LOBO 6-K
Lobo Technologies Ltd. (LOBO)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of September 2026
Commission File Number: 001-41981
(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 TECHNOLOGIES LTD., a British Virgin Islands business company (the “Company”) is furnishing this Form 6-K to provide six-month interim financial statements.
Financial Statements and Exhibits.
Exhibits:
| 2 |
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 TECHNOLOGIES LTD. | ||
| Date: September 18, 2026 | By: | /s/ Huajian Xu |
| Name: | Huajian Xu | |
| Title: | Chief Executive Officer | |
| 3 |
Exhibit 99.1
LOBO TECHNOLOGIES LTD
UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS
(In U.S. dollars except for number of shares)
| As of | ||||||||
| June 30, 2026 | December 31, 2025 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | $ | ||||||
| Accounts receivable, net | ||||||||
| Inventories, net | ||||||||
| Short-term investments | ||||||||
| Prepaid expenses and other current assets | ||||||||
| Total current assets | ||||||||
| Property and equipment, net | ||||||||
| Intangible assets, net | ||||||||
| Operating lease right-of-use assets, net | ||||||||
| Long-term loan receivable | ||||||||
| Deferred tax assets | ||||||||
| Total Assets | ||||||||
| Liabilities and Shareholders’ Equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | $ | ||||||
| Contract liability | ||||||||
| Other current payables | ||||||||
| Taxes payable | ||||||||
| Amounts due to related parties | ||||||||
| Short-term loans | ||||||||
| Operating lease liabilities, current | ||||||||
| Total current liabilities | ||||||||
| Long-term loan | ||||||||
| Deferred tax liabilities | ||||||||
| Operating lease liabilities, non-current | ||||||||
| Total liabilities | ||||||||
| Commitments and contingencies | ||||||||
| Equity: | ||||||||
| Class A Ordinary shares (US$ par value per share; and shares authorized as of June 30, 2026 and December 31, 2025; and shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively) | ||||||||
| Class B Ordinary shares (US$ par value per share; and shares authorized as of June 30, 2026 and December 31, 2025; and shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively) | ||||||||
| Additional paid-in capital | ||||||||
| Accumulated deficit | ( | ) | ( | ) | ||||
| Accumulated other comprehensive income/(loss) | ( | ) | ||||||
| Statutory reserve | ||||||||
| Total shareholders’ equity | ||||||||
| Total Liabilities and Equity | $ | $ | ||||||
The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.
| F-1 |
LOBO 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, | ||||||||
| 2026 | 2025 | |||||||
| Revenues | $ | $ | ||||||
| Cost of revenues | ||||||||
| Gross Profit | ||||||||
| Operating expenses | ||||||||
| Selling and marketing expenses | ||||||||
| General and administrative expenses | ||||||||
| Research and development expenses | ||||||||
| Total operating expenses | ||||||||
| Operating loss | ( | ) | ( | ) | ||||
| Other (expenses)/income | ||||||||
| Interest expense | ( | ) | ( | ) | ||||
| Gain on disposal of subsidiaries | ||||||||
| Other (expenses)/income | ( | ) | ||||||
| Total other (expenses)/income, net | ( | ) | ( | ) | ||||
| Loss before income tax expense | ( | ) | ( | ) | ||||
| Income tax (benefit)/expense | ( | ) | ||||||
| Net Loss | ( | ) | ( | ) | ||||
| Net Loss | ( | ) | ( | ) | ||||
| Foreign currency translation adjustments | ||||||||
| Total comprehensive loss | ( | ) | ( | ) | ||||
| Net loss per share, basic and diluted | $ | ) | $ | ) | ||||
| Weighted average shares outstanding, basic and diluted | ||||||||
The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements
| F-2 |
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
(In U.S. dollars except for number of shares)
| Common stock | Additional paid-in | Statutory | Retained earnings (Accumulated | Accumulated other comprehensive | Total shareholders’ | |||||||||||||||||||||||
| Share | Amount | capital | reserves | deficit) | loss | equity | ||||||||||||||||||||||
| Balance as of December 31, 2024 | ( | ) | ||||||||||||||||||||||||||
| Common stock issued for conversion of convertible notes | ||||||||||||||||||||||||||||
| Common stock issued for services | ||||||||||||||||||||||||||||
| Net loss | ( | ) | ( | ) | ||||||||||||||||||||||||
| Appropriation to statutory reserves | ( | ) | ||||||||||||||||||||||||||
| Foreign currency translation adjustments | ||||||||||||||||||||||||||||
| Disposal of subsidiary | ( | ) | ( | ) | ||||||||||||||||||||||||
| Balance as of June 30, 2025 | ( | ) | ( | ) | ||||||||||||||||||||||||
| Class A | Class B | Additional paid-in | Statutory | Accumulated | Accumulated other comprehensive | Total shareholders’ | ||||||||||||||||||||||||||||||
| Share | Amount | Share | Amount | capital | reserves | deficit | loss | equity | ||||||||||||||||||||||||||||
| Balance as of December 31, 2025 | ( | ) | ( | ) | ||||||||||||||||||||||||||||||||
| Issuance of Class A ordinary shares and warrants, net of offering costs | ||||||||||||||||||||||||||||||||||||
| Pre-Funded Warrant exercise | ||||||||||||||||||||||||||||||||||||
| Net loss | ( | ) | ( | ) | ||||||||||||||||||||||||||||||||
| Foreign currency translation adjustments | ||||||||||||||||||||||||||||||||||||
| Balance as of June 30, 2026 | ( | ) | ||||||||||||||||||||||||||||||||||
The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.
