Company: OMQS
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001813
Chunk: 194

Company: OMNIQ Corp.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 3
Chunk 194
---
 price; (4) allocation of the transaction price to the
performance obligations in the contract; and (5) recognition of revenue when, or as, a performance obligation is satisfied.

We
combine contracts with the same customer into a single contract for accounting purposes when the contracts are entered into at or near
the same time and the contracts are negotiated as a single commercial package, consideration in one contract depends on the other contract,
or the services are considered a single performance obligation. Our contracts are typically governed by a customer purchase order or
work order. The contract generally specifies the delivery of what constitutes a single performance obligation. If an arrangement involves
multiple performance obligations, the items are analyzed to determine the separate units of accounting, whether the items have value
on a standalone basis and whether there is objective and reliable evidence of their standalone selling price. The total contract transaction
price is allocated to the identified performance obligations based upon the relative standalone selling prices of the performance obligations.
The standalone selling price is based on an observable price for services sold to other comparable customers.

As
discussed in more detail below, revenue is recognized when a customer obtains control of promised goods or services under the terms of
a contract and is measured as the amount of consideration we expect to receive in exchange for transferring goods or providing services.
We do not have any material extended payment terms, as payment is due at or shortly after the time of the sale. Sales, value-added and
other taxes collected concurrently with revenue producing activities are excluded from revenue.

A
contract liability is recognized as deferred revenue when we invoice customers, or receive customer cash payments, in advance of satisfying
the related performance obligation(s) under the terms of a contract. Deferred revenue is recognized as revenue when we have satisfied
the related performance obligation.

    F-11

We
have four main revenue streams: (1) Hardware sales, (2) Hardware installation/configuration, (3) Hardware service contracts, and (4)
Third-party software sales. For all these revenue streams, our performance obligations are satisfied at a point in time, and therefore,
revenue is recognized at point in time when a customer takes control of the good or asset created by the service. Factors that may indicate
transfer of control are when we have the right to receive payment for the good or service, when the legal title of the asset as been
transferred, physical possession of the asset has been transferred, the customer obtains the significant risks and rewards of ownership
of the asset, and the customer accepts the asset.