Company: MVNC
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001683168-25-008388
Chunk: 60

Company: Marvion Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 60
---
. 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.

     16 

The Company applies the
following five steps in order to determine the appropriate amount of revenue to be recognized as it fulfills its obligations under each
of its agreements:

    ·
    identify the contract with a customer;

    ·
    identify the performance obligations in the contract;

    ·
    determine the transaction price;

    ·
    allocate the transaction price to performance obligations in the contract; and

    ·
    recognize revenue as the performance obligation is satisfied.

Revenue is recognized when
the Company satisfies its performance obligation under the contract by transferring the promised product to its customer that obtains
control of the product and collection is reasonably assured. A performance obligation is a promise in a contract to transfer a distinct
product or service to a customer. Most of the Company’s contracts have a single performance obligation, and such fees are billed
to the customer when the performance obligation is satisfied. The Company recognizes such revenue in the period when the amounts are determined
to be fixed and the performance obligation is satisfied as the Company completes the obligations.

Revenue is measured as the
amount of consideration the Company expects to receive in exchange for transferring products or providing services. As such, revenue is
recorded net of returns, allowances, customer discounts, and incentives. Sales taxes and other taxes are excluded from revenues.

Upon the development of
new warehouse building in October 2023, the Company focuses on the provision of logistic and warehousing services to the customers through
the storage of merchandise in its warehouse facilities, as well as packaging and delivery and transportation services from its warehouse
to domestic destinations designated by the customers.

Logistic services

Revenues from logistic solution
services to the customers, in which such local transportation, delivery and packaging services at the time the customers require packed
products to be shipped by the Company to domestic destinations designed