Company: MYSZ
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024073
Chunk: 12

Company: My Size, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 12
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 Board (“FASB”)
issued Accounting Standards Updates (“ASU”) 2025-05 “Financial Instruments—Credit Losses (Topic 326): Measurement
of Credit Losses for Accounts Receivable and Contract Assets”. The ASU introduces a practical expedient for all entities when estimating
expected credit losses for current accounts receivable and current contract assets arising from transactions accounted for under ASC 606.
Under the practical expedient, when developing reasonable and supportable forecast as part of estimating expected credit losses, an entity
may assume that current conditions as of the balance sheet date do not change for the remining life of the asset. The ASU is effective
for annual reporting period beginning after December 15, 2025 and interim reporting within those annual reporting periods. Early adoption
is permitted in both interim and annual reporting periods. The Company is evaluating the impact of ASU 2025-05 on its consolidated financial
statements if it elects to apply the practical expedient.

    c.
    Critical accounting estimates:

    ASC 350 requires goodwill to be tested for impairment at the reporting
unit level at least annually, or between annual tests under 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.

    An impairment charge of $144 was recorded as the carrying value of Fashion and equipment e-commerce 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. This impairment charge was recorded within Impairment of goodwill, within the
Consolidated Statement of Operations, and within the Fashion and equipment e-commerce segment for three months ended June 30, 2025. See note 7- Goodwill.

    d.
    Significant
    Accounting Policies:

    The
    significant accounting policies followed in the preparation of these unaudited interim condensed consolidated financial statements
    are identical to those applied in the preparation of the latest annual financial statements, except the following new policies which
    was adopted following the business combination (see note 6):

    Revenue
    Recognition from resale platform

    Revenue
    is recognized in accordance with FASB Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with
    Customers (“ASC 606”). Under ASC 606, revenue is recognized upon transfer of control of promised goods and services to
    customers in an amount that reflects the consideration the Company expects to receive for those