Company: MVNC
Filing Date: 2025-05-19
Form Type: 10-Q
Source: 0001683168-25-003814
Chunk: 8

Company: Marvion Inc.
Filing Date: 2025-05-19
Form: 10-Q
Item: Part I, Item 1
Chunk 8
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 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 March 31, 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.

     15 

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

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
unaudited condensed consolidated statements of operations.

Construction in progress and construction payable

Construction-in-progress primarily
consists of the construction of warehouse facilities 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