Company: OMQS
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001641172-25-024877
Chunk: 65

Company: OMNIQ Corp.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 8
Chunk 65
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 the Company owed Hapoalim Bank USD $1.39 million.
At June 30, 2025, the balance was approximately $1.5 million.

    F-8

During
the year ended December 31, 2023, the Company entered into a short-term loan from Bank Leumi totaling NIS 21.5 million, approximately
US $5.9 million. The note accrues interest at 7.6% per annum. The loan is renewed every month at Israeli Prime Rate plus 1.89, which
at December 31, 2024 was 7.89%. In March 2024, NIS 7.5 million of the loan was converted into a long-term loan to be repaid in 36 installments,
bearing interest at a rate of Prime + 3.25%, which at December 31, 2024 was 9.25%. At December 31, 2024, the Company owed Bank Leumi
USD $5.4 million. At June 30, 2025, the Company owed Bank Leumi approximately USD $5.4 million.

On
September 21, 2023, the Company entered into a long-term loan from Tzameret Mimunim totaling 1.5M NIS, approximately US $393 thousand.
The note accrues interest at the Israeli Prime Rate plus 3.5% which currently equals 9.5% per annum and is payable in 36 monthly installments.
The balance at December 31, 2024 is $251 thousand and at June 30, 2025 was $212 thousand.

As
of June 30, 2025, 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
9 – OTHER INCOME 

For
the six months ended June 30, 2025, the Company received government relief funds in the amount of approximately NIS 1.7 million or US
$609 thousand.

During
the six months ended June 30,