BUSINESS ACQUISITION

6 Months Ended

Jun. 30, 2022

Business Combination and Asset Acquisition [Abstract]

BUSINESS ACQUISITION

NOTE 4 – BUSINESS ACQUISITION

Dangot Computers Ltd

On May 3, 2021, the Company and Omniq Technologies Ltd., a wholly owned subsidiary of the Company (“Omniq Technologies”) entered into a share purchase agreement (the “Dangot Share Purchase Agreement”) with Mr. Haim Dangot. The Closing Consideration was paid on July 8, 2021 in the following manner: (a) the Company issued 220,103 shares of its common stock having a share value of $2,084 thousand and (b) cash in the amount of $5,058 thousand and $600 thousand payable to owner.

Effective October 1, 2021, the Company exercised a portion of its option and purchased an additional 26% of Dangot bringing its ownership to 77%. The Company paid $4,012,000 to purchase the additional shares.

On April 1, 2022, the Company closed on its acquisition of Dangot and exercised the remaining portion of its option to purchase 23.0% of the capital stock, thereby making Dangot a fully owned subsidiary of the Company. The Company paid $3,518,000 to purchase the additional shares. The Company utilized its working capital and a combination of short and long term loans.

The following proforma unaudited revenue and earnings as if the acquisition had been included in the consolidated results of the company for the six months ended June 30, 2021.

	June 30,
	2022			2021
		(in thousands/unaudited)
Revenue	$	21,705		$	18,040
Net income (loss)	$	(25	)	$	1,061

Individual pro forma results for each acquisition are not disclosed, as individually these acquisitions would not have a material impact on the Company’s financial statements.

Since the acquisition the amounts included in the consolidated statement of comprehensive income from Dangot Computers Ltd. for the six months ended June 30, 2022, was $21.7 million in revenue and $25 thousand in net loss.