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omniQ Launches SeeCube™; Safe City/ Safe District Vehicle Make and Color Recognition Solution Utilizing AI and Advanced Image Processing Algorithm

  • Cloud-Based and Patented SeeCube™ Solution Utilizes Machine Learning to Improve Security Capabilities;
  • Aids Law Enforcement in the Prevention of Crimes and Capture of Criminals Attempting Escape By Altering or Removing the License Plate

Salt Lake City, UT, August 23, 2019 — omniQ, Inc., via its omniQ division, has begun deploying its Artificial Intelligence (“AI”)-based, patented SeeCube203.972.9200203.972.9200solution utilizing its Visual Cortex algorithm, a revolutionary vehicle recognition system that combines vehicle make and color recognition capabilities with license plate number recognition technology.

SeeCube is a ground breaking cloud/on premise based security solution for Safe City and Safe Campus/School applications, using unique AI-based computer vision technology and software to gather real-time vehicle make and model data to supplement license plate identification capabilities to prevent crimes and terrorists from escaping by changing or removing the license plate.

Shai Lustgarten, CEO of omniQ stated, “SeeCuberepresents game changing technology for the security industry, particularly applicable to the Safe City and Safe Campus/School initiatives that are being rolled out in communities worldwide.  There is a dire need to supplement and expand upon the ability to gather and process license plate numbers, as license plates can easily be altered or removed from vehicles altogether.  Furthermore, bystanders who witness a crime are seldom able to fully recall a vehicle’s license plate number, but can often accurately report make and model details.  SeeCubecaptures and records all of the vehicle characteristics, including the make, model year and color, in addition to the license plate information, to enable law enforcement and homeland security to more quickly and accurately identify and track a vehicle, even if the license plate has been altered or removed.”

The SeeCubefeature was recently successfully tested by Homeland Security in a high-risk area outside of the United States, where it allowed law enforcement agencies to successfully search for and create BOLO alerts for suspect vehicles based on knowledge of make and/or color only.

Mr. Lustgarten continued, “Our safety systems are operational in some of the most sensitive regions of the world and have proven to be an essential tool in crime prevention and in getting criminals behind bars more rapidly.  We provide essential intelligence to law enforcement and homeland security organizations based on the most sophisticated AI and machine learning technology, and believe that SeeCube will be a vital tool for the growing Safe City and Safe School movement.  We’re excited about the opportunities we’re seeing to bring our solution to a wide range of customers, improving safety for students as well as the public at large.”

About omniQ

omniQ’s Image Processing subsidiary is a leading provider of computer vision image processing-based solutions using patented and proprietary AI technology to provide real-time surveillance and monitoring for homeland security, traffic & parking management, law enforcement and access control applications as well as supply chain management.

Rated in the Top 1% of global solution providers, omniQ specializes in the design, deployment and management of enterprise mobility solutions including Automatic Identification and Data Capture (AIDC), Mobile Cloud Analytics, RFID (Radio Frequency Identification), and proprietary Mobility software. Our mobility products and services offering is designed to identify, track, trace, share and connect data to enterprise systems such as CRM or ERP solutions. Our customers are leading Fortune 500 companies from several sectors including manufacturing, retail, distribution, food / beverage, transportation and logistics, health care and chemicals/gas/ oil.

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 “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 fu203.972.9200ture 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 omniQ, Inc.’s products, 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 marke203.972.9200ts, 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, risks related to the sale of omniQ Canada Inc. to Viascan Group Inc. and other information that may be detailed from time-to-time in omniQ Inc.’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, Inc. please refer to the Company’s recent Securities and Exchange Commission filings, which are available at http://www.sec.gov. omniQ, Inc. 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:
John Nesbett/Jen Belodeau
IMS Investor Relations
203.972.9200
jnesbett@institutionalm203.972.9200s.com

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Blog News

omniQ Achieves Record First Half Results; Revenues Increase 13% to $32.7M and Gross Profit Increases 37% to Record $8.2M

• First half gross margin of 25% up from 21% margin in the first half of 2018
• First half adjusted EBITDA grew by 76% to $1.5M
• Q2 EBITDA of $0.5M compared to EBITDA loss of $1.6M in Q2 2018
• Shareholders’ Equity climbs to record $5.5M
• Israeli-developed machine vision technology creates major breakthrough to Public Safety projects in the U.S.

SALT LAKE CITY, Aug. 06, 2019 (GLOBE NEWSWIRE) — omniQ, Inc. (QUES) (“omniQ” or “the Company”), a provider of Supply Chain and Artificial Intelligence (AI)-based solutions, announced its record financial results for the three and six month periods ended June 30, 2019.

Shai Lustgarten, CEO, commented, “2019 is shaping up to be a record and breakthrough fiscal year for omniQ.  In the first half of the year we achieved over $32.7M in sales, a 13% growth over the first six months of 2018 and during the second quarter we delivered substantially enhanced record gross margin of 26% up from 21% in the same quarter last year, reflecting the shift in our revenue mix towards higher margin AI- Machine Vision solutions. This in turn was reflected in record gross profits of $8.2M.”

Mr. Lustgarten continued, “We’re also delighted to be back on current filing schedules. This reflects our increasing focus and commitment to timely filings that will set the regulatory stage for us to up-list to a national exchange, hopefully in the near future.

“Our AI-Machine Vision and supply chain capabilities provide a solid platform for the growth of our Company.  Following the close of the second quarter we announced the award of the first order for our Visual Cortex Yard Management System, from one of the world’s largest food companies.  This is a breakthrough order for omniQ, as the project is our first stand-alone implementation of our AI-Machine Vision technology for the multi-billion-dollar supply chain industry.  The order is for a system that integrates automatic access control and truck identification with the customer’s logistics management center.  We’re excited that our solution was selected, and we believe this order demonstrates the value of our AI technology and its ability to play an integral role as customers look to automate and improve the speed and accuracy of the supply chain process.”

Mr. Lustgarten continued, “We are seeing strong interest in our AI technology for use in Homeland Security projects for cities and sensitive areas, and, on a more local level, for the protection and safety of public venues such as schools and religious facilities.  Our technology provides image processing and pattern recognition capabilities that are the backbone of solutions designed to identify threats and relay valuable information to law enforcement in real-time.  In the U.S. and worldwide, the demand for 24/7, real-time security applications is rapidly growing.  In addition to keeping people safe, our technology can be used in applications such as parking automation that enhance the consumer experience and reduce overhead costs for operators.”

