Company: XTKG
Filing Date: 2025-04-25
Form Type: 20-F
Source: 0001213900-25-035626
Chunk: 274

Company: X3 Holdings Co., Ltd.
Filing Date: 2025-04-25
Form: 20-F
Item: Item 19
Chunk 274
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 company basis as determined
under PRC accounting standards to the statutory reserve and has the right to discontinue allocations to the statutory reserve if such
reserve has reached50% of registered capital on an individual company basis.

The Company’s subsidiaries
in PRC had accumulated deficits for the years ended December 31, 2024 and 2023, as a result, the statutory reserve balances were $ nilas of December 31, 2024 and 2023.

F-43

X3 HOLDINGS CO., LTD.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 17 - Commitments and contingencies

Contingencies

The Group is subject to legal
proceedings and regulatory actions in the ordinary course of business. The results of such proceedings cannot be predicted with certainty,
but the Group does not anticipate that the final outcome arising out of any such matters will have a material adverse effect on our consolidated
financial position, cash flows or results of operations on an individual basis or in the aggregate. $70,721(RMB516,213) was frozen in
a bank due to the pending lawsuits, which amount was included in restricted cash as of December 31, 2024. As of the date of these unaudited
condensed consolidated financial statements, the above-mentioned amount is still frozen in bank and the other legal proceedings or disputes
have no material impact on the Group’s business or financial performances.

Note 18 - Segment reporting

For the years ended December
31, 2024, 2023 and 2022, The Group’s Chief Executive Officer is the Chief Operating Decision Maker (“ CODM”). The CODM
makes decisions on resource allocation, assesses performance of the business, and monitors budget versus actual results using factors
such as revenue, operating expenses, loss from operations and net loss. Significant expenses include cost of revenues, sales and marketing
expenses, general and administrative expenses, research and development and share based compensation, which are each separately presented
on the Group’s statements of operations and comprehensive loss. Other segment items within net loss include interest expenses, change
in fair value of convertible notes and so on. During the years ended December 31, 2024, 2023 and 2022, all revenue is PRC revenue. The
Group’s long-lived assets consist primarily of property and equipment and intangible assets, most of which are located in the PRC.

The following table presents
revenues by the service lines:

                                                 For the