Revenue Growth - In 2024, the company's total revenue increased to US$70.31 million, driven by a 167.4% year-over-year growth in the Model-as-a-Service (MaaS) business, which contributed 73.0% of total revenue[405]. - The Hua Zang LLM generated US$28.99 million in revenue, reflecting a 257.9% year-over-year increase, underscoring its significance in enterprise applications[412]. - Revenue from the MaaS segment surged to USD 51.32 million in 2024, accounting for 73.0% of total net revenue, compared to 32.4% in 2023[443]. - The company generated USD 40.88 million from the sale of cloud platform products in 2024, which is 58.1% of total revenue[444]. - Revenue from technology development services increased by 207.5% from US$7.84 million in 2023 to US$24.11 million in 2024, driven by US$10.4 million from MaaS contracts[457]. - Revenue from sales of hardware products increased significantly from US$0.08 million in 2023 to US$1.40 million in 2024, attributed to the successful launch of AI-powered smart glasses[460]. - Revenue from cloud platform products decreased by 13.0% from US$47.01 million in 2023 to US$40.88 million in 2024, attributed to timing-related factors in contract renewals[456]. Financial Performance - The company's net losses narrowed to US$14.55 million in 2024, a significant improvement from the US$27.01 million net loss reported in 2023[412]. - The gross profit margin improved to 68.3% in 2024, up from 66.6% in 2023, with gross profit amounting to USD 48.05 million[441]. - Selling expenses decreased to USD 3.32 million in 2024, representing 4.7% of total revenue, compared to 7.7% in 2023[441]. - General and Administrative Expenses (G&A) increased by 25.2% year-over-year to US$22.94 million in 2024, driven by one-time charges including bad debt provisions and workforce restructuring costs[421]. - Research and Development (R&D) investment decreased by 33.8% year-over-year to US$34.66 million in 2024, primarily due to the completion of the Hua Zang LLM's pre-training phase[414]. - The company reported net revenue of USD 70.31 million for the year ended December 31, 2024, representing a 18.5% increase from USD 59.17 million in 2023[441]. Cost Management - The cost of revenues for 2024 was USD 22.26 million, which is 31.7% of total net revenue, down from 33.4% in 2023[441]. - Cost of revenues increased by 12.8% from US$19.74 million in 2023 to US$22.26 million in 2024, driven by higher cloud hosting service fees and material costs[461]. - General and administrative expenses increased by 420.5% from US$4.41 million in 2023 to US$22.94 million in 2024, primarily due to increased allowance for credit losses[464]. - Selling expenses decreased by 27.0% from US$4.55 million in 2023 to US$3.32 million in 2024, due to reduced staff costs and marketing expenses[463]. Future Outlook - The company aims to deliver over 10,000 units of AI-powered smart glasses in 2025, focusing on the North American market[417]. - The tAIkbox AI customer service solution is set to launch in Q1 2025, designed to enhance operational efficiency across various industries[418]. - The company anticipates bringing the G&A-to-revenue ratio below 15% in 2025 through sustainable cost controls[421]. - The company plans to explore B2C market potential and expand into overseas markets to enhance growth opportunities[432]. Cash Flow and Financing - The company raised approximately US$10 million through registered offerings to support general corporate purposes and strategic initiatives[408]. - Net cash used in operating activities was US$15.14 million in 2024, compared to a net loss of US$14.55 million, with significant adjustments including US$13.45 million in non-cash items[501]. - Net cash provided by financing activities amounted to US$15.84 million in 2024, mainly from US$34.05 million in short-term bank borrowings[506]. - In 2023, net cash provided by financing activities was US$36.47 million, driven by US$34.40 million from the issuance of ordinary shares upon IPO[507]. Market and Economic Factors - Foreign exchange fluctuations may impact profit margins as the company derives revenue in RMB, with potential adverse effects from RMB appreciation against USD[439]. - The company does not hedge against currency risk, which may affect financial results reported in U.S. dollar terms[758]. - Inflation has not had a material effect on the company's business, but significant inflationary pressures could harm financial condition and operating results[765]. - The company is not currently exposed to interest rate risk as it does not own interest-bearing instruments[761]. - Seasonality does not materially affect the company's business or operational results[763]. Customer and Supplier Concentration - The largest customer accounted for 20.4%, 29.3%, and 22.4% of total revenue for the years ended December 31, 2022, 2023, and 2024, respectively[756]. - The top five customers contributed 58.4%, 69.7%, and 49.9% of total revenue for the years ended December 31, 2022, 2023, and 2024, respectively[756]. - Purchases from the top three suppliers represented 66.8%, 73.2%, and 39.6% of total purchases for the years ended December 31, 2022, 2023, and 2024, respectively[757].

Profitability Roadmap: Efficiency and DisciplineSHANGHAI, 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 pos ...

