Company: OMQS
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001813
Chunk: 1090

Company: OMNIQ Corp.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 16
Chunk 1090
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 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), the discussions below on credit risk and
our allowances for doubtful accounts address our total revenues from Topic 606 and Topic 326.

Pursuant
to Topic 326 for our accounts receivables, we maintain an allowance for doubtful accounts that reflects our estimate of our expected
credit losses. Our allowance is estimated using a loss-rate model based on delinquency. The estimated loss rate is based on our historical
experience with specific customers, our understanding of our current economic circumstances, reasonable and supportable forecasts, and
our own judgment as to the likelihood of ultimate payment based upon available data. We perform credit evaluations of customers and establish
credit limits based on reviews of our customers’ current credit information and payment histories. We believe our credit risk is
somewhat mitigated by our geographically diverse customer base and our credit evaluation procedures. The actual rate of future credit
losses, however, may not be similar to past experience. Our estimate of doubtful accounts could change based on changing circumstances,
including changes in the economy or in the particular circumstances of individual customers. Accordingly, we may be required to increase
or decrease our allowance for doubtful accounts.

Inventory

Substantially
all inventory consists of raw materials and finished goods and are valued at the lower of historic cost or net realizable value; where
net realizable value is considered to be the estimated selling price in the ordinary course of business, less reasonably predictable
cost of completion, disposal and transportation. Historic inventory costs are calculated on a first-in, first-out basis or specific cost.

Property
and Equipment

Property
and equipment are recorded at cost and depreciated on a straight