Company: OMQS
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001813
Chunk: 470

Company: OMNIQ Corp.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 7
Chunk 470
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 communicating the critical audit
matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.

Goodwill
and Intangible Assets— Refer to Note 9 to the financial statements

As
described in Note 9 to the financial statements, the Company has $4.7million of intangible assets and $2.9 million of goodwill. The Company
evaluates its goodwill and intangible assets at least annually or more frequently when events or changes in circumstances indicate the
carrying value may not be recoverable. In consideration of impairment, the Company employed a third-party specialist to prepare a valuation
based on management’s estimates and market information.

We
identified valuation of these assets as a critical audit matter because of the significant estimates and assumptions made by management
to estimate fair value, including the impact of forecasted growth, and the difference between the fair values and the carrying values
as of December 31, 2024. This required a high degree of auditor judgment and an increased extent of effort, including the need to involve
our fair value specialist, when performing audit procedures to evaluate the reasonableness of management’s estimates and assumptions
related to certain assumptions within the projected cash flows.

Addressing
the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated
financial statements. We followed professional standards relating to the use of specialists employed by management. These procedures
included, among others, evaluating the expertise and independence of third-party specialists, gaining an understanding of management’s
process for developing the fair value estimate, and assessing the inputs and key assumptions used to develop the models. We used professionals
inside our firm with specialized skills and knowledge to assess the methodology.

/s/
Haynie & Company

Haynie & Company 

Salt
Lake City, Utah

March 31, 2025

We
have served as the Company’s auditor since 2019.

F-2

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To
the Board of Directors and Stockholders of

OMNIQ
CORP.

Opinion
on the Financial Statements

We
have audited the accompanying consolidated balance sheet of Dangot Computers Ltd. (the “Company”) as of December 31, 2024,
and 2023, and the related consolidated statements of operations and comprehensive loss, change in stockholders’ equity (deficit). and
cash flows for each of the years in the two-year period