ROCKVILLE, Md., May, 1 2025 /PRNewswire/ -- Xiao-I Corporation (NASDAQ: AIXI), a leading artificial intelligence company ("Xiao-I"), today announced the launch of its groundbreaking artificial intelligence solution for golf course management - a specialized implementation of its proprietary tAIkbox platform tailored for sports facility operations. This AI-driven platform resolves critical operational challenges for the United States' golf industry—home to the world's largest infrastructure network with 15,9 ...

Core Insights - Xiao-I Corporation is experiencing accelerated commercial traction for its AI-powered glasses, projecting revenue between $12 million and $15 million in 2025 due to strong market demand and production scaling efforts [1] Product Performance - Since the launch in August 2024, Xiao-I's AI glasses have sold over 1,500 units, featuring advanced hardware such as diffractive waveguide optics and Micro-LED displays for enhanced visibility and user experience [2] - The glasses are competitively priced compared to other smart glasses that can cost up to $5,000, offering a more powerful and versatile experience at a lower price point [3] Manufacturing and Production Capacity - Xiao-I is collaborating with tier-1 manufacturing partners to achieve an annual production capacity of 50,000 units in 2025, ensuring dedicated capacity and scheduling priority to meet market demands [4] - The company has reaffirmed its target to deliver 10,000 units in 2025, supported by strategic supplier partnerships and product line expansions [5] Strategic Vision - The AI glasses are positioned as a key component of Xiao-I's roadmap to profitability in 2025, alongside other offerings like the tAIkbox platform and intelligent call center solutions [6]

Core Insights - Xiao-I Corporation has reported a revenue of approximately US$70.3 million for the year ended December 31, 2024, reflecting a 19% year-over-year increase driven by the adoption of its HuaZang large language model as a Model-as-a-Service and rising sales of AI-powered consumer hardware [2][3] - The company achieved a gross margin improvement to 69% in 2024, up from 67% in 2023, due to a higher-margin service mix and scale efficiencies [3] - Xiao-I has narrowed its net loss to US$12.9 million, marking a 52% improvement from the previous year, attributed to disciplined cost control and revenue growth [3] Financial Highlights - Revenue: ~US$70.3 million in 2024, +19% YoY [3] - Gross Margin: Improved to 69% (vs. 67% in 2023) [3] - Net Loss: Narrowed to US$12.9 million, a 52% improvement from 2023 [3] Management Commentary - The company has expressed confidence in achieving full-year profitability in 2025, supported by the momentum in HuaZang MaaS deployments and AI hardware sales [4] - The focus will remain on high-margin, recurring revenue streams while investing in innovation to strengthen competitive advantages [4] Litigation Update - Xiao-I has ongoing litigation against Apple Inc. for alleged patent infringement related to voice-assistant technologies, with a ruling from the Shanghai High People's Court pending [5]

Core Insights - Xiao-I Corporation has formed a global strategic partnership with TF International Securities Group to integrate its Hua Zang Large Language Model into TF International's financial services, enhancing AI applications in investment research and operational efficiency [1][3] Group 1: Partnership Overview - The collaboration aims to streamline investment research workflows and automate repetitive tasks through a customized AI Agent platform powered by Hua Zang LLM [2] - This partnership is seen as a critical milestone for Xiao-I's global expansion and AI adoption in the financial sector [3] Group 2: Technological Integration - The Hua Zang LLM is characterized by three core strengths: Controllability, Customizability, and Deliverability, which facilitate rapid commercial adoption across various industries [4] - Xiao-I will tailor the Hua Zang model to fit TF International's proprietary datasets and workflows, ensuring compliance with global financial standards [4] Group 3: Executive Perspectives - The partnership aligns with Xiao-I's dual innovation strategy, emphasizing the importance of real-world commercialization of technological breakthroughs [3] - TF International recognizes AI as a cornerstone for next-generation financial services, aiming to deliver smarter and more sustainable value to clients [3] Group 4: Company Background - Xiao-I Corporation is a leading cognitive intelligence enterprise in China, specializing in a wide range of AI solutions including natural language processing and machine learning [5] - The company has been operational since 2001 and has developed a diverse portfolio of cognitive intelligence technologies applicable to various business cases [5]

Core Viewpoint - Xiao-I Corporation has launched tAIkbox 1, an AI-powered device designed to enhance customer service by providing smooth and intuitive interactions that rival human agents [1][2][5] Group 1: Product Overview - tAIkbox 1 addresses the frustrations of current call center automation, which often leads to poor customer experiences due to endless menus and robotic responses [2] - The device integrates easily with existing phone and computer systems, requiring no significant IT changes, and offers instant plug-and-play performance [3] - It utilizes Xiao-I's Hua Zang large language model and advanced algorithms to understand natural speech and respond with human-like finesse [1][3] Group 2: Market Potential - The U.S. customer service sector is projected to reach USD 21.82 billion in revenue by 2024, with a compound annual growth rate (CAGR) of approximately 1.2% since 2012 [4] - tAIkbox 1 targets high-impact industries such as hospitality, healthcare, travel, and retail, aiming to improve customer satisfaction and operational efficiency [4] Group 3: Company Background - Xiao-I Corporation is a leading cognitive intelligence enterprise in China, established in 2001, with a strong portfolio of AI technologies suitable for various business applications [6]

