Cover
Cover | 12 Months Ended |
Dec. 31, 2023 shares | |
Entity Addresses [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Document Period End Date | Dec. 31, 2023 |
Document Fiscal Period Focus | FY |
Document Fiscal Year Focus | 2023 |
Current Fiscal Year End Date | --12-31 |
Entity File Number | 001-41981 |
Entity Registrant Name | LOBO EV TECHNOLOGIES LTD. |
Entity Central Index Key | 0001932072 |
Entity Incorporation, State or Country Code | D8 |
Entity Address, Address Line One | Gemini Mansion B 901, i Park |
Entity Address, Address Line Two | No. 18-17 Zhenze Rd |
Entity Address, Address Line Three | Xinwu District |
Entity Address, City or Town | Wuxi |
Entity Address, Country | CN |
Entity Address, Postal Zip Code | 214111 |
Title of 12(b) Security | Ordinary shares, par value $0.001 per share |
Trading Symbol | LOBO |
Security Exchange Name | NASDAQ |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | No |
Entity Filer Category | Non-accelerated Filer |
Entity Emerging Growth Company | true |
Elected Not To Use the Extended Transition Period | false |
Document Accounting Standard | U.S. GAAP |
Entity Shell Company | false |
Entity Bankruptcy Proceedings, Reporting Current | false |
Entity Common Stock, Shares Outstanding | 7,780,000 |
Document Financial Statement Error Correction [Flag] | false |
Auditor Firm ID | 6706 |
Auditor Name | TPS Thayer, LLC |
Auditor Location | Sugar Land, Texas |
Business Contact [Member] | |
Entity Addresses [Line Items] | |
Entity Address, Address Line One | Gemini Mansion B 901, i Park |
Entity Address, Address Line Two | No. 18-17 Zhenze Rd |
Entity Address, Address Line Three | Xinwu District |
Entity Address, City or Town | Wuxi |
Entity Address, Country | CN |
Entity Address, Postal Zip Code | 214111 |
City Area Code | 86 |
Local Phone Number | 510 88584252 |
Contact Personnel Name | Mr. Huajian Xu |
Contact Personnel Email Address | xuhuajian@loboai.com |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 470,335 | $ 182,829 |
Accounts receivable, net | 2,532,551 | 3,056,321 |
Inventories, net | 5,737,781 | 3,814,028 |
Amounts due from related parties | 3,516,439 | |
Short-term investments | 56,768 | 24,271 |
Prepaid expenses and other current assets | 7,307,478 | 3,353,124 |
Total current assets | 16,104,913 | 13,947,012 |
Property and equipment, net | 1,080,747 | 1,048,806 |
Intangible assets, net | 1,916,362 | 1,441,691 |
Operating lease right-of-use assets, net | 569,462 | 499,949 |
Total Assets | 19,671,484 | 16,937,458 |
Current liabilities: | ||
Accounts payable | 929,816 | 1,795,420 |
Advances from customers | 1,555,424 | 159,844 |
Other current payables | 370,913 | 684,971 |
VAT payable | 6,078,846 | 4,856,716 |
Taxes payable | 2,372,646 | 1,921,825 |
Amounts due to related parties | 1,671,371 | 1,655,627 |
Short-term Loan | 202,981 | |
Operating lease liabilities, current | 362,720 | 218,011 |
Total current liabilities | 13,341,736 | 11,495,395 |
Long-term Loan | 140,847 | |
Operating lease liabilities, non-current | 298,961 | 314,391 |
Other payables | 11,320 | 48,064 |
Total liabilities | 13,792,864 | 11,857,850 |
Commitments and contingencies | ||
Equity: | ||
Common stock (par value of $0.001 per share, 50,000,000 shares authorized, 6,400,000 issued and outstanding, as of December 31, 2022 and 2023, respectively) | 6,400 | 6,400 |
Additional paid-in capital | 3,013,333 | 3,013,333 |
Retained earnings | 2,490,044 | 1,619,682 |
Accumulated other comprehensive income | (377,790) | (194,900) |
Statutory reserve | 521,566 | 422,330 |
Total LOBO EV Technologies LTD’s shareholders’ equity | 5,653,553 | 4,866,845 |
Non-controlling interest | 225,067 | 212,763 |
Total Equity | 5,878,620 | 5,079,608 |
Total Liabilities and Equity | 19,671,484 | 16,937,458 |
Related Party [Member] | ||
Current assets: | ||
Amounts due from related parties | 3,516,439 | |
Current liabilities: | ||
Amounts due to related parties | $ 1,671,371 | $ 1,655,627 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2023 | Oct. 15, 2023 | Mar. 01, 2023 | Feb. 28, 2023 | Dec. 31, 2022 | Mar. 14, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | |||||||
Common stock, par value per share | $ 0.001 | $ 1 | $ 0.001 | $ 0.001 | |||
Common stock, shares authorized | 50,000,000 | 50,000,000 | 50,000 | 50,000,000 | |||
Common stock, shares issued | 6,400,000 | 6,400,000 | 50,000 | 6,400,000 | 5,700,000 | 5,700,000 | |
Common stock, shares outstanding | 6,400,000 | 6,400,000 | 6,400,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Statement [Abstract] | |||
Revenues | $ 15,474,918 | $ 18,298,565 | $ 14,128,459 |
Cost of revenues | 13,266,821 | 15,273,181 | 11,197,314 |
Gross Profit | 2,208,097 | 3,025,384 | 2,931,145 |
Operating expenses | |||
Selling and marketing expenses | 610,487 | 585,772 | 316,457 |
General and administrative expenses | 516,187 | 690,763 | 324,702 |
Research and development expenses | 262,375 | 227,555 | 53,139 |
Total operating expenses | 1,389,049 | 1,504,090 | 694,298 |
Operating income | 819,048 | 1,521,294 | 2,236,847 |
Other expenses (income) | |||
Interest expense | 7,508 | 16,715 | 12,641 |
Other (income) | (519,784) | (27,949) | (5,680) |
Total other (income) expenses, net | (512,276) | (11,234) | 6,961 |
Income before income tax expense | 1,331,324 | 1,532,528 | 2,229,886 |
Income tax expense | 344,853 | 417,268 | 568,005 |
Net Income | 986,471 | 1,115,260 | 1,661,881 |
Less: Net income attributable to non-controlling interest | (16,873) | (42,827) | (13,155) |
Net income attributable to LOBO EV Technologies LTD | 969,598 | 1,072,433 | 1,648,726 |
Foreign currency translation adjustments | 182,890 | 348,963 | (61,220) |
Foreign currency translation adjustments for non-controlling interest | 4,569 | 10,651 | (2,800) |
Comprehensive income attributable to LOBO EV Technologies LTD | $ 1,173,930 | $ 1,474,874 | $ 1,597,861 |
Net income per share, basic | $ 0.15 | $ 0.17 | $ 0.26 |
Net income per share, diluted | $ 0.15 | $ 0.17 | $ 0.26 |
Weighted average shares outstanding, basic | 6,400,000 | 6,400,000 | 6,400,000 |
Weighted average shares outstanding, diluted | 6,400,000 | 6,400,000 | 6,400,000 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) | Common Stock [Member] | Subscription Receivable [Member] | Additional Paid-in Capital [Member] | Statutory Reserve [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Parent [Member] | Noncontrolling Interest [Member] | Total |
Balance at Dec. 31, 2020 | $ 6,400 | $ (5,700) | $ 773,654 | $ 123,477 | $ (802,624) | $ 92,843 | $ 188,050 | $ 164,632 | $ 352,682 |
Balance, shares at Dec. 31, 2020 | 6,400,000 | ||||||||
Net income | 1,648,726 | 1,648,726 | 13,155 | 1,661,881 | |||||
Appropriation of statutory reserve | 168,122 | (168,122) | |||||||
Foreign currency translation adjustments | 61,220 | 61,220 | 2,800 | 64,020 | |||||
Capital contribution | 1,036,811 | 1,036,811 | 1,036,811 | ||||||
Balance at Dec. 31, 2021 | $ 6,400 | (5,700) | 1,810,465 | 291,599 | 677,980 | 154,063 | 2,934,807 | 180,587 | 3,115,394 |
Balance, shares at Dec. 31, 2021 | 6,400,000 | ||||||||
Net income | 1,072,433 | 1,072,433 | 42,827 | 1,115,260 | |||||
Appropriation of statutory reserve | 130,731 | (130,731) | |||||||
Foreign currency translation adjustments | (348,963) | (348,963) | (10,651) | (359,614) | |||||
Capital contribution | 5,700 | 1,202,868 | 1,208,568 | 1,208,568 | |||||
Balance at Dec. 31, 2022 | $ 6,400 | 3,013,333 | 422,330 | 1,619,682 | (194,900) | 4,866,845 | 212,763 | 5,079,608 | |
Balance, shares at Dec. 31, 2022 | 6,400,000 | ||||||||
Net income | 969,598 | 969,598 | 16,873 | 986,471 | |||||
Appropriation of statutory reserve | 99,236 | (99,236) | |||||||
Foreign currency translation adjustments | (182,890) | (182,890) | (4,569) | (187,459) | |||||
Capital contribution | 0 | ||||||||
Balance at Dec. 31, 2023 | $ 6,400 | $ 3,013,333 | $ 521,566 | $ 2,490,044 | $ (377,790) | $ 5,653,553 | $ 225,067 | $ 5,878,620 | |
Balance, shares at Dec. 31, 2023 | 6,400,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income | $ 986,471 | $ 1,115,260 | $ 1,661,881 |
Adjustment to reconcile net income to net cash provided by operating activities | |||
Depreciation and amortization | 722,778 | 347,189 | 121,875 |
Gain on disposal of property and equipment | (3,168) | ||
Loss on change in fair value of short-term investments | 13,319 | ||
Gain on sale of long-term investments | (14,861) | ||
Amortization of operating lease Right-of-use assets, nets | 181,791 | 230,305 | 111,826 |
Changes in Operating Assets and Liabilities | |||
Accounts receivable | 437,684 | (1,750,083) | (1,126,425) |
Inventories | (2,038,096) | (2,026,214) | 370,970 |
Prepaid expenses and other current assets | (4,021,436) | (2,070,066) | (842,358) |
Accounts payable | (816,530) | 860,369 | (473,991) |
Advance from customers | 1,409,334 | (82,999) | (446,830) |
Other current payables | (42,482) | 178,113 | 118,740 |
VAT payable | 1,222,130 | 1,220,419 | 1,756,920 |
Taxes payable | 649,355 | 938,977 | 712,439 |
Operating lease Liabilities | (120,936) | (128,068) | (175,608) |
Net cash (used in) provided by operating activities | (1,416,618) | (1,181,659) | 1,786,271 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Interest-free loan to related parties | (16,896,831) | (19,535,129) | (18,197,697) |
Interest-free loan repaid by related parties | 20,319,617 | 18,439,556 | 18,343,712 |
Proceeds from sale of property and equipment | 23,321 | ||
Purchase of short-term investment | (70,275) | ||
Purchase of long-term investment | (1,550,195) | ||
Proceeds from sale of long-term equity investments | 1,500,966 | ||
Purchase of property and equipment | (314,197) | (777,994) | (10,974) |
Cash paid for capitalized software development cost | (985,995) | (608,806) | (1,083,499) |
Additional consideration paid for Reorganization | (1,437,646) | ||
Net cash provided by (used in) investing activities | 614,673 | (981,407) | (2,475,332) |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Proceeds of interest-free loan from related parties | 4,811,327 | 519,515 | 2,559 |
Repayments of interest-free loan to related parties | (3,658,828) | (2,454) | (19,775) |
Repayments of short-term borrowings | (197,715) | ||
Proceeds of long-term borrowings | 141,225 | 217,027 | |
Proceeds from short-term loan | |||
Proceeds from additional paid in capital | 1,208,568 | 1,036,811 | |
Net cash provided by financing activities | 1,096,009 | 1,725,629 | 1,236,622 |
Effect of exchange rate changes on cash and cash equivalents | (6,558) | 6,258 | (3,573) |
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | 287,506 | (431,179) | 543,988 |
CASH AND CASH EQUIVALENTS, beginning of period | 182,829 | 614,008 | 70,020 |
CASH AND CASH EQUIVALENTS, end of period | 470,335 | 182,829 | 614,008 |
SUPPLEMENTAL CASH FLOW INFORMATION | |||
Income taxes | (239) | (568,005) | |
Interest | 408 | (16,715) | (12,641) |
NON-CASH TRANSACTIONS | |||
Addition of Right-of-use assets, nets | 273,334 | 575,581 | 149,217 |
Liabilities incurred for purchase of property and equipment | $ 162,411 |
ORGANIZATION AND PRINCIPAL ACTI
ORGANIZATION AND PRINCIPAL ACTIVITIES | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | 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. LOBO designs, develops, manufactures and sells e-bicycles, e-mopeds, e-tricycles, and electric four-wheeled shuttles, through its indirectly wholly-owned subsidiaries, Jiangsu LOBO, Beijing LOBO, Guangzhou LOBO, Tianjin LOBO, Tianjin Bibosch and Wuxi Jinbang. LOBO also provides software solutions for automotive electronics, such as interactive multimedia software systems, multifunctional rear-view mirrors, and dash cams. 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 years 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 10,000,000 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 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 ordinary shares of 50,000 50,000,000 1 0.001 44,300,000 On September 15, 2023, the Company issued 700,000 2,212,000 3.16 50,000,000 6,400,000 LOBO is a holding company and had not commenced operations until the Reorganization was complete. During the years 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. The consolidated financial statements reflect the activities of LOBO and each of the following entities: SCHEDULE OF ACTIVITIES OF LOBO AND EACH SUBSIDIARIES Percentage Date of Place of of effective Name Incorporation incorporation ownership Principal Activities Wholly owned subsidiaries LOBO AI Technologies Ltd (LOBO BVI) October, 2021 BVI 100 % Holding company LOBO Holdings Ltd (LOBO HK) November, 2021 HK 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 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 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. (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 December 31, 2023 and 2022 were translated at RMB7.0999 to $1.00 and RMB6.8972 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 years ended December 31, 2023 and 2022 were RMB7.0809 to $1.00 and RMB6.7290 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 December 31, 2023 and 2022. (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 and changes in its customer payment patterns, and concluded that the adoption has no material impact on the consolidated financial statements and did not consider necessary to record credit losses against its accounts receivable as of December 31, 2023 and 2022. 