Company: MVNC
Filing Date: 2025-05-19
Form Type: 10-Q
Source: 0001683168-25-003814
Chunk: 16

Company: Marvion Inc.
Filing Date: 2025-05-19
Form: 10-Q
Item: Part I, Item 1
Chunk 16
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 prices (unadjusted) in active markets for identical assets or liabilities
and the lowest priority to unobservable inputs. The three (3) levels of fair value hierarchy defined by paragraph 820-10-35-37 of the
FASB Accounting Standards Codification are described below:

    Level 1
     
    Quoted market prices available in active markets for identical assets or liabilities as of the reporting date.

    Level 2
     
    Pricing inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date.

    Level 3
     
    Pricing inputs that are generally observable inputs and not corroborated by market data.

Financial assets are considered
Level 3 when their fair values are determined using pricing models, discounted cash flow methodologies or similar techniques and at least
one significant model assumption or input is unobservable.

The fair value hierarchy gives
the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable
inputs. If the inputs used to measure the financial assets and liabilities fall within more than one level described above, the categorization
is based on the lowest level input that is significant to the fair value measurement of the instrument.

     21 

The carrying amounts of the Company’s
financial assets and liabilities, such as cash and cash equivalents, accounts receivable, amounts due from related parties, prepaid expenses
and other current assets, accounts payable, accrued liabilities and other payable, amounts due to directors, construction payable and
income tax payable approximate their fair values because of the short maturity of these instruments.

Recent accounting pronouncements

From time to time, new accounting
pronouncements are issued by the Financial Accounting Standard Board (“FASB”) or other standard setting bodies and adopted
by the Company as of the specified effective date. Unless otherwise discussed, the Company believes that the impact of recently issued
standards that are not yet effective will not have a material impact on its financial position or results of operations upon adoption.

In March 2024, the FASB issued
ASU No. 2024-02, which removes references to the Board’s concepts statements from the FASB Accounting Standards Codification (the
“Codification” or ASC).

The ASU is part of the Board’s
standing project to make “Codification updates for technical corrections such as conforming amendments, clarifications to guidance,
simplifications to wording or the structure of