Company: OMQS
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001813
Chunk: 683

Company: OMNIQ Corp.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 9
Chunk 683
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 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.

    F-20

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
$389,000 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.

The
company is not a party to any other pending material legal proceeding in which it is defending against any claims of material significance.
To the knowledge of management, no federal, state or local government agency is presently contemplating any proceeding against the Company.
To the knowledge of management, no director, executive officer or affiliate of the Company, any owner of record, or beneficiary of more
than five percent of the Company’s Common Stock is a party adverse to the Company or has a material interest adverse to the Company
in any proceeding.

NOTE
14 – STOCKHOLDERS’ EQUITY

PREFERRED
STOCK

Series
A

As
of December 31, 2024 and 2023, there were 2,000,000 Series A preferred shares authorized and zero Series A preferred shares outstanding.
The board of directors had previously set the voting rights for the preferred stock at 1 share of preferred to 13 common shares.

Series
B

As
of December 31, 2024 and 2023, there was one preferred share authorized and zero preferred shares outstanding.

Series
C

As
of December 31, 2024 and 2023, there were 3,000,000 Series C Preferred Shares (“Series C”) authorized with 502,000 and 502,000
issued and outstanding, respectively. The Series C shares have preferential rights above common shares and the Series B Preferred Shares,
are 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
December 31, 2024 and 2023, the accrued dividends on the Series C Preferred