Company: MYSEW
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001213900-25-110045
Chunk: 19

Company: Myseum, Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 1
Chunk 19
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The preparation of the financial statements in
conformity with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions that affect
the reported amounts of assets, liabilities, revenues, expenses, and the related disclosures at the date of the consolidated financial
statements and during the reporting period. Actual results could materially differ from these estimates. Significant estimates include
assumptions used in assessing impairment of long-term assets, the valuation of intangible assets, the valuation of digital currencies
and other digital assets, the valuation of lease liabilities and related right of use assets, the valuation of short-term investments,
the valuation of deferred tax assets, the fair value of assets and liabilities of VIE’s on the initial VIE consolidation date, the
allocation of corporate expenses to subsidiaries which impacts noncontrolling interest, and the fair value of non-cash equity transactions.

Cash and cash equivalents

The Company considers all highly liquid debt instruments
and other short-term investments with maturities of three months or less, when purchased, to be cash equivalents. The Company maintains
cash and cash equivalent balances at one financial institution that is insured by the Federal Deposit Insurance Corporation (“FDIC”).
The Company’s account at this institution is insured by the FDIC up to $250,000. On September 30, 2025 and December 31, 2024, the
Company had cash in excess of FDIC limits of approximately $125,000 and $524,000, respectively. To reduce its risk associated with the
failure of such financial institution, the Company evaluates at least annually the rating of the financial institution in which it holds
deposits. Any material loss that the Company may experience in the future could have an adverse effect on its ability to pay its operational
expenses or make other payments and may require the Company to move its cash to other high quality financial institutions.

9

MYSEUM, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 2025 AND 2024

(Unaudited)

Fair value measurements and fair value of
financial instruments

The carrying value of certain financial instruments,
including cash and cash equivalents, accounts payable and accrued expenses, and due to related party are carried at historical cost basis,
which approximates their fair values because of the short-term nature of these instruments.

The Company analyzes all financial instruments
with features of both liabilities and equity under the Financial Accounting Standard Board’s (the “