Company: MYSEW
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001013762-25-004290
Chunk: 38

Company: Myseum, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 38
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stock rules, it would become more difficult to trade our shares.

The SEC has adopted rules that regulate broker-dealer
practices in connection with transactions in penny stocks. Penny stocks are generally equity securities with a price of less than $5.00,
other than securities registered on certain national securities exchanges or authorized for quotation on certain automated quotation
systems, provided that current price and volume information with respect to transactions in such securities is provided by the exchange
or system. If we do not obtain or retain a listing on the Nasdaq Capital Market or if the price of our common stock falls below $5.00,
our common stock will be deemed a penny stock. The penny stock rules require a broker-dealer, before a transaction in a penny stock not
otherwise exempt from those rules, to deliver a standardized risk disclosure document containing specified information. In addition,
the penny stock rules require that before effecting any transaction in a penny stock not otherwise exempt from those rules, a broker-dealer
must make a special written determination that the penny stock is a suitable investment for the purchaser and receive (i) the purchaser’s
written acknowledgment of the receipt of a risk disclosure statement; (ii) a written agreement to transactions involving penny stocks;
and (iii) a signed and dated copy of a written suitability statement. These disclosure requirements would likely have the effect of reducing
the trading activity in the secondary market for our common stock, and therefore stockholders may have difficulty selling their shares.

23

FINRA sales practice requirements may limit
a stockholder’s ability to buy and sell our stock.

In addition to the “penny stock”
rules described above, the Financial Industry Regulatory Authority, Inc. (“FINRA”), has adopted rules that require that in
recommending an investment to a customer, a broker-dealer must have reasonable grounds for believing that the investment is suitable
for that customer. Prior to recommending speculative, low-priced securities to their non-institutional customers, broker-dealers must
make reasonable efforts to obtain information about the customer’s financial status, tax status, investment objectives and other
information. The FINRA requirements may make it more difficult for broker-dealers to recommend that their customers buy our common stock,
which may have the effect of reducing the level of trading activity in our common stock. As a result, fewer broker-dealers may be willing
to make a market in our common stock, reducing a stockholder’s ability to resell shares, as well as overall liquidity, of our common
stock.

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