10-Q

U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q

Mark One

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2022

[   ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ______ to _______

Commission file # 333-219148

VIVIC CORP.

 (Exact name of registrant as specified in its charter)

Nevada	7999	98-1353606
State or Other Jurisdiction of Incorporation or Organization)	(Primary Standard Industrial Classification Number)	(IRS Employer Identification Number)

187 E Warm Springs Rd., PMB#B450

Las Vegas, NV 89119

Tel: 702-899-0818

(Address and telephone number of registrant's executive office)     

702-899-0818

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.001 per share	VIVC	OTCQB

Indicate by checkmark whether the issuer: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.   Yes [X]   No [  ]

Indicate by check mark whether the registrant is a large accelerated filed, an accelerated filer, a non-accelerated filer, or a smaller reporting company.

Large accelerated filer [  ]Non-accelerated filer [ X ]Accelerated filer [   ]  

Smaller reporting company [ X ] Emerging growth company [ X ] 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [ ]

Indicate by checkmark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes [ ] No [X ]

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the most practicable date:

Common stock, $0.001 par value; 70,000,000 shares authorized; 25,546,810 common stocks as of May 23, 2022.

1

Table of Contents

ITEM 1	Financial Statements
ITEM 2	Management’s Discussion and Analysis Of Financial Condition And Results Of Operations
ITEM 3	Quantitative And Qualitative Disclosures About Market Risk
ITEM 4	Controls And Procedures
	PART II OTHER INFORMATION
ITEM 1	Legal Proceedings
ITEM 2	Unregistered Sales of Equity Securities And Use Of Proceeds
ITEM 3	Defaults Upon Senior Securities
ITEM 4	Mine Safety Disclosures
ITEM 5	Other Information
ITEM 6	Exhibits
	Signatures

2

ITEM 1. FINANCIAL STATEMENTS

VIVIC CORP.

INDEX TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Condensed Consolidated Balance Sheets as of March 31, 2022 (Unaudited) and December 31, 2021

Unaudited Condensed Consolidated Statements of Operations and Comprehensive Loss for the Three Months ended March 31, 2022 and 2021

Unaudited Condensed Consolidated Statement of Shareholders’ Equity for the Three Months ended March 31, 2022 and 2021

Unaudited Condensed Consolidated Statements of Cash Flows for the Three Months ended March 31, 2022 and 2021

Notes to Condensed Consolidated Financial Statements

3

VIVIC CORP.

CONDENSED CONSOLIDATED BALANCE SHEETS

	March 31, 2022		December 31, 2021
	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	839,420	$	80,306
Accounts receivable, net		930		928
Deposits and prepayments		206,675		105,011
Inventory		182,737		163,975
Other current assets		87,916		189,468
Total current assets		1,317,678		539,688
Non-current assets:
Long-term investment		-		61,191
Property, plant and equipment, net		88,682		92,357
Construction in process		186,126		185,667
Operating lease right-of-use assets		508,285		534,231
Other noncurrent assets		35,882		38,950
TOTAL ASSETS	$	2,136,653	$	1,452,084
LIABILITIES AND SHAREHOLDERS’ DEFICIT
Current liabilities:
Accounts payable	$	16,010	$	19,265
Accrued liabilities and other payables		155,473		203,847
Due to related parties		394,908		469,748
Deferred revenue		1,137,378		204,442
Operating lease liabilities-current		177,958		141,725
Income tax payable		-		-
Total current liabilities		1,881,727		1,039,027
Non-current liabilities:
Operating lease liabilities-noncurrent		395,045		422,948
Promissory note		87,500		87,500
TOTAL LIABILITIES		2,364,272		1,549,475
Commitments and contingencies
Shareholders’ deficit
Preferred stock, $0.001 par value; 5,000,000 shares authorized; 832,000 shares issued and outstanding as of March 31, 2022 and December 31, 2021		832		832
Common stock, $0.001 par value; 70,000,000 shares authorized; 25,546,810 and 25,556,810 shares issued and outstanding as of March 31, 2022 and December 31, 2021, respectively.		25,547		25,557
Additional paid-in capital		3,873,719		3,821,709
Accumulated other comprehensive income		14,532		10,347
Accumulated deficit		(4,040,614)		(3,865,450)
Total Vivic Corp. shareholders’ deficit		(125,984)		(7,005)
Non-controlling interest		(101,635)		(90,386)
Total shareholders deficit		(227,619)		(97,391)
TOTAL LIABILITIES AND SHAREHOLDERS’ DEFICIT	$	2,136,653	$	1,452,084

4

VIVIC CORP.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(Unaudited)

	For the Three Months Ended March 31,
	2022		2021
REVENUE	$	1,058	$	3,011
Cost of revenue		(950)		-
Gross profit		108		3,011
Operating expenses:
General and administrative expenses	$	(232,555)	$	(226,440)
Total operating expenses		(232,555)		(226,440)
Loss from operations		(232,447)		(223,429)
Other income (expense):
Investment gain (loss)		61,578		(11,755)
Interest income		132		46
Interest expense		(13,702)		(1,037)
Loss on loan settlement		(2,000)		(661,132)
Other income		35		-
Total other income (expense)		46,043		(673,878)
Loss before income taxes		(186,404)		(897,307)
Income taxes		(9)		-
NET LOSS		(186,413)		(897,307)
Net loss attributable to non-controlling interest		(11,249)		(11,146)
Net loss attributable to Vivic Corp.	$	(175,164)	$	(886,161)
Other comprehensive loss:
Foreign currency translation loss		4,185		(5,488)
COMRPEHENSIVE LOSS	$	(170,979)	$	(891,649)
Net loss per share – Basic and Diluted	$	(0.01)	$	(0.06)
Weighted average common shares outstanding
– Basic and Diluted		25,557,254		24,605,623

See accompanying notes to condensed consolidated financial statements.

5

VIVIC CORP.

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ (DEFICIT) EQUITY

(Unaudited)

	For the Three Months Ended March 31, 2022 and 2021
		Equity attributable to VIVIC Corp. shareholders
	Preferred stock				Common stock			Additional paid-in capital		Accumulated other comprehensive (loss) income				Accumulated deficit	Noncontrolling interests				Total shareholders’ (deficit) equity
	Shares		Amount		Shares	Amount
Balance as of December 31, 2020	832,000		$	832	24,470,166	$	24,470	$	1,341,155	$	(2,240)	$	(1,300,505)		$	84,298		$	148,010
Shares issued for loan settlement	-			-	468,888		469		1,124,862		-		-			-			1,125,331
Foreign currency translation adjustment	-			-	-		-		-		(5,488)		-			-			(5,488)
Net loss	-			-	-		-		-		-		(886,161)			(11,146)			(897,307)
Balance as of March 31, 2021	832,000		$	832	24,939,054	$	24,939	$	2,466,017	$	(7,728)	$	(2,186,666)		$	73,152		$	370,546
Balance as of December 31, 2021	832,000		$	832	25,556,810	$	25,557	$	3,821,709	$	10,347	$	(3,865,450)		$	(90,386)		$	(97,391)
Cancellation of shares	-			-	(60,000)		(60)		60		-		-			-			-
Shares issued for loan settlement	-			-	50,000		50		51,950		-			-			-		52,000
Foreign currency translation adjustment	-			-	-		-		-		4,185		-			-			4,185
Net loss	-			-	-		-		-		-		(175,164)			(11,249)			(186,413)
Balance as of March 31, 2022	832,000		$	832	25,546,810	$	25,547	$	3,873,719	$	14,532	$	(4,040,614)		$	(101,635)		$	(227,619)

See accompanying notes to condensed consolidated financial statements.

1

VIVIC CORP.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	For the Three Months Ended March 31,
	2022		2021
Cash flows from operating activities:
Net loss	$	(186,413)	$	(897,307)
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation of property, plant and equipment		1,858		10,136
Amortization of right-of-use assets		27,246		-
Bad debt direct write-off and provision		11,125		-
Interest expense		5,742		774
Investment gain(loss)		(60,605)		11,755
Loss on loan settlement		2,000		661,132
Change in operating assets and liabilities:
Accounts receivable		(2)		-
Deposits and prepayments		(112,789)		(206,583)
Other receivable		101,552		(47,277)
Inventory		(18,762)		-
Other non-current assets		(24,178)		-
Deferred revenue		932,936		6,104
Accounts payable		(3,255)		(50)
Accrued liabilities and other payables		(18,126)		(15,123)
Lease liabilities		(1,714)		(1,488)
Net cash provided by (used in) operating activities		656,615		(477,927)
Cash flows from investing activities:
Investment in a subsidiary		(47,310)		(55,060)
Disposal of subsidiary		169,106		-
Purchase of property, plant and equipment		-		-
Net cash provided by (used in) investing activities		121,796		(55,060)
Cash flows from financing activities:
Proceeds from related parties		-		3,478
Repayment to related parties		(74,840)		-
Proceeds from loans		50,000		464,199
Proceeds from third party loan		-		152,588
Net cash (used in) provided by financing activities		(24,840)		620,265
Effect on exchange rate change on cash and cash equivalents		5,543		(4,637)
NET CHANGE IN CASH AND CASH EQUIVALENTS		759,114		82,641
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD		80,306		562,503
CASH AND CASH EQUIVALENTS - END OF PERIOD	$	839,420	$	645,144
Supplemental Cash Flows Information:
Cash paid for interest	$	95	$	263
Cash paid for income tax	$	9	$	-
Supplemental Disclosure of Non-Cash Flows Information:
Common stock issued for loan settlement	$	52,000	$	1,125,331

See accompanying notes to condensed consolidated financial statements.

1

VIVIC CORP.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE－1ORGANIZATION AND BUSINESS BACKGROUND 

VIVIC CORP. (the "Company" or “VIVC”) is a corporation established under the corporation laws in the State of Nevada on February 16, 2017. Starting December 27, 2018, associated with the change of management, we expanded our business operations to include new types of marine tourism.  In addition, the Company started making efforts to enter into the businesses of constructing marinas and constructing yachts in the mainland China under the brand of Monte Fino. Monte Fino is a famous yacht brand owned by Taiwan Kha Shing Yacht Company, one of the leading yacht manufacturers in the world.

It has also developed and operates “Joy Wave”(享浪)，an online yacht rental and leisure service business in Guangzhou, China. In the mainland China and Taiwan, primarily through the Internet, we provide third-party yacht and marine tourism services.  This marine tourism involves high quality coastal tourism attractions in Taiwan and China including Hainan, Guangdong, Xiamen, and Quanzhou.

In the field of marine tourism, the number of yachts that can be rented has been increased through a yacht-sharing program system, which can provide services for more customers.

The Company also started to develop energy-saving yacht engines. Because it has advanced technology, it can achieve up to 50% energy efficiency. This energy-saving and innovative technology may be applied to new energy-saving engines for yachts. This innovative technology may bring favorable changes to the yachting industry and promote a low-carbon tourism for global environmental protection.

On March 22, 2022, the Company sold its shares of Ocean Way and its subsidiaries to a third-party for a total of $169,844 (RMB1,080,000).

