Exploring Xiao-I Corporation’s Financial Turbulence
On or about March 9, 2023, Xiao-I took the plunge into the public market with its IPO, releasing 5.7 million American depository shares (“ADSs”) to eager investors at $6.80 per ADS, securing a solid $38.76 million in gross proceeds.
Despite this grand entrance, dark clouds began to gather over Xiao-I. On September 25, 2023, a cataclysm struck as Xiao-I disclosed a net loss of $18.8 million for the first half of 2023. The revelation of a staggering 355% increase in total operating expenses year over year sent shockwaves through the market, causing Xiao-I’s ADS price to plummet by 14.22% to $16.29 per ADS.
As if one blow wasn’t enough, on April 30, 2024, Xiao-I delivered another harsh reality check. With FY 2023 revenues reaching $59.2 million, the company still suffered a net loss of $27 million. The announcement of a 118.3% surge in R&D expenses year over year caused further dismay, leading Xiao-I’s ADS price to drop by 6.15% to $10.98 per ADS.
Just when investors hoped for a silver lining, another storm hit Xiao-I on July 15, 2024. The company disclosed that it had received a dreaded notification letter from NASDAQ’s Listing Qualifications Department, asserting that Xiao-I no longer met the minimum bid price requirement. Consequently, Xiao-I’s ADS price sunk by 2.28% to $5.99 per ADS.
Securities Law Firm on the Hunt
Recognizing the distress among investors, Glancy Prongay & Murray LLP (“GPM”), a prominent shareholder rights champion, initiated an investigation into Xiao-I on behalf of investors. Standing as a beacon of hope amidst turbulent financial waters, GPM delves deep into Xiao-I’s operations to unearth any potential breaches of federal securities laws.
GPM: A Stalwart in Pursuit of Investor Justice
GPM’s reputation precedes itself as a premier law firm dedicated to advocating for investors and consumers entangled in the web of securities litigation and other intricate class action cases. With a track record as illustrious as a star-studded gala, GPM’s relentless pursuit of justice has seen its attorneys secure billions of dollars in settlements for affected parties.
A beacon of integrity in the legal realm, GPM has established its presence nationwide, with a team of nearly 40 legal eagles renowned for their groundbreaking triumphs. From financial restatements to insider trading sagas, GPM’s legal warriors have marched into battle against various forms of corporate misconduct, fearlessly challenging the status quo and bringing malefactors to justice.
The success stories penned by GPM have not gone unnoticed, with industry behemoths like The Wall Street Journal, The Financial Times, and Forbes shining a spotlight on their monumental victories.
Wrapping Up the Investigation
As the investigation into Xiao-I Corporation unfolds, investors watch with bated breath, hoping for answers and resolution in the face of financial turmoil. GPM stands as a pillar of strength, charting a course towards justice and accountability, steering investors through turbulent seas towards calmer waters.
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