My Size, Inc. (MYSZ) - Q1 2025 10-Q Summary
Business Context and Reporting Period
This report covers the quarterly period ended March 31, 2025. My Size, Inc. is a Delaware corporation developing AI-driven measurement technologies for the apparel e-commerce market and operating an omnichannel e-commerce platform (Orgad). The company is classified as a non-accelerated filer and a smaller reporting company. As of May 15, 2025, there were 3,103,076 shares of common stock outstanding.
Key Financial Metrics
| Metric | Q1 2025 | Q1 2024 |
|---|---|---|
| Revenue | $1,479,000 | $2,984,000 |
| Gross Profit | $420,000 | $1,196,000 |
| Gross Margin | 28.4% | 40.1% |
| Operating Loss | $(1,060,000) | $(1,071,000) |
| Net Loss | $(1,060,000) | $(1,016,000) |
| Cash and Equivalents (End of Period) | $3,695,000 | $1,211,000 |
| Net Cash Used in Operating Activities | $(1,268,000) | $(1,417,000) |
| Total Debt (Short + Long Term Loans) | $210,000 | N/A |
Material Changes vs. Prior Period
- Revenue Decline: Revenue decreased by approximately 50% year-over-year, primarily driven by a significant decrease in sales from the Orgad e-commerce segment.
- Expense Reductions: Operating expenses decreased across all categories. Sales and marketing expenses dropped from $1.102M to $567K, and R&D expenses fell from $132K to $82K, largely due to reduced headcount and lower subcontractor costs.
- Stock Issuance: The company issued 60,589 shares under an At-The-Market (ATM) offering agreement during the quarter, raising approximately $142,000 in gross proceeds.
- Segment Performance: The "Fashion and equipment e-commerce platform" segment generated $1.307M in revenue but incurred a segment loss of $825K. The "SaaS Solutions" segment generated $172K in revenue with a segment loss of $235K.
Outlook, Risks, and Unusual Items
- Going Concern Warning: Management has expressed substantial doubt about the company's ability to continue as a going concern. Existing cash balances may not be sufficient to fund operations for more than 12 months without additional financing.
- Capital Raising: The company entered an ATM agreement in January 2025 to raise up to $4.1 million. As of May 15, 2025, the company had sold 992,328 shares under this agreement for approximately $1.995 million in gross proceeds.
- Recent Acquisition: On May 9, 2025, the company acquired a production unit (Percentil) from Casi Nuevo Kids, S.L. in Spain for approximately $679,000 (including assumption of liabilities). Initial accounting for this acquisition is incomplete.
- Geopolitical Risks: The company faces risks related to the security situation in Israel and the Middle East. While operations have been resilient due to a hub in Spain and Amazon fulfillment, escalation of conflict could adversely affect operations and capital raising.
- Legal Proceedings: A lawsuit filed in July 2024 by Shimon Shukron seeks approximately $510,000 regarding damages from a warehouse fire in January 2023. The company has filed a defense but cannot currently evaluate the likelihood of success.
Investor Verification Checklist
- Verify the sufficiency of the $3.7M cash balance against the projected burn rate given the "substantial doubt" going concern disclosure.
- Confirm the status and terms of the ongoing ATM offering and the remaining capacity to raise capital under the $4.1M agreement.
- Review the integration and financial impact of the May 2025 Percentil acquisition, including the assumption of labor and customer liabilities.
- Monitor the progress of the Shimon Shukron litigation and potential exposure to the $510K claim.
- Assess the sustainability of the revenue decline in the Orgad segment and the growth trajectory of the SaaS measurement solutions.