Company: OMQS
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001641172-25-024877
Chunk: 44

Company: OMNIQ Corp.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 1
Chunk 44
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5, 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 the December 2021, shareholders’ meeting.

No
shares were issued in the six months ended June 30, 2025 and 17,089 shares were issued during the six months ended June 30, 2024.

During
the quarter, the Company issued stock options or warrants to 47 employees and consultants for the purchase of an aggregate 1,035,000
shares of stock at between $0.06
and $0.07
per share. The Company’s CEO was issued options for 50,000
shares at $0.07
and warrants were issued to a company he is affiliated with
for 100,000
shares at exercise price of $0.07
per share, which was above the market price at the time of
issuance.