Company: OMQS
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010783
Chunk: 23

Company: OMNIQ Corp.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 23
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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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 three-month period ended March 31, 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