Company: MYSEW
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001213900-25-110045
Chunk: 163

Company: Myseum, Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 2
Chunk 163
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 other assumptions we believe to be reasonable under the circumstances. Actual results may differ from these
estimates if conditions differ from our assumptions. While our significant accounting policies and significant estimates are more fully
described in Note 2 in the “Notes to Financial Statements”, we believe the following estimates are critical to the process
of making significant judgments and estimates in preparation of our consolidated financial statements.

Capitalized internal-use software costs

We capitalize costs to develop or purchase internal-use
software in accordance with ASC section 350-40, Intangibles — Goodwill and Other — Internal-Use
Software. Costs incurred to develop internal-use software are expensed as incurred during the preliminary project stage. Internal-use
software development costs are capitalized upon purchase and during the application development stage, which is after: (i) the preliminary
project stage is completed; and (ii) management authorizes and commits to funding the project and it is probable the project will be completed
and used to perform the intended function. Capitalization ceases at the point where the software project is substantially complete and
ready 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. On August 1, 2025, certain internal-use
software was placed in service and such internal-use software development costs are being amortized since then on a straight-line basis
over the expected useful life of three years. 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 nine months ending September 30, 2025, we capitalized
certain software development costs incurred amounting to $190,838 since the Company’s software development projects were in the
application development stage. For the three and nine months ended September 30, 2025, amortization of intangible assets amounted to $9,212.
During the nine months ending September 30, 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