Company: OMQS
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001813
Chunk: 448

Company: OMNIQ Corp.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 7
Chunk 448
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 the years ended December 31, 2024 and 2023 totaled
$1.5 million and $2.2 million, respectively. This represents an decrease of $657 thousand or 31%, which is due to reduction in costs for developing software.

Selling,
General and Administrative – Selling, General and Administrative expenses were $19.5 million for the year ended
December 31, 2024, compared to $23 million for the year ended December 31, 2023, representing a decrease of $3.5 million, or 15%. The
change was due to management’s efforts to cut costs.

Depreciation
– Depreciation for the year ended December 31, 2024 was $364 thousand compared to $464
thousand for the year ended December 31, 2023. This represents a decrease of $100 thousand, or 22%, attributable to reduction in fixed
assets.

Intangible
Amortization – Intangible amortization expense for the year ended December 31, 2024 was $915 thousand,
compared to $1.6 million for the year ended December 31, 2023.

Impairment
of Goodwill – During the year ended December 31, 2024, the Company performed and quantitative goodwill impairment
analysis and it was determined no impairment was needed during the year. During the year ended December 31, 2023 the Company
experienced significant decline in our stock price and sustained losses from operations. Therefore, we completed a quantitative
goodwill impairment analysis as of December 31, 2023. The results of the analysis indicated an impairment loss for goodwill related
to acquisitions prior to 2021, and we recorded a non-cash impairment of $14.7 million.

13

Other
Income and Expenses

The
Company incurred $3.5 million in interest expense for the year ended December 31, 2024,
compared to $3.3 million for the year ended December 31, 2023. The interest expense is comprised of interest incurred on promissory notes
payable, the company’s line of credit, and vendor payables.

Foreign
Currency Transactions

The
Company has multiple subsidiaries conducting operations in Israel, therefore there were transactions denominated in currency other than
US dollars for both 2024 and 2023. Foreign transaction gains and losses are reported on the consolidated statement of operations and
comprehensive loss and were included in the amount of loss