Financial Analysis

NOTE 16 COMMITMENTS AND CONTINGENCIES As of June 30, 2025 and 2024, the Company has no material commitments and contingencies. …

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NOTE 12 TAXES The Company has operations in various countries and is subject to tax in the jurisdictions in which they operate, as follows: United States of America VIVC is registered in the State of Delaware and is subject to US federal corporate income tax rate of 21 %. The Companys policy is to recognize accrued interest and penalties related to unrecognized tax benefits in its income tax provision. However, the Company did not recognize any accrued interest and penalties related to unrecognized tax benefits during the years ended June 30, 2025 and 2024. Taiwan Vivic Taiwan operating in Taiwan is subject to the Taiwan Profits Tax at the income tax rate of 20 % on the assessable income arising in Taiwan during its tax year. The operation in Taiwan incurred an operating loss and the provision for income tax (benefit) for the years ended June 30, 2025 and 2024 was $ (74,232) and $ 154,199 . Hong Kong The Companys subsidiary operating in Hong Kong is subject to the Hong Kong Profits Tax at the tax rates ranging from 8.25 % to 16.5 % on the assessable income arising in Hong Kong during its tax year. The operation in Hong Kong incurred an operating loss and there is no provision for income tax for the years ended June 30, 2025 and 2024. The reconciliation of income tax rate to the US effective income tax rate based on income before income taxes for the years ended June 30, 2025 and 2024 are as follows: SCHEDULE OF EFFECTIVE INCOME TAX RATE 2025 2024 Years ended June 30, 2025 202 …

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NOTE 11 SBA LOAN PAYABLE On June 23, 2020, Vivic Corp. received an $ 87,500 Economic Injury Disaster Loan (EIDL loan) from the Small Business Administration (SBA). This is a low-interest federal disaster loan for working capital to small businesses and non-profit organizations of any size suffering substantial economic injury as a result of the Coronavirus (COVID-19) epidemic, to help businesses to meet financial obligations and operating expenses that could have been met had the disaster not occurred. This loan has an annual interest rate of 3.75 % and is not forgivable. The maturity of the loan is 30 years, installment payments including interest of $ 427 monthly will begin 30 months from the loan disbursement date. For the years ended June 30, 2025 and 2024, the Company made payments of interest of $ 5,461 and $ 4,697 on the EIDL loan, respectively. As of June 30, 2025, the future minimum EIDL loan payments for the Company to be paid by year are as follows: SCHEDULE OF EIDL LOAN PAYMENTS Year Ending June 30, Amount 2026 $ 5,124 2027 5,124 2028 5,124 2029 5,124 2030 5,124 Thereafter 61,880 Total $ 87,500 …

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Recent accounting pronouncements In October 2023, the FASB issued ASU No. 2023-06, Disclosure Improvements Codification Amendments in Response to the SECs Disclosure Update and Simplification Initiative. The ASU amends the disclosure or presentation requirements related to various subtopics in the FASB ASC. The ASU was issued in response to the SECs August 2018 final amendments in Release No. 33-10532, Disclosure Update and Simplification that updated and simplified disclosure requirements that the SEC believed were duplicative, overlapping, or outdated. The guidance in ASU 2023-06 is intended to align GAAP requirements with those of the SEC and to facilitate the application of GAAP for all entities. The amendments introduced by ASU 2023-06 are effective if the SEC removes the related disclosure or presentation requirement from its existing regulations by June 30, 2027. If, by June 30, 2027, the SEC has not removed the applicable requirements from its existing regulations, the pending content of the associated amendment will be removed from the ASC and will not become effective for any entities. Early adoption is permitted. The adoption of ASU 2023-06 is not expected to have a material impact on the Companys consolidated financial statements or related disclosures. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (ASU 2023-09), which requires disclosures of incremental income tax information within the rate re …

