Company: XTKG
Filing Date: 2025-04-25
Form Type: 20-F
Source: 0001213900-25-035626
Chunk: 136

Company: X3 Holdings Co., Ltd.
Filing Date: 2025-04-25
Form: 20-F
Item: Item 5
Chunk 136
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2022 was mainly due to $3.9 million spending on purchases of intangible assets and property and equipment, payment to related parties
of approximately $0.6 million, and paid to long term investments of approximately$0.4 million, offset by approximately $4.0 million collected
from working capital support provided to Kezhi Technology Co., Ltd.(“ Kezhi”).

Financing Activities

Net cash provided by financing
activities was approximately $2.2 million for the year ended December 31, 2024. Net cash provided by financing activities for the year
ended December 31, 2024 was mainly consisted of proceeds of approximately $4.2 million from bank loan, net proceeds of approximately $1.5
million from convertible notes and proceeds of approximately $0.6 million from private placements, offset by approximately $4.2 million
repayment to bank loans.

Net cash provided by financing
activities was approximately $9.3 million for the year ended December 31, 2023. Net cash provided by financing activities for the year
ended December 31, 2023 was mainly net proceeds approximately $8.5 million from the market offering, and net proceeds of $1.4 million
on bank loan, offset by approximately $1.3 million repayment to convertible note.

Net cash provided by financing
activities was approximately $13.0 million for the year ended December 31, 2022. Net cash provided by financing activities for the year
ended December 31, 2022 was mainly net proceeds of approximately $8.0 million from issuance of convertible note and approximately $7.0
million from the market offering, offset by net repayment of $1.5 million on bank loan.

Capital Expenditures

The Company made capital expenditures
of $1.6 million, $1.9 million and $3.9 million for the years ended December 31, 2024, 2023 and 2022, respectively. In these periods, our
capital expenditures were mainly used for purchases of office equipment, furniture and payments for capitalized development cost. The
Company will continue to make capital expenditures to meet the expected growth of its business.

C. Research and Development, Patents and Licenses, Etc.

See “ Item 4. Information
on the Company - B. Business Overview - Research and Development.” See “ Item 4. Information on the Company - B.
Business Overview - Intellectual Property.”

D. Trend Information