Company: OMQS
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001813
Chunk: 118

Company: OMNIQ Corp.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 2
Chunk 118
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 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 reporting unit and compare it with its carrying amount, including Indefinite-lived intangible assets and recognize
impairment equal to the difference between the carrying amount of the reporting unit and its fair value, considering the related income
tax effect from any tax-deductible goodwill.

Accounts
Payable

Accounts
payable are made up of payables due to vendors in the ordinary course of business as of December 31, 2024 and 2023. One vendor made
up 47% and two vendors made up 38% of our purchases during the year ended December 31, 2024 and 2023, respectively.

Leases

We
determine whether an arrangement is a lease at the inception of the arrangement based on the terms and conditions in the contract. A
contract contains a lease if there is an identified asset, and we have the right to control the asset for a period of time in exchange
for consideration. Lease arrangements can take several forms. Some arrangements are clearly within the scope of lease accounting, such
as a real estate contract that provides an explicit contractual right to use a building for a specified period of time in exchange for
consideration. However, the right to use an asset can also be conveyed through arrangements that are not leases in form, such as leases
embedded within service and supply contracts. We analyze all arrangements with potential embedded leases to determine if an identified
asset is present, if substantive substitution rights are present, and if the arrangement provides the customer control of the asset.

    F-10

Our
lease portfolio is substantially comprised of operating leases related to leases of real estate. From time to time, we may also lease
various types of small equipment and vehicles.

Operating
lease right-of-use (“ROU”) assets represent our right to use an individual asset for the lease term and lease liabilities
represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at
the commencement date based on the present value of lease