LOBO EV Technologies Ltd. Announces Definitive Agreement with Roundtree Lab, LLC to Manufacture Medical Beds

Rhea-AI Summary

LOBO EV Technologies (Nasdaq: LOBO) has signed a definitive agreement with Roundtree Lab to manufacture AI-driven medical beds for the U.S. healthcare market. The partnership, following a January 2025 letter of intent, positions LOBO as the exclusive OEM for Roundtree's medical transfer beds.

The agreement projects sales of $11 million in the first year, growing to $27 million in year two, and reaching $50 million by year three, subject to actual order volume. Roundtree aims to capture 50% of the U.S. emergency medical equipment market within three years through this collaboration.

LOBO will leverage its manufacturing capabilities and expertise in connectivity systems, while Roundtree will integrate AI technology into the medical beds and utilize its established relationships with U.S. healthcare facilities for market penetration.

Positive

• Exclusive OEM agreement for medical bed manufacturing
• Projected revenue growth from $11M to $50M in 3 years
• Entry into lucrative U.S. healthcare equipment market
• Partnership leverages established healthcare facility relationships

Negative

• Revenue projections dependent on actual order volume
• Significant market share target (50%) may be challenging to achieve

Insights

Financial Analyst

LOBO's definitive agreement with Roundtree represents a potentially transformative revenue opportunity that investors should examine carefully. The projected $11 million first-year sales from this partnership nearly equals LOBO's entire $12 million market capitalization, with projections reaching $50 million by year three—a 355% increase from year one.

This strategic diversification into healthcare equipment manufacturing marks a significant pivot from LOBO's core EV business. However, investors should note the conditional nature of these projections, as the agreement explicitly states actual revenue depends on order volume from Roundtree. The manufacturing agreement structure appears to position LOBO purely as a production partner, rather than sharing in the downstream revenue from hospital sales.

For a company traditionally focused on electric mobility solutions, entering the highly regulated medical device sector represents both opportunity and significant execution risk. The market opportunity is substantial if Roundtree can achieve even a fraction of its ambitious 50% market capture goal, but LOBO must demonstrate it can meet medical-grade manufacturing standards while maintaining sufficient capacity for its existing product lines.

Manufacturing Operations Expert

This agreement represents a substantial operational challenge and opportunity for LOBO. Transitioning from manufacturing electric vehicles to medical transfer beds requires significant production line reconfiguration and quality control adaptations. Medical devices, particularly those integrated with AI systems, demand stringent compliance with regulations like FDA 510(k) clearance and ISO 13485 certification for medical device manufacturing.

The sequential revenue ramp-up ($11M → $27M → $50M) suggests a gradual production scaling strategy that makes operational sense, allowing LOBO to establish dedicated manufacturing protocols before full-scale production. However, the agreement doesn't specify whether LOBO will require additional capital investment in specialized equipment or facility modifications to meet medical device manufacturing standards.

LOBO's existing expertise in connectivity and multimedia interactive systems provides a technical foundation that aligns with smart medical devices, but the company will need to develop new supplier relationships for medical-grade components and materials. The exclusivity clause positions LOBO advantageously, potentially creating a sustainable manufacturing revenue stream if Roundtree succeeds in its market penetration goals, though meeting the quality and regulatory requirements of the U.S. healthcare market will present a steep learning curve.

Agreement Targets $11 Million in Sales in Year 1,
Growing to $88 Million by Year 3

WUXI, China, March 03, 2025 (GLOBE NEWSWIRE) -- LOBO EV Technologies Ltd. (Nasdaq: LOBO) (“LOBO” or the “Company”), an innovative e-bicycle, e-moped, e-tricycle, and electric off-highway four-wheeled shuttle designer, developer, manufacturer and seller, today announced the signing of a definitive agreement with Roundtree Lab, LLC ("Roundtree"), a Wyoming-based leader in AI-driven healthcare solutions. Pursuant to the agreement, LOBO will manufacture medical beds, and Roundtree will continue to upgrade these medical beds by integrating an AI system, turning them into AI-drive medical beds. This partnership signifies LOBO's strategic entry into the burgeoning healthcare equipment market.

Building upon the letter of intent announced on January 22, 2025, this definitive agreement solidifies the collaboration between LOBO and Roundtree. The partnership aims to leverage LOBO’s manufacturing capabilities and expertise in connectivity and multimedia interactive systems to bring Roundtree's patented AI medical bed technology to healthcare facilities across the United States.

