AIXI Xiao-I Corp
Price Chart
Executive Summary
Xiao-I Corp filed a prospectus supplement to register up to $3,250,000 in ADSs issuable upon conversion of a convertible promissory note issued to Streeterville Capital on April 29, 2026. The note has a variable conversion price set at 90% of the lowest daily VWAP over the prior 10 trading days minus $0.05, meaning more shares will be issued if the stock price declines. The company received $3.0 million in gross proceeds (net ~$2.99M after discounts and expenses) for working capital, but the dilutive structure and company's history of repeated convertible financings signal continued financial distress.
Actionable Insight
Monitor conversion activity by Streeterville Capital and the resulting dilution. The variable pricing structure creates a headwind for the stock as conversions increase. Watch for potential Nasdaq compliance issues given the recent reverse splits and fragile market capitalization.
Key Facts
- Convertible note principal: $3,250,000; purchase price: $3,000,000 (includes $240,000 OID and $10,000 transaction expenses).
- Variable conversion price: 90% of the lowest daily VWAP over the prior 10 trading days minus $0.05.
- Note matures April 29, 2027, bears 6% interest (18% default rate), and is unsecured.
- 8,503,369 ordinary shares were already issued as pre-delivery shares in connection with the transaction.
- Net proceeds of ~$2.99M will be used for working capital and general corporate purposes.
- Company had an accumulated deficit of $226.6 million as of December 31, 2025.
- Prior convertible notes issued in 2024 and 2025 have been converted in full.
- Nasdaq has previously flagged non-compliance with minimum bid price and market value of publicly held shares; recent reverse splits (1:9 in Aug 2024, 1:20 in May 2026) were required to regain compliance.
Financial Impact
Up to $3.25M in ADSs may be issued at a variable discount to market; actual number of shares uncertain but could be substantial if stock price declines.
Risk Factors
- Significant dilution risk due to variable conversion price that increases as stock price falls.
- Nasdaq delisting risk if bid price falls below $1.00 again within 12 months of May 2026 reverse split.
- Continued reliance on dilutive financing suggests ongoing cash burn and limited access to traditional capital.
- PRC regulatory risks associated with VIE structure and potential CSRC/cybersecurity issues.
Market Snapshot
Documents Analyzed
This report is based on 4 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 424B5 Filing (Primary) | 0001213900-26-060946 |
| Document: 0001213900-26-060946-index-headers.html | 0001213900-26-060946 |
| Document: 0001213900-26-060946-index.html | 0001213900-26-060946 |
| Document: 0001213900-26-060946.txt | 0001213900-26-060946 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
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Jun 3, 2026
6d ago
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6-K
| $10.03 $8.59 | ▼ −14.36% | ▼ −14.76% | $8.87 (−11.57%) |
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May 26, 2026
14d ago
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424B5
| $14.40 $13.62 | ▲ +5.42% | ▲ +5.43% | $8.87 (+38.40%) |
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May 15, 2026
25d ago
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20-F
| $11.33 $10.99 | ▲ +3.00% | ▲ +2.35% | $8.87 (+21.71%) |
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May 7, 2026
4w ago
|
6-K
| $0.7230 $0.6100 | ▲ +15.63% | ▲ +16.46% | $8.87 (−1126.83%) |
|
May 5, 2026
5w ago
|
6-K
| $0.8100 $0.7470 | ▼ −7.78% | ▼ −9.16% | $8.87 (+995.06%) |
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Apr 30, 2026
5w ago
|
6-K
| $0.8150 $0.7850 | ▲ +3.68% | ▲ +3.34% | $8.87 (−988.34%) |
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Apr 1, 2026
9w ago
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6-K
| $0.0980 $0.1310 | ▲ +33.67% | ▲ +33.59% | $8.87 (+8951.02%) |
US Market Status
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