Company: OMQS
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001813
Chunk: 207

Company: OMNIQ Corp.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 3
Chunk 207
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9.5%
per annum and is payable in 36
monthly installments. The balance at December 31, 2024 is $251 thousand.

As
of December 31, 2024, 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
13 – COMMITMENTS AND CONTINGENCIES

Profit
Sharing Plan

We
maintain a contributory profit-sharing plan covering substantially all full-time employees within the requirements of the Employee Retirement
Income Security Act of 1974 (“ERISA”). In 2016, the Safe Harbor element was removed from the plan, so the employer may make
a discretionary matching contribution equal to a uniform percentage or dollar amount of participants’ elective deferrals for each
Plan Year. The plan also includes a 401(k)-savings plan feature that allows substantially all employees to make voluntary contributions
and provides for discretionary matching contributions determined annually by the Board of Directors. For the years ending December 31,
2023 and 2024, the company has elected to match; the total expense was $109 thousand and $99 thousand, respectively.

Operating
Leases

As
of December 31, 2024, we had 5 Operating leases as follows:

    ●
    Office
    space in Salt Lake City UT with monthly payments of $24 thousand. As of December 31, 2024, the Company had 20 months remaining on
    the lease.

    ●
    Office
    space in Anaheim, CA with monthly payments of $4 thousand. As of December 31, 2024, the Company had 15 months remaining on the lease.

    ●
    Dangot’s
    corporate offices are currently located at Yad Harutzim 14 Tel-Aviv, Israel. The main corporate office, Yad Harutzim 14, serves as
    the company’s main building on the 2nd and 3rd floors, used by the management and most of the sales staff, technicians, etc.
    The corporate office annual lease expense