| F-3 |
LOBO TECHNOLOGIES LTD
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In USD)
| For the six months ended June 30, | ||||||||
| 2026 | 2025 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
| Net loss | ( | ) | ( | ) | ||||
| Adjustment to reconcile net loss to net cash used in operating activities | ||||||||
| Depreciation and amortization | ||||||||
| Common stock issued for services | ||||||||
| Investment loss/(income) | ( | ) | ||||||
| Gain on disposal of subsidiaries | ( | ) | ||||||
| Amortization of Convertible Note issuance cost and debt discount upon conversion | ||||||||
| Amortization of operating lease right-of-use assets | ||||||||
| Changes in Operating Assets and Liabilities | ||||||||
| Accounts receivable, net | ( | ) | ( | ) | ||||
| Inventories, net | ( | ) | ( | ) | ||||
| Prepaid expenses and other current assets | ||||||||
| Deferred tax asset | ||||||||
| Deferred tax liabilities | ( | ) | ||||||
| Accounts payable | ( | ) | ( | ) | ||||
| Advance from customers | ( | ) | ||||||
| Other current payables | ( | ) | ( | ) | ||||
| Taxes payable | ||||||||
| Operating lease Liabilities | ( | ) | ||||||
| Net cash used in operating activities | ( | ) | ( | ) | ||||
| CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||
| Purchase of short-term investment | ( | ) | ( | ) | ||||
| Sales of short-term investment | ||||||||
| Proceeds from disposal of subsidiaries | ||||||||
| Purchase of property and equipment | ( | ) | ( | ) | ||||
| Payments for loans advanced to third parties | ( | ) | ||||||
| Net cash (used in)/provided by investing activities | ( | ) | ||||||
| CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
| Proceeds from issuance of Class A ordinary shares and warrants | ||||||||
| Proceeds from exercise of Pre-Funded Warrants | ||||||||
| Proceeds of interest-free loan from related parties | ||||||||
| Repayments of interest-free loan to related parties | ( | ) | ( | ) | ||||
| Proceeds from short-term loan | ||||||||
| Repayments of short-term loans | ( | ) | ||||||
| Repayments of long-term loans | ( | ) | ( | ) | ||||
| Net cash provided by financing activities | ||||||||
| - | ||||||||
| Effect of exchange rate changes on cash and cash equivalents | ||||||||
| NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS | ( | ) | ||||||
| CASH AND CASH EQUIVALENTS , beginning of period | ||||||||
| CASH AND CASH EQUIVALENTS, end of period | ||||||||
| SUPPLEMENTAL CASH FLOW INFORMATION | ||||||||
| Cash paid during the period for: | ||||||||
| Income taxes | ||||||||
| Interest | ( | ) | ||||||
| NON-CASH TRANSACTIONS | ||||||||
| Common stock issued upon conversion of debt and accrued interest | ||||||||
| Offsetting of the consideration receivable from disposal of subsidiary against other current payables | ||||||||
| Offsetting of account receivables against amounts due to related parties | ||||||||
The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.
| F-4 |
LOBO TECHNOLOGIES LTD
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. ORGANIZATION AND PRINCIPAL ACTIVITIES
LOBO TECHNOLOGIES LTD. (“LOBO”) was incorporated as a business 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 its subsidiaries in Hong Kong, the United States and Kenya. 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. In 2026, the Company commenced an AI infrastructure services business by providing customers with access to third-party large language model application programming interface (“API”) computing resources.
The consolidated financial statements reflect the activities of LOBO and each of the following entities:
| Name | Date of Incorporation | Place of incorporation | Percentage of effective ownership | Principal Activities | ||||||||||
| Wholly owned subsidiaries | ||||||||||||||
| LOBO TECHNOLOGIES LTD (LOBO BVI) | % | |||||||||||||
| LOBO Holdings Ltd (LOBO HK) | % | |||||||||||||
| LOBO MATRIX INVEST LTD (LOBO MATRIX) | % | |||||||||||||
| LOBO Scientific INC. (LOBO Scientific) | % | |||||||||||||
| Jiangsu LOBO Electric Vehicle Co. Ltd (Jiangsu LOBO) | % | |||||||||||||
| Tianjin LOBO Intelligent Robot Co., Ltd (Tianjin LOBO) | % | |||||||||||||
| Tianjin Bibosch Intelligent Technologies Co., Ltd (Tianjin Bibosch) | % | |||||||||||||
| Wuxi Zella Technology Trading Co., Ltd. (Wuxi Zella) | % | |||||||||||||
| Dezhou LOBO Intelligent Manufacturing Co., Ltd. (Dezhou LOBO) | % | |||||||||||||
| LOBO (Hangzhou) Data Service Co., Ltd. | % | |||||||||||||
| LOBO TECHNOLOGIES (KENYA) LIMITED | % | |||||||||||||
| F-5 |
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, 2025. The results of operations for the six months ended June 30, 2026 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, 2025 and notes thereto and other pertinent information contained in our Annual Report on Form 20-F as filed with the SEC.
(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, and long-lived assets, valuation allowance for deferred tax assets and uncertain tax positions. 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.
| F-6 |
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – continued
The
(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, 2026 and December 31, 2025.
Short-term investments
Short-term investments include investment in publicly traded stocks as of June 30, 2026 and December 31, 2025. The publicly traded stocks have readily determinable fair values, and are recorded at fair value with changes in fair value recorded in other income in the consolidated statement of operations and comprehensive income.
