Myseum.AI, Inc. (MYSE) 10-K Summary
Business Context and Reporting Period
Company: Myseum, Inc. (formerly DatChat, Inc.)
Reporting Period: Fiscal year ended December 31, 2025
Business Overview: Myseum is a privacy and social media technology company. Its flagship products include "Picture Party by Myseum" (launched December 2025), a social sharing platform for photos and videos, and "DatChat Messenger," a private encrypted messaging app. The company also operates the "Myseum" social media platform for digital legacy creation.
Corporate Status: The company is classified as a "smaller reporting company" and an "emerging growth company."
Key Financial Metrics
| Metric | 2025 | 2024 |
|---|---|---|
| Net Revenues | $550 | $436 |
| Operating Expenses | $5,490,608 | $3,217,603 |
| Loss from Continuing Operations | $(5,254,646) | $(2,948,415) |
| Gain from Discontinued Operations | $2,214,527 | $(2,076,592) |
| Net Loss | $(3,040,119) | $(5,025,007) |
| Net Loss Attributable to Shareholders | $(2,607,272) | $(4,239,160) |
| Cash and Cash Equivalents (Year End) | $749,030 | $766,985 |
| Short-Term Investments | $2,981,909 | $2,952,512 |
| Working Capital | $3,045,399 | Not explicitly stated |
| Net Cash Used in Operating Activities | $(4,267,074) | $(4,811,145) |
Material Changes vs. Prior Period
- Discontinued Operations: The most significant change was the deconsolidation of RPM Interactive, Inc. (a former majority-owned subsidiary focused on AI gaming and podcasting) on December 12, 2025. The company sold its interest to Avalon GloboCare Corp. in exchange for Series E Preferred Stock (valued at $2.92 million). This resulted in a $2.88 million gain on deconsolidation, turning a loss from discontinued operations in 2024 into a gain in 2025.
- Revenue: Revenue remains nominal ($550 in 2025 vs. $436 in 2024), derived entirely from subscription fees.
- Operating Expenses: Increased by 70.6% to $5.49 million. This was driven by a 73.2% increase in compensation (due to stock-based compensation) and a 142.6% increase in professional and consulting fees.
- Net Loss: Total net loss decreased by 39.5% to $3.04 million, primarily due to the gain from discontinued operations offsetting the increased operating losses from continuing operations.
- Capital Structure: The company raised $4.53 million from the sale of common stock in 2025. Series B Preferred Stock was cancelled and retired in 2025.
Guidance, Outlook, Risks, and Unusual Items
- Going Concern: The filing explicitly states that conditions raise "substantial doubt" about the company's ability to continue as a going concern within one year. The company has incurred losses since inception and relies on raising additional capital to fund R&D and operations.
- Outlook: Management plans to monetize platforms through in-app purchases, subscriptions for small businesses, and advertising. No specific financial guidance was provided.
- Unusual Items:
- Gain on Deconsolidation: $2.88 million gain from the sale of RPM Interactive.
- Gain on Extinguishment of Liabilities: $62,658 gain related to the reduction of a liability for the "Ambassador Settlement" program.
- Risks:
- Limited operating history and lack of sustainable revenue.
- Dependence on third-party platforms (Apple App Store, AWS) for distribution and infrastructure.
- Intense competition from established players (Snapchat, WhatsApp, Facebook, etc.).
- Regulatory risks regarding data privacy (GDPR, CCPA) and cybersecurity.
- Material weaknesses in internal controls over financial reporting (lack of segregation of duties).
Investor Verification Checklist
- Liquidity Runway: Verify the sufficiency of the $3.73 million in cash and short-term investments against the $4.27 million annual cash burn rate from operations.
- Revenue Trajectory: Confirm if the nominal revenue ($550) is indicative of a lack of market adoption or a pre-launch phase for new monetization features.
- Discontinued Operations: Review the valuation methodology for the Avalon GloboCare Series E Preferred Stock received ($2.92 million fair value vs. $6.56 million stated value) to understand the liquidity and convertibility of this asset.
- Internal Controls: Assess the remediation plan for the identified material weaknesses in internal controls over financial reporting.
- Capital Raises: Monitor the status of the "at-the-market" offering program (up to $3.5 million) and the ability to execute future equity raises given the current market conditions.