10-Q: My Size Inc. Q2 2026: Mounting Losses and Nasdaq Delisting Fears

My Size Inc. reported a significant increase in net loss for Q2 2026, alongside ongoing concerns about its ability to continue as a going concern and maintain Nasdaq listing.

Summary

• My Size, Inc. reported a net loss of $3.23 million for the six months ended June 30, 2026, an increase from $1.51 million in the same period of 2025.
• Revenues increased to $5.46 million for the six months ended June 30, 2026, up from $3.49 million in the prior year period.
• The company has substantial doubt about its ability to continue as a going concern, with cash expected to fund operations for less than 12 months.
• My Size received a deficiency notice from Nasdaq for failing to meet the minimum bid price requirement and is undergoing a 1-for-8 reverse stock split to address this.
• A new potential delisting risk has emerged with Nasdaq's proposed Market Value of Listed Securities (MVLS) requirement of $5 million, which the company currently does not meet.

Sentiment

Score: 3

Explanation: StockSavvy.ai views this as a negative sentiment due to the company's continued operating losses, substantial doubt about its ability to continue as a going concern, and potential delisting from Nasdaq.

Positives

• Revenues increased by approximately 57% to $5.46 million for the six months ended June 30, 2026, compared to $3.49 million for the same period in 2025.
• The company secured a $10 million Equity Purchase Agreement with an investor, providing a potential source of future capital over 36 months.
• A $400,000 capital advance was received from Payoneer Inc. in January 2026.

Negatives

• Net loss for the six months ended June 30, 2026, was $3.23 million, a significant increase from $1.51 million in the same period of 2025.
• Operating loss for the six months ended June 30, 2026, was $3.13 million, up from $1.65 million in the prior year.
• Cash, cash equivalents, and restricted cash decreased to $711,000 as of June 30, 2026, from $2,557,000 as of December 31, 2025.
• The company has substantial doubt about its ability to continue as a going concern, with cash projected to be insufficient for more than 12 months.
• The company is at risk of delisting from Nasdaq due to a bid price below $1.00 for 30 consecutive trading days, with a compliance period ending August 31, 2026.
• A new Nasdaq rule requiring a minimum MVLS of $5 million could lead to immediate delisting if not met, and the company's MVLS was $2.3 million as of August 13, 2026.

Risks

• The company has substantial doubt about its ability to continue as a going concern, with existing cash insufficient to fund operations for more than 12 months.
• Failure to regain compliance with Nasdaq's minimum bid price requirement by August 31, 2026, could lead to delisting.
• The new Nasdaq MVLS requirement of $5 million poses a significant delisting risk, as the company's MVLS was $2.3 million as of August 13, 2026.
• The company's ability to raise additional capital on acceptable terms or at all is uncertain, which is critical for its operations.
• The company may be forced to cease operations if it fails to commercialize products or secure sufficient financing.
• The ongoing geopolitical situation in Israel could have an impact on operations, though currently immaterial.
• The company's reliance on immediate external funding presents an imminent risk of default and financial distress.

Future Outlook

Management expects to continue generating losses and negative cash flows for the foreseeable future. Current cash is projected to be insufficient for operations for more than 12 months, creating substantial doubt about the company's ability to continue as a going concern. The company plans to mitigate this by continuing product commercialization, acquiring technology, and securing financing through equity sales, debt, or strategic partnerships, but success is not guaranteed.

Management Comments

• Management believes existing cash will be sufficient to fund operations for less than 12 months, creating substantial doubt about the company's ability to continue as a going concern.
• Management plans to mitigate going concern issues by continuing product commercialization, acquiring technology or intellectual property, and securing financing through equity sales, debt, or strategic partnerships.
• Management does not expect internal controls to prevent all error or fraud, acknowledging that control systems provide only reasonable, not absolute, assurance.

Industry Context

StockSavvy.ai notes that My Size operates in the competitive fashion technology sector, aiming to integrate solutions for sizing, inventory management, circularity, and distribution. The company's challenges in achieving profitability and maintaining Nasdaq listing are significant hurdles in this dynamic industry.

Comparison to Industry Standards

• The company's operating loss of $3.13 million for the first six months of 2026 and a net loss of $3.23 million indicate a significant divergence from profitability standards seen in established e-commerce and SaaS companies.
• The substantial doubt about the company's ability to continue as a going concern is a critical concern, as most healthy companies in the tech and e-commerce sectors demonstrate sustainable operations and positive cash flow.
• The risk of delisting from Nasdaq due to bid price and MVLS requirements highlights a struggle to meet basic market capitalization and investor confidence benchmarks that are standard for publicly traded entities.

Legal Proceedings

• A legal complaint was filed by Shimon Shukron for damages related to a warehouse fire in January 2023. An agreement was reached in August 2026 for the company to pay NIS 425,000 (approximately $143) in three monthly payments to settle all claims.

Stakeholder Impact

• Shareholders face potential dilution from future equity issuances and the risk of delisting from Nasdaq, which could reduce stock liquidity and market price.
• Creditors and lenders face increased risk due to the company's going concern issues and potential inability to service debt.
• Employees may face uncertainty regarding job security due to the company's financial precariousness and potential cessation of operations.

Next Steps

• Regain compliance with Nasdaq's minimum bid price requirement by August 31, 2026, through a reverse stock split.
• Monitor and address the potential Nasdaq MVLS requirement of $5 million.
• Continue product commercialization efforts.
• Explore securing financing through equity sales, debt, or strategic partnerships.
• Potentially utilize the $10 million Equity Purchase Agreement with an investor.
• Continue to assess and manage the impact of geopolitical situations on operations.

Key Dates

Recommendation

The company exhibits significant financial distress, including a worsening net loss, substantial doubt about its going concern status, and critical risks of delisting from Nasdaq. While revenue is growing, it is not translating into profitability, and the company's ability to secure necessary future funding is highly uncertain. The potential for delisting and continued operational losses make it a high-risk investment.

Keywords

fashion technology, e-commerce platform, SaaS solutions, resale platform, measurement technology, Nasdaq compliance, going concern, financial results