Company: OMQS
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010783
Chunk: 9

Company: OMNIQ Corp.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 9
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 and long-term notes payable.

NOTE 5 – INVENTORY

Inventory consisted of the following as of:

 SCHEDULE
OF INVENTORY

    In thousands 
    March 31, 2025  
    December 31, 2024 

    Raw materials 
    $266  
    $287 
  
    Inventory in transit 
     1,126  
     4,471 
  
    Finished goods (less allowance) 
     4,019  
     3,978 
  
    Less allowance for obsolescence 
     (1,085) 
     (1,331)
  
    Total inventories 
    $4,326  
    $7,405 

NOTE 6 – CREDIT FACILITIES AND LINE OF CREDIT

We maintain operating lines of credit, factoring and
revolving credit facilities with banks and finance companies to provide us with working capital.

On January 18, 2024, the Company’s wholly owned
subsidiary, Quest Marketing, Inc. (“Quest”) entered into a Purchase and Sale Agreement with Prestige Capital Finance, LLC
(“Prestige”), in which Quest has sold, transferred and assigned all of its rights, title, and interest to specific accounts
receivable owed to Quest. The maximum outstanding balance of Quest to Prestige shall be $7.5 million. The discount fee starts at 1.5%
and increases based on the age of the outstanding receivables. The balance as of March 31, 2025, was $0.

NOTE 7 – RELATED PARTY NOTES PAYABLE

Note Payable – Marin

In December 2017, we entered
into a $660 thousand note payable at 1.89% annual interest rate (the “Marin Note”) with two individuals from whom
we previously acquired their company (in 2014). The Marin Note was payable in 60 monthly principal payments of
$20 thousand beginning in October 2018. Accrued interest payable as of March 31, 2025 and December 31, 2024, was
$73 thousand and $73, respectively. Accrued interest was payable at maturity. This accrued interest was outstanding as of March
31, 2025.

    F-7

NOTE 8 – OTHER NOTES PAYABLE

 SCHEDULE OF OTHER NOTES PAYABLE

    (In thousands) 
    March 31,