Company: MVNC
Filing Date: 2025-05-19
Form Type: 10-Q
Source: 0001683168-25-003814
Chunk: 9

Company: Marvion Inc.
Filing Date: 2025-05-19
Form: 10-Q
Item: Part I, Item 1
Chunk 9
---
 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.

     16 

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 date in determining the present value
of lease payments. The incremental borrowing rate is the rate that the Company would have to pay to borrow, on a collateralized basis,
an amount equal to the lease payments, in a similar economic environment and over a similar term. The Company depreciated the ROU assets
on a straight-line basis from the lease commencement date to the earlier of the end of the useful life of the ROU assets or the end of
the lease term. Lease expense for lease payments is recognized on a straight-line basis over the lease term.

All of the Company’s real
estate leases are classified as operating leases and there was no lease with a duration of twelve months or less.

Revenue recognition

The Company adopted Accounting
Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”) using
the full retrospective transition method