SHANGHAI, May 15, 2025 /PRNewswire/ -- Xiao-I Corporation ("Xiao-I" or the "Company") (NASDAQ: AIXI), a global leader in artificial intelligence solutions, today announced selected audited financial results for the year 2024, highlighting approximately $70.31 million in revenue, representing a 18.8% year-over-year growth, a gross profit margin (GPM) improvement of 2 percentage points, and a significant narrowing of net loss to $14.55 million. These results position the Company to achieve profitability in 2025.
Key Financial Highlights
- Revenue Growth: revenue for 2024 reached approximately $70.31 million, up 18.8% year-over-year, driven by surging demand for its Hua Zang LLM - powered Model-as-a-Service (MaaS) solutions and breakthrough AI hardware sales.
- Gross Profit: Gross profit increased from $39,423,570 in 2023 to $48,049,547 in 2024, representing a growth rate of approximately 21.9%.
- Margin Expansion: Gross profit margin improved to 68.3%, compared to 66.6% in 2023, reflecting operational leverage from MaaS commercialization and cost-optimized deployment.
- R&D Expenses: Research and development expenses totaled $34.66 million, down from $52.39 million in 2023. The 33.8% reduction reflects improved efficiency and the productization of core technologies.
- Net Loss Reduction: Net loss narrowed significantly to $14.55 million in 2024, down 46.1% from $27.01 million in 2023, underscoring disciplined cost management and revenue scalability.
Material Unfinished Matters
During the fiscal year 2024, Xiao-I Corporation pursued legal proceedings against Apple Inc. regarding alleged patent infringement. Key developments in the case include:
July 31, 2024: The trial phase of the lawsuit concluded.
September 24, 2024: The Shanghai High People's Court held a hearing session, attended by legal representatives from both parties.
November 1, 2024: The Shanghai High People's Court held a second hearing session.
As of the date of this release, all legal processes have been completed, with all parties awaiting the court's final ruling.
Management Comment
"2024 marks our evolution into a mature AI-driven growth company, powered by the Hua Zang LLM foundation. Going forward, while advancing profitability through hardware innovations like AI Glasses and tAIkbox, we confront material risks requiring vigilant management. Geopolitical fragmentation—particularly US-China technology decoupling—impacts hardware procurement cycles and cross-border service deployments. Also, multi-tier supply chain resilience remains critical for AI hardware scaling, with regional conflicts posing potential component shortages. With 90% domestic operational anchoring, MaaS model's tariff-agnostic nature provides partial insulation, while AI-driven G&A optimization below 15% of revenue enhances risk absorption capacity. Management remains committed to disciplined execution across these vectors to achieve 2025 profitability targets."
About Xiao-I Corporation
Xiao-I Corporation is a leading cognitive intelligence enterprise in China that offers a diverse range of business solutions and services in artificial intelligence, covering natural language processing, voice and image recognition, machine learning, and affective computing. Since its inception in 2001, the Company has developed an extensive portfolio of cognitive intelligence technologies that are highly suitable and have been applied to a wide variety of business cases. Xiao-I powers its cognitive intelligence products and services with its cutting-edge, proprietary AI technologies to enable and promote industrial digitization, intelligent upgrading, and transformation. For more information, please visit: www.xiaoi.com.
Forward-Looking Statements
This press release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. When the Company uses words such as "may," "will," "intend," "should," "believe," "expect," "anticipate," "project," "estimate" or similar expressions that do not relate solely to historical matters, it is making forward-looking statements. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may cause the actual results to differ materially from the Company's expectations discussed in the forward-looking statements. These statements are subject to uncertainties and risks including, but not limited to, the following: the Company's ability to achieve its goals and strategies, the Company's future business development and plans for future business development, including its financial conditions and results of operations, product and service demand and acceptance, reputation and brand, the impact of competition and pricing, changes in technology, government regulations, fluctuations in general economic and business conditions in China, and assumptions underlying or related to any of the foregoing and other risks contained in reports filed by the Company with the U.S. Securities and Exchange Commission ("SEC"). For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. Additional factors are discussed in the Company's filings with the SEC, including under the section entitled "Risk Factors" in its annual report on Form 20-F filed with the SEC on May 15, 2025, as well as its current reports on Form 6-K and other filings, all of which are available for review at www.sec.gov. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.
