Company: OMQS
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010783
Chunk: 12

Company: OMNIQ Corp.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 12
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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 9 – OTHER INCOME 

For the three months ended March 31, 2025, the Company
received government relief funds in the amount of approximately NIS 1.7 million or US $609 thousand.

NOTE 10 – STOCKHOLDERS’ EQUITY

PREFERRED STOCK

Series A

As of March 31, 2025, there were 2,000,000 Series
A preferred shares designated and no Series A preferred shares outstanding. The board of directors of the Company (the “Board”)
had previously set the voting rights for the Series A preferred stock at 1 share of preferred to 13 common shares.

Series B

As of March 31, 2025, there was 1 preferred share
designated and  no preferred shares outstanding.

Series C

As of March 31, 2025, there were 3,000,000 Series
C Preferred Shares (“Series C”) authorized with 502,000 issued and outstanding. The Series C shares have preferential rights
above common shares and the Series B Preferred Shares and is entitled to receive a quarterly dividend at a rate of $0.06 per share per
annum and have a liquidation preference of $1 per share. Series C shares outstanding are convertible into common stock at the rate of
20 preferred shares to one share of common stock. As of March 31, 2025, the accrued dividends on the Series C Preferred Stock was $219
thousand.

The Series C Preferred Stock has a liquidation value
and conversion price of $1.00 per share ($20.00 per 20 shares of preferred stock which convert to one share of common stock) and automatically
converts into Common Stock at $1.00 per share ($20.00 per 20 shares of preferred stock which convert to one share of common stock) in
the event that the Company’s common stock has a closing price of $30 per share for 20 consecutive trading days.

    F-9

EQUITY INCENTIVE PLAN

In October 2021, OMNIQ’ Board of Directors adopted
an Equity Incentive Plan (the “Plan”), as an incentive to retain in the employ of and attract new employees, directors, officers, advisors, and employees