunk 47
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 or a combination
of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement
of the Company’s annual or interim financial statements will not be prevented or detected on a timely basis. Based on such an evaluation,
our CEO concluded that, as of March 31, 2025, our internal controls over financial reporting were not effective.

As a result of our evaluation, we identified a material
weakness in our controls related to segregation of duties and other immaterial weaknesses in several areas of data management and documentation.

Our management is composed of a small number of professionals
resulting in a situation where limitations on segregation of duties exist. Accordingly, and as a result of the material weakness identified
above, we have concluded that the control deficiencies result in a reasonable possibility that a material misstatement of the annual or
interim financial statements may not be prevented on a timely basis by the Company’s internal controls. We continue to employ and
refine a structure in which critical accounting policies, issues and estimates are identified, and together with other complex areas,
are subject to multiple reviews by executives. In addition, we evaluate and assess our internal controls and procedures regarding our
financial reporting, utilizing standards incorporating applicable portions of the Public Company Accounting Oversight Board’s 2009
Guidance for Smaller Public Companies in Auditing Internal Controls Over Financial Reporting as necessary on an on-going basis.

While the material weakness set forth above was the
result of the scale of the Company’s operations and is intrinsic to its small size, the Company believes the risk of material misstatements
relative to financial reporting are minimal.

This annual report does not include an attestation
report of our registered public accounting firm regarding internal control over financial reporting. Management’s report was not
subject to attestation by its registered public accounting firm pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection
Act, which permits the Company to provide only management’s report in this annual report.

(c) Changes in Internal Control over Financial
Reporting

There were no changes in our internal control over
financial reporting, as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act, during our most recently completed fiscal quarter
that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

6

PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

The Company was named a defendant in a case involving
a former employee who claims