Omniq (OMQS)

Search documents
OMNIQ Improves Margins and Sharpens Cost Structure in First Half of 2025
Globenewswire· 2025-08-19 22:22
SALT LAKE CITY, Aug. 19, 2025 (GLOBE NEWSWIRE) -- OMNIQ Corp. (OTCMKTS:OMQS) or “The Company” announced today the financial results of the second quarter 2025, showing a strong financial turnaround in the first half of 2025, with overall net loss reduced to just $34,000 from $5.1 million in the prior year period, and a 75 percent reduction in equity deficit on $15.7 million of revenue. All of the following values are adjusted post the announcement that was released July 16th, 2025, due to the sale of the le ...
Omniq (OMQS) - 2025 Q2 - Quarterly Report
2025-08-19 21:29
Washington, D.C. 20549 FORM 10-Q (Mark One) UNITED STATES SECURITIES AND EXCHANGE COMMISSION ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended: June 30, 2025 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from________ to__________ Commission File Number: 001-40768 OMNIQ Corp. (801) 242-7272 (Registrant's telephone number, including area code) 1865 West 2100 South Salt ...
OMNIQ Corp Sells Legacy Business Unit to Strengthen Balance Sheet and Continue Focus on High-Growth AI & Automation Sectors
GlobeNewswire· 2025-07-16 20:40
Core Viewpoint - OMNIQ Corp has completed the sale of a portion of its U.S.-based legacy assets to Summit Junction Holdings LLC, which eliminates approximately 63% of the Company's debt and positions it for growth [1][3]. Financial Impact - The transaction is expected to generate an estimated $35 million gain in fiscal year 2025 due to the elimination of approximately $45 million in debt, significantly improving the Company's balance sheet [7]. Strategic Focus - The divestiture allows OMNIQ to streamline operations, enhance profitability, and concentrate resources on its core high-growth divisions, specifically in Smart Automation and AI-driven products, which generated approximately $38.5 million of the total 2024 consolidated revenue [2][5]. Operational Efficiency - The sale simplifies OMNIQ's organizational structure, reduces operational burdens, and allows for scalability, thereby creating greater operational flexibility and supporting long-term efficiency and cost optimization [4]. Long-term Vision - With a leaner structure, OMNIQ can focus on its highest-margin, recurring-revenue business lines, addressing market dynamics and investor expectations while positioning itself for sustainable shareholder value through innovation and customer delivery [5][6].
OMNIQ Reports $19.9 Million Revenue in the First Quarter 2025
Globenewswire· 2025-05-15 19:47
Financial Performance - In Q1 2025, the company reported revenue of $19.9 million, an increase of 8.7% compared to $18.3 million in Q1 2024 [2][3] - The net loss for the quarter remained steady at $2.1 million, unchanged from the same period last year [2] - Basic loss per share from continuing operations was $0.20, consistent with the same period in 2024 [3] - Comprehensive loss decreased to $1.6 million in Q1 2025 from $1.9 million in Q1 2024, representing a 15.8% improvement [3] - Operating income showed a loss of $690 thousand, an improvement of 45% from a loss of $1.3 million in Q1 2024 [3] Customer and Market Dynamics - No single customer accounted for more than 10% of total revenue in Q1 2025, contrasting with one customer that represented 23.7% of total revenue for the full year 2024 [4] - The company expanded its customer base across key sectors including transportation, healthcare, education, and municipal operations [5] - Demand for integrated automation and computer vision solutions remained strong, with solid traction in both new and existing markets [5] Operational Focus and Strategy - The company is committed to strengthening relationships with current customers by delivering system upgrades and improving integrations [6] - The operational focus remains on execution and building systems that meet real-world needs, rather than chasing trends [7][9] - The company is actively developing and refining product lines to address evolving customer needs in high-impact sectors such as parking, transportation, retail, and logistics [8] Company Overview - OMNIQ Corp. provides computerized and machine vision image processing solutions using patented AI technology for various applications including supply chain management and public safety [10] - The company serves government agencies and Fortune 500 companies across multiple sectors, including manufacturing, retail, and healthcare [11] - Since 2014, annual revenues have more than doubled, reaching $81 million in 2023, with a presence in over 40 countries [12]
Omniq (OMQS) - 2025 Q1 - Quarterly Report
2025-05-15 19:31
