What changed in this filing

/stocks — the workspaceLOADING

Item 1. Business

2022-03-31 compared with 2021-03-31 · 171 added, 179 removed, 56 unchanged (86% of the section changed)

Corp., a Delaware corporation, formerly Quest Solution, Inc., together with its wholly owned subsidiaries, referred to herein

as “we,”

“us,”

and “our”

(“OMNIQ”

or the “Company”), was incorporated

Corp., a Delaware corporation, formerly Quest Solution, Inc., together with its wholly owned and majority owned subsidiaries,

referred to herein as “we,” “us,”, “our”, “OMNIQ”, or the “Company”,

was incorporated in 1973.

Since its incorporation, the Company has been involved in various lines of business.

2008 to 2013, we were in the business of developing oil and gas reserves.

In January 2014, we determined it was in the best

interest of our stockholders to focus on operating companies with a track record of positive cash flows and larger existing

revenue bases.

Our strategy developed into leveraging management’s relationships in the business world for investments

2014, we have made the following acquisitions resulting in us becoming a leading provider of computerized and machine vision image

processing solutions:

In January 2014, we determined it was in the best interest

of our stockholders to focus on operating companies with a track record of positive cash flows and larger existing revenue bases.

strategy developed into leveraging management’s relationships in the business world for investments for us.

2014, we have made the following acquisitions resulting in us becoming a leading provider of computerized and machine vision image processing

Solutions, Inc.

3 unchanged sentences

ViascanQdata,

Inc (October 2015 –

later sold in September 2016)

Inc (October 2015 – later sold in September 2016)

Image Processing, Inc.

2 unchanged sentences

(February 2020)

Computers Ltd.

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 helps our clients move people, assets and data safely and securely through airports, warehouses,

schools, national borders, and many other applications and environments.

technology and services we provide helps our clients move people, assets and data safely and securely through airports, warehouses, schools,

national borders, and many other applications and environments.

offer end-to-end solutions that include hardware, software, communications, and full lifecycle management services.

are an established manufacturer and distributor of barcode labels, tags, and ribbons, as well as RFID labels and tags.

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.

We are an established

manufacturer and 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 customers technical service and support.

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.

customers include government agencies and leading Fortune 500 companies from diverse sectors, including healthcare, food and beverage,

manufacturing, retail, distribution, transportation and logistics, and oil, gas, and chemicals.

Since 2014, our annual

consolidated revenues have grown to more than $50 million with clients in more than 40 countries.

address several billion-dollar markets with double-digit growth, including the Global Safe City market, forecasted to grow to

$29.6 billion by 2022, and the Ticketless Safe Parking market, forecasted to grow to $5.2 billion by 2023.

November 2019, the Company filed an amendment to its Certificate of Incorporation, as amended, with the Secretary of State of

Delaware, pursuant to which we changed our name from Quest Solution, Inc.

to OMNIQ Corp.

Since 2014, our annual consolidated revenues

have grown to more than $75 million with clients in more than 40 countries.

We currently address several billion-dollar markets with

double-digit growth, including the Global Safe City market, forecasted to grow to $29.6 billion by 2022, and the Ticketless Safe Parking

market, forecasted to grow to $5.2 billion by 2023.

strategy is to focus on operational excellence and cost reduction, addressing the balance sheet debt and putting together a business

plan that is based on revenue growth and technological leadership.

We intend to continue to identify synergies within

the Company to offer a more complete offering of products, services and technological solutions to customers throughout the United

Furthermore, the market in which OMNIQ operates is undergoing consolidation and OMNIQ intends to start identifying strategic

companies in the data collection, big data analytics and mobile systems integration market, as well as other complementary technologies

for potential future acquisition in order to become the leading specialty integrator within our served markets.

are a provider of products and solutions to two main markets, supply chain management and smart/safe city.

We intend to continue to identify synergies within the Company to

offer a more complete line of products, services and technological solutions to customers throughout the United States and Israel.

Furthermore, the market in which OMNIQ operates is undergoing consolidation and OMNIQ has started identifying strategic companies

in the data collection, big data analytics and mobile systems integration market, as well as other complementary technologies for potential

future acquisition in order to become the leading specialty integrator within our served markets.

are a provider of products and solutions to two main markets:

supply chain management and smart/safe city.

We have expanded our

product solutions, which are based on artificial intelligence and machine learning algorithms, offering computer vision applications.

