Company: MYSZ
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001641172-25-000990
Chunk: 1353

Company: My Size, Inc.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1A
Chunk 1353
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    %

    Computers and peripheral equipment 
     33 
  
    Office furniture and equipment 
     7-20 
  
    Leasehold improvements 
     Over the term of the lease or the useful life of the improvements, whichever is shorter 

h.
Impairment of long-lived assets:

The
Company’s property and equipment are reviewed for impairment in accordance with ASC 360, “Property Plant and Equipment”,
whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets
to be held and used is measured by a comparison of the carrying amount of an asset to the future undiscounted cash flows expected to
be generated by the assets. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by
which the carrying amount of the assets exceeds the fair value of the assets.

    F-9

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.)

i.
Goodwill:

Goodwill
represents the excess of the purchase price over the fair value of the net tangible and intangible assets acquired in a business combination.
Under ASC 350, “Intangible - Goodwill and Other”, goodwill is not amortized, but rather is subject to an annual impairment
test.

ASC
350 requires goodwill to be tested for impairment at the reporting unit level at least annually, the fourth quarter, or between annual
tests in 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.

ASC
350 allows an entity to first assess qualitative factors to determine whether it is necessary to perform the quantitative goodwill impairment
test. If the qualitative assessment does not result in a more likely than not indication of impairment, no further impairment testing
is required. If it does result in a more likely than not indication of impairment, the impairment test is performed. Goodwill is not
deductible for income tax purposes. Goodwill from the Orgad acquisition was allocated to the fashion and equipment e-commerce platform
segment and goodwill from Naiz acquisition was allocated to the Naiz segment based innovative artificial intelligence driven measurement
solutions.

Alternatively,
ASC 350 permits an entity to bypass the qualitative assessment for