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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

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

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omniQ Reports Progress on Turnaround Plan and Fiscal Year 2017 Results

EUGENE, Ore., May 08, 2018 — omniQ, Inc. (QUES), a specialty systems integrator focused on field and supply chain mobility announced progress on its turnaround plan and its financial results for the year ended December 31, 2017.

Highlights

Turnaround

  • Total operating expenses decreased $1M to $12.2M for year ended December 31, 2017, a $1.1 saving following the execution of August 2017 turnaround plan.
  • Efficiency steps including consolidation of operations and a 44% reduction in headcount partially impacted 2017 and will have a full impact on 2018 results.
  • $15.4M of debt was eliminated by settlement agreements; Minimal potential dilution of up to 15% of the Company shares.
  • Shareholders’ Equity as of December 31, 2017 improved by $13.6M to a deficit of $1.2 compared to a deficit of $14.8M in 2016.
  • Total liabilities as of December 31, 2017 decreased by over $20 million.

Financial Results:

  • Net cash provided from operations increased to $7.5M in fiscal year 2017 from $5.7M in 2016.
  • Revenue for 2017 was $54.5M down from $60M in 2016 due to a discharge of non-profitable business.
  • Adjusted EBITDA plus Stock Based Compensation for Fiscal Year 2017 increased by 78% to $1.78M
  • Net loss from Continuous Operations decreased from $7.5M in fiscal year 2016 to $2.4 in Fiscal Year 2017.
  • Approximately $12M decrease in Net loss attributable to the common stockholders from $14.2M ($0.4 per share) to $2.1 ($0.06 per share).

For the year ended December 31, 2017, omniQ reported revenues of $54.5 million, compared to $60.0 million in the comparable 2016 period.  Gross margin improved slightly to 21% for fiscal 2017 compared to 20% in fiscal 2016, During the year the Company drove a $466,000 or 20% reduction in general and administrative expense and a $457,000 or 5% reduction in salary and benefits. During 2017 the Company expensed $750,745 in non-cash stock based compensation. Excluding the charge for non-cash stock compensation, and over $145K of tax expense included in general and administrative expense, Quest would have achieved operating income for full year 2017. Total operational expenses for 2017 were over $1M less than in 2106. Net loss attributable to the common stockholders improved significantly to $2.1million, or a loss of $0.06 per share, compared to a net loss of $14.2 million, or a loss of $0.40 per share in 2016.  Adjusted EBITDA (EBITDA plus Stock Based Compensation) for full year 2017 improved by 78% to $1,780,245, or 3.3% of sales, compared to $977,473, or 1.6% of sales for the previous year.

Shai Lustgarten, CEO, commented, “In July 2017, a new board of directors was elected to omniQ. The Board and new management team inherited a business with excellent customers and a strong reputation in the supply chain sector. We also inherited an extremely weak balance sheet, a consistent history of operating losses and the consequences of an acquisition that resulted in millions of dollars of losses which coupled with these historic losses resulted in a $14M Shareholders Equity deficit. Management has initiated an aggressive turnaround plan including actions to drive a return to profitability, generate positive cash flow and improve the Company’s financial strength by negotiating with noteholders a settlement on their approximately $18M worth of notes. The plan also includes the addition of new technologies to our product offerings, and increasing margins and differentiating ourselves from our competitors. We have implemented efficiency measures by consolidating operations, cutting our headcount by approximately 44% and instituting other operational costs that favorably impacted a portion of the 2017 results. We expect that they will have a full impact on our 2018 financials. Following the close of the quarter, we announced a $15 million reduction of our notes liability. This positive development represents a significant improvement in our financial situation, but resulted in a delay in the release of our financial statements, as we needed to ensure that the transactions were properly accounted for. Through the combination of our efficiency measures and this meaningful debt reduction, omniQ has improved its financial strength and stockholders’ equity, increased cash flow and profitability, and established the foundation for a healthier company going forward.”