[PART I - FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) [Financial Statements](index=4&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) For the quarter ended March 31, 2025, OMNIQ Corp. reported an 8.7% revenue increase to $19.9 million and a reduced operating loss of $0.69 million, despite significant stockholders' and working capital deficits [Condensed Consolidated Balance Sheets](index=4&type=section&id=UNAUDITED%20CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) As of March 31, 2025, total assets decreased to $35.1 million, while total liabilities also decreased, resulting in a worsening working capital deficit of $55.1 million and a total stockholders' deficit of $45.5 million Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 (Unaudited) | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $2,712 | $2,349 | | Accounts receivable, net | $15,798 | $20,945 | | Total current assets | $24,028 | $31,880 | | Total Assets | $35,110 | $43,589 | | **Liabilities & Equity** | | | | Accounts payable and accrued liabilities | $64,850 | $66,097 | | Total current liabilities | $79,190 | $86,323 | | Total liabilities | $80,601 | $87,477 | | Total OmniQ stockholders' equity (deficit) | $(45,491) | $(43,888) | - The company has a significant working capital deficit of **$55.1 million** as of March 31, 2025[28](index=28&type=chunk) - The accumulated deficit reached **$126.0 million** as of March 31, 2025, an increase from $123.9 million at the end of 2024[10](index=10&type=chunk)[28](index=28&type=chunk) [Condensed Consolidated Statements of Operations and Comprehensive Loss](index=6&type=section&id=UNAUDITED%20CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS%20AND%20COMPREHENSIVE%20LOSS) For the three months ended March 31, 2025, revenues increased by 8.7% to $19.9 million, gross profit remained stable, and the loss from operations significantly reduced to $0.69 million due to lower operating expenses, while net loss per share remained unchanged Consolidated Statement of Operations (in thousands, except per share data) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Revenues | $19,903 | $18,317 | | Gross Profit | $5,141 | $5,058 | | Loss from operations | $(690) | $(1,259) | | Net Loss | $(2,089) | $(2,098) | | Net loss per share - basic | $(0.20) | $(0.20) | - Operating expenses decreased to **$5.8 million** from $6.3 million year-over-year, primarily due to a reduction in selling, general and administrative costs[12](index=12&type=chunk) [Condensed Consolidated Statements of Stockholders' Equity (Deficit)](index=7&type=section&id=UNAUDITED%20CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20STOCKHOLDERS'%20EQUITY%20(DEFICIT)) The total stockholders' deficit increased from $43.9 million to $45.5 million as of March 31, 2025, primarily driven by a net loss of $2.1 million, slightly offset by a positive cumulative translation adjustment - The total stockholders' deficit worsened to **$(45,491) thousand** at March 31, 2025, from $(43,888) thousand at December 31, 2024[14](index=14&type=chunk) - The change in deficit was mainly due to the net loss of **$(2,089) thousand** for the quarter[14](index=14&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=UNAUDITED%20CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) For Q1 2025, the company generated $1.0 million in cash from operating activities, a significant improvement from the $0.6 million used in Q1 2024, ending the period with $2.7 million in cash and cash equivalents Consolidated Statement of Cash Flows Highlights (in thousands) | Cash Flow Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $1,018 | $(623) | | Net cash (used in) investing activities | $(31) | $(48) | | Net cash (used in) provided by financing activities | $(1,165) | $(971) | | **Cash and cash equivalents at end of period** | **$2,712** | **$881** | - The improvement in operating cash flow was largely driven by a **$5.3 million** positive change in accounts receivable[16](index=16&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=NOTES%20TO%20CONDENSED%20CONSOLIDATED%20FINANCIAL%20STATEMENTS) Key notes highlight substantial doubt about the company's ability to continue as a going concern due to significant working capital and accumulated deficits, non-compliance with debt covenants, and notable customer and vendor concentrations - Management has identified conditions that raise substantial doubt about the company's ability to continue as a going concern, including a working capital deficit of **$55.1 million** and an accumulated deficit of **$126 million**[24](index=24&type=chunk)[28](index=28&type=chunk) - Management's mitigation plans include reducing operating expenses, focusing on profitable product lines, and relying on the continued support of its primary supplier, Blue Star, to whom it owes approximately **$56.6 million**[28](index=28&type=chunk) - The company was not in compliance with certain financial covenants related to its Bank Leumi and Bank Hapoalim debt as of March 31, 2025, which could result in an event of default[42](index=42&type=chunk) - For Q1 2025, one vendor accounted for **45%** of purchases, and one customer accounted for **11.2%** of outstanding receivables[26](index=26&type=chunk)[27](index=27&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=15&type=section&id=ITEM%202.