Company: OMQS
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001813
Chunk: 295

Company: OMNIQ Corp.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 4
Chunk 295
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generally 5% shareholders, applying certain look-through rules and aggregation rules which combine unrelated shareholders
that do not individually own 5% or more of the corporation’s stock into one or more “public groups” that may be treated
as 5-percent shareholder) increases by more than 50 percentage points over such stockholders’ lowest percentage ownership during
the testing period (generally three years). In general, the annual use limitation equals the aggregate value of common stock at the time
of the ownership change multiplied by a specified tax-exempt interest rate. The Company has not completed a study as to whether there
is a 382 limitation on its NOLs that will limit or possibly eliminate the use of its NOLs in the future. Company’s Management has
recorded a 100% valuation allowance on the entire NOL as it believes that it is more likely than not that the deferred tax asset associated
with the NOLs will not be realized regardless of whether or not an “ownership change” has occurred.

NOTE 18 – BUSINESS SEGMENT

The Company operates in a single reportable segment,
referred to as providing solutions including hardware, software, communications, and automated management service as an established distributor
of barcode labels, tags, and ribbons, as well as RFID labels and tags. The business is managed by the chief executive officer who is the
Chief Operating Decision Maker (CODM). The CODM evaluates segment performance based on operating income (loss) for purposes of allocating
resources and evaluating financial performance.  The accounting policies of our single reportable segment are the same as those for
the Company as a whole.

NOTE
19 – SUBSEQUENT EVENTS

In
March 2025, the Company was named a defendant in a case involving a consultant, who is a related party, who was terminated and who claims
he is owed approximately $389,000 in unpaid fees and commissions.  The Company believes it has multiple defense and cross claims
against the former consultant and is evaluating its response to the lawsuit, but plans to vigorously defend the suit.

F-26

EXHIBIT
INDEX

    Exhibit
    No.
     
    Description

    (a)

    Exhibits.

    3.1
     
    Form
    of Certificate of Amendment to the Certificate of Incorporation, as amended, dated November 18, 2019 incorporated by reference to
    Exhibit 3.1 to the Company’s Current Report on Form 8-K,