VIVIC Corp. reported significant financial challenges in its latest 10-Q filing for the quarter ending September 30, 2024. The company experienced a dramatic decline in revenue, generating only $44,243 compared to $791,043 in the same period of 2023, marking a decrease of approximately 94.4%. This revenue drop was accompanied by a substantial increase in the cost of sales, which rose to $128,584, resulting in a gross loss of $84,341 for the quarter, contrasting sharply with a gross profit of $91,826 in the prior year.

Operating expenses surged to $491,754, up from $105,234 in the previous year, primarily due to increased payroll, professional fees, and stock compensation expenses. Consequently, VIVIC Corp. reported a loss from operations of $576,095, compared to a loss of $13,408 in the same quarter of 2023. The net loss attributable to continuing operations for the quarter was $584,508, a significant increase from a net loss of $20,060 in the prior year. This resulted in a net loss per share of $(0.02), consistent with the previous year’s loss per share.

The company’s financial position showed a decrease in cash and cash equivalents, which fell to $213,259 from $310,859 as of June 30, 2024. However, total current assets increased to $5,120,538, up from $4,863,374. Total liabilities decreased significantly to $1,168,961 from $2,272,892, contributing to an increase in total stockholders’ equity to $3,953,610, compared to $2,593,167 in the previous quarter.

Strategically, VIVIC Corp. has been focusing on expanding its yacht sales and services, particularly in Taiwan and selected global regions. The company is the exclusive distributor of Monte-Fino yachts in China, the Philippines, and the Middle East. In a notable transaction, VIVIC sold its subsidiary, Guangdong Weiguan Ship Tech Co., Ltd., for RMB 1,000 ($137) in July 2023, which included indemnification from the buyer for any claims related to the subsidiary.

The company is currently facing significant uncertainty regarding its income for the next 12 months and has indicated substantial doubt about its ability to continue as a going concern without financial support from related parties and potential loans or investments. Management is actively pursuing additional financing but acknowledges the challenges in securing sufficient funds.