Company: MYSZ
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001641172-25-000990
Chunk: 136

Company: My Size, Inc.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1C
Chunk 136
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”), adjusted for the relevant risk associated with business-specific characteristics.

Goodwill impairment in 2023

The
Company performed a quantitative assessment as of December 31, 2023 for the reporting units’ fair value.

Based on the December 31, 2023 revised
discounted cash flows analysis, the Company recorded a goodwill impairment of $671 to its SaaS Solution reporting unit.

This,
based the following assumptions:

SCHEDULE
OF ESTIMATED FAIR VALUE

    Fashion
    and equipment e-commerce platform 
     
    SaaS Solutions 

    Discount
    rate 
     21.5%
     
     25%

    Terminal
    growth rate 
     3%
     
     3%

    Revenue
    growth rate 
     12.4%-50%
     
     15%-70%

No goodwill impairment
was recorded for the Fashion and equipment e-commerce platform reporting unit.

Goodwill impairment
in 2024

During
the third quarter of 2024, the Company has experienced sustained decreases in the
Company’s share price and a decline in actual and forecasted operating results, prompting impairment assessments of goodwill
and long-lived assets including definite-lived intangibles.

The
Company updated the forecasted future cash flows used in the impairment assessment, including revenues, margin, and capital expenditures
to reflect current conditions. Other changes in valuation assumptions included selection of lower revenue growth rates based upon an
assessment of current market conditions. 

Considering the adverse
developments in its businesses which are described above, the Company recorded a goodwill impairment of $631 in the third quarter, which
was attributable to the entire remaining goodwill associated with its SaaS solutions segment (level 3 fair value measurement).

The resulting cash flow
for the SaaS based innovative artificial intelligence driven measurement solutions reporting unit amounts were discounted using the same
rate of 25% compared to prior quarters, the Company used revenue growth rate of 4%-32% compared to 15%-70% at December 2023. The Company
still assumed a terminal growth rate of 3%.

For
the tests performed in September 30, 2024, the resulting cash flow for the fashion and equipment e-commerce platform segment amounts
were discounted using a slightly increased rate of 22%
compared to 21.5%
in prior quarters, The Company used a revenue growth rate of 7.5%-36.5%
compared to 12.4%-50%
at December 2023