STOCKHOLDERS’ EQUITY (DEFICIT)

9 Months Ended

Sep. 30, 2022

Equity [Abstract]

STOCKHOLDERS’ EQUITY (DEFICIT)

10.       STOCKHOLDERS’ EQUITY (DEFICIT)

Preferred stock

The Company’s authorized shares were 30,000,000 shares of preferred stock, with a par value of $0.0001.

The Company has designated 10,000,000 shares of its preferred stock as Series A Preferred Stock.

The Company has designated 1,000,000 shares of its preferred stock as Series B Preferred Stock.

The Company has designated 1 share of its preferred stock as Series C Preferred Stock.

As of September 30, 2022 and December 31, 2021, the Company had 10,000,000 shares of Series A Preferred Stock issued and outstanding.

As of September 30, 2022 and December 31, 2021, the Company had 366,345 shares of Series B Preferred Stock issued and outstanding.

As of September 30, 2022 and December 31, 2021, the Company had 1 share of Series C Preferred Stock issued and outstanding.

Common stock

The Company’s authorized shares were 1,970,000,000 shares of common stock, with a par value of $0.0001.

As of September 30, 2022 and December 31, 2021, the Company had 1,867,681,876 shares of common stock issued and outstanding.

Common stock to be issued

On April 14, 2022, the Company, through its subsidiary, Marvion Private Limited, entered into an Intellectual Property Sale and Purchase Agreement (the “EA SPA”) with Euro Amazing Limited, a limited liability company organized under the laws of Hong Kong, pursuant to which the Company agreed to acquire a perpetual worldwide license for ten (10) categories of adaptation rights to twenty (20) movies in the consideration of 2,325,581,395 shares of our common stock, at a valuation of $0.0043 per share, equivalent to total consideration price of $10,000,000. This perpetual worldwide license for adaptation rights is treated as inventories and will be recorded as cost when the performance obligation is satisfied to recognize the revenue.

On May 23, 2022, Marvion Private Limited and Euro Amazing Limited signed an addendum and agreed to replace certain movies in the EA SPA with other movies. As of September 30, 2022, the increase in authorized capital of the Company has not yet been approved by FINRA. Accordingly, the share issuance transaction has not yet consummated.

As of September 30, 2022 and December 31, 2021, the Company had 140,794,298,026 and 138,468,716,631 shares of its common stock committed to be issued but pending to be consummated, respectively.