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 (h) Short-term investments Short-term investments include wealth management products as of December 31, 2022. Short-term investments are classified as available for sale, and reported at fair value with unrealized gains and losses included in accumulated other comprehensive income. Short-term investments include investment in publicly traded stocks as of December 31, 2023. The publicly traded stocks has 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 years ended December 31, 2023 and 2022, the Company did not record any impairment on the short-term investment. (i) Deferred IPO costs Deferred IPO costs represent the incremental costs incurred for the Company’s initial public offering (“IPO”). These costs are deferred and will be deducted from the proceeds of the IPO upon the completion of the IPO. Deferred IPO costs primary include professional fees related to the IPO. As of December 31, 2023 and 2022, the deferred IPO costs were $ 1,282,570 797,403 (j) 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: SCHEDULE OF ESTIMATED USEFUL LIFE Production line for e-bicycles 5 10 Furniture, fixtures and office equipment 3 5 Vehicles 4 10 (k) 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 468,781 184,856 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – continued (l) 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. As of December 31, 2022, the software development has not been completed. 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. (m) 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 years ended December 31, 2023 and 2022. (n) Long-term Investment The Company’s long-term investment includes equity investment without readily determinable fair value. In January 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-01 Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Financial Liabilities. The ASU requires equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. The Company adopted ASC 321, Investments — Equity Securities in June 2021, when the Company’s subsidiary, Beijing LOBO, invested $ 1,569,218 10,000,000 48.17 Upon adoption of ASC 321, for this equity investment without readily determinable fair value, the Company elected to use the measurement alternative to measure this investment at cost, minus impairment, if any. On June 25, 2022, the Company signed a private equity fund transfer agreement with a third party to sell and transfer all the 48.17 10.1 14,861 The Company assessed the qualitative factors and determined that there is no impairment loss that should be recognized for the year ended December 31, 2023, 2022 and 2021. As of December 31, 2023, 2022 and 2021, the Company has long-term investment of $ 0 0 1,569,218 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – continued (0) 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. (p) 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 and software development and design services. 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 end customers. 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 years ended December 31, 2023 and 2022 for the electric vehicles and accessories segment. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – continued Revenue from sale of software development and design services The Company provides automobile information and entertainment software development and design services to customers. The software development and design service contracts with customers includes two components: 1) software development, and 2) royalty agreements, and the contracts specify the transaction price for each component. The Company is primarily responsible for fulfilling the promises in both components of the contract, and thus the Company is the principal in both components of the contract. The Company provides the services to the customer and is the principal for this performance obligation. Software development services includes customized product consulting and planning, technology and function development, verification and certification, prototype, and implementation. A prototype installed with the customized software is built with proprietary technology that is specific to the customer, and thus the prototype has no alternative use and is not a separate performance obligation. All activities, including the prototype, are highly interdependent and highly interrelated. Thus, in accordance with ASC 606-10-25-19, we determined the services are not separately identifiable within the context of the contract, and therefore do not constitute a separate performance obligation on its own. The contract only has one performance obligation, which is to deliver the software to the customer to use in mass production. The Company transfers control of the software development service over time. The software that the Company developed and designed for its customer is fully customized, and thus the software does not create an asset with an alternative use to the Company. The Company has an enforceable right to payment for performance completed according to the terms of the contract. In accordance with ASC 606-10-25-27, the Company satisfies the performance obligation and recognizes revenue over time using the output method, based on the development milestones confirmed by customers periodically. A separate revenue stream than sale of software above is when software is delivered and the third-party arranges the production and sales, the Company, as principal, charges a royalty fee per unit sold based on the sales volume generated by its third-party customers from their use of the software. The Company reconciles the royalty fees with its customers on a monthly basis, and recognizes royalty revenues at a point in time at month end. 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 the payment. The Company has no contract assets as of December 31, 2023 and 2022. Contract liabilities primarily consist of advances from customers. As of December 31, 2023 and 2022, the Company recognized advances from customers amounted to $ 1,555,424 159,844 135,002 205,963 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 warranty cost of $ 35,401 56,530 (q) Research and Development Expenses Research and development (“R&D”) expenses are expensed as incurred. R&D costs are related to certain software research and development for internal use. R&D expenses primarily consist of employee salary and benefit costs. R&D expenses were $ 262,375 227,555 53,139 (r) 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 RMB 100,000 14,498 (s) 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. (t) Segment Reporting The Company has organized its operations into two The Company has determined that it operates in two operating segments: (1) electric vehicles and accessories sales segment, and (2) software royalties and development and design services segment. The Company’s reportable segments are strategic business units that offer different products and services. They are managed separately because each business unit requires different technology and marketing strategies. 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. (u) Net Income Per Share Basic income per share is computed by dividing net income attributable to ordinary shareholders by the weighted average number of ordinary shares 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. (v) 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 (w) 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. (x) 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 require 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. We are currently evaluating this guidance and believe the adoption will not significantly impact the presentation of our financial condition, results of operations and disclosures. 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 and interim periods beginning after December 15, 2024; early adoption is permitted. We are currently evaluating this guidance and believe the adoption will not significantly impact the presentation of our financial condition, results of operations and disclosures. 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. |
REVENUES AND COST OF REVENUES
REVENUES AND COST OF REVENUES | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
REVENUES AND COST OF REVENUES | 3. REVENUES AND COST OF REVENUES The following table identifies the disaggregation of the Company’s revenues for the years ended December 31, 2023 and 2022, respectively: SCHEDULE OF DISAGGREGATION REVENUE December 31,2023 December 31,2022 December 31,2021 Revenues Electric vehicles and accessories sales $ 14,298,967 $ 16,930,201 $ 12,401,756 Software royalties 236,005 376,868 1,362,553 Software development and design services 939,946 991,496 364,150 Software royalties and development and design subtotal 1,175,951 1,368,364 1,726,703 Total revenues accounted for under ASC Topic 606 $ 15,474,918 $ 18,298,565 $ 14,128,459 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 years ended December 31, 2023 and 2022, respectively: SCHEDULE OF COST OF REVENUES December 31,2023 December 31,2022 December 31,2021 Cost of revenues Electric vehicles and accessories $ 12,561,601 $ 14,689,913 $ 10,594,606 Software development and design services 705,220 583,268 602,708 Total cost of revenues $ 13,266,821 $ 15,273,181 $ 11,197,314 |
ACCOUNTS RECEIVABLE
ACCOUNTS RECEIVABLE | 12 Months Ended |
Dec. 31, 2023 | |
Credit Loss [Abstract] | |
ACCOUNTS RECEIVABLE | 4. ACCOUNTS RECEIVABLE As of December 31, 2023 and 2022, 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 and changes in its customer payment patterns, the allowance for credit losses assessed to be zero. SCHEDULE OF ACCOUNTS RECEIVABLE December 31, 2023 December 31, 2022 As of December 31, 2023 December 31, 2022 Accounts receivable $ 2,532,551 $ 3,056,321 |
SHORT-TERM INVESTMENTS
SHORT-TERM INVESTMENTS | 12 Months Ended |
Dec. 31, 2023 | |
Investments, All Other Investments [Abstract] | |
SHORT-TERM INVESTMENTS | 5. SHORT-TERM INVESTMENTS As of December 31, 2022, short-term investments consisted of the wealth management products totaled $ 24,271 On July 7, 2023, the Company purchased 5700 70,087 5700 56,768 13,319 |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2023 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | 6. INVENTORIES As of December 31, 2023 and 2022, inventories consisted of the following: SCHEDULE OF INVENTORY December 31,2023 December 31,2022 As of December 31,2023 December 31,2022 Finished goods (1) $ 3,287,637 $ 2,457,121 Raw materials (2) 2,426,168 1,353,371 WIP (3) 23,976 - Others ( 4) - 3,536 Total Inventory $ 5,737,781 $ 3,814,028 (1) Finished goods includes electric vehicles and accessories. (2) Raw materials mainly include parts, and battery cells. (3) Work-in-process includes cost incurred to build prototypes with customized software. (4) Others includes low-value consumption goods and goods shipped in transit. Based on historical observations, the write-downs were immaterial to be recognized for the inventories for the years ended December 31, 2023 and 2022. |
PREPAID EXPENSES AND OTHER CURR
PREPAID EXPENSES AND OTHER CURRENT ASSETS | 12 Months Ended |
Dec. 31, 2023 | |
Payables and Accruals [Abstract] | |
PREPAID EXPENSES AND OTHER CURRENT ASSETS | 7. PREPAID EXPENSES AND OTHER CURRENT ASSETS As of December 31, 2023 and 2022, prepaid expenses and other current assets consisted of the following: SCHEDULE OF PREPAID EXPENSES December 31, 2023 December 31, 2022 As of December 31, 2023 December 31, 2022 Prepayment to vendors $ 5,784,530 $ 2,148,368 Deferred IPO Costs (1) 1,282,570 797,403 Advances to employees( 2 ) 29,380 29,759 Others( 3 ) 210,998 377,594 Prepaid expenses and other current assets $ 7,307,478 $ 3,353,124 (1) The balance represented the incremental costs incurred for the Company’s initial public offering (“IPO”), which is deducted from the proceeds of the IPO upon the completion of the IPO. (2) The balance represented advances that the Company’s subsidiaries have advanced to non-director/officer employees. The advance is interest-free. (3) The balance primarily represented a deductible VAT input tax of $ 54,734 262,447 35,568 34,014 |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT, NET | 8. PROPERTY AND EQUIPMENT, NET As of December 31, 2023 and 2022, property and equipment, net consisted of the following: SCHEDULE OF PROPERTY AND EQUIPMENT 2023 2022 As of December 31, December 31, 2023 2022 Production line for e-bicycles $ 1,719,776 $ 1,463,948 Furniture, fixtures and office equipment 181,360 168,595 Vehicles 78,475 80,781 Property and equipment, Gross 1,979,611 1,713,324 Less: accumulated depreciation 898,864 664,518 Property and equipment, net $ 1,080,747 $ 1,048,806 For the years ended December 31, 2023, 2022 and 2021, depreciation expense amounted to $ 253,997 162,333 106,408 |
INTANGIBLE ASSETS, NET
INTANGIBLE ASSETS, NET | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS, NET | 9. INTANGIBLE ASSETS, NET As of December 31, 2023 and 2022, intangibles, net consisted of the following: SCHEDULE OF INTANGIBLE ASSETS As of December 31, December 31, 2023 2022 Purchased software $ 1,097,279 $ 1,129,526 Capitalized software development costs 1,475,691 506,803 Intangible assets, gross 2,572,970 1,636,329 Less: accumulated amortization (656,608 ) (194,638 ) Intangible assets, net $ 1,916,362 $ 1,441,691 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 years ended December 31, 2023, 2022 and 2021, amortization expense amounted to $ 468,781 184,856 15,467 The following summarizes total future amortization expenses of the purchased software at December 31, 2023: SCHEDULE OF FUTURE AMORTIZATION EXPENSE Year ending December 31, 2024 $ 761,345 2025 631,519 2026 339,205 2027 38,195 2028 and after 146,098 Total future amortization expense $ 1,916,362 |
ADVANCES FROM CUSTOMERS
ADVANCES FROM CUSTOMERS | 12 Months Ended |
Dec. 31, 2023 | |
Advances From Customers | |
ADVANCES FROM CUSTOMERS | 10. 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 December 31, 2023 and 2022, the Company recorded advances from customers that amounted to $ 1,555,424 159,844 135,002 205,963 |
TAXES PAYABLE
TAXES PAYABLE | 12 Months Ended |
Dec. 31, 2023 | |
Payables and Accruals [Abstract] | |
