Company: OMQS
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001641172-25-024877
Chunk: 2

Company: OMNIQ Corp.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 2
Chunk 2
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 statements, with further detail provided in the accompanying Notes.

The
Company’s sales for the six months ended June 30, 2025, and 2024, were $15.8 million and $17.6 million, respectively. The decrease
between the six-month periods was attributable to deceleration of projects by customers.

The
loss from operations for the six months ended June 30, 2025, was $678 thousand, a decrease of $569 thousand compared with the loss in
the six months ended June 30, 2024, of $2.27 million. Basic loss per share from continuing operations for the six months ended June 30,
2025, was ($0.00) versus ($0.48) per share for the same period in 2024. Comprehensive loss for the six months ended June 30, 2025 and
2024 was $1.87 million and $3.7 million respectively, the only component to comprehensive loss besides net loss is foreign currency translation.

LIQUIDITY
AND CAPITAL RESOURCES

As
of June 30, 2025, the Company had cash in the amount of $2.2 million and a working capital deficit of $10.9 million, compared to cash
in the amount of $2.3 million, and a working capital deficit of $54.4 million as of December 31, 2024. The Company had stockholders’
deficit attributable to OmniQ stockholders of $11 million and $43.8 million as of June 30, 2025, and December 31, 2024, respectively.
This decrease in our stockholders’ deficit was primarily attributable to sale of assets.

The
Company’s accumulated deficit was $124 million and $124 million as of June 30, 2025, and December 31, 2024.

The
Company’s operations provided net cash of $6.08 million and used $3.6 million in the six months ended June 30, 2025, and 2024,
respectively. The increase in cash provided in operations of approximately $10 million is due to the increase in revenue and decrease
in overhead.

The
Company’s cash used in investing activities was $2.5 million for the six months ended June 30, 2025, compared to cash used in investing
activities of $103 thousand for the six months ended June 30, 2024.

The
Company’s financing activities