What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2024-11-14 compared with 2024-08-14 · 63 added, 60 removed, 129 unchanged (49% of the section changed)

37 unchanged sentences

a more detailed discussion of some of the foregoing risks and uncertainties, see Item 1A — “Risk Factors” in our 2023

Form 10-K and Item 1A — “Risk Factors” in this Quarterly Report on Form 10-Q for the quarterly period ended June 30,

Form 10-K and Item 1A — “Risk Factors” in this Quarterly Report on Form 10-Q for the quarterly period ended September

30, 2024, as well as other reports and registration statements filed by us with the SEC.

27 unchanged sentences

and analysis should be read in conjunction with our unaudited condensed consolidated financial statements contained in this Form 10-Q.

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.

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.

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.

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.

OF THE CHANGES IN TRADING VENUE

12 unchanged sentences

May 7, 2024, OMNIQ Corp.

stock transitioned from NASDAQ to the OTC Markets, and OMNIQ’s stock continues to trade on the OTCQB under the ticker symbol

“OMQS”, ensuring uninterrupted market activity for its shareholders.

stock transitioned from NASDAQ to the OTC Markets, and OMNIQ’s stock continues to trade on the OTCQB under

the ticker symbol “OMQS”, ensuring uninterrupted market activity for its shareholders.

AND CAPITAL RESOURCES

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.

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 $38 million and $35 million as of June 30, 2024, and December 31, 2023, respectively.

increase in our stockholders’ deficit was primarily attributable to net losses.

Company’s accumulated deficit was $119 million and $114 million as of June 30, 2024, and December 31, 2023.

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.

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.

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.

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.

Company’s accumulated deficit was $121 million and $114 million as of September 30, 2024, and December 31, 2023.

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

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.

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

of Operations

1 unchanged sentence

In addition, we note that the period-to-period comparison may not be indicative of future performance.

Three months ended June 30,

Three months ended September 30,

Cost of Goods sold

2 unchanged sentences

Net Loss per common Share from continuing operations

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.

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.

of Goods Sold

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

For the three months ended June 30, 2024 and 2023, cost of goods sold were 74% and 81% of net revenues, respectively.

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.

and Development – Research and development expenses for the three months ended June 30, 2024 and 2023 totaled $462 thousand

and $559 thousand, respectively.

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.

– Depreciation expenses for the three months ended June 30, 2024 and 2023 totaled $92 thousand and $96 thousand, respectively,

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.

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.

amortization – Intangible amortization expenses for the three months ended June 30, 2024 and 2023 totaled $227 thousand

The decreases are related to the cost reduction plan put in place by management.

and Development – Research and development expenses for the three months ended September 30, 2024 and 2023 totaled $261

thousand and $482 thousand, respectively.

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.

– Depreciation expenses for the three months ended September 30, 2024 and 2023 totaled $90 thousand and $146 thousand,

respectively, representing a 38% decrease.

amortization – Intangible amortization expenses for the three months ended September 30, 2024 and 2023 totaled $228 thousand

and $418 thousand, respectively.

income and expenses

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.

For the six months ended June 30,

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.

For the nine months ended September 30,

Cost of Goods sold

2 unchanged sentences

Net Loss per common Share from continuing operations

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.

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.

of Goods Sold

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

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 six months ended June 30, 2024 and 2023, cost of goods sold were 73% and 80% of net revenues, respectively.

operating expenses for the six months ended June 30, 2024 and 2023 recognized was $12.1 million and $14.1 million, respectively, representing

For the nine months ended September 30, 2024 and 2023, cost of goods sold were 75% and 79% of net revenues, respectively.

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.

and Development – Research and development expenses for the six months ended June 30, 2024 and 2023 totaled $867 thousand

and $982 thousand, respectively.

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.

– Depreciation expenses for the six months ended June 30, 2024, and 2023 totaled $208 thousand and $204 thousand, respectively.

amortization – Intangible amortization expenses for the six months ended June 30, 2024, and 2023 totaled $458 thousand

and $858 thousand, respectively.

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.

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.

– Depreciation expenses for the nine months ended September 30, 2024, and 2023 totaled $298 thousand and $349 thousand,

respectively.

amortization – Intangible amortization expenses for the nine months ended September 30, 2024, and 2023 totaled $686 thousand

and $1.3 million, respectively.

income and expenses

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.

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.

Company’s results of operations have not been materially affected by inflation and management does not expect inflation to have

25 unchanged sentences

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-Q

Item 2. Management’s Discussion and Analysis