Company: MYSZ
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001641172-25-000990
Chunk: 404

Company: My Size, Inc.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 4
Chunk 404
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ortization method. Amortization is calculated by the straight-line method over the estimated useful lives of the following assets.

The
estimated useful lives of the company’s intangible assets are as follows:

SCHEDULE OF INTANGIBLE ASSETS ESTIMATED USEFUL LIVES

    years
  
    Customer
    Relationships 
    7
  
    Technology 
    7
  
    Trademark 
    5
  
    Selling
    Platform 
    3

Each
period, the Company evaluates the estimated remaining useful lives of its intangible assets and whether events or changes in circumstances
warrant a revision to the remaining period of amortization.

l.
Severance pay:

My Size Israel’s liability for severance pay is covered by Section 14 of the Israeli Severance Pay Law
(“Section 14”). Under Section 14, employees in Israel are entitled to have monthly deposits, at a rate of 8.33%
of their monthly salary, made on their behalf to their insurance funds. Payments in accordance with Section 14 exempt My Size Israel
from any additional obligation for these employees. As a result, My Size Israel does not recognize any liability for severance pay
due to these employees and the deposits under Section 14 are not recorded as an asset in its balance sheet. These
contributions for compensation represent defined contribution plans and expenses are recorded based on actual deposits.

    F-10

MY
SIZE, INC. AND ITS SUBSIDIARIES

NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS

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

NOTE
2 - SIGNIFICANT ACCOUNTING POLICIES (Cont.)

k.
Research and development costs:

Research
and development costs are charged to the statement of operations, as incurred. Most of the research and development expenses are for
wages, related expenses and subcontractors.

Software
development costs also include costs to develop software to be used solely to meet internal needs and cloud-based applications used to
deliver our services. The Company capitalizes development costs related to these software applications once the preliminary project stage
is complete and it is probable that the project will be completed and the software will be used to perform the function intended. Costs
capitalized for developing such software applications were not material for the periods presented and therefore were not capitalized.

l.
Income taxes:

The
Company accounts for income taxes using the asset and liability method, which requires the recognition of deferred tax assets and liabilities
for the