Company: MVNC
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001683168-25-008388
Chunk: 75

Company: Marvion Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 75
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1,088,838 as of
September 30, 2025 and December 31, 2024, respectively.

11.AMOUNT DUE TO SHAREHOLDER

As of September 30, 2025
and December 31, 2024, the amount represented temporary advances made by a shareholder, Mr. Young to the Company for capital expenditure
and working capital purposes, which was unsecured, interest-free and repayable on demand. The balance was $1,204,156 and $826,716 as of
September 30, 2025 and December 31, 2024, respectively.

12.PROMISSORY NOTES PAYABLE AND EARNOUT PAYABLE

The Company entered into
certain promissory notes with its shareholders in connection with the Share Purchase Agreement (“SEA”) and agreed to make
the contingent earnout payments in the aggregate amount of $5.5 million (collectively, the “Earn Out Payments”) upon UWMC’s
achievement of certain operating net income performance milestones during each six months period ending June 30 and December 31 (each,
a “Performance Period”) for a total of nine Performance Periods ending December 31, 2028. These contingent earnout payments
become vested upon the satisfaction of specific performance criteria, which is determined by the aggregate of net earnings of its operating
subsidiaries, excluding the expenses incurred by the headquarter during the respective Performance Period. The Company has the option
to pay any earnout amount in cash or in shares of common stock of the Company. The Earn Out Payments will be payable in the form of interest
free promissory notes and shared equally among Chan Sze Yu, Fong Hiu Ching and Young Chi Kin Eric, who are also shareholders of UWMC.
The share exchange transaction contemplated by the SEA was consummated on September 12, 2024. Subsequent to the closing of the SEA, Chan
Sze Yu, Fong Hiu Ching and Young Chi Kin Eric became the Company’s shareholders.

The foregoing descriptions
of the SEA and the Promissory Notes are qualified in their entirety by reference to the SEA and the Promissory Notes.

As of December 31, 2024,
pursuant to the terms and calculations of the earnout provision, management has determined that the earnout payment of $1 million is vested,
whereas the performance criteria for the Performance Period ended December 31, 2024 was satisfied. The earnout