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Artificial Intelligence

OMNIQ Announces Q1 2020 Revenue increased 43% YoY to $19.8 Million; 100% Growth in AI-Based Technology Contracts

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Subsequent to quarter end, OMNIQ announced a definitive agreement to acquire technology leader, Dangot Computers Ltd., creating a combined $91 Million Revenue provider of automation and object identification solutions, positioned to drive increased adoption of OMNIQ’s AI Based Offerings

SALT LAKE CITY, May 13, 2021 (GLOBE NEWSWIRE) — OMNIQ Corp. (OTCQB: OMQS) (“OMNIQ” or “the Company”), a provider of Supply Chain and Artificial Intelligence (AI)-based solutions, today announced its financial results for the three month period ended March 31, 2021.

Select Q1 2021 and recent highlights include:

  • Subsequent to quarter end, OMNIQ announced a definitive agreement to acquire technology leader, Dangot Computers Ltd., creating a combined $91 Million Revenue provider of automation and object identification solutions, positioned to drive increased adoption of OMNIQ’s AI Based Offerings
  • Q1 Sales of $19.8 million Increased 43% YoY
  • Sales Orders from Artificial Intelligence (AI) Based Technology grew 100% in Q1 2021
  • Secured a $6.8 Million Purchase Agreement from a leading specialty retailer
  • Received a $6.1 Million Purchase Agreement from Leading U.S. Food Distributor
  • Won an AI based homeland security project for terror prevention in a sensitive area in the middle east.
  • AI Based Vehicle Recognition Systems Selected for Urban Traffic Management and Regulation Enforcement Projects

Shai Lustgarten, CEO of OMNIQ, “2021 is off to a great start. Last week we announced a definitive agreement to acquire Dangot, forming a combined $91 Million revenue automation and object identification solutions powerhouse, well placed to drive increased sales of our AI based offerings.”

“We also recorded a strong first quarter on an organic basis” said Shai Lustgarten, CEO of OMNIQ. “Revenue increased 43% to nearly $20 million and AI based technology contracts grew 100% year over year. As we add new AI based projects, book repeat supply chain sales, in higher volumes, from our Fortune 500 customers, and cross-sell AI-based solutions to our supply chain customers, and now to Dangot customers, we expect rapid growth to continue. ”

First Quarter 2020 Financial Results 
OMNIQ reported revenue of $19.8 million for the quarter ended March 31, 2021, an increase of 43% from $13.8 million in the first quarter of 2020. The revenue increase reflects higher demand from certain customers during the quarter as well as continued traction in our markets. Total operating expenses for the quarter were $5.5 million, compared with $5.1 million in the first quarter of 2020.

Net loss for the quarter was $3.3 million, or a loss of $.70 per basic share, compared with a loss of $2.9 million, or a loss of $.74 per basic share, for the first quarter of last year.

Adjusted EBITDA (adjusted Earnings Before Interest, Taxes, Depreciation and Amortization) for the first quarter of 2020 amounted to a loss of $1.2 million compared with an adjusted EBITDA loss of $834 thousand in the first quarter of 2020.

After fully paying off its $5.0 million credit line, cash was $2.7 million for the period ended March 31, 2021.

Financial tables follow.

OMNIQ CORP.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

    For the three months ended  
    31-Mar  
(In thousands, except share and per share data)   2021     2020  
Revenues                
Total Revenues   $ 19,751     $ 13,799  
                 
Cost of goods sold                
Cost of goods sold     17,115       10,763  
                 
Gross profit     2,636       3,036  
                 
Operating expenses                
Research and development     494       386  
Selling, general and administrative     4,438       4,137  
Depreciation     43       47  
Amortization     525       502  
Total operating expenses     5,500       5,072  
                 
Income (loss) from operations     (2,864 )     (2,036 )
                 
Other income (expenses):                
Interest expense     (589 )     (795 )
Other (expenses) income     110       (42 )
Total other expenses     (479 )     (837 )
                 
Net loss before Income Taxes     (3,343 )     (2,873 )
                 
Provision for Income Taxes                
Current            
Total Provision for Income Taxes            
                 
Net loss attributable to OMNIQ Corp.   $ (3,343 )   $ (2,873 )
Less: Preferred stock – Series C dividend     (31 )     (72 )
Net loss attributable to the common stockholders   $ (3,374 )   $ (2,945 )
Foreign currency translation adjustment     105        
Other comprehensive income (loss)     (3,269 )     (2,945 )
                  
