Company: MYSZ
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001641172-25-000990
Chunk: 230

Company: My Size, Inc.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 2
Chunk 230
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    as of December 31, 2024 
     133  
     -  
     133 

The
Company operates its business through two reporting segments: (i) fashion and equipment e-commerce platform, and (ii) SaaS based innovative
artificial intelligence driven measurement solutions See Note 16 for additional segment information.

    F-17

MY
SIZE, INC. AND ITS SUBSIDIARIES

NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS

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

NOTE
7 – Goodwill and other Intangible assets (Cont.)

The
Company determines the fair value of its reporting units using the income approach. According to the income, the Company uses discounted
cash flows to estimate the fair value. Cash flow projections are based on the Company’s 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.

Goodwill impairment in 2023

The
Company performed a quantitative assessment as of December 31, 2023 for the reporting units’ fair value.

Based on the December 31, 2023 revised
discounted cash flows analysis, the Company recorded a goodwill impairment of $671 to its SaaS Solution reporting unit.

This,
based the following assumptions:

SCHEDULE
OF ESTIMATED FAIR VALUE

    Fashion
    and equipment e-commerce platform 
     
    SaaS Solutions 

    Discount
    rate 
     21.5%
     
     25%

    Terminal
    growth rate 
     3%
     
     3%

    Revenue
    growth rate 
     12.4%-50%
     
     15%-70%

No goodwill impairment
was recorded for the Fashion and equipment e-commerce platform reporting unit.

Goodwill impairment
in 2024

During
the third quarter of 2024, the Company has experienced sustained decreases in the
Company’s share price and a decline in actual and forecasted operating results, prompting impairment assessments of goodwill
and long-lived assets including definite-lived intangibles.

The
Company updated the forecasted future cash flows used in the impairment assessment, including revenues, margin, and capital expenditures
to reflect current conditions. Other changes in valuation assumptions included selection of lower revenue growth rates based upon an
assessment