Company: MYSEW
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076607
Chunk: 22

Company: Myseum, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 22
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 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
fees from the Company’s messaging application in the month they are earned. Annual and lifetime subscription payments received that
are related to future periods are recorded as deferred revenue to be recognized as revenues over the 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 and six
months ending June 30, 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 June 30, 2025 and 2024, research and development expense amounted to $5,000
and $226,058, respectively. During the six months ending June 30, 2025 and 2024, research and development expense amounted to $11,000
and $459,976, respectively. Research and development costs are included in research and development expense on the accompanying unaudited
consolidated statements of operations.

11

MYSEUM, INC. AND SUBSIDIARIES

(FORMERLY DATCHAT, INC.)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30, 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 $72,241 and $32,883 for the three months ending June 30, 2025 and 2024, respectively. Advertising costs were $110,503 and $67,600
for the six months ending June 30, 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