VIVIC CORP. SEC 10-K Report

Vivic Corp., a company specializing in the sale and development of yacht models, has released its Form 10-K report for the fiscal year ended June 30, 2025. The report provides a comprehensive overview of the company's financial performance, business operations, strategic initiatives, and the challenges it faces. The company has made significant strategic shifts, including a focus on the United States and Southeast Asia markets, and has entered into a co-development agreement for an electric catamaran yacht, reflecting its commitment to innovation and sustainability.

Financial Highlights

• Total Revenue: $44,515. The revenue for the year ended June 30, 2025, was primarily derived from the sale of yacht models, which were sold below cost for marketing purposes.
• Gross Profit (Loss): $(82,412). The gross loss was attributed to the decision to sell yacht models below cost for marketing purposes.
• Income (Loss) from Operations: $(3,375,687). The loss from operations was mainly due to decreased revenue and increased share-based compensation.
• Net Income (Loss) from Continuing Operations: $(3,446,751). The increase in net loss was primarily due to decreased revenue and increased share-based compensation.
• Net Income (Loss) Attributable to Vivic Corp.: $(3,446,751). This reflects the overall financial performance, including the impact of discontinued operations.

Business Highlights

• Geographical Performance: The company has shifted its focus to the United States and Southeast Asia, discontinuing operations in Taiwan due to regulatory challenges. This strategic move is expected to enhance operational efficiencies and market presence in these regions.
• Sales Units: In 2024, the company received orders for 10 yachts, enhancing brand visibility in Asia. However, in 2025, the company sold 100 yacht models below cost to a director for marketing purposes, indicating a strategic focus on brand promotion.
• New Product Launches: The company is collaborating with Acel Power Inc. on the development of an electric catamaran yacht, indicating a move towards sustainable and innovative product offerings.
• Manufacturing and Sourcing: The company outsources yacht manufacturing to qualified producers, including Kha Shing, ensuring high production standards and timely delivery. This approach leverages the production capabilities and technical expertise of third-party manufacturers.
• Future Outlook: The company aims to expand its yacht brands and territories, seeking exclusive distribution rights in the United States and Southeast Asia. Additionally, the company plans to explore other marine industry areas where profitability is anticipated.
• Dedicated Customer Support: The company maintains a dedicated customer support team to ensure positive post-sale relationships, including follow-up calls and maintenance reminders, enhancing customer satisfaction and loyalty.
• Product Warranties: The company offers a two-year warranty on yacht hulls and ensures engine manufacturers provide warranty and service programs, reinforcing product reliability and customer trust.
• Regulatory Compliance: The company is subject to various regulations, particularly in Taiwan, affecting working conditions and environmental standards. This compliance is crucial for maintaining operational integrity and market access.

Strategic Initiatives

• Strategic Focus: The company has strategically decided to concentrate its operations in the United States and Southeast Asia, discontinuing its pursuit of the Taiwan market due to regulatory challenges. It has also entered into an Electric Catamaran Yacht Co-Development Agreement with Acel Power Inc. to develop an electric yacht, indicating a focus on innovation and sustainability in its product offerings.
• Capital Management: The company has faced significant financial challenges, with a net loss of $3.45 million for the year ended June 30, 2025, and a working capital deficit of approximately $0.62 million. It has relied on related party advances and third-party loans to manage its cash flow, with $561,420 in proceeds from related party advances and $124,642 from third-party loans. The company has not declared or paid any cash dividends and does not anticipate doing so in the foreseeable future, as it intends to retain earnings to finance business development and expansion.
• Future Outlook: The company plans to continue seeking additional financing through loans and equity sales to support its operations. It anticipates that existing working capital, further advances, and debt instruments will be adequate to fund operations over the next six months. However, there is substantial doubt about the company's ability to continue as a going concern due to its financial condition. The company is actively pursuing additional financing and exploring opportunities for capital investment to support its strategic initiatives and ensure long-term sustainability.

Challenges and Risks

• Operational Challenges: The company has shifted its focus to yacht sales in the United States and Southeast Asia, discontinuing operations in Taiwan due to regulatory challenges, specifically Taiwan's prohibition on importing ships from China, where the company's main suppliers are located. This strategic shift may present operational challenges as the company transitions its market focus and winds down its Taiwan operations.
• Financial Risks: The company faces significant financial risks, including substantial doubt about its ability to continue as a going concern, as expressed by its registered public accounting firm. The company is highly leveraged and may need additional financing, which is uncertain. The company also has a limited operating history, making it difficult to assess future success. Economic conditions affecting consumer spending could materially impact the business, as the company's products compete for discretionary income.
• Supply Chain and Geopolitical Risks: The company relies on third-party manufacturers, primarily in China and Taiwan, which exposes it to geopolitical risks and potential supply chain disruptions. Additionally, the company is subject to competitive pressures from well-established yacht manufacturers with greater resources.
• Market Risks: The company is exposed to foreign exchange fluctuations, particularly between the New Taiwan Dollar and the U.S. dollar, which could impact its financial reporting and liquidity. The company also faces risks related to potential changes in U.S. tariffs on imports from China and Taiwan, which could increase costs and disrupt the supply chain. Inflation poses a risk to operational costs, potentially affecting the company's ability to offer competitive pricing.

SEC Filing: VIVIC CORP. [ VIVC ] - 10-K - Sep. 30, 2025