Company: XTKG
Filing Date: 2025-04-25
Form Type: 20-F
Source: 0001213900-25-035626
Chunk: 267

Company: X3 Holdings Co., Ltd.
Filing Date: 2025-04-25
Form: 20-F
Item: Item 19
Chunk 267
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 split adjusted to62) of these stock options was vested in
one year after grant. The Company recorded modification expense of $2,139,555. On May 16, 2022, the Board further approved to amend the
exercise price from $1,632(post-reverse stock split adjusted to $9,792) to $1,272(post-reverse stock split adjusted to $7,632) per share.
The Company recorded modification expense of $137,641. On December 20, 2022, the Board further approved to amend the exercise price from
$1,272(post-reverse stock split adjusted to $7,632) to $403.2(post-reverse stock split adjusted to $2,419.2) per share. The Company
recorded modification expense of $206,461.

The fair value of stock options
was determined at the date of grant using the Black-Scholes option pricing model. The Black-Scholes option model requires management to
make various estimates and assumptions, including expected term, expected volatility, risk-free rate, and dividend yield. The expected
term represents the period of time that stock-based compensation awards granted are expected to be outstanding and is estimated based
on considerations including the vesting period, contractual term and anticipated employee exercise patterns. Expected volatility is based
on the historical volatility of the Company’s stock. The risk-free rate is based on the U. S. Treasury yield curve in relation to
the contractual life of stock-based compensation instruments. The dividend yield assumption is based on historical patterns and future
expectations for the Company dividends. For the year ended December 31, 2022, assumptions used to estimate the fair value of stock options
on the grant dates are as follows:

                                    Options                        Options                         Options                                     
                                    granted in                     Amended in                                                                  
                                    May                            January,                        Amended in                                  
                                    2021                           2022                                                                        
                                                                                                   May,                                        
                                                                                                   2022                                        
 ───────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Risk-free interest rate                           0.81                           1.66                            0.81            4.44        
  Expected life of the options                      5 years                        4.33 years                      4.03 years      3.43 years  
  Expected volatility                               96.0                           96.0                            96.0            96.0        
  Expected dividend