Company: MYSEW
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001013762-25-004290
Chunk: 674

Company: Myseum, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 4
Chunk 674
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 consolidated financial statements requires us to make estimates and assumptions that affect the reported
amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements,
and the reported amounts of revenue and expenses during the reported period. In accordance with U.S. GAAP, we base our estimates on historical
experience and on various other assumptions we believe to be reasonable under the circumstances. Actual results may differ from these
estimates if conditions differ from our assumptions. While our significant accounting policies and significant estimates are more fully
described in Note 2 in the “Notes to Financial Statements”, we believe the following estimates are critical to the process
of making significant judgments and estimates in preparation of our consolidated financial statements.

Capitalized internal-use software costs

We capitalize costs to develop or purchase internal-use software in
accordance with ASC section 350-40, Intangibles — Goodwill and Other — Internal-Use Software.
Costs incurred to develop internal-use software are expensed as incurred during the preliminary project stage. Internal-use software development
costs are capitalized upon purchase and during the application development stage, which is after: (i) the preliminary project stage is
completed; and (ii) management authorizes and commits to funding the project and it is probable the project will be completed and used
to perform the intended function. Capitalization ceases at the point where 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. Software development costs
incurred during the year ended December 31, 2024 and 2023 were expensed since the Metaverse software development project is in the preliminary
project stage. Such costs are included in research and development costs on the accompanying consolidated statement of operations.

28

Variable interest entities

Pursuant to ASC 810-10-25-22, an entity
is defined as a VIE if it either lacks sufficient equity to finance its activities without additional subordinated financial support,
or it is structured such that the holders of the voting rights do not substant