Description of subsidiaries

Name		Place of incorporation and kind of legal entity	Principal activities and place of operation	Particulars of issued/ registered share capital	Effective interest held
Vivic Corporation (Hong Kong) Co., Limited	Hong Kong		Investment holding and tourism consultancy service	52,000,000 ordinary shares for HK$2,159,440	100%
Khashing Yachts Industry (Guangdong) Limited (formerly Guangzhou Monte Fino Yacht Company Limited)	The People’s Republic of China		Tourism consultancy service and provision of yacht service	Registered: RMB10,000,000 Paid up: RMB4,236,132	100%
Guangzhou Hysoul Yacht Company Limited	The People’s Republic of China		Provision of yacht service	Registered: RMB10,000,000 Paid up: RMB1,055,000	100%
Zhejiang Jiaxu Yacht Company Limited	The People’s Republic of China		Provision of yacht service	Registered: RMB30,000,000 Paid up: RMB1,030,000	70%

VIVC and its subsidiaries are hereinafter referred to as (the “Company”).

NOTE－2SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 

The accompanying condensed consolidated financial statements reflect the application of certain significant accounting policies as described in this note and elsewhere in the accompanying condensed consolidated financial statements and notes.

lBasis of presentation 

These accompanying condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”).

The accompanying unaudited condensed financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Annual Report on Form 10-K filed by the Company with the SEC on May 16, 2022.

lUse of estimates 

In preparing these condensed consolidated financial statements, management makes estimates and assumptions that affect the reported amounts of assets and liabilities in the balance sheet and revenues and expenses during the periods reported. Actual results may differ from these estimates.

2

VIVIC CORP.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

lBasis of consolidation 

The condensed consolidated financial statements include the financial statements of VIVC and its subsidiaries. All significant inter-company balances and transactions within the Company have been eliminated upon consolidation.

lCash and cash equivalents 

Cash and cash equivalents consist primarily of cash in readily available checking and saving accounts. Cash equivalents consist of highly liquid investments that are readily convertible to cash and that mature within three months or less from the date of purchase. The carrying amounts approximate fair value due to the short maturities of these instruments.As of March 31, 2022 and December 31, 2021, the Company had $236,478 and $0 cash equivalents, respectively.

lAccounts receivable  

Accounts receivable are recorded at the invoiced amount and do not bear interest, which are due within contractual payment terms, generally 30 to 90 days from completion of service. Credit is extended based on evaluation of a customer's financial condition, the customer credit-worthiness and their payment history. Accounts receivable outstanding longer than the contractual payment terms are considered past due. Past due balances over 90 days and over a specified amount are reviewed individually for collectability. At the end of fiscal year, the Company specifically evaluates individual customer’s financial condition, credit history, and the current economic conditions to monitor the progress of the collection of accounts receivables. The Company will consider the allowance for doubtful accounts for any estimated losses resulting from the inability of its customers to make required payments. For the receivables that are past due or not being paid according to payment terms, the appropriate actions are taken to exhaust all means of collection, including seeking legal resolution in a court of law. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Company does not have any off-balance-sheet credit exposure related to its customers. As of March 31, 2022 and December 31, 2021, there was no allowance for doubtful accounts.

lProperty, plant and equipment 

Property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses, if any. Depreciation is calculated on the straight-line basis over the following expected useful lives from the date on which they become fully operational and after taking into account their estimated residual values:

	Expected useful life
Service yacht	10 years
Motor vehicle	5 years
Office equipment	5 years

Expenditure for repairs and maintenance is expensed as incurred. When assets have retired or sold, the cost and related accumulated depreciation are removed from the accounts and any resulting gain or loss is recognized in the results of operations.

lIntangible assets, net 

Intangible assets are stated at cost less accumulated amortization. Intangible assets represented the trademark registered in the PRC and purchased software which are amortized on a straight-line basis over a useful life of 10 years.

The Company follows ASC Topic 350 in accounting for intangible assets, which requires impairment losses to be recorded when indicators of impairment are present and the undiscounted cash flows estimated to be generated by the assets are less than the assets’ carrying amounts.

lRevenue recognition 

In accordance with Accounting Standard Codification (“ASC”) Topic 606, “Revenue from Contracts with Customers”, the Company recognizes revenues when goods or services are transferred to customers in an amount that reflects the consideration which the Company expects to receive in exchange for those goods or services. In determining when and how revenues are recognized from contracts with customers, the Company performs the following five-step analysis: (i) identification of contract with customer; (ii) determination of performance obligations; (iii) measurement of the transaction price; (iv) allocation of the transaction price to the performance obligations, and (v) recognition of revenues when (or as) the Company satisfies each performance obligation. The Company derives revenues from the processing, distribution, and sale of its products.

lComprehensive income 

ASC Topic 220, “Comprehensive Income”, establishes standards for reporting and display of comprehensive income, its components and accumulated balances. Comprehensive income as defined includes all changes in equity during a period from non-owner sources. Accumulated other comprehensive income, as presented in the accompanying condensed consolidated statement of stockholders’ equity, consists of changes in unrealized gains and losses on foreign currency translation. This comprehensive income is not included in the computation of income tax expense or benefit.

lIncome taxes 

3

VIVIC CORP.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Income taxes are determined in accordance with the provisions of ASC Topic 740, “Income Taxes” (“ASC 740”). Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted income tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Any effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.

ASC 740 prescribes a comprehensive model for how companies should recognize, measure, present, and disclose in their financial statements uncertain tax positions taken or expected to be taken on a tax return. Under ASC 740, tax positions must initially be recognized in the financial statements when it is more likely than not the position will be sustained upon examination by the tax authorities. Such tax positions must initially and subsequently be measured as the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the tax authority assuming full knowledge of the position and relevant facts.

The Company is subject to tax in local and foreign jurisdiction. As a result of its business activities, the Company files tax returns that are subject to examination by the relevant tax authorities.

lForeign currencies translation 

Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transaction. Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency using the applicable exchange rates at the balance sheet dates. The resulting exchange differences are recorded in the statement of operations.

The reporting currency of the Company is United States Dollar ("US$") and the accompanying consolidated financial statements have been expressed in US$. In addition, the Company and subsidiaries are operating in PRC and Hong Kong maintain their books and record in their local currency, Renminbi (“RMB”) and Hong Kong dollars (“HK$”), which is a functional currency as being the primary currency of the economic environment in which their operations are conducted. In general, for consolidation purposes, assets and liabilities of its subsidiaries whose functional currency is not US$ are translated into US$, in accordance with ASC Topic 830-30, “ Translation of Financial Statement”, using the exchange rate on the balance sheet date. Revenues and expenses are translated at average rates prevailing during the year. The gains and losses resulting from translation of financial statements of foreign subsidiaries are recorded as a separate component of accumulated other comprehensive income within the statements of changes in stockholder’s equity.

Translation of amounts from RMB and HK$ into US$ has been made at the following exchange rates for the period ended March 31, 2022 and December 31, 2021:

	March 31, 2022	December 31, 2021
Period/year-end RMB:US$ exchange rate	6.3431	6.3588
Period/annual average RMB:US$ exchange rate	6.3481	6.4499
Period/year-end HK$:US$ exchange rate	7.8306	7.7971
Period/annual average HK$:US$ exchange rate	7.8050	7.7723
Period/year-end TWD:US$ exchange rate	28.6328	27.6879
Period/annual average TWD:US$ exchange rate	27.9955	27.9194

lLease 

At the inception of an arrangement, the Company determines whether the arrangement is or contains a lease based on the unique facts and circumstances present. Leases with a term greater than one year are recognized on the balance sheet as right-of-use assets, lease liabilities and long-term lease liabilities. The Company has elected not to recognize on the balance sheet leases with terms of one year or less. Operating lease liabilities and their corresponding right-of-use assets are recorded based on the present value of lease payments over the expected remaining lease term. However, certain adjustments to the right-of-use asset may be required for items such as prepaid or accrued lease payments. The interest rate implicit in lease contracts is typically not readily determinable. As a result, the Company utilizes its incremental borrowing rates, which are the rates incurred to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment.

In accordance with the guidance in ASC 842, components of a lease should be split into three categories: lease components (e.g. land, building, etc.), non-lease components (e.g. common area maintenance, consumables, etc.), and non-components (e.g. property taxes, insurance, etc.). Subsequently, the fixed and in-substance fixed contract consideration (including any related to non-components) must be allocated based on the respective relative fair values to the lease components and non-lease components.

The Company made the policy election to not separate lease and non-lease components. Each lease component and the related non-lease components are accounted for together as a single component.

lNoncontrolling interest 

The Company accounts for noncontrolling interest in accordance with ASC Topic 810-10-45, which requires the Company to present noncontrolling interests as a separate component of total shareholders’ equity on the consolidated balance sheets and the consolidated net loss

4

VIVIC CORP.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

attributable to the its noncontrolling interest be clearly identified and presented on the face of the consolidated statements of operations and comprehensive loss.

lNet loss per share 

The Company calculates net loss per share in accordance with ASC Topic 260, “Earnings per Share.” Basic income per share is computed by dividing the net income by the weighted-average number of common shares outstanding during the period. Diluted income per share is computed similar to basic income per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common stock equivalents had been issued and if the additional common shares were dilutive.

lConcentrations and credit risk 

The Company’s principal financial instruments subject to potential concentration of credit risk are cash and cash equivalents, including amounts held in money market accounts. The Company places cash deposits with a federally insured financial institution. The Company maintains its cash at banks and financial institutions it considers to be of high credit quality; however, the Company’s domestic cash deposits may at times exceed the Federal Deposit Insurance Corporation’s insured limit. Balances in excess of federally insured limitations may not be insured. The Company has not experienced losses on these accounts, and management believes that the Company is not exposed to significant risks on such accounts.

lFair value of financial instruments 

The carrying value of the Company’s financial instruments (excluding short-term bank borrowing and note payable): cash and cash equivalents, accounts and retention receivable, prepayments and other receivables, accounts payable, income tax payable, amount due to a related party, other payables and accrued liabilities approximate at their fair values because of the short-term nature of these financial instruments.

Management believes, based on the current market prices or interest rates for similar debt instruments, the fair value of note payable approximate the carrying amount.

The Company also follows the guidance of the ASC Topic 820-10, “Fair Value Measurements and Disclosures” ("ASC 820-10"), with respect to financial assets and liabilities that are measured at fair value. ASC 820-10 establishes a three-tier fair value hierarchy that prioritizes the inputs used in measuring fair value as follows:

● Level 1: Inputs are based upon unadjusted quoted prices for identical instruments traded in active markets;

● Level 2: Inputs are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active; and

● Level 3: Inputs are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. The fair values are therefore determined using model-based techniques, including option pricing models and discounted cash flow models.

Fair value estimates are made at a specific point in time based on relevant market information about the financial instrument. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates.

lRecent accounting pronouncements 

The Company has reviewed all recently issued, but not yet effective, accounting pronouncements and does not believe the future adoption of any such pronouncements may be expected to cause a material impact on its financial condition or the results of its operations.

NOTE－3GOING CONCERN UNCERTAINTIES 

The accompanying condensed consolidated financial statements have been prepared using the going concern basis of accounting, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business.

The Company had $839,420 cash and cash equivalents and working capital deficit of $564,049 as of March 31, 2022 and net loss of $186,413 during the three months ended March 31, 2022. In addition, with respect to the ongoing and evolving coronavirus (COVID-19) outbreak, which was designated as a pandemic by the World Health Organization on March 11, 2020, the outbreak has caused substantial disruption in international economies and global trades and if repercussions of the outbreak are prolonged, could have a significant adverse impact on the Company’s business.

