My Size Revenues Dip 29.8%, Acquires Percentil Amid Going Concern Doubts

Ticker: MYSZ · Form: 10-Q · Filed: Aug 14, 2025 · CIK: 1211805

My Size, INC. 10-Q Filing Summary
FieldDetail
CompanyMy Size, INC. (MYSZ)
Form Type10-Q
Filed DateAug 14, 2025
Risk Levelhigh
Pages15
Reading Time18 min
Key Dollar Amounts$0.001, $1
Sentimentbearish

Sentiment: bearish

Topics: e-commerce, apparel technology, going concern, goodwill impairment, secondary market, cash burn, equity financing

Related Tickers: MYSZ

TL;DR

**MYSZ is a risky bet; revenue is down, they're burning cash, and the 'going concern' warning means they need more money ASAP.**

AI Summary

My Size, Inc. reported a significant decline in revenues for the six months ended June 30, 2025, falling to $3,485 thousand from $4,963 thousand in the prior year, a 29.8% decrease. Despite this, the net loss for the six-month period improved to $(1,510) thousand from $(1,980) thousand, a 23.7% reduction. For the three months ended June 30, 2025, revenues increased slightly to $2,006 thousand from $1,979 thousand, while net loss decreased to $(450) thousand from $(964) thousand, a 53.3% improvement. Key business changes include the acquisition of the Percentil resale platform in May 2025 for approximately $679 thousand, expanding its e-commerce offerings. The company also recorded a goodwill impairment charge of $144 thousand related to its Fashion and equipment e-commerce segment. A significant risk is the 'going concern' uncertainty, as management projects existing cash may not fund operations for more than 12 months, necessitating further financing. The strategic outlook involves continued commercialization, technology acquisition, and securing additional financing to address liquidity concerns and drive growth.

Why It Matters

My Size's declining revenue, coupled with a 'going concern' warning, signals significant financial instability for investors. The acquisition of Percentil, a resale platform, represents a strategic pivot into the secondhand apparel market, potentially diversifying revenue streams and offering competitive leverage against larger e-commerce players. However, the $144 thousand goodwill impairment on its existing e-commerce segment suggests challenges in current operations. Employees face uncertainty given the company's financial health, while customers might see new offerings through the Percentil acquisition, but the overall market impact is limited given My Size's small scale.

Risk Assessment

Risk Level: high — The company explicitly states 'there is substantial doubt about the Company's ability to continue as a going concern' due to projected cash flows and cash balances not being sufficient to fund operations for more than 12 months. This is further evidenced by an accumulated deficit of $65,386 thousand as of June 30, 2025, and net cash used in operating activities of $(2,306) thousand for the six months ended June 30, 2025.

Analyst Insight

Investors should exercise extreme caution and consider avoiding MYSZ given the explicit 'going concern' warning and continued operating losses. Any investment would be highly speculative, contingent on the company successfully securing significant additional financing and executing a profitable turnaround strategy.

Financial Highlights

debt To Equity
0.33
revenue
$3,485
operating Margin
N/A
total Assets
$9,862
total Debt
$1,014
net Income
$(1,510)
eps
N/A
gross Margin
N/A
cash Position
$4,282
revenue Growth
-29.8%

Revenue Breakdown

SegmentRevenueGrowth
Overall$3,485-29.8%
Fashion and equipment e-commerceN/AN/A

Key Numbers

Key Players & Entities

FAQ

What were My Size, Inc.'s revenues for the six months ended June 30, 2025?

My Size, Inc.'s revenues for the six months ended June 30, 2025, were $3,485 thousand, a decrease from $4,963 thousand in the same period of 2024.

Did My Size, Inc. report a net profit or loss for the second quarter of 2025?

My Size, Inc. reported a net loss of $(450) thousand for the three months ended June 30, 2025, which is an improvement from the net loss of $(964) thousand in the prior year's quarter.

What is the 'going concern' warning for My Size, Inc.?

My Size, Inc. management believes there is 'substantial doubt' about its ability to continue as a going concern because existing cash may not be sufficient to fund operations for more than 12 months, necessitating additional financing.

What strategic acquisition did My Size, Inc. complete in May 2025?

In May 2025, My Size, Inc. acquired the Percentil resale platform business unit from Casi Nuevo Kids, S.L. for a total transaction value of approximately $679 thousand.

How much goodwill impairment did My Size, Inc. record in Q2 2025?

My Size, Inc. recorded a goodwill impairment charge of $144 thousand for the three months ended June 30, 2025, related to its Fashion and equipment e-commerce reporting segment.

How has My Size, Inc.'s cash position changed since December 31, 2024?

My Size, Inc.'s cash and cash equivalents decreased to $4,282 thousand as of June 30, 2025, from $4,880 thousand at December 31, 2024.

What was the basic and diluted loss per share for My Size, Inc. in Q2 2025?

The basic and diluted loss per share for My Size, Inc. for the three months ended June 30, 2025, was $(0.15), an improvement from $(1.28) in the same period of 2024.

What is My Size, Inc.'s strategy to address its 'going concern' uncertainty?

Management's plans include continued commercialization of products, acquisition of technology or businesses, and securing sufficient financing through equity sales, debt, or strategic partnerships, as evidenced by the $1,987 thousand raised from additional securities sales.

How many shares of common stock were outstanding for My Size, Inc. as of June 30, 2025?

As of June 30, 2025, My Size, Inc. had 3,103,076 shares of common stock issued and outstanding, an increase from 2,040,159 shares at December 31, 2024.

What impact did the Israel-Iran conflict have on My Size, Inc.'s operations?

The Israel-Iran conflict in June 2025 had an 'immaterial effect' on My Size, Inc.'s operations and financial results, primarily due to its Spanish offices serving as a hub and Orgad's reliance on Amazon fulfillment.

