Company: OMQS
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001641172-25-024877
Chunk: 59

Company: OMNIQ Corp.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 8
Chunk 59
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NOTE
1 – ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The
condensed consolidated financial statements include the accounts of OMNIQ Corp, and its wholly owned subsidiaries, referred to herein
as “we,” “us,” “OMNIQ,” or the “Company.” Intercompany accounts and transactions have
been eliminated. In the opinion of the Company’s management, the condensed consolidated financial statements reflect all adjustments,
which are normal and recurring in nature, necessary for fair financial statement presentation. The preparation of these condensed consolidated
financial statements and accompanying notes in conformity with U.S. generally accepted accounting principles requires management to make
estimates and assumptions that affect the amounts reported. Actual results could differ materially from those estimates. These condensed
consolidated financial statements and accompanying notes should be read in conjunction with the Company’s annual consolidated financial
statements and accompanying notes included in its Annual Report on Form 10-K for the year ended December 31, 2024 (the “2024 Form
10-K”).

We
describe our significant accounting policies in Note 2 of the notes to consolidated financial statements in the 2024 Form 10-K. During
the six-month period ended June 30, 2025, there were no significant changes to those accounting policies other than below.

Accounting
Standards Updates

ASU
2023-09, “Income Taxes (Topic 740), Improvement to Income Tax Disclosures.” The amendments in ASU 2023-09 require an entity
to disclose specific categories in the rate reconciliation and provide additional information for reconciling items that meet a quantitative
threshold, which is greater than five percent of the amount computed by multiplying pretax income by the entity’s applicable statutory
rate, on an annual basis. Additionally, the amendments in this ASU require an entity to disclose the amount of income taxes paid (net
of refunds received) disaggregated by federal, state, and foreign taxes and the amount of income taxes paid (net of refunds received)
disaggregated by individual jurisdictions that are equal to or greater than five percent of total income taxes paid (net of refunds received).
Lastly, the amendments in this ASU require an entity to disclose income (or loss) from continuing operations before income tax expense
(or benefit) disaggregated between domestic and foreign and income tax expense (or benefit) from continuing operations disaggregated
by federal, state, and foreign. This ASU is effective for annual periods beginning after December 15, 2024