Executive Summary / Key Takeaways

• Strategic Transformation: Myseum, Inc. (NASDAQ:MYSE) is undergoing a significant strategic pivot, rebranding from DatChat to align with its core focus on the Myseum privacy-first digital legacy platform and its subsidiary RPM Interactive's AI-driven content publishing.
• Differentiated Technology: The company boasts proprietary technology in secure messaging (DatChat Messenger) and AI-backed content management (Myseum, RenAI), offering granular user control, screenshot prevention, and secure digital content preservation, creating a distinct competitive moat.
• Investment Phase Financials: Current financial performance reflects an early-stage investment phase, characterized by minimal revenues ($78 in Q2 2025) and ongoing operating losses ($1.36 million in Q2 2025), funded by recent capital raises and an active at-the-market (ATM) offering program.
• Growth Catalysts & Outlook: Future growth hinges on the successful adoption of the Myseum platform (with upcoming upgrades and a desktop version), the potential initial public offering (IPO) of its RPM Interactive subsidiary, and strategic partnerships like that with The Photo Managers.
• Key Risks to Monitor: Investors should closely watch the company's ability to achieve significant user adoption and revenue growth, manage sustained operating losses, address identified material weaknesses in internal controls, and navigate intense competition from larger, established players.

The Digital Frontier: Privacy, Legacy, and AI

Myseum, Inc., formerly known DatChat, Inc., is carving out a unique position in the evolving digital landscape, centered on the fundamental human desire for privacy and the preservation of personal legacies. The company, which officially rebranded to Myseum, Inc. on August 7, 2025, with its stock now trading under the symbol MYSE, is a cybersecurity and social media entity dedicated to protecting user information even after it has been shared. This mission underpins its dual strategic pillars: the DatChat Messenger Private Social Network and the innovative Myseum social media platform, complemented by its AI-driven content subsidiary, RPM Interactive.

The broader industry is witnessing an accelerating demand for robust digital privacy solutions and sophisticated content management tools. Users are increasingly aware of data vulnerabilities, while the rise of AI is transforming content creation and organization. Myseum's strategy directly addresses these trends, positioning itself as a specialized player in a market often dominated by broader, less privacy-centric platforms.

Technological Edge: The Core of Myseum's Moat

Myseum's investment thesis is deeply rooted in its differentiated and patented technology, which provides a tangible competitive advantage.

The DatChat Messenger Private Social Network, the company's flagship product, offers unparalleled control over digital communications. Its proprietary technology allows users to delete messages from both their own device and the recipient's device, with no set time limit for this action. This feature alone offers a level of post-send control largely absent in mainstream messaging apps. Furthermore, the application includes a screenshot protection system, making it virtually impossible for recipients to capture messages or pictures before they are destroyed. Users can also hide secret, encrypted messages behind a cover, which automatically self-destruct after a fixed number of views or a set time. The platform integrates encrypted live video chat, also designed to prevent screenshots, and offers iMessage integration, extending its privacy features to a wider audience. This suite of features directly addresses the "so what" for investors by building a foundation of user trust and control, which can drive adoption among privacy-conscious individuals and potentially command premium pricing in the long term. The recent Notice of Allowance for a European Patent Application for "Systems and Methods of Transforming Electronic Content" further strengthens this intellectual property moat.

The Myseum social media platform represents the company's strategic expansion into digital legacy and secure content management. Backed by AI technology and proprietary software, this multi-tiered ecosystem allows individuals, families, and groups to store and share digital content—messages, photos, videos, and documents—within a highly secure and private family library. Users can create public albums, private encrypted galleries with limited access, personalize newsfeeds, and even leave time-released video messages for future generations. A compelling feature is the provision of 50 GB of free "Timeless Storage," with additional "Forever Storage" available for a one-time charge of $29.95 per 50 GB. This model aims to monetize long-term storage and content preservation needs. The AI capabilities, enhanced by the August 2024 acquisition of RenAI Software (an AI tool for media library organization, tagging, and renaming images with integration to Gemini, OpenAI, and Claude), make saving and organizing private media significantly easier. For investors, this platform targets a growing market for secure, long-term digital content management, leveraging AI to simplify a complex task and offering a clear monetization path through storage subscriptions.

