Company: OMQS
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010783
Chunk: 8

Company: OMNIQ Corp.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 8
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 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. (“Dangot”), entered into a Share Purchase
Agreement (the “Purchase Agreement”) with CodeBlocks Ltd. (CodeBlocks”) and CodeBlocks’ owners, Alina Lifshits
and Erez Attia pursuant to which Dangot, acquired all of the capital stock of CodeBlocks in exchange for NIS 4,666,664 (approximately
US $ 1,275,044). The consideration is payable in seven equal installments with the final payment due on November 1, 2025. The note has
no explicit interest rate so the Company used an implicit interest rate of 8%; therefore the present value for the acquisition was NIS
4,356,720, approximately $1,190,360. The purchase Agreement closed on February 1, 2024. As of March 31, 2025, the total amount outstanding
is NIS 4.4 million, approximately $1 million USD, and is presented on the balance sheet in short-