Company: MVNC
Filing Date: 2025-01-21
Form Type: DEF 14C
Source: 0001683168-25-000446
Chunk: 29

Company: Marvion Inc.
Filing Date: 2025-01-21
Form: DEF 14C
Chunk 29
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 are subject to restrictions (that is, they are nontransferable and subject to a substantial risk of forfeiture). However, the recipient
may elect under Section 83(b) of the Internal Revenue Code to recognize compensation income in the year of the award in an amount equal
to the fair market value of the shares on the date of the award (less the purchase price, if any, paid for such shares), determined without
regard to the restrictions. If a Section 83(b) election is made, the capital gain/loss holding period for such shares commences on the
date of the award. Any further change in the value of the shares will be taxed as a capital gain or loss only if and when the shares are
disposed of by the recipient. If the recipient does not make a Section 83(b) election, the fair market value of the shares on the date
the restrictions lapse will be treated as compensation income to the recipient and will be taxable in the year the restrictions lapse,
and the capital gain/ loss holding period for such shares will also commence on such date.

Restricted Stock Units.
No income generally will be recognized upon the award of RSUs. The recipient of an RSU generally will be subject to tax at ordinary income
rates on the market price of unrestricted shares on the date that such shares are transferred to the participant under the award (reduced
by any amount paid, if any, by the participant for such RSUs), and the capital gain/loss holding period for such shares will also commence
on such date.

Gain or Loss on Sale or Exchange of Shares

In general, gain or loss from
the sale or exchange of shares of common stock granted or awarded under the 2023 Plan will be treated as capital gain or loss, provided
that the shares are held as capital assets at the time of the sale or exchange. However, if certain holding period requirements are not
satisfied at the time of a sale or exchange of shares acquired upon exercise of an incentive stock option (a “disqualifying disposition”),
a participant generally will be required to recognize ordinary income upon such disposition.

Deductibility by Company

The Company generally is not allowed
a deduction in connection with the grant or exercise of an Incentive Stock Option. However, if a participant is required to recognize
ordinary income as a result of a disqualifying disposition, we will be entitled to a deduction equal to the amount of ordinary income
so recognized. In general, in the case of a Non-Q