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

Company: OMNIQ Corp.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 10
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 a working capital deficit of $45 million
as of December 31, 2023. The Company had stockholders’ deficit attributable to OmniQ stockholders of $43.9 million and $35 million
as of December 31, 2024 and 2023, respectively. This increase in our stockholders’ deficit was primarily attributable to net losses.

The
Company’s accumulated deficit was $123.9 million and $113.9 million
as of December 31, 2024 and 2023, respectively.

The
Company’s operations provided net cash of $2.4 million and $170 thousand for the years ended December 31, 2024 and 2023, respectively.
The increase of cash from operations of $2.2 million is primarily a result of increase in payables and other liabilities.

The
Company’s cash used in investing activities was $32 thousand for
the year ended December 31, 2024 compared to cash used by investing activities of $331thousand for the year ended December 31, 2023.

The
Company’s financing activities used $2.87 million of cash during
the year ended December 31, 2024, and used $50 thousand during the year ended December 31, 2023. During the year ended December 31, 20243,
the Company made payments of $3.2 million on its notes payable, compared to the year ended December 31, 2023, when the Company made payments
of $1.4 million on its notes payable, including its Supplier Secured Promissory note and related party notes payable. Additionally, the
Company received $292 thousand in the year ended December 31, 2024 on its line of credit and had paid $1.6 million on the Company’s
line of credit during the year ended December 31, 2023. The Company raised no funds in the year ended December 31, 2024 and raised net
proceeds of $2.4 million for the year ended December 31, 2024.

14

Off-Balance
Sheet Arrangements

The
Company currently does not have any off-balance sheet arrangements.

Critical
Accounting Policies

We
prepare our consolidated financial statements in accordance with accounting principles generally accepted in the United States of America.
The application of many accounting principles requires us to make assumptions, estimates, and/or judgments that affect the reported amounts
of assets, liabilities, revenues, and