How to add new Mime Type and associate with new application?

In case someone comes across the same problem. I found the answer:

1. Create new Mime Type. You can specify a different mime-type, in this video the author is using text, but you can use application or image etc.. All available types are listed in "usr/share/mime" folder.
2. Create your custom application and put a symlink into "usr/bin" folder.
3. Navigate to "~.local/share/applicatons" folder and create new_mime_name.desktop file.

4. Fill in information pertaining to your application. Here is an example of mine:

   [Desktop Entry]
   Terminal=false
   Icon=libreoffice-math
   Type=Application
   Categories=Application;Utility;
   Exec=shim %f
   MimeType=application/xy2;
   Name=shim
   Comment=shim tool
   

5. Associate file types with your application. Read post from OM55 user.

6. You might need to reboot your system.