Xiao‑I Corporation (AIXI) received two Nasdaq Listing Qualifications Department notices on December 23, 2025. The first notice cited a failure to maintain a closing bid price of $1.00 per share for 30 consecutive business days from November 3 to December 15, 2025, and granted a 180‑day compliance period ending June 16, 2026. The second notice identified a shortfall in the minimum market value of publicly held shares, with the company’s market value falling below $15 million for 30 consecutive business days from November 4 to December 16, 2025, and provided a similar 180‑day compliance window ending June 15, 2026. The company stated that the notices have no immediate effect on the listing or trading of its American Depositary Shares, but it is evaluating options to regain compliance within the allotted periods.
The deficiencies stem from a prolonged decline in the stock’s trading level, which has remained below the $1.00 threshold for months, and a corresponding drop in market capitalization that has fallen below the $15 million minimum. The underlying financial picture shows a company that has grown revenue but continues to post net losses, with FY 2023 revenue up 22.8% to $1.18 billion and a net loss of $27 million, while operating expenses have risen sharply. Gross margin has slipped from 66.6% in FY 2023 to 64.5% in H1 2024, reflecting a shift toward lower‑margin business and the cost of developing the Hua Zang LLM. These financial pressures have eroded the market value of publicly held shares and pushed the stock price below the required bid‑price threshold.
Management has responded by outlining a plan to restore compliance. CEO Hui Yuan emphasized a strategic pivot toward profitability, noting that the company will reduce R&D spend after the launch of its Hua Zang Universal Large Language Model Ecosystem. The company is also renewing key AI‑driven partnerships across finance, contact center, and manufacturing sectors, which could help lift revenue and improve the bid‑price profile. The plan includes a focus on high‑margin verticals and a disciplined cost structure to achieve the ten‑day compliance requirement within the 180‑day window.
Investors have reacted with heightened concern, as the Nasdaq notices signal a risk of delisting if compliance is not achieved. The company’s market value has been below the $15 million threshold for an extended period, and the stock’s persistent trading below $1.00 has raised questions about liquidity and investor confidence. The regulatory action underscores the importance of meeting Nasdaq’s ongoing listing standards and highlights the potential impact on the company’s ability to raise capital and maintain market presence.
The long‑term implications are significant. Failure to regain compliance could trigger a Nasdaq delisting, forcing the company to seek alternative exchanges or pursue a reverse merger. Even if compliance is achieved, the company will need to sustain a higher bid price and market value, which may require continued revenue growth, margin expansion, and disciplined capital allocation. The situation places additional pressure on management to demonstrate operational turnaround and investor confidence in the near term.
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