Company: MYSZ
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001641172-25-000990
Chunk: 126

Company: My Size, Inc.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1C
Chunk 126
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 Israel may be in excess of insured limits
and are not insured in other jurisdictions. Management believes that the financial institutions that hold the Company’s investments
are financially sound and, accordingly, minimal credit risk exists with respect to these investments.

The
Company and its subsidiaries have no off-balance-sheet concentration of credit risk such as foreign exchange contracts, option contracts
or other foreign hedging arrangements.

    F-12

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.)

q.
Revenue Recognition:

The
Company’s revenues are comprised of two main categories: (1) selling products to customers, and (2) licensing cloud-enabled software
subscriptions, associated software maintenance and support.

The
Company recognizes revenue in accordance with ASC Topic 606, Revenues from Contracts with Customers (“ASC 606”). A contract
with a customer exists only when: the parties to the contract have approved it and are committed to perform their respective obligations,
the Company can identify each party’s rights regarding the distinct goods or services to be transferred (“performance obligations”),
the Company can determine the transaction price for the goods or services to be transferred, the contract has commercial substance and
it is probable that the Company will collect the consideration to which it will be entitled in exchange for the goods or services that
will be transferred to the customer.

Revenues
from licensing cloud-enabled software subscriptions include subscription fees from customers accessing the Company’s enterprise
cloud services. Cloud services allow customers to use the Company’s software without taking possession of the software. Revenue
is generally recognized ratably over the contract term. Substantially all of the Company’s subscription service arrangements are
non-cancelable and do not contain refund-type provisions.

The
Company also sells products directly to customers mainly through its online Amazon stores.

Under
the Company’s standard contract terms, customers have a right of return within 30 until 90 days. For contracts with rights of return,
the Company recognizes revenue based on the amount of the consideration which the Company expects to receive for products which are not
expected to be returned and recognizes a refund liability for the amount not expected to be received. At the end of each reporting period,
the Company updates its estimates of expected product returns and adjusts the refund liabilities with a corresponding adjustment in revenues.
The Company recorded an allowance for returns