Company: MVNC
Filing Date: 2025-05-19
Form Type: 10-Q
Source: 0001683168-25-003814
Chunk: 83

Company: Marvion Inc.
Filing Date: 2025-05-19
Form: 10-Q
Item: Part I, Item 8
Chunk 83
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 to the Acquisition Shares, we agreed to make
earnout payments in the aggregate amount of $5.5 million (collectively, the “Earn Out Payments”) upon UWMC’s achievement
of certain net income performance milestones during each six-month period ending June 30 and December 31 (each, a “Performance Period”)
for a total of nine Performance Periods. The Earn Out Payments will be payable in the form of interest free promissory notes and shared
equally among Chan Sze Yu, Fong Hiu Ching and Young Chi Kin Eric, who are also our shareholders.

As of December 31, 2024, pursuant
to the terms and calculations of the earnout provision, management has determined the final earnout of $1 million being vested pursuant
to the agreement. As of March 31, 2025, we have not paid this earnout amount to these shareholders and recognized as “earnout payable”
on the unaudited condensed consolidated balance sheets.

Except as noted above,
we had no other contractual obligations and material commercial commitments as of March 31, 2025.

Critical Accounting Policies and Estimates

Our critical accounting policies
and estimates have not changed since December 31, 2024. For a detailed description of the critical accounting policies and estimates
of the Company, please refer to “Critical Accounting Policies and Estimates” included in Part II, Item 7, “Management’s
Discussion and Analysis of Financial Condition and Results of Operations” in our 2024 Annual Report on Form 10-K.

Item 3. Quantitative and Qualitative Disclosures
About Market Risk

As a “smaller reporting
company”, we are not required to provide the information required by this Item.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures.

Our management is responsible
for establishing and maintaining a system of disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) under the
Exchange Act) that is designed to ensure that information required to be disclosed by us in the reports that we file or submit under the
Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the Commission’s rules and forms.
Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required
to be disclosed by an issuer in the reports that it files or submits under the Exchange Act is accumulated and communicated to the issuer’s
management, including its principal