Company: OMQS
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001813
Chunk: 416

Company: OMNIQ Corp.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 6
Chunk 416
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. dollars. Transactions
in currencies other than the functional currency are recorded using the appropriate exchange rate at the time of the transaction. All
our continuing operations are conducted in U.S. dollars except for subsidiaries located in Israel. The records of the Israeli operations
were maintained in the local currency and translated to the reporting currency as follows: assets and liabilities are translated using
the balance sheet period-end date exchange rate. Expenses and income are translated using the weighted average exchange rates for the
reporting period. Foreign translation gains and losses are reported on the consolidated statement of operations and comprehensive loss
and were included in the amount of loss from comprehensive income. The aggregate foreign currency transaction loss included in net income
for the years ended December 31, 2024 and 2023 was $735 thousand and $340 thousand, respectively.

Income
Taxes

We
account for our income taxes in accordance with Income Taxes Topic of the FASB ASC 740, which requires recognition of deferred tax assets
and liabilities for future tax consequences attributable to differences between the financial statement carrying amounts of existing
assets and liabilities and their respective tax bases and tax credit carry forwards. Deferred tax assets, liabilities, and income taxes
are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected
to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in operations in
the period that includes the enactment date. Income tax expense is based on reported earnings before income taxes.

Our
income is subject to taxation in both the U.S. and a foreign jurisdiction, Israel. Significant judgment is required in evaluating the
Company’s tax positions and determining its provision for income taxes. The Company establishes reserves for income-tax-related
uncertainties based on estimates of whether, and the extent to which, additional taxes will be due. These reserves for tax contingencies
are established when we believe positions do not meet the more-likely-than-not recognition threshold. We adjust uncertain tax liabilities
in light of changing facts and circumstances, such as the outcome of a tax audit or lapse of a statute of limitations. The provision
for income taxes includes the impact of uncertain tax liabilities and changes in liabilities that are considered appropriate.

Comprehensive
Income (Loss)

Comprehensive
income (loss) is defined as a change in equity of a business enterprise during a period from transactions and other events and circumstances
from non-owner sources and includes all changes in equity during a period except those resulting