My Size, Inc. Stock Compensation Disclosure

NOTE 14 - STOCK BASED COMPENSATION

 

The stock-based expense recognized in the financial statements for services received is related to cost of goods, research and development, sales and marketing and general and administrative expenses as shown in the following table:

 

SCHEDULE OF STOCK BASED COMPENSATION EXPENSES

		2024				2023
		Year ended December 31,
		2024				2023
Stock-based compensation expense – Cost of goods			-				20
Stock-based compensation expense - Research and development			59				71
Stock-based compensation expense - Sales and marketing			46				160
Stock-based compensation expense - General and administrative			285				202
Stock-based compensation expense			390				453

 

 

MY SIZE, INC. AND ITS SUBSIDIARIES

 

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

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

 

NOTE 14 - STOCK BASED COMPENSATION (Cont.)

 

Options issued to consultants

 

	a.	In March 2023, the Company entered into a two-year agreement with a consultant to provide services to the Company including assisting the Company to promote, market and sell the Company’s technology to potential customers. Pursuant to such agreement and in partial consideration for such consulting services, the Company agreed to issue to the consultant options to purchase up to 500 shares of the Company’s common stock upon execution of the agreement. The options are exercisable at $24.00 per share and shall vest in two equal instalments every twelve months starting March 2023. Unexercised options shall expire 3 years from the effective date.
	b.	In July 2023, the Company entered into a six month agreement with a consultant to provide services to the Company, including assisting the Company to promote, market and sell the Company’s technology to potential customers and make strategic introductions and inquiries with interested parties in the financial community. Pursuant to the agreement and in partial consideration for such consulting services, the Company issued to the consultant (i) 5,000 shares of restricted common stock of the Company, (ii) a warrant to purchase 12,500 shares of common stock at an exercise price of $4.00 per share and exercisable for a term of 36 months from the date of issuance, and (iii) a warrant to purchase 12,500 shares of common stock at an exercise price of $6.00 per share and exercisable for a term of 36 months from the date of issuance.   The issuance was approved by the Company’s board of directors in February 2024.   In the year ended December 31, 2024, the Company recorded $71, as stock-based equity awards with respect to the consultant. No expenses were recorded in the fiscal year ended December 31, 2023 with respect to the consultant.

 

 

MY SIZE, INC. AND ITS SUBSIDIARIES

 

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

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

 

NOTE 14 - STOCK BASED COMPENSATION (Cont.)

 

The Company’s outstanding options granted to consultants as of December 31, 2024 are as follows:

 

SCHEDULE OF OPTIONS GRANTED TO CONSULTANTS

Issuance date		Options for Common stock				Weighted Average exercise price per share				Options exercisable				Expiration date
September-October 2020			112			USD	216				112			September 2025
March 2023			500			USD	24				225			March 2026
Total			612								337

 

The Company uses the Black Scholes model to measure the fair value of the stock options with the assistance of a third party valuation.

 

The fair value of the Company’s stock options granted to non-employees was calculated using the following weighted average assumptions:

 

SCHEDULE OF FAIR VALUE ASSUMPTIONS OF STOCK OPTIONS

		2023
		Grants
Dividend yield			-
Expected volatility			82.49	%
Risk-free interest			3.96	%
expected term of up to (years)			3

 

 

MY SIZE, INC. AND ITS SUBSIDIARIES

 

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

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

 

NOTE 14 - STOCK BASED COMPENSATION (Cont.)

 

Stock Option Plan for employees

 

In March 2017, the Company adopted a stock option plan (the “Plan”) pursuant to which the Company’s Board of Directors may grant stock options to officers and key employees. The total number of options which may be granted to directors, officers, employees under this plan, is limited to 36,125 options. Stock options can be granted with an exercise price equal to or less than the stock’s fair market value at the date of grant.

 

The fair value of each option award is estimated on the date of grant using the Binomial option-pricing model that used the weighted average assumptions in the following table. The risk free rate for the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of grant.

 

SCHEDULE OF FAIR VALUE ASSUMPTIONS OF STOCK OPTIONS

		2024 Grants				2023 Grants
Dividend yield			0	%			0	%
Expected volatility			86.22	%			82.49	%
Risk-free interest			4.3	%			3.96	%
expected term			2.0-2.8				5

 

In the years ended December 31, 2024 and 2023, 6,875 and 11,625 options, respectively, were granted.

 

On December 27, 2023, the Company’s stockholders approved an increase in the shares available for issuance under the 2017 Equity Incentive Plan from 36,125 shares to 130,000 shares.

 

On February 14, 2024, the Compensation Committee of the Company granted restricted share awards under the Company’s 2017 Equity Incentive Plan to Ronen Luzon, Or Kles and Billy Pardo, pursuant to which they were issued 37,500 restricted shares, 18,750 restricted shares and 18,750 restricted shares, respectively. The restricted shares vest in three equal instalments on January 1, 2025, January 1,2026 and January 1, 2027, conditioned upon continuous employment with the Company, and subject to accelerated vesting upon a change in control of the Company.

 

 

MY SIZE, INC. AND ITS SUBSIDIARIES

 

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

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

 

NOTE 14 - STOCK BASED COMPENSATION (Cont.)

 

The total stock option compensation expense in the year ended December 31, 2024 amounted to $390 as follows: research and development expenses amounted to $59, sales and marketing expenses amounted to $46 and general and administrative expenses amounted to $285.

 

The total stock option compensation expense in the year ended December 31, 2023 amounted to $371 as follows: research and development expenses amounted to $71, sales and marketing expenses amounted to $130 and general and administrative expenses amounted to $168.

 

As of December 31, 2024, there was a total of $117 unrecognized compensation cost relating to non-vested share-based compensation arrangements. That cost is expected to be recognized over a weighted-average period of 2.0 years.

 

Share option activity during 2024 is as follows:

 

SCHEDULE OF SHARES OPTION ACTIVITY 

		2024
		Number of options				Weighted average exercise price US$
Outstanding at January 1			13,832				8.88
Granted			6,875				3.832
Exercised			-				-
Expired			(6,781)				-
Outstanding at year end			13,926				6.97
Vested at year end			7,926				8.72

 

Share option activity during 2023 is as follows:

 

		2023
		Number of options				Weighted average Exercise price US$
Outstanding at January 1			5,201				179.84
Granted			11,625				8.72
Exercised			-				-
Expired			(2,994	)			-
Outstanding at year end			13,832				8.88
Vested at year end			6,082				8.80

 

 

MY SIZE, INC. AND ITS SUBSIDIARIES

 

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

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