Second Quarter 2019 Overview
omniQ reported revenues of $14.1 million for the quarter ended June 30, 2019 as compared to $13.8 million in the comparable 2018 period. The revenue increase for the quarter was primarily related to continuing strong execution by the Company’s sales team and growing customer relationships, as well as the revenue contribution from omniQ’s new subsidiary omniQ Image Processing.  Gross margin in the quarter increased to 26% compared to 21% in the prior year period.  Total operating expenses of $3.8 million were consistent with second quarter 2018.

Net loss for the quarter was $0.5 million, or a loss of $0.01 per basic share compared to a loss of $2.4 million, or a loss of $0.06 for the second quarter of last year.  The Company achieved second quarter EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) of $0.5 million, a significant improvement compared to an EBITDA loss of $1.6 million in the second quarter of 2018.  Adjusted EBITDA for the second quarter of 2019 increased to $0.5 million compared to $0.3 million in the second quarter of 2018.

First Six Months 2019 Overview
omniQ reported revenues of $32.7 million for the first six months of 2019, an increase of 13% compared to the first six months of 2018.  The revenue increase was primarily related to continued strong execution by the Company’s sales team and growing customer relationships, as well as the revenue contribution from omniQ’s new subsidiary omniQ Image Processing, as described above. Gross margin in the quarter increased to 25% compared to 21% in the same prior year period.  Total operating expenses for the first half of 2019 were $8.3 million compared to $7.6 million in the first half of 2018.  The increase in operating expense was largely related to the Company’s acquisition.

Net loss for the first six months of 2019 was $1.2 million, or a loss of $0.02 per basic share compared to a loss of $3.4 million, or a loss of $0.08 for the first six months of 2018.  EBITDA in the first half of 2019 was $1.1 million, a significant improvement as compared to an EBITDA loss of $1.8 million in the first half of 2018.  Adjusted EBITDA for the first half of 2019 increased substantially to $1.6 million compared to $0.9 million in the first half of 2018.

Please refer to the financial tables included below for a reconciliation of generally accepted accounting principles in the United States (“GAAP”) to non-GAAP financial results.

Mr. Lustgarten concluded, “This is an exciting time for omniQ as we focus on leveraging our enhanced technological capabilities and established customer base to capture additional market share and grow our position as a provider of AI-based and supply chain solutions.  We’re energized by the interest and opportunities we’re seeing around our Machine Vision solutions and we believe our AI-technology solutions enhance our value-add proposition for customers positioning us well for continued revenue growth with improved margins.”

Conference Call Information

The Company will host a conference call and webcast to discuss the second quarter results tomorrow, Wednesday August 7 at 11:00 a.m. Eastern Time.

To access the live webcast, go to the omniQ website at www.questsolution.com, and click on the Investor Relations tab.

To participate in the call by phone, dial (877) 407-9210 approximately five minutes prior to the scheduled start time. International callers please dial (201) 689-8049.

A replay of the teleconference will be available until September 7, 2019 and may be accessed by dialing (877) 481-4010. International callers may dial (919) 882-2331.  Callers should use conference ID: 52847.

About omniQ
omniQ’s Image Processing subsidiary is a leading provider of computer vision image processing-based solutions using patented and proprietary AI technology to provide real-time surveillance and monitoring for homeland security, traffic & parking management, law enforcement and access control applications as well as supply chain management.

Rated in the Top 1% of global solution providers, omniQspecializes in the design, deployment and management of enterprise mobility solutions including Automatic Identification and Data Capture (AIDC), Mobile Cloud Analytics, RFID (Radio Frequency Identification), and proprietary Mobility software. Our mobility products and services offering are designed to identify, track, trace, share and connect data to enterprise systems such as CRM or ERP solutions. Our customers are leading Fortune 500 companies from several sectors including manufacturing, retail, distribution, food / beverage, transportation and logistics, health care and chemicals/gas/ oil.

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 “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 omniQ, Inc.’s products, 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, risks related to the sale of omniQ Canada Inc. to Viascan Group Inc. and other information that may be detailed from time-to-time in omniQ Inc.’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, Inc. please refer to the Company’s recent Securities and Exchange Commission filings, which are available at http://www.sec.gov. omniQ, Inc. 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:
John Nesbett/Jen Belodeau
IMS Investor Relations
203.972.9200
jnesbett@institutionalms.com

OMNIQ, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(UNAUDITED)

(In thousands, except share and per share data) For the three months For the six months
ending June 30, ending June 30,
2019 2018 2019 2018
Revenues
Total Revenues $ 14,126 $ 13,777 $ 32,746 $ 28,958
Cost of goods sold
Cost of goods sold 10,499 10,928 24,522 22,943
Gross profit 3,627 2,849 8,244 6,015
Operating expenses
General and administrative 525 560 1,214 1,037
Salary and employee benefits 2,208 2,259 5,063 4,861
Depreciation and amortization 541 435 1,084 873
Professional fees 543 513 958 805
Total operating expenses 3,817 3,767 8,319 7,576
Loss from operations (190) (918) (95) (1,561)
Other income (expenses):
Interest expense (467) (365) (1,151) (660)
Other (expenses) income 127 (1,127) 81 (1,124)
Total other expenses (340) (1,492) (1,070) (1,784)
Net Loss Before Income Taxes (530) (2,410) (1,165) (3,345)
Provision for Income Taxes
Current (45) (59)
Total Provision for Income Taxes (45) (59)
Net Loss attributable to omniQ Inc. $ (530) $ (2,455) $ (1,165) $ (3,404)
Less: Preferred stock – Series C dividend (47) (46) (94) (95)
Net loss attributable to the common stockholders $ (577) $ (2,501) $ (1,259) $ (3,499)
Net (loss) per share – basic $ (0.01) $ (0.06) $ (0.02) $ (0.08)
Weighted average number of common shares outstanding – basic 82,547,400 41,856,966 77,091,278 42,099,171

OMNIQ, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)

