LOBO Technologies Ltd. (NASDAQ: LOBO) received a Nasdaq deficiency letter dated December 16 2025, which the company disclosed on December 19 2025. The letter states that the company’s ordinary shares traded below the required $1.00 minimum bid price for 30 consecutive business days, from November 3 to December 15, 2025. Nasdaq has granted LOBO a 180‑day compliance window that ends on June 15 2026, during which the company must maintain a bid price of at least $1.00 for a minimum of 10 consecutive business days to avoid delisting. If LOBO fails to meet this requirement, it may be eligible for an additional 180‑day extension, provided it satisfies all other Nasdaq listing standards, and may need to consider a reverse stock split or other remedial measures.
In its most recent fiscal year, LOBO reported revenue of $21.2 million, up 36.9% from $15.5 million in FY 2023. Despite the top‑line growth, the company posted a net loss of $845,841, a reversal from a $986,471 net income in FY 2023. Cash and cash equivalents stood at $1.4 million as of December 31 2024, underscoring limited liquidity. Operating expenses rose sharply, driven by increased research and development spending and higher general and administrative costs associated with the company’s transition to a public entity.
Segment analysis shows that LOBO’s electric‑vehicle and accessories sales contributed the majority of revenue, while software royalties and development/design services provided a smaller, but growing, portion of income. The EV segment benefited from strong demand for the company’s new AI‑powered models, but the high cost of production and supply‑chain constraints have pressured margins. The software segment, though still nascent, has shown early signs of scalability, yet it remains insufficient to offset the losses in the core EV business.
CEO Huajian Xu emphasized that the company’s FY 2024 performance reflected “transformational growth” in its product portfolio and distribution network, but acknowledged “near‑term pressure on profitability” due to operational expansion and public‑company transition costs. Xu reiterated the company’s commitment to “driving innovation, enhancing operational excellence, and delivering sustainable value creation for shareholders,” while noting that the current bid‑price deficiency is a short‑term hurdle that the company is actively addressing.
Following the disclosure, LOBO’s shares fell 4.8% in after‑hours trading on December 19 2025, reflecting investor concern over the potential delisting risk and the company’s limited cash reserves. The market reaction was driven primarily by the Nasdaq notification, which signals a heightened risk of liquidity erosion and a possible loss of investor confidence if compliance is not achieved.
The notification forces LOBO to focus on regaining compliance within the 180‑day window. The company may pursue a reverse stock split to lift the bid price, but recent Nasdaq rule changes require that such a split be accompanied by meeting other listing standards. The liquidity crunch, combined with the need to maintain a $1.00 bid price, places significant pressure on LOBO’s management to accelerate profitability, control costs, and secure additional capital to sustain operations and avoid a potential delisting.
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