DISCONTINUED OPERATIONS

12 Months Ended

Jun. 30, 2024

Discontinued Operations and Disposal Groups [Abstract]

DISCONTINUED OPERATIONS

NOTE– 4 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. The Company recorded $1,869,563 gain on disposal of the subsidiary, which was the difference between the selling price of $137 and the carrying value of the net assets deficit of $1,869,426.

The following table provides a reconciliation of the assets and liabilities held for sale presented in the consolidated balance sheet as of June 30, 2023 to the carrying value of the assets and liabilities of the disposed group at the closing date of disposal. There were no material transactions for the 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.

	As of June 30, 2023
ASSETS
Cash and cash equivalents	$	57,258
Deposit and prepayments		258,940
Inventory		1,553,524
Other receivables		88,698
Due from related parties		33,222
Property and equipment, net		355,901
Construction in process		74,353
Operating lease right-of-use assets, net		287,659
TOTAL ASSETS HELD FOR SALE AND AT CLOSING DATE	$	2,709,555
LIABILITIES
Trade payables	$	433,345
Accrued liabilities and other payables		246,762
Receipt in advance		1,099,733
Due to related parties		183,472
Income tax payable		5,181
Operating lease liabilities-current		123,163
Operating lease liabilities-noncurrent		131,923
TOTAL LIABILITIES HELD FOR SALE	$	2,223,579
Add back: Weiguan Ship’s due to Vivic US		2,205,872
Add back: accumulated other comprehensive income		149,530
TOTAL LIABILITIES AT CLOSING DATE		4,578,981
Net assets deficit	$	(1,869,426	)
Sales price		137
Gain on disposal	$	1,869,563

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 years ended June 30,
	2024		2023
Revenue, Net	$	-	$	890,108
Cost of Sales		-		669,105
Gross Profit		-		221,003
Operating Expenses
Selling Expenses				196,177
General and Administrative Expenses				732,194
Loss From Operations		-		(707,368	)
Other Income
Interest expense		-		(20,445	)
Other Income				266,336
Total Other Income		-		245,891
Loss Before Income Taxes		-		(461,477	)
Income Tax Expense		-		-
Net Loss from Discontinued operations	$	-	$	(461,477	)