“We established clear goals for the turnaround of omniQ and have made solid progress against these goals thus far.  These goals include:

  • Improving the balance sheet
  • Delivering sustained profitability by realizing efficiencies
  • Improving performance by changing company culture, motivating employees and consolidating operations
  • Adding advanced new technologies to elevate omniQ’s profile as a high-tech company offering unique solutions, driving margin improvement and a stronger market position

“We are seeing tremendous opportunities in the evolving and growing markets in which we operate, and we are better positioned today to capitalize on these opportunities. omniQ has built a solid base of blue chip customers and we are focused on expanding our customer reach as we continue to increase our capabilities and offerings. We remain focused on developing new and enhanced solutions to improve our competitive positioning with a particular focus on offering higher margin software solutions and services. This is a very exciting time for our Company and we remain dedicated to executing on the initiatives we’ve embarked upon to establish a profitable business with leadership position in the supply chain marketplace. I would like to thank our great team of employees, consultants and customers who have enabled us to execute this plan for the benefit of our shareholders.”

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. We are also a distributor of consumables (labels, tags, and ribbons), RFID solutions, and barcoding printers. Founded in 1994, Quest is headquartered in Salt Lake City, Utah, 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.

omniQ, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(AUDITED)

For the twelve months
ending December 31,
2017 2016
Revenues
Total Revenues 54,458,845 60,047,124
Cost of goods sold
Cost of goods sold 43,089,210 47,952,579
Gross profit 11,369,635 12,094,545
Operating expenses
General and administrative 1,713,791 2,327,889
Salary and employee benefits 7,951,970 8,409,223
Depreciation and amortization 1,762,937 1,792,326
Professional fees 674,374 754,411
Other operating expenses 145,056
Total operating expenses 12,248,128 13,283,849
Income (loss) from operations (878,493) (1,189,304)
Other income (expenses):
Gain on intangible
Write-off of other assets (10) (450,000)
Gain on extinguishment of other liabilities 150,000
Interest expense (1,555,350) (4,531,263)
Restructuring expense (26,880) (544,941)
Gain on foreign currency 129,589
Other (expenses) income 29,560 11,001
Total other expense (1,559,233) (5,235,614)
Net Loss Before Income Taxes (2,431,175) (6,424,918)
(Provision) benefit for Income Taxes
Current (1,068,352)
Total Benefit for Income Taxes (1,068,352)
Net loss from continuing operations $ (2,431,175) $ (7,493,270)
Net loss from discontinued operations (6,851,875)
Net loss attributable to omniQ’s Inc. $ (2,431,175) $ (14,345,145)
Less: Preferred stock – Series C dividend (289,695) (101,075)
Net loss attributable to the common shareholders $ (2,141,480) $ (14,244,070)
Net loss per share – basic $ (0.06) $ (0.40)
Net loss per share – diluted $ (0.06) $ (0.40)
Net loss per share from continuing operations – basic $ (0.06) $ (0.21)
Net loss per share from continuing operations – diluted $ (0.06) $ (0.21)
Net loss per share from discontinued operations – basic $ $ (0.19)
Net loss per share from discontinued operations – diluted $ $ (0.19)
Weighted average number of common shares outstanding – basic and diluted 35,814,751 35,947,523

omniQ, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(AUDITED)

