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RELATED PARTY TRANSACTIONS
 6 Months Ended
Jun. 30, 2024
Related Party Transactions [Abstract]  
RELATED PARTY TRANSACTIONS

NOTE– 12 RELATED PARTY TRANSACTIONS

 

a. Related parties

 

Name of Related Party   Relationship to the Company
Yun-Kuang Kung   Son of Shang-Chiai Kung, who is the CEO of Vivic Corp.
Kung Huang Liu Shiang   Director and Spouse of Shang-Chiai Kung, who is the CEO of Vivic Corp.
Shang-Chiai Kung   CEO of Vivic Corp.
Kun-Teng Liao*   Secretary and Board Member
Huilian Chen   Office manager of Vivic Corp.
Guangdong Weiguan Ship   Yun-Kuang Kung acquired 100% ownership of this entity from Vivic Corp. in July 2023

 

* On August 01,2024 Kun-Teng Liao resigned and ceased to be the Secretary and Board Member.

 

 

b. Accounts payable - related party

 

Accounts payable to related party represented $903,728 to be paid to the Company’s vendor Guangdong Weiguan Ship for purchasing of the ships.

 

c. Due from related parties

 

Due from related parties consisted of the following:

 

Name  June 30, 2024   December 31, 2023 
Guangdong Weiguan Ship 1)  $2,615,882   $2,630,821 
Yun-Kuang Kung 2)   186,970    220,828 
Total  $2,802,852   $2,851,649 

 

  1) Due to disposal of Weiguan Ship in July 2023, the Company had a receivable from Weiguan Ship for $2,615,882 and $2,630,821 at June 30, 2024 and December 31, 2023, respectively, which was previously eliminated at consolidation before the disposal.
     
  2) On June 16, 2023, the Company entered a trilateral Corporation Agreement with Yun-Kuang Kung and Guangdong Weiguan Shipping Co., Ltd (“Weiguan Ship”, 100% owned by Mr. Kung after disposal of Weiguan Ship by the Company) to engage in yacht development leasing, dock operations, and related businesses in mainland China. Due to Mr. Kung’s extensive social relationship and rich business experience in China, the Company can do yacht leasing and dock operation business through Yinxin International Financial Leasing Co., Ltd (“Yinxin”) which was obtained through Mr. Kung’s personal channels, the Company advanced $313,743 (TWD 10,017,800), to Yun-Kuang Kung for a three-year term for developing the yacht business in China. Yun-Kuang Kung subsequently transferred the fund to Yinxin pursuant to the loan agreement. Per the terms of the agreement, Weiguan Ship pledged a yacht with book value of $402,000 (RMB 2,900,000) and estimated fair market value of $494,000 (RMB 3,500,000) as collateral for the loan. Yinxin is responsible for repaying the entire loan amount at the end of the term. Upon full repayment of the principal, Mr. Kung will receive half of the net profits of Yinxin as dividend, on an annual basis. These dividends will then be transferred back to the Company by Mr. Kung. In the event that Yinxin is unable to repay the full amount at maturity, the Company has the option to accept stock ownership from Yinxin or take possession of the pledged yacht as repayment. As of June 30, 2024 and December 31, 2023, Vivic HK had a due to Yun-Kuang Kung of $293,307 and $106,337, respectively, resulting from Yun-Kuang Kung’s investment into Vivic HK on behalf of the Company. After netting-off the amount of due-to and due-from Yun-Kuang Kung, the Company’s outstanding amount receivable from Yun-Kuang Kung was $186,970 and $220,828 as of June 30, 2024 and December 31, 2023, respectively.
  2) On June 16, 2023, the Company entered a trilateral Corporation Agreement with Yun-Kuang Kung and Guangdong Weiguan Shipping Co., Ltd (“Weiguan Ship”, 100% owned by Mr. Kung after disposal of Weiguan Ship by the Company) to engage in yacht development leasing, dock operations, and related businesses in mainland China. Due to Mr. Kung’s extensive social relationship and rich business experience in China, the Company can do yacht leasing and dock operation business through Yinxin International Financial Leasing Co., Ltd (“Yinxin”) which was obtained through Mr. Kung’s personal channels, the Company advanced $313,743 (TWD 10,017,800), to Yun-Kuang Kung for a three-year term for developing the yacht business in China. Yun-Kuang Kung subsequently transferred the fund to Yinxin pursuant to the loan agreement.
     
    Per the terms of the agreement, Weiguan Ship pledged a yacht with book value of $402,000 (RMB 2,900,000) and estimated fair market value of $494,000 (RMB 3,500,000) as collateral for the loan. Yinxin is responsible for repaying the entire loan amount at the end of the term. Upon full repayment of the principal, Mr. Kung will receive half of the net profits of Yinxin as dividend, on an annual basis. These dividends will then be transferred back to the Company by Mr. Kung.
     
    In the event that Yinxin is unable to repay the full amount at maturity, the Company has the option to accept stock ownership from Yinxin or take possession of the pledged yacht as repayment.
     
    As of June 30, 2024 and December 31, 2023, Vivic HK had a due to Yun-Kuang Kung of $293,307 and $106,337, respectively, resulting from Yun-Kuang Kung’s investment into Vivic HK on behalf of the Company.
     
    After netting-off the amount of due-to and due-from Yun-Kuang Kung, the Company’s outstanding amount receivable from Yun-Kuang Kung was $186,970 and $220,828 as of June 30, 2024 and December 31, 2023, respectively.

 

 

d. Due to related parties

 

Due to related parties consisted of the following:

 

Name  June 30, 2024   December 31, 2023 
         
Kung Huang Liu Shiang  $2,815   $1,392 
Shang-Chiai Kung   183,838    190,416 
Total  $186,653   $191,808 

 

In support of the Company’s efforts and cash requirements, it may rely on advances from related parties until such a time that the Company can support its operations or attains adequate financing through sales of its equity or traditional debt financing. There is no formal written commitment for continued support by officers, directors, or stockholders. Amounts represent advances or amounts paid in satisfaction of liabilities. The advances are considered temporary in nature and have not been formalized by a promissory note.

 

Due to related parties represented temporary advances to the Company by the stockholders or senior management of the Company, which were unsecured, interest-free and had no fixed terms of repayments. Imputed interests from related parties’ loan are not significant.

 

Apart from the transactions and balances detailed elsewhere in these accompanying consolidated financial statements, the Company has no other significant or material related party transactions during the periods presented.