Company: OMQS
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001813
Chunk: 578

Company: OMNIQ Corp.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 8
Chunk 578
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, there is a risk that material misstatements may not be prevented or detected on a timely basis by
internal control over financial reporting. It is possible to design safeguards to reduce, but not eliminate, this risk. Management is
responsible for establishing and maintaining adequate internal control over financial reporting for the Company.

Management
has used the framework set forth in the report entitled Internal Control—Integrated Framework published by the Committee of Sponsoring
Organizations of the Treadway Commission (2013 framework), known as COSO, to evaluate the effectiveness of our internal control over
financial reporting.

A
material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is
a reasonable possibility that a material misstatement of the Company’s annual or interim financial statements will not be prevented
or detected on a timely basis. Based on such evaluation, our CEO concluded that, as of December 31, 2024, our internal controls over
financial reporting were not effective.

As
a result of our evaluation, we identified a material weakness in our controls related to segregation of duties and other immaterial weaknesses
in several areas of data management and documentation.

18

Our
management is composed of a small number of professionals resulting in a situation where limitations on segregation of duties exist.
Accordingly, and as a result of the material weakness identified above, we have concluded that the control deficiencies result in a reasonable
possibility that a material misstatement of the annual or interim financial statements may not be prevented on a timely basis by the
Company’s internal controls. We continue to employ and refine a structure in which critical accounting policies, issues and estimates
are identified, and together with other complex areas, are subject to multiple reviews by executives. In addition, we evaluate and assess
our internal controls and procedures regarding our financial reporting, utilizing standards incorporating applicable portions of the
Public Company Accounting Oversight Board’s 2009 Guidance for Smaller Public Companies in Auditing Internal Controls Over Financial
Reporting as necessary on an on-going basis.

While
the material weakness set forth above was the result of the scale of the Company’s operations and is intrinsic to its small size,
the Company believes the risk of material misstatements relative to financial reporting are minimal.

This
annual report does not include an attestation report of our registered public accounting firm regarding internal control over financial
reporting. Management’s report was not subject to attestation by its registered public accounting firm pursuant to the Dodd-Frank
Wall Street Reform and Consumer