Vivic Corp. Reports No Revenue and $950K Net Loss in Latest Quarter

Vivic Corp. reported significant financial challenges in its latest 10-Q filing for the quarter ended March 31, 2025. The company recorded no revenue during this period, a stark contrast to the $1.84 million generated in the same quarter of the previous year. This decline is attributed to a strategic shift away from operations in mainland China and a focus on yacht sales in Taiwan and select global markets. The absence of revenue led to a net loss of $950,807 for the quarter, compared to a net income of $610,165 in the prior year, marking an increase in losses of approximately 256%.

The company's operational expenses also saw a notable increase, primarily due to share-based compensation, which amounted to $829,292 for the quarter. General and administrative expenses decreased to $115,386 from $404,541, reflecting a reduction in commission expenses. However, the overall operating expenses rose to $944,678, significantly impacting the company's financial performance. For the nine months ending March 31, 2025, Vivic reported a net loss of $2.5 million, compared to a net income of $2.42 million for the same period in 2024.

In terms of strategic developments, Vivic has divested its subsidiary, Weiguan Ship, as part of its restructuring efforts to concentrate on yacht sales. This divestiture was completed in July 2023 and is part of a broader strategy to enhance its market position in Taiwan and other regions. The company is also pursuing partnerships, including a recent agreement with Acel Power Inc. to co-develop electric yachts, indicating a shift towards sustainable marine solutions.

Operationally, Vivic's financial health remains precarious, with cash and cash equivalents totaling $61,623 as of March 31, 2025. The company reported working capital of approximately $2.55 million, heavily reliant on amounts due from related parties. The filing indicates that the company is actively seeking additional financing through loans and equity issuances to sustain operations. However, management has expressed concerns about the company's ability to meet its obligations over the next year without continued financial support from related parties or successful fundraising efforts.

Looking ahead, Vivic Corp. faces substantial uncertainty regarding its income and operational viability. The management's outlook emphasizes the need for increased sales and diversification of its customer base to stabilize its financial condition. The company is also exploring opportunities to expand its yacht offerings and territories, aiming to enhance its market presence and profitability in the marine industry.