Risk Factors

Industry Context

The e-commerce landscape, particularly in apparel and resale, is highly competitive and dynamic. Companies like My Size, Inc. face pressure to innovate and acquire user bases to maintain market share. The trend towards resale platforms indicates a growing consumer interest in sustainability and value, but also intensifies competition and requires efficient operational management.

Regulatory Implications

The company's 'going concern' status and need for further financing could attract scrutiny from regulators and investors. Compliance with financial reporting standards, especially regarding revenue recognition and asset impairment, remains critical. Any future equity issuances will need to adhere to SEC regulations.

What Investors Should Do

  1. Monitor cash burn and financing activities closely.
  2. Evaluate the integration and performance of the Percentil acquisition.
  3. Assess the sustainability of the slight revenue increase in the most recent quarter.

Key Dates

Glossary

Goodwill
An intangible asset that arises when one company acquires another for a price greater than the fair market value of its assets and liabilities. It represents the excess purchase price. (A goodwill impairment charge of $144 thousand was recorded, indicating that the value of this intangible asset has decreased, impacting net income.)
Accumulated Deficit
The total cumulative net losses of a company since its inception that have not been offset by net income. (The company has an accumulated deficit of $65,386 thousand as of June 30, 2025, highlighting a history of unprofitability.)
Going Concern
A business's ability to continue operating for the foreseeable future, typically considered to be at least the next 12 months. (Management has expressed substantial doubt about the company's ability to continue as a going concern due to insufficient cash reserves.)
ATM offerings
At-the-market offerings, where a company sells shares of its stock on public exchanges at prevailing market prices. (These offerings contributed to the increase in shares outstanding from 2,040,159 to 3,103,076, likely to raise capital.)
ASC 606
Accounting Standards Codification Topic 606, Revenue from Contracts with Customers, which provides a framework for recognizing revenue. (This standard is applied to revenue recognition, including the newly acquired Percentil resale platform.)

Year-Over-Year Comparison

Compared to the prior year, My Size, Inc. experienced a substantial 29.8% decrease in revenues for the six months ended June 30, 2025, falling to $3,485 thousand. Despite this revenue decline, the net loss improved by 23.7% to $(1,510) thousand, indicating some cost control or efficiency gains. The company also saw an increase in shares outstanding due to ATM offerings, likely to bolster its cash position, which itself has decreased. A new risk factor is the goodwill impairment charge of $144 thousand related to the Fashion and equipment e-commerce segment.

Filing Stats: 4,602 words · 18 min read · ~15 pages · Grade level 14.3 · Accepted 2025-08-14 16:30:56

Key Financial Figures

Filing Documents

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION 1 Item 1. Condensed Consolidated Interim Financial Statements (Unaudited) 1 Condensed Consolidated Interim Balance Sheets 3 Condensed Consolidated Interim Statements of Comprehensive Loss 4 Condensed Consolidated Interim Statements of Changes in Stockholders' Equity 5 Condensed Consolidated Interim Statements of Cash Flows 6 Notes to Condensed Consolidated Interim Financial Statements 7 Item 2. Management's Discussion & Analysis of Financial Condition and Results of Operations 18 Item 3. Quantitative and Qualitative Disclosure About Market Risk 24 Item 4.

Controls and Procedures

Controls and Procedures 24

- OTHER INFORMATION

PART II - OTHER INFORMATION 25 Item 1.

Legal Proceedings

Legal Proceedings 25 Item 1A.

Risk Factors

Risk Factors 25 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 28 Item 3. Defaults Upon Senior Securities 28 Item 4. Mine Safety Disclosures 28 Item 5 Other information 28 Item 6. Exhibits 28 i PART I FINANCIAL INFORMATION Item 1. Financial Statements. My Size, Inc. and Subsidiaries Condensed Consolidated Interim Financial As of June 30, 2025 (unaudited) U.S. Dollars in Thousands 1 MY SIZE, INC. AND ITS SUBSIDIARIES Condensed Consolidated Interim Financial Statements as of June 30, 2025 (Unaudited) Contents Page Condensed Consolidated Interim Balance Sheets (Unaudited) 3 Condensed Consolidated Interim Statements of Comprehensive Loss (Unaudited) 4 Condensed Consolidated Interim Statements of Changes in Stockholders' Equity (Unaudited) 5 Condensed Consolidated Interim Statements of Cash flows (Unaudited) 6 Notes to Condensed Consolidated Interim Financial Statements (Unaudited) 7-17 2 MY SIZE, INC. AND ITS SUBSIDIARIES Condensed Consolidated Interim Balance Sheets (Unaudited) U.S. dollars in thousands (except share data and per share data) June 30, December 31, 2025 2024 Assets Current Assets: Cash and cash equivalents 4,282 4,880 Inventory 2,901 2,796 Account receivables 398 278 Other receivables and prepaid expenses 832 1,118 Total current assets 8,413 9,072 Long term deposits - 7 Property and equipment, net 81 67 Operating right-of-use asset 17 23 Intangible assets 1,195 750 Goodwill 142 133 Investment in marketable securities 14 7 Total non-current assets 1,449 987 Total assets 9,862 10,059 Liabilities and stockholders' equity Current liabilities: Operating lease liability 15 15 Short-term loans 80 107 Trade payables 914 2,084 Liabilities to related parties 54 151 Seller payable 346 - Other payables 752 639 Total current liabilities 2,161 2,996 Long-term loans 9

financial statements and the notes thereto for the year ended December 31, 2024

financial statements and the notes thereto for the year ended December 31, 2024. b. Recently accounting standard that have not yet been adopted. In July 2025, the Financial Accounting Standards 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 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 fo

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