Company: OMQS
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010783
Chunk: 25

Company: OMNIQ Corp.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 25
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55.1 million as of March 31, 2025

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    Accumulated deficit of $126 million as of March 31, 2025

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    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.

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    Management has placed a strategic focus on increasing sales with prime customers.

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    Sales efforts are focused on the most profitable product lines.

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    Blue Star - The Company’s total accounts payable due to Blue Star as of March 31, 2025, was approximately $56.6 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 six years.

NOTE 3 – CONCENTRATIONS

For the three-months ended March 31, 2025, and the
year ended December 31, 2024, no customer accounted for more than 10% and one customer accounted for 23.7%, respectively, of the Company’s
consolidated revenues.

Accounts receivable at March
31, 2025 and December 31, 2024 are made up of trade receivables due from customers in the ordinary course of business. One customer
accounted for 11.2% of the outstanding receivables as of March 31, 2025, and 26% as of December 31, 2024.

For the three months ended March 31, 2025, and the
year ended December 31, 2024 one vendor made up 45% and 47%, respectively, of our purchases.

    F-6

NOTE 4 – BUSINESS COMBINATIONS

CodeBlocks LTD

On January 30, 2024, OMNIQ’s wholly owned subsidiary, Dangot Computers Ltd. (“D