Company: MYSEW
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001213900-25-110045
Chunk: 23

Company: Myseum, Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 1
Chunk 23
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 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 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
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 nine
months ending September 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 September 30, 2025 and 2024, research and development expense amounted
to $0 and $363,472, respectively. During the nine months ending September 30, 2025 and 2024, research and development expense amounted
to $11,000 and $823,448, 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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 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 $54,087 and $34,134 for the three months ending September 30, 2025 and 2024,