%20MANAGEMENT'S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management reported an 8.7% revenue increase to $19.9 million for Q1 2025 and a 45% reduction in operating loss, but the company's financial condition remains precarious with significant deficits despite improved operating cash flow [Overview](index=17&type=section&id=MD%26A%20Overview) The company's sales increased by 8.7% to $19.9 million in Q1 2025, while the loss from operations significantly improved by $569 thousand to $690 thousand, with basic loss per share remaining flat - Sales for Q1 2025 were **$19.9 million**, an increase of approximately **$1.6 million (8.7%)** over Q1 2024[63](index=63&type=chunk) - Loss from operations for Q1 2025 was **$690 thousand**, a decrease of **$569 thousand** compared to the $1.3 million loss in Q1 2024[64](index=64&type=chunk) [Liquidity and Capital Resources](index=17&type=section&id=MD%26A%20Liquidity%20and%20Capital%20Resources) As of March 31, 2025, the company had $2.7 million in cash but faced a $55 million working capital deficit and a $45.5 million stockholders' deficit, with operations providing $1.0 million in cash - The company had cash of **$2.7 million** and a working capital deficit of **$55 million** as of March 31, 2025[65](index=65&type=chunk) - Net cash provided by operations was **$1.0 million** for Q1 2025, a **$1.6 million** improvement from the cash used in Q1 2024, attributed to higher revenue[66](index=66&type=chunk) [Results of Operations](index=18&type=section&id=MD%26A%20Results%20of%20Operations) Revenue for Q1 2025 increased 8.7% to $19.9 million, but gross margin declined due to a higher increase in cost of goods sold, while operating expenses decreased by 7.7% due to cost savings Results of Operations Comparison (in thousands) | Metric | Q1 2025 | Q1 2024 | Variation $ | Variation % | | :--- | :--- | :--- | :--- | :--- | | Revenue | $19,903 | $18,317 | $1,586 | 8.66% | | Gross Profit | $5,141 | $5,058 | $83 | 1.64% | | Operating Expenses | $5,831 | $6,317 | $(486) | (7.69)% | | Loss from operations | $(690) | $(1,259) | $569 | (45.19)% | - The increase in revenue was attributed to the acceleration of projects by customers[70](index=70&type=chunk) - The decrease in operating expenses was primarily due to management's cost savings plan, which reduced SG&A expenses by **9%**[72](index=72&type=chunk)[73](index=73&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=19&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) This section is not applicable for the current reporting period - Not Applicable[78](index=78&type=chunk) [Controls and Procedures](index=19&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Management concluded that disclosure controls and procedures were ineffective as of March 31, 2025, due to a material weakness in segregation of duties, though no material impact on reporting was identified - The CEO and Principal Accounting Officer concluded that the Company's disclosure controls and procedures were not effective as of March 31, 2025[79](index=79&type=chunk) - A material weakness was identified in controls related to segregation of duties, a situation attributed to the small number of professionals in management[84](index=84&type=chunk)[85](index=85&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, internal controls[88](index=88&type=chunk) [PART II - OTHER INFORMATION](index=21&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) [Legal Proceedings](index=21&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS.) The company is actively involved in two legal cases, including a $5.6 million claim for alleged breach of a lease agreement and a $389 thousand claim for unpaid consultant fees - A lawsuit was filed against subsidiary Dangot Computers in Israel by a commercial real estate company, with an initial claim of approximately **$5.6 million** for an alleged breach of a letter of intent[90](index=90&type=chunk) - In March 2025, a terminated consultant filed a lawsuit claiming approximately **$389 thousand** in unpaid fees and commissions[91](index=91&type=chunk) - A case with a former employee over **$60 thousand** in unpaid commissions was settled in February 2024[89](index=89&type=chunk) [Risk Factors](index=21&type=section&id=ITEM%201A.%20RISK%20FACTORS.) This section is not applicable for this quarterly report - Not applicable[92](index=92&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=21&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECU RITIES%20AND%20USE%20OF%20PROCEEDS.) There were no unregistered sales of equity securities during the period - None[93](index=93&type=chunk) [Defaults Upon Senior Securities](index=21&type=section&id=ITEM%203.