Company: MYSZ
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001641172-25-000990
Chunk: 216

Company: My Size, Inc.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 2
Chunk 216
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:

Goodwill
represents the excess of the purchase price over the fair value of the net tangible and intangible assets acquired in a business combination.
Under ASC 350, “Intangible - Goodwill and Other”, goodwill is not amortized, but rather is subject to an annual impairment
test.

ASC
350 requires goodwill to be tested for impairment at the reporting unit level at least annually, the fourth quarter, or between annual
tests in certain circumstances, and written down when impaired. Goodwill is tested for impairment by comparing the fair value of the
reporting unit with it carrying value.

ASC
350 allows an entity to first assess qualitative factors to determine whether it is necessary to perform the quantitative goodwill impairment
test. If the qualitative assessment does not result in a more likely than not indication of impairment, no further impairment testing
is required. If it does result in a more likely than not indication of impairment, the impairment test is performed. Goodwill is not
deductible for income tax purposes. Goodwill from the Orgad acquisition was allocated to the fashion and equipment e-commerce platform
segment and goodwill from Naiz acquisition was allocated to the Naiz segment based innovative artificial intelligence driven measurement
solutions.

Alternatively,
ASC 350 permits an entity to bypass the qualitative assessment for any reporting unit and proceed directly to performing the first step
of the goodwill impairment test.

An
impairment charges of $631 and $671
were recorded as the carrying value of the SaaS Solution reporting segment exceeded its expected fair value, as determined using a
discounted cash flow model which is primarily based on management’s future revenue and cost estimates. These impairment charges
were recorded within the Consolidated Statement of Operations and within the SaaS Solution segment for
the year ended December 31, 2024 and 2023 respectively. See Note 7- Goodwill.

j.
Intangible assets:

Intangible
assets consist of identifiable intangible assets that the Company has acquired from previous business combinations. Intangible assets
are recorded at costs, net of accumulated amortization. The Company amortizes its intangible assets reflecting the pattern in which the
economic benefits of the intangible assets are consumed. When a pattern cannot be reliably determined, the Company uses a straight-line
amortization method. Amortization is calculated by the straight-line method over the estimated useful lives of the following assets.

The
estimated useful lives of the company’s intangible assets are as follows:

SCHEDULE OF INTANGIBLE ASSETS ESTIM