Company: OMQS
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001813
Chunk: 304

Company: OMNIQ Corp.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 5
Chunk 304
---
 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
    Star - The Company’s total accounts payable due to Blue Star as of December 31, 2024, was approximately $53.6 million. Blue
    Star is an unsecured creditor, financing a substantial amount the Company’s supply chain demand. Management believes that Blue
    Star will continue supplying the Company with preferable credit terms. Blue Star has agreed to the annual interest rate of 5% on
    invoices that are past due. As an unsecured creditor of the Company, Blue Star has no incentive to force a liquidation. The Company
    has enjoyed a good mutual relationship for the past five years.
  
    ●
    Management
    finalized a new line of credit with an additional financial institution.
  
    ●
    In
    October 2023 management finalized an equity raise which resulted in $2.5 million in net cash received from investors.

12

Overview
– Results of Operations

The
following table sets forth certain selected condensed statement of operations data for the periods indicated in dollars. In addition,
we note that the period-to-period comparison may not be indicative of future performance.

    For
    the year ended  
    Variation 
  
    In
    thousands 
    2024  
    2023  
    $  
    % 
  
    Revenue 
    $73,573  
    $81,193  
    $(7,