Company: MYSEW
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001013762-25-004290
Chunk: 652

Company: Myseum, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 3
Chunk 652
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reporting purposes and the amounts used for income tax purposes. The deferred tax assets on December 31, 2024 and 2023 consist of net
operating loss carryforwards. The net deferred tax asset has been fully offset by a valuation allowance because of the uncertainty of
the attainment of future taxable income.

The Company has incurred aggregate net operating losses of approximately
$31,494,900 for income tax purposes as of December 31, 2024. The net operating losses carry forward for United States income taxes, which
may be available to reduce future years’ taxable income. Management believes that the realization of the benefits from these losses
appears unlikely due to the Company’s limited operating history and continuing losses for United States income tax purposes. Accordingly,
the Company has provided a 100% valuation allowance on the deferred tax asset resulting from the net operating losses to reduce the asset
to zero. Management will review this valuation allowance periodically and make adjustments as necessary.

The items accounting for the difference between
income taxes at the effective statutory rate and the provision for income taxes for the years ended December 31, 2024 and 2023 were as
follows: 

    Year Ended December 31, 2024  
    Year Ended December 31, 2023 
  
    Income tax benefit at U.S. statutory rate 
    $(1,055,252) 
    $(1,765,044)
  
    Income tax benefit – State 
     (251,250) 
     (420,248)
  
    Non-deductible expenses 
     81,214  
     587,344 
  
    Change in valuation allowance 
     1,225,288  
     1,597,948 
  
    Total provision for income tax 
    $-  
    $- 

F-23

DATCHAT, INC. AND SUBSIDIARIES AND CONSOLIDATED ENTITIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

DECEMBER 31, 2024 and 2023

The Company’s approximate net deferred tax
asset on December 31, 2024 and 2023 was as follows:

    Deferred Tax Asset: 
    December 31, 2024  
    December 31, 2023 
  
    Net operating loss carryforward 
    $8,188,681  
    $6,963,393 
  
    Valuation allowance