(In thousands, except share and per share data) As of
June 30, 2019 December 31, 2018
ASSETS
Current assets
Cash and cash equivalents $ 2,705 $ 378
Accounts receivable, net 10,967 12,262
Inventory 1,219 1,804
Prepaid expenses 288 169
Other current assets 179 78
Total current assets 15,358 14,690
Property and equipment, net of accumulated depreciation of $2,470 and $2,037, respectively 351 389
Goodwill 13,921 13,921
Trade name, net of accumulated amortization of $2,759 and $2,585, respectively 1,631 1,805
Customer relationships, net of accumulated amortization of $5,827 and $5,076, respectively 6,763 7,514
Other intangibles, net of accumulated amortization of $109 and $33, respectively 1,208 1,267
Cash, restricted 532 532
Other assets 383 31
Total assets $ 40,147 $ 40,148
LIABILITIES AND STOCKHOLDERS EQUITY
Current liabilities
Accounts payable and accrued liabilities $ 20,397 $ 17,484
Accrued interest and accrued liabilities, related party 27
Line of credit 878 4,534
Accrued payroll and sales tax 1,750 2,173
Notes payable, related parties – current portion 1,552 1,891
Notes payable – current portion 6,546 8,823
Other current liabilities 1,284 265
Total current liabilities 32,434 35,170
Long term liabilities
Notes payable, related party, less current portion 1,365 1,912
Accrued interest and accrued liabilities, related party 33
Notes payable, less current portion 140 130
Other long-term liabilities 691 610
Total liabilities 34,630 37,855
Stockholders equity
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; 15,000,000 shares designated, 4,828,530 and 4,828,530 shares issued and outstanding, respectively 5 5
Common stock; $0.001 par value; 200,000,000 shares authorized; 77,009,547 and 71,931,693 shares issued and outstanding, respectively. 77 72
Common stock; $0.001 par value; 11,084,657 shares to be received (2,616)
Common stock to be repurchased by the Company (230)
Additional paid-in capital 46,446 44,814
Accumulated (deficit) (41,012) (39,753)
Accumulated other comprehensive loss 1 1
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Blog News

omniQ To Host Conference Call To Discuss Second Quarter 2019 Results

Salt Lake City, UT, August 2, 2019 — omniQ, Inc. (OTCQB: QUES) (“omniQ” or “the Company”), a provider of Supply Chain and Artificial Intelligence (AI)-based solutions, will host a conference call and webcast on Wednesday, August 7, 2019 at 11:00 a.m. Eastern Time to discuss the Company’s results for the second quarter and six months ended June 30, 2019.

To access the live webcast, go to the omniQ website at www.questsolution.com, and click on the Investor Relations tab.

To participate in the call by phone, dial (877) 407-9210 approximately five minutes prior to the scheduled start time. International callers please dial (201) 689-8049.

A replay of the teleconference will be available until September 7, 2019 and may be accessed by dialing (877) 481-4010. International callers may dial (919) 882-2331. Callers should use conference ID: 52847.

About omniQ
omniQ’s Image Processing subsidiary is a leading provider of computer vision image processing-based solutions using patented and proprietary AI technology to provide real-time surveillance and monitoring for homeland security, traffic & parking management, law enforcement and access control applications as well as supply chain management.

Rated in the Top 1% of global solution providers, omniQ specializes in the design, deployment and management of enterprise mobility solutions including Automatic Identification and Data Capture (AIDC), Mobile Cloud Analytics, RFID (Radio Frequency Identification), and proprietary Mobility software. Our mobility products and services offering is designed to identify, track, trace, share and connect data to enterprise systems such as CRM or ERP solutions. Our customers are leading Fortune 500 companies from several sectors including manufacturing, retail, distribution, food / beverage, transportation and logistics, health care and chemicals/gas/ oil.

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 “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 omniQ, Inc.’s products, 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, risks related to the sale of omniQ Canada Inc. to Viascan Group Inc. and other information that may be detailed from time-to-time in omniQ Inc.’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, Inc. please refer to the Company’s recent Securities and Exchange Commission filings, which are available at http://www.sec.gov. omniQ, Inc. 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:
John Nesbett/Jen Belodeau
IMS Investor Relations
203.972.9200
jnesbett@institutionalms.com

Categories
Blog News

omniQ Announces the U.S. Launch of AI-Based Smart Ticketless Parking Solution

  • omniQ will provide Artificial Intelligence (AI)-Based Machine Vision Technology to fully automate the parking experience
  • Concept adds flexibility and convenience to the parking experience; similar to on-demand car service model
  • North America smart parking market is expected to reach $4.11 Billion by 2025*
  • Recurring revenue model expected to generate higher margins and return.

SALT LAKE CITY, April 02, 2019 (GLOBE NEWSWIRE) — omniQ, Inc. (QUES), (“omniQ” or “the Company”) a provider of Supply Chain and Artificial Intelligence (AI)-based Machine Vision solutions, today announced the U.S. launch of its AI-based Machine Vision Automatic Vehicle Recognition solution for the full automation of ticketless “smart” parking services.

The omniQ technology, coupled with a parking service platform, enables drivers of registered vehicles to find and pay for parking before a trip or while travelling. Any driver or car registered on a parking service network that accesses a lot or garage powered by omniQ’s Artificial Intelligence Vehicle Recognition System (VRS) technology solution will automatically be recognized as an authorized user of the parking service and the driver won’t need to open an app, show an ID or physically pay for a ticket. The omniQ technology creates a convenient, fast and effortless way for drivers to access and pay for parking.

omniQ is already implementing this solution in Israel and the Company expects to begin piloting this technology on the West Coast of the United States during spring 2019 and intends to continue the rollout to thousands of parking locations over the next year. Registered users across the U.S. and Canada will have access to the transactional parking network through web-powered parking reservations that offer drive-up, effortless parking.

omniQ, thorough it’s fully owned subsidiary omniQ, is a leader in providing proprietary patented Artificial Intelligence – Machine Learning Based Vehicle Recognition Systems including LPR (License Plate Recognition) and recently announced Color, Make and Model capabilities.  In addition to Parking Automation, omniQ provides its unique solutions for use in Safe Districts for anti-terrorism and law enforcement, Safe and Smart City projects, School Safety, Secured Facilities, Logistics Centers, Seaports and others which operate using installed cameras and computers to capture and decipher license plate data as well as vehicle color and make.

