RELATED PARTY TRANSACTIONS

6 Months Ended

Dec. 31, 2024

Related Party Transactions [Abstract]

RELATED PARTY TRANSACTIONS

NOTE– 14 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 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*	Former Secretary and Board Member
Tse-Ling Wang	Director and Secretary of the Company
Guangdong 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

* 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 Company’s Chief Operating Officer and was officially appointed as the Company’s Chief Operating Officer effective January 25, 2025.

b. Deposit and prepayment - related party

As of December 31, 2024 and June 30, 2024, the Company had deposits and prepayments to Weiguan of $312,000 and $250,462.

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 150,000 shares of the Company’s common stock in consideration of his or her agreement to serve as a director of the Company for a period of one-year, and each of Ms. Huang and Mr. Pao will receive 50,000 shares of the Company’s common stock in consideration of his or her agreement to serve as a director of the Company for a period of one-year. The Board also approved the issuance of 150,000 shares of the Company’s common stock to Mr. Shang-Chiai Kung, the Chairman of the Board, in consideration of his service for a period of one-year. The Company issued an aggregate of 700,000 shares of the Company’s common stock for the six months ended December 31, 2024 with a fair value of 1,932,000 as prepaid stock compensation expense. During the three months ended December 31, 2024, the Company expensed $483,000 from prepaid expense as stock compensation expense. During the six months ended December 31, 2024, the Company expensed 805,000 from prepaid expense as stock compensation expense. As of December 31, 2024, the Company had prepaid Chairman and Directors’ compensation of $1,127,000.

Moreover, on September 1, 2024, the Company entered an employment agreement with Mr. Hong Hsin Lai to serve as the Company’s 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 Company’s common stock in the first year of employment. The shares are to be paid in full within four months from September 1, 2024. If the employment agreement is renewed after one-year, the Company will pay Mr. Lai 20,000 shares of the Company’s common stock each year in which he remains employed by the Company. During the three months ended December 31, 2024, the Company recorded $25,625 stock compensation expense for shares issued to Mr. Lai. During the six months ended December 31, 2024, the Company recorded $34,167 stock compensation expense for shares issued to Mr. Lai. As of December 31, 2024, the Company had prepaid Chairman and Directors’ compensation of $68,333.

c. Due from related parties

Due from related parties consisted of the following:

Name	December 31, 2024		June 30, 2024
Guangdong Weiguan Ship 1)	$	2,497,567	$	2,365,420
Yun-Kuang Kung 2)		-		186,948
Total	$	2,497,567	$	2,552,368

As of December 31, 2024, the due from related parties consisted of the following:

1)	The Company had a receivable from Weiguan Ship for $2,497,567 as of December 31, 2024. Because Weiguan Ship was owned by the Company as of June 30, 2023, any amount due was eliminated at consolidation.
2)	On June 16, 2023, the Company loaned $0.31 million to Yun-Kuang Kung. The amount is non-interest bearing and is payable on May 31, 2026. As collateral security for the amount due, Yun-Kuang Kung has agreed to grant the Company a lien on a yacht with a book value of approximately $400,000. During the six months ended December 31, 2024, Yun-Kuang Kung repaid the amount due to the Company in full.

d. Due to related parties

Due to related parties consisted of the following:

Name	December 31, 2024		June 30, 2024
Kung Hwang Liu Shiang	$	48,576	$	2,815
Yun-Kuang Kung		148,891		-
Shang-Chiai Kung		166,101		183,816
Total	$	363,568	$	186,631

In support of the Company’s efforts and cash requirements, it may rely on advances from related parties until such 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 unaudited condensed consolidated financial statements, the Company has no other significant or material related party transactions during the periods presented.