Company: OMQS
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001641172-25-024877
Chunk: 39

Company: OMNIQ Corp.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 1
Chunk 39
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    Sales
    efforts are focused on the most profitable product lines.

    ●
    The
    Company completed the sale of one of it’s divisions as of June 30, 2025, which included the removal of a net $45 million worth
    of debt on the Company’s books..

NOTE
3 – CONCENTRATIONS

For
the six-months ended June 30, 2025, and the year ended December 31, 2024, no customer accounted for more than 3%  for the six months ended June 30, 2025 and one customer made up 23.7% for December 31, 2024, of the Company’s
consolidated revenues.

Accounts
receivable at June 30, 2025 and December 31, 2024 are made up of trade receivables due from customers in the ordinary course of business.
One customer accounted for 6% of the outstanding receivables as of June 30, 2025, and 26% as of December 31, 2024.

For
the six months ended June 30, 2025, and the year ended December 31, 2024 no vendor made up more than 3% as of June 30, 2025 and 47% as of December 31, 2024 of our trade payables.

    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 June 30, 2025, this entity was sold as
part