Company: MVNC
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001683168-25-008388
Chunk: 9

Company: Marvion Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 9
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ed at the gross billing amounts due from customers, less an allowance for expected credit losses. Accounts receivable do not bear
interest and are considered overdue after 30 days from the date of invoices. The Company regularly assesses the expected credit losses
for accounts receivable based on assessments of the recoverability of the accounts receivable and individual account analysis, including
the current creditworthiness and the past collection history of each customer and current economic industry trends. Impairments arise
when there is objective evidence indicating that the balances may not be collectible. The identification of bad and doubtful debts, in
particular of a loss event, requires the use of judgment and estimates, which involve the estimates of specific losses on individual exposures,
as well as a provision on historical trends of collections. Based on analysis of customers’ credit and ongoing relationship, management
makes conclusions about whether any balances outstanding at the end of the period will be deemed non-collectible on an individual basis
and on aging analysis basis. The allowance for expected credit losses is recorded against accounts receivables balances, with a corresponding
charge recorded in the unaudited condensed consolidated statements of operations. Delinquent account balances are written off against
the allowance for expected credit losses after management has determined that the likelihood of collection is not probable.

As of September 30, 2025
and December 31, 2024, no allowance for expected credit losses is recorded as the Company considers all of the outstanding accounts receivable
fully collectible in the foreseeable future.

Property and equipment

Property and equipment are
stated at cost less accumulated depreciation and accumulated impairment losses, if any. Depreciation is calculated on the straight-line
basis over the following expected useful lives from the date on which they become fully operational and after taking into account their
estimated residual values:

    Schedule of expected useful life

    Expected useful life
  
    Warehouse facilities
     
    Over the shorter of 12 years or lease term
  
    Equipment
     
    3 years
  
    Motor vehicle
     
    3 years

     15 

Expenditure for maintenance
and repairs, which do not materially extend the useful lives of the assets, are charged to expense as incurred. Expenditures for major
renewals and betterment which substantially extend the useful life of assets are capitalized. The cost and related accumulated depreciation
of assets retired or sold are removed from the respective accounts, and any gain or loss is recognized as other income or expense in the