My Size, Inc. (MYSZ) - 2024 Annual Report Summary
Business Context and Reporting Period
This summary covers the Annual Report on Form 10-K for My Size, Inc. for the fiscal year ended December 31, 2024. My Size is an omnichannel e-commerce platform and provider of AI-driven SaaS measurement solutions. The company operates through two primary segments: (1) SaaS Solutions (via subsidiaries Naiz Fit and My Size Israel), offering size and fit technology to reduce returns and increase conversion for fashion retailers; and (2) Fashion and Equipment E-commerce (via subsidiary Orgad), operating as a third-party wholesale seller primarily on Amazon. The company is headquartered in Israel with significant operations in Spain and the U.S.
Key Financial Metrics (Year Ended Dec 31, 2024)
| Metric | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Total Revenue | $8,257 | $6,996 |
| Gross Profit | $3,323 | $2,731 |
| Gross Margin | 40.2% | 39.0% |
| Operating Loss | $(3,944) | $(6,741) |
| Net Loss | $(3,995) | $(6,380) |
| Cash and Cash Equivalents | $4,880 | $2,187 |
| Accumulated Deficit | $(63,876) | $(59,881) |
| Goodwill Impairment | $(631) | $(671) |
Liquidity & Debt: As of December 31, 2024, the company held $4.88 million in cash and cash equivalents. Total liabilities were $3.15 million, including $107,000 in short-term loans and $146,000 in long-term loans. The company has an accumulated deficit of $63.9 million.
Material Changes vs. Prior Period
- Revenue Growth: Revenue increased 18% to $8.26 million, driven primarily by growth in Orgad's e-commerce sales.
- Reduced Losses: Net loss decreased by approximately 37% (from $6.38M to $3.99M) due to revenue growth and significant expense reductions.
- Expense Reductions:
- R&D Expenses: Decreased 56% to $0.43 million due to reduced headcount and subcontractor costs.
- Sales & Marketing: Decreased 19% to $3.11 million, offset by higher Amazon fees due to increased sales volume.
- G&A Expenses: Decreased 15% to $3.37 million, primarily due to lower professional services and insurance costs.
- Goodwill Impairment: The company recorded a $0.63 million impairment charge against the SaaS Solutions reporting unit, reducing the carrying value of goodwill for that segment to zero. No impairment was recorded for the e-commerce segment.
- Other Income: Recognized $0.275 million in other income resulting from a downward post-closing adjustment related to the Orgad acquisition.
Guidance, Outlook, Risks, and Unusual Items
Going Concern Warning: The company's independent auditors have included an explanatory paragraph regarding substantial doubt about the company's ability to continue as a going concern. Management projects that existing cash resources are insufficient to fund operations for more than 12 months. The company intends to raise additional capital through equity offerings or debt, though there is no assurance such funding will be available on acceptable terms.
Recent Financing: In January 2025, the company entered into an "At The Market" (ATM) offering agreement to sell up to $4.1 million of common stock. As of March 10, 2025, approximately $142,000 had been raised under this agreement.
Key Risks:
- Geopolitical Instability: Operations are headquartered in Israel. While the company states operations have not been materially affected by the conflict since October 2023, escalation could disrupt business, supply chains, and capital raising efforts.
- Amazon Dependency: The Orgad segment relies heavily on Amazon's marketplace. Account suspension or policy changes by Amazon could materially harm revenue.
- Market Adoption: The SaaS segment faces a long sales cycle and competition from established players (e.g., True Fit). Success depends on U.S. retailer adoption.
- Legal Proceedings: A significant lawsuit against North Empire LLC was settled and dismissed in late 2024. A separate claim regarding a 2023 warehouse fire (approx. $510k) is pending mediation.
Investor Verification Checklist
- Cash Runway: Verify the sufficiency of the $4.88M cash balance against current burn rates and the timeline for the next capital raise.
- ATM Offering Progress: Monitor the volume and pricing of shares sold under the new ATM agreement to assess dilution and capital raising success.
- Amazon Seller Status: Confirm the stability of the Orgad Amazon seller account and any changes in Amazon's fee structures or policies.
- SaaS Revenue Quality: Scrutinize the $0.73M SaaS revenue for recurring revenue metrics, customer churn, and the status of pending deals with U.S. Tier 1 retailers.
- Geopolitical Exposure: Assess the impact of the Israel-Hamas conflict on employee availability, insurance costs, and potential boycotts affecting the brand.
- Goodwill Valuation: Review the assumptions used in the goodwill impairment test, specifically the reduced revenue growth rates for the SaaS segment.