OMNIQ Corp.
For the period ended Jun 30, 2025. Filed Aug 19, 2025.
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.
Jun 30, 2025 · Filed Aug 19, 2025
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 2025-03-31; filed 2025-05-15.
0001641172-25-010783
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-19.
0001641172-25-024877
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 37 previous paragraphs and 41 current paragraphs.
18 unchanged; 17 reworded; 5 added; 2 removed; 0 previous and 1 current paragraphs rearranged.
Tables are not compared: 2 previous and 2 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.
Added paragraphs (5)
Current report
Pursuant to the asset sale described in the Notes to the Financial Statements, the assets of one division were sold during the second quarter of 2025. Accordingly, the financial statements have reclassified the related revenues and expenses from both prior periods and the current period into a single line item for “Discontinued Operations” on the face of the financial statements, with further detail provided in the accompanying Notes.
Current report
The Company’s sales for the six months ended June 30, 2025, and 2024, were $15.8 million and $17.6 million, respectively. The decrease between the six-month periods was attributable to deceleration of projects by customers.
Current report
Interest Expense – Interest expense for the six months ended June 30, 2025, totaled $403 thousand, compared to $538 thousand for the six months ended June 30, 2024. The change in interest expense is attributable to fluctuations in borrowings under the Company’s credit facilities and the retirement of debt associated with the legacy business. Other income and expenses include a gain on debt settlement of $325 thousand recorded in the six months ended June 30, 2025, and $0 in the comparable 2024 period.
Current report
Discontinued operations – On June 30, 2025, the Company completed the sale of its legacy business. As a result, the assets and liabilities of the legacy business were classified as held for sale and its results of operations for all periods presented have been reported as discontinued operations. For the six months ended June 30, 2025 and 2024, loss from discontinued operations (net of tax) was $1.7 million and $1.0 million, respectively. The increase in loss from discontinued operations reflects transaction-related expenses and a one-time loss on the sale of certain assets.
Current report
Net income (loss) – For the six months ended June 30, 2025, the Company recorded a net loss of $34 thousand, compared with a net loss of $5.1 million for the six months ended June 30, 2024. The significant improvement in net results was driven by higher margins on continuing operations, lower operating expenses and the gain on debt settlement, partially offset by increased loss from discontinued operations.
Removed paragraphs (2)
Previous report
The Company’s sales from operations for the three months ended March 31, 2025, were $19.9 million, an increase of approximately $1.6 million or 8.7%, over the three months ended March 31, 2024.
Previous report
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.
Reworded paragraphs (17)
Previous wording
We use patented and proprietary artificial intelligence (AI) technology to deliver data collection, real-time surveillance and monitoring for supply chain management, homeland security, public safety, traffic & parking management, and access control applications. The technology and services we provide help our clients move people, assets, and data safely and securely through airports, warehouses, schools, national borders, and many other applications and environments.
Current wording
We use patented and proprietary artificial intelligence (AI) technology to deliver machine vision image processing solutions including data collection, real-time surveillance and monitoring for supply chain management, homeland security, public safety, traffic & parking management, and access control applications.
Previous wording
Our principal solutions include hardware, software, communications, and automated management services. We are an established distributor of barcode labels, tags, and ribbons, as well as RFID labels and tags. We provide printing solutions, credit card terminals, automatic kiosks and point-of-care units. We also offer technical service and support. Our highly tenured team of professionals has the knowledge and expertise to simplify the integration process for our customers, and our team delivers proven problem-solving solutions backed by numerous customer references. We offer comprehensive packaged and configurable software, and we are a leading provider of best-in-class mobile and wireless equipment.
Current wording
Our principal solutions include hardware, software, communications, and automated management services, technical service and support. Our highly tenured team of professionals has the knowledge and expertise to simplify the integration process for our customers. We deliver practical problem-solving solutions backed by numerous customer references.
Previous wording
Our customers include government agencies and leading Fortune 500 companies from diverse sectors, including healthcare, food and beverage, manufacturing, retail, distribution, and transportation and logistics. Since 2014, our annual consolidated revenues have grown to more than $80 million with clients in more than 40 countries. We currently engage with several billion-dollar markets with double-digit growth, including the Global Safe City market and the Ticketless Safe Parking market.
Current wording
Our customers include government agencies, healthcare, universities, airports, municipalities and more. We currently engage with several billion-dollar markets with double-digit growth, including the Global Safe City market and the Ticketless Safe Parking market.
Previous wording
The loss from operations for the three months ended March 31, 2025, was $690 thousand, a decrease of $569 thousand compared with the loss in the three months ended March 31, 2024, of $1.3 million. Basic loss per share from continuing operations for the three months ended March 31, 2025, was ($0.20) versus ($0.20) per share for the same period in 2024. Comprehensive loss for the three months ended March 31, 2025 and 2024 was $1.6 million and $1.9 million respectively, the only component to comprehensive loss besides net loss is foreign currency translation.
Current wording
The loss from operations for the six months ended June 30, 2025, was $678 thousand, a decrease of $569 thousand compared with the loss in the six months ended June 30, 2024, of $2.27 million. Basic loss per share from continuing operations for the six months ended June 30, 2025, was ($0.00) versus ($0.48) per share for the same period in 2024. Comprehensive loss for the six months ended June 30, 2025 and 2024 was $1.87 million and $3.7 million respectively, the only component to comprehensive loss besides net loss is foreign currency translation.
