Company: MYSEW
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-044159
Chunk: 83

Company: Myseum, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 83
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 contract term or period. Lifetime
subscriptions are being recognized to revenues over the estimated useful life of the subscription of 12 months. During the three months
ending March 31, 2025 and 2024, all of the Company’s revenue was generated from subscription revenues.

Research and Development

Research and development costs incurred in the
development of the Company’s products are expensed as incurred and include costs such as outside development costs, salaries and
other allocated costs incurred. During the three months ending March 31, 2025 and 2024, research and development costs incurred in the
development of the Company’s software products were $6,000 and $233,918, respectively. Research and development costs are included
in research and development expense on the accompanying unaudited consolidated statements of operations.

10 

DATCHAT, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

MARCH 31, 2025 AND 2024

(Unaudited)

Advertising Costs

The Company applies ASC 720 “Other Expenses”
to account for advertising related costs. Pursuant to ASC 720-35-25-1, the Company expenses advertising costs as they are incurred. Advertising
costs were $38,262 and $34,717 for the three months ending March 31, 2025 and 2024, respectively. Advertising costs are included in marketing
and advertising expenses on the unaudited consolidated statements of operations.

Leases

The Company applied ASC Topic 842, Leases (Topic
842) to arrangements with lease terms of 12 months or more. Operating lease right of use assets (“ROU”) represents the right
to use the leased asset for the lease term and operating lease liabilities are recognized based on the present value of the future minimum
lease payments over the lease term at commencement date. As most leases do not provide an implicit rate, the Company use an incremental
borrowing rate based on the information available at the adoption date in determining the present value of future payments. Lease expense
for minimum lease payments is amortized on a straight-line basis over the lease term and is included in general and administrative expenses
in the statements of operations.

Income taxes

The Company accounts for income taxes pursuant
to the provision of Accounting Standards Codification (“ASC”) 740-10, “Accounting for Income Taxes” (“ASC
740-10”), which requires, among other things, an asset and liability approach to calculating deferred income taxes