Company: MYSEW
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001013762-25-004290
Chunk: 99

Company: Myseum, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 99
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 digital currencies and digital assets and the Company may use
third-party custodial services to secure them. The digital currencies and digital assets are initially recorded at cost and are subsequently
remeasured, net of any impairment losses incurred since acquisition. The Company believes that digital currencies and other digital assets
meet the definition of indefinite-lived intangible assets and accounts for them at historical cost less impairment, applying the guidance
in ASC 350. The Company monitors any standard-setting, regulatory or technological developments that may affect the Company’s accounting
for digital currencies or its controls and processes related to digital currencies.

F-11

DATCHAT, INC. AND SUBSIDIARIES AND CONSOLIDATED ENTITIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

DECEMBER 31, 2024 and 2023

The Company determines the fair value of its digital
currencies and other digital assets on a nonrecurring basis in accordance with ASC 820, Fair Value Measurement, based on quoted prices
on the active exchange(s) that it has determined is the principal market for Ethereum (Level 1 inputs) and other digital assets.
The Company performs an analysis each quarter to identify whether events or changes in circumstances, principally decreases in the quoted
prices on active exchanges, indicate that it is more likely than not that its digital assets are impaired. In determining if an impairment
has occurred, the Company considers the lowest market price quoted on an active exchange since acquiring the respective digital asset.
If the then current carrying value of a digital asset exceeds the fair value, an impairment loss has occurred with respect to those digital
assets in the amount equal to the difference between their carrying values and the fair value. The impaired digital assets are written
down to their fair value at the time of impairment and this new cost basis will not be adjusted upward for any subsequent increase in
fair value. Gains are not recorded until realized upon sale, at which point they are presented net of any impairment losses for the same
digital assets held. In determining the gain or loss to be recognized upon sale, the Company calculates the difference between the sales
price and carrying value of the digital assets sold immediately prior to sale. Impairment losses and gains or losses 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