%20DEFAULTS%20UPON%20SENIOR%20SECURITIES.) There were no defaults upon senior securities during the period - None[94](index=94&type=chunk) [Mine Safety Disclosures](index=21&type=section&id=ITEM%204.%20MINE%20SAFETY%20DISCLOSURES.) This section is not applicable - Not applicable[95](index=95&type=chunk) [Other Information](index=21&type=section&id=ITEM%205.%20OTHER%20INFORMATION.) There was no other information to report for the period - None[96](index=96&type=chunk) [Exhibits](index=22&type=section&id=ITEM%206.%20EXHIBITS.) The report includes standard exhibits such as Sarbanes-Oxley certifications and Inline XBRL data files - Exhibits filed include CEO/CFO certifications pursuant to Sarbanes-Oxley Sections 302 and 906, and Inline XBRL documents[102](index=102&type=chunk)
OMINQ Reports Revenues of $73.5 Million in 2024
Globenewswire· 2025-03-31 21:18
Core Insights - OMNIQ Corporation reported year-end 2024 revenue of $73.5 million, a decrease from $81.19 million in 2023, reflecting a year-over-year decline of approximately 9% [3][4][9] - The company achieved a significant reduction in loss from operations, posting a loss of $6.9 million in 2024 compared to $26.2 million in 2023, marking a 74% decrease [4][9] - Comprehensive loss for 2024 was $9.3 million, down from $29 million in the prior year, representing a 68% decrease [5][9] Financial Performance - Consolidated revenue for 2024 was $73.57 million, down from $81.19 million in 2023, a decrease of $7.6 million [3] - Cost of goods sold in 2024 totaled $58 million, representing 79% of total revenue, compared to $65 million and 81% in 2023 [3] - Gross profit for 2024 was $15.4 million, relatively stable compared to $15.7 million in 2023 [4][9] Operational Efficiency - Selling, General and Administrative (SG&A) expenses decreased to $19.5 million in 2024 from $23 million in 2023, a reduction of 15% [5][9] - Total operating expenses for 2024 were $22.3 million, down from $41 million in 2023, reflecting a decrease of 47% [6] - The company reduced net loss attributable to common stockholders to $10 million in 2024, down from $29.4 million in 2023, with basic loss per share improving to $0.94 from $3.50 [7][9] Strategic Initiatives - In 2024, OMNIQ introduced new technologies, including the seeQ SaaS product, and launched pilot programs across various industries [8][10] - The company focused on integrated solutions over commodity hardware sales and deepened partnerships with fintech providers [13] - OMNIQ's IoT division performed well, with significant orders from various sectors, including $5 million from a major food and drug retail chain [12] Market Position and Future Outlook - OMNIQ's proprietary machine vision technologies are utilized in critical applications such as Homeland Security and parking automation, enhancing its competitive edge [17] - The company is evaluating strategic acquisitions to expand its portfolio and strengthen its market position [18] - Looking ahead to 2025, OMNIQ expects continued upward trends with several major projects in motion or entering pilot phases [21]
Omniq (OMQS) - 2024 Q4 - Annual Report
2025-03-31 20:54
Part I [Business](index=4&type=section&id=ITEM%201.%20BUSINESS) OMNIQ provides AI-powered image-processing solutions for supply chain and security markets while facing Nasdaq delisting challenges - The company uses patented and proprietary **artificial intelligence (AI) technology** for data collection, real-time surveillance, and monitoring in sectors like supply chain management, homeland security, and public safety[15](index=15&type=chunk) - OMNIQ is **facing delisting from Nasdaq** due to non-compliance with several listing rules, including failure to maintain a minimum **$1.00 bid price**, a minimum market value of **$35 million**, and failure to hold a timely annual meeting[18](index=18&type=chunk)[20](index=20&type=chunk)[22](index=22&type=chunk) - The company's strategy is to focus on operational excellence, cost reduction, addressing debt, and pursuing revenue growth and technological leadership[24](index=24&type=chunk) - OMNIQ targets two main markets: **Safe City** (including homeland security, access control, and parking) and **Supply Chain Management**[36](index=36&type=chunk) - As of December 31, 2024, the company had approximately **166 employees**[44](index=44&type=chunk) Customer and Vendor Concentration (FY 2024) | Concentration Type | Percentage | Note | | :--- | :--- | :--- | | **Revenue** | 24% | From a single customer | | **Accounts Receivable** | 26% | From a single customer | | **Purchases** | 47% | From a single vendor | [Risk Factors](index=8&type=section&id=ITEM%201A.%20RISK%20FACTORS) As a smaller reporting company, OMNIQ is not required to provide this section - This section is not required for smaller reporting companies[50](index=50&type=chunk) [Unresolved Staff Comments](index=8&type=section&id=ITEM%201B.