For the six month ended June 30, 2026 and 2025, the Company did not record any impairment on the short-term investment.
| As of June 30, 2026 | As of December 31, 2025 | |||||||||||||||||||||||||||||||
| Fair Value Measurements | Fair Value Measurements | |||||||||||||||||||||||||||||||
| Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
| Assets | ||||||||||||||||||||||||||||||||
| Publicly traded stocks | ||||||||||||||||||||||||||||||||
| Total | ||||||||||||||||||||||||||||||||
As
of June 30, 2026, the fair value of the publicly traded stocks was $
(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 the allowance for credit losses assessed to be immaterial as of June 30, 2026 and December 31, 2025.
| F-7 |
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
(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 | ||
| Furniture, fixtures and office equipment | ||
| Vehicles |
(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
| F-8 |
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, 2026 and 2025.
(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.
| F-9 |
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – continued
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, 2026 and 2025 for the electric vehicles and accessories segment.
Revenue from AI infrastructure services
In 2026, the Company commenced an AI infrastructure services business by providing customers with access to third-party large language model API computing resources. Revenue is recognized at a point in time when the related product keys are delivered to and accepted by the customer, at which time control transfers to the customer. The Company recognizes such revenue on a gross basis as it acts as the principal in the arrangement, including controlling the API computing resources before transferring to the customer, bearing the risk associated with unused resources, and having discretion in establishing the selling price.
The Company purchases third-party API computing resources, which represent contractual rights to access and consume cloud computing services rather than tangible products and therefore do not qualify as inventory under ASC 330. In accordance with ASC 340-10-05-4, such pre-purchased API computing resources are initially recorded as prepaid expenses within other current assets and are recognized as cost of services as the related resources are transferred to customers and the corresponding revenue is recognized.
Accounts receivable represent revenue recognized for the amounts invoiced when the Company has satisfied its performance obligation and has unconditional right to payment.
A contract asset is recorded when the Company has transferred products or services to the customer before payment is received or is due, and the Company’s right to consideration is conditional on future performance in the contract.
The Company has no contract assets as of June 30, 2026 and December 31, 2025.
A
contract liability exists when the Company has received consideration but has not transferred the related goods or services to the customer.
Contract liabilities primarily consist of advances from customers. As of June 30, 2026 and December 31, 2025, the Company recognized
advances from customers amounted to $
(n) Research and Development Expenses
Research
and development (“R&D”) expenses are expensed as incurred. R&D expenses primarily consist of material costs. R&D
expenses were $
(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.
| F-10 |
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 RMB
(p) Segment Reporting
The Company operates and manages its business through two operating segments: (1) electric vehicles and accessories sales, and (2) AI infrastructure services. The electric vehicles and accessories sales segment primarily manufactures and sells electric vehicles and related accessories to customers. The AI infrastructure services segment primarily generates revenue from AI infrastructure services.
The Company’s Chief Executive Officer is the chief operating decision-maker (“CODM”). The CODM regularly reviews the financial performance of each operating segment and uses different performance measures for each segment based on the nature and stage of development of the respective businesses. For the electric vehicles and accessories sales segment, the CODM primarily uses segment net income to evaluate the segment’s financial performance and to make decisions regarding resource allocation. For the AI infrastructure services segment, the CODM primarily uses gross profit as the performance measure because the segment is in the early stages of commercialization. Gross profit is defined as revenue less cost of revenues.
These measures are also considered by the CODM in determining whether to allocate or reinvest resources between the segments, including for potential acquisitions or other strategic investments, or to distribute profits to shareholders through dividends. In addition, the CODM considers these measures in evaluating the Company’s competitive position and benchmarking the performance of each segment against relevant competitors.
As the Company’s long-lived assets are substantially all located in the PRC and substantially all of the Company’s revenues and expenses are derived from within the PRC, no geographical segments are presented.
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.
(r) 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.
| F-11 |
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – continued
(s) 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.
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) Leases
On January 1, 2019, the Company adopted FASB ASC Topic 842, “Leases,” (“ASC Topic 842”) which requires that a lessee recognize in the consolidated balance sheets a lease liability and a corresponding right-of-use asset, including for those leases that the Group currently classifies as operating leases. The right-of-use asset and the lease liability were initially measured using the present value of the remaining lease payments.
The Company reviews all relevant contracts to determine if the contract contains a lease at its inception date. A contract contains a lease if the contract conveys to the Company the right to control the use of an underlying asset for a period of time in exchange for consideration. If the Company determines that a contract contains a lease, it recognizes, in the consolidated balance sheets, a lease liability and a corresponding right-of-use asset on the commencement date of the lease. The lease liability is initially measured at the present value of the future lease payments over the lease term using the rate implicit in the lease or, if not readily determinable, the Company’s secured incremental borrowing rate.
Operating lease expense is recognized on a straight-line basis over the lease term and is included in general and administrative expenses, cost of revenue in the Company’s consolidated statements of operation and comprehensive income.
(v) 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 November 2024, the FASB issued ASU No. 2024-03, Income Statement — Reporting Comprehensive Income — Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses (“ASU 2024-03”) which requires detailed disclosures in the notes to financial statements disaggregating specific expense categories and certain other disclosures to provide enhanced transparency into the nature and function of expenses. The FASB further clarified the effective date in January 2025 with the issuance of ASU 2025-01, Income Statement — Reporting Comprehensive Income — Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date (“ASU 2025-01”). ASU 2024-03 is effective for annual periods beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027, with early adoption permitted. The requirements should be applied on a prospective basis while retrospective application is permitted. The Company does not expect to adopt this guidance early and does not expect the adoption of this ASU to have a material impact on its future consolidated financial statements.
| F-12 |
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – continued
In July 2025, the FASB issued ASU 2025-05, Credit Losses (Topic 326): Simplifications to the Accounting for Short-Term Receivables and Contract Assets. The update introduces practical expedients that allow entities to simplify the estimation of expected credit losses for accounts receivable and contract assets by permitting certain assumptions regarding current conditions and expectations of future economic conditions. The amendments are intended to reduce the complexity and cost of applying the current expected credit loss model for short-term financial assets. The amendments in this update are effective for fiscal years beginning after December 15, 2026, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact of adopting this guidance on its consolidated financial statements. The Company does not currently expect the adoption of this guidance to have a material impact on its consolidated financial statements.
