Company: OMQS
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001813
Chunk: 352

Company: OMNIQ Corp.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 5
Chunk 352
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 incorporate assumptions and internal projections of expected future cash flows and operating
plans. None of the goodwill is deductible for income tax purposes.

    F-16

Purchased
intangible assets with finite useful lives are amortized over their respective estimated useful lives (using an accelerated method for
customer relationships and trade names) to their estimated residual values, if any. The Company’s finite-lived intangible assets
consist of customer relationships, contractor and resume databases, trade names, and internal use software and are being amortized over
periods ranging from two to nine years. Purchased intangible assets are reviewed annually to determine if facts and circumstances indicate
that the useful life is shorter than originally estimated or that the carrying amount of assets may not be recoverable. If such facts
and circumstances exist, recoverability is assessed by comparing the projected undiscounted net cash flows associated with the related
asset or group of assets over their remaining lives against their respective carrying amounts. Impairments, if any, are based on the
excess of the carrying amount over the fair value of those assets. If the useful life is shorter than originally estimated, the rate
of amortization is accelerated, and the remaining carrying value is amortized over the new shorter useful life. No impairments were identified
or changes to estimated useful lives have been recorded as of December 31, 2024 and 2023.

NOTE
10 – CREDIT FACILITIES AND LINE OF CREDIT

We
maintain operating lines of credit, factoring, and revolving credit facilities with banks and finance companies to provide working capital.

On
March 25, 2022 we entered into a Business Finance Agreement (the “BFA”) with BridgeBank a division of Western Alliance Bank
(“BridgeBank”) to establish a credit facility, whereby we could obtain short-term financing by selling and assigning acceptable
accounts receivables to BridgeBank. Gross proceeds received during the years ended December 31, 2024 and 2023 were $0 million and $35
million, respectively. This agreement was terminated in 2023.

On
January 18, 2024, the Company’s wholly owned subsidiary, Quest Marketing, Inc. (“Quest”) entered into a Purchase and
Sale Agreement (the “Purchase and Sale Agreement”) with Prestige Capital Finance, LLC (“Prestige”), in which
Quest has sold, transferred and assigned all of its rights, title and interest to specific accounts receivable owed to Quest. The maximum
outstanding