Company: OMQS
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001813
Chunk: 90

Company: OMNIQ Corp.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 2
Chunk 90
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 stock-based compensation expense according to the provisions of ASC Topic 718, Compensation – Stock Compensation (“Topic
718”). Topic 718 requires all share-based payments to employees, including grants of employee stock options, to be recognized in
the financial statements based on their fair values. Under the provisions of Topic 718, the Company determines the appropriate fair value
model to be used for valuing share-based payments and the amortization method for compensation cost.

The
fair value of each stock option grant is estimated on the date of grant using the Black-Scholes option-pricing model. The Company estimates
the expected volatility and expected option life consistent with Topic 718. The expected volatility of the Company’s common stock
at the date of grant is estimated based on a historic volatility rate and the expected option life is calculated based on historical
stock options as the best estimate of future exercise patterns. The dividend yield assumption is based on historical and anticipated
dividend payouts. The risk-free interest rate assumption is based on observed US treasury rates consistent with the expected life of
each stock option grant. The Company uses historical data to estimate pre-vesting option forfeitures and records stock-based compensation
expense only for those awards that are expected to vest. Compensation expense is recorded for all stock options expected to vest based
on the amortization of the fair value at the date of grant on a straight-line basis primarily over the vesting period of the options.

Foreign
conflicts

We
are closely monitoring developments in the war between Israel and Hamas that began on October 7, 2023 including potential impacts to
The Companies business, customers, suppliers, employees, and operations in Israel, the Middle East and elsewhere. At this time, impacts
to The Company are expected to be minimal but is subject to change given the volatile nature of the situation.

Additional
accounting policies can be found in Note 16 to our Audited Consolidated Financial Statements.

Recently adopted accounting pronouncements

In November 2023, the Financial Accounting Standards
Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2023-07, Segment Reporting (Topic 280): Improvements
to Reportable Segment Disclosures, which requires retrospective disclosure of significant segment expenses and other segment items on
an annual and interim basis. Additionally, it requires disclosure of the title and position of the Chief Operating Decision Maker (“CODM”).
This ASU will be effective for the Company’s fiscal December 31, 2024 year-end and interim