Company: MYSZ
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023456
Chunk: 13

Company: My Size, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 13
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SizeMe’s gross revenue for the
12-month period following the closing date (beginning September 1, 2025) compared to the 12-month period ended August 31, 2025 (the prior-year
revenue) as follows: (i) the entire 25% of the Warrant shall vest and become exercisable if ShoeSizeMe’s post-closing revenue is
equal to or greater than 95% of the prior-year revenue, (ii) 12.5% of the Warrant (or 50% of the portion the Warrant subject to the vesting
terms in connection with the Financial Result Milestone) shall vest and become exercisable if ShoeSizeMe’s post-closing revenue
is equal to or greater than 80% but less than 95% of the prior-year revenue; and (iii) no portion of the Warrant subject to the vesting
terms in connection with the Financial Result Milestone shall vest if ShoeSizeMe’s post-closing revenue is less than 80% of the
prior-year revenue.

●
Integration Milestone: The vesting of 25% of the Warrant is contingent on the completion of the full integration (as determined
by the Company at its reasonable discretion) of ShoeSizeMe into the Company’s wholly-owned subsidiary, Naiz Bespoke Technologies,
S.L., by March 31, 2026.

The
award was determined to be a share-based payment accounted for under ASC 718, as vesting is contingent upon the employee’s continued
service and performance conditions. The grant-date fair value of the warrant was measured using an option-pricing model and a compensation
expense is recognized over the vesting periods, based on management’s assessment of the likelihood of achieving the performance
and integration conditions. The award is classified as equity, as it will be settled in a fixed number of shares with fixed exercise
prices.

Note
5 - Contingencies and Commitments

    In
    July 2024, the Company was served with a legal complaint filed by Shimon Shukron in the Magistrate’s Court in Herzliya (the
    “Court”) for a monetary award in an amount of NIS 1,895,345 (approximately $510). The plaintiff alleges that due to the
    fire that broke out at Orgad’s warehouse in January 2023, the fire spread to the plaintiff’s business and caused heavy
    damage to the structure and contents, inventory of the