# EDGAR Filing Document

**Accession Number:** 0001932072
**File Stem:** 0001641172-25-026417
**Filing Date:** 2025-9
**Character Count:** 97370
**Document Hash:** e695b0bc5f9d715a0cca5cdded2fdc51
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001641172-25-026417.hdr.sgml**: 20250903

**ACCESSION NUMBER**: 0001641172-25-026417

**CONFORMED SUBMISSION TYPE**: 6-K

**PUBLIC DOCUMENT COUNT**: 87

**CONFORMED PERIOD OF REPORT**: 20250630

**FILED AS OF DATE**: 20250903

**DATE AS OF CHANGE**: 20250903

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** LOBO EV TECHNOLOGIES LTD
- **CENTRAL INDEX KEY:** 0001932072
- **STANDARD INDUSTRIAL CLASSIFICATION:** MOTORCYCLES, BICYCLES & PARTS [3751]
- **ORGANIZATION NAME:** 04 Manufacturing
- **EIN:** 000000000

**FILING VALUES:**
- **FORM TYPE:** 6-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-41981
- **FILM NUMBER:** 251290575

**BUSINESS ADDRESS:**
- **STREET 1:** XINWU DISTRICT
- **STREET 2:** WUXI
- **CITY:** JIANGSU
- **STATE:** F4
- **ZIP:** 214111
- **BUSINESS PHONE:** 86 510 88584252

**MAIL ADDRESS:**
- **STREET 1:** XINWU DISTRICT
- **STREET 2:** WUXI
- **CITY:** JIANGSU
- **STATE:** F4
- **ZIP:** 214111

?xml version='1.0' encoding='ASCII'?

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 6-K**

**REPORT OF FOREIGN PRIVATE ISSUER**

**PURSUANT TO RULE 13a-16 OR 15d-16**

**UNDER THE SECURITIES EXCHANGE ACT OF 1934**

**For the month of August 2025**

**Commission File Number: 001-41981**

**LOBO EV TECHNOLOGIES LTD.**

**(Registrant's Name)**

**Gemini Mansion B 901, i Park, No. 18-17 Zhenze Rd**

**Xinwu District, Wuxi, Jiangsu**

**People's Republic of China, 214111**

**(Address of Principal Executive Offices)**

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

Form 20-F ☒ Form 40-F ☐

**Information Contained in this Form 6-K Report**

Lobo EV Technologies Ltd., a British Virgin Islands exempted company (the "**Company**") is furnishing this Form 6-K to provide six-month interim financial statements.

**Financial Statements and Exhibits.**

<u>Exhibits</u>:

---

| | |
|:---|:---|
| **Exhibit** **No.** | **Description** |
| 99.1 | [Unaudited Interim Consolidated Financial Statements as of June 30, 2025 and for the Six Months Ended June 30, 2025 and 2024.](ex99-1.htm) |
| 99.2 | [Operating and Financial Review and Prospects in Connection with the Unaudited Interim Consolidated Financial Statements for the Six Months Ended June 30, 2025 and 2024.](ex99-2.htm) |

---

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

---

| | | |
|:---|:---|:---|
|  | **Lobo EV Technologies Ltd.** | **Lobo EV Technologies Ltd.** |
| Date: September 3, 2025 | By: | */s/ Huajian Xu* |
|  | Name: | Huajian Xu |
|  | Title: | Chief Executive Officer |

---

## Exhibit 99.1

?xml version='1.0' encoding='ASCII'?

**Exhibit 99.1**

LOBO EV TECHNOLOGIES LTD

UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS

(In U.S. dollars except for number of shares)

---

| | | |
|:---|:---|:---|
|  | **As of** | **As of** |
|  | **June 30, 2025** | **December 31, 2024** |
| **Assets** | | |
| Current assets: |  |  |
| Cash and cash equivalents | $1424211 | $1379434 |
| Restricted cash |  | 510156 |
| Accounts receivable, net | 2499902 | 1506894 |
| Inventories, net | 10503790 | 8592767 |
| Prepaid expenses and other current assets | 4428402 | 7689423 |
| Assets held for sale | - | 1527589 |
| **Total current assets** | **18856305** | **21206263** |
| Property and equipment, net | 795059 | 728438 |
| Intangible assets, net | 568307 | 871044 |
| Operating lease right-of-use assets, net | 882207 | 1037883 |
| Deferred tax assets | 179293 | 175960 |
| **Total Assets** | **21281171** | **24019588** |
| **Liabilities and Shareholders' Equity** |  |  |
| Current liabilities: |  |  |
| Accounts payable | $1603490 | $2217720 |
| Advances from customers | 1476711 | 1843976 |
| Other current payables | 4875499 | 1798252 |
| VAT payable | 715365 | 550439 |
| Taxes payable | 605130 | 383719 |
| Amounts due to related parties | 191739 | 712410 |
| Short-term Loan | 1635082 | 132777 |
| Convertible note payable, net | 51225 | 12820 |
| Liabilities held for sale |  | 5486344 |
| Operating lease liabilities, current | 929017 | 768544 |
| **Total current liabilities** | **12083258** | **13907001** |
| Long-term Loan | 168718 | 236513 |
| Operating lease liabilities, non-current | 415821 | 554366 |
| **Total liabilities** | **12667797** | **14697880** |
| **Commitments and contingencies** |  |  |
| **Equity:** |  |  |
| Common stock\* (par value of $0.001 per share, 50,000,000 shares authorized, 11,892,744 and 8,630,000 Common stock issued and outstanding as of June 30, 2025 and December 31, 2024, respectively; 11,892,744 and 7,780,000 Common stock outstanding as of June 30, 2025 and December 31, 2024, respectively) | 11893 | 8630 |
| Additional paid-in capital | 9779056 | 8781273 |
| Retained earnings | (1055235) | 644930 |
| Accumulated other comprehensive income | (401540) | (577762) |
| Statutory reserve | 279200 | 464637 |
| **Total Equity** | **8613374** | **9321708** |
| **Total Liabilities and Equity** | $**21281171** | $**24019588** |

---

The Pre-delivery 850,000 Shares were not considered outstanding as of December 31, 2024 (Note 13).

The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.

LOBO EV TECHNOLOGIES LTD

UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

(In U.S. dollars except for number of shares)

---

| | | |
|:---|:---|:---|
|  | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
|  | **2025** | **2024** |
| Revenues | $12091762 | $12132668 |
| Cost of revenues | 10149305 | 10768717 |
| Gross Profit | **1942457** | **1363951** |
| Operating expenses |  |  |
| Selling and marketing expenses | 338080 | 329471 |
| General and administrative expenses | 1701458 | 878547 |
| Research and development expenses | 1053921 | 245642 |
| Total operating expenses | **3093459** | **1453660** |
| Operating (loss)/income | **(1151002)** | **(89709)** |
| Other expenses (income) |  |  |
| Interest expense | 1437601 | (19964) |
| Gain on disposal of subsidiaries | (50545) |  |
| Other income | (86714) | (45537) |
| Total other income, net | 1300342 | (65501) |
| (loss)/Income before income tax expense | **(2451344)** | **(24208)** |
| Income tax expense | 170825 | 289039 |
| Net (loss)/Income | **(2622169)** | **(313247)** |
| Net (loss)/Income | (2622169) | (313247) |
| Less: Net (loss)/income attributable to non-controlling interest | - | 10729 |
| Net (loss)/income attributable to LOBO EV Technologies LTD | **(2622169)** | **(302518)** |
| Net (loss)/Income | **(2622169)** | **(313247)** |
| Foreign currency translation adjustments | **176222** | **(168701)** |
| Total comprehensive (loss) income | **(2445947)** | **(481948)** |
| Less: Comprehensive net (loss) attributable to noncontrolling interests | - | (27327) |
| Total comprehensive (loss) income attributable to LOBO EV Technologies LTD | $**(2445947)** | **(454621)** |
| Net (loss)/income per share, basic and diluted | $(0.28) | $(0.04) |
| Weighted average shares outstanding, basic and diluted | 9368223 | 7143077 |

---

The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements

UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Common stock** | **Common stock** | | | | | | | | |
|  | **Share** | **Amount** | **Shareholders**<br>**subscription** | **Additional paid-in**<br>**capital** | **Statutory**<br>**reserves** | **(Accumulated deficit) Retained**<br>**earnings** | **Accumulated other comprehensive**<br>**loss** | **Total shareholders'**<br>**equity** | **Non-**<br> **controlling**<br>**Interest** | **Total**<br>**equity** |
| **Balance as of December 31, 2023** | **6400000** | **6400** |  | **3013333** | **521566** | **2490044** | **(377790)** | **5653553** | **225067** | **5878620** |
| Share issuance upon initial public offering, net of issuance costs | 1380000 | 1380 |  | 2694947 |  |  |  | **2696327** |  | **2696327** |
| Net income |  |  |  |  |  | (302518) |  | **(302518)** | **(10729)** | **(313247)** |
| Appropriation to statutory reserves |  |  |  |  | 85315 | (85315) |  | **-** | **-** | **-** |
| Foreign currency translation adjustments |  |  |  |  |  |  | (152103) | **(152103)** | (16598) | **(168701)** |
| **Balance as of June 30, 2024** | **7780000** | **7780** |  | **5708280** | **606881** | **2102211** | **(529893)** | **7895259** | **197740** | **8092999** |

---

(In U.S. dollars except for number of shares)

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Common stock** | **Common stock** | | | | | | | | |
|  | **Share** | **Amount** | **Shareholders**<br>**subscription** | **Additional paid-in**<br>**capital** | **Statutory**<br>**reserves** | **(Accumulated deficit) Retained**<br>**earnings** | **Accumulated other comprehensive**<br>**loss** | **Total shareholders'**<br>**equity** | **Non-**<br> **controlling**<br>**Interest** | **Total**<br>**equity** |
| **Balance as of December 31, 2024** | **8630000** | **8630** |  | **8781273** | **464637** | **644930** | **(577762)** | **9321708** |  | **9321708** |
| Common stock issued for conversion of convertible notes | 2762744 | 2763 |  | 1379901 |  |  |  | **1382664** |  | **1382664** |
| Common stock issued for services | 500000 | 500 |  | 354450 |  |  |  | **354950** |  | **354950** |
| Net loss |  |  |  |  |  | (2622169) |  | **(2622169)** |  | **(2622169)** |
| Appropriation to statutory reserves |  |  |  |  | 114756 | (114756) |  | **-** |  | **-** |
| Foreign currency translation adjustments |  |  |  |  |  |  | 176222 | **176222** |  | **176222** |
| Disposal of subsidiary |  |  |  | (736568) | (300193) | 1036761 |  | **-** |  | **-** |
| **Balance as of June 30, 2025** | **11892744** | **11893** |  | **9779056** | **279200** | **(1055235)** | **(401540)** | **8613373.74** |  | **8613374** |

---

The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.

