Company: MYSZ
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001641172-25-000990
Chunk: 205

Company: My Size, Inc.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 2
Chunk 205
---
 test of goodwill
at the reporting unit level using the income approach. Based on this analysis, the Company determined that the carrying value of its
SaaS Solutions reporting unit exceeded its fair value and an impairment charge of $631 thousand was recorded.

We
identified the evaluation of the goodwill impairment assessment for the SaaS Solutions reporting unit as a critical audit matter. A high
degree of subjective auditor judgment was required to evaluate the assumptions used to estimate the fair value of the Company’s
SaaS Solutions reporting unit. Specifically, the following assumptions had limited observable inputs (i) forecasted reporting unit cost
of sales and operating expenses (ii) revenue growth rates, and (iii) discount rate. The fair value determined was sensitive to changes
in these key assumptions. Additionally, specialized skills and knowledge were needed to evaluate the discount rate.

The
following are the primary procedures we performed to address this critical audit matter. We evaluated the design of certain internal
controls related to the Company’s goodwill impairment evaluation process. We performed sensitivity analyses to assess the impact
of reasonably possible changes to the forecasted cost of sales and operating expenses, revenue growth rates, and discount rate assumptions
on the Company’s determination of the reporting unit’s fair value. We evaluated the Company’s revenue growth rates
by comparing the growth projections to industry reports. We compared the Company’s historical forecasted revenue, cost of sales,
and operating expenses to historical actual results to assess the Company’s ability to accurately forecast cash flows. We involved
valuation professionals with specialized skills and knowledge, who assisted in evaluating the Company’s discount rate by assessing
the Company’s inputs to the discount rate as compared to publicly available data for comparable entities.

    /s/
    Somekh Chaikin

    Somekh
    Chaikin

    Member
    Firm of KPMG International

    We
    have served as the Company’s auditor since 2017.
  
    Tel
    Aviv, Israel

    March
    27, 2025

F-2

MY
SIZE, INC. AND ITS SUBSIDIARIES

CONSOLIDATED
BALANCE SHEETS

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

    Note 
    2024  
    2023 

    December
    31, 

    Note 
    2024  
    2023 

    Assets 

    Current
    assets 

    Cash
    and cash equivalents 
    3