Company: MYSZ
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001641172-25-000990
Chunk: 34

Company: My Size, Inc.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1B
Chunk 34
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 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 over the lease term. The Company generally uses its incremental borrowing rate based on the estimated
rate of interest for collateralized borrowing over a similar term of the lease payments at commencement date. Lease expense for lease
payments is recognized on a straight-line basis over the lease term.

For
the office rent lease, the Company has elected to account for the lease and non-lease maintenance components as a single lease component.
Therefore, the lease payments used to measure the lease liability include all of the fixed consideration in the contract, including in-substance
fixed payments, owed over the lease term.

u.
Recent adopted accounting pronouncements

    1.
    In
    June 2022, the FASB issued ASC 2022-03 “Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions”.
    The ASU clarifies that a contractual restriction on the sale of an equity security is not considered part of the unit of account
    of the equity security and, therefore, is not considered in measuring its fair value. The ASU also clarifies that an entity cannot,
    as a separate unit of account, recognize and measure a contractual sale restriction. The ASU also introduces new disclosure requirements
    for equity securities subject to contractual sale restrictions. The ASU is effective for fiscal years
    beginning after December 15, 2024, and interim periods within those fiscal years. Early adoption is permitted for both interim and
    annual financial statements that have not yet been issued or made available for issuance. The adoption of ASC 2022-03 did not have a material impact on the Company’s consolidated financial statements and related disclosures.

    2.
    In
    December, 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures, which requires disclosure of disaggregated income
    taxes paid, prescribes standard categories for the components of the effective tax rate reconciliation, and modifies other income
    tax-related disclosures. The ASU will be effective for fiscal years beginning after December 15, 2024, and allows adoption on a prospective
    basis, with a retrospective option. The Company is in the process of assessing the impacts and method of adoption