TAXES PAYABLE | 11. TAXES PAYABLE As of December 31, 2023 and 2022, taxes payable consisted of the following: SCHEDULE OF TAXES PAYABLE As of December 31, December 31, 2023 2022 Income tax payable $ 1,686,790 $ 1,382,570 Other tax payable 685,856 539,255 Total tax payable $ 2,372,646 $ 1,921,825 |
OPERATING LEASE LIABILITIES AND
OPERATING LEASE LIABILITIES AND RIGHT OF USE ASSETS | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
OPERATING LEASE LIABILITIES AND RIGHT OF USE ASSETS | 12. OPERATING LEASE LIABILITIES AND RIGHT OF USE ASSETS Operating Leases During the years ended December 31, 2023 and 2022, 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% The Company has made operating lease payments in the amount of $ 153,560 124,944 206,806 222,638 Operating lease liabilities at December 31, 2023 and 2022, consist of: SCHEDULE OF OPERATING LEASE LIABILITIES As of December 31, December 31, 2023 2022 Current portion $ 362,720 $ 218,011 Long term portion 298,961 314,391 Total operating lease liabilities $ 661,681 $ 532,402 The following summarizes total future minimum operating lease payments at December 31, 2023: SCHEDULE OF FUTURE OPERATING LEASE PAYMENTS The periods ending December 31, 2024 $ 383,539 2025 137,588 2026 120,958 2027 59,860 Total minimum lease payments 701,945 Less: present value discount (40,264 ) Present value of minimum lease payments $ 661,681 As of December 31, 2023 and 2022, the weighted average discount rate for these leases is 4.75 4.75 43 41 |
BANK LOAN
BANK LOAN | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
BANK LOAN | 13. BANK LOAN On April 21, 2021, the Company’s subsidiary, Wuxi Jinbang entered into a line of credit agreement of $ 219,691 1,400,000 8.40 April 20, 2027 202,981 On September 26, 2023, Wuxi Jinbang drew $ 140,847 1,000,000 For the years ended December 31, 2023, 2022 and 2021, the Company recorded interest expenses of $ 7,929 16,715 12,641 |
RELATED PARTY TRANSACTIONS AND
RELATED PARTY TRANSACTIONS AND BALANCES | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS AND BALANCES | 14. RELATED PARTY TRANSACTIONS AND BALANCES The following is a list of related parties which the Company had transactions with during the years ended December 31, 2023 and 2022: SCHEDULE OF LIST OF RELATED PARTIES Name Relationship (a) Jiancong Cai Deputy General Manager/10% shareholder of the Company (b) Huiyan Xie 10% shareholder of the Company (c) Huajian Xu CEO of the Company (d) Xing Xia Deputy General Manager/15% shareholder of Wuxi Jinbang (e) Jiangsu Zhihe New Energy Technology Co., Ltd. Xia Xing(d) holds 49% of the Company’s shares and serves as a supervisor. (f) Pingyi Xu Xu Huajian’s son (g) Linhui He Cai Jiancong (a)’s wife (i) Wealthford Capital Ltd. 57.88% shareholder of the Company (j) Hangzhou Zhiyi Digital Technology Co., Ltd. Xu Pingyi(f) holds 90% of the Company’s shares and serves as a supervisor Xu Huajian(c) holds 10% of the Company’s shares (k) Qianlimu (Shiyan) Technology Co., LTD Hangzhou Zhiyi Digital Technology Co., Ltd. (j) holds 70% of the company’s share. Amounts due from related parties As of December 31, 2023 and 2022, amounts due from related parties, consisted of the following: SCHEDULE OF AMOUNTS DUE FROM RELATED PARTIES December 31, Received Exchange Rate December 31, 2022 Provided Repayment Translation 2023 Amounts due from related parties (a) Jiancong Cai $ 645,309 $ - $ (628,568 ) $ (16,741 ) $ - (b) Huiyan Xie 836,320 12,261,386 (13,075,865 ) (21,841 ) - (d) Xing Xia 2,034,810 4,635,445 (6,615,184 ) (55,071 ) - Total amounts due from related parties $ 3,516,439 $ 16,896,831 $ (20,319,617 ) $ (93,653 ) $ - December 31, 2021 Provided Received Repayment Exchange Rate Translation December 31, 2022 Amounts due from related parties (a) Jiancong Cai 158,877 4,136,951 (3,625,974 ) (24,545 ) 645,309 (b) Huiyan Xie 1,140,443 9,140,841 (9,363,654 ) (81,310 ) 836,320 (c) Huajian Xu 67,388 217,355 (280,679 ) (4,064 ) - (d) Xing Xia 1,282,888 6,039,982 (5,169,249 ) (118,811 ) 2,034,810 Total amounts due from related parties $ 2,649,596 $ 19,535,129 $ (18,439,556 ) $ (228,730 ) $ 3,516,439 Amounts due to Related Parties As of December 31, 2023 and 2022, amounts due to related parties consisted of the following: SCHEDULE OF AMOUNTS DUE TO RELATED PARTIES December 31, Exchange Rate December 31, 2022 Borrowed Repaid Translation 2023 Amounts due to related parties (e) Jiancong Cai $ 146,637 $ 3,194,892 $ (3,187,141 ) $ (412 ) $ 153,976 (f) Huiyan Xie 146,573 374,475 (146,573 ) - 374,475 (g) Huajian Xu 1,192,611 955,107 (1,291,420 ) (231 ) 856,068 (f) Pingyi Xu 169,806 - (169,806 ) - - (d) Xing Xia - 286,852 - - 286,852 Total amounts due to related parties $ 1,655,627 $ 4,811,327 $ (4,794,940 ) $ (643 ) $ 1,671,371 December 31, Exchange Rate December 31, 2021 Borrowed Repaid Translation 2022 Amounts due to related parties (a) Jiancong Cai $ 146,637 - - - $ 146,637 (b) Huiyan Xie 146,573 - - - 146,573 (c) Huajian Xu 673,096 519,515 - - 1,192,611 (f) Pingyi Xu 169,806 - - - 169,806 (g )Linhui He 2,591 - (2,454 ) (137 ) - Total amounts due to related parties $ 1,138,703 $ 519,515 $ (2,454 ) $ (137 ) $ 1,655,627 Total amount of $ 4,794,940 1,136,112 3,658,828 301,534 1,437,646 The balances represented interest-free loans payable to shareholders. Related party transactions Other than the interest free loans due to and due from shareholders, for which the balances are disclosed above, for the years ended December 31, 2023 and 2022, the Company had the following material related party transactions: SCHEDULE OF MATERIAL RELATED PARTY TRANSACTIONS For the years ended December 31, Related Parties Nature 2023 2022 (b) Huiyan Xie Car Rental expenses $ - $ 107,000 (w) Qianlimu (Shiyan) Technology Co., LTD Purchase of products $ - 39,454 Related Parties Qianlimu (Shiyan) Technology Co., LTD Purchase of products $ - 39,454 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 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 withholdings 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 8.25 2 16.5 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 The components of the income tax provision are: SCHEDULE OF INCOME TAX PROVISION As of December 31, 2023 December 31, 2022 December 31, 2021 Current $ 344,853 $ 417,268 $ 568,005 Deferred - - - Total income tax provision $ 344,853 $ 417,268 $ 568,005 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 As of December 31, 2023 December 31, 2022 December 31, 2021 Net income before provision for income taxes $ 1,331,324 $ 1,532,528 $ 2,229,886 PRC statutory tax rate 25 % 25 % 25 % Income tax at statutory tax rate 332,831 383,132 557,471 Changes in valuation allowance 4,305 57,438.00 - Effect of income tax rate differences in jurisdictions other than mainland China* 450 271.00 - Tax effect of non-deductible items 7,267 (23,573 ) 10,534 Income tax expense $ 344,853 $ 417,268 $ 568,005 Effective tax rates 26 % 27 % 25 % The current PRC EIT Law imposes a 10 5 As of December 31, 2023 and 2022, 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 December 31, 2023 and 2022, 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 December 31, 2023 and 2022, there was no net operating loss carried forward. Accounting for uncertainty tax position The Company did not identify significant unrecognized tax benefits for the years ended December 31, 2023 and 2022. 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 2019 to 2023 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. |
EQUITY
EQUITY | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
EQUITY | 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 Ordinary Shares was 50,000,000 0.001 50,000 Upon the Reorganization event described in Note 1, on March 14, 2022, the Company issued the 5,700,000 0.001 During the years ended December 31, 2023 and 2022, Jiangsu LOBO received capital contributions of $ 0 1,202,868 3,013,333 3,013,333 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 ordinary shares of 50,000 50,000,000 1 0.001 44,300,000 5,700,000 0.001 On September 15, 2023, the Company issued 700,000 2,212,000 3.16 50,000,000 6,400,000 (b) Subscription receivable As of December 31, 2021, subscription receivable represented the unfunded capital for the 5,700,000 50,000 (c) 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 December 31, 2023 and 2022, statutory reserve provided were $ 521,566 422,330 (d) Non-controlling interest As of December 31, 2023 and 2022, the Company’s non-controlling interest represented 15 |
SEGMENT REPORTING
SEGMENT REPORTING | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | 17. SEGMENT REPORTING The Company has determined that it operates in two operating segments: (1) electric vehicles and accessories sales, and (2) software royalties and development and design services. The Company’s CODM, chief executive officer, measures the performance of each segment based on metrics of revenue and profit before taxes from operations and uses these results to evaluate the performance of, and to allocate resources to each of the segments. As most of the Company’s long-lived assets are located in the PRC and most of the Company’s revenues are derived from the PRC, no geographical information is presented. The Company does not allocate assets to its segments as the CODM does not evaluate the performance of segments using asset information. The following tables present the summary of each reportable segment’s assets, revenue and income, which is considered as a segment operating performance measure, for the years ended December 31, 2023 and 2022: SCHEDULE OF REPORTABLE SEGMENTS , REVENUE AND INCOME Segment Segment Consolidated For the Year Ended December 31, 2023 Electric vehicles and accessories sales Software royalties and development and design services Segment Segment Consolidated Current assets $ 15,830,685 $ 274,228 $ 16,104,913 Non-current assets 1,764,534 1,802,037 3,566,571 Revenues 14,298,967 1,175,951 15,474,918 Depreciation and amortization 180,861 541,917 722,778 Segment income before tax 1,349,430 (18,106 ) 1,331,324 Segment gross profit margin 12 % 40 % 14 % Net income $ 1,004,577 $ (18,106 ) $ 986,471 Segment Segment Consolidated For the Year Ended December 31, 2022 Electric vehicles and accessories sales Software royalties and development and design services Segment Segment Consolidated Current assets $ 13,191,513 $ 755,499 $ 13,947,012 Non-current assets 1,587,699 1,402,747 2,990,446 Revenues 16,930,201 1,368,364 18,298,565 Depreciation and amortization 132,664 214,525 347,189 Segment income before tax 1,055,425 477,103 1,532,528 Segment gross profit margin 13 % 57 % 17 % Net income $ 729,756 $ 385,504 $ 1,115,260 |
CONCENTRATIONS
CONCENTRATIONS | 12 Months Ended |
Dec. 31, 2023 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATIONS | 18. CONCENTRATIONS Concentrations of Credit Risk As of December 31, 2023 and 2022, cash and cash equivalents balances in the PRC are $ 470,335 182,829 500,000 70,692 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 December 31, 2023 and 2022: SCHEDULE OF CONCENTRATIONS OF CREDIT RISK As of As of December 31, December 31, 2023 2022 Customer % of % of Amount Total Amount Total A $ 997,506 39.39 % $ - - % B 553,800 21.87 % 518,907 16.98 % C 479,511 18.93 % - - % D - - % 1,508,419 49.35 % E - - % 537,601 17.59 % Total $ 2,030,817 80.19 % $ 2,564,927 83.92 % The following table sets forth information as to each customer that accounted for 10% or more of total revenue for the years ended December 31, 2023 and 2022. Year ended December 31, 2023 2022 Customer % of % of Amount Total Amount Total A $ 1,951,384 12.61 % $ - - % B 1,611,111 10.41 % 3,176,560 17.36 % Total $ 3,562,495 23.02 % $ 3,176,560 17.36 % The following table sets forth information as to each supplier that accounted for 10% or more of total accounts payable for the years ended December 31, 2023 and 2022. As of As of December 31, December 31, 2023 2022 Suppliers % of % of Amount Total Amount Total A $ 829,815 89.25 % $ - - * % B - - * % 403,026 22.45 % C - - * % 299,694 16.69 % D - - * 249,164 13.88 % Total $ 829,815 89.25 % 951,884 53.02 % * 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 year ended December 31, 2023 and 2022. Year ended December 31, 2023 2022 Suppliers % of % of Amount Total Amount Total A $ 2,607,552 18.25 % $ - - % B 1,706,583 11.95 % - - % Total $ 4,314,135 30.20 % - - % |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2023 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 19. SUBSEQUENT EVENTS On March 25, 2024, the Company closed its initial public offering (“IPO”) of 1,380,000 0.001 4.00 5,520,000 The Company has performed an evaluation of subsequent events through April 30, 2024, 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. |
CONDENSED PARENT ONLY FINANCIAL
CONDENSED PARENT ONLY FINANCIAL STATEMENTS | 12 Months Ended |
Dec. 31, 2023 | |
Condensed Financial Information Disclosure [Abstract] | |