%20UNRESOLVED%20STAFF%20COMMENTS) As a smaller reporting company, OMNIQ is not required to provide this section - This section is not required for smaller reporting companies[51](index=51&type=chunk) [Cybersecurity](index=8&type=section&id=ITEM%201C.%20CYBERSECURITY) The company manages cybersecurity risks through established policies and board oversight, with no material incidents reported to date - The company has established processes for assessing, identifying, and managing material risks from cybersecurity threats, which are integrated into its overall risk management system[52](index=52&type=chunk) - The board of directors' **audit committee** is responsible for overseeing the company's cybersecurity risk management processes[57](index=57&type=chunk) - The company has not encountered cybersecurity challenges that have **materially impaired** its operations or financial standing[56](index=56&type=chunk) [Properties](index=9&type=section&id=ITEM%202.%20PROPERTIES) The company leases corporate offices in Utah and California, with its subsidiary leasing facilities in Israel - The corporate office is located in Salt Lake City, UT, under a five-year lease expiring in June 2026, with an annual expense of **$284,000**[61](index=61&type=chunk) - The company leases additional office and warehouse space in Anaheim, California, and multiple locations in Tel-Aviv, Israel, for its subsidiary Dangot[62](index=62&type=chunk)[63](index=63&type=chunk)[64](index=64&type=chunk) [Legal Proceedings](index=9&type=section&id=ITEM%203.%20LEGAL%20PROCEEDINGS) The company is defending two significant lawsuits concerning a lease agreement and unpaid consultant fees, and recently settled a smaller case - A lawsuit filed by a commercial real estate company in Israel against subsidiary Dangot Computers alleges breach of a letter of intent for a lease, with an initial claim of approximately **US $5.6 million**[66](index=66&type=chunk) - In March 2025, a terminated consultant filed a lawsuit claiming approximately **$389,000** in unpaid fees and commissions[67](index=67&type=chunk) - A case involving a former employee claiming **$60,000** in unpaid commissions was settled in February 2024[65](index=65&type=chunk) [Mine Safety Disclosures](index=9&type=section&id=ITEM%204.%20MINE%20SAFETY%20DISCLOSURES) The company has no mine safety disclosures to report - No mine safety disclosures are reported[68](index=68&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=10&type=section&id=ITEM%205.%20MARKET%20FOR%20REGISTRANT'S%20COMMON%20EQUITY%2C%20RELATED%20STOCKHOLDER%20MATTERS%20AND%20ISSUER%20PURCHASES%20OF%20EQUITY%20SECURITIES) The company's stock was delisted from Nasdaq to OTCMKTS, has not paid dividends, and raised $3.0 million through a 2023 offering - The company's common stock, symbol **OMQS**, was delisted from Nasdaq and now trades on the **OTCMKTS**[71](index=71&type=chunk)[2](index=2&type=chunk) - The company has **never paid cash dividends** on common stock[76](index=76&type=chunk) - In October 2023, the company raised approximately **$3.0 million** in gross proceeds from an offering of common stock and pre-funded warrants[79](index=79&type=chunk)[80](index=80&type=chunk) Quarterly Stock Price Range ($) | Period | High | Low | | :--- | :--- | :--- | | **FY 2023** | | | | Q1 | 5.15 | 4.27 | | Q2 | 4.14 | 3.95 | | Q3 | 1.61 | 1.53 | | Q4 | 0.65 | 0.57 | | **FY 2024** | | | | Q1 | 0.69 | 0.33 | | Q2 | 0.81 | 0.11 | | Q3 | 0.33 | 0.11 | | Q4 | 0.25 | 0.12 | [[Reserved]](index=11&type=section&id=ITEM%206.%20%5BRESERVED%5D) This item is reserved and contains no information - This item is reserved[81](index=81&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=11&type=section&id=ITEM%207.%20MANAGEMENT'S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Revenue decreased 9.4% to $73.6 million and net loss narrowed to $10.0 million, but substantial doubt exists about its 'going concern' status [Going Concern](index=12&type=section&id=Going%20Concern) Substantial doubt about the company's ability to continue as a going concern arises from a $54 million working capital deficit and recurring losses - Principal conditions raising **substantial doubt** about the company's ability to continue as a going concern include a working capital deficit of **$54 million**, an accumulated deficit of **$124 million**, and multiple years of operating losses[87](index=87&type=chunk)[88](index=88&type=chunk)[273](index=273&type=chunk) - Management's mitigation plans involve reducing expenditures, focusing on profitable sales, and leveraging its relationship with key supplier Blue Star, to whom it owed approximately **$53.6 million** as of December 31, 2024[88](index=88&type=chunk)[275](index=275&type=chunk) [Results of Operations](index=13&type=section&id=Results%20of%20Operations) Revenue for FY2024 fell 9.4% to $73.6 million, while net loss improved to $10.0 million due to the absence of a prior-year goodwill impairment charge - The **9% decrease in revenue** was due to a decrease in deliverables and a delay in a significant customer project[91](index=91&type=chunk) - The significant decrease in operating expenses and net loss in 2024 is primarily because 2023 results included a non-cash **goodwill impairment charge of $14.7 million**, which was not present in 2024[93](index=93&type=chunk)[97](index=97&type=chunk)[101](index=101&type=chunk) Consolidated Results of Operations (in thousands) | Account | 2024 | 2023 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Revenue | $73,573 | $81,193 | $(7,620) | (9.39)% | | Gross Profit | $15,356 | $15,708 | $(352) | (2.24)% | | Loss from operations | $(6,911) | $(26,196) | $19,285 | (73.62)% | | Net loss | $(10,002) | $(29,431) | $19,429 | (66.02)% | | Net Loss per common Share | $(0.94) | $(3.50) | $2.56 | (73.14)% | [Liquidity and Capital Resources](index=14&type=section&id=Liquidity%20and%20Capital%20Resources) The company's working capital deficit worsened to $54 million, with operations providing $2.4 million in cash during FY2024 Key Liquidity Metrics (in millions) | Metric | Dec 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Cash | $2.3 | $1.7 | | Working Capital Deficit | $(54.0) | $(45.0) | | Stockholders' Deficit | $(43.9) | $(35.0) | | Accumulated Deficit | $(123.9) | $(113.9) | Cash Flow Summary (FY 2024 vs FY 2023, in thousands) | Cash Flow Activity | 2024 | 2023 | | :--- | :--- | :--- | | Net cash from operations | $2,368 | $170 | | Net cash used in investing | $(32) | $(331) | | Net cash used in financing | $(2,871) | $(50) | [Critical Accounting Policies](index=15&type=section&id=Critical%20Accounting%20Policies) Key accounting policies involve significant judgment in revenue recognition, goodwill impairment testing, and stock-based compensation valuation - **Revenue Recognition**: The company follows a five-step model to recognize revenue when performance obligations are satisfied and control is transferred to the customer[109](index=109&type=chunk)[252](index=252&type=chunk) - **Impairment of Goodwill and Intangibles**: Indefinite-lived assets like goodwill are tested for impairment at least annually[116](index=116&type=chunk)[119](index=119&type=chunk) - **Stock-Based Compensation**: The company uses the Black-Scholes option-pricing model to estimate the fair value of stock option grants[121](index=121&type=chunk)[123](index=123&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=17&type=section&id=ITEM%207A.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) As a smaller reporting company, OMNIQ is not required to provide this section - This section is not required for smaller reporting companies[129](index=129&type=chunk) [Financial Statements and Supplementary Data](index=17&type=section&id=ITEM%208.%20FINANCIAL%20STATEMENTS%20AND%20SUPPLEMENTARY%20DATA) Audited financial statements reveal a 'going concern' warning from the auditor and identify goodwill valuation as a critical audit matter - The independent auditor's report expresses **substantial doubt** about the Company's ability to continue as a **going concern**, citing the deficit in stockholders' equity and recurring losses from operations[193](index=193&type=chunk)[273](index=273&type=chunk) - The valuation of goodwill and intangible assets was identified as a **Critical Audit Matter** due to the significant estimates and complex judgments involved in determining their fair value[197](index=197&type=chunk)[198](index=198&type=chunk)[199](index=199&type=chunk) Consolidated Balance Sheet Highlights (in thousands) | Account | Dec 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Total Current Assets | $31,880 | $27,354 | | Total Assets | $43,589 | $39,486 | | Total Current Liabilities | $86,323 | $72,705 | | Total Liabilities | $87,477 | $74,506 | | Total OmniQ stockholders' equity (deficit) | $(43,888) | $(35,020) | Consolidated Statement of Operations Highlights (in thousands) | Account | FY 2024 | FY 2023 | | :--- | :--- | :--- | | Revenues | $73,573 | $81,193 | | Gross Profit | $15,356 | $15,708 | | Loss from Operations | $(6,911) | $(26,196) | | Net Loss | $(10,002) | $(29,431) | [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=17&type=section&id=ITEM%209.%20CHANGES%20IN%20AND%20DISAGREEMENTS%20WITH%20ACCOUNTANTS%20ON%20ACCOUNTING%20AND%20FINANCIAL%20DISCLOSURE) The company reports no changes in or disagreements with its accountants on matters of accounting and financial disclosure - The company reported no disagreements with its accountants[131](index=131&type=chunk) [Controls and Procedures](index=18&type=section&id=ITEM%209A.