Company: MYSZ
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023456
Chunk: 7

Company: My Size, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 7
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 90 days subsequent to purchase of the consigned goods and
    upon expiration of the allotted return period. The Company does not take title of consigned goods at any time except in certain cases
    where the consignment window of 90 days expires or returned goods become Company owned inventory and becomes product revenue. Consignment
    revenue is generally recognized upon purchase of the consigned good by the buyer as its performance obligation of providing consignment
    services to the consignor is satisfied at that point. Consignment revenue is also recognized upon purchase of the consigned good
    for which the consignment window has already expired and the Company has taken title to the consigned good. Consignment revenue is
    recognized gross of seller payouts but net of discounts, incentives and returns. Value added tax assessed by governmental authorities
    is excluded from revenue.

Product
Revenue

The
Company recognizes product revenue on a gross basis as the Company acts as the principal in the transaction. Revenue is recognized at
the time control of the asset is transferred to the customer, which is typically upon delivery and acceptance by the customer. The Company
is the seller and not an agent due to inventory risk.

Shipping
Fees

The
Company charges shipping fees to buyers, which are included in revenue. All outbound shipping costs are accounted for in cost of revenue
at the time revenue is recognized.

Returns

The
Company generally has a 14-day return period, and possibly longer accordingly to regulations which may change from time to time, and
recognizes a returns reserve based on historical experience, which is recorded in accrued and other current liabilities within the Company’s
consolidated balance sheets and reduction of revenue within the Company’s consolidated statements of operations.

Inventory
of resale platform.

Inventories,
consisting of merchandise that the Company has purchased and to which the Company holds title, are accounted for using the specific identification
method, and are valued at the lower of cost or net realizable value. The cost of inventory is equal to the cost of the merchandise paid
to the seller and related inbound shipping costs. Inventory valuation requires the Company to make judgments based on currently available
information about the likely method of disposition, such as through sales to individual customers or liquidations, and expected recoverable
values of each disposition category. The Company records an inventory write-down based on the age of the inventory and historical experience
of expected sell-through.

Seller
Payable

Seller
payable includes amounts owed to sellers upon the purchase of sellers’