Finally, RPM Interactive, Inc., Myseum's majority-owned subsidiary (with Myseum holding approximately 34% ownership as of June 30, 2025), has pivoted to become an AI-generated publishing company. It leverages generative AI systems to create trivia mobile game apps and vodcasts/podcasts across hundreds of evergreen topics daily, distributing content to all major streaming platforms. This initiative taps into the burgeoning AI content creation market, aiming for scalable, efficient content generation. This diversification into AI publishing offers investors exposure to a high-growth area, with RPM Interactive's recent filing of a registration statement for a proposed initial public offering signaling potential future value realization.

Strategic Evolution and Competitive Dynamics

Myseum's journey has been one of continuous adaptation. Initially focused on the DatChat Messenger, the company expanded into the metaverse with "The Habytat" platform. However, a strategic re-evaluation led to the cessation of Habytat development in October 2024, with the company now exploring ways to repurpose its underlying technology. This move highlights management's willingness to pivot resources towards more promising ventures.

The acquisition of RenAI Software in August 2024 and RPM Florida in October 2024 (which brought generative AI capabilities) were pivotal in shaping the current AI-driven content strategy for RPM Interactive. The subsequent cancellation of 3.5 million RPM shares in January 2025 adjusted Myseum's ownership, streamlining the subsidiary's capital structure ahead of its potential IPO.

In the competitive landscape, Myseum's DatChat Messenger stands out against giants like Meta Platforms (META) (WhatsApp), Signal, Telegram, and Proton. While Meta's WhatsApp boasts an immense user base and robust financial performance (e.g., Meta's TTM Gross Profit Margin of 82% dwarfs Myseum's negative margins), Myseum's core differentiator lies in its granular control over message lifespan, screenshot prevention, and encrypted photo concealment. These features offer a qualitatively more robust privacy layer, appealing to users who prioritize discretion over sheer network size. Myseum's privacy-focused strategy aims to foster network effects within secure communities, potentially enhancing pricing power and customer loyalty, which could translate into improved margins over time.

The Myseum platform, with its digital legacy focus, differentiates itself from general social media by offering a secure, private family library. This niche positioning, backed by AI for organization, aims to attract users seeking more than ephemeral social interactions. A strategic partnership with The Photo Managers, a network of over 700 professional photo managers, is particularly valuable as Myseum prepares to launch its enterprise offering, providing insights and a direct channel to a professional audience passionate about digital asset organization. This collaboration is designed to shape a platform that meets real-world needs for preserving and sharing stories across generations.

However, Myseum faces significant competitive disadvantages, primarily its limited scale compared to established players. This can lead to higher customer acquisition costs and challenges in achieving the network effects enjoyed by larger platforms. While its proprietary technology and privacy focus are strong moats, the company must execute flawlessly to overcome these scale-related vulnerabilities.

Financial Performance: A Snapshot of Transition

Myseum's recent financial performance reflects a company in a significant investment and transition phase, with minimal revenue generation as it builds out its new platforms.

For the three months ended June 30, 2025, Myseum reported net revenues of $78, a substantial decrease from $151 in the same period last year, representing a 48.34% decline. Similarly, for the six months ended June 30, 2025, revenues were $161, down from $282 in the prior year, a 42.89% decrease. All reported revenue stemmed from subscription services. This minimal revenue is a critical indicator of the early stage of monetization for its new ventures.

Operating expenses for the three months ended June 30, 2025, totaled $1.41 million, an 11.0% increase from $1.27 million in the prior year. For the six-month period, operating expenses rose 4.7% to $3.07 million from $2.93 million. Key drivers include:

• Compensation and related expenses: Increased by $156,511 (29.9%) in Q2 2025 and $226,127 (15.9%) in H1 2025, primarily due to an increase in stock-based compensation from new stock option issuances.
• Marketing and advertising expenses: Rose by $39,358 (119.7%) in Q2 2025 and $42,903 (63.5%) in H1 2025, reflecting increased promotions, branding, and digital marketing efforts for its new platforms.
• Professional and consulting expenses: Increased by $160,622 (64.2%) in Q2 2025 and $362,481 (71.9%) in H1 2025, driven by higher investor relations, accounting, legal, and Edgar agent fees.
• Research and development expenses: Significantly decreased by $221,058 (97.8%) in Q2 2025 and $448,976 (97.6%) in H1 2025. This sharp reduction is a direct result of the company ceasing development of its Metaverse software (Habytat) as of June 30, 2025, reallocating resources to its core Myseum and RPM Interactive initiatives.