Our product offerings have established us as an innovative and technological company, and we are able to offer our fortune 1,000

customers an end-to-end solution.

Our product offerings have established us as an innovative and technological company, and we are able to offer our Fortune 1000 customers

an end-to-end solution.

We are a pioneer in providing cutting-edge technology solutions to the markets we serve.

a world-wide systems integrator, we focus on design, delivery, deployment and support of fully integrated mobile and automatic

identification data collection solutions.

We use unique computer vision technology and additional identification technologies

in its solutions.

We also manufacturer and/or distributor labels, tags, ribbons and RFID identification tags.

We take a consultative

approach by offering end-to-end solutions that include software, algorithm, hardware, service contracts, communications and full

lifecycle management services.

are able to simplify the integration process because of our experienced team of professionals.

We deliver problem solving solutions

backed by numerous customer references.

We offer comprehensive packaged and configurable software, some of which we developed

and some of it is sourced from third parties.

a world-wide systems integrator, we focus on design, delivery, deployment and support of fully integrated mobile and automatic identification

data collection solutions.

We use unique computer vision technology and additional identification technologies in its solutions.

manufacture and distribute labels, tags, ribbons and RFID identification tags.

We provide printing solutions, credit card terminals,

automatic kiosks and point of care units.

We also offer customers technical service and support.

We take a consultative approach

by offering end-to-end solutions that include software, algorithm, hardware, service contracts, communications and full lifecycle management

simplify the integration process because of our experienced team of professionals.

We deliver problem-solving solutions backed by numerous

customer references.

We offer comprehensive packaged and configurable software, some of which we developed and some is sourced from third

We are a leading providing of bar-code labels and ribbons (media).

consultative services to companies to select, design and manufacture the right label for their product offering.

Once a company

purchases our product, sales generally recur on a regular basis.

groundbreaking AI-based vision solutions are currently in use for sensitive Homeland Security anti-terror projects and automated

We provide consultative services to companies to select,

design and manufacture the right label for their product offering.

Once a company purchases our product, sales generally recur on a regular

ground-breaking AI-based vision solutions are currently in use for sensitive Homeland Security anti-terror projects and automated

parking solutions.

Inspired by time-critical “friend or foe”

decision-making processes, our patented algorithms are

based on a combination of cognitive science and machine learning-based pattern recognition technology which is arbitrated through

a multi-layered decision-making process that offers both speed and accuracy.

experienced team of consulting and integration professionals guide companies through the entire development and deployment process,

from selecting technology to the successful company-wide rollout of a customized solution that fits a company’s unique requirements.

After performing a thorough technical evaluation of the client’s current operations and specific operational problems, our

team determines the optimal hardware and software solutions to optimize the client’s operational workflow.

We deliver, ongoing

services provided throughout the deployment process and throughout the entire product life cycle.

We also deliver full installation

services for all mobile, data collection computers and printing equipment including full staging and kitting of the equipment.

have been successful in delivering mission critical mobile computing and data collection solutions to Fortune 1000 companies for

over two decades.

The requirements and needs of our customers continue to evolve as they require new mobile and wireless technologies

and services to make their business more competitive and profitable.

The result is a continuous flow of opportunities for us to

assist customers to evaluate, choose, implement, and support the right mobile and data collection solutions.

As we focus on what

we do best, we believe that there is more than adequate market size, growth and opportunity available to the Company to succeed.

to the solutions offered by the Company is a full suite of configurable packaged software solutions that were internally developed

and provide customers with unique solutions with significant business Return on Investment (“ROI”), including:

Inspired by time-critical “friend or foe” decision-making processes, our patented algorithms are based

on a combination of cognitive science and machine-learning-based pattern-recognition technology which is arbitrated through a multi-layered

decision-making process that offers both speed and accuracy.

experienced team of consulting and integration professionals guide companies through the entire development and deployment process, from

selecting technology, to the successful company-wide rollout of a customized solution that fits a company’s unique requirements.

After performing a thorough technical evaluation of the client’s current operations and specific operational problems, our team

determines the optimal hardware and software solutions to optimize the client’s operational workflow.

We deliver ongoing services

provided throughout the deployment process and throughout the entire product life cycle.

We also deliver full installation services for

all mobile data-collection computers, automatic kiosks, points of care and printing equipment including full staging and kitting

of the equipment.

have been successful in delivering mission-critical mobile-computing and data-collection solutions to Fortune 1000 companies for over

The requirements and needs of our customers continue to evolve as they require new mobile and wireless technologies and

services to make their business more competitive and profitable.