Shai Lustgarten, CEO of omniQ, stated, “omniQ is a proven provider of innovative AI Technology for the automation of parking, homeland security and law enforcement applications and we’re excited to have this opportunity to introduce further innovation to the multi-billion dollar Smart Parking market.  We believe our solution, when combined with parking service platforms, has the potential to impact the parking industry similar to the way Uber transformed transportation alternatives and Open Table innovated the restaurant business. Smart parking will revolutionize the way drivers can find and access available parking and omniQ’s VRS capabilities will make it faster and easier for registered users to park and pay by eliminating the need to stop to make a payment upon arrival or exit from a parking facility.  omniQ’s Machine Vision solutions are currently being used at several U.S. airports including JFK, La Guardia, Newark, Miami, Dulles, DFW and many others. We’re excited to be pioneering the introduction of technology that enables the smart parking revolution.”

 (*)Grand View Research Inc. (November 2017)
https://www.grandviewresearch.com/press-release/north-america-smart-parking-market-analysis

About omniQ

omniQ Solution is a Specialty Systems Integrator focused on Field and Supply Chain Mobility as well as a provider of Artificial Intelligence (AI) monitoring and surveillance solutions. Additionally the Company is a manufacturer and distributor of consumables (labels, tags, and ribbons), RFID and IoT solutions, and barcoding printers. Founded in 1994, Quest is headquartered in Salt Lake City, Utah with sales offices located across the United States as well as Israel.

Rated in the Top 1% of global solution providers, omniQ specializes in the design, deployment and management of enterprise mobility solutions including Automatic Identification and Data Capture (AIDC), Mobile Cloud Analytics, RFID (Radio Frequency Identification), and proprietary Mobility software. Our mobility products and services offering is designed to identify, track, trace, share and connect data to enterprise systems such as CRM or ERP solutions. Our customers are leading Fortune 500 companies from several sectors including manufacturing, retail, distribution, food / beverage, transportation and logistics, health care and chemicals/gas/oil.

Information about Forward-Looking Statements
“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995. Statements in this press release relating to our competitive position in this growing market and our ability to optimize our opportunities for growth 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 including expectations regarding billing of products, our ability to add new customer relationships and strengthen our existing partnerships. The words “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 omniQ, Inc.’s products, 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 and other information that may be detailed from time-to-time in omniQ Inc.’s filings with the United States Securities and Exchange Commission. Examples of such forward looking statements in this release include, among others, statements regarding omniQ’s position in this growing market and our ability to optimize our opportunities for growth.  For a more detailed description of the risk factors and uncertainties affecting omniQ, Inc. please refer to the Company’s recent Securities and Exchange Commission filings, which are available at http://www.sec.gov. omniQ, Inc. 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:
John Nesbett/Jen Belodeau
IMS Investor Relations
(203) 972-9200
jnesbett@institutionalms.com

Categories
Blog News

omniQ in the News – AI Stands Guard for the Future: How AI Is Being Used in Security

Excerpt from Investorideas.com Article

Investorideas.com, a global investor news source covering security and Artificial Intelligence issues a special edition of The AI Eye, looking at how AI is playing a significant role in the future of security.

As AI technology is optimized and becomes more available, its implementation into both cyber and real-world security is fast becoming a necessity in staying ahead of future threats. AI has many obvious uses in the world of cybersecurity but that doesn’t mean it can’t be applied to real world security situations just as well.

omniQ, Inc. a provider of Supply Chain and Artificial Intelligence (AI)-based Machine Vision solutions, announced that it was selected to install a state-of-the-art AI-based safety and security system on the campus of a Pre-K – 12 preparatory School in South Florida. This system will provide enhanced safety for students, faculty and visitors to the school. For safety reasons the name of the school is not disclosed.

The omniQ Safe School System is based on technology from omniQ’s recently acquired subsidiary omniQ Image Processing and offers real-time, automated vehicle recognition via machine vision. In a school setting, the system is hosted on a cloud-based platform integrated with campus intelligence, tracking vehicles, students, staff, deliveries and campus visitors. The Safe School System has whitelist and blacklist capabilities to immediately identify vehicles upon arrival, allowing the admittance of authorized cars or a real-time alarm for any unauthorized and/or suspicious vehicle.

AI implementation is fast becoming a necessary security feature, as large tech firms such as Palo Alto Networks Inc. and Microsoft Corp. are showing, which is good news for customers and consumers as these new features allow for tireless protection in an age of information fatigue.

Read Full Article –>

Categories
Blog News Transportation and Logistics

omniQ Awarded a U.S. Patent for Cloud-Based Automatic License Plate Recognition (ALPR) Management

  • Cloud enables scalable growth and quicker deployment
  • Enables faster response to School Safety issues
  • Cloud-based patent follows U.S. patent for color, make and model capabilities announced in January 2019

SALT LAKE CITY, March 13, 2019 (GLOBE NEWSWIRE) — omniQ, Inc. (OTCQB: QUES), (“omniQ” or “the Company”) a provider of Supply Chain and Artificial Intelligence (AI)-based Machine Vision solutions, announced that its omniQ Image Processing, Inc. wholly-owned subsidiary has been awarded a patent from the U. S. Patent Office for a patent titled “Cloud-Based ALPR Management”. The patent covers the Company’s new cloud-based architecture for the deployment of LPR/ALPR systems.

omniQ is a leader in providing Artificial Intelligence – Machine Learning Based Vehicle Recognition Systems including LPR (License Plate Recognition)/ANPR and recently announced Color, Make and Model capabilities. omniQ provides its unique solutions for use in Safe Districts for anti-terrorism and law enforcement, Safe and Smart City projects, School Safety, Secured Facilities, Logistics Centers, Seaports, Parking Automation, and others which operate using installed cameras and computers to capture and decipher license plate data as well as vehicle color and make.

This patent simplifies the deployment and infrastructure in LPR/ANPR systems, by using a cloud-based architecture rather than the traditional use of physical locally installed hardware. The cameras upload images to the cloud, where the omniQ AI-Based Visual Cortex™ algorithm on Cloud servers performs the recognition and control process, then the cloud-based management system completes the cycle.

Advantages of the cloud-based solution include: unlimited uploading of the system enabling accelerated growth, a lower cost of hardware at the facility, more flexible and scalable systems, increased reliability, shorter turnaround cycles for updates, and improved control and support.

