Company: OMQS
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001813
Chunk: 11

Company: OMNIQ Corp.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 11
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 expenses in our consolidated financial statements. We base our estimates and judgments on historical
experience and other assumptions that we believe are reasonable under the circumstances. These assumptions, estimates, and/or judgments,
however, are often subjective and may change based on changing circumstances or changes in our analyses. If actual amounts are ultimately
different from our estimates, the revisions are included in our results of operations for the period in which the actual amounts first
become known. We believe the following critical accounting policies could potentially produce materially different results if we were
to change underlying assumptions, estimates, and/or judgments. See also note 2 to our consolidated financial statements for a summary
of our significant accounting policies.

Revenue
Recognition

We
determine revenue recognition through the following steps: (1) identification of the contract with a customer; (2) identification of
the performance obligations in the contract; (3) determination of the transaction price; (4) allocation of the transaction price to the
performance obligations in the contract; and (5) recognition of revenue when, or as, a performance obligation is satisfied.

We
combine contracts with the same customer into a single contract for accounting purposes when the contracts are entered into at or near
the same time and the contracts are negotiated as a single commercial package, consideration in one contract depends on the other contract,
or the services are considered a single performance obligation. Our contracts are typically governed by a customer purchase order or
work order. The contract generally specifies the delivery of what constitutes a single performance obligation. If an arrangement involves
multiple performance obligations, the items are analyzed to determine the separate units of accounting, whether the items have value
on a standalone basis and whether there is objective and reliable evidence of their standalone selling price. The total contract transaction
price is allocated to the identified performance obligations based upon the relative standalone selling prices of the performance obligations.
The standalone selling price is based on an observable price for services sold to other comparable customers.

As
discussed in more detail below, revenue is recognized when a customer obtains control of promised goods or services under the terms of
a contract and is measured as the amount of consideration we expect to receive in exchange for transferring goods or providing services.
We do not have any material extended payment terms, as payment is due at or shortly after the time of the sale. Sales, value-added and
other taxes collected concurrently with revenue producing activities are excluded from revenue.

A
contract liability is recognized as deferred revenue when we invoice customers, or receive customer cash payments, in advance