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OMNIQ Announces Record Six Months Revenue of $33M, a 24% Growth YoY and Second Quarter 3.5% Growth to $13.1M

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  • Subsequent to quarter end, OMNIQ announced the closing of its 51% acquisition of technology leader, Dangot Computers Ltd (Dangot). Based on 2020 results creating a combined $91 Million Revenue provider of automation and object identification solutions, positioned to drive increased adoption of OMNIQ’s AI Based Offerings.
  • OMNIQ will start consolidating Dangot’s Financial Results beginning July 1, 2021.
  • Growth in Revenue of OMNIQ and Dangot in H1 2021 result in a $52.5 Million Dollar Consolidated Revenue of the combined Company – an annual run rate exceeding $100 Million a year.

SALT LAKE CITY, Aug. 12, 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 June 30, 2021.

Subsequent to quarter end, OMNIQ announced the closing of its 51% acquisition of 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

Dangot Six-Month Ended June 30, 2021

  • Six-month revenue of $19.5 million
  • Six-month gross margin 24%
  • Six-month net income before tax of $1.4 million
  • Six-month net income of $1 million
  • Aroma Espresso Bar (Aroma), the largest coffee chain in Israel with branches in the US, Canada and other countries, has chosen Dangot to provide its self-service kiosks. According to a Forbes article titled “Self-Order Kiosks Are Finally Having A Moment In The Fast Food Space”, written by Alicia Kelso (1) , it is predicted that the self-service kiosk market will reach $30.8 billion by 2024.

Pro Forma (OMNIQ and Dangot Combined) Six-Month Ended June 30, 2021

  • Six-month revenue of $ 52.5
  • Six-month gross margin 20%

OMNIQ (Stand-Alone) Q2 2021 and recent highlights include:

  • Q2 sales of $13.1 million increased 3.5% YoY; 1H sales of $33 million increased 24% YoY
  • Q2 Revenue [Sales Orders] from Artificial Intelligence (AI) Based Technology grew ~100% compared to Q1 2021
  • Received an approximately $1.1 million purchase agreement from a leading global specialty apparel retailer, which generates over $3 billion in annual revenue.
  • Secured purchase orders with a total value of approximately $1.5 million from a leading freight transportation and logistics company
  • AI-based machine vision solution, Q Shield™, selected by largest seaport in Israel with annual cargo tonnage of more than 20 million tons
  • AI Based cloud software, PERCS™, selected by multibillion dollar medical center for campus parking management

Shai Lustgarten, CEO of OMNIQ, “Our strong momentum in 2021 continued during the second quarter, and into Q3. In fact, just last month we announced the closing of our 51% acquisition of Dangot, based on Pro Forma 2021 half year results the combined consolidated revenue exceeds $52 million representing an annual run rate of over $100 million. We have become a powerhouse of AI, object identification and automation that is well placed to drive growth and stronger financial results. First steps in combining technologies and efforts with Dangot look very promising and we hope to benefit from these efforts very soon. Also, we expect pro forma financials, combined with Dangot, will help us achieve our goal of uplisting to a major stock exchange. Additionally, Dangot launches OMQNIQ into the self-service kiosk market, which is estimated to reach $30.8 billion by 2024.”

“We also recorded strong results on an organic basis” said Shai Lustgarten, CEO of OMNIQ. “Six months revenue reached $33 million, up 24% year over year, and AI based revenue in Q2 2021 increased ~100% from Q1 2021. We also improved our margins, returning to 25% margins in Q2 2021 and subsequent to the end of the quarter we improved our financial strength with a record in cash position. Looking ahead, we are focused on continuing to 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 growth to continue.”

Second Quarter 2021 Financial Results
OMNIQ reported revenue of $13.1 million for the quarter ended June 30, 2021, an increase of 3.5% from $12.7 million in the second 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 $5.1 million, compared with $3.9 million in the second quarter of 2020.

Net loss for the quarter was $2.5 million, or a loss of $.53 per basic share, compared with a loss of $1.9 million, or a loss of $.49 per basic share, for the second quarter of last year.