LOBO EV TECHNOLOGIES LTD

UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In U.S. d

---

| | | |
|:---|:---|:---|
|  | **For the six months ended June 30,** | **For the six months ended June 30,** |
|  | **2025** | **2024** |
| **CASH FLOWS FROM OPERATING ACTIVITIES** |  |  |
| Net income | (2622169) | (313247) |
| Adjustment to reconcile net income to net cash provided by operating activities |  |  |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 364331 | 503769 |
| Common stock issued for services | 354950 |  |
| Investment income | (20113) | 55461 |
| &nbsp;&nbsp;&nbsp;Gain on disposal of subsidiary | (50545) |  |
| &nbsp;&nbsp;&nbsp;Amortization of Convertible Note issuance cost and debt discount upon conversion | 1421069 |  |
| Changes in Operating Assets and Liabilities |  |  |
| &nbsp;&nbsp;&nbsp;Accounts receivable | (952628) | 135391 |
| &nbsp;&nbsp;&nbsp;Inventories | (1726797) | (3304383) |
| &nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | 3358866 | (679115) |
| Deferred Tax Asset |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable | (648149) | 375299 |
| &nbsp;&nbsp;&nbsp;Advance from customers | (1212522) | 1114290 |
| &nbsp;&nbsp;&nbsp;Other current payables | (14258) | 7085 |
| &nbsp;&nbsp;&nbsp;VAT payable | 171831 | 372087 |
| &nbsp;&nbsp;&nbsp;Taxes payable | 192287 | 497711 |
| &nbsp;&nbsp;&nbsp;Operating lease Liabilities | 170091 | 122957 |
| **Net cash (used in) provided by operating activities** | **(1213756)** | **(1112695)** |
| **CASH FLOWS FROM INVESTING ACTIVITIES** |  |  |
| &nbsp;&nbsp;&nbsp;Interest-free loan to related parties |  | (7123895) |
| &nbsp;&nbsp;&nbsp;Interest-free loan repaid by related parties |  | 7102415 |
| &nbsp;&nbsp;&nbsp;Purchase of short-term investment | (551526) | (185564) |
| &nbsp;&nbsp;&nbsp;Sale of short-term investment | 571639 |  |
| &nbsp;&nbsp;&nbsp;Proceeds from disposal of subsidiary | 206822 |  |
| &nbsp;&nbsp;&nbsp;Purchase of property and equipment | (95215) | (54716) |
| &nbsp;&nbsp;&nbsp;Purchase of intangible assets | - | (503617) |
| **Net cash used in investing activities** | **131720** | **(765377)** |
| **CASH FLOWS FROM FINANCING ACTIVITIES** |  |  |
| Issuance of Common stock for cash, net of issuance costs |  | 1380 |
| &nbsp;&nbsp;&nbsp;Proceeds of interest-free loan from related parties | 382484 | 248842 |
| &nbsp;&nbsp;&nbsp;Repayments of interest-free loan to related parties | (1180782) | (428618) |
| &nbsp;&nbsp;&nbsp;Proceeds from short-term loan | 1481385 |  |
| &nbsp;&nbsp;&nbsp;Proceeds from additional paid in capital |  | 2694947 |
| Repayments of long-term borrowings | (71389) |  |
| **Net cash provided by financing activities** | **611698** | **2516551** |
| **Effect of exchange rate changes on cash and cash equivalents** | **4959** | **6367** |
| **NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS** | **(465379)** | **644846** |
| CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of period | 1889590 | 470335 |
| **CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of period** | **1424211** | **1115181** |
| **SUPPLEMENTAL CASH FLOW INFORMATION** |  |  |
| Cash paid during the period for: |  |  |
| Income taxes |  | (656) |
| Interest | (26741) | (4986) |
| **NON-CASH TRANSACTIONS** |  |  |
| Common stock issued upon conversion of debt and accrued interest | 1382664 |  |
| Non-cash consideration received from disposal of subsidiary | 3515981 |  |

---

The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.

LOBO EV TECHNOLOGIES LTD

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

**1. ORGANIZATION AND PRINCIPAL ACTIVITIES**

Lobo EV Technologies Ltd. ("LOBO") was incorporated as an exempted holding company under the laws of the British Virgin Islands on October 25, 2021. LOBO does not conduct any substantive operations on its own, but instead conducts its business operations through its wholly-owned subsidiary in the People's Republic of China (the "PRC") and the subsidiary of such entity. LOBO and its subsidiaries are hereinafter collectively referred to as "the Company". LOBO is an innovative electric vehicles manufacturer and seller. It is a high-tech company specializing in manufacturing a wide range of eco-friendly electric vehicles and home-used robotic products through its wholly-owned subsidiaries. As described below, LOBO, through a series of transactions which is accounted for as a reorganization of entities under common control (the "Reorganization"), became the ultimate parent entity of its subsidiaries. Accordingly, these consolidated financial statements reflect the historical operations of the Company as if the current organization structure had been in existence throughout the periods presented.

Reorganization

The Reorganization of the Company's legal structure was completed on March 14, 2022. The Reorganization involved (i) the incorporation of LOBO in the British Virgin Islands as a holding company; (ii) the incorporation of LOBO Holdings Limited in Hong Kong ("LOBO HK"), as a wholly-owned subsidiary of LOBO; (iii) the share transfer of Jiangsu LOBO from Jiangsu LOBO's shareholders to LOBO HK, resulting in Jiangsu LOBO becoming a wholly-owned subsidiary of LOBO HK in the PRC.

LOBO is a holding company and had not commenced operations until the Reorganization was complete.

During the periods presented in these consolidated financial statements, the control of the entities has never changed (always under the control of the PRC Shareholders). Accordingly, the combination has been treated as a corporate restructuring (reorganization) of entities under common control and thus the current capital structure has been retroactively presented in prior periods as if such structure existed at that time and in accordance with ASC 805-50-45-5, the entities under common control are presented on a combined basis for all periods to which such entities were under common control. The consolidation of the Company and its subsidiaries has been accounted for at historical cost and prepared on the basis as if the aforementioned transactions had become effective as of the beginning of the first period presented in the accompanying consolidated financial statements.

In March 2023, LOBO HK entered into a supplemental agreement with Jiangsu LOBO's former shareholders, and agreed the consideration for the share transfer of Jiangsu LOBO to LOBO HK shall be $1,437,646 (RMB 10,000,000), the registered capital amount of Jiangsu LOBO since its incorporation in November 2021. The pro-rata amount to each shareholder of Jiangsu LOBO was documented in the initial share transfer agreement entered in March 2022, when LOBO HK and former Jiangsu LOBO shareholders' decided the consideration to be zero at the time.

In March 2023, when LOBO HK and former Jiangsu LOBO Shareholders entered into the supplemental agreement, the nature of the share transfer transaction did not change, which is still an acquisition under common control. The supplemental agreement is part of the Reorganization process.

Jiangsu LOBO former shareholders include related parties who are also officers of LOBO under current structure, hence the acquisition was accounted for as common control acquisition in accordance with ASC 805-50-45-5. Under the guidance, the current capital structure has been retroactively presented in prior periods as if such structure existed at that time.

The reorganization has been treated as a corporate restructuring (reorganization) of entities under common control and thus the current capital structure has been retroactively presented in prior periods as if such structure existed at that time, and therefore, the consideration amount of $1,437,646 is retrospectively adjusted as of the beginning of the first period presented in the accompanying consolidated financial statements (Retrospective Adjustment -1).

On March 1, 2023, the Company effected a one thousand-for-one subdivision of shares to shareholders, which increased the total number of authorized and issued Common stock of 50,000 to 50,000,000, and decreased the par value of Common stock from $1 to $0.001. Then the shareholders surrendered a pro-rata number of Common stock of 44,300,000 to the Company for no consideration and thereafter cancelled. The surrendered shares have been retrospectively adjusted as of the beginning of the first period presented in the accompanying consolidated financial statements.

On September 15, 2023, the Company issued 700,000 shares on a pro-rata basis to the existing shareholders as stock dividend. The fair value of the stock dividend is determined to be $2,212,000 at $3.16 per ordinary share. As of October 15, 2023, the Company has 50,000,000 Common stock authorized, with 6,400,000 Common stock issued and outstanding. The stock dividend, all share and per share data are retroactively adjusted as of the beginning of the first period presented in the accompanying consolidated financial statements.

The consolidated financial statements reflect the activities of LOBO and each of the following entities:

---

| | | | | |
|:---|:---|:---|:---|:---|
| <br>**Name** | <br>**Date of**<br>**Incorporation** | <br>**Place of**<br>**incorporation** | **Percentage**<br>**of effective**<br>**ownership** | <br>**Principal Activities** |
| **Wholly owned subsidiaries** |  |  |  |  |
| LOBO EV Technologies Ltd (LOBO BVI) | October 2021 | BVI | 100% | Holding company |
| LOBO Holdings Ltd (LOBO HK) | November 2021 | HK | 100% | Investment holding company |
| LOBO MATRIX INVEST LTD (LOBO MATRIX) | September 2024 | BVI | 100% | Investment holding company |
| LOBO Scientific INC. (LOBO Scientific) | November 2024 | U.S. | 100% | Investment holding company |
| Jiangsu LOBO Electric Vehicle Co. Ltd (Jiangsu LOBO) | November 2021 | PRC | 100% | WFOE, a holding company |
| Beijing LOBO Intelligent Machine Co., Ltd (Beijing LOBO)\* | August 2014 | PRC | 100% | Domestic sales and outsourcing special models of e-bicycle and UVT |
| Tianjin LOBO Intelligent Robot Co., Ltd (Tianjin LOBO) | October 2021 | PRC | 100% | Production of electric bicycles, urban tricycles and elderly scooters |
| Guangzhou LOBO Intelligent Technologies Co. Ltd (Guangzhou LOBO)\* | May 2019 | PRC | 100% | Software development for automotive electronics |
| Wuxi Jinbang Electric Vehicle Manufacture Co., Ltd (Wuxi Jinbang)\* | October 2002 | PRC | 85% | Production of electric bicycles and electric moped |
| Tianjin Bibosch Intelligent Technologies Co., Ltd (Tianjin Bibosch) | March 2022 | PRC | 100% | Foreign sales of e-bicycle and UVT |
| Wuxi Zella Technology Trading Co., Ltd. (Wuxi Zella) | August 2024 | PRC | 100% | Trade agency company |
| Dezhou LOBO Intelligent Manufacturing Co., Ltd. (Dezhou LOBO) | April 2025 | PRC | 100% | Manufacture and Sale of General Equipment |

---

\* The Company has disposed the subsidiaries.