The continuation of the Company as a going concern through May 23, 2023 is dependent upon the continued financial support from its shareholders. Management believes the Company is currently pursuing additional financing for its operations. However, there is no assurance that the Company will be successful in securing sufficient funds to sustain the operations.

These and other factors raise substantial doubt about the Company’s ability to continue as a going concern. These condensed consolidated financial statements do not include any adjustments to reflect the possible future effects on the recover ability and classification of assets and liabilities that may result in the Company not being able to continue as a going concern.

5

VIVIC CORP.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE－4       LONG-TERM INVESTMENT

On January 3, 2021, the Company signed an investment agreement with Shenzhen Ocean Way Yachts Services Co., Limited (“Ocean Way”) to invest a total of $235,895(RMB1,500,000), which is equivalent to 60% of equity ownership. However, based on the agreements, Shaorong Zhuang, the other shareholder has the right to assign the majority of directors in the board and controls Ocean Way. As a result, Ocean Way is treated as an investment rather than subsidiary. As of December 31, 2021, a total of $122,665(RMB780,000) has been invested in Ocean Way. In the year ended December 31, 2021, an investment loss of $61,474 has been recognized. On March 22,2022, the Company sold Ocean Way for a total proceed of $169,844 (RMB1,080,000). In the three months ended March 31, 2022, an investment gain of $61,578 has been recognized.

NOTE－5PROPERTY, PLANT AND EQUIPMENT 

Property, plant and equipment consisted of the following:

	March 31, 2022		December 31, 2021
At cost:
Leasehold improvements	$	39,413	$	39,316
Motor vehicle		57,657		57,514
Office equipment		8,965		9,048
		106,035		105,878
Less: accumulated depreciation		(17,353)		(13,521)
	$	88,682	$	92,357

Depreciation expense for the three months ended March 31, 2022 and 2021 were $1,858 and $10,136, respectively.

NOTE－6DEPOSITS AND PREPAYMENTS 

Deposits and prepayments consisted of the following:

	March 31, 2022		December 31, 2021
Deposits	$	-	$	-
Prepayments (a)		206,675		105,011
	$	206,675	$	105,011

(a)The amount will be recognized as expenses in next twelve months. 

NOTE－7ACCRUED LIABILITIES AND OTHER PAYABLE 

Accrued expenses and other payable consisted of the following:

	March 31, 2022		December 31, 2021
Accrued expenses	$	89,287	$	47,018
Other payable (a)		66,186		156,829
	$	155,473	$	203,847

(a)The amount will be settled in next twelve months. 

NOTE－8LEASES 

The Company purchased a service vehicle under a financing lease arrangement of a total amount of $18,146 (RMB117,043) starting from August 1, 2019, with the effective interest rate of 2.25% per annum, due through May 1, 2022, with principal and interest payable monthly.

The Company leases premises for offices and dock for operating under non-cancelable operating leases with initial terms of 5 years and the effective interest rate of 6% per annum. Operating lease payments are expended over the term of lease. The Company leases don’t include options to extend nor any restrictions or covenants. Under the terms of the lease agreements, the Company has no legal or contractual asset retirement obligations at the end of the lease.

6

VIVIC CORP.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Supplemental balance sheet information related to leases as of March 31, 2022 and December 31, 2021 are as follows:

	March 31, 2022		December 31, 2021
Right of use assets	$	508,285	$	534,231
Current portion	$	177,958	$	141,725
Non-current portion		395,045		422,948
Total	$	573,003	$	564,673

The following table summarizes the maturity of lease liabilities under operating leases as of March 31, 2022:

For the twelve months ending March 31,	Operating Leases
2023		177,958
2024		152,422
2025		155,093
Thereafter		87,530
Total lease payments		573,003

NOTE－9PROMISSORY NOTE 

Promissory note represented the U.S. Small Business Administration, an Agency of the U.S. Government authorized a loan to the Company which bears interest at the rate of 3.75% per annum and will become repayable within 30 years, from the date of draw down. This loan is secured by all tangible and intangible personal property, including, but not limited to: (a) inventory, (b) equipment, (c) instruments, (d) chattel paper, (e) receivables, (h) deposit accounts, (i) commercial tort claims and (j) general intangibles. The loan was borrowed on July 1, 2020 and the initial installment repayment date begins Twelve (12) months from the date of the promissory Note and has been extended for 30 months. As a result, the Company has not made any repayment. Total promissory note recorded in balance were $87,500 at March 31, 2022 and December 31, 2021. The accrued interest expense is $830 for the three months ended March 31, 2022 and 2021, respectively.

NOTE－10SHAREHOLDERS’ (DEFICIT) EQUITY 

Authorized Shares

The Company’s authorized shares are 5,000,000 preferred shares and 70,000,000 common shares with a par value of $0.001 per share.

Preferred Shares

As of March 31, 2022 and December 31, 2021, the Company had a total of 832,000 shares of preferred stock issued and outstanding.

Common Shares

On February 15, 2022, the Company issued 50,000 shares of common stock to settle a debt in the amount of $50,000, at an agreed conversion price of $1.0 per share. A loss of $2,000 on the loan settlement has been recognized in the three months ended March 31, 2022.

On March 22, 2022, the Company cancelled 60,000 shares of common stock previously issued to its former CFO due to termination of employment.

As of March 31, 2022 and December 31, 2021, the Company had a total of 25,546,810 and 25,556,810 shares of its common stock issued and outstanding, respectively.

7

VIVIC CORP.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE－11NET LOSS PER SHARE OF COMMON STOCK 

Basic net (loss) income per share is computed using the weighted average number of common shares outstanding during the year. The dilutive effect of potential common shares outstanding is included in diluted net (loss) income per share. The following table sets forth the computation of basic and diluted net (loss) income per share for the three months ended March 31, 2022 and 2021:

	For the three months ended March 31,
	2022		2021
Net (loss) income for basic and diluted attributable to Vivic Corp.	$	(186,413)	$	(897,307)
Weighted average common stock outstanding -    Basic and Diluted		25,557,254		24,605,623
Net (loss) income per share of common stock – basic and diluted	$	(0.01)	$	(0.06)

NOTE－12RELATED PARTY TRANSACTIONS 

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 shareholders. 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 shareholders of the Company, which were unsecured, interest-free and had no fixed terms of repayments. Imputed interests from related parties’ loan are not significant. The balance of due to related parties was $394,908 and 469,748 as of March 31, 2022 and December 31, 2021 .

The Company paid $0 and $9,000 consulting fee to Honetech Inc., its preferred stock controlling shareholder during the three months ended March 31, 2022 and 2021, respectively. Each Preferred Share is entitled to fifty (50) votes.

The Company paid $0 and $46,003 consulting fee to Go Right Holdings Limited., who owns approximately 22% of the outstanding common stocks on March 31, 2022 during the three months ended March 31, 2022 and 2021, respectively.

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

NOTE－13COMMITMENTS AND CONTINGENCIES 

As of March 31, 2022 and December 31, 2021, the Company has no material commitments and contingencies.

NOTE－14SUBSEQUENT EVENTS 

In accordance with ASC Topic 855, “Subsequent Events”, which establishes general standards of accounting for and disclosure of events that occur after the balance sheet date but before financial statements are issued, the Company has evaluated all events or transactions that occurred March 31, 2022, up through May 23, 2022 the Company presented the condensed consolidated financial statements.

8

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION

FORWARD-LOOKING STATEMENTS

Statements made in this Annual Report that are not historical or current facts are "forward-looking statements" made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933 (the "Act") and Section 21E of the Securities Exchange Act of 1934. These statements often can be identified by the use of terms such

as"may,""will,""expect,""believe,""anticipate,""estimate,""approximate" or "continue," or the negative thereof.

We intend that such forward-looking statements be subject to the safe harbors for such statements.

We wish to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. Any forward-looking statements represent management's commercially reasonable judgment as to what may occur in the future. However, forward-looking statements are subject to risks, uncertainties and important factors beyond our control that could cause actual results and events to differ materially from historical results of operations and events and those presently anticipated or projected. We disclaim any obligation subsequently to revise any forward-looking statements to reflect events or circumstances after the date of such statement or to reflect the occurrence of anticipated or unanticipated events.

Overview

VIVIC CORP. (“VIVC”) is a corporation established under the corporation laws in the State of Nevada on February 16, 2017. Starting December 27, 2018, associated with the change of management, we expanded our business operations to include new types of marine tourism.  In addition, we started making efforts to enter into the businesses of constructing marinas and constructing yachts in the mainland China under the brand of Monte Fino. Monte Fino is a famous yacht brand owned by Taiwan Kha Shing Yacht Company, one of the leading yacht manufacturers in the world.

It has also developed and operates “Joy Wave”, an online yacht rental and leisure service business in Guangzhou, China. In the mainland China and Taiwan, primarily through the Internet, we provide third-party yacht and marine tourism services. This marine tourism involves high quality coastal tourism attractions in Taiwan and China including Hainan, Guangdong, Xiamen, and Quanzhou.

In the field of marine tourism, the number of yachts that can be rented has been increased through a yacht-sharing program system, which can provide services for more customers.

We also started to develop energy-saving yacht engines. Because it has advanced technology, it can achieve up to 50% energy efficiency. This energy-saving and innovative technology may be applied to new energy-saving engines for yachts. This innovative technology may bring favorable changes to the yachting industry and promote a low-carbon tourism for global environmental protection.

RESULTS OF OPERATIONS

Our business has been impacted by the COVID-19 pandemic with the authorities implementation of various preventive measures including, but not limited to, travel bans and restrictions, mandatory quarantine requirements, limited business activities and operations, and shelter-in-place orders. These measures have led to, and are continuing to lead to, business slowdowns or shutdowns worldwide. The global economy and financial markets have been adversely influenced as well. Considering the features of our business in the tourism and recreation industries, the COVID-19 pandemic has caused a reduction in the demand for recreational trips and activities. Our business has been experiencing the downturn with the COVID-19 pandemic. It is expected that our business will be resumed, at least, after the abolition of the travel restrictions and mandatory quarantine requirements.

RESULTS OF OPERATIONS

Our financial statements have been prepared assuming that we will continue as a going concern and, accordingly, do not include adjustments relating to the recover ability and realization of assets and classification of liabilities that might be necessary should we be unable to continue in operation.

We generated net revenues of $1,058 and $3,011 for the three months ended March 31, 2022 and 2021, respectively.  The decrease in net revenues was primarily because the revenue deriving from consulting services rendered on sales and marketing of yachts decreased.

The cost of revenue incurred were $950 and $0 for the three months ended March 31, 2022 and 2021, respectively.

The gross profits were $108 and $3,011 for the three months ended March 31, 2022 and 2021, respectively. The falling gross profit in 2021 was essentially caused by the COVID-19 pandemic, which unfavorably influenced our consulting service fee on sales and marketing of yachts.

The general and administrative expenses incurred were $232,555 and $226,440 for the three months ended March 31, 2022 and 2021, respectively. General and administrative expenses were basically the business expenses and corporate overhead.

Other income(expense) was $46,043 and $(673,878) for the three months ended March 31, 2022 and 2021, respectively. Other income(expense) comprise of investment gain(loss), loss on loan settlement, interest expense, interest income and others. Investment gain(loss) was $61,578 and $(11,755) for the three months ended March 31, 2022 and 2021, respectively. The investment gain(loss) in the

9

three months ended March 31, 2022 and 2021 was primarily due to the investment gain(loss) in long-term investment. Loss on loan settlement was $2,000 and $661,132 for the three months ended March 31, 2022 and 2021, respectively.

