Company: MYSZ
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001641172-25-000990
Chunk: 218

Company: My Size, Inc.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 2
Chunk 218
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 rates in effect in the years in which the differences are expected to reverse. The Company
assesses the likelihood that its deferred tax assets will be recovered from future taxable income and, to the extent it believes, based
upon the weight of available evidence, that it is more likely than not that all or a portion of deferred tax assets will not be realized.
The Company establishes a valuation allowance, if necessary, to reduce deferred tax assets to the amount more likely than not to be realized.
As of December 31, 2023, and 2022, a valuation allowance was established by the Company to reduce the deferred tax assets to the amount
supported by future reversals of existing temporary taxable differences.

The
Company implements a two-step approach to recognize and measure the benefit of its tax positions. The first step is to evaluate the tax
position taken or expected to be taken in a tax return by determining if the weight of available evidence indicates that it is more likely
than not that, on an evaluation of the technical merits, the tax position will be sustained on examination, including resolution of any
related appeals or litigation processes. The second step is to measure the tax benefit as the largest amount that is greater than 50
percent (cumulative basis) likely to be realized upon settlement. The Company believes that its tax positions are all highly certain
of being upheld upon examination. As such, as of December 31, 2024 and 2023 the Company has not recorded any unrecognized tax benefits.

m.
Accounting for stock-based compensation:

The
Company accounts for its employees’ stock-based compensation as an expense in the financial statements based on ASC 718. All awards
are equity classified and therefore such costs are measured at the grant date fair value of the award and graded vesting attribution
approach to recognize compensation cost over the vesting period. The Company estimates stock option grant date fair value using the Binomial
and Black Scholes option pricing-model.

The
Company recorded stock options issued to non-employees at the grant date fair value and recognizes expenses over the related service
period by using the straight-line attribution approach in accordance with ASU 2018-07. All awards are equity classified.

The
expected volatility of the share prices reflects the assumption that the historical volatility of the share prices is reasonably indicative
of expected future trends.

The
risk-free interest rate for grants with an exercise price denominated in USD for employees and several consultants is based on the yield
from US treasury zero-coupon bonds with