Previous wording
As of March 31, 2025, the Company had cash in the amount of $2.7 million and a working capital deficit of $55 million, compared to cash in the amount of $2.3 million, and a working capital deficit of $54.4 million as of December 31, 2024. The Company had stockholders’ deficit attributable to OmniQ stockholders of $45.5 million and $43.8 million as of March 31, 2025, and December 31, 2024, respectively. This increase in our stockholders’ deficit was primarily attributable to net losses.
Current wording
As of June 30, 2025, the Company had cash in the amount of $2.2 million and a working capital deficit of $10.9 million, compared to cash in the amount of $2.3 million, and a working capital deficit of $54.4 million as of December 31, 2024. The Company had stockholders’ deficit attributable to OmniQ stockholders of $11 million and $43.8 million as of June 30, 2025, and December 31, 2024, respectively. This decrease in our stockholders’ deficit was primarily attributable to sale of assets.
Previous wording
The Company’s accumulated deficit was $126 million and $124 million as of March 31, 2025, and December 31, 2024.
Current wording
The Company’s accumulated deficit was $124 million and $124 million as of June 30, 2025, and December 31, 2024.
Previous wording
The Company’s operations provided net cash of $1 million and used $623 thousand in the three months ended March 31, 2025, and 2024, respectively. The increase in cash provided in operations of $1.6 million is due to the increase in revenue.
Current wording
The Company’s operations provided net cash of $6.08 million and used $3.6 million in the six months ended June 30, 2025, and 2024, respectively. The increase in cash provided in operations of approximately $10 million is due to the increase in revenue and decrease in overhead.
Previous wording
The Company’s cash used in investing activities was $31 thousand for the three months ended March 31, 2025, compared to cash used in investing activities of $48 thousand for the three months ended March 31, 2024.
Current wording
The Company’s cash used in investing activities was $2.5 million for the six months ended June 30, 2025, compared to cash used in investing activities of $103 thousand for the six months ended June 30, 2024.
Previous wording
The Company’s financing activities used $1.2 million of cash during the three months ended March 31, 2025, and used $971 thousand during the three months ended March 31, 2024.
Current wording
The Company’s financing activities used $1.7 million of cash during the six months ended June 30, 2025, and used $1.34 million during the six months ended June 30, 2024.
Previous wording
The following tables set forth certain selected unaudited condensed consolidated statements of operations data for the periods indicated in dollars. In addition, we note that the period-to-period comparison may not be indicative of future performance.
Current wording
The following tables set forth certain selected unaudited condensed consolidated statements of operations data for the periods indicated in dollars. In addition, we note that the period-to-period comparison may not be indicative of future performance. Amounts are presented in thousands.
Previous wording
For the three months ended March 31, 2025, and 2024, the Company generated net revenues in the amount of $19.9 million and $18.3 million, respectively. The increase between the three-month periods was attributable to acceleration of projects by customers.
Current wording
For the six months ended June 30, 2025, and 2024, the Company generated net revenues in the amount of $15.8 million and $17.6 million, respectively. The decrease between the six-month periods was attributable to deceleration of projects by customers.
Previous wording
For the three months ended March 31, 2025, and 2024, the Company recognized a total of $14.8 million and $13.3 million, respectively, of cost of goods sold. For the three months ended March 31, 2025, and 2024, cost of goods sold were 74% and 72% of net revenues, respectively.
Current wording
For the six months ended June 30, 2025, and 2024, the Company recognized a total of $11.6 million and $13.5 million, respectively, of cost of goods sold. For the six months ended June 30, 2025, and 2024, cost of goods sold were 74% and 77% of net revenues, respectively.
Previous wording
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.
Current wording
Total operating expenses for the six months ended June 30, 2025, and 2024 recognized was $4.8 million and $6.4 million, respectively, representing a 24% decrease. The decrease in operating expenses was due primarily to management’s cost savings plan and the elimination of expenses associated wit the legacy business sold in the second quarter of 2025.
Previous wording
Research and Development – Research and development expenses for the three months ended March 31, 2025, and 2024 totaled $507 thousand and $405 thousand, respectively.
Current wording
Research and Development – Research and development expenses for the six months ended June 30, 2025, and 2024 totaled $969 thousand and $856 thousand, respectively.
Previous wording
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.
Current wording
Selling, general and Administrative – Selling, general and administrative expenses for the six months ended June 30, 2025, and 2024 totaled $3.4 million and $4.9 million, respectively, representing a 31% decrease. The decrease was due primarily to management’s cost savings initiatives, including headcount reductions and lower professional-services fees, and the removal of expense associated with the legacy business.
Previous wording
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.
Current wording
Depreciation– Depreciation expenses for the six months ended June 30, 2025, and 2024 totaled $36 thousand and $199 thousand, respectively, representing an 82% decrease. The decrease is directly related to the reduction in fixed assets following the sale of the legacy business.
Previous wording
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.
Current wording
Intangible amortization – Intangible amortization expenses for the six months ended June 30, 2025, and 2024 totaled $468 thousand and $458 thousand, respectively. The modest increase is due the timing of amortization of customer relationships, trade names and other intangible assets.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
The technology and services we provide help our clients move people, assets, and data safely and securely through airports, warehouses, schools, national borders, and many other applications and environments.