Vivic Corp: A Comprehensive Review of the 2024 10-K Filing

Introduction

Vivic Corp, a Nevada-based holding company, has been making strides in the yacht industry, particularly in Asia and the Middle East. The company, which operates primarily through its Taiwan branch, has positioned itself as a key player in the distribution of Monte Fino yachts. This blog post delves into Vivic Corp's 2024 10-K filing, providing insights into its business operations, financial performance, and potential risks.

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Business Overview

Vivic Corp has undergone significant changes since 2018, shifting its focus to yacht sales, marine tourism, and the development of electric-powered yachts. The company is the exclusive distributor of Monte Fino yachts in Asia and the Middle East, and it also distributes these yachts in other global territories. Vivic Corp's operations are primarily conducted through its Taiwan branch, which engages in the design, construction, and distribution of various yacht models.

The company aims to expand its yacht brands and territories, seeking exclusive distribution rights for yacht manufacturers in Taiwan and other regions. Vivic Corp also plans to explore other marine industry areas where profitability is feasible.

Financial Performance

Revenue and Profitability

For the fiscal year ending June 30, 2024, Vivic Corp reported a net revenue of $5.95 million, primarily from yacht sales. This marks a significant improvement from the previous year, where no revenue was recorded from continuing operations. The company's gross profit for 2024 was $1.8 million, with a net income of $2.85 million, including a gain from discontinued operations.

Operating Expenses

Vivic Corp's operating expenses for 2024 totaled $641,119, a substantial increase from the previous year. This rise is attributed to increased general and administrative expenses, which include employee salaries, professional fees, and other operational costs.

Cash Flow and Liquidity

As of June 30, 2024, Vivic Corp had $310,859 in cash and cash equivalents, with a working capital of $3.2 million. The company generated a net income from continuing operations of $980,951 during the year. However, it also reported negative cash flow from operating activities, highlighting the need for improved cash management.

Risk Factors

Going Concern

Vivic Corp's auditors have expressed substantial doubt about the company's ability to continue as a going concern. The company has an accumulated deficit of $2.3 million and negative cash flow from operations. Its continuation depends on securing additional financing and increasing sales.

Market and Economic Risks

The yacht industry is highly competitive, with significant barriers to entry. Vivic Corp faces competition from well-established companies with greater resources. Economic conditions affecting consumer spending could also impact the company's sales and profitability.

Operational Risks

Vivic Corp relies on third-party manufacturers for yacht production, which poses risks related to supply chain disruptions and quality control. The company also faces challenges in expanding its market presence and maintaining its brand reputation.

Conclusion

Vivic Corp's 2024 10-K filing reveals a company in transition, with promising revenue growth but significant financial and operational challenges. While the company has made strides in the yacht industry, its future success hinges on securing additional financing, expanding its market presence, and effectively managing its operations. Investors should weigh these factors carefully when considering Vivic Corp as a potential investment opportunity.

Final Thoughts

Vivic Corp's journey in the yacht industry is a testament to its resilience and adaptability. As the company navigates the complexities of the market, its ability to innovate and expand will be crucial to its long-term success. Investors and stakeholders should keep a close eye on Vivic Corp's strategic initiatives and financial performance in the coming years.