Company: MYSZ
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023456
Chunk: 5

Company: My Size, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 5
---
 ASC
606 to a contract with share-based noncash consideration. The guidance in other Topics (such as ASC 815 or ASC 312) does not apply to
such consideration unless and until the entity’s right to receive or retain the consideration is unconditional. The ASU is effective
for annual periods beginning after December 15, 2026 and interim periods within those annual periods. Early adoption is permitted. The
amendment can be applied either prospectively to new contracts entered into on or after the date of adoption or on a modified retrospective
basis through cum.

    In September 2025, the FASB issued ASU 2025-06 “Targeted
Improvements to the Accounting for Internal-Use Software”. The ASU removes all references to software development stages throughout
ASU 350-40. Therefore, under the ASU, an entity will be required to start capitalizing software costs when management has authorized and
committed to funding the software project, and it is probable that the project will be completed and the software will be used to perform
the function intended (‘probable-to-complete’ recognition threshold). In applying the probable-to-complete recognition threshold,
an entity is required to consider whether there is significant uncertainty associated with the development activities of the software.
The ASU is effective for annual reporting periods beginning after December 15, 2027, and interim reporting periods within those annual
periods. The ASU allows adoption either on a prospective basis, a modified prospective approach or a retrospective approach.

    c.
    Critical
    accounting estimates:

    ASC
    350 requires goodwill to be tested for impairment at the reporting unit level at least annually, or between annual tests under certain
    circumstances, and written down when impaired. Goodwill is tested for impairment by comparing the fair value of the reporting unit
    with it carrying value.

    An
    impairment charge of $144 was recorded as the carrying value of Fashion and equipment e-commerce reporting segment exceeded its expected
    fair value, as determined using a discounted cash flow model which is primarily based on management’s future revenue and cost
    estimates. This impairment charge was recorded within Impairment of goodwill, within the Consolidated Statement of Operations, and
    within the Fashion and equipment e-commerce segment for three months ended September 30, 2025. See note 7- Goodwill.

    d.
    Significant
    Accounting Policies:

    The
    significant accounting policies followed in the preparation of these unaudited interim