Company: OMQS
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010783
Chunk: 11

Company: OMNIQ Corp.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 11
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 was converted into a short-term loan to be repaid in 12 installments,
bearing interest at Prime + 1.5%. In July 2024, an additional 1.5 million was converted into a long-term loan to be repaid
in 18 installments, bearing interest at a rate of Prime + 1.5%. At December 31, 2024, the Company owed Hapoalim Bank USD
$1.39 million. At March 31, 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 March 31, 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 March 31, 2025 was $212 thousand.

As of March 31, 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