On August 11, Neon Punch's label A100 Entertainment officially confirmed the girl group's disbandment.
According to A100, "Unfortunately, we are no longer able to bring fans the 5-member Neon Punch despite how long many have waited for their return; we are sincerely apologetic for this. However, we have come to the conclusion to disband the team Neon Punch due to the company's financial struggles, the aftereffects of COVID19, and the fact that 2 of the members have decided to halt their promotions."
The agency continued, "For the fans who have been waiting to see Neon Punch, we promise that members Dayeon, Baekah, and Iaan will re-debut as a new team, XUM. Lastly, we would like to thank all of the Neon Punch members for working with us for the past 3 years, and we ask for everyone's support and encouragements toward the members' promotions as XUM."
Previously, Neon Punch members Dayeon, Baekah, and Iaan were scheduled to debut as a unit team under Neon Punch, while members Dohee and May were on hiatus from promotions due to personal reasons. However, as of August 11, Neon Punch have officially disbanded after debuting back in June of 2018.