Company: OMQS
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001813
Chunk: 281

Company: OMNIQ Corp.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 4
Chunk 281
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 December 31, 2024, the Company owed Hapoalim Bank USD $1.39 million.

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.

    F-18

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.

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