A Rocky Road for Xiao-I Corporation
On or about March 9, 2023, Xiao-I Corporation embarked on its IPO journey, offering 5.7 million American depository shares (“ADSs”) at $6.80 per ADS, reaping $38.76 million in gross proceeds. This move seemed poised for success, a budding seed ready to flourish.
Early Woes and Financial Struggles
Trouble brewed on September 25, 2023, as Xiao-I divulged a staggering net loss of $18.8 million for the first half of 2023. The company further exposed a 355% surge in total operating expenses and a 708% spike in R&D costs, triggering a 14.22% plunge in ADS price to $16.29.
Darkening Clouds and Investor Discontent
With storm clouds looming, on April 30, 2024, Xiao-I shocked investors with FY 2023 revenues of $59.2 million, coupled with a $27 million net loss. The announcement of a 118.3% year-over-year growth in R&D spending led to a further 6.15% drop in ADS price, closing at $10.98.
A Final Blow to Investor Confidence
The final nail in the coffin came on July 15, 2024, when Xiao-I received notice from NASDAQ about failing to meet the minimum bid price requirement. This revelation caused a 2.28% decline in ADS price to $5.99, further denting investor confidence in the company’s future.
Looking Ahead
As the dust settles on Xiao-I Corporation’s tumultuous journey, investors are left to ponder the twists and turns that marked the company’s path. The rise and fall of Xiao-I serve as a cautionary tale for those navigating the volatile waters of the stock market.
Contact Information and Disclosure
For individuals impacted by the events surrounding Xiao-I Corporation, reaching out to the Law Offices of Frank R. Cruz may provide clarity and guidance. Contact Frank R. Cruz at 2121 Avenue of the Stars, Suite 800, Century City, California 90067, or visit their website at www.frankcruzlaw.com for further information.
