Company: OMQS
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010783
Chunk: 13

Company: OMNIQ Corp.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 13
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 to the Company. Pursuant to the Plan, 1,118,856 shares of the Company’s common stock, par value
$0.001 (the “Shares”), were set aside and reserved for issuance. The Plan was approved by our stockholders at the December
2021, shareholders’ meeting. No shares were issued in the three months ended March 31, 2025 and 14,409 shares were issued during the three months ended March 31, 2024.

NOTE 11 – LITIGATION

The Company was named a
defendant in a case involving a former employee who claims he is owed approximately $60 thousand in unpaid commissions. This case
was settled in February 2024.

On November 3, 2024 a commercial real estate company
filed a lawsuit against Dangot Computers, OmniQ Technologies and some of Dangot’s officers alleging breach of a letter of intent
for a lease arrangement. The claims were brought in an Israeli court. The initial claim against Dangot Computers is NIS 21 million
approximately US $5.6 million. The Company believes that it has meritorious defenses to such action and intends to vigorously defend
itself; however, at this stage it is too early to assess the chances of the lawsuit with certainty.

In March 2025, the Company
was named a defendant in a case involving a consultant who was terminated and who claims he is owed approximately $389 thousand in
unpaid fees and commissions. The Company believes it has multiple defenses and cross claims against the former consultant and is
evaluating its response to the lawsuit, but plans to vigorously defend the suit.

NOTE
12 – BUSINESS SEGMENT

The
Company operates in a single reportable segment, referred to as providing solutions including hardware, software, communications, and
automated management service as an established distributor of barcode labels, tags, and ribbons, as well as RFID labels and tags. The
business is managed by the chief executive officer who is the Chief Operating Decision Maker (CODM). The CODM evaluates segment performance
based on operating income (loss) for purposes of allocating resources and evaluating financial performance.  The accounting policies
of our single reportable segment are the same as those for the Company as a whole.

NOTE 13 – SUBSEQUENT EVENTS

None

F-10

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS