Company: XTKG
Filing Date: 2025-04-25
Form Type: 20-F
Source: 0001213900-25-035626
Chunk: 245

Company: X3 Holdings Co., Ltd.
Filing Date: 2025-04-25
Form: 20-F
Item: Item 19
Chunk 245
---
 for the previous
35
% equity
interests in
Boxinrui.

                                                       Amount                    
  Total consideration for step acquisition             $             24,078,675  
  Assets acquired and liabilities assumed:                                       
  Cash acquired                                                          10,258  
  Other current assets                                                1,034,968  
  Property and equipment, net                                            10,975  
  Intangible assets, net                                             17,984,093  
  Current liabilities                                                 ( 211,718  
  Total net assets acquired                                          18,828,576  
  Previous held 31.5% Equity Value                                 ( 13,937,461  
  10% Equity Value with non-controlling interests                   ( 4,424,591  
  Goodwill                                             $             23,612,151  

The intangible assets are
mainly attributable to software acquired through the acquisition, which are amortized over10years.

Due to sluggish business operations
subsequent to the acquisition, the Group engaged a third-party valuation firm and performed fair value assessment using income approach,
according to the valuation report, the Group recorded an impairment of goodwill of $8,580,543for the year ended December 31, 2023 and
further recorded an impairment of intangible asset and goodwill of $14,083,736and $15,031,608, respectively, for the year ended December
31, 2024.

F-24

X3 HOLDINGS CO., LTD.

Note 3 - Acquisition(continued)

Hongchuangxin Acquisition

On May 1, 2024, the Group
acquired100% equity interest in Hongchuangxin for consideration in the form of 7 antique art pieces. The fair value of the consideration
for this acquisition was $13,854,016. The consolidated operating results of Hongchuangxin for the year ended December 31, 2024 were not
significant to the Group. The objective of the acquisition is to expand the Group’s business scope.

The following table summarizes
the fair value of the identifiable assets acquired and liabilities assumed at the acquisition date, which represents the net purchase
price allocation at the date of the acquisition based on a valuation report performed by an independent valuation firm engaged by the
Group. The valuation report considered generally accepted valuation methodologies such as the income, market and cost approaches.

                                                      Amount                   
  Total consideration for acquisition                 $            13,854,016  
  Assets acquired and liabilities assumed: