Company: MYSZ
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024073
Chunk: 30

Company: My Size, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 30
---
.L., a limited liability company incorporated under the laws of Spain, or Casi Nuevo, pursuant to which New Percentil acquired,
or the Acquisition, a production unit of Casi Nuevo with a trade name of Percentil, or the Production Unit or Percentil, that was judicially
awarded to us in April 2025 within the framework of insolvency proceedings of Casi Nuevo filed with Commercial Court No. 13 of Madrid
(Spain). The Acquisition was completed on May 9, 2025.

Pursuant
to the Production Transfer Agreement, New Percentil acquired the Production Unit, which consists of warehouse infrastructure and equipment,
including Percentil’s central warehouse, process and logistics equipment, including Percentil’s proprietary quality control
and picking systems, AI-powered pricing engine and proprietary garment assessment tools and processes, computer and electronic equipment,
including photographic equipment and content production, equipment for garments and product presentation, supplies and support equipment,
inventory and other equipment and tools. In addition, pursuant to the Production Transfer Agreement, New Percentil was subrogated exclusively
in the position of Casi Nuevo in the labor contracts of 17 former employees of Casi Nuevo, including its chief executive officer and
chief marketing officer, who have transferred to New Percentil in connection with the Acquisition, or the Percentil Employees.

The
total purchase price of the Acquisition was €610,806.81 (approximately $679,000), which consists of (i) €40,000 (approximately
$45,000) paid by Naiz Fit, (ii) €358,196 (approximately $398,000) for the assumption of certain liabilities owed by Casi Nuevo to
its customers, (iii) €48,000 (approximately $53,500) for the assumption of certain debt and social security payments related to
the Percentil Employees, and (iv) €164,610 (approximately $183,000) for the assumption of accrued labor liabilities related to the
Percentil Employees.

The
Production Unit’s assets that were acquired by New Percentil in connection with the Acquisition were acquired free of liens, encumbrances,
attachments or third party rights.

Macroeconomic
and Geopolitical Environment

Because
we operate globally, our business is subject to the effects of economic downturns or recessions in the regions in which we do business,
volatility in foreign currency exchange rates relative to the U.S. dollar, inflation, changing interest rates, expanded trade control
laws and regulations, imposition of