MySize Files 10K for Year Ended December 31, 2021 and Issues Shareholder Update Letter and Positive Outlook for 2022

Rhea-AI Summary

MySize, Inc. (NASDAQ: MYSZ) released a shareholder letter from CEO Ronen Luzon, highlighting the company's focus on AI-driven measurement solutions for e-commerce. For 2021, MySize reported revenues of $131,000, down from $142,000 in 2020, attributed to a drop in one-time project fees. The company noted significant strides in licensing agreements and partnerships with major retailers like Levi's and Lacoste. Innovations like the FirstLook Smart Mirror aim to enhance retail experiences, while the acquisition of Orgad could accelerate growth with greater access to capital. Current cash stands at $10.7 million.

Positive

• Implementation of FirstLook Smart Mirror expected to enhance in-store sales.
• Acquisition of Orgad could accelerate revenue growth due to improved inventory access.
• Increase in recurring revenues from licensing agreements with major retailers.
• Confidence in MySizeID to drive revenue and optimize retail operations.

Negative

• Total revenues decreased from $142,000 in 2020 to $131,000 in 2021.
• Revenue decline attributed to reduced one-time project fees, not aligned with strategic focus.

AIRPORT CITY, Israel, March 31, 2022 /PRNewswire/ -- MySize, Inc. (NASDAQ: MYSZ) (TASE: MYSZ.TA) ("MySize" or the "Company"), an omnichannel e-commerce platform and the provider of AI-driven measurement solutions to drive revenue growth and reduce costs for its business clients, today announced the issuance of the following shareholder letter from its Chairman and Chief Executive Officer, Ronen Luzon:

 

 

Dear MySize family, partners and shareholders,

We wish to start by thanking our MySize team, partners and shareholders for your dedication and support. While we know there are ups and downs as an employee or a shareholder of a small emerging growth company, we strongly believe in our actions over the past year and more specifically, recently, in building a strong and valuable company for the future. We have great excitement for the value we see for us in the path ahead.

We recentlyfiled our annual 10K for the year ended December 31, 2021 on March 18. While our revenues for 2021 amounted to $131,000 compared to $142,000 for 2020, we are excited with our ramp in license agreements resulting in an increase in recurring revenues. The overall decrease in revenues was due to lower fees from one-time customer projects, which is not our focus.

During 2020 and 2021, we entered into commercial agreements with Levi's, Nautica, Gant, Lacoste, Trutex, Penti, DeMoulin, UniformMarket, and Tricorp among others. We continue to increase our presence in the U.S. with retailers and the acceleration of additional commercial agreements for our measurement technology. We are confident about MySizeID's ability to drive revenue growth, strengthen user confidence and loyalty, reduce costs and optimize processes for our existing and prospective retail clients. We believe we are now at a commercialization inflection point, surpassing 1,000 clients.

In early February, we made a major announcement that transitioned us in becoming an omnichannel solution for retailers. We introduced the availability of FirstLook Smart Mirror, an interactive, mirror-like touch display that provides shoppers in physical stores with an enhanced, online shopping experience and contactless checkout. We strongly believe this is a great solution for the in-store retailer to better capture the customer and convert him/her to a final sale. FirstLook Smart Mirror received positive reviews at NRF in New York City and we are in discussions with many retailers.

The MySizeID FirstLook Smart Mirror seamlessly fits into any retail environment, whether in the fitting rooms (version with no camera) or other high-traffic, strategic locations. Highlight capabilities of the FirstLook Smart Mirror include 3D "Try-it-on" interactive avatar experience, personalized and highly accurate size recommendations by MySizeID, third-party POS systems integration, styling recommendations and contactless "select and collect" at the register feature.

The same way LivePerson's live chat application transformed e-commerce by increasing conversion rates and decreasing costs, sizing technology is gaining traction to do the same by decreasing returns (costs) and increasing conversion rates (sales). Retailers are taking notice as demonstrated by these recent transactions:

• Gap acquired Drapr and CB4 for $147 million
• Snap acquired Fit Analytics for $124 million
• Walmart acquired Zeekit
• Zalando acquired Fision

In late 2021, we partnered with GK Software. MySizeID has been integrated with cloud4retail by GK Software, which has more than 359,000 installations in over 65 countries, as a major player in the international market for retail solutions.

Outside of retail, we have also introduced our proprietary technology to address issues for shipping companies. We have developed an innovative mobile technology known as BoxSize ,which enables customers to quickly and easily measure the size and volume of a parcel to accurately calculate shipping fees. It also offers shipping companies a variety of precise logistical data for more efficiently managing their supply chain, providing them with an accurate way to compare the physical package with what is in the shipping manifest. BoxSize solution is available for license on both iOS and Android operating systems.

BoxSize is available on the Honeywell Marketplace, Zebra Technologies and Datalogic.

In February, we closed the acquisition of Orgad, an omnichannel e-commerce platform, headquartered in Israel and operates globally, including the U.S. and Europe. Its team consists of solid operators with deep understanding and knowledge in e-commerce, supply chain and technology. Its technology, operations and customer service are structured to be able to manage numerous retailers on its platform.

