Company: MYSEW
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-044159
Chunk: 75

Company: Myseum, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 75
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 on the face of the consolidated statements of operations. Through January 10, 2024, the date that
VR Interactive purchased 8,000,000 shares of RPM Interactive from Metabizz LLC, any noncontrolling interest eliminated in consolidation.
Because this change in ownership moved from a consolidated entity (the VIE entities) to a nonconsolidated entity (VR Interactive), subsequent
to January 10, 2024 the Company ceased eliminating the noncontrolling interest in consolidation and recorded an initial negative noncontrolling
interest in total equity for the portion of equity ownership not attributable to DatChat based on the minority interest holders’
ownership interest in the carrying value of RPM Interactive’s equity. Due to the issuance of common shares by RPM Interactive, during
the three months ended March 31, 2025, the Company recorded aggregate initial negative noncontrolling interest of $188,810 in total equity
for the portion of additional equity ownership not attributable to the Company based on the minority interest holders’ ownership
interest in the carrying value of RPM Interactive’s equity. The Company also allocated $145,914 of the net loss of the subsidiary
to noncontrolling interest during the three months ended March 31, 2025. As a result of changes in RPM Interactive outstanding common
stock and the Company’s share of losses of subsidiary since January 2024, aggregate noncontrolling interest deficit amounted to
$2,472,513 as of March 31, 2025.

6 

DATCHAT, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

MARCH 31, 2025 AND 2024

(Unaudited)

Variable
interest entities

Pursuant to ASC 810-10-25-22, an entity is defined as a VIE if it either lacks sufficient equity to finance its activities
without additional subordinated financial support, or it is structured such that the holders of the voting rights do not substantively
participate in the gains and losses of the entity. When determining whether an entity that meets the definition of a business qualifies
for a scope exception from applying VIE guidance, the Company considers whether: (i) it has participated significantly in the design of
the entity, (ii) it has provided more than half of the total financial support to the entity, and (iii) substantially all of the activities
of the VIE are conducted on its behalf. A VIE is consolidated by