Company: MYSEW
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001013762-25-004290
Chunk: 630

Company: Myseum, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 3
Chunk 630
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 perform the function intended. Capitalization
ceases at the point the software project is substantially complete and ready for its intended use, and after all substantial testing
is completed. Upgrades and enhancements are capitalized if it is probable that those expenditures will result in additional
functionality. Amortization is provided for on a straight-line basis over the expected useful life of the internal-use software
development costs and related upgrades and enhancements. When existing software is replaced with new software, the unamortized costs
of the old software are expensed when the new software is ready for its intended use. During the years ended December 31, 2024 and
2023, software development costs incurred internally, other than purchased software, were expensed since the Company’s
software development projects were in the preliminary project stage. Such costs were included in research and development costs on
the accompanying consolidated statement of operations.

F-12

DATCHAT, INC. AND SUBSIDIARIES AND CONSOLIDATED ENTITIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

DECEMBER 31, 2024 and 2023

Impairment of long-lived assets

In accordance with ASC Topic 360, the Company
reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may
not be fully recoverable, or at least annually. The Company recognizes an impairment loss when the sum of expected undiscounted future
cash flows is less than the carrying amount of the asset. The amount of impairment is measured as the difference between the asset’s
estimated fair value and its book value.

Revenue recognition

The Company recognizes revenue in accordance with
ASC Topic 606 Revenue from Contracts with Customers, which requires revenue to be recognized in a manner that depicts the transfer of
goods or services to customers in amounts that reflect the consideration to which the entity expects to be entitled in exchange for those
goods or services.

In accordance with ASU Topic 606 - Revenue
from Contracts with Customers, the Company recognizes revenue in accordance with that core principle by applying the following steps:

Step 1: Identify the contract(s) with
a customer.

Step 2: Identify the performance obligations
in the contract.

Step 3: Determine the transaction
price.

Step 4: Allocate the transaction price
to the performance obligations in the contract.

Step 5: Recognize revenue when (or
as) the entity satisfies a performance obligation.

The Company recognizes revenues from subscription
fe