Company: XTKG
Filing Date: 2025-04-25
Form Type: 20-F
Source: 0001213900-25-035626
Chunk: 131

Company: X3 Holdings Co., Ltd.
Filing Date: 2025-04-25
Form: 20-F
Item: Item 5
Chunk 131
---
ensation expenses, loss/gain on fair value change on financial instruments and convertible debt and fair value loss on financial instruments
and financial assets. The Company believes that the non-GAAP financial measures provide useful information about the Company’s
results of operations, enhance the overall understanding of our past performance and future prospects and allow for greater visibility
with respect to key metrics used by our management in its financial and operational decision-making.

The non-GAAP financial
measures are not defined under U. S. GAAP and are not presented in accordance with U. S. GAAP. The non-GAAP financial measures
have limitations as analytical tools, and when assessing the Company’s operating performance, cash flows or liquidity, investors
should not consider them in isolation, or as a substitute for net loss, cash flows provided by operating activities or other consolidated
statements of operations and cash flows data prepared in accordance with U. S. GAAP.

The Company mitigates these
limitations by reconciling the non-GAAP financial measures to the most comparable U. S. GAAP performance measures, all of which
should be considered when evaluating the Company’s performance.

The following table sets forth
unaudited reconciliation of GAAP and non-GAAP results for the periods indicated.

                                                For the Years Ended                                                                          
                                                December 31,                                                                                 
                                                2024                                      2023                        2022                   
  Net loss:                                     $                        (83,833,161      $         (122,227,195      $         (21,548,700  
 ─────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Add:                                                                                                                                       
  Share-based compensation expenses                                        5,834,999                   6,058,117                  5,983,907  
  Change in fair value of convertible debt                                (1,048,271                      21,166                  2,448,936  
  Fair value loss on financial instrument                                          -                  71,006,115                          -  
  Adjusted net loss                             $                        (79,046,433      $          (45,141,797      $         (13,115,857  

Impact of Foreign Currency Fluctuations

Foreign currency translation
loss was approximately $0.8 million, $1.7 million and $6.0 million for the years ended December 31, 2024, 2023 and 2022, respectively.
The change in the value of the RMB relative to