The result is a continuous flow of opportunities for us to assist customers

to evaluate, choose, implement, and support the right mobile and data collection solutions.

As we focus on what we do best, we believe

that there is more than adequate market size, growth, and opportunity available to the Company to succeed.

to the solutions offered by the Company is a full suite of configurable packaged software solutions that were internally developed and

provide customers with unique solutions with significant business Return on Investment (“ROI”), including:

Software designed to increase productivity in the field.

Remote workers increasingly demand rapid access to

real-time information and up to date data to facilitate and streamline their job functions in the field for which we believe our

Order Entry Software is the answer.

Remote workers increasingly demand rapid access to real-time

information and up-to-date data to facilitate and streamline their job functions in the field—our Order Entry Software is the answer.

Adds intelligence to aging order entry system to maximize profits.

The hand held industry is a vital link

in getting remote orders from the field to corporate.

Our Intelligent Order Entry Software adds this capability to aging order

entry systems.

The hand-held industry is a vital link in

getting remote orders from the field to corporate.

Our Intelligent Order Entry Software adds this capability to aging order entry systems.

Track Device Deployment.

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Enhances efficiency in distribution and manufacturing environments.

The warehouse is a collection of applications for

portable devices that we believe extend the power of your existing system out to the warehouse floor and dock doors.

The warehouse is a collection of applications for portable

devices that extend the power of your existing system out to the warehouse floor and dock doors.

Enhances document delivery performance.

We offer proof-of-delivery capabilities as part of its Mobility

Suite that we believe gives companies an edge over competitors by improving customer service.

We offer proof-of-delivery capabilities as part of its Mobility Suite

that gives companies an edge over competitors by improving customer service.

Extends business beyond four walls.

WTMiP provides the link between corporate and the mobile worker.

WTMiP servers

allow files and data to seamlessly synchronize between the corporate host and laptops, handheld devices and Windows CE or Windows

Mobile devices.

WTMiP servers allow files

and data to seamlessly synchronize between the corporate host and laptops, handheld devices, and Windows CE or Windows Mobile devices.

Easy order on-line purchasing portal.

2 unchanged sentences

(Quest Total Solutions as a Service ) :

QTSaaS is a complete mobile services offering that includes hardware, software,

services and wireless data in a bundled subscription payment offering over a period of time.

Our partnership with Hyperion Partners

LLC and wireless carriers allows us to offer mobility solutions to our customers on platforms that extend the market into new

mobile applications that previously were not being automated.

QTSaaS is a complete mobile services offering that includes hardware, software, services,

and wireless data in a bundled subscription payment offering over a period of time.

Our partnership with Hyperion Partners LLC and wireless

carriers allows us to offer mobility solutions to our customers on platforms that extend the market into new mobile applications that

previously were not being automated.

and Label Business:

Repeatable easy order online purchasing portal.

The largest segment of data collection opportunity

for us is the barcode label market providing ongoing and repeatable purchasing business.

We intend to continue in the label business

in the United States of America to drive business growth and increased margins.

The largest segment of data collection opportunity for

us is the barcode label market providing ongoing and repeatable purchasing business.

We intend to continue in the label business in the

United States of America to drive business growth and increased margins.

Target Markets

markets we serve are Smart/Safe City and Supply Chain Management.

Our groundbreaking AI-based vision solutions are currently in

use for sensitive Homeland Security anti-terror projects and discerning customers within the access control, airport, border crossing,

Our ground breaking AI-based vision solutions are currently in use

for sensitive Homeland Security anti-terror projects and discerning customers within the access control, airport, border crossing,

municipality safety, and parking industries.

We seek to utilize our expertise and end-to-end software solutions in markets which

we believe provide the greatest opportunity to increase margins.

the Supply Chain Management market, we believe we can further develop our existing customer base needing to replace their legacy

systems with a new go-to-market strategy leveraging our field sales and system resources, telemarketing, customer portals and

vertical market and barcode label specialists.

We believe our base of industry leading customers for the barcode label and ribbon

(media) products in the manufacturing, distribution, transportation and logistics, retail and healthcare sectors, which sectors

are at the core of our business, are ideal candidates for our machine learning technology.

provide the greatest opportunity to increase margins.

the Supply Chain Management market, we believe we can further develop our existing customer base needing to replace their legacy systems

with a new go-to-market strategy leveraging our field sales and system resources, telemarketing, customer portals, and vertical market

and barcode label specialists.