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, 2026 and 2025, respectively:
| For the six months end June 30, | ||||||||
| 2026 | 2025 | |||||||
| Revenues | ||||||||
| Electric vehicles and accessories sales | $ | $ | ||||||
| AI infrastructure services | ||||||||
| Total revenues accounted for under ASC Topic 606 | $ | $ | ||||||
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 AI infrastructure service consist primarily of API computing resources cost. The following table identifies the disaggregation of the Company’s cost of revenues for the six months ended June 30, 2026 and 2025, respectively:
| For the six months end June 30, | ||||||||
| 2026 | 2025 | |||||||
| Cost of revenues | ||||||||
| Electric vehicles and accessories | $ | $ | ||||||
| AI infrastructure services | ||||||||
| Total cost of revenues | $ | $ | ||||||
| F-13 |
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 | ||||||||
| June 30, 2026 | December 31, 2025 | |||||||
| Accounts receivable | $ | $ | ||||||
5. INVENTORIES, NET
Inventories consisted of the following:
| As of | ||||||||
| June 30, 2026 | December 31, 2025 | |||||||
| Finished goods(1) | $ | $ | ||||||
| Raw materials(2) | ||||||||
| Total Inventory | $ | $ | ||||||
| (1) | |
| (2) |
Based on historical observations, the write-downs were immaterial to be recognized for the inventories for the six months ended June 30, 2026 and for the year ended December 31, 2025.
6. PREPAID EXPENSES AND OTHER CURRENT ASSETS
Prepaid expenses and other current assets consisted of the following:
| As of | ||||||||
| June 30, 2026 | December 31, 2025 | |||||||
| Prepayment to vendors | $ | $ | ||||||
| VAT input tax | ||||||||
| Rent deposit | ||||||||
| Prepaid service fees | ||||||||
| Advances to non-director/officer employees | ||||||||
| Others | ||||||||
| Prepaid expenses and other current assets | $ | $ | ||||||
| F-14 |
7. PROPERTY AND EQUIPMENT, NET
Property and equipment, net consisted of the following:
| As of | ||||||||
| June 30, | December 31, | |||||||
| 2026 | 2025 | |||||||
| Production line for e-bicycles | $ | $ | ||||||
| Furniture, fixtures and office equipment | ||||||||
| Vehicles | ||||||||
| Less: accumulated depreciation | ( | ) | ( | ) | ||||
| Property and equipment, net | $ | $ | ||||||
For
the six months ended June 30, 2026 and 2025, depreciation expense amounted to
8. INTANGIBLE ASSETS, NET
Intangibles, net consisted of the following:
| As of | ||||||||
| June 30, | December 31, | |||||||
| 2026 | 2025 | |||||||
| Purchased software | $ | $ | ||||||
| Capitalized software development costs | ||||||||
| Less: accumulated amortization | ( | ) | ( | ) | ||||
| Intangible assets, net | $ | $ | ||||||
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
For
the six months ended June 30, 2026 and 2025, amortization expense amounted to $
The following summarizes total future amortization expenses of the purchased software at June 30, 2026:
| Twelve months period ended June 30 , | ||||
| 2027 | ||||
| 2028 | ||||
| 2029 | ||||
| 2030 | ||||
| 2031 and after | ||||
| Total future amortization expense | ||||
| F-15 |
9. OTHER CURRENT PAYABLES
Other current payables consisted of the following:
| As of | ||||||||
| June 30, 2026 | December 31, 2025 | |||||||
| Employee compensation payable | $ | $ | ||||||
| Interest payable | ||||||||
| Other unit payments payable(1) | ||||||||
| Others | ||||||||
| Total other current payables | $ | $ | ||||||
| (1) | |
Beijing
Lobo was formerly a subsidiary of the Company and was disposed of on April 21, 2025. As of June 30, 2026 and December 31, 2025, the outstanding
balance of interest-free intercompany fund borrowings prior to disposal amounted to $
Xia
Xing was formerly the legal representative and shareholder of Wuxi Jinbang, which was disposed of on December 30, 2024. As of June
30, 2026 and December 31, 2025, the outstanding balance of interest-free intercompany fund borrowings prior to disposal amounted
to $ and $ |
10. TAXES PAYABLE
Taxes payable consisted of the following:
| As of | ||||||||
| June 30, | December 31, | |||||||
| 2026 | 2025 | |||||||
| Income tax payable | $ | $ | ||||||
| VAT Payable | ||||||||
| Other tax payable | ||||||||
| Total tax payable | $ | $ | ||||||
11. OPERATING LEASE LIABILITIES AND RIGHT OF USE ASSETS
Operating Leases
The Company measured and recorded right of use assets and corresponding operating lease liabilities at the lease commencement dates.