Year Ended
December 31, 2017 December 31, 2016
ASSETS
Current assets
Cash $ 24,634 $ 289,479
Restricted Cash 684,610 665,220
Accounts receivable, net 6,387,734 10,589,677
Inventory 439,720 531,593
Prepaid expenses 476,840 272,926
Deferred tax asset, current
Other current assets 126,187 772,966
Assets held for disposal
Total current assets 8,139,725 13,121,862
Fixed assets, net 92,803 136,835
Deferred tax asset, non-current
Goodwill 10,114,164 10,114,164
Trade name 2,359,481 2,936,481
Intangibles, net
Customer Relationships, net 5,310,938 6,435,652
Other assets 39,513 47,563
Total assets $ 26,056,624 $ 32,792,557
LIABILITIES AND STOCKHOLDERS’ (DEFICIT)
Current liabilities
Accounts payable and accrued liabilities $ 13,239,810 $ 10,566,066
Accrued interest and liabilities, related party 38,430
Line of credit 3,667,417 5,059,292
Advances, related party 100,000
Accrued payroll and sales tax 1,531,233 1,829,934
Deferred revenue, net 761,194 879,026
Current portion of note payable 3,429,025 9,782,925
Note payable, related party current 106,500
Other current liabilities 121,118 227,932
Liabilities held for disposal
Total current liabilities 23,894,727 28,445,175
Long term liabilities
Note payable, related party, net of debt discount 3,222,900 17,515,345
Accrued interest and liabilities, related party 165,014 629,238
Long term portion of note payable 130,294 130,294
Deferred revenue, long term 452,024 565,423
Other long term liabilities 439,832 332,270
Total liabilities 27,304,791 47,617,745
Stockholders’ (deficit)
Series A Preferred stock; $0.001 par value; 1,000,000 shares designated, 0 shares issued and outstanding as of December 31, 2017 and 2016, respectively
Series B Preferred stock; $0.001 par value; 1 share designated, 0 shares and 0 share issued and outstanding as of December 31, 2017 and 2016, respectively
Series C Preferred stock; $0.001 par value; 15,000,000 shares designated, 4,828,530 and 3,143,530 shares issued and outstanding as of December 31, 2017 and 2016, respectively, liquidation preference of $1 per share and a cumulative dividend of $0.06 per share 4,829 3,144
Common stock; $0.001 par value; 100,000,000 shares authorized; 36,828,371 and 35,095,763 shares issued and outstanding of December 31, 2017 and 2016 respectively 36,828 35,095
Common stock to be repurchased by the Company (230,490) (230,490)
Warrants paid-in capital 120,000
Additional paid-in capital 34,375,660 18,302,262
Accumulated (deficit) (35,554,994) (32,935,199)
Total stockholders’ (deficit) (1,248,167) (14,825,188)
Total liabilities and stockholders’ (deficit) $ 26,056,624 $ 32,792,557

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

Year Ended
December 31, 2017 December 31, 2016
Operating profit $   (878,493) $   (1,189,304)
Depreciation 61,223 90,626
Amortization 1,701,714 1,701,700
Tax expense included in G&A 145,056
EBITDA 1,029,500 603,022
Stock base compensation 750,745 374,451
Adjusted EBITDA $ 1,780,245 $   977,473

Investor Contact:
John Nesbett/Jen Belodeau
Institutional Marketing Services (IMS)
203.972.9200
jnesbett@institutionalms.com

Categories
News

omniQ Named to Food Logistics’ 2017 FL100+ Top 100 Software and Technology Providers List

EUGENE, OR–(Marketwired – December 15, 2017) – omniQ, Inc, a specialty systems integrator that offers field and supply chain mobility solutions, announced that it has been named to Food Logistics’ 2017 FL100+ Top Software and Technology Providers list.

The annual list serves as a resource guide of software and technology providers whose products and services are critical for companies in the global food and beverage supply chain.

Shai Lustgarten, CEO at omniQ, commented, “We are pleased to be recognized by Food Logistics as a leading software and technology provider. We work closely with our customers to deliver state-of-the-art technology and effective solutions to improve their productivity while also helping them lower their operating costs. Our goal is to provide solutions that enable industry leaders to improve their supply chain performance, and inclusion in this year’s list demonstrates our ability to do exactly that.”

omniQ, a partner to several large companies in the food and beverage logistics industry, specializes in tracking and traceability, as well as controls and recall management functionalities that ensure proper compliance. The Company offers a broad array of logistics solutions, combining technologies such as configurable applications used in automatic order placing, mobile computers designed for various refrigerated environments, wireless networks for mobile scanners, and much more, optimizing supply chain performance as a result.

“New developments and innovations in the software and technology sector are making sizeable impacts on the global food supply chain,” notes Lara L. Sowinski, editorial director for Food Logistics and its sister publication, Supply & Demand Chain Executive. “The result is a greater visibility, improved regulatory compliance, enhanced shelf life for perishables, and the emergence of a more proactive and nimble food supply chain that benefits both the food industry and its logistics partners, as well as the end consumer.”

