Company: XTKG
Filing Date: 2025-04-25
Form Type: 20-F
Source: 0001213900-25-035626
Chunk: 238

Company: X3 Holdings Co., Ltd.
Filing Date: 2025-04-25
Form: 20-F
Item: Item 19
Chunk 238
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net income (loss) attributable to shareholders of the Company by the weighted average number of ordinary shares outstanding during the
year. Diluted earnings (loss) per share is computed using the weighted average number of ordinary shares and potential ordinary shares
outstanding during the period. Potential ordinary shares include ordinary shares issuable upon the exercise of outstanding share options
by using the treasury stock method and ordinary shares issuable upon the conversion of convertible instruments using the if-converted
method. Potential ordinary shares are not included in the denominator of the diluted net (loss)/earnings per share calculation when inclusion
of such shares would be anti-dilutive. For the years ended December 31, 2024, 2023 and 2022, since the company had a loss, basic and dilutive
loss per share is the same.

F-19

X3 HOLDINGS CO., LTD.

Note 2 - Summary of significant accounting
policies(continued)

Share-Based compensation

The Group accounts for share-based
awards to employees and nonemployees directors and consultants in accordance with the provisions of ASC 718, Compensation - Stock
Compensation, and under the recently issued guidance following FASB’s pronouncement, ASU 2018-07, Compensation - Stock Compensation
(Topic 718): Improvements to Nonemployee Share-Based Payment Accounting. Under ASC 718, and applicable updates adopted, for employee stock-based
awards, share-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense
with graded vesting on a straight-line basis over the requisite service period for the entire award. For the non-employee stock-based
awards, the fair value of the awards to non-employees are measured every reporting period based on the value of the Group’s Ordinary
share.

Comprehensive loss

Comprehensive loss consists
of two components, net loss and other comprehensive loss. Other comprehensive loss refers to revenue, expenses, gains and losses that
under U. S. GAAP are recorded as an element of shareholders’ equity but are excluded from net income. Other comprehensive loss consists
of a foreign currency translation adjustment resulting from the Group not using the U. S. dollar as its functional currencies.

Statement of Cash Flows

In accordance with ASC 230,
“ Statement of Cash Flows,” cash flows from the Group’s operations are formulated based upon the local currencies. As
a result, amounts related to assets and liabilities reported on the statements of cash flows will