CONDENSED PARENT ONLY FINANCIAL STATEMENTS | 20. CONDENSED PARENT ONLY FINANCIAL STATEMENTS The condensed parent company financial statements have been prepared in accordance with Rule 12-04, Schedule I of Regulation S-X as the restricted net assets of the subsidiaries of the Company exceed 25% of the consolidated net assets of the Company. The ability of the Company’s operating subsidiaries to pay dividends may be restricted due to the restriction of paid-in capital, additional paid-in capital and statutory surplus reserves of the Company under PRC laws and regulations. The condensed parent company financial statements have been prepared using the same accounting principles and policies described in the notes to the consolidated financial statements. Please refer to the consolidated financial statements and notes presented above for additional information and disclosures with respect to these financial statements. LOBO EV TECHNOLOGIES LTD (Parent Company Only) CONDENSED BALANCE SHEETS (IN U.S. DOLLARS) SCHEDULE OF PARENT COMPANY CONDENSED BALANCE SHEET As of December 31, 2023 2022 Assets Investment in subsidiaries (1) $ 5,653,553 $ 4,866,845 Total Assets (1) 5,653,553 4,866,845 Liabilities and Shareholders’ Equity Shareholders’ equity: Common stock (par value of $ 0.001 50,000,000 6,400,000 (2) 6,400 6,400 Subscription receivable - - ) Additional paid-in capital (1) (2) 3,013,333 3,013,333 Retained earnings (2) 2,490,044 1,619,682 Accumulated other comprehensive income (377,790 ) (194,900 Statutory reserve 521,566 422,330 Equity attributable to LOBO EV Technologies LTD’s shareholders (1) $ 5,653,553 $ 4,866,845 Total shareholders’ equity (1) 5,653,553 4,866,845 Total Liabilities and Shareholders’ Equity (1) 5,653,553 4,866,845 (1) Reflects retrospectively the additional Reorganization consideration of $ 1,437,646 (2) Reflects retrospectively the stock dividend of 700,000 LOBO EV TECHNOLOGIES LTD (Parent Company Only) CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (IN U.S. DOLLARS) SCHEDULE OF PARENT COMPANY CONDENSED STATEMENT OF OPERATION 2023 2022 For the year ended December 31, 2023 2022 Revenues $ - $ - Cost of revenues - - Gross Profit - - Operating expenses Selling and marketing expenses - - General and administrative expenses - - Research and development expenses - - Total operating expenses - - Operating income - - Other expenses (income) Interest expense (income) - - Other (income) expense - - Total other expenses, net - - Income before income tax expense - - Income tax expense - - Equity income of subsidiaries 969,598 1,072,433 Net Income $ 969,598 $ 1,072,433 Other comprehensive income (loss): Foreign currency translation adjustments 182,890 348,963 Total comprehensive income $ 1,152,488 $ 1,421,396 LOBO EV TECHNOLOGIES LTD (Parent Company Only) CONDENSED STATEMENTS OF CASH FLOWS (IN U.S. DOLLARS) SCHEDULE OF PARENT COMPANY CONDENSED STATEMENT OF CASH FLOWS 2023 2022 For the year ended December 31, 2023 2022 CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 969,598 $ 1,072,433 Adjustment to reconcile net income to net cash provided by (used in) operating activities Equity income of subsidiaries (969,598 ) (1,072,433 ) Net cash provided by (used in) operating activities - - CASH FLOWS FROM INVESTING ACTIVITIES Net cash used in investing activities - - CASH FLOWS FROM FINANCING ACTIVITIES Net cash provided by financing activities - - NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS - - CASH AND CASH EQUIVALENTS, beginning of period - - CASH AND CASH EQUIVALENTS, end of period $ - $ - Dividends The Company through its PRC subsidiaries paid cash dividends of nil and nil to its shareholders for the years ended December 31, 2023 and 2022, respectively. On September 15, 2023, the Company issued 700,000 2,212,000 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of presentation and principles of consolidation | (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. |
Use of estimates | (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. |
Foreign Currency Translation | (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 December 31, 2023 and 2022 were translated at RMB7.0999 to $1.00 and RMB6.8972 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 years ended December 31, 2023 and 2022 were RMB7.0809 to $1.00 and RMB6.7290 to $1.00, respectively. |
Fair Value Measurement | (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 December 31, 2023 and 2022. |
Cash and cash equivalents | (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. |
Accounts receivable | (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 and changes in its customer payment patterns, and concluded that the adoption has no material impact on the consolidated financial statements and did not consider necessary to record credit losses against its accounts receivable as of December 31, 2023 and 2022. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – continued |
Inventories | (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 |
Short-term investments | (h) Short-term investments Short-term investments include wealth management products as of December 31, 2022. Short-term investments are classified as available for sale, and reported at fair value with unrealized gains and losses included in accumulated other comprehensive income. Short-term investments include investment in publicly traded stocks as of December 31, 2023. The publicly traded stocks has 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 years ended December 31, 2023 and 2022, the Company did not record any impairment on the short-term investment. |
Deferred IPO costs | (i) Deferred IPO costs Deferred IPO costs represent the incremental costs incurred for the Company’s initial public offering (“IPO”). These costs are deferred and will be deducted from the proceeds of the IPO upon the completion of the IPO. Deferred IPO costs primary include professional fees related to the IPO. As of December 31, 2023 and 2022, the deferred IPO costs were $ 1,282,570 797,403 |
Property and equipment, net | (j) 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: SCHEDULE OF ESTIMATED USEFUL LIFE Production line for e-bicycles 5 10 Furniture, fixtures and office equipment 3 5 Vehicles 4 10 |
Intangible Assets | (k) 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 468,781 184,856 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – continued |
Capitalized Software Development Costs | (l) 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. As of December 31, 2022, the software development has not been completed. 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. |
Impairment of Long-lived Assets | (m) 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 years ended December 31, 2023 and 2022. |
Long-term Investment | (n) Long-term Investment The Company’s long-term investment includes equity investment without readily determinable fair value. In January 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-01 Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Financial Liabilities. The ASU requires equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. The Company adopted ASC 321, Investments — Equity Securities in June 2021, when the Company’s subsidiary, Beijing LOBO, invested $ 1,569,218 10,000,000 48.17 Upon adoption of ASC 321, for this equity investment without readily determinable fair value, the Company elected to use the measurement alternative to measure this investment at cost, minus impairment, if any. On June 25, 2022, the Company signed a private equity fund transfer agreement with a third party to sell and transfer all the 48.17 10.1 14,861 The Company assessed the qualitative factors and determined that there is no impairment loss that should be recognized for the year ended December 31, 2023, 2022 and 2021. As of December 31, 2023, 2022 and 2021, the Company has long-term investment of $ 0 0 1,569,218 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – continued |
Value Added Tax | (0) 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. |
Revenue Recognition | (p) 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 and software development and design services. 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 end customers. 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 years ended December 31, 2023 and 2022 for the electric vehicles and accessories segment. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – continued Revenue from sale of software development and design services The Company provides automobile information and entertainment software development and design services to customers. The software development and design service contracts with customers includes two components: 1) software development, and 2) royalty agreements, and the contracts specify the transaction price for each component. The Company is primarily responsible for fulfilling the promises in both components of the contract, and thus the Company is the principal in both components of the contract. The Company provides the services to the customer and is the principal for this performance obligation. Software development services includes customized product consulting and planning, technology and function development, verification and certification, prototype, and implementation. A prototype installed with the customized software is built with proprietary technology that is specific to the customer, and thus the prototype has no alternative use and is not a separate performance obligation. All activities, including the prototype, are highly interdependent and highly interrelated. Thus, in accordance with ASC 606-10-25-19, we determined the services are not separately identifiable within the context of the contract, and therefore do not constitute a separate performance obligation on its own. The contract only has one performance obligation, which is to deliver the software to the customer to use in mass production. The Company transfers control of the software development service over time. The software that the Company developed and designed for its customer is fully customized, and thus the software does not create an asset with an alternative use to the Company. The Company has an enforceable right to payment for performance completed according to the terms of the contract. In accordance with ASC 606-10-25-27, the Company satisfies the performance obligation and recognizes revenue over time using the output method, based on the development milestones confirmed by customers periodically. A separate revenue stream than sale of software above is when software is delivered and the third-party arranges the production and sales, the Company, as principal, charges a royalty fee per unit sold based on the sales volume generated by its third-party customers from their use of the software. The Company reconciles the royalty fees with its customers on a monthly basis, and recognizes royalty revenues at a point in time at month end. 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 the payment. The Company has no contract assets as of December 31, 2023 and 2022. Contract liabilities primarily consist of advances from customers. As of December 31, 2023 and 2022, the Company recognized advances from customers amounted to $ 1,555,424 159,844 135,002 205,963 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 warranty cost of $ 35,401 56,530 |
Research and Development Expenses | (q) Research and Development Expenses Research and development (“R&D”) expenses are expensed as incurred. R&D costs are related to certain software research and development for internal use. R&D expenses primarily consist of employee salary and benefit costs. R&D expenses were $ 262,375 227,555 53,139 |
Income Taxes | (r) 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 RMB 100,000 14,498 |
Non-controlling Interest | (s) 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. |
Segment Reporting | (t) Segment Reporting The Company has organized its operations into two The Company has determined that it operates in two operating segments: (1) electric vehicles and accessories sales segment, and (2) software royalties and development and design services segment. The Company’s reportable segments are strategic business units that offer different products and services. They are managed separately because each business unit requires different technology and marketing strategies. 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. |
Net Income Per Share | (u) Net Income Per Share Basic income per share is computed by dividing net income attributable to ordinary shareholders by the weighted average number of ordinary shares 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. |
Comprehensive Income | (v) 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 |
Commitments and Contingencies | (w) 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. |
Recent Accounting Standards | (x) 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 require 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. We are currently evaluating this guidance and believe the adoption will not significantly impact the presentation of our financial condition, results of operations and disclosures. 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 and interim periods beginning after December 15, 2024; early adoption is permitted. We are currently evaluating this guidance and believe the adoption will not significantly impact the presentation of our financial condition, results of operations and disclosures. 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. |
ORGANIZATION AND PRINCIPAL AC_2
ORGANIZATION AND PRINCIPAL ACTIVITIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
SCHEDULE OF ACTIVITIES OF LOBO AND EACH SUBSIDIARIES | The consolidated financial statements reflect the activities of LOBO and each of the following entities: SCHEDULE OF ACTIVITIES OF LOBO AND EACH SUBSIDIARIES Percentage Date of Place of of effective Name Incorporation incorporation ownership Principal Activities Wholly owned subsidiaries LOBO AI Technologies Ltd (LOBO BVI) October, 2021 BVI 100 % Holding company LOBO Holdings Ltd (LOBO HK) November, 2021 HK 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 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
SCHEDULE OF ESTIMATED USEFUL LIFE | SCHEDULE OF ESTIMATED USEFUL LIFE Production line for e-bicycles 5 10 Furniture, fixtures and office equipment 3 5 Vehicles 4 10 |
REVENUES AND COST OF REVENUES (
REVENUES AND COST OF REVENUES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
