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    VIVC   US9285341064

VIVIC CORP.

(VIVC)
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VIVIC : MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION (form 10-Q)

11/12/2020 | 10:22am EST

FORWARD LOOKING STATEMENTS

Statements made in this Form 10-Q 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 best 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.




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 recoverability 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 $43,233 and $99,000 for three months ended September 30, 2020 and 2019 respectively. The net revenues were generated for nine months ended September 30, 2020 and 2019 were $197,851 and $424,975 respectively. The fall in net revenues was primarily because the revenue deriving from consulting services rendered on sales and marketing of yachts decreased. It was adversely influenced by the COVID-19 pandemic outbreak in this year.

The general and administrative expenses incurred for three months ended September 30, 2020 and 2019 were $341,450 and $44,379 respectively. The general and administrative expenses incurred for nine months ended September 30, 2020 and 2019 were $875,825 and $113,629 respectively. The fundamental reasons for the rise in the general and administrative expenses were that the company expanded its operations with increased legal fee, consultancy fee on business planning and projects, and staffing when comparing the same period between 2020 and 2019.General and administrative expenses were basically the business expenses and corporate overhead.

The net loss was $302,322 and net income was $4,444 for three months ended September 30, 2020 and 2019 respectively. The net loss was $669,107 and net income was $242,837 for nine months ended September 30, 2020 and 2019 respectively. The main reason for the increased losses was that the revenue deriving from consulting services rendered on sales and marketing of yachts decreased with the harmful impact from COVID-19 pandemic outbreak in this year.

LIQUIDITY AND CAPITAL RESOURCES

As of September 30, 2020 and December 31, 2019, our total assets were $883,499 and $851,699 respectively. They did not fluctuate much. As of September 30, 2020, it covered cash and cash equivalents$276,301, accounts receivable $64,000, deposits and prepayments$172,160 and other receivables$124,983. The assets were cash and cash equivalent$562,503 and other receivables $23,656 as of December 31, 2019. As of September 30, 2020 and December 31, 2019, our total liabilities were $430,334 and $1,023,560 respectively. The significant fall in the total liabilities was mostly due to the decrease in the amounts due to related parties and accrued liabilities and other payables. The amounts due to related parties were $617,180 as of December 31, 2019 and reduced to $197,936 as of September 30, 2020. The accrued liabilities and other payables were $306,248 as of December 31, 2019 and reduced to $106,924 as of September 30, 2020. There was also a new promissory note $87,500, which was the COVID-19 economic injury disaster loan, offered by The U.S. Small Business Administration as of September 30, 2020. As of September 30, 2020 and December 31, 2019, the accumulated deficits were $990,736 and $344,788 respectively. The increase in the accumulated deficits was basically caused by the decreased net revenues, which negatively affected by the COVID-19 pandemic outbreak in this year and the increased general and administrative expenses. The total liabilities and shareholders' equity as of September 30, 2020 and December 31, 2019 were $883,499 and $851,699 respectively. They kept steady.

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Cash Flows from Operating Activities

For the period ended September 30, 2020, the net cash used in operating activities was $1,236,483, compared to the same period ended 2019, the net cash generated from operating activities was $215,219. The cash used in operating activities for nine months ended September 30, 2020 mostly were accounts receivable $64,000, deposits and prepayments $172,160, other receivables $101,327, deferred revenue $29,979, accrued liabilities and other payables $199,324 and; income tax payable $31,031. For nine months ended September 30, 2019, the main cash used in operating activities was accounts receivable $99,000 and main cash generated from operating activities was income tax payable$68,514.

Cash Flows from Investing Activities

For the same period ended September 30, 2020 and 2019, there was no cash flows from investing activities.

Cash Flows from Financing Activities

For nine months ended September 30, 2020 and 2019, the net cash generated from financing activities were $969,823 and $120,043 respectively. For nine months ended September 30, 2020, the net cash generated from financing activities mainly included repayment to related parties $419,244, proceeds from issuance of common stocks $1,308,316 and a new promissory note $87,500 which was the COVID-19 economic injury disaster loan and offered by The U.S. Small Business Administration. For nine months ended September 30, 2019, the net cash generated from financing activities included advance from related parties $95,205 and proceeds from issuance of preferred stocks $24,838.

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.

PURCHASE OF SIGNIFICANT EQUIPMENT

We do not intend to purchase any significant equipment during the next twelve months.

OFF-BALANCE SHEET ARRANGEMENTS

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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.



GOING CONCERN


The financial statements contain an explanatory paragraph expressing substantial doubt about our ability to continue operating as a going concern. The financial statements have been prepared "assuming that we will continue as a going concern," which states that we will realize our assets and satisfy any liabilities and commitments in the ordinary course of business.

© Edgar Online, source Glimpses

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