Key Highlights of the Agreement:

1. Exclusive Manufacturing Partnership
   • LOBO will serve as the exclusive Original Equipment Manufacturer (OEM) for Roundtree's medical transfer beds, utilizing Roundtree's proprietary patents and licenses.
2. Market Penetration and Expansion
   • Roundtree's established relationships with U.S. hospitals and healthcare providers will facilitate accelerated market entry and adoption of these advanced medical transfer beds nationwide.
3. Projected Sales and Growth
   • LOBO expects that the projected sales arising from the agreement  will be $11 million for the first year, $27 million for the second year, and $50 million for the third year. The actual sales revenue depends on the actual orders amount to be placed by Roundtree.

Targeting a Massive and Growing Market

Through this opportunity, LOBO is entering the expanding U.S. medical device market. The demand for smart medical devices, particularly in elderly care and intelligent patient transport, is a key driver of this growth. Within this landscape, AI-driven emergency transfer beds represent a significant opportunity, with Roundtree aiming to capture at least 50% of the U.S. emergency medical equipment market over the next three years. This ambitious target underscores the transformative potential of the technology and the substantial market LOBO is poised to address by combining its manufacturing prowess with Roundtree’s innovative solutions.

Management Commentary

Huajian Xu, CEO of LOBO, stated:

"We are excited to formalize our partnership with Roundtree Lab to deliver medical beds to the U.S. healthcare market. This collaboration aligns with our commitment to innovation and diversification, enabling us to apply our advanced manufacturing expertise to enhance patient care and operational efficiency in medical facilities."

Gordon Franklin, CEO of Roundtree Lab, commented:

"Partnering with LOBO EV Technologies marks a significant milestone in our mission to revolutionize healthcare through AI-driven solutions. LOBO's proven manufacturing excellence and dedication to technological advancement make them the ideal partner to bring our innovative medical transfer beds to market, ultimately improving patient outcomes and healthcare operations."

About LOBO EV Technologies Ltd.
LOBO is an innovative designer, developer, manufacturer and seller of e-bicycles, e-mopeds, e-tricycles, and electric off-highway four-wheeled shuttles such as golf carts and mobility scooters for the elderly and disabled persons. LOBO also provides automobile information and entertainment software development and design services to customers. Leveraging its cutting-edge technologies in connectivity, multimedia interactive systems and artificial intelligence, LOBO re-defines and develops its products in order to provide users with convenient, affordable and pleasant driving experiences. For more information, visit: https://www.loboebike.com and https://loboev.io/. Any information displayed on, or that can be accessed through, our website or any other website or any social media is not a part of this press release.

Forward Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) as well as Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, as amended, that are intended to be covered by the safe harbor created by those sections. Forward-looking statements, which are based on certain assumptions and describe the Company’s future plans, strategies and expectations, can generally be identified by the use of forward-looking terms such as “believe,” “expect,” “may,” “will,” “should,” “would,” “could,” “seek,” “intend,” “plan,” “goal,” “project,” “estimate,” “anticipate,” “strategy,” “future,” “likely” or other comparable terms, although not all forward-looking statements contain these identifying words. All statements other than statements of historical facts included in this press release regarding the expected closing date of the public offering and the Company’s strategies, prospects, financial condition, operations, costs, plans and objectives are forward-looking statements. Important factors that could cause the Company’s actual results and financial condition to differ materially from those indicated in the forward-looking statements. Such forward-looking statements are subject to risk and uncertainties, including, but not limited to, those described in “Risk Factors,” “Operating and Financial Review and Prospects,” “Cautionary Note Regarding Forward-Looking Statements” in the Annual Report on Form 20-F filed with the SEC (File No. 333-270499) on April 30, 2024. LOBO undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events except as required by law. You should read this press release with the understanding that our actual future results may be materially different from what we expect.

Contact:
For more information, contact:

HORIZON IR
Michael Wei
Hwey@horizonconsultancy.co

FAQ

What are the projected sales figures for LOBO's medical bed manufacturing agreement?

LOBO projects $11M in sales for year 1, $27M for year 2, and $50M for year 3, subject to actual orders from Roundtree.

What is Roundtree's market share target for LOBO's medical beds in the US market?

Roundtree aims to capture 50% of the U.S. emergency medical equipment market over the next three years.

How will LOBO and Roundtree collaborate in the medical bed manufacturing agreement?

LOBO will serve as the exclusive OEM manufacturer, while Roundtree will integrate AI systems and handle market distribution through its healthcare network.

When did LOBO initially announce their partnership with Roundtree Lab?

LOBO initially announced the partnership through a letter of intent on January 22, 2025.