Company: OMQS
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023481
Chunk: 8

Company: OMNIQ Corp.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 8
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 Purchase Agreement (the “Purchase
Agreement”) with Summit Junction Holdings LLC, a Delaware limited liability company (the “Buyer”).

Pursuant
to the Purchase Agreement, the Sellers agreed to sell, and Buyer agreed to purchase, substantially all of the 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.

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 record the gain to Additional Paid-in
Capital.

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