Net loss per share – basic   $ (0.70 )   $ (0.74 )
                 
Net loss per share from continuing operations – basic   $ (0.70 )   $ (0.74 )
Weighted average number of common shares outstanding – basic     4,700,737       3,984,006  

OMNIQ CORP.
CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except share and per share data)   As of  
    31-Mar-21     31-Dec-20  
             
ASSETS                
Current assets                
Cash and cash equivalents   $ 2,669     $ 4,594  
Accounts receivable, net     11,428       9,661  
Inventory     2,347       1,507  
Prepaid expenses     634       670  
Other current assets     12       10  
Total current assets     17,090     $ 16,442  
                 
Property and equipment, net of accumulated depreciation of $642 and $600, respectively     248       289  
Goodwill     14,695       14,695  
Trade name, net of accumulated amortization of $3,464 and $3,362, respectively     927       1,028  
Customer relationships, net of accumulated amortization of $8,456 and $8,111, respectively     4,133       4,479  
Other intangibles, net of accumulated amortization of $415 and $382, respectively     1,008       1,042  
Restricted Cash           533  
Right of use lease asset     69       76  
Other assets     42       74  
Total assets   $ 38,212     $ 38,658  
                 
LIABILITIES AND STOCKHOLDERS’ EQUITY                
Current liabilities                
Accounts payable and accrued liabilities   $ 34,074     $ 26,811  
Line of credit           4,914  
Accrued payroll and sales tax     1,364       1,717  
Notes payable, related parties – current portion     390       433  
Notes payable – current portion     6,449       6,449  
Lease liability – current portion     32       31  
Other current liabilities     1,380       1,412  
Total current liabilities     43,689       41,767  
                 
Long term liabilities                
Notes payable, related party, less current portion     585       683  
Accrued interest and accrued liabilities, related party     59       56  
Notes payable, less current portion           1  
Lease liability     40       48  
Other long-term liabilities     1,178       1,146  
Total liabilities     45,551       43,701  
                 
Stockholders’ equity (deficit)                
Series A Preferred stock; $0.001 par value; 1,000,000 shares designated, 0 shares issued and outstanding            
Series B Preferred stock; $0.001 par value; 1 share designated, 0 shares issued and outstanding            
Series C Preferred stock; $0.001 par value; 5,000,000 shares designated, 2,145,030 shares issued and outstanding, respectively     2       2  
Common stock; $0.001 par value; 15,000,000 shares authorized; 4,716,218 and 4,684,736 shares issued and outstanding, respectively.     5       5  
Additional paid-in capital     52,819       51,842  
Accumulated (deficit)     (60,104 )     (56,726 )
Accumulated other comprehensive loss     (61 )     (166 )
Total stockholders’ equity (deficit)     (7,339 )     (5,043 )
Total liabilities and stockholders’ equity (deficit)   $ 38,212     $ 38,658  

OMNIQ Corp.
RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES

    Three months ended
(In thousands)   March 31,
Adjusted EBITDA Calculation   2021       2020  
           
Net loss     (3343 )       (2873 )
Depreciation & amortization     566         548  
Interest expense     589         795  
Income taxes              
Stock compensation     1107         544  
Nonrecurring loss events     (110 )       153  
Adjusted EBITDA     (1191 )       (833 )
               
Total revenues, net     19751         13,799  
               
Adjusted EBITDA as a % of total revenues, net     (6.03 ) %     (6.04 )


Conference Call Information

To participate in this event, dial approximately 5 to 10 minutes before the beginning of the call. 
Date, Time: May 14, 2021, at 11:00am ET 
Toll-Free: 877-407-9210 
International: 201-689-8049 
Live Webcast: https://www.webcaster4.com/Webcast/Page/2310/41133

Conference Call Replay Information

Toll-Free: 877-481-4010 
Reference ID: 41133

About OMNIQ Corp. 
OMNIQ Corp. (OTCQB: OMQS) provides computerized and machine vision image processing solutions that use patented and proprietary 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 provided by the Company help clients move people, assets and data safely and securely through airports, warehouses, schools, national borders, and many other applications and environments.

