Company: OMQS
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023481
Chunk: 19

Company: OMNIQ Corp.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 19
---
 of our data.

Managing
Material Risks & Integrated Overall Risk Management

We
have strategically integrated cybersecurity risk management into our broader risk management framework to promote a company-wide culture
of cybersecurity risk management. This integration ensures that cybersecurity considerations are an integral part of our decision-making
processes at every level. Our management team continuously evaluates and addresses cybersecurity risks in alignment with our business
objectives and operational needs.

Oversee
Third-party Risk

Because
we are aware of the risks associated with third-party service providers, we have implemented stringent processes to oversee and manage
these risks. We conduct thorough security assessments of all third-party providers before engagement and maintain ongoing monitoring
to ensure compliance with our cybersecurity standards. The monitoring includes annual assessments of the SOC reports of our providers
and implementing complementary controls. This approach is designed to mitigate risks related to data breaches or other security incidents
originating from third-parties.

Risks
from Cybersecurity Threats

We
have not encountered cybersecurity challenges that have materially impaired our operations or financial standing.

6

ITEM
3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Not
Applicable

ITEM
4. CONTROLS AND PROCEDURES

EVALUATION
OF DISCLOSURE CONTROLS AND PROCEDURES

Disclosure
controls and procedures are designed to ensure that information required to be disclosed by us in the reports that we file or submit
under the Exchange Act 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 and Chief Financial
Officer, as appropriate, to allow timely decisions regarding required disclosure.

As
required by Rules 13a-15(b) and 15d-15(b) under the Exchange Act, our Chief Executive Officer and Chief Financial Officer carried out
an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures as of September 30, 2025. Based
upon their evaluation, our Chief Executive Officer and Chief Financial Officer concluded that, due to the previously reported material
weakness in internal control over financial reporting described below, our disclosure controls and procedures were not effective as of
September 30, 2025. 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.

Material
Weakness in Internal Control over Financial Reporting

In