Company: OMQS
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001813
Chunk: 555

Company: OMNIQ Corp.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 7A
Chunk 555
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 accelerated, and the remaining carrying value is amortized over the new shorter useful life. No impairments were identified
or changes to estimated useful lives have been recorded as of December 31, 2024 and 2023.

NOTE
10 – CREDIT FACILITIES AND LINE OF CREDIT

We
maintain operating lines of credit, factoring, and revolving credit facilities with banks and finance companies to provide working capital.

On
March 25, 2022 we entered into a Business Finance Agreement (the “BFA”) with BridgeBank a division of Western Alliance Bank
(“BridgeBank”) to establish a credit facility, whereby we could obtain short-term financing by selling and assigning acceptable
accounts receivables to BridgeBank. Gross proceeds received during the years ended December 31, 2024 and 2023 were $0 million and $35
million, respectively. This agreement was terminated in 2023.

On
January 18, 2024, the Company’s wholly owned subsidiary, Quest Marketing, Inc. (“Quest”) entered into a Purchase and
Sale Agreement (the “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.

In
addition, Prestige’s purchase from Quest shall be at a discount. The discount shall be based on the number of days an account is
outstanding. The discount fee shall be as follows: If paid within 30 days a discount fee of 1.50% plus an additional .50% for each 10-day
period thereafter up to a maximum of 90 days.

    F-17

NOTE
11 – RELATED PARTY NOTES PAYABLE

Note
Payable – Marin 

In
December 2017, we entered into a $660 thousand, 1.89% annual interest rate note payable (the “Marin Note”) with two individuals
from whom we previously acquired their company (in 2014). The Marin Note was payable in 60 monthly principal payments of $20 thousand
beginning in October 2018. Accrued interest payable as of December 31, 2024 and 2023, was $73 thousand and $73, respectively. Accrued
interest was payable at maturity. This loan was settled in 2023.

Note