Company: XTKG
Filing Date: 2025-04-25
Form Type: 20-F
Source: 0001213900-25-035626
Chunk: 124

Company: X3 Holdings Co., Ltd.
Filing Date: 2025-04-25
Form: 20-F
Item: Item 5
Chunk 124
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 of the related revenue for the year ended December 31, 2022.

Revenue from consulting and technical support services

Revenue from consulting and
technical support services is primarily comprised of fixed-fee contracts, which require the Company to provide professional consulting
and technical support services over contract terms beginning on the commencement date of each contract, which is the date its service
is made available to customers. Billings to the customers are generally on a monthly or quarterly basis over the contract term, which
is typically 12 to 24 months. The consulting and technical support services contracts typically include a single performance obligation.
The revenue from consulting and technical support services is recognized over the contract term on a straight-line basis as customers
receive and consume benefits of such services.

For the year ended December
31, 2023, our consulting and technical support service revenue was approximately $3.6 million as compared to approximately $2.5 million
for the year ended December 31, 2022, representing an increase of $1.1 million or 42.2%, which was due to more new projects in current
period.

Revenue from subscription services

Revenue from subscription
services is comprised of subscription fees from customers accessing the Company’s software-as-a-service applications. Our monthly
or quarterly billing to customer is on the basis of number of uses or the actual usage by the customers. The subscription services contracts
typically include a single performance obligation. The revenue from subscription services is recognized over the contract term on a straight-line
basis or based on the actual usage as customers receive and consume benefits of such services.

For the year ended December
31, 2023, our subscription service revenue was approximately $0.7 million as compared to approximately $0.8 million for the year ended
December 31, 2022.

Trading revenue

We started to sell products
to its customers for the year ended December 31, 2021. Revenue from trading revenue was approximately $2.5 million and $3.3 million for
the year ended December 31, 2023 and 2022, respectively.

Others revenue

We started to earn other revenue,
such as membership fee for the years ended December 31,2023, which amounted to approximately $0.2 million and represent 1.1% of our revenue
for the year ended December 31, 2023.

Cost of Revenues

Our cost of revenues mainly
consists of compensation benefit expenses for our professionals, material cost, travel expenses related