Company: XTKG
Filing Date: 2025-04-25
Form Type: 20-F
Source: 0001213900-25-035626
Chunk: 133

Company: X3 Holdings Co., Ltd.
Filing Date: 2025-04-25
Form: 20-F
Item: Item 5
Chunk 133
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 subsidiary in China to us. We do not intend to repatriate such funds in the foreseeable future, as we plan to use existing
cash balance in PRC for general corporate purposes.

For the year ended December
31, 2024, the Company incurred a net loss of approximately $83.8 million and had negative operation cash flow of approximately $1.0 million.
The Company has historically funded its working capital needs primarily from public offering, operations, bank loans, advance payments
from customers and shareholders. The working capital requirements are affected by the efficiency of operations, the numerical volume and
dollar value of revenue contracts, the progress or execution on customer contracts, and the timing of accounts receivable collections.

In assessing its liquidity,
the Company monitors and analyzes its cash on hand, its ability to generate sufficient revenue sources in the future and its operating
and capital expenditure commitments. As of December 31, 2024, the Company had cash of approximately $4.2 million.

On November 24, 2023, the
Group entered into purchase agreements with twelve investors. The investors agreed to purchase an aggregate of $40,000,000 of the Group’s
Class A ordinary shares at a share price of $ $6.0 (post-reverse stock split adjusted to $36.0) per share. The Group issued 6,523,157
(post-reverse stock split adjusted to 1,087,192) Class A ordinary shares on November 24, 2023. In March, 2025, the Company entered
into a supplemental agreement with these twelve investors, to change the aggregate purchase amount to $3,972,600 at a share price of $0.609
(post-reverse stock split adjusted to 3.65) per share. As of this annual report filing date, the Company has collected approximately $3.2
million.

On May 16, 2024, we entered
into a standby equity purchase agreement (the “ SEPA”) with YA II PN, LTD. (“ YA”), pursuant to which YA purchased
convertible promissory notes (the “ YA 2024 Notes”) in the principal amount of $8,000,000 (the “ Principal”), which
shall be convertible into the Company’s ordinary shares (the “ Offering”), for gross proceeds of approximately $7,425,000.
The Offering will be conducted in four closings. The first closing consists of offer and sale of a note in the principal amount of $4