For investor and media inquiries, please contact: Ms. Berry Xia Email: ir@xiaoi.com
XIAO-I CORPORATION
CONSOLIDATED BALANCE SHEETS
(In U.S. dollars, except for share and per share data, or otherwise noted)
As of December 31,
2023
2024
Assets
Current assets:
Cash and cash equivalents
$
1,564,542
$
846,593
Restricted cash
20,676
-
Accounts receivable, net
28,326,985
55,543,017
Amounts due from related parties, current
-
13,587,536
Inventories
67,826
14,362
Contract costs
1,691,293
2,502,678
Advance to suppliers
1,149,642
3,205,098
Prepaid expenses and other current assets, net
5,233,553
792,732
Total current assets
38,054,517
76,492,016
Non-current assets:
Property and equipment, net
2,125,629
1,867,736
Intangible assets, net
212,445
143,370
Long-term investments
2,650,458
2,497,594
Right of use assets
2,431,475
833,030
Prepaid expenses and other non-current assets
7,000,357
3,677,728
Amount due from related parties, non-current
13,859,350
-
Total non-current assets
28,279,714
9,019,458
TOTAL ASSETS
$
66,334,231
$
85,511,474
Liabilities
Current liabilities:
Short-term borrowings
$
26,760,940
$
32,879,865
Accounts payable
13,674,339
27,131,439
Amount due to related parties, current
704,947
217,068
Deferred revenue
1,654,145
2,385,228
Convertible loans
-
216,756
Accrued expenses and other current liabilities
13,938,253
23,289,453
Lease liabilities, current
929,755
483,658
Total current liabilities
57,662,379
86,603,467
Non-current liabilities:
Amount due to related parties, non-current
7,905,290
7,336,833
Accrued liabilities, non-current
7,759,474
7,043,185
Lease liabilities, non-current
1,473,950
295,962
Total non-current liabilities
17,138,714
14,675,980
TOTAL LIABILITIES
74,801,093
101,279,447
Commitments and Contingencies
-
-
Shareholders' deficit
Ordinary shares (par value of $0.00005 per share; 1,000,000,000 shares and 1,000,000,000 shares authorized as of December 31, 2023 and 2024, respectively; 24,015,592 shares and 31,949,038 shares issued and outstanding as of December 31, 2023 and 2024, respectively)
$
1,201
$
1,598
Preferred shares (par value of $0.00005 per share; 3,700,000 preferred shares authorized as of December 31, 2023 and 2024, respectively; 3,700,000 preferred shares issued and outstanding as of December 31, 2023 and 2024, respectively)
185
185
Additional paid-in capital
108,729,047
115,745,140
Statutory reserve
237,486
237,486
Accumulated deficit
(110,833,045)
(125,338,509)
Accumulated other comprehensive loss
(2,998,562)
(2,848,314)
XIAO-I CORPORATION shareholders' deficit
(4,863,688)
(12,202,414)
Non-controlling interests
(3,603,174)
(3,565,559)
Total shareholders' deficit
(8,466,862)
(15,767,973)
TOTAL LIABILITIES AND SHAREHOLDERS' DEFICIT
$
66,334,231
$
85,511,474
XIAO-I CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (In U.S. dollars, except for share and per share data, or otherwise noted)
For the years ended December 31,
2022
2023
2024
Sale of software products
$
3,547,113
$
1,566,455
$
1,516,169
Sale of hardware products
46,295
75,363
1,395,345
Technology development service
16,419,889
7,839,700
24,105,644
M&S service
2,429,526
2,676,185
2,419,901
Sale of cloud platform products
25,742,135
47,007,556
40,877,256
Net revenues
48,184,958
59,165,259
70,314,315
Cost of sale of software products
(888,220)
(834,570)
(98,442)
Cost of sale of hardware products
(25,141)
(51,201)
(583,939)
Cost of technology development service
(12,194,044)
(6,059,330)
(10,444,827)
Cost of M&S service
(1,255,973)
(971,417)
(781,258)
Cost of sale of cloud platform products
(3,015,766)
(11,825,171)
(10,356,302)
Cost of revenues
(17,379,144)
(19,741,689)
(22,264,768)
Gross profit
30,805,814
39,423,570
48,049,547
Operating expenses:
Selling expenses
(3,911,818)
(4,550,997)
(3,320,886)
General and administrative expenses
(6,028,637)
(4,407,215)
(22,940,916)
Research and development expenses
(24,001,138)
(52,387,540)
(34,658,779)
Total operating expenses
(33,941,593)
(61,345,752)
(60,920,581)
Loss from operations
(3,135,779)
(21,922,182)
(12,871,034)
Other income/(expenses):
Investment (loss)/income
(143,181)
75,542
(81,618)
Interest expenses, net
(2,440,815)
(2,323,341)
(2,319,820)
Foreign currency exchange (loss)/gain
(68,902)
2,789
3,864
Other income, net
444,018
949,116
717,280
Total other expenses
(2,208,880)
(1,295,894)
(1,680,294)
Loss before income tax expense
(5,344,659)
(23,218,076)
(14,551,328)
Income tax expense
(660,655)
(3,787,692)
-
Net loss
$
(6,005,314)
$
(27,005,768)
$
(14,551,328)
Net loss attributable to non-controlling interests
(106,779)
(543,961)
(45,864)
Net loss attributable to XIAO-I CORPORATION shareholders
(5,898,535)
(26,461,807)
(14,505,464)
Other comprehensive income
Foreign currency translation change, net of nil income taxes
403,816
303,114
233,727
Total other comprehensive income
403,816
303,114
233,727
Total comprehensive loss
$
(5,601,498)
$
(26,702,654)
$
(14,317,601)
Total comprehensive income/(loss) attributable to non- controlling interests
95,280
(504,951)
37,615
Total comprehensive loss attributable to XIAO-I CORPORATION shareholders
(5,696,778)
(26,197,703)
(14,355,216)
Loss per ordinary share attributable to XIAO-I CORPORATION shareholders
Basic
(0.27)
(1.12)
(0.56)
Diluted
(0.27)
(1.12)
(0.56)
Weighted average number of ordinary shares outstanding
