Company: OMQS
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001813
Chunk: 943

Company: OMNIQ Corp.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 12
Chunk 943
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 Marketing, Inc., HTS Image Processing, Inc., OmniQ Vision Inc., HTS Image Ltd., OmniQ Technologies Ltd., and Dangot Computers Ltd.

All
significant intercompany accounts and transactions have been eliminated in these consolidated financial statements. Business combinations
are included in the consolidated financial statements from their respective dates of acquisition.

Use
of Estimates

We
prepare our consolidated financial statements in accordance with accounting principles generally accepted in the United States of America,
which requires management to use its judgment to make estimates and assumptions that affect the reported amounts of assets and liabilities
and related disclosures at the date of the consolidated financial statements 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