On November 28, 2024, the board directors' meeting of the company resolved that Jiangsu LOBO Electric Vehicle Co., Ltd. (hereinafter referred to as "Jiangsu LOBO"), a wholly-owned subsidiary of the company, would sell Guangzhou LOBO Intelligent Technology Co., Ltd. (hereinafter referred to as "Guangzhou LOBO"), a wholly-owned subsidiary of Jiangsu LOBO, to Yang Chengliang at a transfer equity price of RMB 18,000. On December 2, 2024, Jiangsu LOBO and Yang Chengliang signed an equity transfer agreement. On December 11, 2024, the industrial and commercial information of Guangzhou LOBO was changed, and the day after that, the materials were handed over with the buyer, and the control right of Guangzhou LOBO had been completely transferred to the buyer, completing the disposal of Guangzhou LOBO.

On December 10, 2024, the board directors' meeting of the company resolved that Beijing LOBO Intelligent Machine Co., Ltd. (hereinafter referred to as "Beijing LOBO"), a wholly-owned subsidiary of the company, would sell 85% of the equity of its subsidiary, Wuxi Jinbang Electric Vehicle Manufacturing Co., Ltd. (hereinafter referred to as "Wuxi Jinbang"), to Wang Jiaqian at a transfer equity price of RMB 9.18 million. On December 15, 2024, Beijing LOBO and Wang Jiaqian signed an equity transfer agreement. On December 30, 2024, the industrial information change of Wuxi Jinbang was completed, and the day after, the materials were handed over to the buyer. The control right of Wuxi Jinbang has been completely transferred to the buyer, and the disposal of Wuxi Jinbang has been completed.

On December 30, 2024, the board of directors of the Company decided to sell its wholly-owned subsidiary Beijing Luobei Intelligent Machine Co., LTD. On March 28, 2025, the board of directors' meeting of the company decided to sell Beijing Lobo to Guo Yafang at the transfer equity consideration of RMB 27,000,000. On March 31, 2025, Jiangsu Lobo signed an equity transfer agreement with Guo Yafang. On April 21, 2025, the change of industrial and commercial information of Beijing Lobo has been completed, and the data handover was completed with the buyer on the same day. The control of Beijing Lobo has been completely transferred to the buyer.

The sales of the above subsidiaries do not constitute a non-continuing operation business that has a significant impact on the company's entity operation, financial performance, or involves strategic shift. The sales do not conform to the definition of discontinued operations as stipulated in ASC 205-20-45-1A to 45-1C. Therefore, it is not necessary to disclose the relevant information about discontinued operations in the financial statements in accordance with ASC 205-20-50-5.

Details of the entities disposed were as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **Guangzhou LOBO** | **Wuxi Jinbang** | **Beijing LOBO** |
| Total assets | $221376 | $4572952 | $10283923 |
| Total liabilities | 842393 | 3322166 | 6611665 |
| Total net assets | (621017) | 1250786 | 3672258 |
| Total noncontrolling interest |  | (187618) |  |
| Subtotal | (621017) | 1063168 | 3672258 |
| Total consideration | 2501 | 1275762 | 3722803 |
| Total gain on disposal of subsidiaries | $623518 | $212594 | $50545 |

---

**2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

*(a) Basis of presentation and principles of consolidation*

The accompanying consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). The consolidated financial statements include the financial statements of LOBO, and its subsidiaries. All inter-company transactions and balances have been eliminated upon consolidation. In the opinion of the management, the accompanying unaudited interim condensed consolidated financial statements reflect all normal recurring adjustments, which are necessary for a fair statement of financial results for the interim periods presented. The Company believes that the disclosures are adequate to make the information presented not misleading. The accompanying unaudited interim condensed consolidated financial statements have been prepared using the same accounting policies as used in the preparation of the Company's consolidated financial statements for the year ended December 31, 2024. The results of operations for the six months ended June 30, 2025 are not necessarily indicative of the results for the full year. These statements should be read in conjunction with the Company's audited consolidated financial statements for the year ended December 31, 2024 and notes thereto and other pertinent information contained in our Annual Report on Form 20-F as filed with the SEC on April 28, 2025.

Reclassification

Certain prior year amounts have been reclassified to conform to the current year presentation. These reclassifications had no impact on net earnings and financial position.

*(b) Use of estimates*

The preparation of consolidated financial statements in conformity with U.S. GAAP requires the Company's management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period and accompanying notes, including credit loss, the useful lives of property and equipment, impairment of short-term investments, long-term investments and long-lived assets, valuation allowance for deferred tax assets and uncertain tax opinions. Actual results could differ from those estimates.

*(c) Foreign Currency Translation*

The reporting currency of the Company is the U.S. dollar ("USD" or "$"). The functional currency of subsidiaries located in China is the Chinese Renminbi ("RMB"), the functional currency of subsidiaries located in Hong Kong is the Hong Kong dollars ("HK$"). For the entities whose functional currency is the RMB and HK$, results of operations and cash flows are translated at average exchange rates during the period, assets and liabilities are translated at the unified exchange rate at the end of the period, and equity is translated at historical exchange rates. As a result, amounts relating to assets and liabilities reported on the statements of cash flows may not necessarily agree with the changes in the corresponding balances on the balance sheets. Translation adjustments are reported as foreign currency translation adjustment and are shown as a separate component of other comprehensive loss in the Consolidated Statements of Operations and Comprehensive Income.

Transactions denominated in foreign currencies are translated into the functional currency at the exchange rates prevailing on the transaction dates. Assets and liabilities denominated in foreign currencies are translated into the functional currency at the exchange rates prevailing at the balance sheet date with any transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the results of operations as incurred.

**2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – continued**

The Consolidated Balance Sheets amounts, with the exception of equity, on June 30, 2025 and December 31, 2024 were translated at RMB7.1636 to $1.00 and RMB7.2993 to $1.00, respectively. Equity accounts were stated at their historical rates. The average translation rates applied to Consolidated Statements of Operations and Comprehensive Income and Cash Flows for the six months ended June 30, 2025 and 2024 were RMB7.2526 to $1.00 and RMB7.2150 to $1.00, respectively.

*(d) Fair Value Measurement*

The Company applies Accounting Standards Codification ("ASC") Topic 820, Fair Value Measurements and Disclosures which defines fair value, establishes a framework for measuring fair value and expands financial statement disclosure requirements for fair value measurements.

ASC Topic 820 defines fair value as the price that would be received from the sale of an asset or paid to transfer a liability (an exit price) on the measurement date in an orderly transaction between market participants in the principal or most advantageous market for the asset or liability.

ASC Topic 820 specifies a hierarchy of valuation techniques, which is based on whether the inputs into the valuation technique are observable or unobservable. The hierarchy is as follows:

Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.

Level 2 inputs to the valuation methodology include quoted prices for identical or similar assets and liabilities in active markets or in inactive markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments.

Level 3 inputs to the valuation methodology are unobservable and significant to the fair value.

The carrying amounts of the Company's financial instruments approximate their fair values because of their short-term nature. The Company's financial instruments include cash, short-term investments, accounts receivable, amounts due from related parties, other current assets, amounts due to related parties, accounts payable and other current payables. Short-term investments are recorded at fair value, based on Level 1 inputs as of June 30, 2025 and December 31, 2024.

*(e) Cash and cash equivalents*

Cash and cash equivalents consist of cash on hand, bank deposits and short-term, highly liquid investments that are readily convertible to known amounts of cash and have insignificant risk of changes in value related to changes in interest rates and have original maturities of three months or less when purchased.

*(f) Accounts receivable*

Accounts receivable are stated at the original amount less credit losses, if any, based on a review of all outstanding amounts at period end. The Company adopted ASU No. 2016-13, "Financial Instruments – Credit Losses" on January 1, 2023. The Company analyzes the aging of the customer accounts, coverage of credit insurance, customer concentrations, customer credit-worthiness, historical and current economic trends, supportable and reasonable future forecast, and changes in its customer payment patterns, and concluded that the adoption has no material impact on the consolidated financial statements and the allowance for credit losses assessed to be immaterial as of June 30, 2025 and December 31, 2024.

**2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – continued**

*(g) Inventories*

Inventories, primarily consisting of the raw materials purchased by the Company for battery packs assembling and e-bicycles production, and finished goods including battery packs and e-bicycles, are stated at the lower of cost or net realizable value. Cost of inventory is determined using weighted-average method. Where there is evidence that the utility of inventories, in their disposal in the ordinary course of business, will be less than cost, whether due to physical deterioration, obsolescence, changes in price levels, or other causes, the inventories are written down to net realizable value. There were no write-downs recognized for the inventories for the six months ended June 30, 2025 and 2024.

*(h) Property and equipment, net*

Property and equipment are stated at cost less accumulated depreciation and impairment, if any, and depreciated on a straight-line basis over the estimated useful lives of the assets. Cost represents the purchase price of the asset and other costs incurred to bring the asset into its intended use. The cost of repairs and maintenance is expensed as incurred; major replacements and improvements are capitalized. When assets are retired or disposed of, the cost and accumulated depreciation are removed from the accounts, and any resulting gains or losses are included in income/loss in the year of disposition. Estimated useful lives are as follows:

Production line for e-bicycles 5-10 Years <br> Furniture, fixtures and office equipment 3-5 Years <br> Vehicles 4-10 Years

*(i) Intangible Assets*

We purchase software from third parties and recorded the cost in intangible assets on the consolidated balance sheets.

We amortize the purchased software on a straight-line basis over their estimated useful lives, which is typically 3 years. Amortization expense of Beijing LOBO is included in General and administrative expense, and amortization expense of Guangzhou LOBO is included in cost of revenue on the statements of operations and totaled $315,320 and $359,345 for the six months ended June 30, 2025 and 2024, respectively. We evaluate the purchased software for impairment and did not record impairment losses for the six months ended June 30, 2025 and 2024. Refer to Note 9 – Intangible Assets for additional information regarding our purchased software.