SCHEDULE OF DISAGGREGATION REVENUE | The following table identifies the disaggregation of the Company’s revenues for the years ended December 31, 2023 and 2022, respectively: SCHEDULE OF DISAGGREGATION REVENUE December 31,2023 December 31,2022 December 31,2021 Revenues Electric vehicles and accessories sales $ 14,298,967 $ 16,930,201 $ 12,401,756 Software royalties 236,005 376,868 1,362,553 Software development and design services 939,946 991,496 364,150 Software royalties and development and design subtotal 1,175,951 1,368,364 1,726,703 Total revenues accounted for under ASC Topic 606 $ 15,474,918 $ 18,298,565 $ 14,128,459 |
SCHEDULE OF COST OF REVENUES | SCHEDULE OF COST OF REVENUES December 31,2023 December 31,2022 December 31,2021 Cost of revenues Electric vehicles and accessories $ 12,561,601 $ 14,689,913 $ 10,594,606 Software development and design services 705,220 583,268 602,708 Total cost of revenues $ 13,266,821 $ 15,273,181 $ 11,197,314 |
ACCOUNTS RECEIVABLE (Tables)
ACCOUNTS RECEIVABLE (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Credit Loss [Abstract] | |
SCHEDULE OF ACCOUNTS RECEIVABLE | SCHEDULE OF ACCOUNTS RECEIVABLE December 31, 2023 December 31, 2022 As of December 31, 2023 December 31, 2022 Accounts receivable $ 2,532,551 $ 3,056,321 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Inventory Disclosure [Abstract] | |
SCHEDULE OF INVENTORY | As of December 31, 2023 and 2022, inventories consisted of the following: SCHEDULE OF INVENTORY December 31,2023 December 31,2022 As of December 31,2023 December 31,2022 Finished goods (1) $ 3,287,637 $ 2,457,121 Raw materials (2) 2,426,168 1,353,371 WIP (3) 23,976 - Others ( 4) - 3,536 Total Inventory $ 5,737,781 $ 3,814,028 (1) Finished goods includes electric vehicles and accessories. (2) Raw materials mainly include parts, and battery cells. (3) Work-in-process includes cost incurred to build prototypes with customized software. (4) Others includes low-value consumption goods and goods shipped in transit. |
PREPAID EXPENSES AND OTHER CU_2
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Payables and Accruals [Abstract] | |
SCHEDULE OF PREPAID EXPENSES | As of December 31, 2023 and 2022, prepaid expenses and other current assets consisted of the following: SCHEDULE OF PREPAID EXPENSES December 31, 2023 December 31, 2022 As of December 31, 2023 December 31, 2022 Prepayment to vendors $ 5,784,530 $ 2,148,368 Deferred IPO Costs (1) 1,282,570 797,403 Advances to employees( 2 ) 29,380 29,759 Others( 3 ) 210,998 377,594 Prepaid expenses and other current assets $ 7,307,478 $ 3,353,124 (1) The balance represented the incremental costs incurred for the Company’s initial public offering (“IPO”), which is deducted from the proceeds of the IPO upon the completion of the IPO. (2) The balance represented advances that the Company’s subsidiaries have advanced to non-director/officer employees. The advance is interest-free. (3) The balance primarily represented a deductible VAT input tax of $ 54,734 262,447 35,568 34,014 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
SCHEDULE OF PROPERTY AND EQUIPMENT | As of December 31, 2023 and 2022, property and equipment, net consisted of the following: SCHEDULE OF PROPERTY AND EQUIPMENT 2023 2022 As of December 31, December 31, 2023 2022 Production line for e-bicycles $ 1,719,776 $ 1,463,948 Furniture, fixtures and office equipment 181,360 168,595 Vehicles 78,475 80,781 Property and equipment, Gross 1,979,611 1,713,324 Less: accumulated depreciation 898,864 664,518 Property and equipment, net $ 1,080,747 $ 1,048,806 |
INTANGIBLE ASSETS, NET (Tables)
INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
SCHEDULE OF INTANGIBLE ASSETS | As of December 31, 2023 and 2022, intangibles, net consisted of the following: SCHEDULE OF INTANGIBLE ASSETS As of December 31, December 31, 2023 2022 Purchased software $ 1,097,279 $ 1,129,526 Capitalized software development costs 1,475,691 506,803 Intangible assets, gross 2,572,970 1,636,329 Less: accumulated amortization (656,608 ) (194,638 ) Intangible assets, net $ 1,916,362 $ 1,441,691 |
SCHEDULE OF FUTURE AMORTIZATION EXPENSE | The following summarizes total future amortization expenses of the purchased software at December 31, 2023: SCHEDULE OF FUTURE AMORTIZATION EXPENSE Year ending December 31, 2024 $ 761,345 2025 631,519 2026 339,205 2027 38,195 2028 and after 146,098 Total future amortization expense $ 1,916,362 |
TAXES PAYABLE (Tables)
TAXES PAYABLE (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Payables and Accruals [Abstract] | |
SCHEDULE OF TAXES PAYABLE | As of December 31, 2023 and 2022, taxes payable consisted of the following: SCHEDULE OF TAXES PAYABLE As of December 31, December 31, 2023 2022 Income tax payable $ 1,686,790 $ 1,382,570 Other tax payable 685,856 539,255 Total tax payable $ 2,372,646 $ 1,921,825 |
OPERATING LEASE LIABILITIES A_2
OPERATING LEASE LIABILITIES AND RIGHT OF USE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
SCHEDULE OF OPERATING LEASE LIABILITIES | Operating lease liabilities at December 31, 2023 and 2022, consist of: SCHEDULE OF OPERATING LEASE LIABILITIES As of December 31, December 31, 2023 2022 Current portion $ 362,720 $ 218,011 Long term portion 298,961 314,391 Total operating lease liabilities $ 661,681 $ 532,402 |
SCHEDULE OF FUTURE OPERATING LEASE PAYMENTS | The following summarizes total future minimum operating lease payments at December 31, 2023: SCHEDULE OF FUTURE OPERATING LEASE PAYMENTS The periods ending December 31, 2024 $ 383,539 2025 137,588 2026 120,958 2027 59,860 Total minimum lease payments 701,945 Less: present value discount (40,264 ) Present value of minimum lease payments $ 661,681 |
RELATED PARTY TRANSACTIONS AN_2
RELATED PARTY TRANSACTIONS AND BALANCES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
SCHEDULE OF LIST OF RELATED PARTIES | The following is a list of related parties which the Company had transactions with during the years ended December 31, 2023 and 2022: SCHEDULE OF LIST OF RELATED PARTIES Name Relationship (a) Jiancong Cai Deputy General Manager/10% shareholder of the Company (b) Huiyan Xie 10% shareholder of the Company (c) Huajian Xu CEO of the Company (d) Xing Xia Deputy General Manager/15% shareholder of Wuxi Jinbang (e) Jiangsu Zhihe New Energy Technology Co., Ltd. Xia Xing(d) holds 49% of the Company’s shares and serves as a supervisor. (f) Pingyi Xu Xu Huajian’s son (g) Linhui He Cai Jiancong (a)’s wife (i) Wealthford Capital Ltd. 57.88% shareholder of the Company (j) Hangzhou Zhiyi Digital Technology Co., Ltd. Xu Pingyi(f) holds 90% of the Company’s shares and serves as a supervisor Xu Huajian(c) holds 10% of the Company’s shares (k) Qianlimu (Shiyan) Technology Co., LTD Hangzhou Zhiyi Digital Technology Co., Ltd. (j) holds 70% of the company’s share. |
SCHEDULE OF AMOUNTS DUE FROM RELATED PARTIES | As of December 31, 2023 and 2022, amounts due from related parties, consisted of the following: SCHEDULE OF AMOUNTS DUE FROM RELATED PARTIES December 31, Received Exchange Rate December 31, 2022 Provided Repayment Translation 2023 Amounts due from related parties (a) Jiancong Cai $ 645,309 $ - $ (628,568 ) $ (16,741 ) $ - (b) Huiyan Xie 836,320 12,261,386 (13,075,865 ) (21,841 ) - (d) Xing Xia 2,034,810 4,635,445 (6,615,184 ) (55,071 ) - Total amounts due from related parties $ 3,516,439 $ 16,896,831 $ (20,319,617 ) $ (93,653 ) $ - December 31, 2021 Provided Received Repayment Exchange Rate Translation December 31, 2022 Amounts due from related parties (a) Jiancong Cai 158,877 4,136,951 (3,625,974 ) (24,545 ) 645,309 (b) Huiyan Xie 1,140,443 9,140,841 (9,363,654 ) (81,310 ) 836,320 (c) Huajian Xu 67,388 217,355 (280,679 ) (4,064 ) - (d) Xing Xia 1,282,888 6,039,982 (5,169,249 ) (118,811 ) 2,034,810 Total amounts due from related parties $ 2,649,596 $ 19,535,129 $ (18,439,556 ) $ (228,730 ) $ 3,516,439 |
SCHEDULE OF AMOUNTS DUE TO RELATED PARTIES | As of December 31, 2023 and 2022, amounts due to related parties consisted of the following: SCHEDULE OF AMOUNTS DUE TO RELATED PARTIES December 31, Exchange Rate December 31, 2022 Borrowed Repaid Translation 2023 Amounts due to related parties (e) Jiancong Cai $ 146,637 $ 3,194,892 $ (3,187,141 ) $ (412 ) $ 153,976 (f) Huiyan Xie 146,573 374,475 (146,573 ) - 374,475 (g) Huajian Xu 1,192,611 955,107 (1,291,420 ) (231 ) 856,068 (f) Pingyi Xu 169,806 - (169,806 ) - - (d) Xing Xia - 286,852 - - 286,852 Total amounts due to related parties $ 1,655,627 $ 4,811,327 $ (4,794,940 ) $ (643 ) $ 1,671,371 December 31, Exchange Rate December 31, 2021 Borrowed Repaid Translation 2022 Amounts due to related parties (a) Jiancong Cai $ 146,637 - - - $ 146,637 (b) Huiyan Xie 146,573 - - - 146,573 (c) Huajian Xu 673,096 519,515 - - 1,192,611 (f) Pingyi Xu 169,806 - - - 169,806 (g )Linhui He 2,591 - (2,454 ) (137 ) - Total amounts due to related parties $ 1,138,703 $ 519,515 $ (2,454 ) $ (137 ) $ 1,655,627 |
SCHEDULE OF MATERIAL RELATED PARTY TRANSACTIONS | Other than the interest free loans due to and due from shareholders, for which the balances are disclosed above, for the years ended December 31, 2023 and 2022, the Company had the following material related party transactions: SCHEDULE OF MATERIAL RELATED PARTY TRANSACTIONS For the years ended December 31, Related Parties Nature 2023 2022 (b) Huiyan Xie Car Rental expenses $ - $ 107,000 (w) Qianlimu (Shiyan) Technology Co., LTD Purchase of products $ - 39,454 Related Parties Qianlimu (Shiyan) Technology Co., LTD Purchase of products $ - 39,454 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
SCHEDULE OF INCOME TAX PROVISION | The components of the income tax provision are: SCHEDULE OF INCOME TAX PROVISION As of December 31, 2023 December 31, 2022 December 31, 2021 Current $ 344,853 $ 417,268 $ 568,005 Deferred - - - Total income tax provision $ 344,853 $ 417,268 $ 568,005 |
SCHEDULE OF STATUTORY INCOME TAX RATE AND EFFECTIVE INCOME TAX RATE | 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 As of December 31, 2023 December 31, 2022 December 31, 2021 Net income before provision for income taxes $ 1,331,324 $ 1,532,528 $ 2,229,886 PRC statutory tax rate 25 % 25 % 25 % Income tax at statutory tax rate 332,831 383,132 557,471 Changes in valuation allowance 4,305 57,438.00 - Effect of income tax rate differences in jurisdictions other than mainland China* 450 271.00 - Tax effect of non-deductible items 7,267 (23,573 ) 10,534 Income tax expense $ 344,853 $ 417,268 $ 568,005 Effective tax rates 26 % 27 % 25 % |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
SCHEDULE OF REPORTABLE SEGMENTS , REVENUE AND INCOME | The following tables present the summary of each reportable segment’s assets, revenue and income, which is considered as a segment operating performance measure, for the years ended December 31, 2023 and 2022: SCHEDULE OF REPORTABLE SEGMENTS , REVENUE AND INCOME Segment Segment Consolidated For the Year Ended December 31, 2023 Electric vehicles and accessories sales Software royalties and development and design services Segment Segment Consolidated Current assets $ 15,830,685 $ 274,228 $ 16,104,913 Non-current assets 1,764,534 1,802,037 3,566,571 Revenues 14,298,967 1,175,951 15,474,918 Depreciation and amortization 180,861 541,917 722,778 Segment income before tax 1,349,430 (18,106 ) 1,331,324 Segment gross profit margin 12 % 40 % 14 % Net income $ 1,004,577 $ (18,106 ) $ 986,471 Segment Segment Consolidated For the Year Ended December 31, 2022 Electric vehicles and accessories sales Software royalties and development and design services Segment Segment Consolidated Current assets $ 13,191,513 $ 755,499 $ 13,947,012 Non-current assets 1,587,699 1,402,747 2,990,446 Revenues 16,930,201 1,368,364 18,298,565 Depreciation and amortization 132,664 214,525 347,189 Segment income before tax 1,055,425 477,103 1,532,528 Segment gross profit margin 13 % 57 % 17 % Net income $ 729,756 $ 385,504 $ 1,115,260 |
CONCENTRATIONS (Tables)
CONCENTRATIONS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Risks and Uncertainties [Abstract] | |
SCHEDULE OF CONCENTRATIONS OF CREDIT RISK | SCHEDULE OF CONCENTRATIONS OF CREDIT RISK As of As of December 31, December 31, 2023 2022 Customer % of % of Amount Total Amount Total A $ 997,506 39.39 % $ - - % B 553,800 21.87 % 518,907 16.98 % C 479,511 18.93 % - - % D - - % 1,508,419 49.35 % E - - % 537,601 17.59 % Total $ 2,030,817 80.19 % $ 2,564,927 83.92 % The following table sets forth information as to each customer that accounted for 10% or more of total revenue for the years ended December 31, 2023 and 2022. Year ended December 31, 2023 2022 Customer % of % of Amount Total Amount Total A $ 1,951,384 12.61 % $ - - % B 1,611,111 10.41 % 3,176,560 17.36 % Total $ 3,562,495 23.02 % $ 3,176,560 17.36 % The following table sets forth information as to each supplier that accounted for 10% or more of total accounts payable for the years ended December 31, 2023 and 2022. As of As of December 31, December 31, 2023 2022 Suppliers % of % of Amount Total Amount Total A $ 829,815 89.25 % $ - - * % B - - * % 403,026 22.45 % C - - * % 299,694 16.69 % D - - * 249,164 13.88 % Total $ 829,815 89.25 % 951,884 53.02 % * 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 year ended December 31, 2023 and 2022. Year ended December 31, 2023 2022 Suppliers % of % of Amount Total Amount Total A $ 2,607,552 18.25 % $ - - % B 1,706,583 11.95 % - - % Total $ 4,314,135 30.20 % - - % |
CONDENSED PARENT ONLY FINANCI_2
CONDENSED PARENT ONLY FINANCIAL STATEMENTS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Condensed Financial Information Disclosure [Abstract] | |
SCHEDULE OF PARENT COMPANY CONDENSED BALANCE SHEET | SCHEDULE OF PARENT COMPANY CONDENSED BALANCE SHEET As of December 31, 2023 2022 Assets Investment in subsidiaries (1) $ 5,653,553 $ 4,866,845 Total Assets (1) 5,653,553 4,866,845 Liabilities and Shareholders’ Equity Shareholders’ equity: Common stock (par value of $ 0.001 50,000,000 6,400,000 (2) 6,400 6,400 Subscription receivable - - ) Additional paid-in capital (1) (2) 3,013,333 3,013,333 Retained earnings (2) 2,490,044 1,619,682 Accumulated other comprehensive income (377,790 ) (194,900 Statutory reserve 521,566 422,330 Equity attributable to LOBO EV Technologies LTD’s shareholders (1) $ 5,653,553 $ 4,866,845 Total shareholders’ equity (1) 5,653,553 4,866,845 Total Liabilities and Shareholders’ Equity (1) 5,653,553 4,866,845 (1) Reflects retrospectively the additional Reorganization consideration of $ 1,437,646 (2) Reflects retrospectively the stock dividend of 700,000 |