We believe the ideal candidates for our machine learning technology are our base of industry-leading customers

for the barcode label and ribbon (media) products in the manufacturing, distribution, transportation and logistics, retail and healthcare

sectors—which sectors are at the core of our business.

over two decades, we have been successful in integrating mission critical mobile computing and data collection solutions for Fortune

1000 companies.

The requirements and needs of our customers continue to evolve as they require new mobile and wireless technologies

and services to make their business more competitive and profitable.

The result is a continuous flow of opportunities to assist

customers to evaluate, choose, implement, and support the right mobile and data collection solutions.

As we focus on what we do

best, we believe there is more than adequate market size, growth and opportunity available for us to succeed.

believe integrating our patented and proprietary AI technology into its existing Supply Chain offerings will allow for automated

logistics monitoring and optimization, creating operational efficiencies at higher margins both us and our fortune 1000 clients.

The requirements and needs of our customers continue to evolve as they require new mobile and wireless technologies and

services to make their business more competitive and profitable.

The result is a continuous flow of opportunities to assist customers

to evaluate, choose, implement, and support the right mobile and data collection solutions.

As we focus on what we do best, we believe

there is more than adequate market size, growth, and opportunity available for us to succeed.

believe integrating our patented and proprietary AI technology into its existing Supply Chain offerings will allow for automated logistics

monitoring and optimization, creating operational efficiencies at higher margins for both us, and our Fortune 1000 clients.

Sales Strategy

direct sales teams are supported by systems engineers averaging over twenty (20) years of experience in the mobile industry.

sales organization’s growth in-reach mirrors the addition of new products and services.

Sales team members are organized

by industry areas of opportunity, areas of expertise and territory.

Our sales teams are organized to address national accounts

offering a broad array of unique solutions for key lines of business applications, which provides opportunities for upsell and

cross sell to our clients.

For the barcode label (media) business, we utilize a specialty sales force, resellers and distributors

of our manufactured private label products.

Salespeople are supported internally

by sales support personnel who coordinate quotes and logistics and by members of the systems engineering group and software teams.

normal sales cycle is one (1) to six (6) months, and typically involves the development of a scope of work and preparation of

a ROI analysis.

We use Company developed analysis templates which we believe reduce the sales cycle.

The analyses and proposals

include information on leasing and other financing options, which helps differentiate us from our competitors.

The label business

sales cycles are shorter, with purchases made more frequently on a transactional basis.

organization’s growth in-reach mirrors the addition of new products and services.

Sales team members are organized by industry

areas of opportunity, areas of expertise, and territory.

Our sales teams are organized to address national accounts offering a broad

array of unique solutions for key lines of business applications, which provides opportunities for upsell and cross sell to our clients.

For the barcode label (media) business, we utilize a specialty sales force, resellers, and distributors of our manufactured private label

For the Israeli market we have direct sales teams that are organized by industry and product line.

In Israel we also offer

comprehensive technical service and support which increases customer confidence and supports the sales process.

are supported internally by sales support personnel, who coordinate quotes and logistics, and by members of the systems engineering group

and software teams.

normal sales cycle is one (1) to six (6) months, and typically involves the development of a scope of work and preparation of a ROI analysis.

We use Company developed analysis templates in order to reduce the sales cycle.

The analyses and proposals include information on leasing

and other financing options, which helps differentiate us from our competitors.

The label business sales cycles are shorter, with purchases

made more frequently on a transactional basis.

mobile system integration market is characterized by a limited number of large competitors and numerous smaller niche players.

We typically pursue larger accounts and national customers, competing most often with larger channel partners.

For specific solutions, we also compete with niche players who are often focused

on a single industry.

pursue larger accounts and national customers, competing most often with larger channel partners.

For specific solutions, we also compete

with niche players who are often focused on a single industry.

Hardware sales are competitive because of online retailers.

We believe our consultative, integrated solutions

approach is a clear differentiator for most prospective customers.

OMNIQ’s

operating philosophy is our growth and continued success are the result of management and employees working together in a spirit

of cooperation and teamwork.

Our core values emphasize an environment where safety, diversity, inclusion, talent development,

training and retention are top priorities.

We believe this has enabled us to meet various challenges over the years, and the progress

that has been achieved by us reflects this strong mutual commitment between the Company and its employees.

We believe our employees

are our greatest asset.

We remain focused on furnishing friendly and safe working conditions, providing competitive pay and offering

quality benefits, and producing revenue for the continued growth of the Company and the communities in which we operate, with

an emphasis on the welfare of our employees and their families.

We realize our success is a direct result of the hard work and

dedication of our employees.

Each employee at OMNIQ is a contributing partner in our future growth and we strive to maintain a

mutually beneficial workplace culture that also fosters the professional development of each employee.

our consultative, integrated solutions approach is a clear differentiator for most prospective customers.

operating philosophy is our growth and continued success are the result of management and employees working together in a spirit of cooperation

and teamwork.

Our core values emphasize an environment where safety, diversity, inclusion, talent development, training, and retention

are top priorities.

This has enabled us to meet various challenges over the years.

The progress that has been achieved by us reflects

this strong mutual commitment between the Company and its employees.

We believe our employees are our greatest asset.

We remain focused

on furnishing friendly and safe working conditions, providing competitive pay, offering quality benefits, and producing revenue for the

continued growth of the Company and the communities in which we operate.

All of this with an emphasis on the welfare of our employees

and their families.

We realize our success is a direct result of the hard work and dedication of our employees.

Each employee at OMNIQ

is a contributing partner in our future growth and we strive to maintain a mutually beneficial workplace culture that also fosters the

professional development of each employee.

of December 31, 2021, we had approximately 193 employees.

Of these employees, 46 are salaried (including commissioned employees)

personnel and 15 are hourly personnel.

Of these employees, 174 are salaried (including commissioned employees) personnel

and 19 are hourly personnel.

Our employees perform the following functions:

sales operations, parts operations, technical

services and office and administrative support.

We believe our relations with our employees are good, and we have never experienced

a work stoppage.

sales operations, parts operations, technical services, and

office and administrative support.

We believe we have good relations with our employees, and we have never experienced a work stoppage.

Generally, the total number of employees does not significantly fluctuate throughout the year.

Concentrations

the years ended December 31, 2020 and 2019, one customer accounted for 37.2% and 12.3%, respectively, of the Company’s consolidated

receivable at December 31, 2020 and 2019 are made up of trade receivables due from customers in the ordinary course of business.

Two customers made up 46% of the accounts receivable balance at December 31, 2020 and two customers together represented 20.9%

of the balance of accounts receivable at December 31, 2019.

payable are made up of amounts due to suppliers in the ordinary course of business at December 31, 2020 and 2019.

One vendor made up 92.4% and 83.0% of our accounts payable in 2020 and 2019, respectively.

OMNIQ’s

website is located at www.omniq.com .

The Company’s website and the information to be contained on that site, or connected

to that site, are not part of or incorporated by reference into this filing.

file electronically with the SEC annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and

amendments to those reports filed or furnished pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.

maintains an Internet site (www.sec.gov) that contains reports, proxy and information statements, and other information regarding

issuers that file electronically with the SEC.

Copies of these reports, proxy and information statements and other information

may be obtained by electronic request at the following e-mail address:

the years ended December 31, 2021 and 2020, two customers accounted for 23% and one customer accounted for 37.2%, respectively, of the

Company’s consolidated revenues.

receivables are made up of trade receivables due from customers in the ordinary course of business.

One customer made up 17% of

the accounts receivable balance as of December 31, 2021, and 46% of the balance of accounts receivable as of December 31, 2020.

of December 31, 2021 and 2020 one vendor made up 65% and 70%, respectively, of our purchases.

website, www.omniq.com , and the information contained on that site, or connected to that site, are not part of or incorporated

by reference into this filing.

file electronically with the SEC annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and amendments

to those reports filed or furnished pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.

The SEC maintains an Internet

site (www.sec.gov) that contains reports, proxy and information statements, and other information regarding issuers that file electronically

with the SEC.

Copies of these reports, proxy and information statements and other information may be obtained by electronic request at

the following e-mail address:

publicinfo@sec.gov.

We use the Investor section of our

website as a means of disclosing material non-public information and for complying with our disclosure obligations under Regulation

Accordingly, investors should monitor the Investor section of our website, in addition to following press releases, SEC filings

and public conference calls and webcasts.

We use the Investor section of our website as a means of disclosing material non-public

information and for complying with our disclosure obligations under Regulation FD.

Accordingly, investors should monitor the Investor

section of our website, in addition to following press releases, SEC filings, and public conference calls and webcasts.

section is not required for smaller reporting companies.

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business