Company: MVNC
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001683168-25-008388
Chunk: 15

Company: Marvion Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 15
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 if the potential common stock equivalents had been issued and if the additional common shares were dilutive.

Foreign currencies transactions and translation

Transactions denominated
in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates
of the transaction. Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the
functional currency using the applicable exchange rates at the balance sheet dates. The resulting foreign exchange gain (loss) are recorded
in the unaudited condensed consolidated statement of operations and comprehensive income.

The reporting currency of
the Company is US$ and the accompanying unaudited condensed consolidated financial statements have been expressed in US$. In addition,
the Company is operating in Hong Kong and maintains its books and record in its local currencies, HKD, which are their respective functional
currencies, being the primary currency of the economic environment in which their operations are conducted. In general, for consolidation
purposes, assets and liabilities of its subsidiaries whose functional currency is not US$ are translated into US$, in accordance with
ASC Topic 830-30, “Translation of Financial Statement”, using the exchange rate on the balance sheet date. Revenues
and expenses are translated at average rates prevailing during the year. The gains and losses resulting from translation of financial
statements of foreign subsidiaries are recorded as a separate component of accumulated other comprehensive income within the unaudited
condensed consolidated statements of changes in shareholders’ deficit.

Translation of amounts from
HKD into US$1 has been made at the following exchange rates for the period ended September 30, 2025 and 2024:

    Schedule of translation rates 

    September 30, 2025  
    September 30, 2024 
  
    Period-end HKD:US$1 exchange rate 
     0.1285  
     0.1287 
  
    Period average HKD:US$1 exchange rate 
     0.1282  
     0.1280 

Comprehensive income

ASC Topic 220, “Comprehensive
Income”, establishes standards for reporting and display of comprehensive income, its components and accumulated balances. Comprehensive
income as defined includes all changes in equity during a period from non-owner sources. Accumulated other comprehensive income, as presented
in the accompanying unaudited condensed consolidated statements of changes in stockholders’ deficit, consists of changes in unrealized
gains and losses on foreign currency translation. This comprehensive income is not included in