MYSZ.NASDAQMy Size, INC
10-K: MySize, Inc. Reports Fiscal Year 2024 Results, Highlights Growth Strategy and Financial Position
Sentiment:
Annual Results
MySize, Inc. reports its financial results for the fiscal year ended December 31, 2024, outlining its growth strategy, recent acquisitions, and financial performance.
Capital raiseThe company will need to raise additional capital, which may not be available on reasonable terms or at all.In January 2025, the company entered into an At The Market Offering Agreement, pursuant to which the company may offer and sell, from time to time through Wainwright shares of the company's common stock having an aggregate offering price of up to $4.1 million.
Worse than expectedThe company's independent registered public accounting firm included a going concern explanatory paragraph in its report on the financial statements for the year ended December 31, 2024.
Summary
- MySize, Inc. is an omnichannel e-commerce platform and provider of AI-driven SaaS measurement solutions.
- The company's focus is on commercializing Naiz Fit technology, which helps shoppers find accurate clothing sizes online.
- MySize aims to be a consolidator of sizing solutions and new digital experiences for the fashion industry.
- The company's growth strategy includes signing commercial agreements with U.S. retailers and pursuing a two-pronged commercialization strategy.
- MySize is also investing in its technology platform and seeking synergistic business acquisitions.
- The global e-commerce market is projected to reach $8.8 trillion in 2024 and $18.81 trillion by 2029.
- The fashion e-commerce market is expected to reach $1.22 trillion by 2027.
- MySize reported revenues of $8.257 million for the year ended December 31, 2024, compared to $6.996 million in 2023.
- The company's net loss for 2024 was $3.995 million, compared to a net loss of $6.380 million in 2023.
- As of December 31, 2024, MySize had cash, cash equivalents, and restricted cash of $4.880 million.
- The company's independent registered public accounting firm included a going concern explanatory paragraph in its report on the financial statements for the year ended December 31, 2024.
- As of March 10, 2025, the company had 13 employees.
Sentiment
Score: 4
Explanation: While revenue increased and net loss decreased, the going concern warning and need for additional capital raise concerns.
Positives
- Revenue increased from $6.996 million in 2023 to $8.257 million in 2024.
- Net loss decreased from $6.380 million in 2023 to $3.995 million in 2024.
- The company is focused on a growing e-commerce market.
- The company is focused on AI-driven SaaS measurement solutions.
Negatives
- The company has incurred significant losses and negative cash flows from operations.
- There is substantial doubt about the company's ability to continue as a going concern.
- The company will need to raise additional capital to meet its business requirements in the future.
- The company recorded a goodwill impairment of $631,000 for the year ended December 31, 2024.
Risks
- The company may not be able to obtain additional capital on acceptable terms, or at all.
- The market for the company's measurement technology is new and unproven.
- The company faces intense competition and expects competition to increase in the future.
- Political, economic, and military conditions in Israel may affect the company's operations and results.
- The company's business, operating results, and growth rates may be adversely affected by unfavorable economic and market conditions.
- A significant majority of Orgad’s revenue is from sales of products on Amazon’s U.S. Marketplace and any change, limitation or restriction on our ability to operate on Amazon’s platform or any other marketplace could have a material adverse impact to our business, results of operations, financial condition and prospects.
Future Outlook
The company expects to continue generating losses and negative cash flows from operations for the foreseeable future and will need to raise additional capital.
Industry Context
The company operates in the e-commerce and SaaS sectors, which are experiencing growth but also face challenges such as high return rates and competition.
Comparison to Industry Standards
- The document mentions competitors such as True Fit, Fit Analytics, and 3DLook.
- Fashion brands invested 1.6%-1.8% of their revenues in technology in 2021, with investments expected to double by 2030.
Management Changes
| Role | Previous Person | New Person | Effective Date | Reason |
|---|---|---|---|---|
| Chief Financial Officer | Or Kles | Oren Elmaliah | 2025-04-01 | Mr. Kles resigned effective March 31, 2025. |
Legal Proceedings
- In July 2024, the company was served with a legal complaint filed by Shimon Shukron in the Magistrates Court in Herzliya for a monetary award in an amount of NIS 1,895,345 (approximately $510,000) related to a fire at Orgad's warehouse.
Stakeholder Impact
- Shareholders face the risk of dilution from future equity offerings.
- Employees face uncertainty due to the company's going concern status.
- Customers may be affected by the company's ability to continue operations and provide services.
Next Steps
- Continue commercialization of products.
- Acquire technology, intellectual property, or businesses.
- Secure sufficient financing through the sale of additional equity securities, debt, or capital inflows from strategic partnerships.
Key Dates
| Date | Description |
|---|---|
| 1999-09-20 | Company incorporated in Delaware as Topspin Medical, Inc. |
| 2013-09 | Ronen Luzon acquired control of the Company. |
| 2014-02 | My Size Israel entered into a Purchase Agreement with Shoshana Zigdon. |
| 2016-07-25 | Common stock began publicly trading on the Nasdaq Capital Market. |
| 2021-05-26 | My Size Israel and Ms. Zigdon entered into an Amendment to Purchase Agreement. |
| 2022-02 | Completed the acquisition of Orgad. |
| 2022-10 | Completed the acquisition of Naiz Fit. |
| 2023-12-27 | Shareholders approved a voluntary delisting of common stock from trading on the TASE. |
| 2024-01-11 | TASE issued a notice confirming the request to delist common stock from the TASE. |
| 2024-03-27 | Last day of trading of common stock on the TASE. |
| 2024-03-31 | Delisting of common stock expected to take effect. |
| 2024-04-19 | 1-for-8 reverse stock split effected. |
| 2025-03-10 | Date of information regarding number of employees and shareholders. |
Keywords
Naiz Fit, e-commerce, measurement solutions, SaaS, AI, Orgad, fashion, retail, revenue, net loss
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