Company: OMQS
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001641172-25-024877
Chunk: 62

Company: OMNIQ Corp.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 8
Chunk 62
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”) with CodeBlocks Ltd. (CodeBlocks”) and CodeBlocks’ owners, Alina Lifshits
and Erez Attia pursuant to which Dangot, acquired all of the capital stock of CodeBlocks in exchange for NIS 4,666,664 (approximately
US $ 1,275,044). The consideration is payable in seven equal installments with the final payment due on November 1, 2025. The note has
no explicit interest rate so the Company used an implicit interest rate of 8%; therefore the present value for the acquisition was NIS
4,356,720, approximately $1,190,360. The purchase Agreement closed on February 1, 2024. As of June 30, 2025, this entity was sold as
part of the sale discussed in Note 11.

NOTE
5 – INVENTORY

Inventory
consisted of the following as of:

 SCHEDULE
OF INVENTORY

    In
    thousands 
    June
    30, 2025  
    December
    31, 2024 

    Raw
    materials 
    $308  
    $287 
  
    Inventory
    in transit 
     53  
     4,076 
  
    Finished
    goods (less allowance) 
     3,407  
     49 
  
    Less
    allowance for obsolescence 
     (763) 
     (1,204)
  
    Total
    inventories (continuing operations) 
    $3,005  
    $3,208 
  
    Inventories
    relate to discontinued operations 
     -  
     4,197 
  
    Total
    inventories 
    $3,005  
    $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