Company: MYSEW
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001013762-25-004290
Chunk: 533

Company: Myseum, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 2
Chunk 533
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 Company recorded research and development expense
of $166,667 since the Company is still in the development stage and spends most of its time and efforts planning, raising capital, and
performing research and development and accordingly, the recoverability of the cost was not certain. Research and development expense
was calculated as follows:

    Amount 
  
    Fair value of 8,000,000 shares RPM Interactive shares transferred based on recent sales of RPM Interactive shares at $0.30 per share 
    $2,400,000 

    Less: gain recognized as difference between fair value of 8,000,000 shares calculated above and allocated costs of investment in RPM Interactive and included in research and development 
     (2,233,333)

    Research and development expense recorded, net 
    $166,667 

F-13

DATCHAT, INC. AND SUBSIDIARIES AND CONSOLIDATED ENTITIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

DECEMBER 31, 2024 and 2023

Advertising costs

The Company applies ASC 720 “Other Expenses”
to account for advertising related costs. Pursuant to ASC 720-35-25-1, the Company expenses advertising costs as they are incurred. Advertising
costs were $128,656 and $388,444 for the years ended December 31, 2024 and 2023, respectively, and are included in marketing and advertising
expenses on the consolidated statements of operations.

Leases

The Company applied ASC Topic 842, Leases (Topic
842) to arrangements with lease terms of 12 months or more. Operating lease right of use assets (“ROU”) represents the right
to use the leased asset for the lease term and operating lease liabilities are recognized based on the present value of the future minimum
lease payments over the lease term at commencement date. As most leases do not provide an implicit rate, the Company use an incremental
borrowing rate based on the information available at the adoption date in determining the present value of future payments. Lease expense
for minimum lease payments is amortized on a straight-line basis over the lease term and is included in general and administrative expenses
in the statements of operations.

Income Taxes

The Company accounts for income taxes pursuant
to the provision of Accounting Standards Codification (“ASC”) 740-10, “Accounting for Income Taxes” (“ASC
740-10”), which requires, among other things, an asset and liability