My Size, Inc. (MYSZ) - Q2 2025 10-Q Summary
Business Context and Reporting Period
This report covers the quarterly period ended June 30, 2025. My Size, Inc. operates as an omnichannel e-commerce platform and provider of AI-driven SaaS measurement solutions. The company recently expanded its operations through the acquisition of "New Percentil," a resale platform for secondhand apparel, completed on May 9, 2025. The company is headquartered in Israel but maintains significant operational hubs in Spain to mitigate regional geopolitical risks.
Key Financial Metrics
| Metric (in thousands USD) | Six Months Ended June 30, 2025 | Three Months Ended June 30, 2025 |
|---|---|---|
| Revenues | $3,485 | $2,006 |
| Gross Profit | $1,544 | $1,124 |
| Gross Margin | 44.3% | 56.0% |
| Operating Loss | $(1,646) | $(586) |
| Net Loss | $(1,510) | $(450) |
| Cash and Cash Equivalents | $4,282 (as of June 30, 2025) | N/A |
| Total Debt (Short & Long Term) | $172 | N/A |
| Stockholders' Equity | $7,414 | N/A |
Material Changes vs. Prior Period
- Revenue Decline (YTD): Revenues for the six months ended June 30, 2025, decreased to $3.485 million from $4.963 million in the prior year period, primarily due to a decrease in sales from the Orgad e-commerce segment.
- Revenue Growth (Q2): For the three months ended June 30, 2025, revenues increased slightly to $2.006 million from $1.979 million, driven by the inclusion of the New Percentil resale platform.
- Goodwill Impairment: The company recorded a non-deductible goodwill impairment charge of $144,000 in Q2 2025 related to the Fashion and equipment e-commerce segment, triggered by sustained share price decreases and lower forecasted operating results.
- Expense Reduction: Operating expenses decreased significantly year-over-year. Sales and marketing expenses dropped to $1.087 million (YTD 2025) from $1.933 million (YTD 2024), largely due to reduced headcount and lower Amazon fees.
- Capital Raise: The company raised approximately $1.987 million (net) through an At-The-Market (ATM) offering during the six-month period.
Guidance, Outlook, and Risks
- Going Concern Warning: Management has expressed substantial doubt about the company's ability to continue as a going concern. Based on projected cash flows, existing cash reserves ($4.282 million) are not expected to fund operations for more than 12 months. Additional financing is required.
- Geopolitical Risks: The filing details significant volatility in the Middle East, including a preemptive strike by Israel on Iran in June 2025 and subsequent hostilities. While operations have shifted to Spain to mitigate risk, the situation remains volatile. The company also notes the closure of its Russian subsidiary due to the ongoing conflict in Ukraine.
- Acquisition Integration: The company is integrating the New Percentil resale platform, which contributed $168,000 in revenue since its May 2025 acquisition.
- Legal Contingency: A lawsuit filed by Shimon Shukron regarding fire damage to a neighboring business in 2023 seeks approximately $510,000. The company estimates the exposure at approximately $51,000.
Investor Verification Checklist
- Liquidity Runway: Verify the timeline and terms of any new financing required to address the "substantial doubt" regarding the going concern status.
- Goodwill Impairment Drivers: Review the specific assumptions used in the discounted cash flow model that led to the $144,000 impairment charge to assess future valuation risks.
- ATM Offering Status: Confirm the remaining capacity under the $4.1 million ATM agreement and the dilution impact of recent share issuances (1,052,917 shares sold YTD).
- Geopolitical Exposure: Assess the extent of operational reliance on Israel versus Spain and the potential impact of regional escalation on supply chains and employee availability.
- Legal Proceedings: Monitor the outcome of the Shimon Shukron lawsuit and the appointment of the third-party appraiser.