Company: OMQS
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010783
Chunk: 18

Company: OMNIQ Corp.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 18
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 respectively.

Operating expenses

Total operating expenses for the three months ended
March 31, 2025, and 2024 recognized was $5.8 million and $6.3 million, respectively, representing a 7.7% decrease. The decrease in operating
expenses was due primarily to management’s cost savings plan.

Research and Development – Research
and development expenses for the three months ended March 31, 2025, and 2024 totaled $507 thousand and $405 thousand, respectively.

Selling, general and Administrative
– Selling, general and administrative expenses for the three months ended March 31, 2025, and 2024 totaled $5.1 million and $5.6
million, respectively, representing a 9% decrease. The decrease was due primarily to management’s cost savings plan.

Depreciation – Depreciation expenses
for the three months ended March 31, 2025, and 2024 totaled $28 thousand and $116 thousand, respectively, representing a 76% decrease.
The decrease is directly related to the reduction in fixed assets.

Intangible amortization – Intangible
amortization expenses for the three months ended March 31, 2025, and 2024 totaled $232 thousand and $231 thousand, respectively. The increase
is due to life of intangibles and what is remaining to be amortized.

Other income and expenses

Interest Expense – Interest expense
for the three months ended March 31, 2025, totaled $462 thousand, as compared to $917 thousand for the three months ended March 31, 2024.
The decrease is primarily attributable to the reduced line of credit.

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.

5

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES
ABOUT MARKET RISK

Not Applicable

ITEM 4. CONTROLS AND PROCEDURES

EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES

(a) Evaluation of Disclosure and Control Procedures

We maintain “disclosure controls and procedures”,
as such terms are defined under Exchange Act Rule 13a-15(e), that are designed to ensure that information required to be disclosed in
our Exchange Act reports is