Company: MVNC
Filing Date: 2025-05-19
Form Type: 10-Q
Source: 0001683168-25-003814
Chunk: 29

Company: Marvion Inc.
Filing Date: 2025-05-19
Form: 10-Q
Item: Part I, Item 1
Chunk 29
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 AND
CONTINGENCIES

On August 15, 2024, the Company,
United Warehouse Management Corp., a British Virgin Island corporation (“UWMC”) and eleven shareholders of UWMC entered into
a Share Exchange Agreement (the “SEA”) pursuant to which the shareholders of UWMC agreed to transfer to the Company 4,000
shares of UWMC, constituting all of the issued and outstanding securities of UWMC, in exchange for 148,148,148 shares of common stock
of the Company, par value $0.0001 per share (the “Acquisition Shares”). In addition to the Acquisition Shares, the Company
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 shareholders of the Company.

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, this earnout amount has not been paid to these shareholders and recognized as “earnout payable”
on the unaudited condensed consolidated balance sheets.

Except as noted above,
the Company had no other material commitments or contingencies as of March 31, 2025.

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19.        SUBSEQUENT EVENTS

In accordance with ASC Topic
855, “Subsequent Events”, which establishes general standards of accounting for and disclosure of events that occur
after the balance sheet date but before the unaudited condensed consolidated financial statements are issued, the Company has evaluated
all events or transactions that occurred after March 31, 2025, up through the date the Company issued the unaudited condensed consolidated
financial statements. The Company had no material recognizable subsequent events since March 31, 2025, except as noted below:

On April 1, 2025, the Company
and Kwai Bon Transportation Limited (the “Customer”) entered into a Warehouse Storage Service Agreement (the “Agreement”)
purs