Company: MVNC
Filing Date: 2025-05-19
Form Type: 10-Q
Source: 0001683168-25-003814
Chunk: 10

Company: Marvion Inc.
Filing Date: 2025-05-19
Form: 10-Q
Item: Part I, Item 1
Chunk 10
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The Company applies the following
five steps in order to determine the appropriate amount of revenue to be recognized as it fulfills its obligations under each of its agreements:

    ·
    identify the contract with a customer;

    ·
    identify the performance obligations in the contract;

    ·
    determine the transaction price;

    ·
    allocate the transaction price to performance obligations in the contract; and

    ·
    recognize revenue as the performance obligation is satisfied.

Revenue is recognized when the
Company satisfies its performance obligation under the contract by transferring the promised product to its customer that obtains control
of the product and collection is reasonably assured. A performance obligation is a promise in a contract to transfer a distinct product
or service to a customer. Most of the Company’s contracts have a single performance obligation, and such fees are billed to the
customer when the performance obligation is satisfied. The Company recognizes such revenue in the period when the amounts are determined
to be fixed and the performance obligation is satisfied as the Company completes the obligations.

Revenue is measured as the amount
of consideration the Company expects to receive in exchange for transferring products or providing services. As such, revenue is recorded
net of returns, allowances, customer discounts, and incentives. Sales taxes and other taxes are excluded from revenues.

Upon the development of
new warehouse building in October 2023, the Company focuses on the provision of logistic and warehousing services to the customers through
the storage of merchandise in its warehouse facilities, as well as packaging and delivery and transportation services from its warehouse
to domestic destinations designated by the customers.

     17 

Logistic services

Revenues from logistic solution
services to the customers, in which such local transportation, delivery and packaging services at the time the customers require packed
products to be shipped by the Company to domestic destinations designed by the customers. The Company’s performance obligation has
been satisfied when the products been delivered to the designated recipient and confirmed the completion with customer. Generally, the
Company will reconcile the delivery order with customer monthly and recognized revenue after completion of monthly reconciliation. The
Company will issue invoices to customers at each month end, and usually provide the receivable in a credit term of 30 days.

Warehousing services

Revenues from storage services
at the designated warehouse facilities are recognized ratably over the term of the contract or arrangement, as the Company performs contractual
obligations through continuous transfer of control to the customers, and they could simultaneously receive and consume the benefits of
the Company’s performance