The net losses were $186,413 and $897,307 for the three months ended March 31, 2022 and 2021, respectively. The main reason for the decreased losses was the decrease in loss on loan settlement.

LIQUIDITY AND GOING CONCERN

We had $839,420 cash and cash equivalents and working capital deficit of $564,049 as of March 31, 2022 and net loss of $186,413 during the three months ended March 31, 2022. In addition, with respect to the ongoing and evolving coronavirus (COVID-19) outbreak, which was designated as a pandemic by the World Health Organization on March 11, 2020, the outbreak has caused substantial disruption in international economies and global trades and if repercussions of the outbreak are prolonged, could have a significant adverse impact on the Company’s business.

Cash Flows from Operating Activities

The net cash provided by (used in) operating activities were $656,615 and $(477,927) for the three months ended March 31, 2022 and 2021, respectively. For the three months ended March 31, 2022, the most affected the net cash provided by operating activities were the deferred revenue $932,936 offset by the net loss of $186,413 and increase in deposit and prepaid expenses $112,789. For three months ended March 31, 2021, the most affected the net cash used in operating activities were the net loss $897,307, offset by the loss on loan settlement $661,132.

Cash Flows from Investing Activities

The net cash provided by (used in) investing activities were $121,796 and $55,060 for the three months ended March 31, 2022 and 2021, respectively. The sum represented the cash from sold Ocean Way for the three months ended March 31, 2022. The change is primarily due to the investment and disposal of Ocean Way for the three months ended March 31, 2022.

Cash Flows from Financing Activities

The net cash used in (provided by) financing activities were $(24,840) for the three months ended March 31, 2022 and $620,265 for the three months ended March 31, 2021.For the three months ended March 31, 2022, the cash used in financing activities were repayment of related party $74,840 and the cash generated from financing activities included proceeds from loans $50,000. For the three months ended March 31, 2021, the cash generated from financing activities included proceeds from loans $464,199 and proceeds from third party loan $152,588.

Going Concern

The independent auditors' report accompanying our financial statements contain a note expressing substantial doubt about our ability to continue as a going concern. The consolidated financial statements have been prepared "assuming that we will continue as a going concern," which contemplates that we will realize our assets and satisfy our liabilities and commitments in the ordinary course of business.

For the three months ended March 31, 2022, we have not established a recurring source of revenue to sufficiently cover its operating costs in the next twelve months. These factors raise substantial doubt about our ability to continue as a going concern. Our ability to continue as a going concern is dependent on our ability to raise additional capital and implement business and expansion plans. These consolidated financial statements do not include any adjustments to the recover ability and classification of recorded asset amounts and classification of liabilities that might be necessary should we be unable to continue as a going concern.

Our management believes that the current actions to obtain additional funding and implement our strategic plans provide the opportunity for us to continue as a going concern. There are no assurances that additional funds will be available when needed from any source or, if available, will be available on terms that are acceptable to us.

PLAN OF OPERATION AND FUNDING

We expect that working capital requirements will continue to be funded through a combination of our existing funds and further issuances of securities. Our working capital requirements are expected to increase in line with the growth of our business.

Existing working capital, further advances and debt instruments, and anticipated cash flow are expected to be adequate to fund our operations over the next six months. We have no lines of credit or other bank financing arrangements. Generally, we have financed operations to date through the proceeds of the private placement of equity and debt instruments. In connection with our business plan, management anticipates additional increases in operating expenses and capital expenditures relating to: (i) developmental expenses associated with business and (ii) marketing expenses. We intend to finance these expenses with further issuances of securities, and debt issuances. Thereafter, we expect we will need to raise additional capital and generate revenues to meet long- term operating requirements. Additional issuances of equity or convertible debt securities will result in dilution to our current shareholders.  Further, such securities might have rights, preferences or privileges senior to our common stock. Additional financing may not be available upon acceptable terms, or at all. If adequate funds are not available or are not available on acceptable terms, we may not be able to take advantage of prospective new business endeavors or opportunities, which could significantly and materially restrict our business operations.

MATERIAL COMMITMENTS

As of the date of this Report, we do not have any material commitments.

10

OFF-BALANCE SHEET ARRANGEMENTS

As of the date of this Report, there are no such arrangements. We do not have any off balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to investors.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

As a "smaller reporting company" as defined by Item 10 of Regulation S-K, the Company is not required to provide information required by this Item.

ITEM 4. CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

We maintain disclosure controls and procedures, as defined in Rule 13a-15(e) promulgated under the Securities Exchange Act of 1934 (the "Exchange Act"), that are designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure. We carried out an evaluation, under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures as of March 31, 2022. Based on the evaluation of these disclosure controls and procedures, the Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were not effective.

Changes in Internal Controls over Financial Reporting

There have been no changes in the Company's internal control over financial reporting during the last quarterly period covered by this report that have materially affected, and therefore has no significant impact on the company’s financial report nor internal control.

PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

Management is not aware of any legal proceedings contemplated by any governmental authority or any other party involving us or our properties. As of the date of this Quarterly Report, no director, officer or affiliate is (i) a party adverse to us in any legal proceeding, or (ii) has an adverse interest to us in any legal proceedings. Management is not aware of any other legal proceedings pending or that have been threatened against us or our properties.

Item 1A.Risk Factors 

Except for the below risk factor, as of the date of this Report, there have been no material changes to the risk factors disclosed in the annual report on Form 10-K filed with the SEC on May 16, 2022. We may disclose changes to such factors or disclose additional factors from time to time in our future filings with the SEC.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

On February 15, 2022, the Company issued 50,000 shares of common stock to settle a debt in the amount of $50,000, at an agreed conversion price of $1.0 per share.

The issuance of these shares is pursuant to the exemption from registration provided by Section 4(2) of the Securities Act of1933.

None in the quarter ended March 31, 2022

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

No senior securities were issued and outstanding during the three-month period ended March 31, 2022.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable to our Company.

ITEM 5. OTHER INFORMATION

None.

ITEM 6. EXHIBITS

Exhibits:

11

31.1 Certification of Chief Executive Officer and Chief Financial Officer pursuant to Securities Exchange Act of 1934 Rule 13a-14(a) or 15d-14(a)

32.1 Certifications pursuant to Securities Exchange Act of 1934 Rule 13a-14(b) or 15d-14(b) and 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes- Oxley Act of 2002

101.INS XBRL Instance Document

101.SCH XBRL Taxonomy Extension Schema Document

101.CAL XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF XBRL Taxonomy Extension Definition Document

101.LAB XBRL Taxonomy Extension Label Linkbase Document

101.PRE XBRL Taxonomy Extension Presentation Linkbase Document

SIGNATURES

In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Dated: May 23, 2022

VIVIC CORP.          

/s/ Shang-Chiai Kung

___________________                                                                                                        

By: Shang-Chiai Kung

Chief Executive Officer      

/s/ Shang-Chiai Kung

___________________                                                                                                        

By: Shang-Chiai Kung

Chief Financial Officer

12

EX-31

Exhibit 31.1

Certification Of The Chief Executive Officer Pursuant to Rule 13a-14 or 15d-14 of the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Shang-Chiai Kung, certify that:

1.  I have reviewed this Quarterly Report on Form 10-Q of Vivic Corp.;

2.  Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.  Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.  The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.  Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.  Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.  Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.  Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.  The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a.  All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b.  Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

6.  The registrant's other certifying officer(s) and I have indicated in this report whether or not there were significant changes in internal controls or on other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.

Dated:  May 23, 2022

By:          /s/ Shang-Chiai Kung

Shang-Chiai Kung

Chief Executive Officer

EX-31

Exhibit 31.1

Certification Of The Chief Financial Officer Pursuant to Rule 13a-14 or 15d-14 of the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Shang-Chiai Kung, certify that:

1.  I have reviewed this Quarterly Report on Form 10-Q of Vivic Corp.;

2.  Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.  Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.  The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.  Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.  Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.  Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.  Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.  The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a.  All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b.  Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

6.  The registrant's other certifying officer(s) and I have indicated in this report whether or not there were significant changes in internal controls or on other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.

Dated:  May 23, 2022

By:          /s/  Shang-Chiai Kung

 Shang-Chiai Kung 

Chief Financial Officer

EX-32

Exhibit 32.1

Certification Pursuant to 18 U.S.C. 1350 as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report of Vivic Corp. (the “Company”) on Form 10-Q for the period ended March 31, 2022, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Shang-Chiai Kung, Chief Executive Officer of the Company certify, pursuant to 18 U.S.C. 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1.     The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2.     The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated:  May 23, 2022

By:          /s/ Shang-Chiai Kung

Shang-Chiai Kung

Chief Executive Officer

EX-32

Exhibit 32.1

Certification Pursuant to 18 U.S.C. 1350 as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report of Vivic Corp. (the “Company”) on Form 10-Q for the period ended March 31, 2022, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Shang-Chiai Kung, Chief Financial Officer of the Company certify, pursuant to 18 U.S.C. 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1.     The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2.     The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated:  May 23, 2022

By:          /s/ Shang-Chiai Kung

Shang-Chiai Kung

Chief Financial Officer

XML

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2022	May 23, 2022
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Mar. 31, 2022
Current Fiscal Year End Date	--12-31
Entity File Number	333-219148
Entity Registrant Name	VIVIC CORP.
Entity Central Index Key	0001703073
Entity Tax Identification Number	98-1353606
Entity Incorporation, State or Country Code	NV
Entity Address, Address Line One	187 E Warm Spring Rd.
Entity Address, Address Line Two	PMB#B450
Entity Address, City or Town	Las Vegas
Entity Address, State or Province	NV
Entity Address, Postal Zip Code	89119
City Area Code	702
Local Phone Number	899-0818
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Elected Not To Use the Extended Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		70,000,000
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2022

XML

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($)	Mar. 31, 2022	Dec. 31, 2021
Current Assets
Cash and cash equivalents	$ 602,942	$ 80,306
Financial assets available for sale	236,478
Accounts receivable	930	928
Deposits and prepayments	206,675	105,011
Inventory	182,737	163,975
Other receivables	87,916	189,468
Total current assets	1,317,678	539,688
Non-current assets:
Long-term investment		61,191
Property, plant and equipment, net	88,682	92,357
Construction in process	186,126	185,667
Operating lease right-of-use assets	508,285	534,231
Other noncurrent assets	35,882	38,950
Total Assets	2,136,653	1,452,084
Current Liabilities
Accounts payable	16,010	19,265
Accrued liabilities and other payables	155,473	203,847
Due to related parties	394,908	469,748
Deferred revenue	1,137,378	204,442
Operating lease liabilities-current	177,958	141,725
Income tax payable
Total Current liabilities	1,881,727	1,039,027
Non-current liabilities:
Operating lease liabilities-noncurrent	395,045	422,948
Promissory note	87,500	87,500
Total Non-current liabilities	482,545	510,448
Total Liabilities	2,364,272	1,549,475
Commitments and contingencies
Stockholder's Equity
Preferred stock, $0.001 par value; 5,000,000 shares authorized; 832,000 shares issued and outstanding as of March 31, 2022 and December 31, 2021	832	832
Common stock, $0.001 par value; 70,000,000 shares authorized; 25,546,810 and 25,556,810 shares issued and outstanding as of March 31, 2022 and December 31, 2021, respectively.	25,547	25,557
Additional Paid-In Capital	3,873,719	3,821,709
Accumulated other comprehensive loss	14,532	10,347
Accumulated deficits	(4,040,614)	(3,865,450)
Total Vivic Corp. shareholders' (deficit) equity	(125,984)	(7,005)
Non-controlling interest	(101,635)	(90,386)
Total Stockholders' (deficit) Equity	(227,619)	(97,391)
Total Liabilities and stockholder's equity	$ 2,136,653	$ 1,452,084

