LOS ANGELES--(BUSINESS WIRE)--The Law Offices of Frank R. Cruz announces an investigation of Xiao-I Corporation (“Xiao-I” or the “Company”) (NASDAQ: AIXI) on behalf of investors concerning the Company’s possible violations of federal securities laws.
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On or about March 9, 2023, Xiao-I conducted its IPO, issuing 5.7 million of its American depository shares (“ADSs”) to the public at the Offering price of $6.80 per ADS for gross proceeds of $38.76 million.
On September 25, 2023, Xiao-I issued a press release announcing inter alia, a net loss of $18.8 million for the first half of 2023, and revealing that its “[t]otal operating expenses” increased 355% year over year, and R&D expenses “grew by 708% year over year.” On this news, Xiao-I’s ADS price fell $2.70, or 14.22%, to close at $16.29 per ADS on September 25, 2023.
Then, on April 30, 2024, Xiao-I revealed, inter alia, FY 2023 revenues of $59.2 million as well as a net loss of $27 million, noting “[R&D] expenses, [] grew by 118.3% year over year.” On this news, Xiao-I’s ADS price fell $0.72, or 6.15%, to close at $10.98 per ADS on April 30, 2024.
Finally, on July 15, 2024, Xiao-I announced it “received a notification letter dated July 11, 2024 (the ‘Deficiency Letter’) from the Listing Qualifications Department of [t]he [NASDAQ], indicating that the Company is no longer in compliance with the minimum bid price requirement[.]” On this news, Xiao-I’s ADS price fell $0.13, or 2.28%, to close at $5.99 per ADS on July 15, 2024.
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If you purchased Xiao-I securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 2121 Avenue of the Stars, Suite 800, Century City, California 90067 at 310-914-5007, by email to info@frankcruzlaw.com, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.
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