Company: OMQS
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001641172-25-024877
Chunk: 45

Company: OMNIQ Corp.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 1
Chunk 45
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 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 financial performance.
The accounting policies of our single reportable segment are the same as those for the Company as a whole.

Note
13 – DISCONTINUED OPERATIONS

On July 11, 2025, OmniQ Corp., a Delaware corporation
(the “Company”), together with its subsidiaries, Quest Marketing, Inc., HTS Image Processing, Inc., OmniQ Vision Inc., HTS
Image Ltd., OmniQ Technologies Ltd., and Dangot Computers, Ltd. (collectively, the “Sellers”), entered into an Asset Purchase
Agreement (the “Purchase Agreement”) with Summit Junction Holdings LLC, a Delaware limited liability company (the “Buyer”).

Pursuant to the Purchase Agreement, the Sellers
agreed to sell, and Buyer agreed to purchase, substantially all of the