Company: OMQS
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001813
Chunk: 722

Company: OMNIQ Corp.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 9A
Chunk 722
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 professionals has the knowledge
and expertise to simplify the integration process for our customers, and our team delivers proven problem-solving solutions backed by
numerous customer references. We offer comprehensive packaged and configurable software, and we are a leading provider of best-in-class
mobile and wireless equipment.

Our
customers include government agencies and leading Fortune 500 companies from diverse sectors, including healthcare, food and beverage,
manufacturing, retail, distribution, and transportation and logistics. Since 2014, our annual consolidated revenues have grown to more
than $73 million with clients in more than 40 countries. We currently engage with several billion-dollar markets with double-digit growth,
including the Global Safe City market and the Ticketless Safe Parking market.

    F-8

NOTE
2 –SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Principles
of Consolidation and Basis of Presentation

Our
consolidated financial statements include the financial position and results of operations of OMNIQ Corp. and its wholly owned subsidiaries:
Quest Marketing, Inc., HTS Image Processing, Inc., OmniQ Vision Inc., HTS Image Ltd., OmniQ Technologies Ltd., and Dangot Computers Ltd.

All
significant intercompany accounts and transactions have been eliminated in these consolidated financial statements. Business combinations
are included in the consolidated financial statements from their respective dates of acquisition.

Use
of Estimates

We
prepare our consolidated financial statements in accordance with accounting principles generally accepted in the United States of America,
which requires management to use its judgment to make estimates and assumptions that affect the reported amounts of assets and liabilities
and related disclosures at the date of the consolidated financial statements and the reported amounts of revenues and expenses during
the reported period. These assumptions and estimates could have a material effect on our consolidated financial statements. Actual results
may differ materially from those estimates. We review our estimates on an ongoing basis based on information currently available, and
changes in facts and circumstances may cause us to revise these estimates.

Cash

Cash
consists of petty cash, checking, savings, and money market accounts. The Company maintains its cash in bank deposit accounts which,
at times, may exceed federally insured limits.

Accounts
Receivable

We
manage credit risk associated with our accounts receivables at the customer level. Because the same customers typically generate the
revenues that are accounted for under both Accounting Standards Codification Topic 606, Revenue from Contracts with Customers (Topic
606) and Accounting Standards Codification Topic 326, Credit Losses (Topic 326