Company: OMQS
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001813
Chunk: 553

Company: OMNIQ Corp.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 7A
Chunk 553
---
  
    Property and equipment,
    Net 
    $721  
    $1,066 

Depreciation
expense for the years ended December 31, 2024 and 2023 was approximately $364 thousand and $464 thousand, respectively.

    F-15

NOTE
9 – GOODWILL AND INTANGIBLE ASSETS

Impairment
of Goodwill – During the year ended December 31, 2023 the Company experienced significant decline in our stock price and sustained
losses from operations. Therefore, we completed a quantitative goodwill impairment analysis as of December 31, 2023. The results of the
analysis during the fourth quarter indicated an impairment loss for goodwill related to acquisitions prior to 2021, and we recorded a
non-cash impairment of $14.7
million. Accumulated impairment of goodwill for the years ended
December 31, 2024 and 2023 was $0 and $14.7
million, respectively.

Identifiable
intangible assets are stated at cost, net of accumulated amortization. The assets are being amortized on the straight-line method over
the estimated useful lives ranging from 3
to 11
years. Amortization expense for the years ended December 31,
2024 and 2023 was $915 thousand and $1.6
million, respectively

Goodwill
assets consisted of the following as of December 31:

 SCHEDULE OF GOODWILL ASSETS CONSISTED

    In thousands
     
    2024
      
    2023 

    Goodwill balance, beginning of
    year
     
    $
    1,788
      
    $16,542 

    Impairment loss

    -
      
     (14,686)

    Addition of Codeblocks

    1,204
      
     - 

    Effective foreign exchange
    rates

    (74
    ) 
     (68)

    Goodwill balance, end
    of year
     
    $
    2,918
      
    $1,788 

Intangible
assets consisted of the following as of December 31:

 SCHEDULE OF GOODWILL AND INTANGIBLE ASSETS

    In thousands
     
    2024
      
    2023 

    Trade names

    6,217
      
     6,