Company: MYSEW
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001013762-25-004290
Chunk: 825

Company: Myseum, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 5
Chunk 825
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 on sales are recognized
within operating expenses in the consolidated statements of operations. During the years ended December 31, 2024 and 2023, the Company
recorded an impairment loss of $0 and $23,381, respectively, which consists of the impairment of virtual real estate and digital currencies.
Based on the Company’s impairment analysis, the decrease in value of the virtual real estate and digital currencies, which was based
on the lowest market price quoted on an active exchange, was deemed to be other than temporary. Additionally, the Company determined that
it will not utilize its virtual real estate.

Property and equipment

Property and equipment are stated at cost and
are depreciated using the straight-line method over their estimated useful lives, which range from three to five years. Leasehold improvements
are depreciated over the shorter of the useful life or lease term including scheduled renewal terms. Maintenance and repairs are charged
to expense as incurred. When assets are retired or disposed of, the cost and accumulated depreciation are removed from the accounts, and
any resulting gains or losses are included in income in the year of disposition. The Company examines the possibility of decreases in
the value of these assets when events or changes in circumstances reflect the fact that their recorded value may not be recoverable.

Capitalized internal-use software costs

The Company capitalizes costs to develop or
purchase internal-use software in accordance with ASC section 350-40, Intangibles — Goodwill and
Other — Internal-Use Software. Costs incurred to develop internal-use software are expensed as incurred during
the preliminary project stage. Internal-use software development costs are capitalized upon purchase and during the application
development stage, which is after: (i) the preliminary project stage is completed; and (ii) management authorizes and commits to
funding the project and it is probable the project will be completed and used to perform the function intended. Capitalization
ceases at the point the software project is substantially complete and ready for its intended use, and after all substantial testing
is completed. Upgrades and enhancements are capitalized if it is probable that those expenditures will result in additional
functionality. Amortization is provided for on a straight-line basis over the expected useful life of the internal-use software
development costs and related upgrades and enhancements. When existing software is replaced with new software, the unamortized costs
of the old software are expensed when the new software is ready for its intended use. During the years ended December