Company: MYSZ
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001641172-25-000990
Chunk: 1307

Company: My Size, Inc.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1A
Chunk 1307
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we believe our tax estimates are reasonable, if the Internal Revenue Service or other taxing authority disagrees with the positions we
have taken on our tax returns, we could face additional tax liability, including interest and penalties. If material, payment of such
additional amounts upon final adjudication of any disputes could have a material impact on our results of operations and financial position.
In addition, complying with new tax rules, laws or regulations could impact our financial condition, and increases to federal or state
statutory tax rates and other changes in tax laws, rules or regulations may increase our effective tax rate. Any increase in our effective
tax rate could have a material impact on our financial results.

25

A
significant majority of Orgad’s revenue is from sales of products on Amazon’s U.S. Marketplace and any change, limitation
or restriction on our ability to operate on Amazon’s platform or any other marketplace could have a material adverse impact to
our business, results of operations, financial condition and prospects.

Orgad,
our wholly owned subsidiary, operates an omnichannel e-commerce platform engaged in online retailing in the global market. It operates
as a third-party seller on Amazon.com, eBay and others. A substantial percentage of Orgad’s revenue is driven by sales on Amazon’s
U.S. marketplace and Orgad is subject to terms of service of Amazon and other marketplaces and various other seller policies and services
that apply to third parties selling products on Amazon and other marketplaces. Generally, a marketplace has the right to terminate or
suspend its agreement with Orgad at any time and for any reason. Such marketplace may take other actions against Orgad such as suspending
or terminating a seller account or product listing and withholding payments owed to Orgad indefinitely. For example, in July 2022, Amazon
deactivated Orgad’s Amazon U.S. store as a result of complaints submitted due to an error in the listed manufacturer of certain
products on Orgad’s store. Although its account was subsequently reinstated in September 2022, if the deactivation were to occur
in the future for a prolonged period of time, or if Amazon were to terminate Orgad’s account, this would have a material adverse
effect on our business, results of operations, financial condition and prospects. While Orgad endeavors to materially comply with the
terms of services of the marketplaces on which it operates, we can provide no assurance that these marketplaces will have the same determination
with respect to our compliance.

In
addition, Amazon