Company: XTKG
Filing Date: 2025-04-25
Form Type: 20-F
Source: 0001213900-25-035626
Chunk: 127

Company: X3 Holdings Co., Ltd.
Filing Date: 2025-04-25
Form: 20-F
Item: Item 5
Chunk 127
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  General and administrative                                     12,130,707                 7,732,287                   4,398,420       56.9  
  Provision for credit losses                                       539,284                 4,733,183                  (4,193,899      (88.6  
  Research and development                                        4,814,463                 3,459,987                   1,354,476       39.1  
  Share based compensation                                        6,058,117                 5,983,907                      74,210        1.2  
  Impairment for intangible assets                                2,272,829                         -                   2,272,829          -  
  Impairment for goodwill                                        29,686,102                         -                  29,686,102          -  
  Total operating expenses              $                        56,982,234      $         23,866,175      $           33,116,059      138.8  

Our operating expenses consist
of selling and marketing, general and administrative, research and development (“ R& D”) expenses, provision for credit
losses, stock-based compensation, impairment for intangible assets and impairment for goodwill. Operating expenses increased by approximately
$33.1 million, or 138.8%, from approximately $23.9 million for the year ended December 31, 2022 to approximately $57.0 million for the
year ended December 31, 2023. The increase in our operating expenses was primarily due to approximately $29.7 million increase in impairment
for goodwill, approximately $4.4 million increase in general and administrative, approximately $2.3 million increase in impairment for
intangible assets and approximately $1.4 million increase in research and development, offset by approximately $4.2 million decrease in
provision for credit losses.

Selling and marketing expenses
primarily consisted of salary and compensation expenses relating to our sales and marketing personnel, and also included entertainment,
travel and transportation, and other expenses relating to our sales and marketing activities. Selling and marketing expenses decreased
by approximately $0.5 million or 24.3% from approximately $2.0 million for the year ended December 31, 2022 to approximately $1.5 million
for the year ended December 31, 2023. The decrease was primarily attributable to decreased salary due to personnel optimization for the
year ended December 31, 202