Shai Lustgarten, CEO of omniQ, stated, “We believe that this patented solution combined with our recently announced patented feature which identifies color, make and model, gives us strong competitive positioning in this growing market. The patent award demonstrates the strength and sophistication of our R&D team’s efforts in delivering leading edge technology. LPR/ANPR capabilities have revolutionized the estimated $10 billion parking industry and we are focused on continuing to develop and deploy solutions that are broadly effective and applicable within this growing market vertical so that we may optimize our opportunities for growth.”

About omniQ
omniQ is a Specialty Systems Integrator focused on Field and Supply Chain Mobility as well as a provider of Artificial Intelligence (AI) monitoring and surveillance solutions. Additionally the Company is a manufacturer and distributor of consumables (labels, tags, and ribbons), RFID and IoT solutions, and barcoding printers. Founded in 1994, Quest is headquartered in Salt Lake City, Utah with sales offices located across the United States as well as Israel.

Rated in the Top 1% of global solution providers, omniQ specializes in the design, deployment and management of enterprise mobility solutions including Automatic Identification and Data Capture (AIDC), Mobile Cloud Analytics, RFID (Radio Frequency Identification), and proprietary Mobility software. Our mobility products and services offering is designed to identify, track, trace, share and connect data to enterprise systems such as CRM or ERP solutions. Our customers are leading Fortune 500 companies from several sectors including manufacturing, retail, distribution, food / beverage, transportation and logistics, health care and chemicals / gas / oil.

Information about Forward-Looking Statements
“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995. Statements in this press release relating to our competitive position in this growing market and our ability to optimize our opportunities for growth 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 including expectations regarding billing of products, our ability to add new customer relationships and strengthen our existing partnerships. The words “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 omniQ, Inc.’s products, 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 and other information that may be detailed from time-to-time in omniQ Inc.’s filings with the United States Securities and Exchange Commission. Examples of such forward looking statements in this release include, among others, statements regarding omniQ’s position in this growing market and our ability to optimize our opportunities for growth. For a more detailed description of the risk factors and uncertainties affecting omniQ, Inc. please refer to the Company’s recent Securities and Exchange Commission filings, which are available at http://www.sec.gov. omniQ, Inc. 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:
John Nesbett/Jen Belodeau
IMS Investor Relations
203.972.9200
jnesbett@institutionalms.com

Categories
Blog News Transportation and Logistics Warehouse and Distribution

omniQ Awarded $7 Million Project From Leading U.S. Supply Chain & Logistics Firm

  • Existing Customer increasing its business with omniQ from $700,000 in 2018
  • Potential candidate for omniQ’s Artificial Intelligence solutions

SALT LAKE CITY, March 06, 2019 (GLOBE NEWSWIRE) — omniQ, Inc. (OTCQB: QUES), (“omniQ” or “the Company”) a provider of Supply Chain and Artificial Intelligence (AI)-based Machine Vision solutions, announced it has been awarded a project from a leading supply chain and logistics provider in the U.S. for the supply of vehicle mounted rugged computers for the collection of sophisticated data and logistics management. The project is valued at $7 million, with $5 million expected to be billed during fiscal year 2019 and the balance in 2020.

Shai Lustgarten, CEO of omniQ, stated, “We are excited to significantly expand our relationship with a valued customer who is well respected in the supply chain and logistics industry. Our high-tech, in-vehicle computers play an important role in increasing operational efficiencies as well as collecting valuable data for quicker and more accurate decision making. This customer is also a potential candidate for our AI-based Yard Management Solutions, currently being used in seaports worldwide. Our comprehensive portfolio of solutions includes data collection devices like rugged tablets and computers, high-level software and proprietary Artificial Intelligence (AI) capabilities, all of which enable firms operating in the multi-billion dollar supply chain industry access to big data analysis. We look forward to adding new customer relationships and strengthening our existing partnerships by providing solutions that promote the capture of critical data for the development of effective strategies.”

About omniQ
omniQ is a Specialty Systems Integrator focused on Field and Supply Chain Mobility. We are also a manufacturer and distributor of consumables (labels, tags, and ribbons), RFID solutions, and barcoding printers. Founded in 1994, Quest is headquartered in Eugene, Oregon, with offices in the United States.

Rated in the Top 1% of global solution providers, omniQ specializes in the design, deployment and management of enterprise mobility solutions including Automatic Identification and Data Capture (AIDC), Mobile Cloud Analytics, RFID (Radio Frequency Identification), and proprietary Mobility software. Our mobility products and services offering is designed to identify, track, trace, share and connect data to enterprise systems such as CRM or ERP solutions. Our customers are leading Fortune 500 companies from several sectors including manufacturing, retail, distribution, food / beverage, transportation and logistics, health care and chemicals/gas/ oil.

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 including expectations regarding billing of products, our ability to add new customer relationships and strengthen our existing partnerships. The words “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 omniQ, Inc.’s products, 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, risks related to the sale of omniQ Canada Inc. to Viascan Group Inc. and other information that may be detailed from time-to-time in omniQ Inc.’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, Inc. please refer to the Company’s recent Securities and Exchange Commission filings, which are available at http://www.sec.gov. omniQ, Inc. 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:
John Nesbett/Jen Belodeau
IMS Investor Relations
203.972.9200
jnesbett@institutionalms.com

Categories
Blog News

omniQ Appoints Scientific Luminary and Technology Thought Leader to Advisory Board To Support Company’s Disruptive AI and Big Data Strategy

– Professor Mina Teicher is Former Chief Scientist of Israeli Government –

– Yair Grinberg Is The Technological Mind Behind Multiple Innovations And A Proven Business Leader –

SALT LAKE CITY, Jan. 10, 2019 (GLOBE NEWSWIRE) — omniQ, Inc. (OTCQB: QUES), (“omniQ” or “the Company”) a provider of Supply Chain and Artificial Intelligence (AI)-based Machine Vision solutions, has announced the creation of an Advisory Board to intellectually supercharge the Company’s strategic growth as a leading provider of technology solutions. Professor Mina Teicher and Mr. Yair Grinberg have been appointed as inaugural members of the advisory board.

Among her many achievements Professor Teicher has served as the former Chief Scientist of the Israeli government, Chair of the Innovation group for Future and Emerging Technologies of the European Commission and Vice-President of the UNESCO Complex Systems Digital Campus.