XML

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Mar. 31, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Preferred Stock, par value	$ 0.001	$ 0.001
Preferred Stock, Shares Authorized	5,000,000	5,000,000
Preferred Stock, Shares Issued	832,000	832,000
Preferred Stock, Shares Outstanding	832,000	832,000
Common Stock, par value	$ 0.001	$ 0.001
Common Stock, Shares Authorized	70,000,000	70,000,000
Common Stock, Shares Issued	25,546,810	25,556,810
Common Stock, Shares Outstanding	25,546,810	25,556,810

XML

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Income Statement [Abstract]
Revenues, net	$ 1,058	$ 3,011
Cost of revenue	(950)
Gross profit	108	3,011
Operating expenses
General and administrative expenses	(232,555)	(226,440)
Total operating expenses	(232,555)	(226,440)
Loss from operations	(232,447)	(223,429)
Other income (expense):
Investment gain (loss)	61,578	(11,755)
Interest income	132	46
Interest expense	(13,702)	(1,037)
Loss on loan settlement	(2,000)	(661,132)
Other income	35
Total other income (expense)	(46,043)	673,878
Income (loss) before income taxes	186,404	897,307
Income tax expense	(9)
NET INCOME (LOSS)	(186,413)	(897,307)
Net loss attributable to non-controlling interest	(11,249)	(11,146)
Net (loss) income attributable to Vivic Corp.	(175,164)	(886,161)
Other comprehensive loss:
Foreign currency translation loss	4,185	(5,488)
COMPREHENSIVE (LOSS) INCOME	$ (170,979)	$ (891,649)
Net income (loss) per share - Basic	$ (0.01)	$ (0.06)
Net income (loss) per share - Diluted	$ (0.01)	$ (0.06)
Weighted average common shares outstanding - Basic	25,557,254	24,605,623
Weighted average common shares outstanding - Diluted	25,557,254	24,605,623

XML

CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' (DEFICIT) EQUITY - USD ($)	Preferred Stock	Common Stock	Additional Paid-In Capital	Accumulated Other Comprehensive (Loss) Income	Accumulated Deficit	Noncontrolling Interest	Total
Beginning Balance at Dec. 31, 2020	$ 832	$ 24,470	$ 1,341,155	$ (2,240)	$ (1,300,505)	$ 84,298	$ 148,010
Beginning Balance, Shares at Dec. 31, 2020	832,000	24,470,166
Proceeds from issuance of common stock		$ 469	1,124,862				1,125,331
Proceeds from issuance of common stock, shares		468,888
Foreign currency translation adjustment				(5,488)			(5,488)
Net Income (loss)					(886,161)	(11,146)	(897,307)
Ending Balance at Mar. 31, 2021	$ 832	$ 24,939	2,466,017	(7,728)	(2,186,666)	73,152	370,546
Ending Balance, Shares at Mar. 31, 2021	832,000	24,939,054
Beginning Balance at Dec. 31, 2021	$ 832	$ 25,557	3,821,709	10,347	(3,865,450)	(90,386)	(97,391)
Beginning Balance, Shares at Dec. 31, 2021	832,000	25,556,810
Cancellation of shares		$ (60)	60
Cancellation of shares, shares		(60,000)
Shares issued for loan repayment		$ 50	51,950				52,000
Shares issued for loan repayment, shares		50,000
Foreign currency translation adjustment				4,185			4,185
Net Income (loss)					(175,164)	(11,249)	(186,413)
Ending Balance at Mar. 31, 2022	$ 832	$ 25,547	$ 3,873,719	$ 14,532	$ (4,040,614)	$ (101,635)	$ (227,619)
Ending Balance, Shares at Mar. 31, 2022	832,000	25,546,810

XML

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Cash flows from Operating Activities
Net loss	$ (186,413)	$ (897,307)
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation of property, plant and equipment	1,858	10,136
Amortization of right-of-use assets	27,246
Bad debt direct write-off and provision	11,125
Interest expense	5,742	774
Investment loss	(60,605)	11,755
Loss on loan settlement	2,000	661,132
Change in operating assets and liabilities:
Accounts receivable	(2)
Deposits and prepayments	(112,789)	(206,583)
Other receivable	101,552	(47,277)
Inventory	(18,762)
Other non-current assets	(24,178)
Deferred revenue	932,936	6,104
Accounts payable	(3,255)	(50)
Accrued liabilities and other payable	(18,126)	(15,123)
Lease liability	(1,714)	(1,488)
Net cash used in operating activities	656,615	(477,927)
Cash flows from investing activities:
Purchase of financial assets available for sale	(236,478)
Investment in a subsidiary		(55,060)
Disposal of subsidiary	121,796
Purchase of property, plant and equipment
Net cash used in investing activities	(114,682)	(55,060)
Cash flows from Financing Activities
Proceeds from related parties		3,478
Repayment to related parties	(74,840)
Proceeds from loans	50,000	464,199
Proceeds from third party loan		152,588
Net cash provided in financing activities	(24,840)	620,265
Effect on exchange rate change on cash and cash equivalents	5,543	(4,637)
NET CHANGE IN CASH AND CASH EQUIVALENTS	522,636	82,641
BEGINNING OF PERIOD/YEAR	80,306	562,503
END OF PERIOD/YEAR	602,942	645,144
SUPPLEMENTAL CASH FLOW INFORMATION:
Interest	95	263
Income Taxes	9
Supplemental Disclosure of Non Cash Flows Information:
Common stock issued for loan settlement	$ 52,000	$ 1,125,331

XML

ORGANIZATION AND BUSINESS BACKGROUND

3 Months Ended

Mar. 31, 2022

Accounting Policies [Abstract]

ORGANIZATION AND BUSINESS BACKGROUND

NOTE－1 ORGANIZATION AND BUSINESS BACKGROUND

VIVIC CORP. (the "Company" or “VIVC”) is a corporation established under the corporation laws in the State of Nevada on February 16, 2017. Starting December 27, 2018, associated with the change of management, we expanded our business operations to include new types of marine tourism. In addition, the Company started making efforts to enter into the businesses of constructing marinas and constructing yachts in the mainland China under the brand of Monte Fino. Monte Fino is a famous yacht brand owned by Taiwan Kha Shing Yacht Company, one of the leading yacht manufacturers in the world.

It has also developed and operates “Joy Wave”(享浪)，an online yacht rental and leisure service business in Guangzhou, China. In the mainland China and Taiwan, primarily through the Internet, we provide third-party yacht and marine tourism services. This marine tourism involves high quality coastal tourism attractions in Taiwan and China including Hainan, Guangdong, Xiamen, and Quanzhou.

In the field of marine tourism, the number of yachts that can be rented has been increased through a yacht-sharing program system, which can provide services for more customers.

The Company also started to develop energy-saving yacht engines. Because it has advanced technology, it can achieve up to 50% energy efficiency. This energy-saving and innovative technology may be applied to new energy-saving engines for yachts. This innovative technology may bring favorable changes to the yachting industry and promote a low-carbon tourism for global environmental protection.

On March 22, 2022, the Company sold its shares of Ocean Way and its subsidiaries to a third-party for a total of $169,844 (RMB1,080,000).

Description of subsidiaries

Name		Place of incorporation and kind of legal entity	Principal activities and place of operation	Particulars of issued/ registered share capital	Effective interest held
Vivic Corporation (Hong Kong) Co., Limited	Hong Kong		Investment holding and tourism consultancy service	52,000,000 ordinary shares for HK$2,159,440	100%
Khashing Yachts Industry (Guangdong) Limited (formerly Guangzhou Monte Fino Yacht Company Limited)	The People’s Republic of China		Tourism consultancy service and provision of yacht service	Registered: RMB10,000,000 Paid up: RMB4,236,132	100%
Guangzhou Hysoul Yacht Company Limited	The People’s Republic of China		Provision of yacht service	Registered: RMB10,000,000 Paid up: RMB1,055,000	100%
Zhejiang Jiaxu Yacht Company Limited	The People’s Republic of China		Provision of yacht service	Registered: RMB30,000,000 Paid up: RMB1,030,000	70%

VIVC and its subsidiaries are hereinafter referred to as (the “Company”).

XML

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

3 Months Ended

Mar. 31, 2022

Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE－2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The accompanying condensed consolidated financial statements reflect the application of certain significant accounting policies as described in this note and elsewhere in the accompanying condensed consolidated financial statements and notes.

l Basis of presentation

These accompanying condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”).

 The accompanying unaudited condensed financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Annual Report on Form 10-K filed by the Company with the SEC on May 16, 2022.

l Use of estimates

In preparing these condensed consolidated financial statements, management makes estimates and assumptions that affect the reported amounts of assets and liabilities in the balance sheet and revenues and expenses during the periods reported. Actual results may differ from these estimates.

l Basis of consolidation

The condensed consolidated financial statements include the financial statements of VIVC and its subsidiaries. All significant inter-company balances and transactions within the Company have been eliminated upon consolidation.

l Cash and cash equivalents

Cash and cash equivalents consist primarily of cash in readily available checking and saving accounts. Cash equivalents consist of highly liquid investments that are readily convertible to cash and that mature within three months or less from the date of purchase. The carrying amounts approximate fair value due to the short maturities of these instruments.

l Accounts receivable

Accounts receivable are recorded at the invoiced amount and do not bear interest, which are due within contractual payment terms, generally 30 to 90 days from completion of service. Credit is extended based on evaluation of a customer's financial condition, the customer credit-worthiness and their payment history. Accounts receivable outstanding longer than the contractual payment terms are considered past due. Past due balances over 90 days and over a specified amount are reviewed individually for collectability. At the end of fiscal year, the Company specifically evaluates individual customer’s financial condition, credit history, and the current economic conditions to monitor the progress of the collection of accounts receivables. The Company will consider the allowance for doubtful accounts for any estimated losses resulting from the inability of its customers to make required payments. For the receivables that are past due or not being paid according to payment terms, the appropriate actions are taken to exhaust all means of collection, including seeking legal resolution in a court of law. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Company does not have any off-balance-sheet credit exposure related to its customers. As of March 31, 2022 and December 31, 2021, there was no allowance for doubtful accounts.

l Property, plant and equipment

Property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses, if any. Depreciation is calculated on the straight-line basis over the following expected useful lives from the date on which they become fully operational and after taking into account their estimated residual values:

	Expected useful life
Service yacht	10 years
Motor vehicle	5 years
Office equipment	5 years

Expenditure for repairs and maintenance is expensed as incurred. When assets have retired or sold, the cost and related accumulated depreciation are removed from the accounts and any resulting gain or loss is recognized in the results of operations.

l Intangible assets, net

Intangible assets are stated at cost less accumulated amortization. Intangible assets represented the trademark registered in the PRC and purchased software which are amortized on a straight-line basis over a useful life of 10 years.

