Company: MYSZ
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001641172-25-000990
Chunk: 1440

Company: My Size, Inc.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 8
Chunk 1440
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 and penalties and other sources are recorded when it is probable
that a liability has been incurred and the amount can be reasonably estimated. Legal costs incurred in connection with loss contingencies
are expensed as incurred.

s.
Derivative instruments

The
Company accounts for its derivative instruments as either assets or liabilities and measures them at fair value through profit or loss.

t.
Leases

The
Company leases include an office space lease agreement for 12 months, with an option to extend for an additional 12 months and 36
months cancelable operating lease agreements on behalf of personnel vehicles. The lease term includes a non-cancellable period of
the lease plus any additional periods covered by either a Company option to extend (or not to terminate) the lease that the Company
is reasonably certain to exercise, or an option to extend (or not to terminate) the lease controlled by the lessor.

ROU
assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent its obligation
to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on
the present value of lease payments over the lease term. The Company generally uses its incremental borrowing rate based on the estimated
rate of interest for collateralized borrowing over a similar term of the lease payments at commencement date. Lease expense for lease
payments is recognized on a straight-line basis over the lease term.

For
the office rent lease, the Company has elected to account for the lease and non-lease maintenance components as a single lease component.
Therefore, the lease payments used to measure the lease liability include all of the fixed consideration in the contract, including in-substance
fixed payments, owed over the lease term.

u.
Recent adopted accounting pronouncements

    1.
    In
    June 2022, the FASB issued ASC 2022-03 “Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions”.
    The ASU clarifies that a contractual restriction on the sale of an equity security is not considered part of the unit of account
    of the equity security and, therefore, is not considered in measuring its fair value. The ASU also clarifies that an entity cannot,
    as a separate unit of account, recognize and measure a contractual sale restriction. The ASU also introduces new disclosure requirements
    for equity securities subject to contractual sale restrictions. The ASU is effective for fiscal years
    beginning after December 15, 2024,