Core Insights - Xiao-I Corporation has successfully deployed an 8-million-HKD AI-powered HR system for a public sector client in Hong Kong, showcasing its influence in public sector digitization and the scalability of its Model-as-a-Service (MaaS) platform [1][3] - The Hua Zang Large Language Model (LLM) has streamlined HR operations for the client, achieving high accuracy and transparency while minimizing computing resource requirements, thus reducing deployment complexity and operational costs [2][7] - The company plans to replicate its success in North America, tailoring its solutions to meet the needs of public administration and corporate sectors, using the Hong Kong case study as a blueprint [4][3] Company Overview - Xiao-I Corporation is a leading cognitive intelligence enterprise in China, specializing in a wide range of AI solutions, including natural language processing, voice and image recognition, and machine learning [5] - The company has a proven track record in Asia, with its AI solutions adopted by various governments and enterprises for diverse applications, aligning with global demand for cost-effective and high-impact technologies [3][5] Key Advantages of the Solution - Rapid implementation is facilitated by pre-trained module libraries, which cut deployment time by 40%, allowing the system to be operationalized within weeks [7] - The solution is optimized for low-resource environments, eliminating the need for expensive GPU clusters, which aligns with public sector budget constraints [7] - The modular design of the system allows for seamless customization across various sectors, including education and healthcare [7]

Core Insights - Xiao-I Corporation emphasizes its expertise in reinforcement learning (RL) technology and its integration into the Hua Zang Large Language Model (LLM), which offers cost-effective solutions for AI deployment [1][2][3] - The company plans to expand its enterprise LLM solutions into the United States, targeting U.S. corporations with budget-friendly AI services [5][6] Reinforcement Learning and Technology - The Hua Zang LLM utilizes advanced RL algorithms that have been refined over years, allowing for deployment with minimal infrastructure costs [2][8] - The company has developed a more efficient RL framework that optimizes training times and reduces deployment costs, enhancing overall performance [8] Competitive Advantages - The Hua Zang LLM provides a scalable infrastructure that achieves high performance without the need for extensive, high-cost GPU clusters, lowering the total cost of ownership for enterprise clients [8] - Xiao-I offers a competitive licensing model that is flexible and cost-effective, making large language model adoption accessible to organizations of all sizes [8] Market Position and Future Plans - Following successful implementations in Asia, the company is poised to cater to the dynamic needs of U.S. enterprises seeking robust AI solutions [5][6] - The spokesperson highlighted the company's commitment to pushing the boundaries of reinforcement learning, positioning Xiao-I as a leader in the AI space [3]

Industry Overview - The Global Smart Glasses Market is experiencing significant growth due to technological advancements and increasing consumer demand for wearable technology, with a projected market size of USD 1.93 billion in 2024 and a CAGR of 27.3% from 2025 to 2030 [1][2] - Enhanced connectivity through the Internet of Things (IoT) and the rise of augmented reality (AR) applications are key drivers of this market growth [1] - The trend of remote work and virtual collaboration tools is increasing the demand for devices that facilitate seamless interaction, boosting the appeal of smart glasses in personal and professional contexts [1] Market Opportunities - The market presents growth opportunities in niche segments such as healthcare, education, and industrial applications, with smart glasses facilitating remote surgeries and enhancing training through real-time data visualization [2] - Emerging markets are also seen as significant opportunities as consumer awareness and technology adoption increase in previously untapped regions [2] Company Developments - Xiao-I Corporation forecasts generating USD 12-15 million in new revenue in 2025 from AI glasses driven by strong demand and state procurement invitations [2][5] - Xiao-I has been invited to register for centralized procurement programs by four U.S. state governments, marking a critical step in providing AI-driven solutions to public-sector organizations [3] - The company estimates delivering at least 10,000 units of AI glasses in 2025, reflecting its growth in the U.S. market and commitment to accessibility for the Deaf and hard-of-hearing community [4][5] Competitive Landscape - Companies such as Sony Group Corporation, QUALCOMM Incorporated, Microsoft Corporation, and Alphabet Inc. are actively developing new technologies and products in the smart glasses and mixed reality space [7][9][11][12] - Sony has introduced a new mixed reality headset focused on content creation for professionals, while QUALCOMM is collaborating with Samsung and Google to explore mixed-reality glasses linked to smartphones [7][9][10] - Microsoft has announced a partnership with RealWear to enhance communication and learning for frontline workers using smart glasses [11]