The deficiency notification, issued on August 6, follows a period between June 23 and August 4, 2026, during which the firm’s market value of publicly held shares dipped below the $15 million threshold required by Nasdaq Listing Rule 5450(b)(3)(C). While this notice does not immediately suspend trading, it places the company on a strict timeline to rectify the shortfall.
Xiao-I has until February 1, 2027, to regain compliance. To satisfy Nasdaq’s requirements, the company’s market value must remain at or above the $15 million mark for at least 10 consecutive business days before the February deadline. Management stated they are evaluating options to address the valuation gap, though they acknowledged no certainty exists that compliance will be achieved within the allotted window. Should the deadline pass without improvement, the company would face a formal delisting notification, at which point it could request a hearing to appeal the decision.

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