Company: XTKG
Filing Date: 2025-04-25
Form Type: 20-F
Source: 0001213900-25-035626
Chunk: 273

Company: X3 Holdings Co., Ltd.
Filing Date: 2025-04-25
Form: 20-F
Item: Item 19
Chunk 273
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 On November 23,2023, the Company fully issued the related compensation shares. The fair value
of the shares issued amounted to $30,938,757.

On November 22, 2023, the
Company entered into a compensation agreement with the original shareholders of Boxinrui. Pursuant to the agreement, the Company shall
issue3,457,063(post-reverse stock split adjusted to576,178) Class A ordinary shares to the previous shareholders as a compensation
due to continuous declining share price. On November 23,2023, the Company fully issued the related compensation shares. The fair value
of the shares issued amounted to $40,067,357.

Warrants

In connection with the initial
public offering (“ IPO”) on April 4, 2019, the Company issued warrants totaling26units to the placement agents (the “ Public
Offering Warrants”). The warrants carry a term offive yearsand shall be exercisable at $26,400(post-reverse stock split adjusted
to $158,400) per share. Management determined that these warrants are equity instruments because the warrants are both a) indexed to its
own stock; and b) classified in shareholders’ equity. These warrants were fully expired on April 3, 2024.

During the year ended December
31, 2021, the Company completed in aggregate of $6.0million convertible notes with YA and issued136(post-reverse stock split adjusted
to22) warrants to YA. The warrants carry a term offive yearsand shall be exercisable at $17,520(post-reverse stock split adjusted
to $105,120) per share. Management determined that these warrants are equity instruments because the warrants are both a) indexed to its
own stock; and b) classified in shareholders’ equity.

Dividend

On March 5, 2024, the board
of directors approved a special stock dividend to pay in total of778,739(post-reverse stock split adjusted to129,789) Class A ordinary
shares to the holders of record of all the issued and outstanding shares of the Company as of the close of business on April 26, 2024.

Statutory reserve

Under PRC law, the Company’s
subsidiary located in the PRC (collectively referred as the (“ PRC entities”) are required to provide for certain statutory
reserves. The PRC entities are required to allocate at least10% of their after-tax profits on an individual