Currently, Professor Teicher serves as a leading member of numerous scientific institutions, including the USA Brain Initiative, Chair of the Israel National Committee for International R&D, Director of the Emmy Noether Research Institute at Bar-Ilan University, and on the advisory boards for several U.S.-based startup companies focused on AI, Blockchain and Cyber Security.

Ms. Teicher is a Professor of Mathematics and Neural-Computation whose work spans several academic domains, including Computer Vision, Cryptography and Cyber Security. Professor Teicher is credited for the establishment of the largest Brain Research Institute in Israel, is the author of more than 140 refereed journal publications, 40 manuscripts and 5 books, and has been an invited lecturer at more than 100 international conferences, seminars and colloquia at leading universities such as Harvard, Princeton, University of Pennsylvania and the University of California Berkeley.

Mr. Grinberg is the lead technological mind behind a number of innovators and market leaders in a broad spectrum of industries. Among others, Yair served as the CEO of SofaWare, the inventor of Enterprise-class HW-based security solutions, which was acquired by Check Point Software Technologies, Ltd., the global leader in SW-based security solutions. As a Vice President at Amdocs, the world’s leading provider of software support systems for Communications and Media companies, he led the company’s entry into the Network Management sector. Mr. Grinberg also served as the founding CTO for Rada, an innovative defense electronics developer of specialized airborne and ground data acquisition and analysis systems for uniquely demanding environments. He currently provides strategic consulting to some of the world’s leading technology companies and venture funds, in cutting edge domains such as Quantum communications and the utilization of Quantum-inspired algorithmic breakthroughs for the acceleration of Machine Learning processes.

Shai Lustgarten, CEO at omniQ, commented, “We’re excited to announce the formation of our advisory board and proud to appoint two distinguished memb203.972.9200ers with vast scientific and technological credits. We believe Professor Teicher and Mr. Grinberg will make important contributions to the development of our strategies and to ensure we continue to improve and deliver our exceptional AI product offering going forward. The Smart and Safe City segment represents a $1 trillion opportunity for our Company, while Supply Chain Management represents a $13 billion opportunity and the addition of these two esteemed advisory board members positions omniQ to grow our marketplace recognition and capture market share in these significant and growing verticals.”

Professor Teicher commented: “omniQ presented to the market an innovative AI model based on Neural Networks and Machine Learning which achieved impressive machine vision results. This technology combined with current activities position omniQ at an exciting point in its development as a leading provider of solutions utilizing AI technology. I’m very pleased to have this opportunity to assist the Company as it amplifies its capabilities related to AI and Big Data for both Smart/Safe City and Supply Chain applications. I look forward to working with the management team to help leverage omniQ’s existing solutions and in the identification and development of new solutions for their addressable markets,”

Mr. Grinberg added, “I am honored and excited to join forces with Professor Teicher. The fusion of the Advisory Board’s expertise and Quest’s unique combination of innovative management, technology and market positioning creates a powerful market offering. omniQ’s 5,000+ AI-driven recognition cameras, for example, installed in strategic traffic monitoring locations across North America generate a wealth of data daily. Harnessing this data utilizing automated inference mechanisms can very rapidly transform the company into a high-value data powerhouse.”

Investor Contact:
John Nesbett/Jen Belodeau
IMS Investor Relations
203.972.9200
jnesbett@institutionalms.com

Categories
Blog News

omniQ Reports $42M in Revenue for First Nine Months of 2018

  • Sales up by approximately 4%
  • Cost savings of $0.7M or 29% in salary and employee benefits compared to Q3 2017
  • Higher margin outlook due to acquisition and new Artificial Intelligence (AI) solutions
  • Nine-month Adjusted EBITDA increased to $1.5M

EUGENE, Ore., November 20, 2018 (GLOBE NEWSWIRE) — omniQ, Inc. (QUES) (“omniQ” or “the Company”), a provider of Supply Chain and Artificial Intelligence (AI)-based solutions, announced its financial results for the three and nine-month periods ended September 30, 2018.

Shai Lustgarten, CEO, commented, “We are pleased to have delivered a solid third quarter, reflected in 3.6% organic growth, increased adjusted EBITDA and a strong order backlog that we believe will drive continued momentum through the end of 2018 and into 2019.  In an exciting development after the close of the quarter, we announced the acquisition of omniQ Image Processing, which adds patented AI technology to our portfolio of solutions, positioning us to take advantage of new opportunities in the marketplace.   In addition to sales growth in the third quarter, we continued to execute our turnaround plan and reduced our total operating expense by $0.3M or 10% as compared with the third quarter of 2017.  This included a reduction of approximately $0.7M or 29% in salary and benefits.  We remain focused on servicing our Fortune 500 customers with our industry-tailored, end-to-end solutions that intelligently connect people, assets and data to help our customers make business-critical decisions.

“Our acquisition of omniQ Image Processing significantly expands our capabilities to include AI technology solutions for use by our current blue chip customers as well as by new customers from growing verticals like Security, Safe City, Traffic Management, Parking automation, Surveillance and Access Control.  The acquired AI technology is capable of machine recognition and data recording of invaluable information for managerial and marketing decision making. As the AI solutions are mainly based on sophisticated software, our new mix of products and solutions should increase our margins and generate profitability.  omniQ brings several existing Homeland Security anti-terror projects and discerning customers and users including: the Brookhaven National Laboratory (for access control), JFK Airport, Newark Airport, La Guardia Airport, Boston’s Logan Airport, the U.S. Department of Transportation for readers at the US/Mexico border crossing, as well as a Middle Eastern Homeland Security authority for the automated monitoring of sensitive zones.”

Mr. Lustgarten concluded: “To date in 2018 we have made excellent progress, highlighted by debt reduction, significant expense reduction and the acquisition of industry leading AI technology.  With these developments we have transformed omniQ and we look forward to an exciting 2019, as we continue to drive innovation, efficiency and profitability.”

Financial Results:

omniQ reported revenues of $13.4 million for the quarter ended September 30, 2018 as compared to $13.0 million in the comparable 2017 period.  The increase was primarily related to strong execution by the Company’s sales team and growing customer relationships.  Gross margin decreased to 20.1% in the third quarter of 2018, compared to 21.8% in the prior year period.   Total operating expenses for the third quarter of 2018 decreased 8.9% to $3.1 million, or 22.9% of revenue, compared to $3.4 million, or 26.1% of revenue, in the third quarter of 2017. The decrease in operating expenses was primarily related to a $0.7M reduction in salary and employee benefits expenses.

