Company: OMQS
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001641172-25-024877
Chunk: 61

Company: OMNIQ Corp.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 8
Chunk 61
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    Working
    capital deficit of $10.9 million as of June 30, 2025

    ●
    Accumulated
    deficit of $124 million as of June 30, 2025

    ●
    Multiple
    years of losses from operations

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.

    ●
    The
    Company completed the sale of one of it’s divisions as of June 30, 2025, which included the removal of a net $45 million worth
    of debt on the Company’s books..

NOTE
3 – CONCENTRATIONS

For
the six-months ended June 30, 2025, and the year ended December 31, 2024, no customer accounted for more than 3%  for the six months ended June 30, 2025 and one customer made up 23.7% for December 31, 2024, of the Company’s
consolidated revenues.

Accounts
receivable at June 30, 2025 and December 31, 2024 are made up of trade receivables due from customers in the ordinary course of business.
One customer accounted for 6% of the outstanding receivables as of June 30, 2025, and 26% as of December 31, 2024.

For
the six months ended June 30, 2025, and the year ended December 31, 2024 no vendor made up more than 3% as of June 30, 2025 and 47% as of December 31, 2024 of our trade payables.

    F-6

NOTE
4 – BUSINESS COMBINATIONS

CodeBlocks
LTD

On January 30, 2024, OMNIQ’s wholly owned subsidiary, Dangot Computers Ltd. (“Dangot”), entered into a Share Purchase
Agreement (the “Purchase Agreement