OMNIQ Corp
For the period ended Sep 30, 2024. Filed Nov 14, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2024 · Filed Nov 14, 2024
OMQS$0.130.0%Stored close · as of Jun 29, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-06-30; filed 2024-08-14.
0001493152-24-032247
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-Q
Period ended 2024-09-30; filed 2024-11-14.
0001493152-24-045884
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 61 previous paragraphs and 61 current paragraphs.
38 unchanged; 23 reworded; 0 added; 0 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 3 previous and 3 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Reworded paragraphs (23)
Previous wording
The Company’s sales from operations for the six months ended June 30, 2024, were $37 million, a decrease of approximately $11 million, or 22.8%, over the six months ended June 30, 2023.
Current wording
The Company’s sales from operations for the nine months ended September 30, 2024, were $56 million, a decrease of approximately $9 million, or 14%, over the nine months ended September 30, 2023.
Previous wording
The loss from operations for the six months ended June 30, 2024, was $2.2 million, a decrease of $2 million compared with the loss in the six months ended June 30, 2023, of $4.5 million. Basic loss per share from continuing operations for the six months ended June 30, 2024, was ($.48) versus ($.95) per share for the same period in 2023.
Current wording
The loss from operations for the nine months ended September 30, 2024, was $3.2 million, a decrease of $3.9 million compared with the loss in the nine months ended September 30, 2023, of $7.1 million. Basic loss per share from continuing operations for the nine months ended September 30, 2024, was ($0.63) versus ($1.50) per share for the same period in 2023.
Previous wording
As of June 30, 2024, the Company had cash in the amount of $1.4 million and a working capital deficit of $48 million, compared to cash in the amount of $1.7 million, and a working capital deficit of $45 million as of December 31, 2023. The Company had stockholders’ deficit attributable to OmniQ stockholders of $38 million and $35 million as of June 30, 2024, and December 31, 2023, respectively. This increase in our stockholders’ deficit was primarily attributable to net losses.
Current wording
As of September 30, 2024, the Company had cash in the amount of $1.2 million and a working capital deficit of $50 million, compared to cash in the amount of $1.7 million, and a working capital deficit of $45 million as of December 31, 2023. The Company had stockholders’ deficit attributable to OmniQ stockholders of $40.2 million and $35 million as of September 30, 2024, and December 31, 2023, respectively. This increase in our stockholders’ deficit was primarily attributable to net losses.
Previous wording
The Company’s accumulated deficit was $119 million and $114 million as of June 30, 2024, and December 31, 2023.
Current wording
The Company’s accumulated deficit was $121 million and $114 million as of September 30, 2024, and December 31, 2023.
Previous wording
The Company’s operations used net cash of $3.7 million and 767 thousand in the six months ended June 30, 2024, and 2023, respectively. The decrease in cash used by operations of $2.9 million is due to an increase in accounts receivable.
Current wording
The Company’s operations provided net cash of $230 thousand and used $2.7 million in the nine months ended September 30, 2024, and 2023, respectively. The decrease in cash used by operations of $2.9 million is due to an increase in accounts payable.
Previous wording
The Company’s cash used in investing activities was $103 thousand for the six months ended June 30, 2024, compared to cash provided by investing activities of $572 thousand for the six months ended June 30, 2023.
Current wording
The Company’s cash used in investing activities was $87 thousand for the nine months ended September 30, 2024, compared to cash provided by investing activities of $598 thousand for the nine months ended September 30, 2023.
Previous wording
The Company’s financing activities provided $1.4 million of cash during the six months ended June 30, 2024, and $683 thousand during the six months ended June 30, 2023. During the six months ended June 30, 2024, the Company made payments of $1.8 million on its notes payable, compared to the payments of $673 thousand for the six months ended June 30, 2023. Additionally, the Company borrowed $3.2 million on the Company’s line of credit during the six months ended June 30, 2024, compared to the six months ended June 30, 2023, when $1.1 million was borrowed on the Company’s line of credit.
Current wording
The Company’s financing activities used $2.4 million of cash during the nine months ended September 30, 2024, and provided $323 thousand during the nine months ended September 30, 2023. During the nine months ended September 30, 2024, the Company made payments of $2.7 million on its notes payable, compared to the payments of $1.1 million for the nine months ended September 30, 2023. Additionally, the Company borrowed $329 thousand on the Company’s line of credit during the nine months ended September 30, 2024, compared to the nine months ended September 30, 2023, when $796 thousand was borrowed on the Company’s line of credit.
Previous wording
For the three months ended June 30, 2024 and 2023, the Company generated net revenues in the amount of $19 million and $20 million, respectively. The decrease between the three-month periods was attributable to the decrease in demand.
Current wording
For the three months ended September 30, 2024 and 2023, the Company generated net revenues in the amount of $18.5 million and $17 million, respectively. The increase between the three-month periods was attributable to the increase in demand.
Previous wording
For the three months ended June 30, 2024 and 2023, the Company recognized a total of $14.1 million and $16.4 million, respectively, of cost of goods sold. For the three months ended June 30, 2024 and 2023, cost of goods sold were 74% and 81% of net revenues, respectively.
Current wording
For the three months ended September 30, 2024 and 2023, the Company recognized a total of $14.6 million and $13 million, respectively, of cost of goods sold. For the three months ended September 30, 2024 and 2023, cost of goods sold were 79% and 77% of net revenues, respectively.
