Company: OMQS
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010783
Chunk: 26

Company: OMNIQ Corp.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 26
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angot”), entered into a Share Purchase
Agreement (the “Purchase Agreement”) 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 March 31, 2025, the total amount outstanding
is NIS 4.4 million, approximately $1 million USD, and is presented on the balance sheet in short- and long-term notes payable.

NOTE 5 – INVENTORY

Inventory consisted of the following as of:

 SCHEDULE
OF INVENTORY

    In thousands 
    March 31, 2025  
    December 31, 2024 

    Raw materials 
    $266  
    $287 
  
    Inventory in transit 
     1,126  
     4,471 
  
    Finished goods (less allowance) 
     4,019  
     3,978 
  
    Less allowance for obsolescence 
     (1,085) 
     (1,331)
  
    Total inventories 
    $4,326  
    $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 discount fee starts at 1.5%
and increases based on the age of the outstanding receivables. The