Adjusted EBITDA (adjusted Earnings Before Interest, Taxes, Depreciation and Amortization) for the second quarter of 2021 amounted to a loss of $437 thousand compared with an adjusted EBITDA loss of $551 thousand in the second quarter of 2020.

Cash balance at June 30, 2021 was $5.4 million compared with $4.6 million at December 31, 2020. The balance at June 30, 2021 does not include net proceeds of $13.8 million from a securities purchase agreement that closed in July 2021.

Financial tables follow.

OMNIQ CORP.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

                       
  For the three months     For the six months  
  ending June 30,     ending June 30,  
(In thousands, except share and per share data) 2021     2020     2021     2020  
Revenues                              
Total Revenues $ 13,119     $ 12,677     $ 32,870     $ 26,476  
                               
Cost of goods sold                              
Cost of goods sold   9,820       10,099       26,936       20,862  
                               
Gross profit   3,299       2,578       5,934       5,614  
                               
Operating expenses                              
Research & Development   468       447       962       832  
Selling, general and administrative   4,109       2,892       8,547       7,031  
Depreciation   42       43       85       90  
Amortization   522       510       1047       1,011  
Total operating expenses   5,141       3,892       10,641       8,964  
                               
Loss from operations   (1,842 )     (1,314 )     (4,707 )     (3,350 )
                               
Other income (expenses):                              
Interest expense   (714 )     (418 )     (1,304 )     (1,213 )
Other (expenses) income   49       (260 )     160       (302 )
Total other expenses   (666 )     (678 )     (1,144 )     (1,515 )
                               
Net Loss Before Income Taxes   (2,507 )     (1,992 )     (5,850 )     (4,865 )
                               
Provision for Income Taxes                      
Current                          
Total Provision for Income Taxes   (3 )           (3 )      
                               
Net Loss attributable to OMNIQ Corp. $ (2,510 )   $ (1,992 )   $ (5,853 )   $ (4,865 )
                               
Foreign currency translation adjustment   (71 )     3       (132 )     (14 )
                               
Comprehensive loss   (2,581 )     (1,989 )     (5,985 )     (4,879 )
                               
Reconciliation of net loss to net loss attributable to common shareholders                              
Net loss   (2,510 )     (1,992 )     (5,853 )     (4,865 )
                               
Less: Preferred stock – Series C dividend   (25 )     (54 )     (57 )     (126 )
                               
Net loss attributable to the common stockholders $ (2,535 )   $ (2,046 )   $ (5,910 )   $ (4,991 )
                               
Net (loss) per share – basic $ (0.53 )   $ (0.49 )   $ (1.24 )   $ (1.21 )
                               
Weighted average number of common shares outstanding – basic   4,930,149       4,141,061       4,816,718       4,135,420  
                               

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

    Six months ended  
(In thousands)   June 30,  
Adjusted EBITDA Calculation   2021     2020  
             
Net loss   (5,853)     (4,865)  
Depreciation & amortization   1,131     1,101  
Interest expense   1,304     1,213  
Income taxes   3      
Stock compensation   1,949     1,429  
Nonrecurring loss events   (160)     302  
Adjusted EBITDA   (1,626)     (820)  
             
Total revenues, net   32,870     26,476  
             
Adjusted EBITDA as a % of total revenues, net   (4.95) %   (3.10) %
             

Conference Call Information

To participate in this event, dial approximately 5 to 10 minutes before the beginning of the call.
Date, Time: August 6, 2021, at 11:00am ET
Toll-Free: 877-407-9210
International: 201-689-8049
Live Webcast: https://www.webcaster4.com/Webcast/Page/2310/42363

Conference Call Replay Information

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

Replay Webcast: https://www.webcaster4.com/Webcast/Page/2310/42363

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

Kanazawa University research: Biochemical tails tell a story

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KANAZAWA, Japan, April 24, 2024 /PRNewswire/ — Researchers at Nano Life Science Institute (WPI-NanoLSI), Kanazawa University report in Nano Letters how the use of high-speed atomic force microscopy helps to understand the crucial role played by certain biomolecules in DNA wrapping dynamics.