**2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – continued**

*(j) Capitalized Software Development Costs*

In accordance with ASC 350-40, Internal-Use Software, the Company capitalizes certain computer software and software development costs incurred in connection with developing or obtaining computer software for internal use when both the preliminary project stage is completed, and it is probable that the software will be used as intended, until the software is available for general release. Capitalized software costs primarily include external direct costs of materials and services utilized in developing or obtaining computer software.

In 2023, the capitalized software for internal use was completed, the capitalized costs is amortized on a straight-line basis over the estimated useful live of three years. The Company reviews the carrying value for impairment whenever facts and circumstances exist that would suggest that assets might be impaired or that the useful lives should be modified. Refer to Note 8 - Intangible Assets for additional information regarding our capitalized software development costs.

*(k) Impairment of Long-lived Assets*

In accordance with ASC Topic 360, Property, Plant, and Equipment, the Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be fully recoverable. The Company recognizes an impairment loss when the sum of expected undiscounted future cash flows is less than the carrying amount of the asset. The amount of impairment is measured as the difference between the asset's estimated fair value and its carrying amount. The Company did not record any impairment charge for the six months ended June 30, 2025 and 2024.

*(l) Value Added Tax*

LOBO's China subsidiaries are subject to value-added tax ("VAT") for providing services and sales of products.

Revenue from providing services and sales of products is generally subject to VAT at applicable tax rates, and subsequently paid to PRC tax authorities after netting input VAT on purchases. The excess of output VAT over input VAT is reflected in accrued expenses and other payables. The Company reports revenue net of PRC's VAT for all the periods presented in the Consolidated Statements of Operations and Comprehensive Income.

*(m) Revenue Recognition*

The Company adopted ASU 2014-09, Revenue from Contracts with Customers ("ASC Topic 606") from January 1, 2019 and used the modified retrospective method for the revenue from sales of self-manufactured e-bicycles.

The core principle of ASC Topic 606 is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The following five steps are applied to achieve that core principle:

Step 1: Identify the contract with the customer

Step 2: Identify the performance obligations in the contract

Step 3: Determine the transaction price

Step 4: Allocate the transaction price to the performance obligations in the contract

Step 5: Recognize revenue when the company satisfies a performance obligation

Revenue recognition policies are discussed as follows:

Revenue from sales of electric vehicles and accessories

The Company sells electric vehicles and accessories products to customers across the world. The transaction price in the contract is fixed and reflected in the sales invoice. The performance obligation is to transfer promised products to a customer upon acceptance by customers, and the Company is primarily responsible for fulfilling the promise to deliver the products to the customers. There is only one performance obligation in the contract and there is no need for allocation. The Company presents the revenue generated from its sales of products on a gross basis as the Company is a principal. The revenue is recognized at a point in time when the Company satisfies the performance obligation.

The Company offers customer warranties generally from three months to one year. To estimate reserve for warranties and returns the Company relies on historical sales returns and warranty repair costs. Based on assessment the Company assessed no cost for warranties and returns for the six months ended June 30, 2025 and 2024 for the electric vehicles and accessories segment.

**2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – continued**

Prior to December 2024, the Company generated revenue from the sale of software development and design services. Such revenue was recognized over time using the output method, based on development milestones periodically confirmed by customers. The Company acted as the principal in these arrangements, and each contract contained a single performance obligation. The Company has not generated revenue from software development and design services subsequent to December 2024.

The timing of revenue recognition may differ from the timing of invoicing to customers. Accounts receivable represent revenue recognized for the amounts invoiced when the Company has satisfied its performance obligation and has unconditional right to payment. The Company has no contract assets as of June 30, 2025 and December 31, 2024.

Contract liabilities primarily consist of advances from customers. As of June 30, 2025 and December 31, 2024, the Company recognized advances from customers amounted to $1,476,711 and $1,843,976, respectively. The amount of revenue recognized that was included in the contract liabilities at the beginning of the period were $1,143,860 and $1,055,869 for the six months ended June 30, 2025 and 2024, respectively.

The Company's standard warranty on the software development and design services varies from one year to three years or up to 100,000 kilometers of the vehicles that equipped with the software. This warranty primarily includes basic after-sales service, such as software bug fixes. The Company considers the standard warranty is not providing incremental service to customers rather an assurance to the quality of the software development and design services and therefore, is not a separate performance obligation. The Company analyzed historical warranty claims, and incurred warranty cost of zero and $64,485 for the six months ended June 30, 2025 and 2024, respectively.

*(n)* Research and Development Expenses

Research and development ("R&D") expenses are expensed as incurred. R&D expenses primarily consist of employee salary and benefit costs. R&D expenses were $1,053,921 and $245,642 for the six months ended June 30, 2025 and 2024, respectively.

*(o) Income Taxes*

The Company accounts for income taxes using the asset/liability method prescribed by ASC 740 Income Taxes. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial reporting and tax bases of assets and liabilities using enacted tax rates that will be in effect in the period in which the differences are expected to reverse. The Company records a valuation allowance to offset deferred tax assets if, based on the weight of available evidence, it is more-likely-than-not that some portion, or all, of the deferred tax assets will not be realized. The effect on deferred taxes of a change in tax rates is recognized as income or loss in the period that includes the enactment date.

**2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – continued**

The provisions of ASC 740-10-25, "Accounting for Uncertainty in Income Taxes," prescribe a more-likely-than-not threshold for consolidated financial statement recognition and measurement of a tax position taken (or expected to be taken) in a tax return. This interpretation also provides guidance on the recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, and related disclosures. The Company's operating subsidiaries in PRC are subject to examination by the relevant tax authorities. According to the PRC Tax Administration and Collection Law, the statute of limitations is three years if the underpayment of taxes is due to computational errors made by the taxpayer or the withholding agent. The statute of limitations is extended to five years under special circumstances, where the underpayment of taxes is more than RMB100,000 ($14,498). In the case of transfer pricing issues, the statute of limitation is ten years. There is no statute of limitation in the case of tax evasion. Penalties and interest incurred related to underpayment of income tax are classified as income tax expense in the period incurred.

*(p) Non-controlling Interest*

A non-controlling interest in a subsidiary of the Company represents the portion of the equity (net assets) in the subsidiary not directly or indirectly attributable to the Company. Non-controlling interests are presented as a separate component of equity on the Consolidated Balance Sheets, consolidated statements of changes in shareholders' equity and net income and other comprehensive income attributable to non-controlling shareholders are presented as a separate component on the Consolidated Statements of Operations and Comprehensive Income. Non-controlling interest is nil as of December 31, 2024 upon sale of Wuxi Jinbang.

*(q) Segment Reporting*

On December 11, 2024, the Company completed the disposal of Guangzhou Lobo, the Software Royalties and Development and Design Services segment, which did not meet the criteria to be classified as discontinued operations under ASC 205-20. Following this transaction, beginning in December 2024, the Company operates as a single reportable segment, Electric Vehicles and Accessories Sales.

As the Company's long-lived assets are substantially all located in the PRC and all of the Company's revenues and expenses are derived from within the PRC, no geographical segments are presented.

*(r) Net Income Per Share*

Basic income per share is computed by dividing net income attributable to ordinary shareholders by the weighted average number of Common stock outstanding for the period. Diluted income per share is calculated by dividing net income attributable to ordinary shareholders as adjusted for the effect of dilutive ordinary equivalent shares, if any, by the weighted average number of ordinary and dilutive ordinary equivalent shares outstanding during the period. Potentially dilutive shares are excluded from the computation if their effect is anti-dilutive.

*(s) Comprehensive Income*

Comprehensive income is comprised of the Company's net income and other comprehensive income (loss). The components of other comprehensive loss consist solely of foreign currency translation adjustments.

**2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – continued**

*(t) Commitments and Contingencies*

Liabilities for loss contingencies arising from claims, assessments, litigation, fines, and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated. If a potential material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material, is disclosed. Legal costs incurred in connection with loss contingencies are expensed as incurred.

*(u) Stock-based Compensation*

The Company periodically issues shares of its common stock as compensation for services received from its consultants. The fair value is measured on the grant date based on the market price. The fair value amount is recognized as expense when services are required to be provided in exchange for the award. Stock-based compensation expense is recorded in the same expense classifications in the consolidated statements of operations as if such amounts were paid in cash.

*(u) Recent Accounting Standards*

The Company is an "emerging growth company" ("EGC") as defined in the Jumpstart Our Business Startups Act of 2012 (the "JOBS Act"). Under the JOBS Act, an EGC can delay adopting new or revised accounting standards issued subsequent to the enactment of the JOBS Act until such time as those standards apply to private companies.

In December 2023, the FASB issued Accounting Standard Update ("ASU") No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The amendments in this ASU require that public business entities on an annual basis 1) disclose specific categories in the rate reconciliation, and 2) provide additional information for reconciling items that meet a quantitative threshold. The amendments require disclosure about income taxes paid by federal, state and foreign taxes, and by individual jurisdictions in which income taxes paid is equal or greater than 5 percent of total income taxes paid. The amendment also requires entities to disclose income or loss from continuing operations before income tax expense disaggregated between domestic and foreign and income tax expense or benefit from continuing operations disaggregated by federal, state and foreign. For all public business entities, ASU 2023-09 is effective for annual periods beginning after December 15, 2024; early adoption is permitted. The Company will adopt and apply the guidance in fiscal year 2025. There is no material impact expected to our results of operations, cash flows and financial condition at the time of adoption, however the Company is still assessing the disclosure impact.

In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The amendments in this ASU improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The amendments in this update require that a public entity disclose on an annual and interim basis, 1) significant segment expenses that are regularly provided to the chief operating decision maker ("CODM") and included within each reported measure of segment profit or loss, 2) an amount for other segment items by reportable segment and a description of its composition. The other segment items category is the difference between segment revenue less the segment expenses disclosed under the significant expense principle and each reported measure of segment profit or loss, and 3) disclose the title and position of the CODM and an explanation of how the CODM uses the reported measure(s) of segment profit or loss in assessing segment performance and deciding how to allocate resources. For all public business entities, ASU 2023-07 is effective for annual periods beginning after December 15, 2024; early adoption is permitted. The Company will adopt and apply the guidance in fiscal year 2025. There is no material impact expected to our results of operations, cash flows and financial condition at the time of adoption, however the Company is still assessing the disclosure impact.

Other accounting standards that have been issued by FASB that do not require adoption until a future date are not expected to have a material impact on the consolidated financial statements upon adoption. The Company does not discuss recent standards that are not anticipated to have an impact on or are unrelated to its consolidated financial condition, results of operations, cash flows or disclosures.