The Company follows ASC Topic 350 in accounting for intangible assets, which requires impairment losses to be recorded when indicators of impairment are present and the undiscounted cash flows estimated to be generated by the assets are less than the assets’ carrying amounts.

l Revenue recognition

In accordance with Accounting Standard Codification (“ASC”) Topic 606, “Revenue from Contracts with Customers”, the Company recognizes revenues when goods or services are transferred to customers in an amount that reflects the consideration which the Company expects to receive in exchange for those goods or services. In determining when and how revenues are recognized from contracts with customers, the Company performs the following five-step analysis: (i) identification of contract with customer; (ii) determination of performance obligations; (iii) measurement of the transaction price; (iv) allocation of the transaction price to the performance obligations, and (v) recognition of revenues when (or as) the Company satisfies each performance obligation. The Company derives revenues from the processing, distribution, and sale of its products.

l Comprehensive income

ASC Topic 220, “Comprehensive Income”, establishes standards for reporting and display of comprehensive income, its components and accumulated balances. Comprehensive income as defined includes all changes in equity during a period from non-owner sources. Accumulated other comprehensive income, as presented in the accompanying condensed consolidated statement of stockholders’ equity, consists of changes in unrealized gains and losses on foreign currency translation. This comprehensive income is not included in the computation of income tax expense or benefit.

l Income taxes

Income taxes are determined in accordance with the provisions of ASC Topic 740, “Income Taxes” (“ASC 740”). Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted income tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Any effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.

ASC 740 prescribes a comprehensive model for how companies should recognize, measure, present, and disclose in their financial statements uncertain tax positions taken or expected to be taken on a tax return. Under ASC 740, tax positions must initially be recognized in the financial statements when it is more likely than not the position will be sustained upon examination by the tax authorities. Such tax positions must initially and subsequently be measured as the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the tax authority assuming full knowledge of the position and relevant facts.

The Company is subject to tax in local and foreign jurisdiction. As a result of its business activities, the Company files tax returns that are subject to examination by the relevant tax authorities.

l Foreign currencies translation

Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transaction. Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency using the applicable exchange rates at the balance sheet dates. The resulting exchange differences are recorded in the statement of operations.

The reporting currency of the Company is United States Dollar ("US$") and the accompanying consolidated financial statements have been expressed in US$. In addition, the Company and subsidiaries are operating in PRC and Hong Kong maintain their books and record in their local currency, Renminbi (“RMB”) and Hong Kong dollars (“HK$”), which is a functional currency as being the primary currency of the economic environment in which their operations are conducted. In general, for consolidation purposes, assets and liabilities of its subsidiaries whose functional currency is not US$ are translated into US$, in accordance with ASC Topic 830-30, “ Translation of Financial Statement”, using the exchange rate on the balance sheet date. Revenues and expenses are translated at average rates prevailing during the year. The gains and losses resulting from translation of financial statements of foreign subsidiaries are recorded as a separate component of accumulated other comprehensive income within the statements of changes in stockholder’s equity.

Translation of amounts from RMB and HK$ into US$ has been made at the following exchange rates for the period ended March 31, 2022 and December 31, 2021:

	March 31, 2022	December 31, 2021
Period/year-end RMB:US$ exchange rate	6.3431	6.3588
Period/annual average RMB:US$ exchange rate	6.3481	6.4499
Period/year-end HK$:US$ exchange rate	7.8306	7.7971
Period/annual average HK$:US$ exchange rate	7.8050	7.7723
Period/year-end TWD:US$ exchange rate	28.6328	27.6879
Period/annual average TWD:US$ exchange rate	27.9955	27.9194

l Lease

At the inception of an arrangement, the Company determines whether the arrangement is or contains a lease based on the unique facts and circumstances present. Leases with a term greater than one year are recognized on the balance sheet as right-of-use assets, lease liabilities and long-term lease liabilities. The Company has elected not to recognize on the balance sheet leases with terms of one year or less. Operating lease liabilities and their corresponding right-of-use assets are recorded based on the present value of lease payments over the expected remaining lease term. However, certain adjustments to the right-of-use asset may be required for items such as prepaid or accrued lease payments. The interest rate implicit in lease contracts is typically not readily determinable. As a result, the Company utilizes its incremental borrowing rates, which are the rates incurred to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment.

In accordance with the guidance in ASC 842, components of a lease should be split into three categories: lease components (e.g. land, building, etc.), non-lease components (e.g. common area maintenance, consumables, etc.), and non-components (e.g. property taxes, insurance, etc.). Subsequently, the fixed and in-substance fixed contract consideration (including any related to non-components) must be allocated based on the respective relative fair values to the lease components and non-lease components.

The Company made the policy election to not separate lease and non-lease components. Each lease component and the related non-lease components are accounted for together as a single component.

l Noncontrolling interest

The Company accounts for noncontrolling interest in accordance with ASC Topic 810-10-45, which requires the Company to present noncontrolling interests as a separate component of total shareholders’ equity on the consolidated balance sheets and the consolidated net loss attributable to the its noncontrolling interest be clearly identified and presented on the face of the consolidated statements of operations and comprehensive loss.

l Net loss per share

The Company calculates net loss per share in accordance with ASC Topic 260, “Earnings per Share.” Basic income per share is computed by dividing the net income by the weighted-average number of common shares outstanding during the period. Diluted income per share is computed similar to basic income per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common stock equivalents had been issued and if the additional common shares were dilutive.

l Concentrations and credit risk

The Company’s principal financial instruments subject to potential concentration of credit risk are cash and cash equivalents, including amounts held in money market accounts. The Company places cash deposits with a federally insured financial institution. The Company maintains its cash at banks and financial institutions it considers to be of high credit quality; however, the Company’s domestic cash deposits may at times exceed the Federal Deposit Insurance Corporation’s insured limit. Balances in excess of federally insured limitations may not be insured. The Company has not experienced losses on these accounts, and management believes that the Company is not exposed to significant risks on such accounts.

l Fair value of financial instruments

The carrying value of the Company’s financial instruments (excluding short-term bank borrowing and note payable): cash and cash equivalents, accounts and retention receivable, prepayments and other receivables, accounts payable, income tax payable, amount due to a related party, other payables and accrued liabilities approximate at their fair values because of the short-term nature of these financial instruments.

Management believes, based on the current market prices or interest rates for similar debt instruments, the fair value of note payable approximate the carrying amount.

The Company also follows the guidance of the ASC Topic 820-10, “Fair Value Measurements and Disclosures” ("ASC 820-10"), with respect to financial assets and liabilities that are measured at fair value. ASC 820-10 establishes a three-tier fair value hierarchy that prioritizes the inputs used in measuring fair value as follows:

● Level 1: Inputs are based upon unadjusted quoted prices for identical instruments traded in active markets;

● Level 2: Inputs are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active; and

● Level 3: Inputs are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. The fair values are therefore determined using model-based techniques, including option pricing models and discounted cash flow models.

Fair value estimates are made at a specific point in time based on relevant market information about the financial instrument. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates.

l Recent accounting pronouncements

The Company has reviewed all recently issued, but not yet effective, accounting pronouncements and does not believe the future adoption of any such pronouncements may be expected to cause a material impact on its financial condition or the results of its operations.

XML

GOING CONCERN UNCERTAINTY

3 Months Ended

Mar. 31, 2022

Notes to Financial Statements

GOING CONCERN UNCERTAINTY

NOTE－3 GOING CONCERN UNCERTAINTIES

The accompanying condensed consolidated financial statements have been prepared using the going concern basis of accounting, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business.

The Company has suffered from net loss of $186,413 during the three months ended March 31, 2022. Also, as of March 31, 2022, the Company has incurred the accumulated deficits of $4,040,614 and working capital deficit of $564,049. In addition, with respect to the ongoing and evolving coronavirus (COVID-19) outbreak, which was designated as a pandemic by the World Health Organization on March 11, 2020, the outbreak has caused substantial disruption in international economies and global trades and if repercussions of the outbreak are prolonged, could have a significant adverse impact on the Company’s business.

The continuation of the Company as a going concern through May 23, 2023   is dependent upon the continued financial support from its shareholders. Management believes the Company is currently pursuing additional financing for its operations. However, there is no assurance that the Company will be successful in securing sufficient funds to sustain the operations.

These and other factors raise substantial doubt about the Company’s ability to continue as a going concern. These condensed consolidated financial statements do not include any adjustments to reflect the possible future effects on the recover ability and classification of assets and liabilities that may result in the Company not being able to continue as a going concern.

XML

FINANCIAL ASSETS AVAILABLE FOR SALE

3 Months Ended

Mar. 31, 2022

Notes to Financial Statements

FINANCIAL ASSETS AVAILABLE FOR SALE

NOTE－4 FINANCIAL ASSETS AVAILABLE FOR SALE

From time to time, the Company deposited in and withdraw from a wealth management account, run by Industrial and Commercial Bank of China (“ICBC”). Based on the account policy, the account only invests in liquid assets such as senior government and corporate bonds and assumes to be with low-risk. The interest accrues daily. The Company can withdraw cash at any business day. As a result, the balance on the account varies everyday. As of March 31, 2022, the balance is $236,478.

XML

LONG-TERM INVESTMENT

3 Months Ended

Mar. 31, 2022

Investments, All Other Investments [Abstract]

LONG-TERM INVESTMENT

NOTE－5 LONG-TERM INVESTMENT

On January 3, 2021, the Company signed an investment agreement with Shenzhen Ocean Way Yachts Services Co., Limited (“Ocean Way”) to invest a total of $235,895(RMB1,500,000), which is equivalent to 60% of equity ownership. However, based on the agreements, Shaorong Zhuang, the other shareholder has the right to assign the majority of directors in the board and controls Ocean Way. As a result, Ocean Way is treated as an investment rather than subsidiary. As of December 31, 2021, a total of $122,665(RMB780,000) has been invested in Ocean Way. In the year ended December 31, 2021, an investment loss of $61,474 has been recognized. On March 22,2022, the Company sold Ocean Way for a total proceed of $169,844 (RMB1,080,000). In the three months ended March 31, 2022, an investment gain of $61,578 has been recognized.

XML

PROPERTY, PLANT AND EQUIPMENT

3 Months Ended

Mar. 31, 2022

Property, Plant and Equipment [Abstract]

PROPERTY, PLANT AND EQUIPMENT

NOTE－6 PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment consisted of the following:

	March 31, 2022		December 31, 2021
At cost:
Leasehold improvements	$	39,413	$	39,316
Motor vehicle		57,657		57,514
Office equipment		8,965		9,048
		106,035		105,878
Less: accumulated depreciation		(17,353)		(13,521)
	$	88,682	$	92,357

Depreciation expense for the three months ended March 31, 2022 and 2021 were $1,858 and $10,136, respectively.

XML

DEPOSITS AND PREPAYMENTS

3 Months Ended

Mar. 31, 2022

Notes to Financial Statements

DEPOSITS AND PREPAYMENTS

NOTE－7 DEPOSITS AND PREPAYMENTS

Deposits and prepayments consisted of the following:

	March 31, 2022		December 31, 2021
Deposits	$	-	$	-
Prepayments (a)		206,675		105,011
	$	206,675	$	105,011

(a) The amount will be recognized as expenses in next twelve months.

XML

ACCRUED LIABILITIES AND OTHER PAYABLE

3 Months Ended

Mar. 31, 2022

Payables and Accruals [Abstract]

ACCRUED LIABILITIES AND OTHER PAYABLE

NOTE－8 ACCRUED LIABILITIES AND OTHER PAYABLE

Accrued expenses and other payable consisted of the following:

	March 31, 2022		December 31, 2021
Accrued expenses	$	89,287	$	47,018
Other payable (a)		66,186		156,829
	$	155,473	$	203,847

(a) The amount will be settled in next twelve months.

