Company: MYSEW
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001013762-25-004290
Chunk: 1186

Company: Myseum, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 8
Chunk 1186
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 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 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