Company: MVNC
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001683168-25-008388
Chunk: 24

Company: Marvion Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 24
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 nine months ended September 30, 2025 and 2024.

7.CONSTRUCTION IN PROGRESS AND CONSTRUCTION PAYABLE

As of September 30, 2025,
the Company’s warehouse building was commenced in operational use and the development costs in construction in progress were transferred
to warehouse facilities under property and equipment, subject to depreciation, based on a straight-line basis over its estimated useful
life of 12 years, pursuant to lease term of the leasehold land.

The construction payable
of $306,120 and $342,540 as of September 30, 2025 and December 31, 2024, respectively, on the unaudited condensed consolidated balance
sheets represented the unpaid invoices for warehouse building construction.

     23 

8.PROPERTY AND EQUIPMENT, NET

As of September 30, 2025
and December 31, 2024, property and equipment, net consisted of the following:

    Schedule of property and equipment, net 

    September 30, 2025  
    December 31, 2024 
  
    At cost: 

    Warehouse facilities 
    $2,991,673  
    $1,809,774 
  
    Equipment 
     5,304  
     1,159 
  
    Motor vehicle 
     39,019  
     39,099 
  
    Property and equipment, gross 
     3,035,996  
     1,850,032 
  
    Less: accumulated depreciation 
     (275,323) 
     (110,564)
  
    Property and equipment, net 
    $2,760,673  
    $1,739,468 

Depreciation expense for
the three months ended September 30, 2025 and 2024 were $65,661 and $17,548, respectively.

Depreciation expense for
the nine months ended September 30, 2025 and 2024 were $164,547 and $55,658, respectively. 

9.LEASES

The Company has entered
into commercial operating leases with various third parties for the use of leasehold land in Hong Kong. These leases have original terms
ranging from 6 to 12 years. These operating leases are included in “Right-of-use Assets” on the unaudited condensed consolidated
balance sheets and represent the Company’s right to use the underlying assets during the lease term. The