Company: OMQS
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001813
Chunk: 196

Company: OMNIQ Corp.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 3
Chunk 196
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ization method for compensation cost.

The
fair value of each stock option grant and warrant 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.

    F-12

Advertising

The
Company expenses marketing and advertising costs as incurred. During 2024 and 2023, the Company spent $216 thousand and $379 thousand,
respectively, on marketing, trade show, and advertising.

Foreign
Currency Translation

Our
consolidated financial statements are presented in U.S. dollars. The functional currency for the Company is U.S. 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