Company: OMQS
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001813
Chunk: 902

Company: OMNIQ Corp.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 11
Chunk 902
---
 2024
  
    ●
    Multiple
    years of losses from operations
  
    ●
    Year
    over year decrease in sales
  
    ●
    Noncompliance
    with certain debt covenants

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.
  
    ●
    Blue
    Star - The Company’s total accounts payable due to Blue Star as of December 31, 2024, was approximately $53.6 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 five years.
  
    ●
    Management
    finalized a new line of credit with an additional financial institution.
  
    ●
    In
    October 2023 management finalized an equity raise which resulted in $2.5 million in net cash received from investors.

NOTE
4 – BUSINESS ACQUISITIONS

On
January 30, 2024, OMNIQ Corp. (the “Company’), its wholly owned subsidiary, Dangot Computers Ltd. (“Dangot”),
CodeBlocks Ltd. (CodeBlocks”). and CodeBlock’s owners, Alina Lifshits and Erez Attia entered into a Share Purchase Agreement
(the “Purchase Agreement”) pursuant to which Dangot, acquired all of the capital stock of CodeBlocks in exchange for NIS
4,666,664 (approximately US $ 1,275,044 based on today’s exchange rate). The consideration is payable in eight equal installments
with the final payment due on November 1, 2025. The purchase Agreement closed on