Company: XTKG
Filing Date: 2025-04-25
Form Type: 20-F
Source: 0001213900-25-035626
Chunk: 11

Company: X3 Holdings Co., Ltd.
Filing Date: 2025-04-25
Form: 20-F
Item: Item 3
Chunk 11
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 customers may not be able to achieve satisfactory
outcomes. This could result in negative publicity and legal claims against us, which may cause us to generate fewer sales to new customers
and reductions in renewals or expansions of the use of our services with existing customers, any of which would harm our business and
results of operations.

Failure to adhere to regulations that govern
our customers’ businesses could result in breaches of contracts with our customers. Failure to adhere to the regulations that govern
our business could result in us being unable to effectively perform our services.

Our customers’ business
operations are subject to certain rules and regulations in China or elsewhere. Our customers may contractually require that we perform
our services in a manner that would enable them to comply with such rules and regulations. Failure to perform our services in such manner
could result in breaches of contract with our customers and, in some limited circumstances, civil fines and criminal penalties for us.
In addition, we are required under various PRC laws to obtain and maintain permits and licenses to conduct our business. If we do not
maintain our licenses or other qualifications to provide our services, we may not be able to provide services to our existing customers
or be able to attract new customers and could lose revenues, which could have a material adverse effect on our business and results of
operations.

If our new enhancements to our services
do not achieve sufficient market acceptance, our financial results and competitive position will suffer.

We expend substantial amount
of time and money to research and develop new enhancements of our services to incorporate additional features, improve functionality or
other enhancements in order to meet our customers’ rapidly evolving demands. When we develop an enhancement to our services, we
typically incur expenses and expend resources upfront to develop, market and promote the new enhancements. Therefore, when we develop
and introduce new enhancements to our services, they must achieve high levels of market acceptance in order to justify the amount of our
investment in developing and bringing them to market. If our new enhancements to our services do not garner widespread market adoption
and implementation, our growth prospects, future financial results and competitive position could suffer.

If we cause disruptions to our customers’
businesses or provide inadequate service, our customers may have claims for substantial damages against us, and as a result our profits
may be substantially reduced.

If we make errors in the course
of delivering services to our customers or fail to consistently meet service requirements of a customer, these errors or failures could
disrupt the customer’s business, which could result