Company: OMQS
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001813
Chunk: 609

Company: OMNIQ Corp.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 8
Chunk 609
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 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 from investments by owners and distributions
to owners. Our other comprehensive income (loss) is composed of foreign currency translation adjustments.

Net
Loss Per Common Share

Net
loss per share is provided in accordance with FASB ASC 260-10, Earnings per Share. Basic net loss per common share (“EPS”)
is computed by dividing income available to common stockholders by the weighted-average number of common shares outstanding for the period.
Diluted earnings per share is computed by dividing net income by the weighted average shares outstanding, assuming all dilutive potential
common shares were issued, unless doing so is anti-dilutive. The weighted-average number of common shares outstanding for computing basic
EPS for the years ended December 31, 2024 and December 31, 2023 were 10,696,435 and 8,412,494 and, respectively. Diluted net loss per
share of common stock is the same as basic net loss per share of common stock because the effects of potentially dilutive securities
are antidilutive.

The
following table sets forth the potentially dilutive securities as of December 31, 2024 and 2023, excluded from the computation of diluted
net loss per share because such securities have an anti-dilutive impact due to losses