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NOTE 15 RELATED PARTY TRANSACTIONS a. Related parties SCHEDULE OF RELATED PARTIES Name of Related Party Relationship to the Company Yun-Kuang Kung Son of Shang-Chiai Kung, who is the Chairman of Vivic Corp. Kung Hwang Liu Shiang Director and Spouse of Shang-Chiai Kung, who is the Chairman of Vivic Corp. Shang-Chiai Kung Chairman of Vivic Corp. Kun-Teng Liao* COO Tse-Ling Wang CEO Weiguan Ship Yun-Kuang Kung acquired 100 % ownership of this entity from Vivic Corp. in July 2023 Jiazhou Yacht Company Limited Yun-Kuang Kung has 100 % ownership of this entity Fujian Jiaxin Yacht Company Limited Yun-Kuang Kung has 100 % ownership of this entity * On October 9, 2024, Kun-Teng Liao resigned from his positions with the Company and ceased to be Secretary and a Board Member. Mr. Kun-Teng Liao began to function in the capacity of the Companys Chief Operating Officer and was officially appointed as the Companys Chief Operating Officer effective January 25, 2025. b. Prepayments - related party As of June 30, 2025 and 2024, the Company had prepayment to Weiguan Ship of $ 312,169 and $ 250,462 . As of June 30, 2025, the Company had prepayment to Fujian Jiaxin Company Limited of $ 445,894 . In addition, on and effective August 1, 2024, the Board of Directors (the Board) of the Company appointed Mr. Tse-Ling Wang, Ms. Liu-Shiang Kung Hwang, Mr. Richard Pao, Mr. Kevin Lee and Ms. Amy Huang to the Board of Directors of the Company. Ms. Hwang, Mr. Wang and Mr. Kevin Lee will each be issued 150,00 …

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NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accompanying consolidated financial statements reflect the application of certain significant accounting policies as described in this note and elsewhere in the accompanying consolidated financial statements and notes. Basis of presentation These accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (U.S. GAAP). Use of estimates Preparing these consolidated financial statements in conformity with U.S. GAAP requires the Companys management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the periods reported. Making estimates requires management to exercise significant judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances that existed at the date of the consolidated financial statements, which management considered in formulating its estimate, could change in the near term due to one or more future confirming events. Such estimates may be subject to change as more current information becomes available. Actual results may differ from these estimates. Principles of consolidation The consolidated financial statements include the financial statements o …

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NOTE 13 STOCKHOLDERS EQUITY Authorized Shares The Company is authorized to issue 5,000,000 shares of preferred stock and 70,000,000 shares of common stock each with a par value of $ 0.001 per share. Preferred Stock As of June 30, 2025 and 2024, the Company had 832,000 shares of its Series A preferred stock issued and outstanding, with a par value of $ 0.001 per share, each Series A preferred share can be converted into 10 shares of the Companys common stock. The holders of Series A preferred stock have voting rights equal to 50 votes per share of Series A preferred stock, and shall be entitled to the dividend equal to the aggregate dividends for 10 shares of common stock for every one share of Series A preferred stock. Common Stock The Company issued an aggregate of 700,000 shares of the Companys common stock on September 30, 2024 with fair value of $ 1,932,000 to its chairman and the five new directors in consideration of their agreements to serve for the one-year beginning from August 1, 2024. The Company had $ 161,000 prepayment to related parties as reflected on the balance sheets. During the year ended June 30, 2025, the Company expensed $ 1,771,000 from the prepayment as stock compensation expense (see Note 15). On September 1, 2024, the Company entered an employment agreement with Mr. Hong Hsin Lai to serve as the Companys Chief Technology Officer (CTO). The agreement was approved by the Board on October 8, 2024. The Company will pay Mr. Lai 50,000 shares of the Compan …

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NOTE 17 SUBSEQUENT EVENTS The Company follows the guidance in FASB ASC 855-10 for the disclosure of subsequent events. The Company evaluated subsequent events through the date the consolidated financial statements were issued and determined the Company had no major subsequent events that need to be disclosed. …

SubsequentEventsTextBlock · excerpt; the full note is in the filing