Company: OMQS
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023481
Chunk: 6

Company: OMNIQ Corp.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 6
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A

As
of September 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 250 common shares.

Series
B

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

Series
C

As
of September 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 September 30, 2025, the accrued dividends on
the Series C Preferred Stock was $219 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.

COMMON
STOCK

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, consultants, 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 the December 2021, shareholders’ meeting. No options were issued in the nine months
ended September 30, 2025, except those mentioned below.

In
December 2015, our Board of Directors approved the OMNIQ. Employee Stock Purchase Plan (the “ESPP”).