My Size, Inc. (MYSZ) - Q1 2026 Filing Summary
Business Context and Reporting Period
This Form 10-Q covers the quarterly period ended March 31, 2026. My Size, Inc. is a fashion technology company operating an integrated portfolio including AI-driven sizing solutions (Naiz Fit, ShoeSizeMe), an e-commerce platform (Orgad), a resale platform (New Percentil), and a distribution subsidiary (Ten Peacks). The company is classified as a smaller reporting company and a non-accelerated filer.
Key Financial Metrics
| Metric | Q1 2026 | Q1 2025 |
|---|---|---|
| Revenue | $2,394,000 | $1,479,000 |
| Gross Profit | $940,000 | $420,000 |
| Gross Margin | 39.3% | 28.4% |
| Operating Loss | $(1,406,000) | $(1,060,000) |
| Net Loss | $(1,476,000) | $(1,060,000) |
| Loss Per Share (Basic/Diluted) | $(0.31) | $(0.51) |
| Cash & Equivalents (End of Period) | $654,000 | $3,695,000 |
| Total Debt (Short + Long Term) | $1,175,000 | N/A |
| Operating Cash Flow | $(2,069,000) | $(1,268,000) |
Material Changes vs. Prior Period
- Revenue Growth: Revenue increased 62% year-over-year, driven by growth in the fashion e-commerce platform (Orgad) and the inclusion of the New Percentil resale platform acquired in May 2025.
- Expense Increases: Operating expenses rose significantly. R&D expenses increased 191% due to headcount and subcontractor investments. Sales and marketing expenses rose 57% due to higher Amazon fees and Percentil integration. G&A expenses increased 46% due to investor relations consulting and Percentil overhead.
- Liquidity Decline: Cash and cash equivalents decreased by approximately $1.65 million during the quarter, primarily due to operating losses, inventory buildup, and supplier payments.
- Debt Financing: The company entered a new Capital Advance agreement with Payoneer Inc. in January 2026, receiving $400,000 in exchange for future marketplace sales, classified as a short-term loan.
Outlook, Risks, and Contingencies
- Going Concern Warning: Management has expressed substantial doubt about the company's ability to continue as a going concern. Projected cash balances are insufficient to fund operations for more than 12 months. The company plans to mitigate this through equity sales, debt financing, or strategic partnerships, though no guarantees exist.
- Capital Raising: The company is utilizing an "At The Market" (ATM) offering agreement with H.C. Wainwright & Co. As of March 31, 2026, it had sold shares for approximately $3.59 million of the $4.1 million aggregate limit.
- Geopolitical Risks: The filing details ongoing conflicts in the Middle East (Israel-Iran, Israel-Hezbollah) and Russia-Ukraine. While management states the impact on operations is currently immaterial due to a shift of operations to Spain and reliance on Amazon fulfillment, the situation remains fragile.
- Legal Contingency: A lawsuit filed by Shimon Shukron regarding a 2023 warehouse fire claims approximately $652,000. The company has recorded a liability of approximately $112,000 (NIS 325,000) as an estimate of the potential loss.
Investor Verification Checklist
- Cash Runway: Verify the sufficiency of the $654,000 cash balance against the stated operating burn rate and the timeline for securing additional capital.
- ATM Capacity: Confirm the remaining capacity under the $4.1 million ATM offering and the current market price of MYSZ shares to assess dilution risks.
- Payoneer Loan Terms: Review the specific repayment schedule and the 21% collection rate on gross daily payouts to understand the impact on future cash flows.
- Inventory Levels: Investigate the $3.41 million inventory balance and the $377,000 cash outflow for inventory changes to assess potential obsolescence or liquidity traps.
- Legal Exposure: Monitor the progress of the Shimon Shukron litigation and the third-party appraisal of damages.