Company: XTKG
Filing Date: 2025-04-25
Form Type: 20-F
Source: 0001213900-25-035626
Chunk: 253

Company: X3 Holdings Co., Ltd.
Filing Date: 2025-04-25
Form: 20-F
Item: Item 19
Chunk 253
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 change in fair value of convertible note of
$1,048,271. For the years ended December 31, 2023 and 2022, the Group Company recognized a loss of change in fair value of convertible
note of $21,166and $2,448,936, respectively. Interest expense recognized for these convertible notes for the years ended December 31,
2024, 2023 and 2022 were $87,621, $297,954and $195,139, respectively.

YA 2024 Notes

On May 16, 2024, the Group
entered into entered into a standby equity purchase agreement with YA II PN, LTD (“ YA”) Pursuant to the Purchase Agreement,
YA purchases convertible notes in the principal amount of $8,000,000(the “ YA 2024 Notes”) and up to $30,000,000(the “ Commitment
Amount”). The offering will be conducted in four tranches and each closing has conditions specified in the agreement. The principal
will become due and payable before maturity date defined in specific agreement and bears an annual interest rate of8% unless earlier
converted or redeemed by the Group. At any time before the maturity date, YA may convert convertible notes at its option into Class A
Ordinary Shares. The Group has the right, but not the obligation, to redeem a portion or all amounts outstanding under the convertible
notes prior to the maturity date at a cash redemption price equal to the outstanding principal balance to be redeemed, plus the redemption
premium, plus accrued and unpaid interest. The Group shall pay to the Investor a structuring fee in amount of $15,000. The Group accounted
for the above structuring fee as direct financing cost to YA Notes.

On May 16, 2024, The Group
closed the first tranche of the YA 2024 Notes for the principal amount of $4,756,986with an origin issue discount (“ OID”)
of7% for a maturity date atMay 16, 2025. The net proceed from the first closing was $4,162,347(after deducting OID and other issuance
costs).

On June 17, 2024, The Group
closed the second tranche of the YA 2024 Notes for the principal amount of $1,500,000with an origin issue discount (“ OID”)
of7% for a maturity date atMay 16, 2025. The net proceed from the second tranche was $