**3. REVENUES AND COST OF REVENUES** 

The following table identifies the disaggregation of the Company's revenues for the six months ended June 30, 2025 and 2024, respectively:

---

| | | |
|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2024** |
| **Revenues** |  |  |
| Electric vehicles and accessories sales | $12091762 | $12076334 |
| Software royalties |  | 343 |
| Software development and design services |  | 55991 |
| Software royalties and development and design subtotal |  | 56334 |
| **Total revenues accounted for under ASC Topic 606** | $12091762 | $12132668 |

---

The Company applied a practical expedient to expense costs as incurred for costs to obtain a contract with a customer when the amortization period would have been one year or less. The Company has no material incremental costs of obtaining contracts with customers that the Company expects the benefit of those costs to be longer than one year.

Cost of electric vehicles and accessories revenues consist primarily of cost of products, labor cost, and other overhead expenses. Cost of Software development and design revenues consist primarily of raw material cost, outsourced development cost, and amortization cost of the intangible assets. The following table identifies the disaggregation of the Company's cost of revenues for the six months ended June 30, 2025 and 2024, respectively:

---

| | | |
|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2024** |
| **Cost of revenues** |  |  |
| &nbsp;&nbsp;&nbsp;Electric vehicles and accessories | $10149305 | $10374282 |
| &nbsp;&nbsp;&nbsp;Software development and design services |  | 394435 |
| **Total cost of revenues** | $10149305 | $10768717 |

---

**4. ACCOUNTS RECEIVABLE, NET** 

Accounts receivable consisted of the following, and the Company determined that based on the aging of the customer accounts, coverage of credit insurance, customer concentrations, customer credit-worthiness, historical and current economic trends, supportable and reasonable forecast and changes in its customer payment patterns, the allowance for credit losses assessed to be immaterial.

---

| | | |
|:---|:---|:---|
|  | **As of** | **As of** |
|  | **June 30, <br> 2025** | **December 31, <br> 2024** |
| Accounts receivable | $2499902 | $1506894 |

---

**5. INVENTORIES, NET**

Inventories consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **As of** | **As of** |
|  | **June 30, <br> 2025** | **December 31, <br> 2024** |
| Finished goods<sup>(1)</sup> | $3965855 | $5018907 |
| Raw materials<sup>(2)</sup> | 6537935 | 3573860 |
| Total Inventory | $10503790 | $8592767 |

---

(1) Finished
 goods includes electric vehicles and accessories.

(2) Raw
 materials mainly include parts, and battery cells.

Based on historical observations, the write-downs were immaterial to be recognized for the inventories for the six months ended June 30, 2025 and 2024.

**6. PREPAID EXPENSES AND OTHER CURRENT ASSETS**

Prepaid expenses and other current assets consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **As of** | **As of** |
|  | **June 30, 2025** | **December 31, 2024** |
| Prepayment to vendors | $3652366 | $7079049 |
| Advances to employees (1) | 69182 | 26903 |
| Others (2) | 706854 | 583471 |
| Prepaid expenses and other current assets | $4428402 | $7689423 |

---

(1) The
 balance represented advances that the Company's subsidiaries have advanced to non-director/officer employees. The advance is
 interest-free.

(2) The
 balance primarily represented a deductible VAT input tax of $479,339 and $233,589 as of June 30, 2025 and December 31, 2024, respectively.

**7. PROPERTY AND EQUIPMENT, NET**

Property and equipment, net consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **As of** | **As of** |
|  | **June 30,**<br>**2025** | **December 31,**<br>**2024** |
| Production line for e-bicycles | $942892 | $829004 |
| Furniture, fixtures and office equipment | 51808 | 46665 |
| Property and equipment, gross | 994700 | 875669 |
| Less: accumulated depreciation | (199641) | (147231) |
| Property and equipment, net | $795059 | $728438 |

---

For the six months ended June 30, 2025 and 2024, depreciation expense amounted to $49,011 and $125,631 , respectively.

**8. INTANGIBLE ASSETS, NET**

Intangibles, net consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **As of** | **As of** |
|  | **June 30,**<br>**2025** | **December 31,**<br>**2024** |
| Purchased software | $710616 | $697405 |
| Capitalized software development costs | 1462568 | 1435378 |
|  | 2173184 | 2132783 |
| Less: accumulated amortization | (1604877) | (1261739) |
| Intangible assets, net | $568307 | $871044 |

---

In the software development process, once the preliminary project stage was completed and management committed to funding the software through completion and the software will be used to perform the function intended, the application development stage started. In accordance with ASC 350-40-25, the software development costs incurred in the application development stage were capitalized, and the costs incurred in the preliminary project stage were expensed.

In 2023, the capitalized software for internal use was completed, the capitalized costs is amortized on a straight-line basis over the estimated useful live of three years.

For the six months ended June 30, 2025 and 2024, amortization expense amounted to $315,320 and $378,138 . The Company did not recognize impairment loss for the six months ended June 30, 2025 and 2024.

The following summarizes total future amortization expenses of the purchased software at June 30, 2025:

---

| | |
|:---|:---|
| **Year ending June 30,** | |
| 2025 | $268975 |
| 2026 | 298497 |
| 2027 | 164 |
| 2028 | 164 |
| 2029 and after | 507 |
| Total future amortization expense | $568307 |

---

**9. ADVANCES FROM CUSTOMERS**

Advances from customers are contract liabilities that represent the Company's obligation to transfer goods or services to customers for which the Company has received prepayments from the customers. As of June 30, 2025 and December 31, 2024, the Company recorded advances from customers that amounted to $1,476,711 and 1,843,976, respectively. The amount of revenue recognized that was included in the contract liabilities at the beginning of the period were $1,143,860 and $1,055,869 for the six months ended June 30, 2025 and 2024, respectively.

**10. TAXES PAYABLE**

Taxes payable consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **As of** | **As of** |
|  | **June 30,**<br>**2025** | **December 31,**<br>**2024** |
| Income tax payable | $447867 | $269809 |
| Other tax payable | 157263 | 113910 |
| Total tax payable | $605130 | $383719 |

---

**11. OPERATING LEASE LIABILITIES AND RIGHT OF USE ASSETS**

Operating Leases

During the six months ended June 30, 2025 and 2024, the Company entered into multiple operating leases for new offices and facility spaces in China. The Company measured and recorded right of use assets and corresponding operating lease liabilities at the lease commencement dates. The discount rate utilized in such present value calculation was 4.75% based on an estimate of the Company's incremental borrowing rate.

The Company has made operating lease payments in the amount of $45,511 and $9,337 during the six months ended June 30, 2025 and 2024. Rent expense charged to operations, which differs from rent paid due to rent credits and to increasing amounts of base rent, is calculated by allocating total rental payments on a straight-line basis over the term of the lease. For the six months ended June 30, 2025 and 2024, the Company incurred operating lease expense amounted to $232,535 and $132,362, respectively.

Operating lease liabilities consist of:

SCHEDULE OF OPERATING LEASE LIABILITIES

---

| | | |
|:---|:---|:---|
|  | **As of** | **As of** |
|  | **June 30,**<br>**2025** | **December 31,**<br>**2024** |
| Current portion | $929017 | $768544 |
| Long term portion | 415821 | 554366 |
| Total operating lease liabilities | $1344838 | $1322910 |

---

The following summarizes total future minimum operating lease payments at June 30, 2025:

---

| | |
|:---|:---|
| **The periods ending June 30,** | |
| 2025 | $778706 |
| 2026 | 359090 |
| 2027 | 161932 |
| 2028 | 97334 |
| Thereafter | - |
| Total minimum lease payments | $1397062 |
| Less: present value discount | (52224) |
| Present value of minimum lease payments | $1344838 |

---

As of June 30, 2025 and December 31, 2024, the weighted average discount rate for these leases is 4.75% and 4.75%, and the weighted average remaining term is 25 months and 31 months, respectively.

**12. BANK LOAN**

In September 2024, the Company's subsidiary, Tianjin Lobo entered into a line of credit agreement of $410,998 (RMB3.000,000) with a financing company at an annual interest rate of 8.89%. The Company pays principal and interest monthly, and the credit agreement expires on August 31, 2027. $141,419 of the principal is classified as short-term, and remaining $168,718 of the principal is classified as long-term as of June 30, 2025.

In January and April of 2025, the Company's subsidiary, Jiangsu Lobo entered into a line of credit agreement and has drawn a total of $1,481,385 (at average foreign exchange rate of RMB10,700,000) with a financing company at an annual interest rate between 3.01% and 3.35%. The Company pays interest monthly or quarterly, and pay principal when each tranche of the borrowings expires between Jan and April of 2026. All of the principal of $1,493,662 are classified as short-term as of June 30, 2025.

For the six months ended June 30, 2025 and 2024, the Company recorded interest expenses of $27,833 and $5168, respectively.

**13. CONVERTIBLE NOTE**

On December 10, 2024, the Company entered into a securities purchase agreement (the "November 2024 SPA") with Streeterville Capital, LLC, a Utah limited liability company (the "Investor"), pursuant to which the Company issued to the Investor (i) an unsecured convertible note ("Convertible Note"), in the principal amount of $1,635,000, bearing interest at a rate of 7% per annum and having a term of one year after the purchase price of the Convertible Note is delivered by the Investor to the Company with an aggregate original issue discount of US$135,000, and (ii) 850,000 Common stock ("Pre-Delivery Shares") of the Company in aggregate at a price of $0.001 per share, which is for pre-delivery and subject to the Company's repurchase right upon repayment of the notes. The Investor has the right at any time beginning on the earlier of (a) the date that is six months after the purchase price of the Convertible Note is delivered by the Investor to the Company, and (b) the effective date of the registration statement on Form F-1 to register the Investor's resale of conversion shares and Pre-Delivery Shares, until the Outstanding Balance (the principal amount plus accrued but unpaid interest, collection and enforcements costs incurred by Lender, transfer, stamp, issuance and similar taxes and fees related to Conversions, and any other fees or charges incurred under this Convertible Note as of any date of determination) has been paid in full, at its election, to convert all or any portion of the Outstanding Balance into Common stock at a conversion price equal to the lower of (a) 80% of the lowest volume weighted average price measured during the period of ten (10) trading days prior to the conversion; and (b) the fixed price of $4.00 per share, subject to the restriction of the floor price of $1.00 per share for the possible future conversions into Common stock. Upon the occurrence of an Event of Default, Holders may accelerate this Note with the Outstanding Balance becoming immediately due and payable in cash, and interest shall accrue on the Outstanding Balance beginning on the date the applicable Event of Default occurred at an interest rate equal to the lesser of 18% per annum or the maximum rate permitted under applicable law ("Default Interest").