About Food Logistics
Food Logistics is published by AC Business Media, a business-to-business media company that provides targeted content and comprehensive, integrated advertising and promotion opportunities for some of the world’s most recognized B2B brands. Its diverse portfolio serves the construction, logistics, supply chain and other industries with print, digital and custom products, events and social media.

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.

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omniQ Announces $15 Million in Debt Reduction; Achieves Pivotal Turnaround Milestones

Balance Sheet Transformation Complements Improved Operating Performance and Positions omniQ for Enhanced Profitability

$3 Million Annual Operating Cost Reductions to Date Including ~ 30% Headcount Reduction

Maximum Potential Converted Number of Shares for the $15M Debt Reduction Total Less than 15% of Issued Shares; Dramatically Improves Shareholders’ Equity

EUGENE, Ore., March 12, 2018 (GLOBE NEWSWIRE) — omniQ, Inc. (OTCQB:QUES), a specialty systems integrator offering field and supply chain technology solutions, announced agreements with certain noteholders that resulted in a reduction of the Company’s debt liability to such creditors from $17.4 million to $2.1 million.

Shai Lustgarten, omniQ’s CEO, stated, “We have made dramatic progress toward the main strategic goals new management identified in our August 7, 2017, press release. The efficiency measures we have taken and this debt reduction have transformed the Company’s financial strength and significantly enhanced our balance sheet, improving stockholders’ equity, cash flow and all of our financial ratios.  The achievements to date have created nothing short of a rebirth of the Company for our employees and shareholders.”

Mr. Lustgarten continued, “When the new management team took control approximately one year ago, we inherited an essentially broken business including a very weak balance sheet and an operation that generated losses. Our top priorities since coming on board have been to deliver profitable operations and to negotiate a refinancing of the debt, combined efforts that enable us to build significant long-term shareholder value. We can now move forward with more efficient operations, modest interest expense and a balance sheet that can support the success we are driving in the business. I would like to thank the note holders for seeing the opportunity to unlock potentially significant value by aligning with the Company and its equity holders.”

Financial details of the refinancing are as follows (investors should also review the Company’s Form 8-K filed on March 1, 2018, which discloses information related to the debt restructuring including the actual agreements related thereto):

Principal
Total debt to the noteholders before settlement: $ 17,437,799
Total debt to noteholders post settlement agreement: $ 2,130,000
Total debt reduction:  $ 15,307,799
Interest per year
For Old debt ~ $600,000
Settlement interest on new issued C preferred ~ $97,000
Saving on interest  ~$503,000
Non cash and Equity
Total common stock issued: 500,000
Total Series C preferred stock issued (Convertible at $1.00) 1,711,000
Total warrants issued with exercise price at $0.20 3,000,000

Mr. Lustgarten continued, “In addition to improving the balance sheet, it is important to note that we have made substantial progress executing on the turnaround initiatives we previously outlined.  Among the key priorities that we set forth and have taken meaningful steps toward accomplishing are:

  • Delivering sustained profitability by realizing efficiencies;
  • Improving performance by changing company culture, motivating employees and consolidating operations; and
  • Adding new advanced technologies to our product offering, positioning omniQ as a high-tech company with unique solutions, generating higher margins and stronger market position.

“Our business segment is exciting and includes potential integration of Artificial Intelligence Systems to revolutionize the supply chain and logistics management tasks. We are currently working on adding new technologies that will differentiate omniQ from its competitors providing unique advanced solutions, increasing our margins and accelerating our growth.”

Mr. Lustgarten concluded: “We have made significant progress, and while there’s still a lot of work to be done, with the completion of a major part of our turnaround initiatives, omniQ is better positioned today to capitalize on the opportunities we’re seeing in our evolving and growing target markets. We continue to provide solutions for the supply chain needs of our blue chip customer base of Fortune 100 companies and look forward to broadening our customer reach. Our new management team continues to focus on the development of new and enhanced solutions, with a particular focus on offering higher margin software solutions and services. Additionally, we remain dedicated to creating a successful and profitable leading company in the evolving markets in which we operate.”

