Xiao-I Corporation Under Investigation for Potential Securities Violations

Law Offices of Howard G. Smith has launched an investigation into Xiao-I Corporation AIXI as investors raise concerns about possible federal securities law violations.

Initial Public Offering Raises Significant Funds On March 9, 2023, Xiao-I completed its IPO by offering 5.7 million American Depository Shares (ADSs) at an initial price of $6.80 each, generating gross proceeds of $38.76 million.

Recent Financial Struggles Impact Stock Price In a press release on September 25, 2023, the company reported a net loss of $18.8 million for the first half of the year. Total operating expenses soared by 355%, and research and development (R&D) costs surged by a staggering 708%. Following this announcement, Xiao-I’s ADS price dropped by $2.70 (14.22%) to $16.29.

2023 Fiscal Year Results Show Continued Declines On April 30, 2024, Xiao-I disclosed revenues of $59.2 million for FY 2023 along with a net loss of $27 million. The report highlighted that R&D expenditures had risen by 118.3% compared to the previous year. After this news broke, the ADS price fell by $0.72 (6.15%) to $10.98.

Stock Faces Additional Pressure from NASDAQ Notification On July 15, 2024, Xiao-I announced it received a notification letter from NASDAQ, indicating non-compliance with minimum bid price requirements. Following this revelation, the company’s ADS price dropped by $0.13 (2.28%) to $5.99.

Seeking Information from Investors Investors who purchased Xiao-I securities or have information relevant to these developments, or who have further questions regarding their rights, are encouraged to reach out to Howard G. Smith, Esquire, at the Law Offices of Howard G. Smith. He can be contacted by phone at (215) 638-4847 or via email at howardsmith@howardsmithlaw.com. More information is also available on their website at www.howardsmithlaw.com.

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