The company reported a net loss of $1.36 million for the three months ended June 30, 2025, an increase from $1.20 million in the prior year. For the six-month period, the net loss was $2.98 million, up from $2.77 million. The net loss attributable to common shareholders was $1.22 million ($0.29 per share) for Q2 2025 and $2.69 million ($0.65 per share) for H1 2025. These figures underscore the company's current focus on investment over immediate profitability.

From a liquidity standpoint, as of June 30, 2025, Myseum held cash and cash equivalents of $407,888 and short-term investments of $5.31 million (primarily highly-rated U.S. Treasury zero coupon bills), resulting in a working capital of $5.14 million. Net cash used in operating activities for the six months ended June 30, 2025, was $2.61 million. The company bolstered its cash position with $4.53 million in net proceeds from a common stock offering in January 2025 and has an active at-the-market (ATM) offering program in place to sell up to $6.00 million in common shares, with plans to raise capital through this mechanism in the future. Management believes its existing working capital and cash will be sufficient to meet operating needs for the next twelve months.

Outlook and Growth Catalysts

Myseum's outlook is firmly centered on the successful execution of its growth strategy for the Myseum platform and the continued development of RPM Interactive. Management explicitly states an expectation to "continue to generate operating losses in the foreseeable future," reflecting the ongoing investment required for platform development, marketing, and scaling operations.

Key catalysts for future growth include:

• Myseum Platform Adoption: The company is preparing for an "upcoming Myseum platform upgrade" designed to enhance photo and video sharing, with a desktop version "planned for later this year." CEO Darin Myman has expressed high expectations, stating the company is "in a unique position to introduce to the world this fall a new form of social networking that should become an important part of daily life" and has "the potential to be a viral success quickly."
• RPM Interactive IPO: The subsidiary's filing of a registration statement for a proposed IPO could provide a significant capital event, either through a direct offering or by unlocking value for Myseum's stake.
• Strategic Partnerships: The collaboration with The Photo Managers is expected to provide valuable insights and marketing channels, particularly as Myseum prepares to launch its enterprise offering, potentially expanding its addressable market.
• Technological Advancement: Continued development and patent protection for its privacy technologies, coupled with AI integration for content management and creation, are expected to drive user value and differentiation.

Risks and Challenges

Despite its strategic vision and technological foundation, Myseum faces several pertinent risks that warrant close investor attention:

• Sustained Operating Losses and Liquidity: The company's history of operating losses and the expectation of continued losses in the foreseeable future mean it remains highly dependent on external capital raises, such as its ATM program, to fund operations and growth initiatives. Any difficulty in accessing capital could severely impact its strategic plans.
• Intense Competition and User Adoption: Operating in highly competitive markets, Myseum must achieve significant user adoption for both its DatChat Messenger and Myseum platforms. Competing against well-capitalized tech giants like Meta and established privacy-focused apps requires substantial marketing and product differentiation.
• Internal Control Weaknesses: As of June 30, 2025, management identified material weaknesses in internal control over financial reporting, including a lack of segregation of duties, insufficient multi-level management review, and inadequate system/manual controls. While remediation plans are in place, these weaknesses pose risks to financial reporting reliability and operational efficiency until fully resolved.
• Cash Concentration Risk: The company holds cash and cash equivalents at a single financial institution, with amounts exceeding FDIC insurance limits. A failure of this institution could lead to material losses, impacting liquidity and operational continuity.
• Execution Risk: The successful launch and scaling of new platforms, integration of AI technologies, and realization of value from the RPM Interactive IPO all depend on effective execution by management.

Conclusion

Myseum, Inc. is embarking on a bold transformation, repositioning itself as a leader in privacy-first digital legacy and AI-driven content. Its core investment thesis rests on the strength of its differentiated technology, offering users unparalleled control over their digital footprint and innovative solutions for content preservation and creation. The strategic pivot towards the Myseum platform and RPM Interactive's AI publishing, backed by recent capital raises and strategic partnerships, signals a clear intent to capture value in high-growth segments of the digital economy.

While the company currently operates with minimal revenue and ongoing losses, this reflects a necessary investment phase to build out its foundational platforms and acquire users. The path to profitability hinges on the successful execution of its growth strategy, particularly the adoption of the Myseum platform and the potential for RPM Interactive's IPO. Investors considering Myseum must weigh the significant long-term potential of its technological leadership and strategic vision against the inherent risks of an early-stage company, including intense competition, reliance on external funding, and the need to address internal control deficiencies. The coming quarters will be crucial in demonstrating the company's ability to convert its innovative technology into sustainable market traction and financial success.