OTHER NOTES PAYABLE |
6 Months Ended | ||||||||||||||||||||||||||||||||||||
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Jun. 30, 2026 | |||||||||||||||||||||||||||||||||||||
| Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||
| OTHER NOTES PAYABLE | NOTE 6 – OTHER NOTES PAYABLE
Notes Payable Other
On July 29, 2021, the Company entered into a long-term loan from Leumi Bank totaling NIS 7 million, which at the time was approximately $2.16 million. The note accrues interest at the Israeli Prime Rate plus 4.5% which currently equals 8.25% per annum and is payable in 8 instalments of principal and interest over 4 years. The note is secured by shares of Dangot Computers, Ltd At December 31, 2025, the balance owed is $437,500 USD and at June 30, 2026, the balance owed is approximately $332,500 USD.
On August 11, 2021, the Company purchased vehicles using cash and financing of NIS $500 thousand, approximately $155 thousand, to be paid off in monthly interest and principal payments over 5 years. The loan accrues interest at 7.5% per annum and is secured by the vehicles. This was completed in January 2025.
During the year ended December 31, 2023, the Company entered into a short-term loan Hapoalim Bank totaling NIS $5.5 million, approximately US $1.5 million. The note accrues interest at 7.3% per annum. The loan is renewed every month at Israeli Prime Rate plus + 1.3%, which at June 30, 2026 was 7.05% and at December 31, 2025 was 7.05%.
In February 2024, NIS $1.5 million of the loan was converted into a short-term loan to be repaid in 12 instalments, 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 instalments, bearing interest at a rate of Prime + 1.5%.
In December 2025, an additional $0.8 million was converted into a long-term loan to be repaid in 12 instalments, bearing interest at a rate of Prime + 2.2%, the balance at December 31, 2025 was still $0.8 million and at June 30, 2026 was $0.4 million.
At December 31, 2025, the Company owed Hapoalim Bank USD $1.39 million. At June 30, 2026, the balance was approximately $0.81 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, 2025 was 7.64% and at June 30, 2026 was 7.39%.
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, 2025 was 9.0% which at June 30, 2026 was 8.75%.
In June 2025 the Company decreased the balance of the revolving loan by further NIS $4 million.
The short-term loan (renewed every month) at 2025 is NIS 10 million, approximately US $3.138 million.
At December 31, 2025, the Company owed Bank Leumi USD $4.138 million. At June 30, 2026, the Company owed Bank Leumi approximately USD $3.85 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% per annum and is payable in 36 monthly installments. The balance at December 31, 2025 is $130 thousand and at June 30, 2026 was $70 thousand.
As of June 30, 2026, 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. On December 29, 2025, a new covenants agreement was signed with Bank Hapoalim, pursuant to which the Company is required to comply with the financial covenants set forth in the new agreement, commencing with the 2026 financial statements.
As part of the sale of the Quest division and its assets, the Company entered into a Promissory Note which bears interest at 5% per annum, is amortized over a ten-year period, and provides for a balloon payment after the third year. The balance at June 30, 2026 was $9.2 million. Due to the related party nature of the CEO of OMNIQ relationship with the Note Holder, this note is deemed related party.
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