Vivic Corp. Reports 99.25% Revenue Decline and $3.45 Million Net Loss in 2025

Vivic Corp. reported significant financial challenges in its recent 10-K filing for the fiscal year ending June 30, 2025. The company generated total revenue of $44,515, a stark decline of 99.25% from $5.95 million in the previous fiscal year. This drop was primarily attributed to the cessation of operations in Taiwan and the sale of yacht models below cost for marketing purposes. The cost of revenue also decreased significantly, totaling $126,927 compared to $4.15 million in 2024, leading to a gross loss of $82,412 for the year.

The company's net loss from continuing operations was $3.45 million, a substantial increase from a net income of $980,951 in the prior year. This loss was exacerbated by a significant rise in general and administrative expenses, which increased by 52.8% to $784,492, largely due to higher professional fees and bad debt expenses. Additionally, stock-based compensation expenses surged to $2.51 million, reflecting the company's strategy to incentivize its management team amid operational challenges.

In terms of operational changes, Vivic Corp. has shifted its focus away from the Taiwanese market, opting instead to concentrate on the United States and Southeast Asia. This strategic pivot includes the wind-down of its Taiwanese operations, which is expected to be completed by the end of 2025. The company has also divested its interest in Weiguan Ship, a subsidiary that was primarily responsible for yacht production in mainland China, further streamlining its operations.

As of June 30, 2025, Vivic Corp. had a working capital deficit of approximately $600,000 and cash and cash equivalents of only $41,903. The company is actively seeking additional financing to support its operations, relying on loans and investments from related parties. However, there is substantial doubt about its ability to continue as a going concern without securing sufficient funds. The management has indicated that future operations will depend heavily on the successful execution of its business strategy and the ability to generate positive cash flow.

Looking ahead, Vivic Corp. aims to enhance its market presence by expanding its yacht offerings and establishing strategic partnerships in the U.S. and Southeast Asia. The company is also exploring opportunities in the electric yacht segment, having entered into a co-development agreement with Acel Power Inc. Despite these initiatives, the company faces significant risks, including competition from established players in the yacht industry and potential regulatory challenges in its operational regions.