Company: MYSZ
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001641172-25-000990
Chunk: 660

Company: My Size, Inc.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 7
Chunk 660
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included in “Item 8. Financial Statements and Supplementary Data” of this Annual Report on Form 10-K.

Off-Balance
Sheet Arrangements

We
have not entered into any transactions with unconsolidated entities in which we have financial guarantees, subordinated retained interests,
derivative instruments or other contingent arrangements that expose us to material continuing risks, contingent liabilities or any other
obligations under a variable interest in an unconsolidated entity that provides us with financing, liquidity, market risk or credit risk
support.

Application
of Critical Accounting Policies and Estimates

Our
management’s discussion and analysis of our financial condition and results of operations is based on our financial statements,
which we have prepared in accordance with U.S. generally accepted accounting principles issued by the Financial Accounting Standards
Board, or FASB. The preparation of these financial statements requires us to make estimates and assumptions that affect the reported
amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements, as
well as the reported expenses during the reporting periods. Actual results may differ from these estimates under different assumptions
or conditions.

44

Our
significant accounting policies were revenue from contracts with customers which are more fully described in the notes to our financial
statements included herein. We believe these accounting policies discussed below are critical to our financial results and to the understanding
of our past and future performance, as these policies relate to the more significant areas involving management’s estimates and
assumptions. We consider an accounting estimate to be critical if: (1) it requires us to make assumptions because information was not
available at the time or it included matters that were highly uncertain at the time we were making our estimate; and (2) changes in the
estimate could have a material impact on our financial condition or results of operations.

Goodwill
impairment assessment

We
determine the fair value of our reporting units using the income approach. According to the income, we use discounted cash flows to estimate
the fair value. Cash flow projections require us to make significant estimates of revenue growth rates and operating margins, taking
into consideration the industry’s and market’s conditions. The discount rate used is based on the weighted average cost of
capital (“WACC”), adjusted for the relevant risk associated with business-specific characteristics.

Examples
of critical estimates in valuing certain of the intangible assets we have acquired or may acquire in the future include but are not limited
to the discount rate, the terminal growth