The
Company has made operating lease payments in the amount of $
Operating lease liabilities consist of:
| As of | ||||||||
| June 30, | December 31, | |||||||
| 2026 | 2025 | |||||||
| Current portion | $ | $ | ||||||
| Long term portion | ||||||||
| Total operating lease liabilities | $ | $ | ||||||
The following summarizes total future minimum operating lease payments at June 30, 2026:
| Twelve months period ended June 30, | ||||
| 2027 | $ | |||
| 2028 | ||||
| 2029 | ||||
| Total minimum lease payments | ||||
| Less: present value discount | ( | ) | ||
| Present value of minimum lease payments | ||||
As
of June 30, 2026 and December 31, 2025, the weighted average discount rate for these leases is
| F-16 |
12. BANK LOANS
Long-term line of credit
In
September 2024, the Company’s subsidiary, Tianjin Lobo entered into a line of credit agreement of $
Short-term line of credit
In
2025, the Company’s subsidiaries, Jiangsu Lobo and Tianjin Lobo entered into one-year line of credit agreements and have drawn
a total of $
In
2026, the Company’s subsidiaries, Jiangsu Lobo and Tianjin Lobo entered into one-year line of credit agreements and have drawn
a total of $
Short-term and long-term loans consisted of the following as of June 30, 2026 and December 31, 2025:
As of June 30, | As of December 31, | |||||||
| 2026 | 2025 | |||||||
| Short-term loans | $ | $ | ||||||
| Current portion, Long-term loans | ||||||||
| Total Short-term | ||||||||
| Non-current portion, Long-term loans | ||||||||
| Total | $ | $ | ||||||
Short-term loans consisted of the following as of June 30, 2026:
| Bank Name | Amount-RMB | Amount - USD | Issuance Date | Expiration Date | Interest | |||||||||||
| Bank of Nanjing Co., Ltd., Wuxi Branch | % | |||||||||||||||
| China Construction Bank Corporation, Tianjin Wuqing Sub-branch | % | |||||||||||||||
| Industrial and Commercial Bank of China Limited, Wuxi Xishan Sub-branch | % | |||||||||||||||
| Agricultural Bank of China Limited, Wuxi Liangxi Sub-branch | % | |||||||||||||||
| Bank of China Limited, Tianjin Wuqing Sub-branch | % | |||||||||||||||
| Bank of China Limited, Wuxi Huishan Sub-branch | % | |||||||||||||||
| Total | ||||||||||||||||
The following is a maturity analysis of long-term loans as of June 30, 2026:
| RMB | USD | |||||||
| Twelve months period ended June 30, | ||||||||
| 2027 | ||||||||
| 2028 | ||||||||
| Total long-term loans | $ | |||||||
For
the six months ended June 30, 2026 and 2025, the Company recorded interest expenses of $
| F-17 |
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 $
As
of December 31, 2025, the Company completed the full settlement of its outstanding convertible debt through conversion into shares of
its ordinary shares. Company issued shares of Class A ordinary shares upon conversion of all outstanding principal of $
The Company accounted for the conversion of its convertible debt in accordance with ASU 2020-06. Upon conversion, the carrying amount of the debt, including any unamortized discount or premium and deferred issuance costs, was derecognized.
During
the six months ended June 30, 2025, the Company issued
Class A ordinary shares upon conversion of $
The amortized cost of the Convertible Note consisted of the following:
| Convertible Note Principal- Issued in November 2024 | $ | |||
| Debt issuance discount | ( | ) | ||
| Debt discount of fair value for pre-delivery Shares | ( | ) | ||
| Interest accrued | ||||
| Convertible Notes Principal and accrued interest as of December 31, 2024 | ||||
| Amortization of debt discount and fair value for pre-delivery shares | ||||
| Principal and accrued interest converted into Common stock | ( | ) | ||
| Convertible Notes Principal and accrued interest as of June 30, 2025 | $ |
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, 2026 and 2025:
| Name | Relationship | ||
| (a) | Huiyan Xie | ||
| (b) | Huajian Xu |
Amounts due to related parties
As of June 30, 2026 and December 31, 2025, amounts due to related parties, consisted of the following:
| December 31, 2025 | Borrowed | Repaid | Exchange Rate Translation | Set-off of Debts | Disposal of Subsidiaries | June 30, 2026 | ||||||||||||||||||||||
| Amounts due to related parties | ||||||||||||||||||||||||||||
| (a) Huiyan Xie | ( | ) | ( | ) | ||||||||||||||||||||||||
| (b) Huajian Xu | ( | ) | ( | ) | ||||||||||||||||||||||||
| Total amounts due to related parties | $ | $ | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | $ | |||||||||||||||
Both balances represented interest-free loans payable to shareholders.
| F-18 |
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.
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
U.S.
For
entities operating in Delaware with a physical presence, the effective rate includes the State of Delaware corporate income tax rate
of
Composition of loss before income tax for the periods presented by jurisdictions is as follows:
| For the six months ended June 30, | ||||||||
| 2026 | 2025 | |||||||
| Chinese Mainland | $ | ( | ) | $ | ||||
| Other jurisdictions | ( | ) | ( | ) | ||||
| Total | $ | ( | ) | $ | ( | ) | ||
The components of the income tax provision are:
| For the six months ended June 30, | ||||||||
| 2026 | 2025 | |||||||
| Current income tax expense | $ | $ | ||||||
| Deferred income tax benefit | ( | ) | ||||||
| Total | $ | ( | ) | $ | ||||
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:
| For the six months ended June 30, | ||||||||||||||||
| 2026 | 2025 | |||||||||||||||
| Amount | Percent | Amount | Percent | |||||||||||||
| Loss before income taxes | ( | ) | ( | ) | ||||||||||||
| Income tax expense computed at PRC statutory income tax rate of 25% | ( | ) | % | ( | ) | % | ||||||||||
| Foreign tax effects | ( | )% | ( | )% | ||||||||||||
| Nontaxable or nondeductible items | ( | )% | ( | )% | ||||||||||||
| Other adjustments | ||||||||||||||||
| Tax incentives relating to R&D expenditures | % | ( | ) | % | ||||||||||||
| Effect of preferential tax of PRC subsidiary | ( | )% | ( | )% | ||||||||||||
| Effect of deferred income tax arising from operating lease | ( | ) | % | % | ||||||||||||
| Changes in valuation allowance | ( | )% | ( | )% | ||||||||||||
| Income tax (benefit)/expense | ( | ) | % | ( | )% | |||||||||||
The PRC statutory income tax rate was used because the majority of the Company’s operations are based in PRC.
