Company: OMQS
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001641172-25-024877
Chunk: 74

Company: OMNIQ Corp.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 8
Chunk 74
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 Safe Parking market.

3

The
following is a discussion of our financial condition, results of operations, financial resources, and working capital. This discussion
and analysis should be read in conjunction with our unaudited condensed consolidated financial statements contained in this Form 10-Q.

OVERVIEW

Pursuant to the asset sale described in the Notes
to the Financial Statements, the assets of one division were sold during the second quarter of 2025. Accordingly, the financial statements
have reclassified the related revenues and expenses from both prior periods and the current period into a single line item for “Discontinued
Operations” on the face of the financial statements, with further detail provided in the accompanying Notes.

The
Company’s sales for the six months ended June 30, 2025, and 2024, were $15.8 million and $17.6 million, respectively. The decrease
between the six-month periods was attributable to deceleration of projects by customers.

The
loss from operations for the six months ended June 30, 2025, was $678 thousand, a decrease of $569 thousand compared with the loss in
the six months ended June 30, 2024, of $2.27 million. Basic loss per share from continuing operations for the six months ended June 30,
2025, was ($0.00) versus ($0.48) per share for the same period in 2024. Comprehensive loss for the six months ended June 30, 2025 and
2024 was $1.87 million and $3.7 million respectively, the only component to comprehensive loss besides net loss is foreign currency translation.

LIQUIDITY
AND CAPITAL RESOURCES

As
of June 30, 2025, the Company had cash in the amount of $2.2 million and a working capital deficit of $10.9 million, compared to cash
in the amount of $2.3 million, and a working capital deficit of $54.4 million as of December 31, 2024. The Company had stockholders’
deficit attributable to OmniQ stockholders of $11 million and $43.8 million as of June 30, 2025, and December 31, 2024, respectively.
This decrease in our stockholders’ deficit was primarily attributable to sale of assets.

The
Company’s accumulated deficit was $124 million and $124 million as of June 30, 2025, and December 31