QUANTUM X LABS INC. 10-K

ITEM 5. MARKET FOR REGISTRANT’S COMMON STOCK, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASE OF EQUITY Market Information Our Common Stock is currently quoted on the OTCQB market under the symbol VBIX. We plan to effect the Planned Reverse Split, and, accordingly, share amounts, per share data, share prices, exercise prices or conversion rates in this annual report on Form 10-K are subject to change following the effectiveness of the Planned Reverse Split. The Planned Reverse Split will not change the authorized number of shares or the par value of our common stock. 18 Holders of Common Stock As of December 31, 2021, there were approximately 2,692 stockholders of record of our Common Stock and 34,753,669 shares of our Common Stock outstanding. Our transfer agent is Transfer Online, 512 SE Salmon Street, Portland, OR 97214-3444, Phone: (503) 227-2950. Dividends Holders of Common Stock are entitled to dividends if declared by our board of directors, out of funds legally available therefore. We have never declared cash dividends on our Common Stock and our board of directors does not anticipate paying cash dividends in the foreseeable future as it intends to retain future earnings to finance the growth of our businesses. Outstanding Warrants The following table summarizes information of outstanding warrants as of December 31, 2021: Warrants Warrant Term Exercise Price Exercisable Class J Warrants 3,649,318 July 2029 $ 0.48 3,649,318 Class K Warrants 3,649,318 July 2029 $ 0.80 3,649,318 In connection with the Share Exchange Agreement, upon the earlier of: (a) the launch of a live video product to an American consumer in the United States by Viewbix Israel, or (b) the launch of an interactive television product to an American consumer in the United States by Viewbix Israel, we will issue to Gix Internet an additional 1,642,193 shares of restricted Common Stock of the Company. Securities Authorized for Issuance Under Equity Compensation Plans The following table summarizes information of outstanding options as of December 31, 2021: Number of securities to be issued upon exercise of outstanding options, warrants and rights Weighted-average exercise price of outstanding options, warrants and rights Number of securities remaining available for future issuance Plan Category Equity compensation plans approved by security holders 2017 Employee Incentive Plan - - 133,333 Recent Sales of Unregistered Securities On December 18, 2020, we entered into a Stock Subscription Agreement (the “Subscription”) with certain investors (the “Investors”) in connection with the sale and issuance of an aggregate of 3,000,000 shares of Common Stock, at a purchase price of US$0.01 per share, and for an aggregate purchase price of US$30,000. In addition, and on the same date, we entered into a Loan Agreement (the “Loan Agreement”) with the Investors, pursuant to which the Investors lent an aggregate of $69,000 (the “Principal Amount”). In accordance with the terms of the Loan Agreement, we repaid the interest on the Principal Amount (8% compounded annually) to the Investors in the form of an issuance of an aggregate of 552,000 shares of Common Stock, at a price per share of $0.01. The shares of Common Stock were issued to the Investors pursuant to Regulation S of the Securities Act of 1933, as amended. In January 2022, the Investors expressed their intention to convert the remaining sum of the Principal Amount to shares of our Common Stock and accordingly, we agreed to extend the repayment date. 19 ITEM 6. SELECTED FINANCIAL DATA Not required for smaller reporting companies.