OMNIQ’s customers include government agencies and leading Fortune 500 companies from several sectors, including manufacturing, retail, distribution, food and beverage, transportation and logistics, healthcare, and oil, gas, and chemicals. Since 2014, annual revenues have grown to more than $50 million from clients in the USA and abroad.

The Company currently addresses several billion-dollar markets, including the Global Safe City market, forecast to grow to $29 billion by 2022, and the Ticketless Safe Parking market, forecast to grow to $5.2 billion by 2023. For more information, visit www.omniq.com.

Information about Forward-Looking Statements

“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995. Statements in this press release relating to plans, strategies, economic performance and trends, projections of results of specific activities or investments, and other statements that are not descriptions of historical facts may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.

This release contains “forward-looking statements” that include information relating to future events and future financial and operating performance. The words “anticipate”, “may,” “would,” “will,” “expect,” “estimate,” “can,” “believe,” “potential” and similar expressions and variations thereof are intended to identify forward-looking statements. Forward-looking statements should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of the times at, or by, which that performance or those results will be achieved. Forward-looking statements are based on information available at the time they are made and/or management’s good faith belief as of that time with respect to future events, and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. Important factors that could cause these differences include, but are not limited to: fluctuations in demand for the Company’s products particularly during the current health crisis, the introduction of new products, the Company’s ability to maintain customer and strategic business relationships, the impact of competitive products and pricing, growth in targeted markets, the adequacy of the Company’s liquidity and financial strength to support its growth, the Company’s ability to manage credit and debt structures from vendors, debt holders and secured lenders, the Company’s ability to successfully integrate its acquisitions, and other information that may be detailed from time-to-time in OMNIQ Corp.’s filings with the United States Securities and Exchange Commission. Examples of such forward looking statements in this release include, among others, statements regarding revenue growth, driving sales, operational and financial initiatives, cost reduction and profitability, and simplification of operations. For a more detailed description of the risk factors and uncertainties affecting OMNIQ Corp., please refer to the Company’s recent Securities and Exchange Commission filings, which are available at https://www.sec.gov. OMNIQ Corp. undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless otherwise required by law.

Investor Contact:

James Carbonara 
Hayden IR 
(646)-755-7412 
[email protected]

Brett Maas 
Hayden IR 
(646) 536-7331 
[email protected]

 

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Artificial Intelligence

Elevate Your Virtual Reality Experience with KIWI design RGB Vertical Stand, Now Available on Meta’s Website

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LOS ANGELES, May 11, 2024 /PRNewswire/ — Top-tier VR accessories provider KIWI design has launched its latest product, the RGB Vertical Stand. This Meta-authorized accessory, designed to deepen users’ immersion in the metaverse, is now available on the official Meta website.

“KIWI design’s commitment to pushing the boundaries of virtual reality accessories takes another leap forward with the introduction of our new products,” said Ray,the CEO of KIWI design. “We are always dedicated to bringing innovative upgrades to VR device accessories, with the goal of enriching users’ virtual reality experiences.”
The newly launched RGB Vertical Stand features a user-friendly modular design with push-in assembly, making it easy to set up and use. It is compatible with Meta Quest 3, Quest 2, and Quest Pro, ensuring widespread usability. With a magnetic USB Type-C connector, it provides an effortless way to charge and display your headset. Users can also customize their display with 16 pre-set ambient multicolor RGB light options.
With VR technology constantly evolving, users are seeking more immersive experiences. As a leading manufacturer of VR accessories, KIWI design is committed to enhancing the user experience, through unique product designs. Since its establishment in 2015, KIWI design has acquired over 100 patents and has a diverse product lineup, including head straps, facial interfaces, VR stands, charging accessories, and controller grip covers.
KIWI design has also actively participated in the Made for Meta program, which is provided by Meta to strengthen its partnerships with leading brands to deliver accessories that enhance Meta products with more choice and a richer experience for everyone. KIWI design’s participation in this program validates its high-quality design standards.
The RGB Vertical Stand for Meta Quest 3, Quest 2, and Quest Pro and another specially designed authorized charging dock for the Meta  Oculus Quest 2 are now available for purchase on both KIWI design’s website and Amazon. For more information about our brand and products, please visit our website and follow KIWI design on Facebook, Instagram, X, YouTube and TikTok.
https://www.kiwidesign.com/
https://www.facebook.com/KIWIdesignOfficial
https://www.instagram.com/kiwidesignins/

