Company: XTKG
Filing Date: 2025-04-25
Form Type: 20-F
Source: 0001213900-25-035626
Chunk: 246

Company: X3 Holdings Co., Ltd.
Filing Date: 2025-04-25
Form: 20-F
Item: Item 19
Chunk 246
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  Cash acquired                                                        47,073  
  Accounts receivable                                               1,048,422  
  Loan receivable                                                      40,052  
  Prepayments, deposits and other current assets                      650,632  
  Intangible assets, net                                            8,134,797  
  Accounts payable                                                ( 1,401,816  
  Deferred revenue                                                  ( 378,979  
  Other current liabilities                                           ( 3,212  
  Deferred tax liabilities                                        ( 2,033,699  
  Total net assets acquired                                         6,103,270  
  Goodwill                                            $             7,750,746  

The intangible assets are
mainly attributable to franchise right acquired through the acquisition, which are amortized over10years.

Due to sluggish business operations
subsequent to the acquisition, the Group engaged a third-party valuation firm and performed fair value assessment using income approach,
according to the valuation report, the Group recorded an impairment of goodwill of $2,911,926for the year ended December 31, 2024.

F-25

X3 HOLDINGS CO., LTD.

Note 4 - Accounts receivable, net

Accounts receivable, net,
consists of the following:

                                         As of December 31,                                               
                                         2024                                      2023                   
 ──────────────────────────────────────────────────────────────────────────────────────────────────────────
  Accounts receivable                    $                         28,715,543      $          28,620,423  
  Less: Allowance for credit losses                              ( 11,434,431                ( 7,133,370  
  Accounts receivable, net               $                         17,281,112      $          21,487,053  

Unbilled accounts receivable
included in accounts receivable above amounted to $11,973,816and $10,030,721as of December 31, 2024 and 2023, respectively. The unbilled
accounts receivables as of December 31, 2024 are expected to be billed within one year and collected over one year. The billed accounts
receivable is expected to be collected within one year.

As of April 14, 2025, approximately
$1.5million (or5.3%) of total accounts receivable as of December 31, 2024 was collected. It represented4.4% of billed accounts receivable
balance and6.5% of unbilled accounts