SCHEDULE OF PARENT COMPANY CONDENSED STATEMENT OF OPERATION | SCHEDULE OF PARENT COMPANY CONDENSED STATEMENT OF OPERATION 2023 2022 For the year ended December 31, 2023 2022 Revenues $ - $ - Cost of revenues - - Gross Profit - - Operating expenses Selling and marketing expenses - - General and administrative expenses - - Research and development expenses - - Total operating expenses - - Operating income - - Other expenses (income) Interest expense (income) - - Other (income) expense - - Total other expenses, net - - Income before income tax expense - - Income tax expense - - Equity income of subsidiaries 969,598 1,072,433 Net Income $ 969,598 $ 1,072,433 Other comprehensive income (loss): Foreign currency translation adjustments 182,890 348,963 Total comprehensive income $ 1,152,488 $ 1,421,396 |
SCHEDULE OF PARENT COMPANY CONDENSED STATEMENT OF CASH FLOWS | SCHEDULE OF PARENT COMPANY CONDENSED STATEMENT OF CASH FLOWS 2023 2022 For the year ended December 31, 2023 2022 CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 969,598 $ 1,072,433 Adjustment to reconcile net income to net cash provided by (used in) operating activities Equity income of subsidiaries (969,598 ) (1,072,433 ) Net cash provided by (used in) operating activities - - CASH FLOWS FROM INVESTING ACTIVITIES Net cash used in investing activities - - CASH FLOWS FROM FINANCING ACTIVITIES Net cash provided by financing activities - - NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS - - CASH AND CASH EQUIVALENTS, beginning of period - - CASH AND CASH EQUIVALENTS, end of period $ - $ - |
SCHEDULE OF ACTIVITIES OF LOBO
SCHEDULE OF ACTIVITIES OF LOBO AND EACH SUBSIDIARIES (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Jun. 25, 2022 | Jun. 30, 2021 | |
LOBO BVI [Member] | |||
Date of incorporation | October, 2021 | ||
Place of incorporation | BVI | ||
Percentage of effective ownership, percentage | 100% | ||
Principal Activities | Holding company | ||
LOBO HK [Member] | |||
Date of incorporation | November, 2021 | ||
Place of incorporation | HK | ||
Percentage of effective ownership, percentage | 100% | ||
Principal Activities | Investment holding company | ||
Jiangsu LOBO [Member] | |||
Date of incorporation | November, 2021 | ||
Place of incorporation | PRC | ||
Percentage of effective ownership, percentage | 100% | ||
Principal Activities | WFOE, a holding company | ||
Beijing LOBO [Member] | |||
Date of incorporation | August, 2014 | ||
Place of incorporation | PRC | ||
Percentage of effective ownership, percentage | 100% | 48.17% | 48.17% |
Principal Activities | Domestic sales and outsourcing special models of e-bicycle and UVT | ||
Tianjin LOBO [Member] | |||
Date of incorporation | October, 2021 | ||
Place of incorporation | PRC | ||
Percentage of effective ownership, percentage | 100% | ||
Principal Activities | Production of electric bicycles, urban tricycles and elderly scooters | ||
Guangzhou LOBO [Member] | |||
Date of incorporation | May, 2019 | ||
Place of incorporation | PRC | ||
Percentage of effective ownership, percentage | 100% | ||
Principal Activities | Software development for automotive electronics | ||
Wuxi Jinbang [Member] | |||
Date of incorporation | October, 2002 | ||
Place of incorporation | PRC | ||
Percentage of effective ownership, percentage | 85% | ||
Principal Activities | Production of electric bicycles and electric moped | ||
Tianjin Bibosch [Member] | |||
Date of incorporation | March, 2022 | ||
Place of incorporation | PRC | ||
Percentage of effective ownership, percentage | 100% | ||
Principal Activities | Foreign sales of e-bicycle and UVT |
ORGANIZATION AND PRINCIPAL AC_3
ORGANIZATION AND PRINCIPAL ACTIVITIES (Details Narrative) | 1 Months Ended | 12 Months Ended | |||||||||
Sep. 15, 2023 USD ($) $ / shares | Sep. 15, 2023 USD ($) $ / shares shares | Mar. 01, 2023 $ / shares shares | Mar. 31, 2023 USD ($) | Mar. 31, 2023 CNY (¥) | Dec. 31, 2023 $ / shares shares | Oct. 15, 2023 shares | Feb. 28, 2023 shares | Dec. 31, 2022 $ / shares shares | Mar. 14, 2022 $ / shares shares | Dec. 31, 2021 shares | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||
Common stock shares authorized | 50,000 | 50,000,000 | 50,000,000 | 50,000,000 | |||||||
Common stock par value | $ / shares | $ 1 | $ 0.001 | $ 0.001 | $ 0.001 | |||||||
Number of shares surrendered and cancelled | 44,300,000 | 44,300,000 | |||||||||
Dividend shares issued | 700,000 | ||||||||||
Fair value of common stock dividends | $ | $ 2,212,000 | $ 2,212,000 | |||||||||
Dividend shares price per share | $ / shares | $ 3.16 | $ 3.16 | |||||||||
Common stock shares issued | 6,400,000 | 6,400,000 | 50,000 | 6,400,000 | 5,700,000 | 5,700,000 | |||||
Common stock shares outstanding | 6,400,000 | 6,400,000 | 6,400,000 | ||||||||
Supplemental Agreement [Member] | |||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||
Consideration amount | $ 1,437,646 | ¥ 10,000,000 |
SCHEDULE OF ESTIMATED USEFUL LI
SCHEDULE OF ESTIMATED USEFUL LIFE (Details) | Dec. 31, 2023 |
Minimum [Member] | Electronic Bicycle [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful | 5 years |
Minimum [Member] | Furniture and Fixtures [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful | 3 years |
Minimum [Member] | Vehicles [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful | 4 years |
Maximum [Member] | Electronic Bicycle [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful | 10 years |
Maximum [Member] | Furniture and Fixtures [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful | 5 years |
Maximum [Member] | Vehicles [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful | 10 years |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) | 12 Months Ended | |||||||
Jun. 25, 2022 USD ($) | Jun. 25, 2022 CNY (¥) | Dec. 31, 2023 USD ($) Segments | Dec. 31, 2023 CNY (¥) Segments | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Jun. 30, 2021 USD ($) | Jun. 30, 2021 CNY (¥) | |
Description of foreign currency translation adjustment | Consolidated Balance Sheets amounts, with the exception of equity, on December 31, 2023 and 2022 were translated at RMB7.0999 to $1.00 and RMB6.8972 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 years ended December 31, 2023 and 2022 were RMB7.0809 to $1.00 and RMB6.7290 to $1.00, respectively. | Consolidated Balance Sheets amounts, with the exception of equity, on December 31, 2023 and 2022 were translated at RMB7.0999 to $1.00 and RMB6.8972 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 years ended December 31, 2023 and 2022 were RMB7.0809 to $1.00 and RMB6.7290 to $1.00, respectively. | ||||||
Inventory write-down | $ 0 | $ 0 | ||||||
Amortization of intangible assets | 468,781 | 184,856 | $ 15,467 | |||||
Proceed from sale of investment | 1,500,966 | |||||||
Long term investments | 0 | 0 | 1,569,218 | |||||
Advances from customers | 1,555,424 | 159,844 | ||||||
Revenues from the contract liabilities | 135,002 | 205,963 | ||||||
Research and development expense | 262,375 | 227,555 | $ 53,139 | |||||
Underpayment of taxes | $ 14,498 | ¥ 100,000 | ||||||
Number of operating segments | Segments | 2 | 2 | ||||||
Cost of Sales [Member] | ||||||||
Product warranty claims and cost | $ 35,401 | 56,530 | ||||||
Beijing LOBO [Member] | ||||||||
Investments in equity securities | $ 1,569,218 | ¥ 10,000,000 | ||||||
Equity Method Investment, Ownership Percentage | 48.17% | 48.17% | 100% | 48.17% | 48.17% | |||
Proceed from sale of investment | ¥ | ¥ 10,100,000 | |||||||
Gain on sale of long term investments | $ 14,861 | |||||||
Computer Software, Intangible Asset [Member] | ||||||||
Estimated useful life | 3 years | |||||||
IPO [Member] | ||||||||
Deferred costs | $ 1,282,570 | $ 797,403 |
SCHEDULE OF DISAGGREGATION REVE
SCHEDULE OF DISAGGREGATION REVENUE (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disaggregation of Revenue [Line Items] | |||
Total revenues accounted for under ASC Topic 606 | $ 15,474,918 | $ 18,298,565 | $ 14,128,459 |
Electric Vehicle [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues accounted for under ASC Topic 606 | 14,298,967 | 16,930,201 | 12,401,756 |
Software Royalty [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues accounted for under ASC Topic 606 | 236,005 | 376,868 | 1,362,553 |
Software Development And Design Services [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues accounted for under ASC Topic 606 | 939,946 | 991,496 | 364,150 |
Software Royalty And Development [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues accounted for under ASC Topic 606 | $ 1,175,951 | $ 1,368,364 | $ 1,726,703 |
SCHEDULE OF COST OF REVENUES (D
SCHEDULE OF COST OF REVENUES (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disaggregation of Revenue [Line Items] | |||
Total cost of revenues | $ 13,266,821 | $ 15,273,181 | $ 11,197,314 |
Electric Vehicle [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Total cost of revenues | 12,561,601 | 14,689,913 | 10,594,606 |
Software Development And Design Services [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Total cost of revenues | $ 705,220 | $ 583,268 | $ 602,708 |
SCHEDULE OF ACCOUNTS RECEIVABLE
SCHEDULE OF ACCOUNTS RECEIVABLE (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Credit Loss [Abstract] | ||
Accounts receivable | $ 2,532,551 | $ 3,056,321 |
SHORT-TERM INVESTMENTS (Details
SHORT-TERM INVESTMENTS (Details Narrative) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Jul. 07, 2024 | Dec. 31, 2022 | |
Schedule of Investments [Line Items] | |||
Short term investment | $ 56,768 | $ 24,271 | |
Wealth Management Products [Member] | |||
Schedule of Investments [Line Items] | |||
Short term investment | $ 24,271 | ||
Common Stock [Member] | |||
Schedule of Investments [Line Items] | |||
Shares purchased | 5,700 | ||
Fair value of shares purchased | $ 56,768 | ||
Changes in fair value | $ 13,319 | ||
Common Stock [Member] | Subsequent Event [Member] | |||
Schedule of Investments [Line Items] | |||
Shares purchased | 5,700 | ||
Fair value of shares purchased | $ 70,087 |
SCHEDULE OF INVENTORY (Details)
SCHEDULE OF INVENTORY (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 | |
Inventory Disclosure [Abstract] | |||
Finished goods | [1] | $ 3,287,637 | $ 2,457,121 |
Raw materials | [2] | 2,426,168 | 1,353,371 |
WIP | [3] | 23,976 | |
Others( | [4] | 3,536 | |
Total Inventory | $ 5,737,781 | $ 3,814,028 | |
[1]Finished goods includes electric vehicles and accessories.[2]Raw materials mainly include parts, and battery cells.[3]Work-in-process includes cost incurred to build prototypes with customized software.[4]Others includes low-value consumption goods and goods shipped in transit. |
SCHEDULE OF PREPAID EXPENSES (D
SCHEDULE OF PREPAID EXPENSES (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 | |
Payables and Accruals [Abstract] | |||
Prepayment to vendors | $ 5,784,530 | $ 2,148,368 | |
Deferred IPO Costs | [1] | 1,282,570 | 797,403 |
Advances to employees() | [2] | 29,380 | 29,759 |
Others() | [3] | 210,998 | 377,594 |
Prepaid expenses and other current assets | $ 7,307,478 | $ 3,353,124 | |
[1]The balance represented the incremental costs incurred for the Company’s initial public offering (“IPO”), which is deducted from the proceeds of the IPO upon the completion of the IPO.[2]The balance represented advances that the Company’s subsidiaries have advanced to non-director/officer employees. The advance is interest-free.[3] The balance primarily represented a deductible VAT input tax of $ 54,734 262,447 35,568 34,014 |
SCHEDULE OF PREPAID EXPENSES _2
SCHEDULE OF PREPAID EXPENSES (Details Narrative) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Payables and Accruals [Abstract] | ||
Deductable VAT | $ 54,734 | $ 262,447 |
Deposits | $ 35,568 | $ 34,014 |
SCHEDULE OF PROPERTY AND EQUIPM
SCHEDULE OF PROPERTY AND EQUIPMENT (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Property and equipment, Gross | $ 1,979,611 | $ 1,713,324 |
Less: accumulated depreciation | 898,864 | 664,518 |
Property and equipment, net | 1,080,747 | 1,048,806 |
Electronic Bicycle [Member] | ||
Property and equipment, Gross | 1,719,776 | 1,463,948 |
Furniture and Fixtures [Member] | ||
Property and equipment, Gross | 181,360 | 168,595 |
Vehicles [Member] | ||
Property and equipment, Gross | $ 78,475 | $ 80,781 |
PROPERTY AND EQUIPMENT, NET (De
PROPERTY AND EQUIPMENT, NET (Details Narrative) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation | $ 253,997 | $ 162,333 | $ 106,408 |
SCHEDULE OF INTANGIBLE ASSETS (
SCHEDULE OF INTANGIBLE ASSETS (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Purchased software | $ 1,097,279 | $ 1,129,526 |
Capitalized software development costs | 1,475,691 | 506,803 |
Intangible assets, gross | 2,572,970 | 1,636,329 |
Less: accumulated amortization | (656,608) | (194,638) |
Intangible assets, net | $ 1,916,362 | $ 1,441,691 |
SCHEDULE OF FUTURE AMORTIZATION
SCHEDULE OF FUTURE AMORTIZATION EXPENSE (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2024 | $ 761,345 | |
2025 | 631,519 | |
2026 | 339,205 | |
2027 | 38,195 | |
2028 and after | 146,098 | |
Intangible assets, net | $ 1,916,362 | $ 1,441,691 |
INTANGIBLE ASSETS, NET (Details
INTANGIBLE ASSETS, NET (Details Narrative) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense | $ 468,781 | $ 184,856 | $ 15,467 |
Computer Software, Intangible Asset [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite lived useful | 3 years |
ADVANCES FROM CUSTOMERS (Detail
ADVANCES FROM CUSTOMERS (Details Narrative) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Advances From Customers | ||
Advances from customers | $ 1,555,424 | $ 159,844 |
Revenues from the contract liabilities | $ 135,002 | $ 205,963 |
SCHEDULE OF TAXES PAYABLE (Deta
SCHEDULE OF TAXES PAYABLE (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Payables and Accruals [Abstract] | ||
Income tax payable | $ 1,686,790 | $ 1,382,570 |
Other tax payable | 685,856 | 539,255 |
Total tax payable | $ 2,372,646 | $ 1,921,825 |
SCHEDULE OF OPERATING LEASE LIA
SCHEDULE OF OPERATING LEASE LIABILITIES (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
Current portion | $ 362,720 | $ 218,011 |
Long term portion | 298,961 | 314,391 |
Total operating lease liabilities | $ 661,681 | $ 532,402 |
SCHEDULE OF FUTURE OPERATING LE
SCHEDULE OF FUTURE OPERATING LEASE PAYMENTS (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
2024 | $ 383,539 | |
2025 | 137,588 | |
2026 | 120,958 | |
2027 | 59,860 | |
Total minimum lease payments | 701,945 | |
Less: present value discount | (40,264) | |
Present value of minimum lease payments | $ 661,681 | $ 532,402 |
OPERATING LEASE LIABILITIES A_3
OPERATING LEASE LIABILITIES AND RIGHT OF USE ASSETS (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Leases [Abstract] | ||
Weighted average discount rate | 4.75% | 4.75% |
Operating lease payments | $ 153,560 | $ 124,944 |
Operating lease expense | $ 206,806 | $ 222,638 |
Weighted average remaining term | 43 months | 41 months |
BANK LOAN (Details Narrative)
BANK LOAN (Details Narrative) | 12 Months Ended | ||||||
Apr. 21, 2021 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Sep. 26, 2023 USD ($) | Sep. 26, 2023 CNY (¥) | Apr. 21, 2021 CNY (¥) | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||
Bank loan - short-term loan | $ 202,981 | ||||||
Interest expense | $ 7,929 | $ 16,715 | $ 12,641 | ||||
Line Of Credit Agreement [Member] | Wuxi Jinbang [Member] | |||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||
Line of credit | $ 219,691 | ¥ 1,400,000 | |||||
Annual interest rate | 8.40% | 8.40% | |||||
Expiration date | Apr. 20, 2027 | ||||||
Long term loan | $ 140,847 | ¥ 1,000,000 |
SCHEDULE OF LIST OF RELATED PAR
SCHEDULE OF LIST OF RELATED PARTIES (Details) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Jiancong Cai [Member] | ||
Related Party Transaction [Line Items] | ||
Relationship | Deputy General Manager/10% shareholder of the Company | Deputy General Manager/10% shareholder of the Company |
Huiyan Xie [Member] | ||
Related Party Transaction [Line Items] | ||
Relationship | 10% shareholder of the Company | 10% shareholder of the Company |
Huajian Xu [Member] | ||
Related Party Transaction [Line Items] | ||
Relationship | CEO of the Company | CEO of the Company |
Xing Xia [Member] | ||
Related Party Transaction [Line Items] | ||
Relationship | Deputy General Manager/15% shareholder of Wuxi Jinbang | Deputy General Manager/15% shareholder of Wuxi Jinbang |
Jiangsu Zhihe New Energy Technology Co Ltd [Member] | ||
Related Party Transaction [Line Items] | ||
Relationship | Xia Xing(d) holds 49% of the Company’s shares and serves as a supervisor. | Xia Xing(d) holds 49% of the Company’s shares and serves as a supervisor. |
Pingyi Xu [Member] | ||
Related Party Transaction [Line Items] | ||
Relationship | Xu Huajian’s son | Xu Huajian’s son |
Linhui He [Member] | ||
Related Party Transaction [Line Items] | ||
Relationship | Cai Jiancong (a)’s wife | Cai Jiancong (a)’s wife |
Wealthford Capital Ltd [Member] | ||
Related Party Transaction [Line Items] | ||
Relationship | 57.88% shareholder of the Company | 57.88% shareholder of the Company |
Hangzhou Zhiyi Digital Technology Co Ltd [Member] | Xu Pingyi [Member] | ||
Related Party Transaction [Line Items] | ||
Relationship | Xu Pingyi(f) holds 90% of the Company’s shares and serves as a supervisor | Xu Pingyi(f) holds 90% of the Company’s shares and serves as a supervisor |
Hangzhou Zhiyi Digital Technology Co Ltd [Member] | Xu Huajian [Member] | ||
Related Party Transaction [Line Items] | ||
Relationship | Xu Huajian(c) holds 10% of the Company’s shares | Xu Huajian(c) holds 10% of the Company’s shares |
Qianlimu (Shiyan) Technology Co., LTD [Member] | ||
Related Party Transaction [Line Items] | ||
Relationship | Hangzhou Zhiyi Digital Technology Co., Ltd. (j) holds 70% of the company’s share. | Hangzhou Zhiyi Digital Technology Co., Ltd. (j) holds 70% of the company’s share. |
SCHEDULE OF AMOUNTS DUE FROM RE
SCHEDULE OF AMOUNTS DUE FROM RELATED PARTIES (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Related Party Transaction [Line Items] | ||
Amounts due from related parties, beginning | $ 3,516,439 | $ 2,649,596 |
Amounts due from related parties, Provided | 16,896,831 | 19,535,129 |
Amounts due from related parties, Received repayment | (20,319,617) | (18,439,556) |
Amounts due from related parties, Exchange rate translation | (93,653) | (228,730) |
Amounts due from related parties, ending | 3,516,439 | |
Jiancong Cai [Member] | ||
Related Party Transaction [Line Items] | ||
Amounts due from related parties, beginning | 645,309 | 158,877 |
Amounts due from related parties, Provided | 4,136,951 | |
Amounts due from related parties, Received repayment | (628,568) | (3,625,974) |
Amounts due from related parties, Exchange rate translation | (16,741) | (24,545) |
Amounts due from related parties, ending | 645,309 | |
Huiyan Xie [Member] | ||
Related Party Transaction [Line Items] | ||
Amounts due from related parties, beginning | 836,320 | 1,140,443 |
Amounts due from related parties, Provided | 12,261,386 | 9,140,841 |
Amounts due from related parties, Received repayment | (13,075,865) | (9,363,654) |
Amounts due from related parties, Exchange rate translation | (21,841) | (81,310) |
Amounts due from related parties, ending | 836,320 | |
Xing Xia [Member] | ||
Related Party Transaction [Line Items] | ||
Amounts due from related parties, beginning | 2,034,810 | 1,282,888 |
Amounts due from related parties, Provided | 4,635,445 | 6,039,982 |
Amounts due from related parties, Received repayment | (6,615,184) | (5,169,249) |
Amounts due from related parties, Exchange rate translation | (55,071) | (118,811) |
Amounts due from related parties, ending | 2,034,810 | |
Huajian Xu [Member] | ||
Related Party Transaction [Line Items] | ||
Amounts due from related parties, beginning | 67,388 | |
Amounts due from related parties, Provided | 217,355 | |
Amounts due from related parties, Received repayment | (280,679) | |
Amounts due from related parties, Exchange rate translation | (4,064) | |
Amounts due from related parties, ending |
SCHEDULE OF AMOUNTS DUE TO RELA
SCHEDULE OF AMOUNTS DUE TO RELATED PARTIES (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Related Party Transaction [Line Items] | |||
Amounts due to related parties, beginning | $ 1,655,627 | $ 1,138,703 | |
Amounts due from related parties, Borrowed | 4,811,327 | 519,515 | $ 2,559 |
Amounts due from related parties, Repaid | (4,794,940) | (2,454) | |
Amounts due from related parties, Exchange rate translation | (643) | (137) | |
Amounts due to related parties, ending | 1,671,371 | 1,655,627 | 1,138,703 |
Jiancong Cai [Member] | |||
Related Party Transaction [Line Items] | |||
Amounts due to related parties, beginning | 146,637 | 146,637 | |
Amounts due from related parties, Borrowed | 3,194,892 | ||
Amounts due from related parties, Repaid | (3,187,141) | ||
Amounts due from related parties, Exchange rate translation | (412) | ||
Amounts due to related parties, ending | 153,976 | 146,637 | 146,637 |
Huiyan Xie [Member] | |||
Related Party Transaction [Line Items] | |||
Amounts due to related parties, beginning | 146,573 | 146,573 | |
Amounts due from related parties, Borrowed | 374,475 | ||
Amounts due from related parties, Repaid | (146,573) | ||
Amounts due from related parties, Exchange rate translation | |||
Amounts due to related parties, ending | 374,475 | 146,573 | 146,573 |
Huajian Xu [Member] | |||
Related Party Transaction [Line Items] | |||
Amounts due to related parties, beginning | 1,192,611 | 673,096 | |
Amounts due from related parties, Borrowed | 955,107 | 519,515 | |
Amounts due from related parties, Repaid | (1,291,420) | ||
Amounts due from related parties, Exchange rate translation | (231) | ||
Amounts due to related parties, ending | 856,068 | 1,192,611 | 673,096 |
Pingyi Xu [Member] | |||
Related Party Transaction [Line Items] | |||
Amounts due to related parties, beginning | 169,806 | 169,806 | |
Amounts due from related parties, Borrowed | |||
Amounts due from related parties, Repaid | (169,806) | ||
Amounts due from related parties, Exchange rate translation | |||
Amounts due to related parties, ending | 169,806 | 169,806 | |
Xing Xia [Member] | |||
Related Party Transaction [Line Items] | |||
Amounts due to related parties, beginning | |||
Amounts due from related parties, Borrowed | 286,852 | ||
Amounts due from related parties, Repaid | |||
Amounts due from related parties, Exchange rate translation | |||
Amounts due to related parties, ending | 286,852 | ||
Linhui He [Member] | |||
Related Party Transaction [Line Items] | |||
Amounts due to related parties, beginning | 2,591 | ||
Amounts due from related parties, Borrowed | |||
Amounts due from related parties, Repaid | (2,454) | ||
Amounts due from related parties, Exchange rate translation | (137) | ||
Amounts due to related parties, ending | $ 2,591 |
SCHEDULE OF MATERIAL RELATED PA
SCHEDULE OF MATERIAL RELATED PARTY TRANSACTIONS (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Huiyan Xie [Member] | ||
Related Party Transaction [Line Items] | ||
Related Parties | $ 107,000 | |
Qianlimu (Shiyan) Technology Co., LTD [Member] | ||
Related Party Transaction [Line Items] | ||
Related Parties | $ 39,454 |
RELATED PARTY TRANSACTIONS AN_3
RELATED PARTY TRANSACTIONS AND BALANCES (Details Narrative) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |||
Repaid to related parties | $ 4,794,940 | $ 2,454 | |
Repaid to related parties includes reorganization consideration | 1,136,112 | ||
Repayments of interest-free loan to related parties | 3,658,828 | ||
Remaining reorganization consideration | 301,534 | ||
Additional consideration paid for reorganization | $ 1,437,646 |
SCHEDULE OF INCOME TAX PROVISIO
SCHEDULE OF INCOME TAX PROVISION (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Current | $ 344,853 | $ 417,268 | $ 568,005 |
Deferred | |||
Total income tax provision | $ 344,853 | $ 417,268 | $ 568,005 |
SCHEDULE OF STATUTORY INCOME TA
SCHEDULE OF STATUTORY INCOME TAX RATE AND EFFECTIVE INCOME TAX RATE (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Net income before provision for income taxes | $ 1,331,324 | $ 1,532,528 | $ 2,229,886 |
PRC statutory tax rate | 25% | 25% | 25% |
Income tax at statutory tax rate | $ 332,831 | $ 383,132 | $ 557,471 |
Changes in valuation allowance | 4,305 | 57,438 | |
Effect of income tax rate differences in jurisdictions other than mainland China* | 450 | 271 | |
Tax effect of non-deductible items | 7,267 | (23,573) | 10,534 |
Total income tax provision | $ 344,853 | $ 417,268 | $ 568,005 |
Effective tax rates | 26% | 27% | 25% |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) - HKD ($) $ in Millions | 12 Months Ended | |||
Mar. 21, 2018 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||
Profit tax rates, amount | $ 2 | |||
Profit tax rates | 8.25% | |||
PRC statutory tax rate | 25% | 25% | 25% | |
Withholding tax rate | 10% | |||
Inland Revenue, Hong Kong [Member] | ||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||
Withholding tax rate | 5% | |||
Maximum [Member] | ||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||
Profit tax rates, amount | $ 2 | |||
Profit tax rates | 16.50% | |||
HONG KONG | ||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||
Income tax, description | 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 years ended December 31, 2023 and 2023. |
EQUITY (Details Narrative)
EQUITY (Details Narrative) - USD ($) | 12 Months Ended | ||||||||||
Sep. 15, 2023 | Sep. 15, 2023 | Mar. 01, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Oct. 15, 2023 | Feb. 28, 2023 | Nov. 30, 2022 | Oct. 31, 2022 | Mar. 14, 2022 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Common stock, shares authorized | 50,000 | 50,000,000 | 50,000,000 | 50,000,000 | |||||||
Common stock, par value | $ 1 | $ 0.001 | $ 0.001 | $ 0.001 | |||||||
Shareholders fund capital | $ 50,000 | $ 50,000 | |||||||||
Common stock, shares issued | 6,400,000 | 6,400,000 | 5,700,000 | 6,400,000 | 50,000 | 5,700,000 | |||||
Capital contributions | $ 1,208,568 | $ 1,036,811 | |||||||||
Stock issued during period shares share based compensation forfeited | 44,300,000 | 44,300,000 | |||||||||
Common stock, shares outstanding | 6,400,000 | 6,400,000 | 6,400,000 | ||||||||
Shares issued | 700,000 | ||||||||||
Dividends common stock stock | $ 2,212,000 | $ 2,212,000 | |||||||||
Shares issued price per share | $ 3.16 | $ 3.16 | |||||||||
Statutory reserve | $ 521,566 | $ 422,330 | |||||||||
Wuxi Jinbang [Member] | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Non controlling interest, equity interest | 15% | 15% | |||||||||
Additional Paid-in Capital [Member] | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Capital contributions | $ 0 | $ 1,202,868 | 1,036,811 | ||||||||
Additional paid-in capital | 3,013,333 | 3,013,333 | |||||||||
Surrender Ordinary Shares [Member] | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Common stock, par value | $ 0.001 | ||||||||||
Common stock, shares issued | 5,700,000 | ||||||||||
Common stock, shares outstanding | 5,700,000 | ||||||||||
Common Stock [Member] | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Common stock, shares authorized | 50,000,000 | ||||||||||