%20CONTROLS%20AND%20PROCEDURES) Management concluded that both disclosure controls and internal controls over financial reporting were ineffective due to a material weakness in segregation of duties - Management concluded that the company's disclosure controls and procedures were **not effective** as of December 31, 2024[133](index=133&type=chunk) - Management concluded that internal controls over financial reporting were **not effective** as of December 31, 2024, due to a material weakness[137](index=137&type=chunk) - A **material weakness** was identified in controls related to **segregation of duties**, a situation attributed to the small size of the company's management team[138](index=138&type=chunk)[139](index=139&type=chunk) [Other Information](index=19&type=section&id=ITEM%209B.%20OTHER%20INFORMATION) The company has no information to report under this item - No other information is reported[143](index=143&type=chunk) Part III [Directors, Executive Officers and Corporate Governance](index=20&type=section&id=ITEM%2010.%20DIRECTORS%2C%20EXECUTIVE%20OFFICERS%20AND%20CORPORATE%20GOVERNANCE) The company's governance is led by a two-member board, with the CEO also serving as Chairman and interim CFO - The Board of Directors consists of **two members**: Shai Lustgarten (CEO and Chairman) and Guy Elhanani (Director)[145](index=145&type=chunk)[160](index=160&type=chunk) - Shai Lustgarten has served as CEO since April 2017 and is also currently the **interim CFO**[147](index=147&type=chunk) - Director Guy Elhanani is deemed **independent** and serves as the sole member and Chairperson for the Audit, Compensation, and Corporate Governance/Nominating Committees[161](index=161&type=chunk)[163](index=163&type=chunk)[165](index=165&type=chunk)[168](index=168&type=chunk) - The company adopted a **Clawback Policy** on December 1, 2023, for the recovery of certain incentive-based compensation from executive officers[170](index=170&type=chunk) [Executive Compensation](index=20&type=section&id=ITEM%2011.%20EXECUTIVE%20COMPENSATION) CEO Shai Lustgarten's total compensation was $690,000 in 2024, with his employment agreement detailing salary and severance terms - CEO Shai Lustgarten's employment agreement includes an annual base salary of **$560,000** and specifies severance benefits[153](index=153&type=chunk) - Director compensation for 2024 consisted of **$24,000** in cash fees for each of the three directors listed for that year[155](index=155&type=chunk) Named Executive Officer Compensation (in thousands) | Name and Principal Position | Year | Salary ($) | Bonus ($) | All Other Comp ($) | Total ($) | | :--- | :--- | :--- | :--- | :--- | :--- | | Shai Lustgarten (CEO and Interim CFO) | 2024 | 637 | 25 | 28 | 690 | | | 2023 | 600 | 120 | 28 | 748 | [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=25&type=section&id=ITEM%2012.%20SECURITY%20OWNERSHIP%20OF%20CERTAIN%20BENEFICIAL%20OWNERS%20AND%20MANAGEMENT%20AND%20RELATED%20STOCKHOLDER%20MATTERS) Executive officers and directors as a group beneficially owned 11.6% of the company's common stock as of year-end 2024 Beneficial Ownership as of December 31, 2024 | Name of Beneficial Owner | Percentage of Shares Outstanding | | :--- | :--- | | Shai Lustgarten (Chairman and CEO) | 10.6% | | All Executive Officers and Directors as a group (5 individuals) | 11.6% | | Carlos Nissensohn | 7.4% | [Certain Relationships and Related Transactions, and Director Independence](index=25&type=section&id=ITEM%2013.%20CERTAIN%20RELATIONSHIPS%20AND%20RELATED%20TRANSACTIONS%2C%20AND%20DIRECTOR%20INDEPENDENCE) The company discloses a related party transaction involving a $30,000 monthly consulting agreement with a principal stockholder - The company had a consulting agreement with principal stockholder Carlos J. Nissensohn, providing for a monthly fee of **$30,000**[175](index=175&type=chunk) [Principal Accountant Fees and Services](index=25&type=section&id=ITEM%2014.%20PRINCIPAL%20ACCOUNTANT%20FEES%20AND%20SERVICES) Information on accountant fees is incorporated by reference from the company's upcoming Proxy Statement - The required information will be included in the Proxy Statement and is **incorporated by reference**[176](index=176&type=chunk) Part IV [Exhibits, Financial Statement Schedules](index=26&type=section&id=ITEM%2015.%20EXHIBITS%2C%20FINANCIAL%20STATEMENT%20SCHEDULES) This section lists the financial statements and provides an index of exhibits filed with the report - This section lists the financial statements filed with the report, commencing on page F-1[179](index=179&type=chunk) - An index of exhibits required by Regulation S-K is provided, with documents incorporated by reference or filed herewith[180](index=180&type=chunk) [Form 10-K Summary](index=26&type=section&id=ITEM%2016.%20FORM%2010-K%20SUMMARY) This item is not applicable, and no summary is provided - No summary is provided under this item[181](index=181&type=chunk)
Leading Logistics Provider Orders $4.4 Million in Ruggedized Mobile Computing Solutions from OMNIQ
Globenewswire· 2025-03-12 12:45