The Company’s deferred tax assets and liabilities as of June 30, 2026 and December 31, 2025 are attributable to the following:
| As of | ||||||||
| June 30, 2026 | December 31, 2025 | |||||||
| Deferred tax assets: | ||||||||
| Lease liability | $ | $ | ||||||
| Net operating loss carryforwards-PRC | ||||||||
| Valuation allowance | ( | ) | ( | ) | ||||
| Total deferred tax assets | ||||||||
| Deferred tax liabilities | ||||||||
| Right-of-use assets | ||||||||
| Total deferred tax liabilities | ||||||||
| Net deferred tax assets | ||||||||
| Net deferred tax liabilities | ||||||||
| F-19 |
15. INCOME TAXES – continued
The movement of valuation allowance provision for deferred tax assets is as follows:
| As of | ||||||||
| June 30, 2026 | December 31, 2025 | |||||||
| Balance as of January 1, | ||||||||
| Current year addition | ||||||||
| Write-off | ( | ) | ( | ) | ||||
| Exchange rate effect | ||||||||
| Balance as of June 30 and December 31, | ||||||||
The
current PRC EIT Law imposes a
As of June 30, 2026 and December 31, 2025, 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, 2026 and December 31, 2025, 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.
The Company did not identify significant unrecognized tax benefits for the period ended June 30, 2026 and December 31, 2025. 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 2021 to 2025 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) Ordinary shares and Additional Paid in Capital
During
six months ended June 30, 2025, the Company issued shares of Class A ordinary shares for financial consulting service at fair
value of $
As
disclosed in Note 13, during 2025, the Company issued shares of Class A ordinary shares upon conversion of $
On
March 30, 2026, the Company completed a public offering pursuant to which it issued Class A ordinary shares,
The
Pre-Funded Warrants have an exercise price of $
The Company determined that the Pre-Funded Warrants, Series A Warrants and Series B Warrants qualify for equity classification. Accordingly, the net proceeds from the offering were recorded within shareholders’ equity, with the par value of the Class A ordinary shares issued recorded as ordinary shares and the remaining net proceeds recorded as additional paid-in capital. The equity-classified warrants are not subsequently remeasured.
On
June 24, 2026, HZ Global Inc. exercised
As
of June 30, 2026,
(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, 2026 and December 31, 2025, statutory
reserve provided were $
| F-20 |
17. CONCENTRATIONS
Concentrations of Credit Risk
As
of June 30, 2026 and December 31, 2025, cash and cash equivalents balances in the PRC are $
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, 2026 and December 31, 2025:
| As of | ||||||||||||||||
| June 30, 2026 | December 31, 2025 | |||||||||||||||
| % of | % of | |||||||||||||||
| Amount | Total | Amount | Total | |||||||||||||
| A | $ | % | $ | * | * | % | ||||||||||
| B | % | % | ||||||||||||||
| C | % | * | * | % | ||||||||||||
| D | * | * | % | % | ||||||||||||
| E | * | * | % | % | ||||||||||||
| Total | $ | % | $ | % | ||||||||||||
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, 2026 and 2025.
| For the six months ended June 30, | ||||||||||||||||
| 2026 | 2025 | |||||||||||||||
| % of | % of | |||||||||||||||
| Customer | Amount | Total | Amount | Total | ||||||||||||
| A | $ | % | $ | * | * | % | ||||||||||
| B | % | % | ||||||||||||||
| C | % | * | * | % | ||||||||||||
| Total | $ | % | $ | % | ||||||||||||
The following table sets forth information as to each supplier that accounted for 10% or more of accounts payable as of June 30, 2026 and December 31, 2025:
| As of | ||||||||||||||||
| June 30, 2026 | December 31, 2025 | |||||||||||||||
| % of | % of | |||||||||||||||
| Suppliers | Amount | Total | Amount | Total | ||||||||||||
| A | $ | % | $ | * | * | % | ||||||||||
| B | % | * | * | % | ||||||||||||
| C | * | * | % | % | ||||||||||||
| D | * | * | % | % | ||||||||||||
| E | * | * | % | % | ||||||||||||
| Total | $ | % | % | |||||||||||||
| * |
| F-21 |
17. CONCENTRATIONS – continued
There following table sets forth information as to each supplier that accounted for 10% or more of total purchase during six months ended June 30, 2026 and 2025.
| For the six months ended June 30, | ||||||||||||||||
| 2026 | 2025 | |||||||||||||||
| % of | % of | |||||||||||||||
| Suppliers | Amount | Total | Amount | Total | ||||||||||||
| A | $ | * | * | % | $ | % | ||||||||||
| Total | $ | * | * | % | % | |||||||||||
| * |
18. SEGMENT INFORMATION
The Company has two reportable segments: (1) electric vehicles and accessories sales and (2) AI infrastructure services. The Company’s reportable segments are based on the nature of the products and services offered and how management allocates resources and evaluates operating performance. During the six months ended June 30, 2026, the Company expanded its resource allocation strategy beyond electric vehicles and accessories sales to include AI infrastructure services, which is focused on providing cost-effective AI inference services compatible with a wide range of models for clients.