Previous wording
Total operating expenses for the three months ended June 30, 2024 and 2023 recognized was $5.8 million and $6.4 million, respectively, representing an 9% decrease. The decreases are related to the cost reduction plan put in place by management.
Current wording
Total operating expenses for the three months ended September 30, 2024 and 2023 recognized was $5 million and $6.6 million, respectively, representing a 25% decrease. The decreases are related to the cost reduction plan put in place by management.
Previous wording
Research and Development – Research and development expenses for the three months ended June 30, 2024 and 2023 totaled $462 thousand and $559 thousand, respectively.
Current wording
Research and Development – Research and development expenses for the three months ended September 30, 2024 and 2023 totaled $261 thousand and $482 thousand, respectively.
Previous wording
Selling, general and Administrative – Selling, general and administrative expenses for the three months ended June 30, 2024 and 2023 totaled $5 million and $5.3 million, respectively, representing a 5% decrease. The decreases are related to the cost reduction plan put in place by management.
Current wording
Selling, general and Administrative – Selling, general and administrative expenses for the three months ended September 30, 2024 and 2023 totaled $4.4 million and $5.6 million, respectively, representing a 21% decrease. The decreases are related to the cost reduction plan put in place by management.
Previous wording
Depreciation– Depreciation expenses for the three months ended June 30, 2024 and 2023 totaled $92 thousand and $96 thousand, respectively, representing a 4% decrease.
Current wording
Depreciation– Depreciation expenses for the three months ended September 30, 2024 and 2023 totaled $90 thousand and $146 thousand, respectively, representing a 38% decrease.
Previous wording
Intangible amortization – Intangible amortization expenses for the three months ended June 30, 2024 and 2023 totaled $227 thousand and $422 thousand, respectively.
Current wording
Intangible amortization – Intangible amortization expenses for the three months ended September 30, 2024 and 2023 totaled $228 thousand and $418 thousand, respectively.
Previous wording
Interest Expense – Interest expense for the three months ended June 30, 2024 totaled $794 thousand, as compared to $740 thousand for the three months ended June 30, 2023.
Current wording
Interest Expense – Interest expense for the three months ended September 30, 2024 totaled $929 thousand, as compared to $898 thousand for the three months ended September 30, 2023.
Previous wording
For the six months ended June 30, 2024 and 2023, the Company generated net revenues in the amount of $37 million and $48 million, respectively. The decrease between the six-month periods was attributable to the decrease in demand.
Current wording
For the nine months ended September 30, 2024 and 2023, the Company generated net revenues in the amount of $56 million and $65 million, respectively. The decrease between the nine-month periods was attributable to the decrease in demand.
Previous wording
For the six months ended June 30, 2024 and 2023, the Company recognized a total of $27.4 million and $38.3 million, respectively, of cost of goods sold. For the six months ended June 30, 2024 and 2023, cost of goods sold were 73% and 80% of net revenues, respectively.
Current wording
For the nine months ended September 30, 2024 and 2023, the Company recognized a total of $42 million and $51 million, respectively, of cost of goods sold. For the nine months ended September 30, 2024 and 2023, cost of goods sold were 75% and 79% of net revenues, respectively.
Previous wording
Total operating expenses for the six months ended June 30, 2024 and 2023 recognized was $12.1 million and $14.1 million, respectively, representing a 14% decrease. The decreases are related to the cost reduction plan put in place by management.
Current wording
Total operating expenses for the nine months ended September 30, 2024 and 2023 recognized was $17 million and $21 million, respectively, representing a 17% decrease. The decreases are related to the cost reduction plan put in place by management.
Previous wording
Research and Development – Research and development expenses for the six months ended June 30, 2024 and 2023 totaled $867 thousand and $982 thousand, respectively.
Current wording
Research and Development – Research and development expenses for the nine months ended September 30, 2024 and 2023 totaled $1.1 million and $1.5 million, respectively.
Previous wording
Selling, general and Administrative – Selling, general and administrative expenses for the six months ended June 30, 2024 and 2023 totaled $10.6 million and $12.1 million, respectively, representing a 12% decrease. The decreases are related to the cost reduction plan put in place by management.
Current wording
Selling, general and Administrative – Selling, general and administrative expenses for the nine months ended September 30, 2024 and 2023 totaled $15 million and $18 million, respectively, representing a 15% decrease. The decreases are related to the cost reduction plan put in place by management.
Previous wording
Depreciation– Depreciation expenses for the six months ended June 30, 2024, and 2023 totaled $208 thousand and $204 thousand, respectively.
Current wording
Depreciation– Depreciation expenses for the nine months ended September 30, 2024, and 2023 totaled $298 thousand and $349 thousand, respectively.
Previous wording
Intangible amortization – Intangible amortization expenses for the six months ended June 30, 2024, and 2023 totaled $458 thousand and $858 thousand, respectively.
Current wording
Intangible amortization – Intangible amortization expenses for the nine months ended September 30, 2024, and 2023 totaled $686 thousand and $1.3 million, respectively.
Previous wording
Interest Expense – Interest expense for the six months ended June 30, 2024 totaled $1.7 million, as compared to $1.7 million for the six months ended June 30, 2023.
Current wording
Interest Expense – Interest expense for the nine months ended September 30, 2024 totaled $2.6 million, as compared to $2.6 million for the nine months ended September 30, 2023.