Company: MVNC
Filing Date: 2025-05-19
Form Type: 10-Q
Source: 0001683168-25-003814
Chunk: 7

Company: Marvion Inc.
Filing Date: 2025-05-19
Form: 10-Q
Item: Part I, Item 1
Chunk 7
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 have been expressed in US$. In addition, the Company is operating in Hong Kong and maintains its books and record
in its local currencies, Hong Kong Dollars (“HKD”), for details, please refer to foreign currencies translation in note 3.

Basis of consolidation

The unaudited condensed consolidated
financial statements include the accounts of MVNC and its subsidiaries. All significant inter-company balances and transactions within
the Company have been eliminated upon consolidation.

Use of estimates and assumptions

In preparing these unaudited
condensed consolidated financial statements, management makes estimates and assumptions that affect the reported amounts of assets and
liabilities in the unaudited condensed consolidated balance sheet and revenues and expenses during the periods reported. Actual results
may differ from these estimates. If actual results significantly differ from the Company’s estimates, the Company’s financial
condition and results of operations could be materially impacted. Significant estimates in the period include the impairment loss on digital
assets, valuation and useful lives of intangible assets and deferred tax valuation allowance.

Cash and cash equivalents

Cash and cash equivalents consist
primarily of cash in readily available checking and saving accounts. They consist of highly liquid investments that are readily convertible
to cash and that mature within three months or less from the date of purchase. The carrying amounts approximate fair value due to the
short maturities of these instruments. The Company maintains its bank accounts in Hong Kong.

Accounts receivable

Accounts receivable are recorded
at the gross billing amounts due from customers, less an allowance for expected credit losses. Accounts receivable do not bear interest
and are considered overdue after 30 days from the date of invoices. The Company regularly assesses the expected credit losses for accounts
receivable based on assessments of the recoverability of the accounts receivable and individual account analysis, including the current
creditworthiness and the past collection history of each customer and current economic industry trends. Impairments arise when there is
objective evidence indicating that the balances may not be collectible. The identification of bad and doubtful debts, in particular of
a loss event, requires the use of judgment and estimates, which involve the estimates of specific losses on individual exposures, as well
as a provision on historical trends of collections. Based on analysis of customers’ credit and ongoing relationship, management
makes conclusions about whether any balances outstanding at the end of the period will be deemed non-collectible on an individual basis
and on aging analysis basis. The allowance for expected credit losses is recorded against accounts receivables balances, with