Company: MYSZ
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024073
Chunk: 86

Company: My Size, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part II, Item 8
Chunk 86
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izes a returns reserve based on historical experience, which is recorded in accrued and other current liabilities within the
Company’s consolidated balance sheets and reduction of revenue within the Company’s consolidated statements of
operations.

Inventory of resale platform.

Inventories,
consisting of merchandise that the Company has purchased and to which the Company holds title, are accounted for using the specific identification
method, and are valued at the lower of cost or net realizable value. The cost of inventory is equal to the cost of the merchandise paid
to the seller and related inbound shipping costs. Inventory valuation requires the Company to make judgments based on currently available
information about the likely method of disposition, such as through sales to individual customers or liquidations, and expected recoverable
values of each disposition category. The Company records an inventory write-down based on the age of the inventory and historical experience
of expected sell-through.

Seller
Payable

Seller
payable includes amounts owed to sellers upon the purchase of sellers’ goods by the Company. Amounts are initially provided as
a credit to sellers. These credits may be applied towards purchases from the Company or redeemed for cash. Seller payables show up as
seller payables in the consolidated balance sheet.

Cost
of Revenue

Cost
of consignment revenue consists of outbound shipping, outbound labor and packaging costs. Cost of product revenue mainly consists of
the inventory cost, inbound shipping related to the sold merchandise, outbound shipping, outbound labor, packaging costs and inventory
writedowns. 

Note
3 – Financial Instruments

The
carrying amounts of cash and cash equivalents, restricted cash, accounts receivable, other receivables, trade payables, accounts payable
and short and long term loans approximate their fair value due to the short-term maturities of such instruments.

The
Company holds share certificates in My City Builders, Inc. (“MYCB”), formerly known as Diamante Minerals, Inc., a
publicly traded company on the OTCQB.

Due
to sales restrictions on the sale of the MYCB shares, the fair value of the shares was measured on the basis of the quoted market price
for an otherwise identical unrestricted equity instrument of the same issuer that trades in a public market, adjusted to reflect the
effect of the sales restrictions and is therefore, ranked as Level 2 assets.

Schedule
of Significant Assets and Liabilities Measured at Fair Value on Recurring Basis 

    June 30, 2025 

    Fair value hierarchy 

    Level