Core Insights - OMNIQ Corp has received a $4.4 million purchase order from a major logistics provider for ruggedized handheld mobile computers, indicating a rising demand for intelligent and durable solutions in logistics and supply chain management [1][2][3] Company Overview - OMNIQ Corp specializes in AI automation and enterprise mobility solutions, providing computerized and machine vision image processing solutions that enhance operational efficiency across various sectors [4][5] - The company has seen its annual revenues more than double since 2014, reaching $81 million in 2023, with clients in over 40 countries [5] Product Features - The ruggedized mobile computers are designed for frontline workers, offering real-time data access, workflow automation, and seamless system integration, which improves accuracy and productivity in warehouses and transportation hubs [2][3] - These devices are built to withstand harsh conditions while ensuring secure, high-speed connectivity for mission-critical applications [2] Market Position - OMNIQ is positioned as a trusted technology partner in the global supply chain, focusing on automation, IoT-enabled mobility, and intelligent data solutions [3] - The company addresses several billion-dollar markets with double-digit growth potential, including the Global Smart City and Public Safety markets [5]
OMNIQ Secures $1M in New Purchase Orders from Key Logistics and Manufacturing Partner
Globenewswire· 2025-01-14 13:45
Company Overview - OMNIQ Corp provides computerized and machine vision image processing solutions using patented AI technology for real-time object identification, tracking, surveillance, and monitoring in Supply Chain Management, Public Safety, and Traffic Management applications [4] - The company's technology helps clients manage big data and move people and objects safely through airports, warehouses, schools, national borders, and other environments [4] - OMNIQ's diverse portfolio includes advanced AI algorithms for automated identification and management, enabling customers to streamline operations in logistics, manufacturing, and other industries [3] Financial Performance - Annual revenues have more than doubled since 2014, reaching $81 million in 2023 [1] - The company serves clients in more than 40 countries [1] Market Position - OMNIQ addresses several billion-dollar markets with double-digit growth, including the Global Smart City and Public Safety markets [1] - The company is recognized as a leader in AI-powered solutions for logistics, smart city applications, and public safety [6] Recent Developments - OMNIQ announced $1 million in new purchase orders from a long-term partner in the logistics and manufacturing sector [6] - The new orders include advanced hardware and service agreements designed to enhance operational efficiency [8] - Service agreements are expected to contribute recurring revenue, reinforcing the company's financial stability and long-term growth strategy [8] Strategic Partnerships - OMNIQ's customers include government agencies and leading Fortune 500 companies across various sectors such as manufacturing, retail, distribution, food and beverage, transportation and logistics, healthcare, and oil [8] - The company's proprietary AI-driven solutions enable seamless integration of hardware and software, improving operational efficiencies in logistics and manufacturing [8] - OMNIQ's advanced service agreements provide ongoing support and enhanced functionality, ensuring sustained performance and value for customers [8] Leadership Perspective - Shai Lustgarten, President and CEO of OMNIQ, expressed enthusiasm about the new orders, stating they represent a vote of confidence in the company's AI-powered solutions and commitment to operational excellence [3] - The CEO emphasized that deepening partnerships and continuous innovation further position OMNIQ as a leader in automation and efficiency within critical industries [3]
OMNIQ Receives $3.6 Million Purchase Order in Q4 From a Leading Retail Company
Globenewswire· 2025-01-06 13:45
Core Insights - OMNIQ Corp. has received a significant purchase order from a leading retail company, highlighting its growing reputation in automation and supply chain technologies [1][3] - The agreement includes advanced IoT technology aimed at streamlining operations, reducing costs, and enhancing customer experiences for the retail partner [2] - The purchase order is a recurring order from a long-standing Fortune 500 customer, indicating strong client relationships and trust in OMNIQ's solutions [4] Company Overview - OMNIQ Corp. specializes in AI-based solutions and supply chain technologies, providing computerized and machine vision image processing solutions for various applications [5] - The company has seen its annual revenues more than double since 2014, reaching $81 million in 2023, with clients in over 40 countries [6] - OMNIQ serves multiple sectors, including manufacturing, retail, distribution, healthcare, and public safety, addressing several billion-dollar markets with double-digit growth potential [6]