DISCONTINUED OPERATIONS

9 Months Ended

Sep. 30, 2023

Discontinued Operations and Disposal Groups [Abstract]

DISCONTINUED OPERATIONS

NOTE － 3 DISCONTINUED OPERATIONS

On July 12, 2023, Vivic Hong Kong, a wholly-owned subsidiary of the Company, entered into a Stock Purchase Agreement with Yun-Kuang Kung (Mr. “Kung”) pursuant to which Mr. Kung acquired all of the shares of Weiguan Ship for RMB 1,000 ($137) and the agreement of Mr. Kung to indemnify the Company and its affiliates and hold them harmless from, against and in respect of any and all claims arising out of or related to the business of Weiguan Ship whether arising before or after the date of the Stock Purchase Agreement, whether currently known or unknown, including, without limitation any claims for taxes. Management of the Company elected to dispose of Weiguan Ship due to its history of losses and anticipated losses, and the Company’s potential liability for the amount of the subscribed capital contributions in Weiguan Ship.

There were no material transactions for disposed group for the period from July 1, 2023 through July 12, 2023, and for the purpose of complying with the Company’s monthly accounting cut-off date, the Company used June 30, 2023 as the date of disposal. The following table summarizes the carrying value of the assets and liabilities of the disposed group at the closing date of disposal. The Company recorded $1.86 million gain on disposal of the subsidiaries, which was the difference between the selling price of US$138 and the carrying value of the net assets of the disposed group; further, under ASC 830-30-40-1, since the sale represented a substantially complete liquidation of the foreign entity, Vivic reclassified the entire accumulated currency translation adjustment balance of $0.17 million associated with Weiguan Ship from equity to gain on disposal.

	As of June 30, 2023
ASSETS
Current assets
Cash and cash equivalents	$	57,256
Deposit and prepayments		267,832
Inventory		1,553,453
Other receivables		88,694
Due from related parties		33,268
Total current assets		2,000,503
Non-current assets
Property and equipment, net		355,885
Construction in progress		74,349
Operating lease right-of-use assets		287,646
Total non-current assets		717,880
Total assets	$	2,718,383
LIABILITIES
Current liabilities
Accounts payable	$	433,325
Other payables and accrued liabilities		239,777
Deferred revenue		1,086,306
Due to related parties including selling shareholders		2,389,282
Income tax payable		5,183
Operating lease liabilities-current		123,158
Total current liabilities		4,277,031
Operating lease liabilities-noncurrent		131,917
Total non-current liabilities		131,917
Total liabilities	$	4,408,948

The operations of Weiguan Ship and its subsidiaries are accounted for as discontinued operations in the accompanying consolidated financial statements for all periods presented. The following table presents the components of discontinued operations reported in the consolidated statements of operations:

	For the three months, ended September 30,					For the nine months, ended September 30,
	2023		2022			2023			2022
Revenue, Net	$	-	$	25,479		$	957,667		$	37,347
Cost of Sales		-		28,811			650,586			38,701
Gross Profit		-		(3,332	)		307,081			(1,354	)
Operating Expenses		-		231,924			447,610			739,698
Loss from Operations		-		(235,256	)		(140,529	)		(741,052	)
Other Income (Expense)
Investment gain (loss)		-		(1,130	)		-			59,206
Interest expense		-		-			(9,549	)		(65	)
Interest income		-		24			-			373
Other income (expenses)		-		(277	)		37,173			2,158
Total Other Income (Expenses)		-		(1,383	)		27,624			61,672
Loss Before Income Taxes		-		(236,639	)		(112,905	)		(679,380	)
Income Tax Expense		-		-			-			-
Net Loss from Discontinued Operations	$	-	$	(236,639	)	$	(112,905	)	$	(679,380	)