Company: MYSEW
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001013762-25-004290
Chunk: 750

Company: Myseum, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 4
Chunk 750
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 States income taxes, which
may be available to reduce future years’ taxable income. Management believes that the realization of the benefits from these losses
appears unlikely due to the Company’s limited operating history and continuing losses for United States income tax purposes. Accordingly,
the Company has provided a 100% valuation allowance on the deferred tax asset resulting from the net operating losses to reduce the asset
to zero. Management will review this valuation allowance periodically and make adjustments as necessary.

The items accounting for the difference between
income taxes at the effective statutory rate and the provision for income taxes for the years ended December 31, 2024 and 2023 were as
follows: 

    Year Ended December 31, 2024  
    Year Ended December 31, 2023 
  
    Income tax benefit at U.S. statutory rate 
    $(1,055,252) 
    $(1,765,044)
  
    Income tax benefit – State 
     (251,250) 
     (420,248)
  
    Non-deductible expenses 
     81,214  
     587,344 
  
    Change in valuation allowance 
     1,225,288  
     1,597,948 
  
    Total provision for income tax 
    $-  
    $- 

F-23

DATCHAT, INC. AND SUBSIDIARIES AND CONSOLIDATED ENTITIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

DECEMBER 31, 2024 and 2023

The Company’s approximate net deferred tax
asset on December 31, 2024 and 2023 was as follows:

    Deferred Tax Asset: 
    December 31, 2024  
    December 31, 2023 
  
    Net operating loss carryforward 
    $8,188,681  
    $6,963,393 
  
    Valuation allowance 
     (8,188,681) 
     (6,963,393)
  
    Net deferred tax asset 
    $-  
    $- 

Of the $31,494,927 of available net operating
losses, $1,403,306 begins to expire in 2034 and $30,091,621 which were generated after 2018 can be utilized indefinitely subject to annual
usage limitations.

The Company provided a valuation allowance equal to the deferred income
tax asset