Company: MVNC
Filing Date: 2025-05-19
Form Type: 10-Q
Source: 0001683168-25-003814
Chunk: 99

Company: Marvion Inc.
Filing Date: 2025-05-19
Form: 10-Q
Item: Part I, Item 2
Chunk 99
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 are repayable on
demand and interest-free.

Material Cash Requirements

As of
March 31, 2025, we had an accumulated deficit of $6,063,996. Our material cash requirements are highly dependent upon the additional financial
support from our major shareholders in the next 12 - 18 months.

We are not party to any off-balance
sheet transactions. We have no guarantees or obligations other than those which arise out of normal business operations.

 42 

Contractual Obligations and Commercial Commitments

On August 15, 2024, we, UWMC
and eleven shareholders of UWMC entered into a Share Exchange Agreement (the “SEA”) pursuant to which the shareholders of
UWMC agreed to transfer to us 4,000 shares of UWMC, constituting all of the issued and outstanding securities of UWMC, in exchange for
148,148,148 shares of our common stock (the “Acquisition Shares”). In addition to the Acquisition Shares, we agreed to make
earnout payments in the aggregate amount of $5.5 million (collectively, the “Earn Out Payments”) upon UWMC’s achievement
of certain net income performance milestones during each six-month period ending June 30 and December 31 (each, a “Performance Period”)
for a total of nine Performance Periods. 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 our shareholders.

As of December 31, 2024, pursuant
to the terms and calculations of the earnout provision, management has determined the final earnout of $1 million being vested pursuant
to the agreement. As of March 31, 2025, we have not paid this earnout amount to these shareholders and recognized as “earnout payable”
on the unaudited condensed consolidated balance sheets.

Except as noted above,
we had no other contractual obligations and material commercial commitments as of March 31, 2025.

Critical Accounting Policies and Estimates

Our critical accounting policies
and estimates have not changed since December 31, 2024. For a detailed description of the critical accounting policies and estimates
of the Company, please refer to “Critical Accounting Policies and Estimates” included in Part II, Item 7, “Management’s
Discussion and Analysis of Financial Condition and Results of Operations” in our 2024 Annual Report on Form