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WIO Taps Gracenote to Revolutionize Television Broadcast Reporting

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LOS ANGELES, May 11, 2024 /PRNewswire/ — WIO LLC, parent company of the global TV broadcast airings platform, WIOpro™, has announced a new strategic agreement with Gracenote, the global content data business unit of Nielsen, to address the longstanding challenge of accurately tracking and collecting music royalties generated by broadcast television and digital programming, With this agreement, WIO will integrate Gracenote TV program metadata and show airings into its WIOpro™ (“When’s It On – Professional”) platform enabling performance rights organizations, copyright management organizations and other entities to better monitor broadcast schedules and identify when royalties have been earned.

By integrating Gracenote historical program data into WIOpro’s new LookBack™ feature, WIO is enhancing its reporting capabilities and empowering Collection Societies, Rights Management Companies and the royalty-earning community to more easily monitor and export broadcast airings and better understand collections opportunities.
“At WIO, we are committed to empowering collection societies and copyright holders around the world with our platform tools and unprecedented access to the best and most accurate television broadcast and streaming data available,” said Shawn Pierce, Co-Founder and CEO of WIO LLC. “We have enjoyed an incredible relationship with Gracenote for 10 years. With the solidification of this agreement, we are able to deliver an unrivaled dataset to the royalty and residual community in a way that has not been offered before.” said Adam Shafron, Co-Founder and CTO of WIO LLC.
“WIO’s platform developed to solve the difficult matter of royalty tracking only becomes more powerful based on the integration of accurate, timely and comprehensive Gracenote metadata,” said Scott Monahan, Director, Strategic Partnerships, Gracenote. “We look forward to the combination of WIOpro’s technology and Gracenote’s program metadata delivering on the promise of transforming music royalty collection so that rights holders can be fairly compensated for use of their work.”
WIO and Gracenote will be at the MusicBiz 2024 conference in Nashville, TN May 13 – 16. Contact Dave Pelman, COO of WIO LLC at [email protected] for media queries or to book an appointment for a product demonstration.
About WIO:WIO is a technology company dedicated to providing broadcast television and digital programming data tailored specifically for the royalty and residual collection industry. Through its platform WIOpro (wiopro.com), users obtain access to real-time broadcast insights, reporting and curated data delivery.
About Gracenote:Gracenote is the content data business unit of Nielsen providing entertainment metadata, connected IDs and related offerings to the world’s leading creators, distributors and platforms. Gracenote enables advanced content navigation and discovery capabilities helping individuals easily connect to the TV shows, movies, music, podcasts and sports they love while delivering powerful content analytics making complex business decisions simpler.
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IDTechEx Explores Printed Electronics in Electrified and Autonomous Mobility

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BOSTON, May 10, 2024 /PRNewswire/ — Electrification, autonomy, and vehicle ownership saturation are causing a technological revolution in the automotive sector. These automotive meta-trends are driving drastic changes in electronic component requirements and present a high-volume opportunity for printed electronics to capitalize on.