In plants and animals, the basic packaging units of DNA, which carry genetic information, are the so-called nucleosomes. A nucleosome consists of a segment of DNA wound around eight proteins known as histones. During gene expression (the process lying at the basis of protein production), nucleosomes are involved in various dynamical structural changes, such as nucleosome sliding, DNA unwrapping and other DNA–histone interactions. Of particular importance in these processes are the end structures, or tails, of the histones. Histone tails undergo chemical modifications, changing the histone’s functionality as needed. Detailed studies, and especially visualizations, of nucleosome dynamics are crucial for better understanding the role of histone tails. Mikihiro Shibata from Kanazawa University and colleagues have now succeeded in making video recordings of tail-less nucleosomes, showing that the absence of histone tails significantly increases a nucleosome’s dynamic activity.
The scientists used high-speed atomic force microscopy (HS-AFM), a powerful nanoimaging tool for visualizing molecular structures and their dynamics at high spatial and temporal resolution. For this, the nucleosomes needed to be put onto a substrate. Shibata and colleagues used a film of so-called pillar[5]arenes (molecules with a pentagonal tubular structure) as the substrate, forming an ideal surface as the nucleosomes are easily adsorbed to it without dynamical processes getting suppressed.
The researchers first looked at nucleosomes for which all eight histones lacked tails. Based on their HS-AFM observations, they concluded that nucleosome sliding and DNA unwrapping/rewrapping occurred more often than for normal (canonical) nucleosomes. This suggests that without tails, the histone–DNA interaction is weakened, leading to a situation in which DNA can more easily detach from the histones.
To better understand the roles of specific histone tails, Shibata and colleagues prepared nucleosomes where one type of histone was tailless. There are four different types of histones, called H2A, H2B, H3 and H4. HS-AFM experiments on the nucleosomes revealed that H2B and H3 tail-less nucleosomes showed an increased frequency of dynamics. Conversely, this means that canonical H2B and H3 histones are essential for nucleosome stability.
The scientists point out that they could not observe any actual motion of histone tails — most likely the temporal resolution of the study, 0.3 seconds, was much slower than the rate of the wrapping/unwrapping dynamics of the tails. Despite this limitation, the work of Shibata and colleagues clearly proves that the tails of H2B and H3 histones are the main contributors to nucleosome dynamics. Regarding future work, quoting the researchers, “a technique for tagging histone tail tips might enable HS-AFM to capture the movements of the histone tails themselves.”
Background
High-speed atomic force microscopy
The general principle of atomic force microscopy (AFM) is to make a very small tip scan the surface of a sample. During this horizontal (xy) scan, the tip, which is attached to a small cantilever, follows the sample’s vertical (z) profile, inducing a force on the cantilever that can be measured. The magnitude of the force at the xy position can be related to the z value; the xyz data generated during a scan then result in a height map providing structural information about the investigated sample. In high-speed-AFM (HS-AFM), the working principle is slightly more involved: the cantilever is made to oscillate near its resonance frequency. When the tip is moved around a surface, the variations in the amplitude (or the frequency) of the cantilever’s oscillation — resulting from the tip’s interaction with the sample’s surface — are recorded, as these provide a measure for the local z value. AFM does not involve lenses, so its resolution is not restricted by the so-called diffraction limit as in X-ray diffraction, for example.
