Company: MVNC
Filing Date: 2025-05-19
Form Type: 10-Q
Source: 0001683168-25-003814
Chunk: 53

Company: Marvion Inc.
Filing Date: 2025-05-19
Form: 10-Q
Item: Part I, Item 8
Chunk 53
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 tax position only if it is more likely than not that the tax
position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized
in the unaudited condensed consolidated financial statements from such a position should be measured based on the largest benefit that
has a greater than fifty percent (50%) likelihood of being realized upon ultimate settlement. Paragraph 740-10-25-13 also provides guidance
on de-recognition, classification, interest and penalties on income taxes, accounting in interim periods and requires increased disclosures.
The Company had no material adjustments to its liabilities for unrecognized income tax benefits according to the provisions of paragraph
740-10-25-13.

The Company periodically reviews
the recoverability of deferred tax assets recorded on its unaudited condensed consolidated balance sheets and provides valuation allowances
as management deems necessary.

     18 

For the three months ended March
31, 2025 and 2024, the Company did not have any interest and penalties associated with tax positions. As of March 31, 2025 and December
31, 2024, the Company did not have any significant unrecognized uncertain tax positions.

The Company is subject to tax
in local and foreign jurisdictions. As a result of its business activities, the Company files tax returns that are subject to examination
by the relevant tax authorities.

Segment reporting

Accounting Standards Codification
(“ASC”) 280, “Segment Reporting” establishes standards for reporting information about operating segments
on a basis consistent with the Company’s internal organizational structure as well as information about geographical areas, business
segments and major customers in unaudited condensed consolidated financial statements for details on the Company’s business segments.

The Company uses the management
approach to determine reportable operating segments. The management approach considers the internal organization and reporting used by
the Company’s chief operating decision maker (“CODM”), Mr. Chan Sze Yu (a chief executive officer of the Company), for
making decisions, allocating resources and assessing performance, as the following reportable segments.

    –          Supply chain segment
    Provision of logistic service and warehousing service
  
    –          Financial segment
    Provision of financial consulting service

Based on the management’s
assessment, the Company determined that it has two reportable operating segments, as defined by ASC 280. For the three months ended March
31, 2025 and 2024, all of the Company’s revenue and assets are locally generated in Hong