Company: MYSZ
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001641172-25-000990
Chunk: 1354

Company: My Size, Inc.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1A
Chunk 1354
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 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 ESTIMATED USEFUL LIVES

    years
  
    Customer
    Relationships 
    7
  
    Technology 
    7
  
    Trademark 
    5
  
    Selling
    Platform 
    3

Each
period, the Company evaluates the estimated remaining useful lives of its intangible assets and whether events or changes in circumstances
warrant a revision to the remaining period of amortization.

l.
Severance pay:

My Size Israel’s liability for severance pay is covered by Section 14 of the Israeli Severance Pay Law
(“Section 14”). Under Section 14, employees in Israel are entitled to have monthly deposits, at a rate of 8.33%
of their monthly salary, made on their behalf to their insurance funds. Payments in accordance with Section 14 exempt My Size Israel
from any additional obligation for these employees. As a result, My Size Israel does not recognize any liability for severance pay
due to these employees and the deposits under Section 14 are not recorded as an asset in its balance sheet. These
contributions for compensation represent defined contribution plans and expenses are recorded based on actual deposits.

    F-10

MY
SIZE, INC. AND ITS SUBSIDIARIES

NOTES
TO CONSOLIDATED FINANC