{"url_path":"/sec/myse/10-q/2026/item-1a","section_key":"item-1a","section_title":"Item 1A RISK FACTORS.**","topic":"sec","document":{"doc_type":"10-Q","doc_date":"2026-05-15","source_url":"https://www.sec.gov/Archives/edgar/data/1648960/0001213900-26-057778-index.html","accession_number":"0001213900-26-057778","cik":"0001648960","ticker":"MYSE","issuer_name":"Myseum.AI, Inc.","edgar_url":"https://www.sec.gov/Archives/edgar/data/1648960/0001213900-26-057778-index.html","primary_entity_key":"0001648960","primary_entity_name":"Myseum.AI, Inc."},"word_count":950,"has_tables":true,"body_markdown":"**ITEM 1A. RISK FACTORS.**\n\n** **\n\nRisk factors that affect our business and financial\nresults are discussed in Part I, Item 1A “Risk Factors,” in our Annual Report on Form 10-K for the year ended December 31,\n2025 as filed with the SEC on March 30, 2026 (“Annual Report”). Except as set forth below, there have been no material changes\nin our risk factors from those previously disclosed in our Annual Report. You should carefully consider the risks described in our Annual\nReport, which could materially affect our business, financial condition or future results. The risks described in our Annual Report are\nnot the only risks we face. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also\nmay materially adversely affect our business, financial condition, and/or operating results. If any of the risks actually occur, our business,\nfinancial condition, and/or results of operations could be negatively affected.\n\n \n\n**The use of new and evolving technologies,\nsuch as artificial intelligence, in our business may result in spending material resources and presents risks and challenges that can\nimpact our business including by posing security and other risks to our confidential and/or proprietary information, including personal\ninformation, and as a result we may be exposed to reputational harm and liability.**\n\n \n\nWe use artificial intelligence in our business\nprocesses, and this innovation presents risks and challenges that could affect its adoption, and therefore our business. The use of AI\npresents risks and challenges that could adversely affect our business and reputation, including cybersecurity, data privacy, IT, confidentiality,\nregulatory, legal, operational, competitive, reputational, intellectual property and other risks. Specifically, risks related to accuracy,\nbias, AI hallucinations, discrimination, harmful content, misinformation, fraud, scams, targeted attacks (including model poisoning or\ndata poisoning), surveillance, data leakage, bias and inequality, environmental and other harms may flow from our development or use of\nAI technologies. For example, use of certain AI tools may increase the risk of unauthorized disclosure of confidential information, compromise\nof proprietary intellectual property, or inadvertent inclusion of third-party intellectual property or other protected material, which\ncould result in disputes or claims of infringement.\n\n \n\nAdditionally, government and supranational regulation\nrelated to AI is evolving as new laws and regulations are implemented globally and could increase the operational cost of compliance,\nincluding through requirements related to transparency, accountability, risk management, human oversight, and data governance. We expect\nto see increasing regulation related to AI governance, use and ethics, which may also significantly increase the burden and cost of research,\ndevelopment and compliance in this area. For example, the EU’s Artificial Intelligence Act (“AI Act”) - the world’s\nfirst comprehensive AI law -entered into force on August 1, 2024, with most important provisions scheduled to become effective in August\n2026. As currently enacted, the AI Act imposes significant obligations on providers and deployers of high-risk AI systems and general\npurpose AI models, and encourages providers and deployers of AI systems to account for EU ethical principles when developing and using\nAI technology. The scope of requirements depends on legal and risk determinations that rely on novel legal provisions that have not yet\nbeen fully interpreted by courts or regulators, and non-compliance can lead to significant fines.\n\n \n\nIn the U.S., the regulatory environment is complex\nand uncertain. Over the past year, states have advanced, and in some cases passed, dozens of laws focusing on AI governance and regulation,\nincluding deployment of AI in healthcare settings. At the Federal level, the current executive administration has endorsed a federal moratorium\non the enforcement of state AI laws, including through a December 11, 2025, executive order on “Ensuring a National Policy Framework\nfor Artificial Intelligence.” So far, these efforts have not been successful at curtailing state action on AI regulation, contributing\nto a complicated legislative patchwork, which may be litigated in state and federal courts. In addition, there is continued uncertainty\nregarding the application of existing federal and state legal frameworks to uses and development of AI, and legal norms and market standards\nregarding AI continue to evolve. For example, various federal and state regulators have issued guidance and focused enforcement efforts\non the use of AI in regulated sectors. If we develop or use AI systems that are governed by these laws or regulations, including as informed\nby regulatory guidance, we will need to meet higher standards of data quality, transparency, and human oversight, and we would need to\nadhere to specific, potentially burdensome and costly ethical, accountability, and administrative requirements. We may also be subject\nto significant enforcement or litigation in the event of any perceived non-compliance.\n\n \n\nThe rapid evolution of AI will require the application\nof significant resources to design, develop, test and maintain our products and services to help ensure that AI is implemented in accordance\nwith applicable law and regulation and in a socially responsible manner and to minimize any real or perceived unintended harmful impacts.\nOur vendors may in turn incorporate AI tools into their offerings, and the providers of these AI tools may not meet existing or rapidly\nevolving regulatory or industry standards, including with respect to privacy and data security. Further, bad actors around the world use\nincreasingly sophisticated methods, including the use of AI, to engage in illegal activities involving theft and misuse of personal information,\nconfidential information and intellectual property. In addition, the use of generative AI models in our internal or third-party systems\nmay create new attack surfaces or methods for adversaries, which could impact us and our vendors. Any of these effects could damage our\nreputation, result in the loss of valuable property and information, cause us to breach applicable laws and regulations, and adversely\nimpact our business, financial condition and results of operation.\n\n \n\n29"}