Company: OMQS
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001813
Chunk: 379

Company: OMNIQ Corp.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 6
Chunk 379
---
 December 31, 2023. During the year ended December 31, 20243,
the Company made payments of $3.2 million on its notes payable, compared to the year ended December 31, 2023, when the Company made payments
of $1.4 million on its notes payable, including its Supplier Secured Promissory note and related party notes payable. Additionally, the
Company received $292 thousand in the year ended December 31, 2024 on its line of credit and had paid $1.6 million on the Company’s
line of credit during the year ended December 31, 2023. The Company raised no funds in the year ended December 31, 2024 and raised net
proceeds of $2.4 million for the year ended December 31, 2024.

14

Off-Balance
Sheet Arrangements

The
Company currently does not have any off-balance sheet arrangements.

Critical
Accounting Policies

We
prepare our consolidated financial statements in accordance with accounting principles generally accepted in the United States of America.
The application of many accounting principles requires us to make assumptions, estimates, and/or judgments that affect the reported amounts
of assets, liabilities, revenues, and expenses in our consolidated financial statements. We base our estimates and judgments on historical
experience and other assumptions that we believe are reasonable under the circumstances. These assumptions, estimates, and/or judgments,
however, are often subjective and may change based on changing circumstances or changes in our analyses. If actual amounts are ultimately
different from our estimates, the revisions are included in our results of operations for the period in which the actual amounts first
become known. We believe the following critical accounting policies could potentially produce materially different results if we were
to change underlying assumptions, estimates, and/or judgments. See also note 2 to our consolidated financial statements for a summary
of our significant accounting policies.

Revenue
Recognition

We
determine revenue recognition through the following steps: (1) identification of the contract with a customer; (2) identification of
the performance obligations in the contract; (3) determination of the transaction price; (4) allocation of the transaction price to the
performance obligations in the contract; and (5) recognition of revenue when, or as, a performance obligation is satisfied.

We
combine contracts with the same customer into a single contract for accounting purposes when the contracts are entered into at or near
the same time and the contracts are negotiated as