Net loss attributable to common stockholders of $0.98 million, or a loss of $0.02 per share, was consistent with the third quarter of 2017. Adjusted EBITDA (Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization) for the third quarter of 2018 was $0.4 million as compared to $0.3 million in the prior year.

For the nine months ended September 30, 2018, omniQ reported revenues of $42.4 million as compared to $40.9 million in the prior year period.  The increase was primarily related to strong execution by the Company’s sales team and growing customer relationships. Gross margin decreased to 20.5% as compared to 21.1% in the prior year period. Total operating expenses for the first nine months of 2018 increased 16.4% to $10.6 million, or 25.1% of revenue, compared to $9.1 million, or 22.3% of revenue, in the comparable 2017 period. The increase was primarily related to non-cash changes related to issuances under the Company’s new Equity Incentive Plan, increases in sales commissions related to revenue growth, and increased professional fees.

Net loss attributable to common stockholders was $4.5 million, or a loss of $0.11 per share on a nine-month basis, compared to a net loss of $1.8 million, or a loss of $0.05 per share, in the comparable 2017 period.  The increase in net loss was primarily related to non-cash changes related to issuances under the Company’s Equity Incentive Plan, increased professional fees, and the conversion of a debt instrument into common stock requiring the Company to recognize a non-cash loss on debt settlement in the amount of $1.3 million. Adjusted EBITDA for the first nine months of 2018 was $1.46 million compared to $1.4 million in the prior year.

Please refer to the financial tables included below for a reconciliation of generally accepted accounting principles in the United States (“GAAP”) to non-GAAP financial results. Please refer to the financial tables included below for a reconciliation of GAAP to non-GAAP results.

About omniQ
omniQ is a Specialty Systems Integrator focused on Field and Supply Chain Mobility as well as a provider of Artificial Intelligence (AI) monitoring and surveillance solutions. Additionally the Company is a manufacturer and distributor of consumables (labels, tags, and ribbons), RFID solutions, and barcoding printers. Founded in 1994, Quest is headquartered in Eugene, Oregon, with offices in the United States.

Rated in the Top 1% of global solution providers, omniQ specializes in the design, deployment and management of enterprise mobility solutions including Automatic Identification and Data Capture (AIDC), Mobile Cloud Analytics, RFID (Radio Frequency Identification), and proprietary Mobility software. Our mobility products and services offering is designed to identify, track, trace, share and connect data to enterprise systems such as CRM or ERP solutions. Our customers are leading Fortune 500 companies from several sectors including manufacturing, retail, distribution, food / beverage, transportation and logistics, health care and chemicals / gas / oil.

The Company’s omniQ Image Processing subsidiary is a leader computer vision image processing-based solutions using patented and proprietary AI technology to provide real-time surveillance and monitoring for homeland security, traffic & parking management, law enforcement and access control applications.

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 “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 omniQ, Inc.’s products, 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, risks related to the sale of omniQ Canada Inc. to Viascan Group Inc. and other information that may be detailed from time-to-time in omniQ Inc.’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, Inc. please refer to the Company’s recent Securities and Exchange Commission filings, which are available at http://www.sec.gov. omniQ, Inc. 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:
John Nesbett/Jen Belodeau
IMS Investor Relations
203.972.9200
jnesbett@institutionalms.com

omniQ, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(UNAUDITED)

For the three months

For the nine months

ending September 30,

ending September 30,

2018

2017

2018

2017

Revenues

Total Revenues $

13,444,167

$

12,964,054

$

42,368,904

$

40,886,754

Cost of goods sold

Cost of goods sold

10,745,156

10,132,067

33,687,461

32,263,124

Total costs of goods sold

10,745,156

10,132,067

33,687,461

32,263,124

Gross profit

2,699,011

2,831,987

8,681,443

8,623,630

Operating expenses

General and administrative

686,501

481,287

1,723,510

1,308,395

Salary and employee benefits

1,597,239

2,258,873

6,425,584

6,045,564

Depreciation and amortization

439,641

440,433

1,312,218

1,324,345

Professional fees

363,002

209,086

1,168,922

450,509

Total operating expenses

3,086,383

3,389,679

10,630,233

9,128,813

Income (loss) from operations

(387,372)

(557,692)

(1,948,790)

(505,183)

Other income (expenses):

Interest expense

(302,939)

(343,092)

(962,556)

(1,075,147)

Other (expenses) income

(226,200)

(13,202)

(1,381,045)

(10,758)

Total other expenses

(529,139)

(329,890)

(2,343,601)

(1,085,905)

Net Loss Before Income Taxes

(916,511)

(887,582)

(4,292,391)

(1,591,088)

Provision for Income Taxes

Current

(15,859)

(15,300

(44,356)

(91,409)

Total Provision for Income Taxes

(15,859)

(15,300

(44,356)

(91,409)

Net Loss attributable to Quest Solution Inc. $

(932,370)

$

(902,882)

$

(4,336,747)

$

(1,682,497)

Less: Preferred stock – Series C dividend

(47,540)

(47,450)

(142,490)

(141,071)

Net loss attributable to the common stockholders $

(979,910)

$

(950,422)

$

(4,479,237)

$

(1,823,568)

Net (loss) per share – basic $

(0.02)

$

(0.03)

$

(0.11)

$

(0.05)

Net loss per share from continuing operations – basic $

(0.02)

$

(0.03)

$

(0.11)

$

(0.05)

Weighted average number of common shares outstanding – basic

48,709,773

35,812,210

42,592,783

35,587,238

omniQ, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)

As of

September 30, 2018

December 31, 2017

(UNAUDITED)

ASSETS

Current assets

Cash $

56,060

$

24,634

Restricted Cash

531,888

684,610

Accounts receivable, net

10,669,289

6,387,734

Inventory, net

1,058,148

439,720

Prepaid expenses

398,382

476,840

Other current assets

14,120

126,187

Total current assets

12,727,887

8,139,725

Fixed assets, net

64,101

92,803

Goodwill

10,114,164

10,114,164

Trade name, net

1,926,731

2,359,481

Customer Relationships, net

4,467,402

5,310,938

Other assets

32,862

39,512

Total assets $

29,333,147

$

26,056,623

LIABILITIES AND STOCKHOLDERS’ EQUITY / (DEFICIT)