Common stock, shares issued | 6,400,000 | ||||||||||
Capital contributions | |||||||||||
Common stock, shares outstanding | 6,400,000 | ||||||||||
Statutory Reserve [Member] | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Capital contributions | |||||||||||
Statutory reserve | $ 521,566 | $ 422,330 |
SCHEDULE OF REPORTABLE SEGMENTS
SCHEDULE OF REPORTABLE SEGMENTS , REVENUE AND INCOME (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |||
Current assets | $ 16,104,913 | $ 13,947,012 | |
Non-current assets | 3,566,571 | 2,990,446 | |
Revenues | 15,474,918 | 18,298,565 | $ 14,128,459 |
Depreciation and amortization | 722,778 | 347,189 | 121,875 |
Income before income tax expense | $ 1,331,324 | $ 1,532,528 | 2,229,886 |
Segment gross profit margin percentage | 14% | 17% | |
Net Income | $ 986,471 | $ 1,115,260 | $ 1,661,881 |
Electric Vehicles And Accessories Sales [Member] | |||
Segment Reporting Information [Line Items] | |||
Current assets | 15,830,685 | 13,191,513 | |
Non-current assets | 1,764,534 | 1,587,699 | |
Revenues | 14,298,967 | 16,930,201 | |
Depreciation and amortization | 180,861 | 132,664 | |
Income before income tax expense | $ 1,349,430 | $ 1,055,425 | |
Segment gross profit margin percentage | 12% | 13% | |
Net Income | $ 1,004,577 | $ 729,756 | |
Software Royalities And Development And Design Services [Member] | |||
Segment Reporting Information [Line Items] | |||
Current assets | 274,228 | 755,499 | |
Non-current assets | 1,802,037 | 1,402,747 | |
Revenues | 1,175,951 | 1,368,364 | |
Depreciation and amortization | 541,917 | 214,525 | |
Income before income tax expense | $ (18,106) | $ 477,103 | |
Segment gross profit margin percentage | 40% | 57% | |
Net Income | $ (18,106) | $ 385,504 |
SCHEDULE OF CONCENTRATIONS OF C
SCHEDULE OF CONCENTRATIONS OF CREDIT RISK (Details) - USD ($) | 12 Months Ended | |||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||||
Concentration Risk [Line Items] | ||||||
Accounts receivable | $ 2,532,551 | $ 3,056,321 | ||||
Revenues | 15,474,918 | 18,298,565 | $ 14,128,459 | |||
Accounts payable | 929,816 | 1,795,420 | ||||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer A [Member] | ||||||
Concentration Risk [Line Items] | ||||||
Accounts receivable | $ 997,506 | [1] | ||||
Concentration risk percentage | 39.39% | [1] | ||||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer B [Member] | ||||||
Concentration Risk [Line Items] | ||||||
Accounts receivable | $ 553,800 | $ 518,907 | ||||
Concentration risk percentage | 21.87% | 16.98% | ||||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer C [Member] | ||||||
Concentration Risk [Line Items] | ||||||
Accounts receivable | $ 479,511 | [1] | ||||
Concentration risk percentage | 18.93% | [1] | ||||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer D [Member] | ||||||
Concentration Risk [Line Items] | ||||||
Accounts receivable | [1] | $ 1,508,419 | ||||
Concentration risk percentage | [1] | 49.35% | ||||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer E [Member] | ||||||
Concentration Risk [Line Items] | ||||||
Accounts receivable | [1] | $ 537,601 | ||||
Concentration risk percentage | [1] | 17.59% | ||||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer [Member] | ||||||
Concentration Risk [Line Items] | ||||||
Accounts receivable | $ 2,030,817 | $ 2,564,927 | ||||
Concentration risk percentage | 80.19% | 83.92% | ||||
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Customer A [Member] | ||||||
Concentration Risk [Line Items] | ||||||
Concentration risk percentage | 12.61% | [1] | ||||
Revenues | $ 1,951,384 | [1] | ||||
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Customer B [Member] | ||||||
Concentration Risk [Line Items] | ||||||
Concentration risk percentage | 10.41% | 17.36% | ||||
Revenues | $ 1,611,111 | $ 3,176,560 | ||||
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Customer [Member] | ||||||
Concentration Risk [Line Items] | ||||||
Concentration risk percentage | 23.02% | 17.36% | ||||
Revenues | $ 3,562,495 | $ 3,176,560 | ||||
Revenue Benchmark [Member] | Supplier Concentration Risk [Member] | Supplier B [Member] | ||||||
Concentration Risk [Line Items] | ||||||
Revenues | [1] | |||||
Revenue Benchmark [Member] | Supplier Concentration Risk [Member] | Supplier C [Member] | ||||||
Concentration Risk [Line Items] | ||||||
Revenues | [1] | |||||
Revenue Benchmark [Member] | Supplier Concentration Risk [Member] | Supplier D [Member] | ||||||
Concentration Risk [Line Items] | ||||||
Revenues | [1] | |||||
Accounts Payable [Member] | Supplier Concentration Risk [Member] | Supplier A [Member] | ||||||
Concentration Risk [Line Items] | ||||||
Concentration risk percentage | 89.25% | [1] | ||||
Accounts payable | $ 829,815 | [1] | ||||
Accounts Payable [Member] | Supplier Concentration Risk [Member] | Supplier B [Member] | ||||||
Concentration Risk [Line Items] | ||||||
Concentration risk percentage | [1] | 22.45% | ||||
Accounts payable | $ 403,026 | |||||
Accounts Payable [Member] | Supplier Concentration Risk [Member] | Supplier C [Member] | ||||||
Concentration Risk [Line Items] | ||||||
Concentration risk percentage | [1] | 16.69% | ||||
Accounts payable | $ 299,694 | |||||
Accounts Payable [Member] | Supplier Concentration Risk [Member] | Supplier D [Member] | ||||||
Concentration Risk [Line Items] | ||||||
Concentration risk percentage | 13.88% | |||||
Accounts payable | $ 249,164 | |||||
Accounts Payable [Member] | Supplier Concentration Risk [Member] | Supplier [Member] | ||||||
Concentration Risk [Line Items] | ||||||
Concentration risk percentage | 89.25% | 53.02% | ||||
Accounts payable | $ 829,815 | $ 951,884 | ||||
Purchases [Member] | Supplier Concentration Risk [Member] | Supplier A [Member] | ||||||
Concentration Risk [Line Items] | ||||||
Concentration risk percentage | 18.25% | |||||
Cost of goods and services sold | $ 2,607,552 | |||||
Purchases [Member] | Supplier Concentration Risk [Member] | Supplier B [Member] | ||||||
Concentration Risk [Line Items] | ||||||
Concentration risk percentage | 11.95% | |||||
Cost of goods and services sold | $ 1,706,583 | |||||
Purchases [Member] | Supplier Concentration Risk [Member] | Supplier [Member] | ||||||
Concentration Risk [Line Items] | ||||||
Concentration risk percentage | 30.20% | |||||
Cost of goods and services sold | $ 4,314,135 | |||||
[1]represented the percentage below 10% |
CONCENTRATIONS (Details Narrati
CONCENTRATIONS (Details Narrative) | Dec. 31, 2023 USD ($) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2022 USD ($) |
Cash and cash equivalents | $ 470,335 | $ 182,829 | |
Maximum [Member] | |||
Cash insured amount | $ 70,692 | ¥ 500,000 |
SUBSEQUENT EVENTS (Details Narr
SUBSEQUENT EVENTS (Details Narrative) - USD ($) | 12 Months Ended | ||||||
Mar. 25, 2024 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Sep. 15, 2023 | Mar. 01, 2023 | Mar. 14, 2022 | |
Subsequent Event [Line Items] | |||||||
Common stock, par value per share | $ 0.001 | $ 0.001 | $ 1 | $ 0.001 | |||
Public offering price per share | $ 3.16 | ||||||
Gross proceeds | $ 1,208,568 | $ 1,036,811 | |||||
Subsequent Event [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Initial public offering | $ 1,380,000 | ||||||
Common stock, par value per share | $ 0.001 | ||||||
Public offering price per share | $ 4 | ||||||
Gross proceeds | $ 5,520,000 |
SCHEDULE OF PARENT COMPANY COND
SCHEDULE OF PARENT COMPANY CONDENSED BALANCE SHEET (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Assets | |||||
Total Assets | $ 19,671,484 | $ 16,937,458 | |||
Shareholders’ equity: | |||||
Common stock (par value of $0.001 per share, 50,000,000 authorized, 6,400,000 shares issued and outstanding, as of December 31, 2023 and 2022, respectively) | 6,400 | 6,400 | |||
Retained earnings | 2,490,044 | 1,619,682 | |||
Accumulated other comprehensive income | (377,790) | (194,900) | |||
Statutory reserve | 521,566 | 422,330 | |||
Total LOBO EV Technologies LTD’s shareholders’ equity | 5,653,553 | 4,866,845 | |||
Total Equity | 5,878,620 | 5,079,608 | $ 3,115,394 | $ 352,682 | |
Total Liabilities and Equity | 19,671,484 | 16,937,458 | |||
Parent Company [Member] | |||||
Assets | |||||
Investment in subsidiaries | [1] | 5,653,553 | 4,866,845 | ||
Total Assets | [1] | 5,653,553 | 4,866,845 | ||
Shareholders’ equity: | |||||
Common stock (par value of $0.001 per share, 50,000,000 authorized, 6,400,000 shares issued and outstanding, as of December 31, 2023 and 2022, respectively) | [2] | 6,400 | 6,400 | ||
Subscription receivable | |||||
Additional paid-in capital | [1],[2] | 3,013,333 | 3,013,333 | ||
Retained earnings | [2] | 2,490,044 | 1,619,682 | ||
Accumulated other comprehensive income | (377,790) | (194,900) | |||
Statutory reserve | 521,566 | 422,330 | |||
Total LOBO EV Technologies LTD’s shareholders’ equity | [1] | 5,653,553 | 4,866,845 | ||
Total Equity | [1] | 5,653,553 | 4,866,845 | ||
Total Liabilities and Equity | [1] | $ 5,653,553 | $ 4,866,845 | ||
[1]Reflects retrospectively the additional Reorganization consideration of $ 1,437,646 700,000 |
SCHEDULE OF PARENT COMPANY CO_2
SCHEDULE OF PARENT COMPANY CONDENSED BALANCE SHEET (Details) (Parenthetical) | 1 Months Ended | |||||||||
Sep. 15, 2023 shares | Mar. 31, 2023 USD ($) | Mar. 31, 2023 CNY (¥) | Dec. 31, 2023 $ / shares shares | Oct. 15, 2023 shares | Mar. 01, 2023 $ / shares shares | Feb. 28, 2023 shares | Dec. 31, 2022 $ / shares shares | Mar. 14, 2022 $ / shares shares | Dec. 31, 2021 shares | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||
Common stock, par value per share | $ / shares | $ 0.001 | $ 1 | $ 0.001 | $ 0.001 | ||||||
Common stock, shares authorized | 50,000,000 | 50,000,000 | 50,000 | 50,000,000 | ||||||
Common stock, shares issued | 6,400,000 | 6,400,000 | 50,000 | 6,400,000 | 5,700,000 | 5,700,000 | ||||
Common stock, shares outstanding | 6,400,000 | 6,400,000 | 6,400,000 | |||||||
Stock issued during period shares new issues | 700,000 | |||||||||
Supplemental Agreement [Member] | ||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||
Consideration amount | $ 1,437,646 | ¥ 10,000,000 |
SCHEDULE OF PARENT COMPANY CO_3
SCHEDULE OF PARENT COMPANY CONDENSED STATEMENT OF OPERATION (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Condensed Financial Statements, Captions [Line Items] | |||
Revenues | $ 15,474,918 | $ 18,298,565 | $ 14,128,459 |
Cost of revenues | 13,266,821 | 15,273,181 | 11,197,314 |
Gross Profit | 2,208,097 | 3,025,384 | 2,931,145 |
Operating expenses | |||
Selling and marketing expenses | 610,487 | 585,772 | 316,457 |
General and administrative expenses | 516,187 | 690,763 | 324,702 |
Research and development expenses | 262,375 | 227,555 | 53,139 |
Total operating expenses | 1,389,049 | 1,504,090 | 694,298 |
Operating income | 819,048 | 1,521,294 | 2,236,847 |
Other expenses (income) | |||
Interest expense (income) | 7,508 | 16,715 | 12,641 |
Other (income) expense | (519,784) | (27,949) | (5,680) |
Total other (income) expenses, net | (512,276) | (11,234) | 6,961 |
Income before income tax expense | 1,331,324 | 1,532,528 | 2,229,886 |
Income tax expense | 344,853 | 417,268 | 568,005 |
Net Income | 986,471 | 1,115,260 | 1,661,881 |
Other comprehensive income (loss): | |||
Foreign currency translation adjustments | 182,890 | 348,963 | (61,220) |
Comprehensive income attributable to LOBO EV Technologies LTD | 1,173,930 | 1,474,874 | $ 1,597,861 |
Parent Company [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Revenues | |||
Cost of revenues | |||
Gross Profit | |||
Operating expenses | |||
Selling and marketing expenses | |||
General and administrative expenses | |||
Research and development expenses | |||
Total operating expenses | |||
Operating income | |||
Other expenses (income) | |||
Interest expense (income) | |||
Other (income) expense | |||
Total other (income) expenses, net | |||
Income before income tax expense | |||
Income tax expense | |||
Equity income of subsidiaries | 969,598 | 1,072,433 | |
Net Income | 969,598 | 1,072,433 | |
Other comprehensive income (loss): | |||
Foreign currency translation adjustments | 182,890 | 348,963 | |
Comprehensive income attributable to LOBO EV Technologies LTD | $ 1,152,488 | $ 1,421,396 |
SCHEDULE OF PARENT COMPANY CO_4
SCHEDULE OF PARENT COMPANY CONDENSED STATEMENT OF CASH FLOWS (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income | $ 986,471 | $ 1,115,260 | $ 1,661,881 |
Adjustment to reconcile net income to net cash provided by (used in) operating activities | |||
Net cash (used in) provided by operating activities | (1,416,618) | (1,181,659) | 1,786,271 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Net cash provided by (used in) investing activities | 614,673 | (981,407) | (2,475,332) |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Net cash provided by financing activities | 1,096,009 | 1,725,629 | 1,236,622 |
Parent Company [Member] | |||
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income | 969,598 | 1,072,433 | |
Adjustment to reconcile net income to net cash provided by (used in) operating activities | |||
Equity income of subsidiaries | (969,598) | (1,072,433) | |
Net cash (used in) provided by operating activities | |||
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Net cash provided by (used in) investing activities | |||
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Net cash provided by financing activities | |||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | |||
CASH AND CASH EQUIVALENTS, beginning of period | |||
CASH AND CASH EQUIVALENTS, end of period |
CONDENSED PARENT ONLY FINANCI_3
CONDENSED PARENT ONLY FINANCIAL STATEMENTS (Details Narrative) - USD ($) | Sep. 15, 2023 | Sep. 15, 2023 |
Condensed Financial Information Disclosure [Abstract] | ||
Stock issued during period shares new issues | 700,000 | |
Dividends common stock stock | $ 2,212,000 | $ 2,212,000 |