Company: OMQS
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023481
Chunk: 18

Company: OMNIQ Corp.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 18
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 $27.0 million, respectively. The decrease between the nine-month periods was attributable
to the decrease in demand.

Cost
of Goods Sold

For the nine months ended September 30, 2025 and 2024, the Company recognized
a total of $17.1 million and $20.8 million, respectively, of cost of goods sold. For the nine months ended September 30, 2025 and 2024, cost
of goods sold were 71% and 77% of net revenues, respectively.

Operating
expenses

Total operating expenses for the nine months ended September 30, 2025 and
2024 recognized was $8.4 million and $9.3 million, respectively, representing a 9.5% decrease. The decreases are related to the cost reduction
plan put in place by management.

Research and Development –
Research and development expenses for the nine months ended September 30, 2025 and 2024 totaled $1.4 million and $1.3 million, respectively.

Selling,
general and Administrative – Selling, general and administrative expenses for the nine months ended September 30, 2025
and 2024 totaled $6.2 million and $6.9 million, respectively, representing a 10.5% decrease. The decreases are related to the cost reduction
plan put in place by management.

Depreciation
– Depreciation expenses for the nine months ended September 30, 2025, and 2024 totaled $53 thousand and $284 thousand,
respectively.

Intangible
amortization – Intangible amortization expenses for the nine months ended September 30, 2025, and 2024 totaled $713 thousand
and $686 million, respectively.

Other
income and expenses

Interest Expense – Interest
expense for the nine months ended September 30, 2025 totaled $651 thousand, as compared to $820 thousand million for the nine months ended September
30, 2024.

Inflation

The
Company’s results of operations have not been materially affected by inflation and management does not expect inflation to have
a material impact on its operations in the future.

Off-
Balance Sheet Arrangements

The
Company currently does not have any off-balance sheet arrangements.

Cybersecurity

Risk
Management and Strategy

We
recognize the critical importance of developing, implementing, and maintaining robust cybersecurity measures to safeguard our information
systems and protect the confidentiality, integrity, and availability