While Orgad generated approximately $2.5 million in revenue and reached profitability in 2021, we believe it was limited due to its lack of capital. Its lack of inventory did not keep up with demand. Orgad now has greater access to capital for inventory to be able to accelerate its growth. We believe Orgad has the potential to increase its inventory turnover by multiples over what it did in 2021.

We have greatly expanded our business as a direct e-commerce seller connecting the consumer's digital and physical experience. We are now well-positioned as an e-commerce platform engaged in online retailing in the global market with cutting edge AI technology to enhance the e-commerce experience and efficiency. Similar to Thrasio, Perch and Hour Loop, we operate as a third-party seller on Amazon.com, eBay and others.

We are focused on increasing our stock-keeping units ("SKUs"), mainly in fashion, apparel and shoes, and expanding our platform to manage numerous retailers. Our teams' strong abilities in technology, operations and customer service will be utilized to attract additional third-party e-commerce sellers with an eye on increasing efficiencies and revenue growth.

In short, we believe we have important catalysts in-place:

• Orgad now has access to cash to accelerate its revenue, whereby it was previously constrained by limited inventory
• FirstLook SmartMirror penetrating traditional retail stores
• Fashion e-commerce continues to trend upward with online sales making up 23% of total online sales in the U.S.Data drives decision-making & enables the retailer
• Online retailers high costs of returns
• ROI supported by higher conversion rates & lower return rates
• Successful case studies are leading to increased awareness and additional opportunities
• Expansion into shipping with BoxSize
• M&A strategy to expand e-commerce segment

This is exactly what we are doing today. We have reinvented ourselves with a sharp eye now on execution within the e-commerce and retail space. We have a strong cash position, which stood at $10.7 million at December 31, 2021, to continue to execute on our plan and rebuild shareholder value. We look forward to proving out our new business strategy and delivering value for our shareholders.

Sincerely,

Ronen Luzon

Chairman and Chief Executive Officer

About MySize, Inc.

MySize, Inc. (NASDAQ: MYSZ) (TASE: MYSZ.TA) is an omnichannel e-commerce platform and provider of AI-driven measurement solutions to drive revenue growth and reduce costs for its business clients. Orgad, its online retailer platform, has expertise in e-commerce, supply chain and technology operating as a third-party seller on Amazon.com and other sites.

MySize has developed a unique measurement technology based on sophisticated algorithms and cutting-edge technology with broad applications, including the apparel, e-commerce, DIY, shipping, and parcel delivery industries. This proprietary measurement technology is driven by several algorithms that are able to calculate and record measurements in a variety of novel ways. To learn more about MySize, please visit our website: www.mysizeid.com. We routinely post information that may be important to investors in the Investor Relations section of our website. Follow us on Facebook, LinkedIn, Instagram, and Twitter.

Please click here for a demonstration of how MySizeID provides a full sizing solution for the retail industry.

Register here for a free plan of MySizeID solution for your online store.

Please click here to download MySizeID for iOS.

Please click here to download MySizeID for Android.

To learn more about MySize and for additional information, please visit: our website: www.mysizeid.com.

Forward-looking Statements:

This press release contains certain forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are identified by the use of the words "could," "believe," "anticipate," "intend," "estimate," "expect," "may," "continue," "predict," "potential," "project" and similar expressions that are intended to identify forward-looking statements. All forward-looking statements speak only as of the date of this press release. You should not place undue reliance on these forward-looking statements. Although we believe that our plans, objectives, expectations and intentions reflected in or suggested by the forward-looking statements are reasonable, we can give no assurance that these plans, objectives, expectations or intentions will be achieved. Forward-looking statements involve significant risks and uncertainties (some of which are beyond our control) and assumptions that could cause actual results to differ materially from historical experience and present expectations or projections. Actual results to differ materially from those in the forward-looking statements and the trading price for our common stock may fluctuate significantly. Forward-looking statements also are affected by the risk factors described in the Company's filings with the U.S. Securities and Exchange Commission. Except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.

U.S. Press Contact: 
Strauss Communications 
joel@strausscomms.com
www.strausscomms.com

Investor Contacts:
Or Kles, CFO 
ir@mysizeid.com
Brian Loper
ClearThink
bloper@clearthink.capital

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SOURCE My Size Inc.

FAQ

What were MySize's revenues for 2021?

MySize reported revenues of $131,000 for the year ended December 31, 2021.

What strategic partnerships has MySize formed recently?

MySize has entered partnerships with companies like Levi's, Nautica, and Lacoste.

What is the significance of the FirstLook Smart Mirror?

The FirstLook Smart Mirror is designed to enhance the in-store shopping experience and improve conversion rates.

How does the acquisition of Orgad impact MySize?

The acquisition of Orgad provides MySize with greater capital access to improve inventory and accelerate growth.

What is MySize's current cash position?

As of December 31, 2021, MySize had a cash position of $10.7 million.