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.
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