HS-AFM results in a video, where the time interval between frames depends on the speed with which a single image can be generated (by xy-scanning the sample). Researchers at Nano Life Science Institute (WPI-NanoLSI), Kanazawa University have in recent years developed HS-AFM further, so that it can be applied to study biochemical molecules and biomolecular processes in real-time. Mikihiro Shibata and colleagues have now applied the method to study nucleosome dynamics in detail, and in particular the role of the molecular endings of histones — proteins that play a crucial role in DNA accessibility.
Reference
Shin Morioka, Takumi Oishi, Suguru Hatazawa, Takahiro Kakuta, Tomoki Ogoshi, Kenichi Umeda, Noriyuki Kodera, Hitoshi Kurumizaka, and Mikihiro Shibata. High-Speed Atomic Force Microscopy Reveals the Nucleosome Sliding and DNA Unwrapping/Wrapping Dynamics of Tail-less Nucleosomes, Nano Letters ,2024.
DOI: 10.1021/acs.nanolett.4c00801https://pubs.acs.org/doi/10.1021/acs.nanolett.4c00801 
https://nanolsi.kanazawa-u.ac.jp/wp/wp-content/uploads/Figure-1-12.png Figure 1.
High-speed atomic force microscopy visualization of nucleosome dynamics with canonical (top) and tail-less (bottom) histones.© 2024 American Chemical Society
ContactHiroe YonedaSenior Specialist in Project Planning and OutreachNanoLSI Administration Office, Nano Life Science Institute (WPI-NanoLSI)Kanazawa UniversityKakuma-machi, Kanazawa 920-1192, JapanEmail: [email protected]: +81 (76) 234-4555
About Nano Life Science Institute (WPI-NanoLSI), Kanazawa University
Understanding nanoscale mechanisms of life phenomena by exploring “uncharted nano-realms”
Cells are the basic units of almost all life forms. We are developing nanoprobe technologies that allow direct imaging, analysis, and manipulation of the behavior and dynamics of important macromolecules in living organisms, such as proteins and nucleic acids, at the surface and interior of cells. We aim at acquiring a fundamental understanding of the various life phenomena at the nanoscale.https://nanolsi.kanazawa-u.ac.jp/en/
About the World Premier International Research Center Initiative (WPI)
The WPI program was launched in 2007 by Japan’s Ministry of Education, Culture, Sports, Science and Technology (MEXT) to foster globally visible research centers boasting the highest standards and outstanding research environments. Numbering more than a dozen and operating at institutions throughout the country, these centers are given a high degree of autonomy, allowing them to engage in innovative modes of management and research. The program is administered by the Japan Society for the Promotion of Science (JSPS).
See the latest research news from the centers at the WPI News Portal: https://www.eurekalert.org/newsportal/WPI
Main WPI program site: www.jsps.go.jp/english/e-toplevel
About Kanazawa University
As the leading comprehensive university on the Sea of Japan coast, Kanazawa University has contributed greatly to higher education and academic research in Japan since it was founded in 1949. The University has three colleges and 17 schools offering courses in subjects that include medicine, computer engineering, and humanities.
The University is located on the coast of the Sea of Japan in Kanazawa – a city rich in history and culture. The city of Kanazawa has a highly respected intellectual profile since the time of the fiefdom (1598-1867). Kanazawa University is divided into two main campuses: Kakuma and Takaramachi for its approximately 10,200 students including 600 from overseas.http://www.kanazawa-u.ac.jp/e/
 
