Company: XTKG
Filing Date: 2025-04-25
Form Type: 20-F
Source: 0001213900-25-035626
Chunk: 41

Company: X3 Holdings Co., Ltd.
Filing Date: 2025-04-25
Form: 20-F
Item: Item 3
Chunk 41
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. public company.

Judgments obtained against us by our shareholders
may not be enforceable.

We are a Cayman Islands company
and all of our assets are located outside of the United States. Our current operations are based in China and Singapore. In addition,
the majority of our current directors and executive officers are nationals and residents of countries other than the United States. Substantially
all of the assets of these persons are located outside the United States. As a result, it may be difficult or impossible for you to bring
an action against us or against these individuals in the United States in the event that you believe that your rights have been infringed
under the United States federal securities laws or otherwise. Even if you are successful in bringing an action of this kind, the laws
of the Cayman Islands and of China may render you unable to enforce a judgment against our assets or the assets of our directors and officers.

We may lose our foreign private issuer status
in the future, which could result in significant additional costs and expenses.

The determination of our status
as a foreign private issuer is made annually on the last business day of our most recently completed second fiscal quarter and, accordingly,
the next determination will be made with respect to us on or after June 30, 2025. We would lose our foreign private issuer status if (1)
a majority of our outstanding voting securities are directly or indirectly held of record by U. S. residents; and (2) a majority of our
shareholders or a majority of our Directors or management are U. S. citizens or residents, a majority of our assets are located in the
United States, or our business is administered principally in the United States. If we were to lose our foreign private issuer status,
the regulatory and compliance costs to us under U. S. securities laws as a U. S. domestic issuer may be significantly higher. We may also
be required to modify certain of our policies to comply with corporate governance practices associated with U. S. domestic issuers, which
would involve additional costs.

Our disclosure controls and procedures may not prevent or detect
all errors or acts of fraud.

Our disclosure controls and
procedures are designed to reasonably assure that information required to be disclosed by us in reports we file or submit under the Exchange
Act is accumulated and communicated to management, and recorded, processed, summarized and reported within the time periods specified
in the rules and forms of the SEC.

We believe that any disclosure
controls and procedures, or internal controls