RELATED PARTY TRANSACTIONS	9 Months Ended
Sep. 30, 2022
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	13. RELATED PARTY TRANSACTIONS From time to time, the Company’s directors, former directors and companies which are controlled by a major shareholder of the Company advanced funds to the Company for working capital purpose. Those advances are unsecured, non-interest bearing and have no fixed terms of repayment. During the three months ended September 30, 2022 and 2021, the Company paid the aggregate amount of $0 and $50,000 management fee to the related party, respectively. During the nine months ended September 30, 2022 and 2021, the Company paid the aggregate amount of $0 and $50,000 management fee to the related party, respectively. During the three months ended September 30, 2022 and 2021, the Company paid the aggregate amount of $90,000 and $0 as consultancy fees to its director and former director, respectively. During the nine months ended September 30, 2022 and 2021, the Company paid the aggregate amount of $265,533 and $60,967 as consultancy fees to its director and former director, respectively. During the three months ended September 30, 2022 and 2021, the Company paid the aggregate amount of $30,000 and $0 as compensation to its director, respectively. During the nine months ended September 30, 2022 and 2021, the Company paid the aggregate amount of $90,000 and $79,020 as compensation to its director and former director, respectively. On April 1, the Company entered into a Service Agreement (the “Service agreement”) with a company controlled by its major shareholder, which agreed to provide staffing and back-office services to the Company until the arrangement is terminated by the parties. During the three months and nine months ended September 30, 2022, the Company incurred the related management service fee of $471,349 and $914,836, respectively. The Service Agreement is filed as Exhibit 10.6 to this quarterly report on Form 10-Q and incorporated herein by reference. In July 2022, the Company’s wholly-owned subsidiary Marvion Group Limited entered into a technical knowhow license and servicing agreement (the “Servicing Agreement”) with Total Chase Limited (“Total Chase”), a company controlled by its major shareholder of the Company, pursuant to which the Company engaged Total Chase to develop the technical knowhow during a three-year term. Total Chase is the parent company of Marvel Digital AI Limited (“MDAI”) that own intellectual properties and provide technical development services to Total Chase. The technical knowhow consists of visual intelligence engine, speech recognition engine, text analytics engine, emotion recognition engine, motion recognition engine, AI agent creation engine, and metaverse development. Under the terms of the Servicing Agreement, the Company is required to pay to Total Chase an aggregate of $50 million for the development of technical knowhow. The consideration is payable in cash or cryptocurrencies. All MDAI’s proprietary items remained the sole and exclusive property of MDAI, Total Chase will grant the Company a perpetual, non-exclusive, paid-up license to use certain MDAI’s proprietary items. The foregoing description of the Servicing Agreement is qualified in its entirety by reference to such agreement which is filed as Exhibit 10.7 to this quarterly report on Form 10-Q and incorporated herein by reference. The Company charged all related development costs to expenses as incurred and recognized as “Technology and development expenses” in the unaudited condensed consolidated statement of operations. During the nine months ended September 30, 2022, the Company incurred the related development fee of $8,000,000 and paid $5,974,040. Apart from the transactions and balances detailed elsewhere in these accompanying unaudited condensed consolidated financial statements, the Company has no other significant or material related party transactions during the periods presented.

RELATED PARTY TRANSACTIONS

9 Months Ended

Sep. 30, 2022

13. RELATED PARTY TRANSACTIONS

From time to time, the Company’s directors, former directors and companies which are controlled by a major shareholder of the Company advanced funds to the Company for working capital purpose. Those advances are unsecured, non-interest bearing and have no fixed terms of repayment.

During the three months ended September 30, 2022 and 2021, the Company paid the aggregate amount of $0 and $50,000 management fee to the related party, respectively. During the nine months ended September 30, 2022 and 2021, the Company paid the aggregate amount of $0 and $50,000 management fee to the related party, respectively.

During the three months ended September 30, 2022 and 2021, the Company paid the aggregate amount of $90,000 and $0 as consultancy fees to its director and former director, respectively. During the nine months ended September 30, 2022 and 2021, the Company paid the aggregate amount of $265,533 and $60,967 as consultancy fees to its director and former director, respectively.

During the three months ended September 30, 2022 and 2021, the Company paid the aggregate amount of $30,000 and $0 as compensation to its director, respectively. During the nine months ended September 30, 2022 and 2021, the Company paid the aggregate amount of $90,000 and $79,020 as compensation to its director and former director, respectively.

On April 1, the Company entered into a Service Agreement (the “Service agreement”) with a company controlled by its major shareholder, which agreed to provide staffing and back-office services to the Company until the arrangement is terminated by the parties. During the three months and nine months ended September 30, 2022, the Company incurred the related management service fee of $471,349 and $914,836, respectively. The Service Agreement is filed as Exhibit 10.6 to this quarterly report on Form 10-Q and incorporated herein by reference.

In July 2022, the Company’s wholly-owned subsidiary Marvion Group Limited entered into a technical knowhow license and servicing agreement (the “Servicing Agreement”) with Total Chase Limited (“Total Chase”), a company controlled by its major shareholder of the Company, pursuant to which the Company engaged Total Chase to develop the technical knowhow during a three-year term. Total Chase is the parent company of Marvel Digital AI Limited (“MDAI”) that own intellectual properties and provide technical development services to Total Chase. The technical knowhow consists of visual intelligence engine, speech recognition engine, text analytics engine, emotion recognition engine, motion recognition engine, AI agent creation engine, and metaverse development. Under the terms of the Servicing Agreement, the Company is required to pay to Total Chase an aggregate of $50 million for the development of technical knowhow. The consideration is payable in cash or cryptocurrencies. All MDAI’s proprietary items remained the sole and exclusive property of MDAI, Total Chase will grant the Company a perpetual, non-exclusive, paid-up license to use certain MDAI’s proprietary items. The foregoing description of the Servicing Agreement is qualified in its entirety by reference to such agreement which is filed as Exhibit 10.7 to this quarterly report on Form 10-Q and incorporated herein by reference.

The Company charged all related development costs to expenses as incurred and recognized as “Technology and development expenses” in the unaudited condensed consolidated statement of operations. During the nine months ended September 30, 2022, the Company incurred the related development fee of $8,000,000 and paid $5,974,040.

Apart from the transactions and balances detailed elsewhere in these accompanying unaudited condensed consolidated financial statements, the Company has no other significant or material related party transactions during the periods presented.