Company: OMQS
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001813
Chunk: 155

Company: OMNIQ Corp.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 3
Chunk 155
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venues in 2024 and 2023 are presented in accordance with Accounting Standards
Codification Topic 606, Revenue from Contracts with Customers (“Topic 606”).

Net loss attributable to common stockholders’ of OMNIQ Corp was $10 million in 2024, a decrease of $19.5 million from the 2023 loss
of $29.5 million. Basic loss per share attributable to common stockholders was $0.94 for the year 2024 compared to $3.50 loss per share
for the year 2023.

On
April 1, 2022, the Company closed on its acquisition of Dangot and exercised the remaining portion of its option to purchase 23.0% of
the capital stock, thereby making Dangot a fully owned subsidiary of the Company. The Company paid $3,518,000 to purchase the additional
shares. The Company utilized its working capital and a combination of short- and long-term loans.

GOING
CONCERN

The
accompanying consolidated financial statements have been prepared assuming that we will continue as a going concern. The following are
the principal conditions or events which potentially raise substantial doubt about the company’s ability to continue as a going
concern:

    ●
    Balancing
    the need for operational cash with the need to add additional products.
  
    ●
    Timely
    and cost-effective development of products
  
    ●
    Working
    capital deficit of $54 million as of December 31, 2024
  
    ●
    Accumulated
    deficit of $124 million as of December 31, 2024
  
    ●
    Multiple
    years of losses from operations
  
    ●
    Year
    over year decrease in sales
  
    ●
    Noncompliance
    with certain debt covenants

Management
Evaluation

Management
considers the conditions outlined above as the most significant factors in raising substantial doubt about the Company’s ability
to continue as a going concern within one year after the date the financial statements are issued.

Management’s
Plans to Mitigate and Alleviate Conditions or Events

    ●
    Management
    is evaluating operating expenses and is developing a plan to reduce expenditures without negatively impacting current operations.
  
    ●
    Management
    has placed a strategic focus on increasing sales with prime customers.
  
    ●
    Sales
    efforts are focused on the most profitable product lines.
  
    ●
    Blue