XML

LEASE LIABILITY

3 Months Ended

Mar. 31, 2022

Debt Disclosure [Abstract]

LEASE LIABILITY

NOTE－9 LEASES

The Company purchased a service vehicle under a financing lease arrangement of a total amount of $18,146 (RMB117,043) starting from August 1, 2019, with the effective interest rate of 2.25% per annum, due through May 1, 2022, with principal and interest payable monthly.

The Company leases premises for offices and dock for operating under non-cancelable operating leases with initial terms of 5 years and the effective interest rate of 6% per annum. Operating lease payments are expended over the term of lease. The Company leases don’t include options to extend nor any restrictions or covenants. Under the terms of the lease agreements, the Company has no legal or contractual asset retirement obligations at the end of the lease.

Supplemental balance sheet information related to leases as of March 31, 2022 and December 31, 2021 are as follows:

	March 31, 2022		December 31, 2021
Right of use assets	$	508,285	$	534,231
Current portion	$	177,958	$	141,725
Non-current portion		395,045		422,948
Total	$	573,003	$	564,673

The following table summarizes the maturity of lease liabilities under operating leases as of March 31, 2022:

For the twelve months ending March 31 ,	Operating Leases
2023		177,958
2024		152,422
2025		155,093
Thereafter		87,530
Total lease payments		573,003

XML

PROMISSORY NOTE

3 Months Ended

Mar. 31, 2022

Debt Disclosure [Abstract]

PROMISSORY NOTE

NOTE－10 PROMISSORY NOTE

Promissory note represented the U.S. Small Business Administration, an Agency of the U.S. Government authorized a loan to the Company which bears interest at the rate of 3.75% per annum and will become repayable within 30 years, from the date of draw down. This loan is secured by all tangible and intangible personal property, including, but not limited to: (a) inventory, (b) equipment, (c) instruments, (d) chattel paper, (e) receivables, (h) deposit accounts, (i) commercial tort claims and (j) general intangibles. The loan was borrowed on July 1, 2020 and the initial installment repayment date begins Twelve (12) months from the date of the promissory Note and has been extended for 30 months. As a result, the Company has not made any repayment. Total promissory note recorded in balance were $87,500 at March 31, 2022 and December 31, 2021.   The accrued interest expense is $830 for the three months ended March 31, 2022 and 2021, respectively.

XML

STOCKHOLDERS' (DEFICIT) EQUITY

3 Months Ended

Mar. 31, 2022

Equity [Abstract]

STOCKHOLDERS' (DEFICIT) EQUITY

NOTE－11 SHAREHOLDERS’ (DEFICIT) EQUITY

Authorized Shares

The Company’s authorized shares are 5,000,000 preferred shares and 70,000,000 common shares with a par value of $0.001 per share.

Preferred Shares

As of March 31, 2022 and December 31, 2021, the Company had a total of 832,000 shares of preferred stock issued and outstanding.

Common Shares

On February 15, 2022, the Company issued 50,000 shares of common stock to settle a debt in the amount of $50,000, at an agreed conversion price of $1.0 per share. A loss of $2,000 on the loan settlement has been recognized in the three months ended March 31, 2022.

On March 22, 2022, the Company canceled 60,000 shares of common stock issued to predecessor CFO based on mutual agreements.

As of March 31, 2022 and December 31, 2021, the Company had a total of 25,546,810 and 25,556,810 shares of its common stock issued and outstanding, respectively  .

XML

NET LOSS PER SHARE OF COMMON STOCK

3 Months Ended

Mar. 31, 2022

Earnings Per Share [Abstract]

NET LOSS PER SHARE OF COMMON STOCK

NOTE－12 NET LOSS PER SHARE OF COMMON STOCK

Basic net (loss) income per share is computed using the weighted average number of common shares outstanding during the year. The dilutive effect of potential common shares outstanding is included in diluted net (loss) income per share. The following table sets forth the computation of basic and diluted net (loss) income per share for the three months ended March 31, 2022 and 2021:

	For the three months ended March 31,
	2022		2021
Net (loss) income for basic and diluted attributable to Vivic Corp.	$	(186,413)	$	(897,307)
Weighted average common stock outstanding - Basic and Diluted		25,557,254		24,605,623
Net (loss) income per share of common stock – basic and diluted	$	(0.01)	$	(0.06)

XML

RELATED PARTY TRANSACTIONS

3 Months Ended

Mar. 31, 2022

Related Party Transactions [Abstract]

RELATED PARTY TRANSACTIONS

NOTE－13 RELATED PARTY TRANSACTIONS

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 shareholders. 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 shareholders of the Company, which were unsecured, interest-free and had no fixed terms of repayments. Imputed interests from related parties’ loan are not significant.The balance of due to related parties was $394,908 and 469,748 as of March 31, 2022 and December 31, 2021 .

The Company paid $0 and $9,000 consulting fee to Honetech Inc.,   its prefered stock controlling shareholder during the three months ended March 31, 2022 and 2021, respectively. Each Preferred Share is entitled to fifty (50) votes

The Company paid $0 and $46,003 consulting fee to Go Right Holdings Limited  ., who owns approximately 22% of the outstanding comon stocks on March 31, 2922 during the three months ended March 31, 2022 and 2021, respectively.

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

XML

COMMITMENTS AND CONTINGENCIES

3 Months Ended

Mar. 31, 2022

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

NOTE－14 COMMITMENTS AND CONTINGENCIES

As of March 31, 2022 and December 31, 2021, the Company has no material commitments and contingencies.

XML

SUBSEQUENT EVENTS

3 Months Ended

Mar. 31, 2022

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

NOTE－15 SUBSEQUENT EVENTS

In accordance with ASC Topic 855, “Subsequent Events”, which establishes general standards of accounting for and disclosure of events that occur after the balance sheet date but before financial statements are issued, the Company has evaluated all events or transactions that occurred March 31, 2022, up through May 23, 2022 the Company presented the condensed consolidated financial statements.

XML

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

3 Months Ended

Mar. 31, 2022

Accounting Policies [Abstract]

Basis of presentation

l Basis of presentation

These accompanying condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”).

 The accompanying unaudited condensed financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Annual Report on Form 10-K filed by the Company with the SEC on May 16, 2022.

Use of Estimates

l Use of estimates

In preparing these condensed consolidated financial statements, management makes estimates and assumptions that affect the reported amounts of assets and liabilities in the balance sheet and revenues and expenses during the periods reported. Actual results may differ from these estimates.

Basis of Consolidation

l Basis of consolidation

The condensed consolidated financial statements include the financial statements of VIVC and its subsidiaries. All significant inter-company balances and transactions within the Company have been eliminated upon consolidation.

Cash and Cash Equivalents

l Cash and cash equivalents

Cash and cash equivalents consist primarily of cash in readily available checking and saving accounts. Cash equivalents consist of highly liquid investments that are readily convertible to cash and that mature within three months or less from the date of purchase. The carrying amounts approximate fair value due to the short maturities of these instruments.

Accounts receivable

l Accounts receivable

Accounts receivable are recorded at the invoiced amount and do not bear interest, which are due within contractual payment terms, generally 30 to 90 days from completion of service. Credit is extended based on evaluation of a customer's financial condition, the customer credit-worthiness and their payment history. Accounts receivable outstanding longer than the contractual payment terms are considered past due. Past due balances over 90 days and over a specified amount are reviewed individually for collectability. At the end of fiscal year, the Company specifically evaluates individual customer’s financial condition, credit history, and the current economic conditions to monitor the progress of the collection of accounts receivables. The Company will consider the allowance for doubtful accounts for any estimated losses resulting from the inability of its customers to make required payments. For the receivables that are past due or not being paid according to payment terms, the appropriate actions are taken to exhaust all means of collection, including seeking legal resolution in a court of law. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Company does not have any off-balance-sheet credit exposure related to its customers. As of March 31, 2022 and December 31, 2021, there was no allowance for doubtful accounts.

Property, plant and equipment

l Property, plant and equipment

Property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses, if any. Depreciation is calculated on the straight-line basis over the following expected useful lives from the date on which they become fully operational and after taking into account their estimated residual values:

	Expected useful life
Service yacht	10 years
Motor vehicle	5 years
Office equipment	5 years

Expenditure for repairs and maintenance is expensed as incurred. When assets have retired or sold, the cost and related accumulated depreciation are removed from the accounts and any resulting gain or loss is recognized in the results of operations.

Intangible assets, net

l Intangible assets, net

Intangible assets are stated at cost less accumulated amortization. Intangible assets represented the trademark registered in the PRC and purchased software which are amortized on a straight-line basis over a useful life of 10 years.

The Company follows ASC Topic 350 in accounting for intangible assets, which requires impairment losses to be recorded when indicators of impairment are present and the undiscounted cash flows estimated to be generated by the assets are less than the assets’ carrying amounts.

Revenue Recognition

l Revenue recognition

In accordance with Accounting Standard Codification (“ASC”) Topic 606, “Revenue from Contracts with Customers”, the Company recognizes revenues when goods or services are transferred to customers in an amount that reflects the consideration which the Company expects to receive in exchange for those goods or services. In determining when and how revenues are recognized from contracts with customers, the Company performs the following five-step analysis: (i) identification of contract with customer; (ii) determination of performance obligations; (iii) measurement of the transaction price; (iv) allocation of the transaction price to the performance obligations, and (v) recognition of revenues when (or as) the Company satisfies each performance obligation. The Company derives revenues from the processing, distribution, and sale of its products.

Comprehensive income

l Comprehensive income

ASC Topic 220, “Comprehensive Income”, establishes standards for reporting and display of comprehensive income, its components and accumulated balances. Comprehensive income as defined includes all changes in equity during a period from non-owner sources. Accumulated other comprehensive income, as presented in the accompanying condensed consolidated statement of stockholders’ equity, consists of changes in unrealized gains and losses on foreign currency translation. This comprehensive income is not included in the computation of income tax expense or benefit.

Income Taxes

l Income taxes

Income taxes are determined in accordance with the provisions of ASC Topic 740, “Income Taxes” (“ASC 740”). Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted income tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Any effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.

ASC 740 prescribes a comprehensive model for how companies should recognize, measure, present, and disclose in their financial statements uncertain tax positions taken or expected to be taken on a tax return. Under ASC 740, tax positions must initially be recognized in the financial statements when it is more likely than not the position will be sustained upon examination by the tax authorities. Such tax positions must initially and subsequently be measured as the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the tax authority assuming full knowledge of the position and relevant facts.

The Company is subject to tax in local and foreign jurisdiction. As a result of its business activities, the Company files tax returns that are subject to examination by the relevant tax authorities.

Foreign currencies translation

l Foreign currencies translation

Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transaction. Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency using the applicable exchange rates at the balance sheet dates. The resulting exchange differences are recorded in the statement of operations.

The reporting currency of the Company is United States Dollar ("US$") and the accompanying consolidated financial statements have been expressed in US$. In addition, the Company and subsidiaries are operating in PRC and Hong Kong maintain their books and record in their local currency, Renminbi (“RMB”) and Hong Kong dollars (“HK$”), which is a functional currency as being the primary currency of the economic environment in which their operations are conducted. In general, for consolidation purposes, assets and liabilities of its subsidiaries whose functional currency is not US$ are translated into US$, in accordance with ASC Topic 830-30, “ Translation of Financial Statement”, using the exchange rate on the balance sheet date. Revenues and expenses are translated at average rates prevailing during the year. The gains and losses resulting from translation of financial statements of foreign subsidiaries are recorded as a separate component of accumulated other comprehensive income within the statements of changes in stockholder’s equity.

