Xiao-I Corporation Faces Nasdaq Listing Deficiency, Must Regain Compliance

Background on Xiao-I Corporation

Xiao-I Corporation is recognized as a leading cognitive artificial intelligence firm based in China, established in 2001. The company focuses on various AI-driven solutions including natural language processing, machine learning, and image recognition. With a robust portfolio of technologies, Xiao-I aims to empower businesses through digitization and intelligent transformation.

Notification from Nasdaq

On August 6, 2026, Xiao-I Corporation was notified by the Listing Qualifications Department of The Nasdaq Stock Market about a compliance issue with its Minimum Market Value of Publicly Held Shares (MVPHS). This notification came as a result of the company failing to maintain the required MVPHS of at least $15 million as per Nasdaq Listing Rule 5450(b)(3)(C).

The rule necessitates that companies listed on the Nasdaq Global Market uphold a minimum market value for publicly held shares. The assessment was based on the closing prices of the company's American Depositary Shares (ADSs) over a 30-day period leading up to the notice, where the MVPHS fell below the stipulated requirement.

Compliance Period Details

Xiao-I has been granted a compliance period lasting until February 1, 2027. During this time, the company must ensure its MVPHS closes at or above $15 million for a minimum of ten consecutive business days. Nasdaq could potentially extend the compliance period but typically not beyond 20 business days.

Consequences of Non-Compliance

The notice itself does not affect the trading status of Xiao-I's ADSs, which remain listed on the Nasdaq under the symbol ‘AIXI’. The company intends to closely monitor its market value and assess strategies for regaining compliance before the deadline. However, there are no guarantees that the company can achieve this goal within the stipulated timeframe or meet other Nasdaq listing requirements.

Should Xiao-I fail to meet compliance by the deadline, it risks a delisting notification from Nasdaq. In such an event, the company would have the option to appeal against this decision to a Nasdaq hearings panel as per the applicable rules.

Moving Forward

While this situation poses significant challenges for Xiao-I Corporation, the company remains focused on compliance and the future prospects of its business solutions and services. Xiao-I is committed to using its advanced AI capabilities to drive projects that may enhance its market position and ensure better alignment with Nasdaq requirements.

In summary, the upcoming months are critical for Xiao-I as it navigates the requirements set forth by Nasdaq, and the outcome will largely depend on its ability to stabilize its market value and maintain compliance with all relevant regulations.