Company: OMQS
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023481
Chunk: 20

Company: OMNIQ Corp.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 20
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connection with the audit of our financial statements for the year ended December 31, 2024, we identified a material weakness in our
internal control over financial reporting. Specifically, we identified a material weakness in our controls related to segregation of
duties and other immaterial weaknesses in several areas of data management and documentation.

Changes
in Internal Control Over Financial Reporting

There
were no changes in our internal control over financial reporting that occurred during the most recent fiscal quarter that have materially
affected, or are reasonably likely to materially affect, our internal control over financial reporting.

7

PART
II - OTHER INFORMATION

ITEM
1. LEGAL PROCEEDINGS

On June 30, 2025, the Company’s subsidiary Dangot Computers reached a settlement with one of its vendors in Israel related to past
due rebates and price protection payments entitled under prior agreements. The vendor agreed to pay Dangot Computers, approximately USD$1.2
million over a 12 month period, based on certain milestones related to additional purchases. These payments are being treated as reduction
in Cost of Goods sold upon receipt from the Vendor.

ITEM
1A. RISK FACTORS

Not
applicable.

ITEM
2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.

None.

ITEM
3. DEFAULTS UPON SENIOR SECURITIES.

None.

ITEM
4. MINE SAFETY DISCLOSURES

Not
applicable.

ITEM
5. OTHER INFORMATION

None.

WHERE
YOU CAN FIND ADDITIONAL INFORMATION

We
have filed with the Securities and Exchange Commission this Form 10-Q, including exhibits. You may read and copy all or any portion of
the registration statement or any reports, statements, or other information in the files at SEC’s Public Reference Room located
at 100 F Street, NE., Washington, DC 20549, on official business days during the hours of 10 a.m. to 3 p.m.

You
can request copies of these documents upon payment of a duplicating fee by writing to the Commission. You may call the Commission at
1-800-SEC-0330 for further information on the operation of its public reference room. Our filings, including the registration statement,
will also be available to you on the website maintained by the Commission at http://www.sec.gov.

We
intend to furnish our stockholders with annual reports which will be filed electronically with the SEC containing the consolidated financial
statements