My Size, Inc. Goodwill & Intangibles Disclosure

NOTE 8 – Goodwill and other Intangible assets

 

A. Identified intangible assets

 

Schedule of Intangible assets

 SCHEDULE OF GOODWILL AND INTANGIBLE ASSETS

		Selling Platform				Technology				Customer Relationships				Other				Total
		Thousands				Thousands				Thousands				Thousands				Thousands
		USD				USD				USD				USD				USD
Cost
As of January 1, 2024			333				321				816				86				1,556
Effect of changes in exchange rates			(2	)			(19	)			(48	)			(5	)			(74	)
As of December 31, 2024			331				302				768				81				1,482
Addition			-				860				189				-				1,049
Effect of changes in exchange rates			-				62				105				11				178
As of December 31, 2025			331				1,224				1,062				92				2,709
Amortization
As of January 1, 2024			(213	)			(80	)			(145	)			(21	)			(459	)
Amortization for the year			(109	)			(55	)			(113	)			(17	)			(294	)
Effect of changes in exchange rates			-				7				12				2				21
As of December 31, 2024			(322	)			(128	)			(246	)			(36	)			(732	)
Amortization for the year			(9	)			(145	)			(152	)			(18	)			(324	)
Effect of changes in exchange rates			-				(14	)			(37	)			(6	)			(57	)
As of December 31, 2025			(331	)			(287	)			(435	)			(60	)			(1,113	)
Carrying amount
As of December 31, 2024			9				174				522				45				750
As of December 31, 2025			-				937				627				32				1,596

 

Amortization

 

Amortization expenses recorded for identified intangible assets in the Consolidated Statements of Operations for each period and were as follows:

 SCHEDULE OF AMORTIZATION EXPENSES INTANGIBLE ASSETS

				December 31,				December 31,
		Line Item		2025				2024
Selling platform		Costs of revenues			9				109
Trademark		Sales and marketing			18				17
Technology		Costs of revenues			66				55
Technology		Sales and marketing			79				-
Customer relationships		Cost of revenues			32				-
Customer relationships		Sales and marketing			120				113
Total amortization expenses					324				294

 

 

MY SIZE, INC. AND ITS SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

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

 

NOTE 8 – Goodwill and other Intangible assets (Cont.)

 

Future amortization expenses are expected to be as follows:

 SCHEDULE OF FUTURE AMORTIZATION EXPENSES

		31-12-26				31-12-27				31-12-28				31-12-29				31-12-30				Total
Future amortization expenses			549				356				297				307				87				1,596

 

In the fourth quarter of 2024, the Company performed the annual assessment of the useful life of its finite-lived intangibles. The Company updated the useful life of its technology intangibles as a result of analyzing recent quantitative and qualitative observations in the market and factors impacting our business.  The change in estimate will be accounted for prospectively.  The weighted average remaining life was increased from approximately 3 years to 7 years to reflect the new estimated useful lives. The Company estimates that there will be an approximately 55-60% decrease to annual amortization expense.

 

In the second quarter of 2025, the Company performed an impairment assessment of its finite-lived intangible assets. For the intangibles of SaaS solutions, the Company performed a recoverability test by comparing the estimated undiscounted future cash flows to their carrying values. The analysis confirmed that the undiscounted cash flows exceeded the carrying values, and therefore no impairment was recorded.

 

For the Resale Platform intangibles, given the proximity of the acquisition to the balance sheet date and the absence of significant changes in economic or market conditions since the purchase, the Company concluded that no impairment indicators existed and the carrying values remain recoverable.

 

b.

Goodwill

 

The changes in the carrying amount of goodwill for the years ended December 31, 2025 and 2024 were as follows:

 SCHEDULE OF GOODWILL

		Fashion
		e-commerce
		platform				SaaS Solutions				Resale platform				Total
Balance as of December 31, 2023			134				624				-				758
Translation differences			(1	)			7				-				6
Goodwill impairment			-				(631	)			-				(631	)
Balance as of December 31, 2024			133				-				-				133
Translation differences			11				-				-				11
Goodwill arising from purchase			-				621				19				640
Goodwill impairment			(144	)			-				-				(144	)
Balance as of December 31, 2025			-				621				19				640

 

 

MY SIZE, INC. AND ITS SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

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

 

NOTE 8 – Goodwill and other Intangible assets (Cont.)

 

The Company operates its business through four reporting segments: (i) fashion e-commerce platform, (ii) SaaS solutions (iii) resale platform and (iv) wholesale. There was a goodwill impairment recognized under the wholesale segment. There was no impairment recognized for SaaS solutions. The company did not check impairment for the resale platform as it did not see any foreseeable changes in the market or performance of the segment since the recent purchase. See Note 16 for additional segment information.

 

The Company determines the fair value of its reporting units using the income approach. According to the income, the Company uses discounted cash flows to estimate the fair value. Cash flow projections are based on the Company’s estimates of revenue growth rates and operating margins, taking into consideration the industry’s and market’s conditions. The discount rate used is based on the weighted average cost of capital (“WACC”), adjusted for the relevant risk associated with business-specific characteristics.

 

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 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 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. The Company still assumed a terminal growth rate of 3%. No goodwill impairment was recorded for this reporting unit.

 

The Company performed it annual quantitative assessment as of December 31, 2024 for the Fashion e-commerce platform reporting unit fair value. The estimated fair value of the Fashion e-commerce platform reporting unit exceeded its estimated carrying amount by 5%.

 

This was based on the following assumptions:

 SCHEDULE OF ESTIMATED FAIR VALUE

		Fashion
		e-commerce platform
Discount rate			22.5	%
Terminal growth rate			3	%
Revenue growth rate			7.5%-65.6	%

 

Goodwill impairment in 2025

 

During the second quarter of 2025, the Company experienced a triggering event in the reporting period due to 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 table below indicates changes in the most significant inputs to the Company’s impairment analysis on each testing date since its last annual test for the Fashion e-commerce platform segment.

 

 

The Company updated the forecasted future cash flows used in the impairment assessment, including revenues and margin to reflect current conditions. Other changes in valuation assumptions included selection of lower revenue growth rates based upon an assessment of current market conditions. As a result of this review, the Company did not identify an impairment to its definite-lived intangible assets or other long-lived assets, but the Company recorded a $144 non-deductible goodwill impairment charge during the second quarter of the year ended December 31, 2025 (level 3 fair value measurement).

 

No goodwill impairment was recorded for other reporting unit including the new reporting units – resale platform.

 

 

MY SIZE, INC. AND ITS SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

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