Law Offices of Howard G. Smith have initiated an investigation into Xiao-I Corporation (“Xiao-I” or the “Company”) investors regarding potential violations of federal securities laws.
Xiao-I carried out its IPO on March 9, 2023, releasing 5.7 million American depository shares (“ADSs”) to the public at $6.80 per ADS, generating gross proceeds of $38.76 million.
On September 25, 2023, Xiao-I reported a net loss of $18.8 million for the first half of 2023. The company disclosed a staggering 355% year-over-year increase in total operating expenses and a 708% surge in R&D expenses. These revelations led to a sharp decline in Xiao-I’s ADS price, plummeting 14.22% to $16.29 per ADS.
Subsequently, on April 30, 2024, Xiao-I unveiled FY 2023 revenues of $59.2 million alongside a net loss of $27 million. The company highlighted a substantial 118.3% year-over-year growth in R&D expenses. Following this announcement, Xiao-I’s ADS price fell 6.15% to close at $10.98 per ADS.
In another blow, on July 15, 2024, Xiao-I disclosed non-compliance with the minimum bid price requirement from the Listing Qualifications Department of NASDAQ in a notification letter dated July 11, 2024. This development caused Xiao-I’s ADS price to drop by 2.28% to $5.99 per ADS.
Investors who have acquired Xiao-I securities and wish to obtain more information about these matters can reach out to Howard G. Smith, Esquire, at the Law Offices of Howard G. Smith. Contact information includes 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020, telephone (215) 638-4847, or email howardsmith@howardsmithlaw.com.
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