 
 

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Artificial Intelligence

Geek+ and System Teknik deploy first PopPick solution in the Nordics for the pharmacy group Med24.dk

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DUSSELDORF, Germany, April 24, 2024 /PRNewswire/ — Geekplus, the global leader in mobile robot and smart logistics solutions, has deployed the first Shelf-to-Person PopPick project in the Nordics for one of the biggest online pharmacy wholesalers in the region, Med24.dk. System Teknik partnered on the Denmark project, which includes three PopPick stations and 30 Shelf-to-Person robots, bringing a flexible solution to a region where fixed automation still dominates.  

“With the rise of e-commerce, Med24.dk had been struggling with huge sales growth coupled with fast delivery demands from customers in Denmark, Norway, Sweden searching for pharmacy, health and beauty products. Peak season events had also caused considerable strain to their operations,” said Blond Shkodrani, channel partner manager for the Nordics at Geekplus. “Due to their overwhelming success, Med24.dk needed a modular, automated order fulfillment solution for fast, efficient order fulfillment.”
The Geekplus modular Shelf-to-Person solution optimizes warehouse operations using mobile robots to transport shelves. In a region where fixed and cubic solutions have been the trend during recent years, Shelf-to-Person handles goods of all sizes while removing the need for infrastructure investment, making it the most flexible response to order fulfillment challenges.
PopPick workstations use two retrieval arms and four presentation locations to present pickers with multiple, moveable 78-tote racks at one time, resulting in an industry-leading throughput of 450 totes per hour. PopPick can store goods of all types and sizes; the solution is not limited to small pieces and improves ergonomics for workers while picking. It also takes up less space than traditional systems, so customers can use more stations without adding facility space.
“We are very pleased to invest in flooring robots from Geekplus,” said Med24.dk CEO Nils Træholt. “We believe that this new and innovative technology can help us realize our growth ambitions, while maintaining good delivery times for the benefit of our customers.”
Morten Kirch, System Teknik’s CSO, added: “Due to Med24.dk’s growth, we are thrilled to be able to deliver a tailor-made, automated solution that matches their needs.”
Geekplus offers a suite of Goods-to-Person mobile order fulfillment solutions — the only comprehensive robotic offering controlled by a single software platform.
“Through trusted partners like System Teknik, we’re showing customers all over Europe that Geekplus truly is a one-stop shop for modular warehouse automation,” Shkodrani said.
Photo – https://mma.prnewswire.com/media/2395198/Med24_Geekplus_PopPick.jpg Logo – https://mma.prnewswire.com/media/2373458/Geekplus_logo.jpg
 
 

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Artificial Intelligence

VdoCipher’s Video Piracy Tracker Engine Blocks 60,000+ Pirates on 700+ Platforms

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The company has global footprints across 120+ countries, serves over 10,000+ content creators, and educators across 3,000+ platforms
GURUGRAM, India, April 24, 2024 /PRNewswire/ — VdoCipher, a leading provider of video player and piracy protection solutions for content creators, e-learning, and media platforms, has announced significant success in combating video piracy with its latest innovation, the Piracy Tracker Engine. In just six months, this cutting-edge technology has blocked over 60,000 piracy attempts across 700+ content platforms, reinforcing VdoCipher’s commitment to safeguarding digital content and revenues.

For over eight years, VdoCipher has been pioneering DRM Encryption and Dynamic Watermark technologies, offering robust security solutions to content creators worldwide. Six months ago, the company introduced the Piracy Tracker and Hacker Identification Engine, aimed at identifying and blocking piracy attempts. This innovative solution targets various forms of piracy, including DRM breaches, credential sharing, and illegal clone applications.
VdoCipher, with a significant presence across the European market, serves over 10,000+ content creators across 3,000 platforms. Vibhav Sinha, CTO, VdoCipher, commented, “Every year we try to add an additional layer of technology to our security stack. Adding to strong Video DRM encryption, we now identify a combination of 12 viewer behavior patterns using our secure player. We provide an easy-to-use dashboard for our customers to get all piracy info. Some of the popular e-learning platforms have already made use of this tool to catch hackers, grow users, and enhance their revenues.”
The proliferation of internet video piracy tools poses a significant challenge, particularly in Europe. Recent statistics reveal that streaming accounted for 58% of piracy in the EU in 2022, with downloading comprising 32%. Top 10 popular global video downloaders have 110+ Million users.
Additionally, a report analyzing online piracy facts worldwide shows that Europeans have the biggest piracy problem (45.72%). In Italy, Spain, Portugal, Germany, UK and France, film piracy has soared during the Covid19 pandemic. Moreover, Telegram and other platforms have facilitated the widespread dissemination of pirated content, with hundreds of groups each having over 10,000 users leaking course videos.
In the past six months, VdoCipher’s Piracy Tracker Engine has yielded impressive results:
63,210 sessions blocked for potential piracy attempts.12,330 unique devices/IPs blocked.1,690 users were detected for credential misuse.384 user accounts proactively blocked based on piracy data.Legal actions were initiated against 5 users.Siddhant Jain, CEO of VdoCipher, emphasized, “One problem in online education and the content creator economy that no one talks about is video piracy. Video piracy robs creators of revenue but also robs students of learning from good-quality teachers. Teachers fear putting their best content online due to piracy; so ultimately, it also harms the student community. At VdoCipher, with our video hosting solutions, it is our mission to bring more educators and content creators online by ensuring that they do not lose revenues due to online piracy; at the same time, viewers across the globe have the best viewing experience.”
Contact: Siddhant [email protected]
Logo: https://mma.prnewswire.com/media/2394780/VdoCipher_Logo.jpg
 

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