Company: MYSZ
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024073
Chunk: 48

Company: My Size, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 48
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 impact of ASU 2025-05 on its consolidated financial
statements if it elects to apply the practical expedient.

    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 June 30, 2025. See note 7- Goodwill.

    d.
    Significant
    Accounting Policies:

    The
    significant accounting policies followed in the preparation of these unaudited interim condensed consolidated financial statements
    are identical to those applied in the preparation of the latest annual financial statements, except the following new policies which
    was adopted following the business combination (see note 6):

    Revenue
    Recognition from resale platform

    Revenue
    is recognized in accordance with FASB Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with
    Customers (“ASC 606”). Under ASC 606, revenue is recognized upon transfer of control of promised goods and services to
    customers in an amount that reflects the consideration the Company expects to receive for those goods and services. The Company generates
    the majority of its revenue from its marketplaces, which allows its buyers to browse and purchase resale items for apparel, shoes
    and accessories on behalf of sellers. The Company recognizes revenue through the following steps: (1) identification of the contract,
    or contracts, with the customer; (2) identification of the performance obligations in the contract; (3) determination of the transaction
    price; (4) allocation of the transaction price to the performance obligations in the contract; and (5) recognition of revenue when,
    or as, it satisfies a performance obligation.

    Both
    buyers and sellers may be customers in the Company’s revenue arrangements. Sellers are the primary customer in a consignment
    arrangement while the buyer is the primary customer in a sale of Company-owned inventory, referred to as product sales.