Company: OMQS
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001813
Chunk: 162

Company: OMNIQ Corp.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 3
Chunk 162
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. Sales returns during any particular year
are so small and so infrequent that management determined that any material reserve against sales returns would likely not be appropriate.

Definite-lived
Intangible Assets Impairment Evaluation

The
Company periodically evaluates the carrying value of definite-lived intangibles when events or changes in circumstances indicate that
the carrying value may not be recoverable. Factors the Company considers important which could trigger an impairment review include,
but are not limited to, significant under-performance relative to historical or projected future operating results, significant changes
in the manner of its use of acquired assets or its overall business strategy, and significant industry or economic trends. The Company
amortizes definite-lived intangible assets on a straight-line basis over their useful lives. The Company recorded no impairment loss
for definite-lived intangible assets during the years ended December 31, 2024 and 2023.

When
the Company determines that the carrying value of a long-lived asset may not be recoverable based upon the existence of one or more of
the above indicators, the Company determines the recoverability by comparing the carrying amount of the asset to net future undiscounted
cash flows that the asset is expected to generate and recognizes an impairment charge equal to the amount by which the carrying amount
exceeds the fair market value of the asset.

If
the Company’s revenues or other estimated operating results are not achieved at or above our forecasted level, and the Company
is unable to recover such costs through price increases, the carrying value of certain of the Company’s intangible assets may prove
to be unrecoverable and we may incur impairment charges of definitive-live intangible assets.

Indefinite-lived
Intangible Assets, Including Goodwill

Indefinite-lived
intangible assets, including goodwill, are not amortized but are required to be reviewed for impairment at least annually or when events
or circumstances indicate that carrying value may exceed fair value. The Company is permitted the option to first assess qualitative
factors to determine whether the existence of events and circumstances indicates that it is more likely than not that the fair value
of the Company’s reporting unit is less than its corresponding carrying value. If, after assessing the totality of events and circumstances,
the Company concludes that it is not more likely than not that the fair value of the reporting unit is less than its corresponding carrying
value then the Company is not required to take further action. However, if the Company concludes otherwise, then the Company must calculate
the fair value of the