Historically, printed electronics technologies have nurtured a close relationship with the automotive sector, with printed force sensors pioneering passenger safety through seat occupancy and seatbelt detection. As such, the automotive sector continues to represent the lion’s share of the global printed and flexible sensor market, which IDTechEx’s report on the topic evaluates as worth US$421M in 2024. However, if the automotive sector is to continue to be a reliable revenue stream, printed electronics technology providers must adapt to address the emerging technical challenges facing future mobility.
Augmenting autonomous vehicles with printed electronics
As vehicle autonomy levels advance, the increasing number and distribution of spatial mapping sensors required will need continuous performance improvements to ensure passenger safety. Emerging printed electronics technologies can augment these sensors, extending detection bandwidth and maximizing reliability during operation.
Transparent conductive films (TCFs) are being developed to heat and defog LiDAR sensor panels, ensuring the function is unperturbed by external environmental conditions. Properties such as high transparency and low haze are important for defogging. These properties can be easily tuned using the wide variety of material options available for TCFs, including carbon nanotubes and silver nanowires.
IDTechEx identifies printed heating as a leading application of transparent conductive films. This is attributed to diminishing growth prospects in capacitive touch sensing applications. Innovations in thin film coating techniques have enabled indium tin oxide (ITO) to dominate touch sensing applications, all but displacing TCFs completely.
Looking towards the future, printed electronics technologies could play a more active role in advanced autonomous driving. Emerging semiconductive materials, such as quantum dots, printed directly onto conventional silicon image sensor arrays can extend detection range and sensitivity deeper into the infrared region. Augmenting existing image sensor technology with enhanced spectral range could facilitate the competition of hybrid silicon sensors with established InGaAs detectors.
Printed sensors promise granularized battery health monitoring
Vehicle electrification is driving the sustained development and evolution of electronic management systems, particularly in the battery and electric drivetrain. A strong market pull exists for technologies that increase vehicle efficiency, range, and lifetime while reducing recharge times.
Printed pressure and temperature sensors measure battery cell swelling and thermal profiles, providing granularized physical data that can be used to optimize battery deployment and recharging. Moreover, hybrid printed sensors that combine integrated printed heating elements promise a solution to actively address battery temperature. IDTechEx estimates that printed sensor-enabled battery deployment and charging optimizations could be worth up to US$3000 in savings per vehicle.
There remains uncertainty about whether electrification trends will correspond to increased demand for physical sensors in electric vehicle batteries, owing to the utility of existing electronic readouts for managing deployment. Virtual sensors also pose a threat, where AI-enabled software models interpret data to predict and emulate physical sensor functions without the need for discreet components. However, emerging regulations regarding safety and sensor redundancy will likely favor measurable metrics and see automotive makers continue to adopt physical sensors. IDTechEx predicts that virtual sensors are unlikely to displace their physical counterparts – so long as low-cost sensors remain widely available.
Embedding printed electronics in the car of the future
IDTechEx predicts that global car sales will saturate over the next decade, with automakers increasingly looking for premium features and technical innovations to differentiate themselves from the competition. In-cabin technologies will be highly desirable – as the location where passengers reside and interact with the vehicle the most.
Lighting elements are emerging as a prominent differentiator, described as “the new chrome” by Volkswagen’s chief designer. The use of in-mold structural electronics (IMSE) enables the integration of embedded lighting elements using existing manufacturing processes. 3D electronics technologies are intrinsically attractive for automotive integration, as functional layers are conformable and lightweight while easily embedded within existing aesthetic elements.
Despite strong tailwinds, the adoption of in-mold electronics within automotive interiors has been sluggish. This is attributed to the challenges of meeting automotive qualification requirements, as well as stiff competition with less sophisticated alternatives such as applying functional films to thermoformed parts. Nevertheless, momentum is building, with technology providers like Tactotek partnering with Mercedes-Benz and Stallantis to progress the automotive validation of IMSE to TRL5.
Outlook for printed electronics in automotive applications
Just as printed force sensors heralded early passenger safety systems, printed electronics technology is poised to underpin next-generation innovations for the car of the future. But this time, the competition will be stiff. Critical cost requirements must be met, while desirable new functionality must address existing challenges faced by manufacturers. Printed electronics can play a role in supporting emerging electrified and autonomous mobility, such as augmenting LiDAR sensors or optimizing electric battery deployment. Demand for technologies that enhance passenger experience and vehicle aesthetics will continue to grow, and printed electronics can supply low-power, lightweight lighting solutions for these.
Sustained engagement from tier suppliers and manufacturers continues to make the automotive sector key to printed sensor market growth opportunities – a total market IDTechEx predicts will reach US$960M by 2034. Strong partnerships between material providers and printed electronics technology providers are complementary to those of the highly vertically integrated automotive value chains between tier suppliers and OEMs. Leveraging printing techniques to provide solutions that slot into existing manufacturing processes and designs will be crucial. In the medium term, the printed electronics technologies most likely to realize revenue potential are those that can adapt to service emerging challenges already known to the automotive industry.
For more information on IDTechEx’s research on this topic, please see their report, “Printed and Flexible Sensors 2024-2034: Technologies, Players, Markets”. Downloadable sample pages are available for this report.
For the full portfolio of printed and flexible electronics market research from IDTechEx, please visit www.IDTechEx.com/Research/PE.
About IDTechEx:
IDTechEx provides trusted independent research on emerging technologies and their markets. Since 1999, we have been helping our clients to understand new technologies, their supply chains, market requirements, opportunities and forecasts. For more information, contact [email protected] or visit www.IDTechEx.com. 
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Media Contact:
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