In addition, the Company may prepay all or a portion of the Convertible Note at any time by paying 110% of the Outstanding Balance elected for pre-payment. From the date of the issuance and sale of the Convertible Note and the Pre-Delivery Shares to the maturity date, the Company can extend the maturity date up to twice, for six months each time, and each exercise of this right will increase the Outstanding Balance by 5%. However, the Company can only exercise the right if: (i) for the first exercise, the Outstanding Balance is $750,000 or less, and for the second, it is $375,000 or less; (ii) no Trigger Event has occurred before the exercise date; (iii) the company has not received a non-qualification letter regarding any Nasdaq listing rule.

On December 13, 2024, the Company completed its issuance and sale of the note and issuance of Pre-Delivery Shares pursuant to the November 2024 SPA. The gross proceeds from the sale of the Convertible Note were $1,635,000, prior to deducting transaction fees and estimated expenses.

The Company has identified and evaluated the embedded features of the convertible notes, and concluded that (i) the Company call option, contingent interest features for event of default, the right to prepay, and event of delisting put option are clearly and closely related to the debt host instrument and, therefore, are not required to be bifurcated under ASC 815, (ii) the conversion right is eligible for a scope exception from derivative accounting and is not required to be bifurcated under ASC 815. Consequently, the Company accounts for the convertible notes as a liability following the respective guidance ASC 470.

As Pre-delivery shares can be separately exercised, i.e. each can continue to exist unchanged when the other is exercised, the Company concluded that they were freestanding. The Pre-delivery Shares are considered a form of stock borrowing facility and are accounted for as own-share lending arrangement. The Company did not receive any proceeds or pay any consideration related to the Pre-delivery Shares, except that the Company received a one-time nominal fee of $850 upon the issuance of the Pre-delivery Shares and will pay the same amount to the investors upon the return of Pre-delivery Shares, respectively. The fair value of the 850,000 shares was based on the Nasdaq trading price on the issuance day, but was limited to the proceeds amount of $1,500,000. The Company accounted for the share lending arrangement as an issuance cost and recorded at fair value upon issuance date against additional paid-in capital of $1,499,150. Although legally issued, the Pre-delivery Shares were not considered outstanding and therefore excluded from basic and diluted loss per share unless default of the share lending arrangement occurs, at which time the Pre-delivery Shares would be included in the basic and diluted loss per share calculation.

During the six months ended June 30, 2025, the Company issued 2,762,744 shares of Common stock upon conversion of $1,382,664 convertible debt principal and accrued interest, and the corresponding debt discount of $1,421,069 was amortized into interest expense.

The amortized cost of the Convertible Note consisted of the following:

SCHEDULE OF AMORTIZED COST OF THE CONVERTIBLE NOTE

---

| | |
|:---|:---|
| Convertible Note Principal- Issued in November 2024 | $1635000 |
| Debt issuance discount | (135000) |
| Debt discount of fair value for pre-delivery Shares | (1499150) |
| Interest accrued | 11970 |
| **Convertible Notes Principal and accrued interest as of December 31, 2024** | **12820** |
| Amortization of debt discount and fair value for pre-delivery shares | 1421069 |
| Principal and accrued accrued interest converted into Common stock | (1382664) |
| **Convertible Notes Principal and accrued interest as of June 30, 2025** | $**51225** |

---

**14. RELATED PARTY TRANSACTIONS AND BALANCES**

The following is a list of related parties which the Company had transactions with during the six months ended June 30, 2025 and 2024:

SCHEDULE OF LIST OF RELATED PARTIES

---

| | | |
|:---|:---|:---|
|  | **Name** | **Relationship** |
| (a) | Huiyan Xie | 5.38% shareholder of the Company |
| (b) | Huajian Xu | CEO of the Company |

---

Amounts due to related parties

As of June 30, 2025and December 31, 2024, amounts due from related parties, consisted of the following:

SCHEDULE OF AMOUNTS DUE TO RELATED PARTIES

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **Borrowed** | **Repaid** | **Exchange Rate Translation** | **Reclass to OP** | **Disposal of Subsidiaries** | **June 30, 2025** |
| Amounts due to related parties |  |  |  |  |  |  |  |
| (a) Huiyan Xie | 27729 | 345486 | (530725) | (9895) |  | (287421) | 120016 |
| (b) <br>Huajian Xu | 684681 | 36999 | (650058) | 101 |  |  | 71723 |
| Total amounts due to related parties | $712410 | $382484 | $(1180782) | $(9794) | $&nbsp;&nbsp;&nbsp;&nbsp; - | $(287421) | $191739 |

---

The balances represented interest-free loans payable to shareholders.

**15. INCOME TAXES**

BVI

The Company is incorporated in the BVI. Under the current laws of the BVI, the Company is not subject to income or capital gains taxes. In addition, dividend payments are not subject to with holdings tax in the BVI.

Hong Kong

On March 21, 2018, the Hong Kong Legislative Council passed The Inland Revenue (Amendment) (No. 7) Bill 2017 (the "Bill") which introduces the two-tiered profits tax rates regime. The Bill was signed into law on March 28, 2018 and was announced on the following day. Under the two-tiered profits tax rates regime, the first 2 million Hong Kong Dollar ("HKD") of profits of the qualifying group entity will be taxed at 8.25%, and profits above HKD 2 million will be taxed at 16.5%. The Company's Hong Kong subsidiaries did not have assessable profits that were derived in Hong Kong for the six months ended June 30, 2025 and 2024. Therefore, no Hong Kong profit tax has been provided for the six months ended June 30, 2025 and 2024.

PRC

The Company's PRC subsidiaries are subject to the PRC Enterprise Income Tax Law ("EIT Law") and are taxed at the statutory income tax rate of 25%, unless otherwise specified.

The components of the income tax provision are:

SCHEDULE OF INCOME TAX PROVISION

---

| | | |
|:---|:---|:---|
|  | **As of** | **As of** |
|  | **June 30, 2025** | **June 30, 2024** |
| Current | $(170825) | $(289039) |
| Deferred | - | - |
| Total income tax provision | $(170825) | $(289039) |

---

The income tax provision is included in our consolidated statement of operations and comprehensive income.

The reconciliations of the statutory income tax rate and the Company's effective income tax rate are as follows:

SCHEDULE OF STATUTORY INCOME TAX RATE AND EFFECTIVE INCOME TAX RATE

---

| | | |
|:---|:---|:---|
|  | **For the six months ended June 30,** | **For the six months ended June 30,** |
|  | **2025** | **2024** |
| Net income before provision for income taxes | $(2451344) | $(24208) |
| PRC statutory tax rate | 25% | 25% |
| Income tax at statutory tax rate | (612835) | (6052) |
| Additional deduction for R&D expenses | (188480) |  |
| Effect of preferential tax of PRC subsidiary | 37849 |  |
| Changes in valuation allowance | 5360 | 167204 |
| Effect of income tax rate differences in jurisdictions other than mainland China | 690514 | 120809 |
| Tax effect of non-deductible items | 238417 | 7078 |
| Income tax expense | $170825 | $289039 |
| Effective tax rates | (7)% | (1194)% |

---

The current PRC EIT Law imposes a 10% withholding income tax for dividends distributed by foreign invested enterprises to their immediate holding companies outside the PRC. A lower withholding tax rate will be applied if there is a tax treaty arrangement between the PRC and the jurisdiction of the foreign holding company. Distributions to holding companies in Hong Kong that satisfy certain requirements specified by the PRC tax authorities, for example, will be subject to a 5% withholding tax rate.

As of June 30, 2025 and December 31, 2024, the Company had not recorded any withholding tax on the retained earnings of its foreign invested enterprises in the PRC, since the Company intends to reinvest its earnings to further expand its business in mainland China, and its foreign invested enterprises do not intend to declare dividends to their immediate foreign holding companies.

As of June 30, 2025 and December 31, 2024, there was no tax effect of temporary difference under ASC Topic 740 "Accounting for Income Taxes" that gives rise to deferred tax asset and liability.

As of June 30, 2025 and December 31, 2024, the Company has net operating loss carried forward of $5,427 and $166,003.

Accounting for uncertainty tax position

The Company did not identify significant unrecognized tax benefits for the the six months ended June 30, 2025 and 2024. The Company did not incur any interest or penalties related to potential underpaid income tax expenses. In general, the PRC tax authority has up to five years to conduct examinations of the Company's tax filings. Accordingly, the tax years from 2020 to 2024 of the Company's PRC subsidiaries remain open to examination by the taxing jurisdictions. The Company does not expect that its assessment regarding unrecognized tax positions will materially change over the next 12 months.

**16. EQUITY**

(a) Common stock and Additional Paid In Capital

The Company was established under the laws of the British Virgin Islands on October 25, 2021. The authorized number of Common stock was 50,000,000 with par value of $0.001 per share. As of December 31, 2021, the Company's shareholders have not funded the capital of the Common stock in British Virgin Islands and recorded subscription receivable as of December 31, 2021. The Company's shareholders have funded the $50,000 capital in British Virgin Islands in October and November, 2022.

Upon the Reorganization event described in Note 1, on March 14, 2022, the Company issued the 5,700,000 Common stock of common stock with par value of $0.001 in exchange for all outstanding common stock of Jiangsu Lobo. The Reorganization has been accounted for at historical cost and prepared on the basis as if the Reorganization had become effective as of the beginning of the first period presented in the accompanying financial statements of the Company.

On March 1, 2023, the Company effected a one thousand-for-one subdivision of shares to shareholders, which increased the total number of authorized and issued Common stock of 50,000 to 50,000,000, and decreased the par value of Common stock from $1 to $0.001. Then the shareholders surrendered a pro-rata number of Common stock of 44,300,000 to the Company for no consideration and thereafter cancelled. Following the surrender, the issued and outstanding Common stock were 5,700,000 of par value of $0.001 per share. All share and per share data as of December 31, 2022, and for the year ended December 31, 2022 are presented on a retroactive basis.

On September 15, 2023, the Company issued 700,000 shares on a pro-rata basis to the existing shareholders as stock dividend. The fair value of the stock dividend is determined to be $2,212,000 at $3.16 per ordinary share. As of October 15, 2023, the Company has 50,000,000 Common stock authorized, with 6,400,000 Common stock issued and outstanding. The stock dividend, all share and per share data as of December 31, 2022, and for the year ended December 31, 2022 are retroactively adjusted.

