Company: MVNC
Filing Date: 2025-05-19
Form Type: 10-Q
Source: 0001683168-25-003814
Chunk: 17

Company: Marvion Inc.
Filing Date: 2025-05-19
Form: 10-Q
Item: Part I, Item 1
Chunk 17
---
 guidance, and other minor improvements.” The Company’s management does not
believe the adoption of ASU 2024-02 will have a material impact on its unaudited condensed consolidated financial statements and disclosures.

In November 2024, the FASB issued
ASU No. 2024-03, Income Statement–Reporting Comprehensive Income–Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation
of Income Statement Expenses, which requires that an entity disclose, in the notes to unaudited condensed consolidated financial statements,
specified information about certain costs and expenses. The amendment in the ASU is intended to enhance the transparency and decision
usefulness to better understand the major components of an entity’s income statement. The amendments in this Update are effective
for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. The Company
is currently evaluating the impact of the new standard on its unaudited condensed consolidated financial statements which is expected
to result in enhanced disclosures.

The Company has reviewed all
recently issued, but not yet effective, accounting pronouncements and does not believe the future adoption of any such pronouncements
may be expected to cause a material impact on its financial condition or the results of its operations.

4.          GOING CONCERN
UNCERTAINTIES

The accompanying unaudited condensed
consolidated financial statements have been prepared using the going concern basis of accounting, which contemplates the realization of
assets and the satisfaction of liabilities in the normal course of business.

The Company reported a working
capital deficit of $3,906,209 and accumulated deficit of $6,063,996 as of March 31, 2025. The continuation of the Company as a going concern
through the next twelve months is dependent upon the continued financial support from its major shareholders. The Company is currently
pursuing additional financing for its operations. However, there is no assurance that the Company will be successful in securing sufficient
funds to sustain the operations.

These and other factors raise
substantial doubt about the Company’s ability to continue as a going concern. These unaudited condensed consolidated financial statements
do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets and liabilities
that may result in the Company not being able to continue as a going concern.

     22 

5.          REVENUE
FROM CONTRACT