Current liabilities

Accounts payable and accrued liabilities $

11,408,860

$

13,239,810

Accrued interest on note payable

38,430

Line of credit

4,636,680

3,667,417

Accrued payroll and sales tax

2,381,202

1,531,233

Deferred revenue, net

9,157

761,194

Current portion of note payable

8,751,524

3,429,025

Notes payable, related parties

426,000

106,500

Other current liabilities

119,234

121,117

Total current liabilities

27,732,657

22,894,726

Long term liabilities

Note payable, related party

1,704,000

3,222,900

Accrued interest, related party

5,295

165,014

Long term portion of note payable

130,294

130,294

Deferred revenue, net

452,024

Other long term liabilities

430,759

439,833

Total liabilities

30,003,005

27,304,791

Stockholders’ equity / (deficit)

Series A Preferred stock; $0.001 par value; 1,000,000 shares designated and 0 shares outstanding as of September 30, 2018 and December 31, 2017, respectively.

Series B Preferred stock; $0.001 par value; 1 share designated and 0 shares outstanding as of September 30, 2018 and December 31, 2017, respectively.

Series C Preferred stock; $0.001 par value; 15,000,000 shares designated, 4,828,530 shares outstanding as of September 30, 2018 and December 31, 2017, respectively, liquidation preference of $1.00 per share and a cumulative dividend of $0.06 per share.

4,829

4,829

Common stock; $0.001 par value; 100,000,000 shares designated, 48,433,472 and 36,828,371 shares outstanding of September 30, 2018 and December 31, 2017, respectively.

48,710

36,828

Common stock to be repurchased by the Company

(230,490

)

(230,490

)
Additional paid-in capital

38,328,107

34,495,659

Accumulated (deficit)

(38,821,014

)

(35,554,994

)
Total stockholders’ equity / (deficit)

(669,858

)

(1,248,168

)
Total liabilities and stockholders’ equity / (deficit) $

29,333,147

$

26,056,623

omniQ, INC.
RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES
(UNAUDITED)

For the three months

For the nine months

ending September 30,

ending September 30,

Adjusted EBITDA Calculation:

2018

2017

2018

2017

Net loss

(932,370)

(902,882)

(4,336,747)

(1,682,497)

Income Taxes

15,859

15,300

44,356

91,410

Depreciation & Amortization

439,641

440,433

1,312,218

1,324,345

Interest Expense

302,939

343,092

962,556

1,075,147

Non Cash stock compensation

46,706

416,548

1,124,553

565,593

Debt conversion expenses

1,264,237

Restructuring expenses

98,000

112,222

26,880

Merger Related costs*

7,001

One time nonrecurring costs

442,630

976,508

Adjusted EBITDA

413,415

312,491

1,460,203

1,407,879

Net Revenue

13,444,167

12,964,054

42,368,904

40,886,754

Adjusted EBITDA as a % of Net Revenue

3.08%

2.39%

3.45%

3.44%

* The merger related costs are fees from an independent valuation firm and legal firm which were related to the business acquisitions.

Categories
Blog News Parking

omniQ Receives Order for AI-Based “Visual Cortex” Software for Safe City, Transportation Management and Data Collection

  • The “Visual Cortex”¹ Software Imitates the Human Eyes and Brain and is Capable of Detecting, Analyzing and Recognizing Patterns
  • Order Marks omniQ’s Entrance into Brazil
  • Recurring Annual Orders are Expected to Follow

EUGENE, Ore., November 15, 2018 (GLOBE NEWSWIRE) — omniQ, Inc. (omniQ) (“Quest” or “the Company”) a provider of Supply Chain and Artificial Intelligence (AI)-based solutions, today announced it has received an order for its AI-based “Visual Cortex” software package, developed to support traffic management, law enforcement, citations and monitoring.

The $220,000 order will initially supply hundreds of software packages for use by a leading integrator in Brazil.  omniQ anticipates recurring annual follow-on orders for the next 10 years.

Shai Lustgarten, CEO of omniQ, commented: “We are delighted to announce our “Visual Cortex” software package with unique capabilities that we believe will enable us to drive sales and increase margins with minimum expense. The algorithm for this software, developed by scientists of our recently acquired subsidiary, is recognized worldwide for its accuracy and reliability. As we’ve mentioned previously, we are focused on increasing our software and services sales in order to generate revenue growth and higher margins, and we believe that during 2019 we will see significant contributions from this part of the business.”

Mr. Lustgarten added: “Brazil, with its more than 200 million citizens, is the fifth largest country in the world and the largest South American Economy, representing a promising new market for omniQ. We already work with a top local integrator and look forward to increasing our sales and generating recurring orders.”

“We plan to leverage our unique technologies and strong Fortune 500 customer base to grow our market share by offering innovative solutions integrating our AI technology with omniQ legacy products,” Mr. Lustgarten concluded.

About omniQ

omniQ is a Specialty Systems Integrator focused on Field and Supply Chain Mobility. We are also a manufacturer and distributor of consumables (labels, tags, and ribbons), RFID solutions, and barcoding printers. Founded in 1994, omniQ is headquartered in Eugene, Oregon, with offices in the United States.

Rated in the Top 1% of global solution providers, omniQ specializes in the design, deployment and management of enterprise mobility solutions including Automatic Identification and Data Capture (AIDC), Mobile Cloud Analytics, RFID (Radio Frequency Identification), and proprietary Mobility software. Our mobility products and services offering is designed to identify, track, trace, share and connect data to enterprise systems such as CRM or ERP solutions. Our customers are leading Fortune 500 companies from several sectors including manufacturing, retail, distribution, food / beverage, transportation and logistics, health care and chemicals / gas / oil.

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 “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 omniQ, Inc.’s products, 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, risks related to the sale of omniQ Inc. to Viascan Group Inc. and other information that may be detailed from time-to-time in omniQ Inc.’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, Inc. please refer to the Company’s recent Securities and Exchange Commission filings, which are available at http://www.sec.gov. omniQ, Inc. 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.

  • Visual Cortex: The visual cortex of the brain is a part of the cerebral cortex that processes visual information

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