In March 21, 2024, the Company issued 1,380,000 shares of common stock at $4.00 per share for a total of $5,520,000 gross processed in its Initial Public Offering (IPO). Net proceeds from the IPO was $3,180,963 including $500,000 indemnification escrow funds recorded in restricted cash, net of expenses primarily including legal fees and audit fees.

On December 11, 2024, the Company issued 850,000 shares of common stock at par value of $0.001 per share to the investors of the convertible note. Refer to Note 13 for details.

In March 2025, the Company issued 500,000 shares of common stock for financial consulting service at fair value of $354,950 at $0.71 per share.

As disclosed in Note 13, during the six months ended June 30, 2025, the Company issued 2,762,744 shares of Common stock upon conversion of $1,421,069 convertible debt principal and accrued interest.

(b) Statutory Reserve

The Company is required to make appropriations to certain reserve funds, comprising the statutory surplus reserve and the discretionary surplus reserve, based on after-tax net income determined in accordance with generally accepted accounting principles of the PRC ("PRC GAAP"). Net income after taxation can be made up for the cumulative prior years' losses, if any before allocated to the "Statutory reserve". Appropriations to the statutory surplus reserve are required to be at least 10% of the after-tax net income determined in accordance with PRC GAAP until the reserve is equal to 50% of the entity's registered capital. Appropriations to the discretionary surplus reserve are made at the discretion of the board of directors of the Company. As of June 30, 2025 and December 31, 2024, statutory reserve provided were $279,200 and $464,637, respectively.

(c) Dividends

The Company through its PRC subsidiaries paid cash dividends of nil and nil to its shareholders for the years ended December 31, 2024 and 2023, respectively.

**17. CONCENTRATIONS**

Concentrations of Credit Risk

As of June 30, 2025 and December 31, 2024, cash and cash equivalents balances in the PRC are $1,424,211 and $1,379,434, respectively, which were primarily deposited in financial institutions located in Mainland China. Each bank account is insured by The People's Bank of China (the central bank of China) with the maximum limit of RMB500,000 (equivalent to $70,692). To limit exposure to credit risk relating to deposits, the Company primarily places cash and cash equivalent deposits with large financial institutions in China which management believes are of high credit quality and management also continually monitors the financial institutions' credit worthiness.

Concentrations of Customers

The following table sets forth information as to each customer that accounted for 10% or more of total accounts receivable as of June 30, 2025 and December 31, 2024:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **As of** | **As of** | **As of** | **As of** |
|  | **June 30,** | **June 30,** | **December 31,** | **December 31,** |
|  | **2025** | **2025** | **2024** | **2024** |
|  | **Amount** | **% of Total** | **Amount** | **% of Total** |
| A | $500249 | 20.01% | $\* | \*% |
| B | 489332 | 19.57% | 795879 | 52.82% |
| C | 378980 | 15.16% | \* | \*% |
| D | 374882 | 15.00% | \* | \*% |
| E | 262855 | 10.51% | \* | \*% |
| F | \* | \*% | 316273 | 20.99% |
| Total | $2006298 | 80.25% | $1112152 | 73.81% |

---

The following table sets forth information as to each customer that accounted for 10% or more of total revenue for the six months ended June 30, 2025 and 2024.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the six months ended June 30,** | **For the six months ended June 30,** | **For the six months ended June 30,** | **For the six months ended June 30,** |
|  | **2025** | **2025** | **2024** | **2024** |
| Customer | **Amount** | **% of Total** | **Amount** | **% of Total** |
| A | $3607257 | 29.83% | $3022476 | 24.91% |
| B | \* | \*% | 2050295 | 16.90% |
| C | \* | \*% | 1298049 | 10.70% |
| Total | $3607257 | 29.83% | $6370820 | 52.51% |

---

The following table sets forth information as to each supplier that accounted for 10% or more of accounts payable as of June 30, 2025 and December 31, 2024:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **As of** | **As of** | **As of** | **As of** |
|  | **June 30,** | **June 30,** | **December 31,** | **December 31,** |
|  | **2025** | **2025** | **2024** | **2024** |
| Suppliers | **Amount** | **% of Total** | **Amount** | **% of Total** |
| A | $404718 | 25.24% | $417196 | 18.81% |
| B | 330361 | 20.60% | 324219 | 14.62% |
| C | 230211 | 14.36% | 225931 | 10.19% |
| D | \* | \*% | 724946 | 32.69% |
| E | \* | \* % | 273999 | 12.35% |
| Total | $965290 | 60.20% | 1966291 | 88.66% |

---

\* represented the percentage below 10%

There following table sets forth information as to each supplier that accounted for 10% or more of total purchase during the six months ended June 30, 2025 and 2024:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the six months ended June 30,** | **For the six months ended June 30,** | **For the six months ended June 30,** | **For the six months ended June 30,** |
|  | **2025** | **2025** | **2024** | **2024** |
| Suppliers | **Amount** | **% of Total** | **Amount** | **% of Total** |
| A | $1266176 | 10.82% | $\* | \*% |
| B | \* | \*% | 2301768 | 17.54% |
| C | \* | \*% | 1811820 | 13.80% |
| D | \* | \*% | 1438856 | 10.96% |
| Total | $1266176 | 10.82% | 5552444 | 42.30% |

---

**18. SUBSEQUENT EVENTS**

The Company has performed an evaluation of subsequent events through September 3, 2025, which was the date of the issuance of the consolidated financial statements, and determined that no events would have required adjustment or disclosure in the consolidated financial statements other than that discussed above.

## Exhibit 99.2

**Exhibit 99.2**

**MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND<br> RESULTS OF OPERATIONS**

*The information in this report contains forward-looking statements. The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our condensed consolidated financial statements included elsewhere in this report. This discussion contains forward-looking statements reflecting our current expectations that involve risks and uncertainties. See "Disclosure Regarding Forward-Looking Statements" for a discussion of the uncertainties, risks, and assumptions associated with these statements. Actual results and the timing of events could differ materially from those discussed in our forward-looking statements as a result of many factors, including those set forth elsewhere in this report.*

**Overview**

Our vision is to provide commuters with safer, smarter, affordable and high-quality electric mobility and robotic products, empower communities by enabling people to thrive in the green mobility revolution. Our mission is to drive innovation and become a market leader in our industry by leveraging our design and intelligent technology to advance green mobility. We are dedicated to sustainability, committing to eco-friendly practices and supporting global climate initiatives and promoting the prosperous development of the green economy.

LOBO EV is an electric mobility products manufacturer. Its products include e-bicycles, electric motorcycles, e-tricycles, electric off-road four-wheeled shuttles such as golf carts and elderly scooters, solar-powered vehicles as well as smart products, like robotic lawn mower, etc. By leveraging cutting-edge technology and sustainable practices, LOBO aims to promote eco-friendly transportation options that reduce carbon footprints and enhance energy efficiency.

**Key Factors that Affect Operating Results**

We believe the following key factors may affect our financial condition and results of operations:

● our ability to increase our sales volume globally;

● our ability to enhance our operational efficiency; and

● our ability to develop new models of electric vehicles.

**Results of Operations**

 ****

***Six Months ended June 30, 2025 and 2024***

The following table sets forth a summary of our consolidated statements of operations and comprehensive income for the six months ended June 30, 2025 and 2024, respectively. This information should be read together with our consolidated financial statements and related notes included elsewhere in this prospectus. The results of operations in any period are not necessarily indicative of our future trends.

---

| | | |
|:---|:---|:---|
|  | **Six Months Ended** | **Six Months Ended** |
|  | **June 30,** | **June 30,** |
|  | **2025** | **2024** |
| Revenues | $12091762 | $12132668 |
| Cost of revenues | 10149305 | 10768717 |
| Gross Profit | **1942457** | **1363951** |
| Operating expenses |  |  |
| Selling and marketing expenses | 338080 | 329471 |
| General and administrative expenses | 1701458 | 878547 |
| Research and development expenses | 1053921 | 245642 |
| Total operating expenses | **3093459** | **1453660** |
| Operating (loss)/income | **(1151002)** | **(89709)** |
| Other expenses (income) |  |  |
| Interest expense | 1437601 | (19964) |
| Gain on disposal of subsidiaries | (50545) |  |
| Other income | (86714) | (45537) |
| Total other income, net | 1300342 | (65501) |
| (loss)/Income before income tax expense | **(2451344)** | **(24208)** |
| Income tax expense | 170825 | 289039 |
| Net (loss)/Income | **(2622169)** | **(313247)** |
| Net (loss)/Income | (2622169) | (313247) |
| Less: Net (loss)/income attributable to non-controlling interest | - | 10729 |
| Net (loss)/income attributable to LOBO EV Technologies LTD | **(2622169)** | **(302518)** |

---

**Segment Information**

On December 11, 2024, the Company completed the disposal of Guangzhou LOBO, which was its software royalties and development and design services segment. The Company has determined that it operates in one operating segment: electric vehicles and accessories sales segment.

As the Company's long-lived assets are substantially all located in the PRC and all of the Company's revenues and expenses are derived from within the PRC, no geographical segments are presented.

The following tables present the summary of each reportable segment's revenue and income, which are considered as segment operating performance measures, for the six months ended June 30, 2025 and 2024:

---

| | | | |
|:---|:---|:---|:---|
|  | **For the Period Ended June 30, 2025** | **For the Period Ended June 30, 2025** | **For the Period Ended June 30, 2025** |
|  | **Electric vehicles and accessories sales**<br>**Segment** | **Software royalties and development and design services**<br>**Segment** |<br>**Consolidated** |
| Current assets | $18856305 | $- | $18856305 |
| Non-current assets | 2424866 |  | 2424866 |
| Revenues | 12091762 |  | 12091762 |
| Depreciation and amortization | 364331 | 0.00 | 364331 |
| Segment income before tax | (2451344) | $- | (2451344) |
| Segment gross profit margin | 16% | 0% | 16% |
| Net loss | (2622169) | $- | (2622169) |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** |
|  | **Electric vehicles and accessories sales**<br>**Segment** | **Software royalties and development and design services**<br>**Segment** |<br>**Consolidated** |
| Current assets | $20164937 | $188900 | $20353837 |
| Non-current assets | 2757808 | 1347801 | 4105609 |
| Revenues | 12076334 | 56334 | 12132668 |
| Depreciation and amortization | 89791 | 413978 | 503769 |
| Segment income (loss) before tax | 452479 | (476687) | (24208) |
| Segment gross profit margin | 14% | -600% | 11% |
| Net income (loss) | $163440 | (476687) | (313247) |

---

*Depreciation and amortization*

The decrease of depreciation and amortization was primarily due to the sale of Guangzhou Lobo and its amortization expense.