Translation of amounts from RMB and HK$ into US$ has been made at the following exchange rates for the period ended March 31, 2022 and December 31, 2021:

	March 31, 2022	December 31, 2021
Period/year-end RMB:US$ exchange rate	6.3431	6.3588
Period/annual average RMB:US$ exchange rate	6.3481	6.4499
Period/year-end HK$:US$ exchange rate	7.8306	7.7971
Period/annual average HK$:US$ exchange rate	7.8050	7.7723
Period/year-end TWD:US$ exchange rate	28.6328	27.6879
Period/annual average TWD:US$ exchange rate	27.9955	27.9194

Leases

l Lease

At the inception of an arrangement, the Company determines whether the arrangement is or contains a lease based on the unique facts and circumstances present. Leases with a term greater than one year are recognized on the balance sheet as right-of-use assets, lease liabilities and long-term lease liabilities. The Company has elected not to recognize on the balance sheet leases with terms of one year or less. Operating lease liabilities and their corresponding right-of-use assets are recorded based on the present value of lease payments over the expected remaining lease term. However, certain adjustments to the right-of-use asset may be required for items such as prepaid or accrued lease payments. The interest rate implicit in lease contracts is typically not readily determinable. As a result, the Company utilizes its incremental borrowing rates, which are the rates incurred to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment.

In accordance with the guidance in ASC 842, components of a lease should be split into three categories: lease components (e.g. land, building, etc.), non-lease components (e.g. common area maintenance, consumables, etc.), and non-components (e.g. property taxes, insurance, etc.). Subsequently, the fixed and in-substance fixed contract consideration (including any related to non-components) must be allocated based on the respective relative fair values to the lease components and non-lease components.

The Company made the policy election to not separate lease and non-lease components. Each lease component and the related non-lease components are accounted for together as a single component.

Noncontrolling interest

l Noncontrolling interest

The Company accounts for noncontrolling interest in accordance with ASC Topic 810-10-45, which requires the Company to present noncontrolling interests as a separate component of total shareholders’ equity on the consolidated balance sheets and the consolidated net loss attributable to the its noncontrolling interest be clearly identified and presented on the face of the consolidated statements of operations and comprehensive loss.

Net loss per share

l Net loss per share

The Company calculates net loss per share in accordance with ASC Topic 260, “Earnings per Share.” Basic income per share is computed by dividing the net income by the weighted-average number of common shares outstanding during the period. Diluted income per share is computed similar to basic income per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common stock equivalents had been issued and if the additional common shares were dilutive.

Concentrations and Credit Risk

l Concentrations and credit risk

The Company’s principal financial instruments subject to potential concentration of credit risk are cash and cash equivalents, including amounts held in money market accounts. The Company places cash deposits with a federally insured financial institution. The Company maintains its cash at banks and financial institutions it considers to be of high credit quality; however, the Company’s domestic cash deposits may at times exceed the Federal Deposit Insurance Corporation’s insured limit. Balances in excess of federally insured limitations may not be insured. The Company has not experienced losses on these accounts, and management believes that the Company is not exposed to significant risks on such accounts.

Fair value of financial instruments

l Fair value of financial instruments

The carrying value of the Company’s financial instruments (excluding short-term bank borrowing and note payable): cash and cash equivalents, accounts and retention receivable, prepayments and other receivables, accounts payable, income tax payable, amount due to a related party, other payables and accrued liabilities approximate at their fair values because of the short-term nature of these financial instruments.

Management believes, based on the current market prices or interest rates for similar debt instruments, the fair value of note payable approximate the carrying amount.

The Company also follows the guidance of the ASC Topic 820-10, “Fair Value Measurements and Disclosures” ("ASC 820-10"), with respect to financial assets and liabilities that are measured at fair value. ASC 820-10 establishes a three-tier fair value hierarchy that prioritizes the inputs used in measuring fair value as follows:

● Level 1: Inputs are based upon unadjusted quoted prices for identical instruments traded in active markets;

● Level 2: Inputs are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active; and

● Level 3: Inputs are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. The fair values are therefore determined using model-based techniques, including option pricing models and discounted cash flow models.

Fair value estimates are made at a specific point in time based on relevant market information about the financial instrument. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates.

Recent accounting pronouncements

l Recent accounting pronouncements

The Company has reviewed all recently issued, but not yet effective, accounting pronouncements and does not believe the future adoption of any such pronouncements may be expected to cause a material impact on its financial condition or the results of its operations.

XML

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

3 Months Ended

Mar. 31, 2022

Accounting Policies [Abstract]

Summary of Useful life of Assets

Property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses, if any. Depreciation is calculated on the straight-line basis over the following expected useful lives from the date on which they become fully operational and after taking into account their estimated residual values:

	Expected useful life
Service yacht	10 years
Motor vehicle	5 years
Office equipment	5 years

Schedule of Foreign Currency Translations

Translation of amounts from RMB and HK$ into US$ has been made at the following exchange rates for the period ended March 31, 2022 and December 31, 2021:

	March 31, 2022	December 31, 2021
Period/year-end RMB:US$ exchange rate	6.3431	6.3588
Period/annual average RMB:US$ exchange rate	6.3481	6.4499
Period/year-end HK$:US$ exchange rate	7.8306	7.7971
Period/annual average HK$:US$ exchange rate	7.8050	7.7723
Period/year-end TWD:US$ exchange rate	28.6328	27.6879
Period/annual average TWD:US$ exchange rate	27.9955	27.9194

XML

PROPERTY, PLANT AND EQUIPMENT (Tables)

3 Months Ended

Mar. 31, 2022

Property, Plant and Equipment [Abstract]

Schedule of Property Plant and Equipment

Property, plant and equipment consisted of the following:

	March 31, 2022		December 31, 2021
At cost:
Leasehold improvements	$	39,413	$	39,316
Motor vehicle		57,657		57,514
Office equipment		8,965		9,048
		106,035		105,878
Less: accumulated depreciation		(17,353)		(13,521)
	$	88,682	$	92,357

XML

DEPOSITS AND PREPAYMENTS (Tables)

3 Months Ended

Mar. 31, 2022

Deposits And Prepayments

Schedule of Deposits and prepayments

Deposits and prepayments consisted of the following:

	March 31, 2022		December 31, 2021
Deposits	$	-	$	-
Prepayments (a)		206,675		105,011
	$	206,675	$	105,011

(a) The amount will be recognized as expenses in next twelve months.

XML

ACCRUED LIABILITIES AND OTHER PAYABLE (Tables)

3 Months Ended

Mar. 31, 2022

Accrued Liabilities And Other Payable

Schedule of Accrued expenses and other payable

Accrued expenses and other payable consisted of the following:

	March 31, 2022		December 31, 2021
Accrued expenses	$	89,287	$	47,018
Other payable (a)		66,186		156,829
	$	155,473	$	203,847

(a) The amount will be settled in next twelve months.

XML

LEASE LIABILITY (Tables)

3 Months Ended

Mar. 31, 2022

Debt Disclosure [Abstract]

Schedule of Lease Liability

Supplemental balance sheet information related to leases as of March 31, 2022 and December 31, 2021 are as follows:

	March 31, 2022		December 31, 2021
Right of use assets	$	508,285	$	534,231
Current portion	$	177,958	$	141,725
Non-current portion		395,045		422,948
Total	$	573,003	$	564,673

Schedule of Maturities of Lease Liability

The following table summarizes the maturity of lease liabilities under operating leases as of March 31, 2022:

For the twelve months ending March 31 ,	Operating Leases
2023		177,958
2024		152,422
2025		155,093
Thereafter		87,530
Total lease payments		573,003

XML

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)	3 Months Ended
	Mar. 31, 2022
Service Yacht
Useful Life of Assets	10 years
Motor Vehicle
Useful Life of Assets	5 years
Office equipment
Useful Life of Assets	5 years

XML

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 2)	Mar. 31, 2022	Dec. 31, 2021
Period-End RMB:US Exchange Rate [Member]
Exchange Rate	6.3431	6.3588
Period-Average RMB:US Exchange Rate [Member]
Exchange Rate	6.3481	6.4499
Period-End HK:US Exchange Rate [Member]
Exchange Rate	7.8306	7.7971
Period-Average HK:US Exchange Rate [Member]
Exchange Rate	7.8050	7.7723
Period-End TWD:US Exchange Rate [Member]
Exchange Rate	28.6328	27.6879
Period-Average TWD:US Exchange Rate [Member]
Exchange Rate	27.9955	27.9194

XML

GOING CONCERN UNCERTAINTIES (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Going Concern Uncertainties
Net Loss	$ 186,413	$ 897,307
Accumulated Deficit	4,040,614		$ 3,865,450
Working Capital Deficit	$ 564,049

XML

PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($)	Mar. 31, 2022	Dec. 31, 2021
Property Plant and Equipment, Gross	$ 106,035	$ 105,878
Less: Accumulated Depreciation	(17,353)	(13,521)
Property Plant and Equipment, Net	88,682	92,357
Leasehold improvements [Member]
Property Plant and Equipment, Gross	39,413	39,316
Motor Vehicle
Property Plant and Equipment, Gross	57,657	57,514
Office equipment
Property Plant and Equipment, Gross	$ 8,965	$ 9,048

XML

PROPERTY, PLANT AND EQUIPMENT (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Property, Plant and Equipment [Abstract]
Depreciation Expense	$ 1,858	$ 10,136

XML

DEPOSITS AND PREPAYMENTS (Details) - USD ($)		Mar. 31, 2022	Dec. 31, 2021
Disclosure Deposits And Prepayments Details Abstract
Deposits
Prepayments	[1]	206,675	105,011
Total		$ 206,675	$ 105,011

[1] The amount will be recognized as expenses in next twelve months.

XML

ACCRUED LIABILITIES AND OTHER PAYABLE (Details) - USD ($)		Mar. 31, 2022	Dec. 31, 2021
Disclosure Accrued Liabilities And Other Payable Details Abstract
Accrued expenses		$ 89,287	$ 47,018
Other payable	[1]	66,186	156,829
Accrued liabilities and other payable		$ 155,473	$ 203,847

[1] The amount will be settled in next twelve months.

XML

LEASE LIABILITY (Details) - USD ($)	Mar. 31, 2022	Dec. 31, 2021
Debt Disclosure [Abstract]
Right of use assets	$ 508,285	$ 534,231
Current portion	177,958	141,725
Non-current portion	395,045	422,948
Total	$ 573,003	$ 564,673

XML

STOCKHOLDERS' DEFICIT (Details Narrative) - $ / shares	Mar. 31, 2022	Dec. 31, 2021
Equity [Abstract]
Preferred Stock, par value	$ 0.001	$ 0.001
Preferred Stock, Shares Authorized	5,000,000	5,000,000
Preferred Stock, Shares Issued	832,000	832,000
Preferred Stock, Shares Outstanding	832,000	832,000
Common Stock, Shares Authorized	70,000,000	70,000,000
Common Stock, Par Value	$ 0.001	$ 0.001
Common Stock, Shares Outstanding	25,546,810	25,556,810
Common Stock, Shares Issued	25,546,810	25,556,810