Company: OMQS
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010783
Chunk: 30

Company: OMNIQ Corp.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
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 the rate of
20 preferred shares to one share of common stock. As of March 31, 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.

    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 the December
2021, shareholders’ meeting. No shares were issued in the three months ended March 31, 2025 and 14,409 shares were issued during the three months ended March 31, 2024.

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