Company: OMQS
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001641172-25-024877
Chunk: 43

Company: OMNIQ Corp.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 1
Chunk 43
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 a rate of Prime + 3.25%, which at December 31, 2024 was 9.25%. At December 31, 2024, the Company owed Bank Leumi
USD $5.4 million. At June 30, 2025, the Company owed Bank Leumi approximately USD $5.4 million.

On
September 21, 2023, the Company entered into a long-term loan from Tzameret Mimunim totaling 1.5M NIS, approximately US $393 thousand.
The note accrues interest at the Israeli Prime Rate plus 3.5% which currently equals 9.5% per annum and is payable in 36 monthly installments.
The balance at December 31, 2024 is $251 thousand and at June 30, 2025 was $212 thousand.

As
of June 30, 2025, the Company was not in compliance with certain financial covenants related to the Bank Leumi and Bank Hapoalim debt.
The Company’s failure to comply with these financial covenants could result in an event of default under its debt agreements. Therefore,
we reclassified the total balance as current debt on the balance sheet. The Company is actively pursuing options to address its noncompliance.
The lenders have not requested early repayment of the loan as of the date when these financial statements were available to be issued.

NOTE
9 – OTHER INCOME 

For
the six months ended June 30, 2025, the Company received government relief funds in the amount of approximately NIS 1.7 million or US
$609 thousand.

During
the six months ended June 30, 2025, the Company received Employee Retention Credit refunds in the amount of approximately $1.05 million
for returns filed for prior years.

NOTE
10 – STOCKHOLDERS’ EQUITY

PREFERRED
STOCK

Series
A

As
of June 30, 2025, there were 2,000,000 Series A preferred shares designated and no Series A preferred shares outstanding. The board of
directors of the Company (the “Board”) had previously set the voting rights for the Series A preferred stock at 1 share of
preferred to 13 common shares.

Series
B

As
of June 30, 2025, there was 1 preferred share designated and no preferred shares outstanding.

Series
C

As
of June 30, 202