Company: OMQS
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023481
Chunk: 12

Company: OMNIQ Corp.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 12
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 is owed approximately
$389 thousand in unpaid fees and commissions. The Company believes it has multiple defense and cross claims against the former consultant
and is evaluating its response to the lawsuit, but plans to vigorously defend the suit.

On June 30, 2025, the Company’s subsidiary Dangot Computers reached
at settlement with one of its vendors in Israel related to past due rebates and price protection payments entitled under prior agreements.
The vendor agreed to pay Dangot Computers, approximately USD$1.2 million over a 12 month period, based on certain milestones related to
additional purchases. These payments are being treated as reduction in Cost of Goods sold upon receipt from the Vendor.

NOTE
13 – SUBSEQUENT EVENTS

On November 10, 2025, with effective date of November 1, 2025, the Board
of Directors agreed to extend the employment contract of Shai Lustgarten, which previously was set to expire in 2027, is now set to expire
November 1, 2029. In addition, Mr. Lustgarten’s base salary was revised to increase 5% per year for cost of living increases. In
the revised employment agreement the Executive is eligible for performance-based bonuses tied to market capitalization, including a $100,000
bonus when the Company’s market capitalization exceeds $10 million for 30 consecutive trading days and additional one-time bonuses
equal to 1% of market capitalization for each subsequent $10 million increase maintained for 30 consecutive trading days, payable in cash
or stock at the Executive’s option. The full employment agreement is attached as an Exhibit to this Form 10Q.

F-12

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

PRELIMINARY
NOTE REGARDING FORWARD-LOOKING STATEMENTS

This
Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of the federal securities laws. Statements that
are not historical facts, including statements about our beliefs and expectations, are forward-looking statements. Forward-looking statements
include statements preceded by, followed by, or that include the words “may”, “could”, “would”, “should”,
“believe”, “expect”, “anticipate”, “plan”, “estimate”, “target”,
“project”, “intend”, “foresee” and similar expressions. These statements include, among others, statements
regarding our expected business outlook, anticipated