Company: XTKG
Filing Date: 2025-04-25
Form Type: 20-F
Source: 0001213900-25-035626
Chunk: 264

Company: X3 Holdings Co., Ltd.
Filing Date: 2025-04-25
Form: 20-F
Item: Item 19
Chunk 264
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 the year ended December
31, 2024, 2023 and 2022, the Group recorded a consulting fee expense of $1,474,999, $1,698,117and $649,122included in the share-based
compensation expense. As of December 31, 2024 and 2023, there were unrecognized share-based compensation expense related to the shares
issued for consulting services amounted to $ Niland $1,474,999.

F-38

X3 HOLDINGS CO., LTD.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 16 - Equity(continued)

Restricted share units (“ RSUs”)
issued for consulting services

On June 16, 2022, the board
of directors proposed to modify the Company’s Amended 2018 Stock Option Plan), by supplementing various clauses in relation to the
grant of Restricted Shares and Restricted Share Units to the employees, Directors and consultants of the Company.

On July 15, 2022 the Company signed six consulting agreements with
six third-party consultants with term of three years. Pursuant to the agreements, the Company agreed to pay total of2,500(post-reverse
stock split adjusted to416) RSUs (representing 1 ordinary shares of the Company) as compensation for the services after signing of the
agreements. The Company issued2,500(post-reverse stock split adjusted to416) RSUs on July 22, 2022. The fair value of those shares
was assessed at $13,080,000based on the stock price of contract date.

For the year ended December
31, 2024, 2023 and 2022, the Company recorded a consulting fee expense of $4,360,000and $4,360,000, $1,998,333included in the share-based
compensation expense. As of December 31, 2024 and 2023, there were unrecognized share-based compensation expense related to RSUs issued
for consulting services amounted to $2,361,667and $6,721,667.

2018 Stock option plan

On August 18, 2018 and further amended on February 10, 2019, the Board
of Directors (“ Board”) approved an amended the 2018 Stock Option Plan (the “2018 Plan”). The Plan provides
for discretionary grants of stock options to key employees, directors and consultants of the Company. The purpose of the Plan is to