The Company’s Chief Executive Officer, Mr. Huajian Xu, serves as the chief operating decision maker (the “CODM”). The CODM regularly reviews the financial performance of each reportable segment and uses different performance measures based on the nature and stage of development of each business. For the electric vehicles and accessories sales segment, the CODM primarily uses segment net income to evaluate financial performance and make decisions regarding resource allocation. For the AI infrastructure services segment, the CODM primarily uses gross profit as the performance measure because the segment is in the early stages of commercialization and management focuses on product-level profitability in evaluating its operating performance. Gross profit is defined as revenue less cost of revenues.
The following table presents revenues, cost of revenues, operating expenses and income(loss) from operations data of the Company and its reportable segments for the six months ended June 30, 2026 and 2025. In 2025, the Company operated as a single segment (Electric vehicles and accessories sales).
| Six Months Ended June 30, 2026 | Six Months Ended June 30, 2025 | |||||||||||||||
| Electric vehicles and accessories sales | AI infrastructure services | Consolidated | Consolidated | |||||||||||||
| Revenues | $ | $ | $ | $ | ||||||||||||
| Cost of revenues | ||||||||||||||||
| Gross Profit | ||||||||||||||||
| Operating expenses | ||||||||||||||||
| Selling and marketing expenses | ||||||||||||||||
| General and administrative expenses | ||||||||||||||||
| Research and development expenses | ||||||||||||||||
| Total operating expenses | ||||||||||||||||
| (Loss) income from operations | $ | ( | ) | $ | $ | ( | ) | $ | ( | ) | ||||||
19. SUBSEQUENT EVENTS
On
July 8, 2026, the Company extended the maturity date of its borrowing from China Construction Bank Corporation, Tianjin Wuqing Sub-branch,
in the principal amount of RMB
On August 5, Tianjin Lobo obtained
a new loan of RMB
On August 19, Jiangsu Lobo made an
early repayment of RMB
On August 21, Jiangsu Lobo obtained
a new loan of RMB
The Company has performed an evaluation of subsequent events through the date these financial statements were issued, and determined that, other than as discussed above, no events occurred that would have required adjustment or disclosure in the consolidated financial statements.
| F-22 |
Exhibit 99.2
MANAGEMENT’S
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
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 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.
In 2026, the Company commenced an AI infrastructure services business by providing customers with access to third-party large language model API computing resources, diversifying the Company’s revenue streams beyond its core electric mobility manufacturing business.
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, 2026 and 2025
The following table sets forth a summary of our consolidated statements of operations and comprehensive income for the six months ended June 30, 2026 and 2025, 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 | ||||||||
| June 30, | ||||||||
| 2026 | 2025 | |||||||
| Revenues | $ | 14,586,984 | $ | 12,091,762 | ||||
| Cost of revenues | 12,661,580 | 10,149,305 | ||||||
| Gross Profit | 1,925,404 | 1,942,457 | ||||||
| Operating expenses | ||||||||
| Selling and marketing expenses | 423,358 | 338,080 | ||||||
| General and administrative expenses | 796,048 | 1,701,458 | ||||||
| Research and development expenses | 1,320,313 | 1,053,921 | ||||||
| Total operating expenses | 2,539,719 | 3,093,459 | ||||||
| Operating loss | (614,315 | ) | (1,151,002 | ) | ||||
| Other (expenses)/income | ||||||||
| Interest expense | (60,464 | ) | (1,437,601 | ) | ||||
| Gain on disposal of subsidiaries | - | 50,545 | ||||||
| Other income | (478,784 | ) | 86,714 | |||||
| Total other (expenses)/income, net | (539,248 | ) | (1,300,342 | ) | ||||
| Loss before income tax expense | (1,153,563 | ) | (2,451,344 | ) | ||||
| Income tax (benefit)/expense | (75,118 | ) | 170,825 | |||||
| Net loss | (1,078,445 | ) | (2,622,169 | ) | ||||
Segment Information
The Company has two operating segments—Electric vehicles and accessories sales and AI infrastructure services — each of which meets the criteria for separate reporting under ASC 280. The Company’s Global Chief Executive Officer (“CEO”), serves as the Chief Operating Decision Maker (“CODM”).
As the Company’s long-lived assets are substantially all located in the PRC and substantially all of the Company’s revenues and expenses are derived from within the PRC, no geographical segments are presented.
Components of Results of Operations
Revenues
Our total revenues for the six months ended June 30, 2026 and 2025 were $14,586,984 and $12,091,762, respectively, an increase of $2,495,222, or 20.6%. Revenues from electric vehicles and accessories sales increased by $991,201, or 8.2%, to $13,082,963 for the six months ended June 30, 2026, from $12,091,762 for the six months ended June 30, 2025, and the Company generated $1,504,021 of revenues from its new AI infrastructure services business.
