Company: OMQS
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001641172-25-024877
Chunk: 67

Company: OMNIQ Corp.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 8
Chunk 67
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 the December 2021, shareholders’ meeting.

No
shares were issued in the six months ended June 30, 2025 and 17,089 shares were issued during the six months ended June 30, 2024.

During
the quarter, the Company issued stock options or warrants to 47 employees and consultants for the purchase of an aggregate 1,035,000
shares of stock at between $0.06
and $0.07
per share. The Company’s CEO was issued options for 50,000
shares at $0.07
and warrants were issued to a company he is affiliated with
for 100,000
shares at exercise price of $0.07
per share, which was above the market price at the time of
issuance. The options have a 5
year expiration period and vested immediately.
Approximately $63,000
was booked as a compensation expense related to these options
and warrants.

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 software, communications, and automated
management service. 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