Company: OMQS
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001641172-25-024877
Chunk: 66

Company: OMNIQ Corp.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 8
Chunk 66
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2025, the Company received Employee Retention Credit refunds in the amount of approximately $1.05 million
for returns filed for prior years.

NOTE
10 – STOCKHOLDERS’ EQUITY

PREFERRED
STOCK

Series
A

As
of June 30, 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 June 30, 2025, there was 1 preferred share designated and no preferred shares outstanding.

Series
C

As
of June 30, 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 June 30, 2025, the accrued dividends on the
Series C Preferred Stock was $226 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 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