Company: MYSEW
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001013762-25-004290
Chunk: 101

Company: Myseum, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 101
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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
fees on 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 years ended
December 31 2024 and 2023, 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 years ended December 31, 2024 and 2023, research and development costs incurred in the development
of the Company’s software products were $857,668 and $1,351,415, respectively. Research and development costs