About omniQ
omniQ is a Specialty Systems Integrator and software developer that delivers innovative Field and Supply Chain technology solutions. We are also a manufacturer and reseller of consumables (labels, tags, and ribbons), RFID solutions, and barcode 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 100 companies from several sectors including manufacturing, retail, distribution, food / beverage, transportation and logistics, health care and chemicals / gas / oil.

Categories
News

omniQ Named to Food Logistics’ 2017 FL100+ Top 100 Software and Technology Providers List

Eugene, OR – December 15, 2017 – omniQ, Inc. (OTCQB: QUES), a specialty systems integrator that offers field and supply chain mobility solutions, announced that it has been named to Food Logistics’ 2017 FL100+ Top Software and Technology Providers list.

The annual list serves as a resource guide of software and technology providers whose products and services are critical for companies in the global food and beverage supply chain.

Shai Lustgarten, CEO at omniQ, commented, “We are pleased to be recognized by Food Logistics as a leading software and technology provider. We work closely with our customers to deliver state-of-the-art technology and effective solutions to improve their productivity while also helping them lower their operating costs. Our goal is to provide solutions that enable industry leaders to improve their supply chain performance, and inclusion in this year’s list demonstrates our ability to do exactly that.”

omniQ, a partner to several large companies in the food and beverage logistics industry, specializes in tracking and traceability, as well as controls and recall management functionalities that ensure proper compliance. The Company offers a broad array of logistics solutions, combining technologies such as configurable applications used in automatic order placing, mobile computers designed for various refrigerated environments, wireless networks for mobile scanners, and much more, optimizing supply chain performance as a result.

“New developments and innovations in the software and technology sector are making sizeable impacts on the global food supply chain,” notes Lara L. Sowinski, editorial director for Food Logistics and its sister publication, Supply & Demand Chain Executive. “The result is a greater visibility, improved regulatory compliance, enhanced shelf life for perishables, and the emergence of a more proactive and nimble food supply chain that benefits both the food industry and its logistics partners, as well as the end consumer.”

About Food Logistics

Food Logistics is published by AC Business Media, a business-to-business media company that provides targeted content and comprehensive, integrated advertising and promotion opportunities for some of the world’s most recognized B2B brands. Its diverse portfolio serves the construction, logistics, supply chain and other industries with print, digital and custom products, events and social media.

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 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.

Investor Contact:

John Nesbett or Jennifer Belodeau

Institutional Marketing Services (IMS)

(203) 972-9200

jnesbett@institutionalms.com

jbelodeau@institutionalms.com

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News

omniQ Named to Honeywell’s New Platinum Elite Partner Program

Honeywell’s new program tier awards and acknowledges their largest and most loyal partners

Eugene, OR – April 20, 2017 – omniQ, Inc., a specialty systems integrator that offers field and supply chain mobility solutions, has been named to Honeywell’s Platinum Elite Partner Program, which is a new program tier that rewards and acknowledges Honeywell’s largest and most loyal partners.

Honeywell’s 2017 Performance Partner Program is designed to help channel partners grow their revenue, as well as increase the reach of their customer portfolio with marketing, sales, and support resources that deliver Honeywell solutions. This update to the partner program demonstrates Honeywell’s continued commitment to the channel.

Honeywell named omniQ a Platinum Elite partner due to omniQ’s revenue achievement and consistent performance over an extended period of time. This partner tier is comprised of members who tout the broadest range of specialties and skillsets the industry has to offer. omniQ provides customers with a unique combination of experience and knowledge to go with their industry-leading field and supply chain solutions.

“We understand how important it is to have a strong partner network,” said Shai Lustgarten, President and CEO at omniQ. “omniQ is honored to be named to Honeywell’s Platinum Elite Partner Program. Together, we believe we can continue to push industry standards, expand margins, and grow revenue streams.”

Honeywell provides a range of connected solutions designed to improve productivity for field service, healthcare, logistics, retail and warehousing customers. The company offers one of the industry’s broadest portfolios of mobile computers, barcode scanners, printers, print media and voice-directed solutions.

To learn more about omniQ or to set up a meeting with a omniQ representative, contact us or call us at 800-242-7272.

About omniQ, Inc.

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 throughout 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.

