Company: MYSZ
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024073
Chunk: 85

Company: My Size, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part II, Item 8
Chunk 85
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 A contract
    with a customer exists in both cases when the end-customer purchases the goods obligating the Company to deliver the identified performance
    obligation(s). The Company requires authorization from a credit card or other payment method,or verification of receipt of payment,
    before the products are shipped to buyers.

    9

MY SIZE, INC. AND ITS SUBSIDIARIES

Notes to Condensed Consolidated Interim Financial
Statements (Unaudited)

U.S. dollars in thousands (except share data and
per share data)

    The Company generally receives payments from buyers before payments to the sellers are due.

    Consignment Revenue

    The Company generates
    consignment revenue primarily from the sale of secondhand apparel on behalf of sellers. The Company retains a percentage of the
    proceeds received as payment for its consignment service. The Company reports consignment revenue on net. Title to the
    consigned goods remain with the seller until transferred to the buyer, which occurs 90 days subsequent to purchase of the consigned
    goods and upon expiration of the allotted return period. The Company does not take title of consigned goods at any time except in
    certain cases where the consignment window of 90 days expires or returned goods become Company owned inventory and becomes product revenue. Consignment revenue
    is generally recognized upon purchase of the consigned good by the buyer as its performance obligation of providing consignment
    services to the consignor is satisfied at that point. Consignment revenue is also recognized upon purchase of the consigned good for
    which the consignment window has already expired and the Company has taken title to the consigned good. Consignment revenue is
    recognized gross of seller payouts but net of discounts, incentives and returns. Value added tax assessed by governmental
    authorities is excluded from revenue.

Product
Revenue

The
Company recognizes product revenue on a gross basis as the Company acts as the principal in the transaction. Revenue is recognized
at the time control of the asset is transferred to the customer, which is typically upon delivery and acceptance by the customer.
The Company is the seller and not an agent due to inventory risk.

Shipping
Fees

The
Company charges shipping fees to buyers, which are included in revenue. All outbound shipping costs are accounted for in cost of revenue
at the time revenue is recognized.

Returns

The
Company generally has a 14-day return period, and possibly longer accordingly to regulations which may change from time to time, and
recogn