Company: MYSZ
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001641172-25-000990
Chunk: 1359

Company: My Size, Inc.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1A
Chunk 1359
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 maintains a returns policy that allows its customers to return product within a specified period of time. The estimate of the
provision for returns is based upon historical experience with actual returns.

Principal
versus Agent Considerations

The
Company follows the guidance provided in ASC 606 for determining whether it is a principal or an agent in arrangements with customers,
by assessing whether the nature of the Company’s promise is a performance obligation to provide the specified goods (principal)
or to arrange for those goods to be provided by the other party (agent). With regard to products being sold by Orgad through Amazon,
this determination involves judgment. The Company determined it is a principal, as it has determined that it controls the promised product
before it is transferred to the end customers, it is primarily responsible for fulfilling the promise to provide the goods, and it has
discretion in establishing prices. Therefore, the revenues are recorded on a gross basis.

    F-13

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.)

r.
Contingencies and Commitments

Liabilities
for loss contingencies arising from claims, assessments, litigation, fines, and penalties and other sources are recorded when it is probable
that a liability has been incurred and the amount can be reasonably estimated. Legal costs incurred in connection with loss contingencies
are expensed as incurred.

s.
Derivative instruments

The
Company accounts for its derivative instruments as either assets or liabilities and measures them at fair value through profit or loss.

t.
Leases

The
Company leases include an office space lease agreement for 12 months, with an option to extend for an additional 12 months and 36
months cancelable operating lease agreements on behalf of personnel vehicles. The lease term includes a non-cancellable period of
the lease plus any additional periods covered by either a Company option to extend (or not to terminate) the lease that the Company
is reasonably certain to exercise, or an option to extend (or not to terminate) the lease controlled by the lessor.

ROU
assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent its obligation
to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on
the present value of lease payments