Item 1. Legal Proceedings
ITEM 1. LEGAL PROCEEDINGS
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. At this early stage, it is not possible to fully assess the chances of a lawsuit.
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 defense and cross claims against the former consultant and is
evaluating its response to the lawsuit, but plans to vigorously defend the suit.
ITEM 1A. RISK FACTORS
Not applicable.
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES
AND USE OF PROCEEDS.
None.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES.
None.
ITEM 4. MINE SAFETY DISCLOSURES
Not applicable.
Text extracted from the filing as submitted to EDGAR. Formatting, tables and exhibits are simplified for reading; the original document is authoritative for anything you rely on.