Company: MYSZ
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023456
Chunk: 97

Company: My Size, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 97
---
ASC”) Topic 606, Revenue from Contracts with
    Customers (“ASC 606”). Under ASC 606, revenue is recognized upon transfer of control of promised goods and services to
    customers in an amount that reflects the consideration the Company expects to receive for those goods and services. The Company generates
    the majority of its revenue from its marketplaces, which allows its buyers to browse and purchase resale items for apparel, shoes
    and accessories on behalf of sellers. The Company recognizes revenue through the following steps: (1) identification of the contract,
    or contracts, with the customer; (2) identification of the performance obligations in the contract; (3) determination of the transaction
    price; (4) allocation of the transaction price to the performance obligations in the contract; and (5) recognition of revenue when,
    or as, it satisfies a performance obligation.

    Both
    buyers and sellers may be customers in the Company’s revenue arrangements. Sellers are the primary customer in a consignment
    arrangement while the buyer is the primary customer in a sale of Company-owned inventory, referred to as product sales. A contract
    with a customer exists in both cases when the end-customer purchases the goods obligating the Company to deliver the identified performance
    obligation(s). The Company requires authorization from a credit card or other payment method or verification of receipt of payment,
    before the products are shipped to buyers.

    9

MY
SIZE, INC. AND ITS SUBSIDIARIES

Notes
to Condensed Consolidated Interim Financial Statements (Unaudited)

U.S.
dollars in thousands (except share data and per share data)

Note
2 - Significant Accounting Policies (Cont.)

    The
    Company generally receives payments from buyers before payments to the sellers are due.

    Consignment
    Revenue

    The
    Company generates consignment revenue primarily from the sale of secondhand apparel on behalf of sellers. The Company retains a percentage
    of the proceeds received as payment for its consignment service. The Company reports consignment revenue on net. Title to the consigned
    goods remain with the seller until transferred to the buyer, which occurs 90 days subsequent to purchase of the consigned goods and
    upon expiration of the allotted return period. The Company does not take title of consigned goods at any time except in certain cases
    where the consignment window of 90 days expires or returned goods become Company owned inventory and becomes product revenue. Consignment
    revenue