A detailed breakdown of sales revenues and units sold in the electric vehicles and accessories sales segment for the six months ended June 30, 2026 and 2025 is set forth below:
| For the six months ended June 30, | Variance | |||||||||||||||
| Electric vehicles and accessories sales revenues | 2026 | 2025 | Amount | % | ||||||||||||
| Two-wheeled E-bicycles | $ | 8,104,688 | $ | 6,659,086 | $ | 1,445,602 | 21.71 | % | ||||||||
| Two-wheeled E-Mopeds | - | 36,778 | (36,778 | ) | (100.00 | )% | ||||||||||
| Three-wheeled Electric Vehicles | 2,182,486 | 3,083,449 | (900,963 | ) | (29.22 | )% | ||||||||||
| Four-Wheeled Electric off-highway Shuttles | 856,117 | 351,579 | 504,538 | 143.51 | % | |||||||||||
| Batteries | 922,588 | 1,732,497 | (809,909 | ) | (46.75 | )% | ||||||||||
| Parts and Accessories | 1,017,084 | 228,373 | 788,711 | 345.36 | % | |||||||||||
| Total | $ | 13,082,963 | $ | 12,091,762 | $ | 991,201 | 8.20 | % | ||||||||
| For the six months ended June 30, | Variance | |||||||||||||||
| Electric vehicles and accessories units sold | 2026 | 2025 | Amount | % | ||||||||||||
| Two-wheeled E-bicycles | 28,518 | 27,007 | 1,511 | 5.59 | % | |||||||||||
| Two-wheeled E-Mopeds | - | 106 | (106 | ) | (100.00 | )% | ||||||||||
| Three-wheeled Electric Vehicles | 5,405 | 8,847 | (3,442 | ) | (38.91 | )% | ||||||||||
| Four-Wheeled Electric off-highway Shuttles | 1,217 | 617 | 600 | 97.24 | % | |||||||||||
| Batteries | 26,452 | 4,302 | 22,150 | 514.88 | % | |||||||||||
| Parts and Accessories | 81,415 | 32,386 | 49,029 | 151.39 | % | |||||||||||
| Total | $ | 143,007 | $ | 73,265 | $ | 69,742 | 95.19 | % | ||||||||
Cost of revenues
Cost of revenues consists primarily of manufacturing and purchase cost of raw materials, battery packs, depreciation, maintenance and other overhead expenses for our electric vehicles and accessories business, and API computing resources cost for our AI infrastructure services business. Our cost of revenues increased by $2,512,275, or 24.8%, to $12,661,580 for the six months ended June 30, 2026 from $10,149,305 for the six months ended June 30, 2025, primarily due to the growth in electric vehicles and accessories sales and the addition of $1,254,043 of cost of revenues associated with our new AI infrastructure services business.
Gross profit
Gross profit for the six months ended June 30, 2026 and 2025 was $1,925,404 and $1,942,457, representing 13.2% and 16.1% of revenues, respectively.
Selling and marketing expenses
Our selling and marketing expenses primarily consist of salaries and benefits and freight expense. Our selling and marketing expenses were $423,358 and $338,080 for the six months ended June 30, 2026 and 2025, respectively, an increase primarily due to higher salary expenses and freight costs associated with higher sales volume.
General and administrative expenses
Our general and administrative expenses consist primarily of salaries and welfare expenses and professional service fees. Our general and administrative expenses were $796,048 and $1,701,458 for the six months ended June 30, 2026 and 2025, respectively, a decrease primarily due to lower professional service fees incurred in the six months ended June 30, 2026.
Research and development expenses
Research and development expenses primarily consist of R&D materials and consumables, costs related to the development of AI infrastructure services platform, employee compensation, and amortization of intangible assets. Research and development expenses were $1,320,313 and $1,053,921 for the six months ended June 30, 2026 and 2025, respectively, an increase primarily due to the Company’s continued investment in developing its platform related AI infrastructure.
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. The Company recorded an income tax benefit of $75,118 for the six months ended June 30, 2026, compared to income tax expense of $170,825 for the six months ended June 30, 2025. 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, 2026 and 2025 was $1,078,445 and $2,622,169, respectively.
Liquidity and Capital Resources
As of June 30, 2026, we had cash and cash equivalents of $980,746, and total working capital of $5,147,543.
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:
| For the six months ended June 30, | ||||||||
| 2026 | 2025 | |||||||
| Net cash used in operating activities | $ | (3,712,686 | ) | $ | (1,213,756 | ) | ||
| Net cash (used in)/provided by investing activities | (578,165 | ) | 131,720 | |||||
| Net cash provided by financing activities | 4,304,676 | 611,698 | ||||||
| Effect of exchange rate changes | 58,580 | 4,959 | ||||||
| Net increase/(decrease) in cash and cash equivalents | $ | 72,405 | $ | (465,379 | ) | |||
Operating Activities
Net cash used in operating activities was $3,712,686 for the six months ended June 30, 2026, primarily derived from (a) an decrease in other current payables of $2,698,280, (b) an increase in accounts receivable of $1,702,930, and (c) a decrease in accounts payable of $359,867, offset by (a) an increase in advance from customers of $1,097,007.
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) a decrease of advance from customers of $1,212,522, (c) an increase of accounts receivable of $952,628, offset by (a) an decrease of prepaid expenses and other current assets of $3,358,866.
Investing Activities
For the six months ended June 30, 2026, net cash used in investing activities was $578,165, primarily due to proceeds from the sale of short-term investments of $1,134,125, offset by purchases of short-term investments of $810,815 and payment for loans advanced to third parties of $850,000 and purchases of property and equipment of $51,475.
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 the sale of Beijing LOBO of $206,822.
Financing Activities
For the six months ended June 30, 2026, net cash provided by financing activities was $4,304,676, primarily from $2,185,824 of proceeds from short-term bank loans, $1,821,346 of proceeds from issuance of common stock for cash and $1,677,783 of proceeds of interest-free loans from related parties, offset by $728,608 of repayments of short-term loans and $576,221 of repayments of interest-free loans to related parties.
For the six months ended June 30, 2025, net cash provided by financing activities was $611,698, primarily from proceeds of bank loans of $1,481,385.
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, 2026 were as follows:
| The periods ending June 30, | ||||
| 2027 | $ | 1,474,802 | ||
| 2028 | 156,848 | |||
| 2029 | 51,480 | |||
| Total minimum lease payments | 1,683,130 | |||
| Less: present value discount | (31,099 | ) | ||
| Present value of minimum lease payments | $ | 1,652,031 | ||
Other than those shown above, we did not have any significant capital and other commitments, long-term obligations, or guarantees as of June 30, 2026.