Myseum.AI, Inc. (MYSE) - Q3 2025 10-Q Summary
Business Context and Reporting Period
This Quarterly Report on Form 10-Q covers the period ended September 30, 2025. Myseum, Inc. (formerly DatChat, Inc.) operates as a cybersecurity and social media company. Its flagship product is the DatChat Messenger & Private Social Network. In March 2025, the company expanded into the "Myseum" platform for digital content management. The company also holds a controlling interest in RPM Interactive, Inc., a subsidiary focused on AI-generated gaming and podcasting. On August 7, 2025, the company changed its name to Myseum, Inc., and its trading symbol to "MYSE" on the Nasdaq Capital Market.
Key Financial Metrics
| Metric | Q3 2025 (3 Months) | Q3 2024 (3 Months) | YTD 2025 (9 Months) | YTD 2024 (9 Months) |
|---|---|---|---|---|
| Net Revenues | $328 | $62 | $489 | $344 |
| Operating Expenses | $1,280,929 | $1,238,246 | $4,348,364 | $4,169,050 |
| Net Loss | $(1,231,481) | $(1,183,458) | $(4,207,780) | $(3,949,373) |
| Net Loss Attributable to Common Shareholders | $(1,201,477) | $(1,271,801) | $(3,891,545) | $(3,392,860) |
| Net Loss Per Share (Basic & Diluted) | $(0.28) | $(0.42) | $(0.93) | $(1.15) |
| Cash and Cash Equivalents (End of Period) | $457,626 | $632,497 | $457,626 | $632,497 |
| Short-Term Investments | $4,346,310 | $2,952,512 | $4,346,310 | $2,952,512 |
| Working Capital | $4,193,316 | N/A | $4,193,316 | N/A |
| Total Debt (Notes Payable) | $40,000 | $0 | $40,000 | $0 |
Material Changes vs. Prior Period
- Revenue: Remains negligible. YTD revenue increased slightly to $489 from $344 in the prior year, derived entirely from subscription fees.
- Operating Expenses: Increased 4.3% YTD to $4.35 million. The primary driver was a 28.7% increase in compensation and related expenses (to $2.42 million), largely due to $496,395 in additional stock-based compensation from new option grants. Marketing expenses rose 61.8% YTD to $164,590.
- Research & Development: Decreased significantly by 98.7% YTD to $11,000, as the company ceased development of its Metaverse software (Habytat) in 2024.
- Liquidity: Cash and cash equivalents decreased by $739,073 YTD due to operating losses and net investing outflows, despite a $4.53 million equity raise in January 2025. However, total liquid assets (cash + short-term investments) increased to approximately $4.8 million.
- Capital Structure: The company issued 1,200,000 shares of common stock in January 2025 for net proceeds of $4.53 million. It also entered into an "at-the-market" (ATM) offering program with a $6 million cap.
Guidance, Outlook, and Risks
- Outlook: Management expects to continue generating operating losses in the foreseeable future due to corporate overhead, R&D, and public company costs. The company believes current working capital is sufficient to meet needs for the next 12 months.
- Strategic Shift: The subsidiary RPM Interactive has pivoted from the Habytat platform to focus on AI-generated publishing, trivia games, and vodcasts/podcasts.
- Internal Controls: Management concluded that disclosure controls and procedures were not effective as of September 30, 2025. Material weaknesses include a lack of segregation of duties, insufficient management review levels, and inadequate system/manual controls.
- Risks: Key risks include the need for additional financing, reliance on third-party organizations, regulatory approval for product candidates, and the inherent uncertainties of forward-looking statements regarding growth and market acceptance.
Investor Verification Checklist
- Cash Burn Rate: Verify the sustainability of the $3.5 million net cash used in operating activities over nine months against the $4.8 million in liquid assets.
- Revenue Recognition: Confirm the source and sustainability of the minimal subscription revenue ($489 YTD) and the status of the new Myseum platform monetization.
- Stock-Based Compensation: Review the impact of the $530,582 in stock-based compensation and professional fees on future expense recognition, given the significant option grants in 2025.
- Internal Control Remediation: Assess the timeline and cost for remediation of the identified material weaknesses in internal controls over financial reporting.
- Subsidiary Status: Verify the ownership percentage and financial performance of RPM Interactive, which is consolidated as a Variable Interest Entity (VIE) with a significant noncontrolling interest deficit.