Company: OMQS
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001813
Chunk: 6

Company: OMNIQ Corp.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 6
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Net loss attributable to common stockholders’ of OMNIQ Corp was $10 million in 2024, a decrease of $19.5 million from the 2023 loss
of $29.5 million. Basic loss per share attributable to common stockholders was $0.94 for the year 2024 compared to $3.50 loss per share
for the year 2023.

On
April 1, 2022, the Company closed on its acquisition of Dangot and exercised the remaining portion of its option to purchase 23.0% of
the capital stock, thereby making Dangot a fully owned subsidiary of the Company. The Company paid $3,518,000 to purchase the additional
shares. The Company utilized its working capital and a combination of short- and long-term loans.

GOING
CONCERN

The
accompanying consolidated financial statements have been prepared assuming that we will continue as a going concern. The following are
the principal conditions or events which potentially raise substantial doubt about the company’s ability to continue as a going
concern:

    ●
    Balancing
    the need for operational cash with the need to add additional products.
  
    ●
    Timely
    and cost-effective development of products
  
    ●
    Working
    capital deficit of $54 million as of December 31, 2024
  
    ●
    Accumulated
    deficit of $124 million as of December 31, 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