Company: MVNC
Filing Date: 2025-05-19
Form Type: 10-Q
Source: 0001683168-25-003814
Chunk: 50

Company: Marvion Inc.
Filing Date: 2025-05-19
Form: 10-Q
Item: Part I, Item 8
Chunk 50
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 that have not yet been placed into service for their intended use. No depreciation
is provided for construction in progress until the assets are completed and are placed into service. Construction payable represented
the development costs payable from the construction of warehouse facilities.

Impairment of Long-lived Assets

In accordance with the provisions
of ASC Topic 360, Impairment or Disposal of Long-Lived Assets, all long-lived assets such as property, plant and equipment and
construction in progress owned and held by the Company are reviewed for impairment whenever events or changes in circumstances indicate
that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is evaluated by a comparison
of the carrying amount of an asset to its estimated future undiscounted cash flows expected to be generated by the asset. If such assets
are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amounts of the assets exceed
the fair value of the assets. There was no impairment of long-lived assets identified for the three months ended March 31, 2025 and 2024.

Leases

The Company adopts the FASB Accounting
Standards Update (“ASU”) 2016-02 “Leases (Topic 842)” for all periods presented. This standard requires lessees
to recognize lease assets (“right-of-use”) and related lease obligations (“lease liabilities”) on the unaudited
condensed consolidated balance sheet for leases with terms in excess of twelve months. For lease terms of twelve months or fewer, a lessee
is permitted to make an accounting policy election not to recognize lease assets and liabilities.

The Company determines if an
arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets and operating
lease liabilities in the unaudited condensed consolidated balance sheets. Finance leases are included in finance lease ROU assets and
finance lease liabilities in the unaudited condensed consolidated balance sheets.

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ROU assets represent the Company’s
right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments
arising from the lease. Operating lease and finance lease ROU assets and liabilities are recognized, based on the present value of lease
payments over the lease term discounted using the rate implicit in the lease. In cases where the implicit rate is not readily determinable,
the Company uses its incremental borrowing rate based on the information available at commencement