Company: MYSZ
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001641172-25-000990
Chunk: 109

Company: My Size, Inc.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1C
Chunk 109
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 and
assumptions. We consider an accounting estimate to be critical if: (1) it requires us to make assumptions because information was not
available at the time or it included matters that were highly uncertain at the time we were making our estimate; and (2) changes in the
estimate could have a material impact on our financial condition or results of operations.

Goodwill
impairment assessment

We
determine the fair value of our reporting units using the income approach. According to the income, we use discounted cash flows to estimate
the fair value. Cash flow projections require us to make significant estimates of revenue growth rates and operating margins, taking
into consideration the industry’s and market’s conditions. The discount rate used is based on the weighted average cost of
capital (“WACC”), adjusted for the relevant risk associated with business-specific characteristics.

Examples
of critical estimates in valuing certain of the intangible assets we have acquired or may acquire in the future include but are not limited
to the discount rate, the terminal growth rate and the revenue growth rate.

Based
on our analysis, we determined that the carrying value of our SaaS Solutions reporting unit exceeded its fair value and an impairment
charge of $631,000 was recorded.

ITEM
7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

As
a “smaller reporting company” as defined by Item 10 of Regulation S-K, we are not required to provide this information.

45

ITEM
8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

MY
SIZE, INC. AND ITS SUBSIDIARIES

CONSOLIDATED
FINANCIAL STATEMENTS

AS
OF DECEMBER 31, 2024

U.S.
DOLLARS IN THOUSANDS

INDEX

    Page

    Report of Independent Registered Public Accounting Firm (PCAOB ID: ID 1057)
    F-2

    Consolidated
    Balance Sheets
    F-3

    Consolidated
    Statements of Comprehensive Loss
    F-4

    Consolidated
    Statements of Shareholders’ Equity
    F-5

    Consolidated
    Statements of Cash Flows
    F-6

    Notes
    to Consolidated Financial Statements
    F-7
    - F-31

F-1

Report
of Independent Registered Public Accounting Firm

To
the Shareholders and Board of Directors

My
Size, Inc.: