Company: MYSEW
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-044159
Chunk: 138

Company: Myseum, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 2
Chunk 138
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 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 the 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 three months ending March 31, 2025, we capitalized certain software development costs incurred amounting to $72,625 since the Company’s
software development projects were in the application development stage. During the three months ending March 31, 2024, software development
costs incurred internally, other than purchased software, were expensed since the Company’s software development projects were in
the preliminary project stage. Such costs were included in research and development costs on the accompanying unaudited consolidated statement
of operations and comprehensive loss.

Noncontrolling interests

The Company follows ASC Topic 810, “Consolidation,”
governing the accounting for and reporting of noncontrolling interests (“NCI”) in partially owned consolidated subsidiaries
and the loss of control of subsidiaries. Certain provisions of this standard indicate, among other things, that NCI be treated as a separate
component of equity, not as a liability, that increases and decreases in the parent’s ownership interest that leave control intact
be treated as equity transactions rather than as step acquisitions or dilution gains or losses, and that losses of a partially-owned consolidated
subsidiary be allocated to noncontrolling interests even when such allocation might result in a deficit balance. The net loss attributed
to NCI was separately designated in the accompanying consolidated statements of operations and comprehensive loss. Losses attributable
to NCI in a subsidiary may exceed a NCI’s interests in the subsidiary’s equity. The excess attributable to NCI is attributed
to those interests. NCI shall continue to be attributed their share of losses even if that attribution results in a deficit NCI balance.

The Company allocates certain corporate common
expenses to its subsidiaries based on the ratio of direct subsidiary expenses to total consolidated expenses. Management believes that
this allocation method is reasonable.

The Company accounts for its noncontrolling interest in RPM Interactive
in accordance with ASC Topic 810-10-45, which requires the Company to present noncontrolling interests as a separate component of total