Company: OMQS
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001813
Chunk: 739

Company: OMNIQ Corp.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 9A
Chunk 739
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 at 7.3%
per annum. The loan is renewed every month at Israeli Prime Rate plus + 1.3%,
which at December 31, 2024 was 7.3%.
In February 2024, NIS 1.5
million of the loan 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 20
installments, bearing interest at a rate of Prime + 1.5%. At 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