*Segment income before tax*

The income before tax in the vehicles and accessories sales segment decreased by $2,903,823 to loss before tax of $2,451,344 for the six months ended June 30, 2025, from income before tax of $452,479 for the six months ended June 30, 2024.

**Components of Results of Operations**

*Revenues*

Our total revenues for the six months ended June 30, 2025 and 2024 were $12,091,762 and $12,132,668, respectively. The revenues of the electric vehicles and accessories sales increased by $15,428 to $12,091,762 for the six months ended June 30, 2025, from $12,076,334 for the six months ended June 30, 2024.

A detailed breakdown of sales revenues and units sold in the electric vehicles and accessories sales segment for the six months ended June 30, 2025 and 2024 is set forth below:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **As of** | **As of** | **Variance** | **Variance** |
| <br>**Electric vehicles and accessories sales revenues** | **June 30, 2025** | **June 30, 2024** | **Amount** | **%** |
| Two-wheeled E-bicycles | $6659086 | $5937223 | $721863 | 12.16% |
| Two-wheeled E-Mopeds | 36778 | 93775 | (56997) | (60.78)% |
| Three-wheeled Electric Vehicles | 3083449 | 2406992 | 676457 | 28.10% |
| Three-wheeled Solar Electric Vehicles |  | 7690 | (7690) | 100.00% |
| Four-Wheeled Solar Electric off-highway Shuttles | 351579 | 1095 | 350484 | 100.00% |
| Four-Wheeled Electric off-highway Shuttles |  | 238573 | (238573) | (100.00)% |
| Batteries | 1732497 | 2579825 | (847328) | (32.84)% |
| Parts and Accessories | 228373 | 811161 | (582788) | (71.85)% |
| **Total** | $12091762 | $12076334 | $15428 | 0.13% |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **As of** | **As of** | **Variance** | **Variance** |
| <br>**Electric vehicles and accessories units sold** | **June 30, 2025** | **June 30, 2024** | **Amount** | **%** |
| Two-wheeled E-bicycles | 27007 | 25147 | 1860 | 7.40% |
| Two-wheeled E-Mopeds | 106 | 554 | (448) | (80.87)% |
| Three-wheeled Electric Vehicles | 8847 | 7765 | 1082 | 13.93% |
| Three-wheeled Solar Electric Vehicles |  | 15 | (15) | 100.00% |
| Four-Wheeled Solar Electric off-highway Shuttles | 617 | 1 | 616 | 100.00% |
| Four-Wheeled Electric off-highway Shuttles |  | 322 | (322) | (100.00)% |
| Batteries | 4302 | 4707 | (405) | (8.60)% |
| Parts and Accessories | 32386 | 119335 | (86949) | (72.86)% |
| **Total** | 73265 | 157846 | (84581) | (53.58)% |

---

*Cost of revenues*

Cost of revenues consists primarily of manufacturing and purchase cost of raw materials, battery packs, depreciation, maintenance, and other overhead expenses. Our cost of revenues decreased by $619,412, or 6%, to $10,149,305 for the six months ended June 30, 2025 from $10,768,717 for the six months ended June 30, 2024.

*Gross profit*

Gross profits for the six months ended June 30, 2025 and 2024 were $1,942,457 and $1,363,951, representing 16% and 11% of revenues, respectively.

*Selling and marketing expenses*

Our selling and marketing expenses primarily consist of salaries and benefits, office expense, and freight expense. Our selling and marketing expenses were $338,080 and $329,471 for the six months ended June 30, 2025 and 2024, respectively. The selling and marketing expenses increased primarily due to higer salary expenses were incurred.

*General and administrative expenses*

Our general and administrative expenses consist primarily of salaries and welfare expenses, rent expenses, and depreciation. Our general and administrative expenses were $1,701,458 and $878,547 for the six months ended June 30, 2025 and 2024, the increase is primarily due to the increase in professional fees in the six months ended June 30, 2024.

*Research and development expenses*

Research and development expenses are related to certain software research and development for internal use. Research and development expenses primarily consist of employee salaries and benefit costs. Research and development expenses were $1,053,921 and $245,642 for the six months ended June 30, 2025 and 2024, respectively, the increase is primarily due to the Company's significant effort in developing innovative and intellegent technology.

*Income tax expense*

The PRC enterprise income tax ("EIT") is calculated based on the taxable income determined under the applicable EIT Law and its implementation rules, which became effective on January 1, 2008. The EIT Law applies a uniform 25% income tax rate for all resident enterprises in China. Income tax expenses amounted to $170,825 and $289,039 for the six months ended June 30, 2025 and 2024, respectively. The change resulted from the change in our subsidiaries' taxable income .

*Net income*

As a result of the foregoing, our net loss for the six months ended June 30, 2025 and 2024, were $2,622,169 and $313,247, respectively. Increase is also due to the debt discount of $1,421,069 was amortized into interest expense upon convertible debt and accrued interest converted into Common stock.

**Liquidity and Capital Resources**

As of June 30, 2025, we had cash and cash equivalents of $1,424,211, and a total working capital of $6,773,047.

We believe that we will generate sufficient cash flows to fund our operations and to meet our obligations on a timely basis for the next 12 months assuming the successful implementation of our business plans.

To utilize the proceeds from the IPO, we may make additional loans or capital contributions to our PRC subsidiaries. PRC laws and regulations allow an offshore holding company to provide funding to our PRC subsidiaries only through loans or capital contributions, subject to the filing or approval of government authorities and limits on the amount of capital contributions and loans. Subject to satisfaction of applicable government registration and approval requirements, we may extend inter-company loans to our PRC subsidiaries or make additional capital contributions to fund their capital expenditures or working capital. For an increase of registered capital, our PRC subsidiaries need to file such change of registered capital with the State Administration for Market Regulation (the "SAMR") or its local counterparts through the enterprise registration system and the national enterprise credit information publicity system, and the SAMR or its local counterparts will then submit such information to the China's Ministry of Commerce or its local counterparts. If the holding company provides funding to our PRC subsidiaries through loans, (a) in the event that the foreign debt management mechanism as provided in the Measures for Foreign Debts Registration and Administration and other relevant rules applies, the balance of such loans cannot exceed the difference between the total investment and the registered capital of the subsidiaries and we will need to register such loans with the SAFE or its local branches, or (b) in the event that the mechanism as provided in the Notice of the People's Bank of China on Matters concerning the Macro-Prudential Management of Full-Covered Cross-Border Financing, or PBOC Notice No. 9, applies, the balance of such loans will be subject to the risk-weighted approach and the net asset limits and we will need to file the loans with the SAFE in its information system pursuant to applicable requirements and guidelines issued by the SAFE or its local branches.

**Cash Flows**

The following table summarizes our cash flows for the periods indicated:

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| | | |
|:---|:---|:---|
|  | **For the Six Months Ended June 30,** | **For the Six Months Ended June 30,** |
|  | **2025** | **2024** |
| Net cash used in operating activities | $(1213756) | $(1112695) |
| Net cash provided by (used in) investing activities | 131720 | (765377) |
| Net cash provided by financing activities | 611698 | 2516551 |
| Effect of exchange rate changes | 4959 | 6367 |
| **Net decrease/increase in cash and cash equivalents** | $**(465379)** | $**644846** |

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*Operating Activities*

Net cash used in operating activities was $1,213,756 for the six months ended June 30, 2025, primarily derived from (a) an increase of inventories of $1,726,797, and (b) an decrease of advance from customers of $1,212,522 , (c) an increase of accounts receivable of $952,628, offset by (a) an increase in Common stock issued for services of $354,950, (b) an increase of amortization of debt discount upon debt conversion of $1,421,069, and (c) a decrease of prepaid expenses of $3,358,866. in prepaid expenses was primarily due to the prepayment to vendors.

Net cash used in operating activities was $1,112,695 for the six months ended June 30, 2024, primarily derived from (a) an increase of inventories of $3,304,383; (b) an increase of prepaid expenses of $679,115, offset by (a) an increase of advance from customers of $1,114,290, and (b) an increase of VAT payable of $1,009,699. The increase in VAT payable was primarily due to the increase of revenues. The increase in prepaid expenses was primarily due to the prepayment to vendors.

*Investing Activities*

For the six months ended June 30, 2025, net cash provided by investing activities was $131,720, which was primarily due to proceeds received from sale of Beijing LOBO of $206,822.

For the six months ended June 30, 2024 , net cash used in investing activities was $765,377, which was primarily due to purchase of intangible assets of $503,617, interest-free loan to related parties of $7,123,895, offset by interest-free loans repaid by related parties of $7,102,415.

*Financing Activities*

For the six months ended June 30, 2025, net cash provided by financing activities was $611,698, primarily from the proceeds of bank load of $1,481,385.

For the six months ended June 30, 2024 , net cash provided by financing activities was $2,516,551, primarily due to $2,696,327 net proceeds from IPO.

**Trend Information**

We are not aware of any trends, uncertainties, demands, commitments or events that are reasonably likely to have a material effect on our net revenues, net income, profitability, liquidity or capital resources, or that would cause reported financial information not necessarily to be indicative of future operating results or financial condition.

**Off-Balance Sheet Arrangements**

We did not have during the periods presented, and we do not currently have, any off-balance sheet financing arrangements or any relationships with unconsolidated entities or financial partnerships, including entities sometimes referred to as structured finance or special purpose entities, that were established for the purpose of facilitating off-balance sheet arrangements or other contractually narrow or limited purposes.

**Tabular Disclosure of Contractual Obligations**

*Commitments and Contingencies*

From time to time, we may be subject to certain legal proceedings, claims and disputes that arise in the ordinary course of business. Although the outcomes of these legal proceedings cannot be predicted, we do not believe these actions, in the aggregate, will have a material adverse impact on our financial position, results of operations or liquidity.

*Operating Lease*

Our operating lease contractual obligations as of June 30, 2025 were as follows:

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| | |
|:---|:---|
| **The periods ending June 30,** | |
| 2025 | $778706 |
| 2026 | 359090 |
| 2027 | 161932 |
| 2028 | 97334 |
| Total minimum lease payments | 1397062 |
| Less: present value discount | (52224) |
| Present value of minimum lease payments | $1344838 |

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Other than those shown above, we did not have any significant capital and other commitments, long-term obligations, or guarantees as of June 30, 2025.