Company: OMQS
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001641172-25-024877
Chunk: 46

Company: OMNIQ Corp.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 1
Chunk 46
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 assets and assume certain liabilities mainly associated with the
Company’s legacy business line, including its integrated hardware, software, and automation solutions business, (the “Transferred
Business”). The Transaction was consummated on July 11, 2025. Although the Purchase Agreement is dated as of June 30, 2025, the
parties executed the agreement and consummated the Transaction on July 11, 2025.

    F-10

The aggregate consideration for the Transaction
is approximately $45.0 million, consisting of the assumption by Buyer of up to $55.0 million in specified liabilities of the Transferred
Business and the issuance by the Company of a Promissory Note in the principal amount of $10.0 million in favor of the Buyer. The Promissory
Note bears interest at 5% per annum, is amortized over a ten-year period, and provides for a balloon payment after the third year. In
addition, the Company is entitled to a contingent payment of up to $10.0 million in the event that, within 18 months following the closing,
Buyer either (i) consummates a sale of all or substantially all of its assets or equity for consideration in excess of $100.0 million
or (ii) completes an initial public offering at a valuation exceeding $100.0 million.

The sale resulted in a net gain on disposal of
approximately $34.7m, which reflects the difference between the carrying amount of the net assets disposed of and the consideration transferred/assumed,
including the promissory note and transaction costs. However, due to the related-party nature of the transaction, management determined
it would be more conservative to record the gain to Additional Paid-in Capital instead of in Other Income.

The net gain (APIC) was calculated as follows (in thousands):

SCHEDULE OF NET GAIN ON ADDITIONAL PAID IN CAPITAL

    Change in Value 
  
    Cash and cash equivalents 
    $(2,388)
  
    Accounts receivable, net 
     (4,730)
  
    Inventory, net 
     (282)
  
    Other current assets 
     (996)
  
    Property and equipment, net of accumulated depreciation 
     (48)
  
    Accounts payable and accrued liabilities 
     55,000 
  
    Other current liabilities 
     (1,822)
  
    Related party notes payable 
     (10,000)
  
    Additional paid-in capital