Media Contact:

Mary Burke, omniQ, Inc.
Director of Marketing
(541) 466-3050
mburke@omniq.com

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News

Wavelink Salutes omniQ as Partner of the Year for the Americas

Eugene, OR – August 24th, 2016 – Mobile productivity is a team sport. Customers realize success by deploying mission-critical mobility solutions that include ingredient expertise from several sources. Today, Wavelink announced its Partner of the Year award winners – recognition for outstanding performance during 2015.

Six recipient companies were recognized worldwide – two from the Americas. These partners delivered significant customer successes using Wavelink solutions as the fulcrum for maximizing productivity. The partners were nominated and reviewed by a panel of Wavelink, and parent-company LANDESK, global leadership team members.

“Our resellers are the backbone of our business, and these awards celebrate the ‘best of the best’”. We are honored to congratulate omniQ Inc. for winning our ‘Partner of the Year’ Award for the Americas, and we want to congratulate omniQ and extend a big ‘Thank you’ for bringing our mutual customers along the path to maximum productivity with Wavelink’’ stated Steve Bemis, vice president, worldwide sales at Wavelink.

Pierre-André Paulin, VP of Marketing and Business Development commented, “It is an honor to be acknowledged by Wavelink, a Premium Business Partner for omniQ. This recognition is proof that our partners and customers appreciate the efforts and professionalism that are deployed on a daily basis by our employees. We are grateful Wavelink and the industry recognizes our expertise and leadership in Field and Supply Chain Mobility”.

About Wavelink: 
Wavelink accelerates mobile productivity with solutions that enable supply chain operations. Organizations around the globe and across industries such as manufacturing, retail, warehousing and field force automation rely on Wavelink enterprise mobility management, host-connectivity applications, and voice-enablement solutions to connect mobile devices to supply chain management systems, ensuring worker productivity in mission-critical mobile deployments, reducing costs and contributing directly to operating margin. Wavelink is part of the LANDESK family and is headquartered in South Jordan, Utah. For more information, please visit www.wavelink.com, and get the latest product and customer news from Twitter and LinkedIn.

Learn more about becoming a Wavelink Mobile Productivity partner at: http://www.wavelink.com/partners/partner-program/
Read more about Partner of the Year awards celebrated across the LANDESK business units here.

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 and Canada.

Rated in the Top 1% of global solution providers, omniQ specializes in the design, deployment and management of enterprise mobility solutions including Automatic Identification (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.
https://www.omniq.com

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Copyright © 2016, omniQ Inc. All rights reserved.

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omniQ Inc. Has Merged with Bar Code Specialties, Inc.

Near the end of 2014, omniQ, Inc., a national mobility systems integrator with a focus on the design, delivery, deployment and support of fully integrated mobile solutions, announced an agreement to merge with privately held Bar Code Specialties, Inc.   The transaction, which was completed by the end of November, has created one of the largest selling groups in the nation for Zebra/Motorola and Honeywell mobile computing devices.

Headquartered in Garden Grove, California, Bar Code Solutions is nationwide turnkey solutions provider that has over 10 field sales and support offices throughout the United States.  BCS has seen strong growth over the past 23 years, posting unaudited sales of over $26 million in 2013.  omniQ agreed to purchase Bar Code Solutions’ outstanding shares of common stock for an aggregate purchase price of $11 million.

“I am excited about the next phase of our Company’s growth and teaming up with visionaries like omniQ’s Kurt Thomet and George Zicman, whom I have known and respected for many years,” said David Marin, founder of Bar Code Solutions. “The collective service offering we can now provide in the marketplace is truly unprecedented and unparalleled.”

Marin, a sole shareholder in Bar Code Solutions, will remain with the company.  By combining forces with BCS, omniQ hopes establish itself as one of the industry’s largest integrators.

“As we have long stated, our team plans to continue to focus on our three tier approach for growth in the Company,” stated Jason Griffith, CEO of omniQ. “One, organic growth; two, acquisitions of companies in our space which allow us to use synergies to provide tremendous shareholder value while allowing us to help our customers achieve more; and three, the growth of technologies presented to us that we feel through our existing connections and resources we can help to expand rapidly.”