Company: XTKG
Filing Date: 2025-04-25
Form Type: 20-F
Source: 0001213900-25-035626
Chunk: 123

Company: X3 Holdings Co., Ltd.
Filing Date: 2025-04-25
Form: 20-F
Item: Item 5
Chunk 123
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 other expenses                                                     (68,722,498                 (2,449,337                   (66,273,161        2,705.8  
  LOSS BEFORE INCOME TAXES                                                (122,284,536                (22,548,091                   (99,736,445          442.3  
  INCOME TAX BENEFIT                                                           (57,341                   (999,391                       942,050          (94.3  
  NET LOSS                                       $                        (122,227,195      $         (21,548,700      $           (100,678,495          467.2  

Revenues

We derive revenues from five
sources: (1) revenue from application development services, (2) revenue from consulting and technical support services, (3) revenue from
subscription services, (4) trading revenue, and (5) others.

For the years ended December
31, 2023, our total revenue was approximately $16.8 million as compared to approximately $10.5 million for the year ended December 31,
2022. Our total revenue increased by approximately $6.3 million, or 60.5%. The overall increase in total revenue was primarily attributable
to approximately $5.9 million increase in revenue from application development services and approximately $1.1 million increase in consulting
and technical support services.

Revenue from application development services

Our application development
service contracts are primarily on a fixed-price basis, which require the Company to perform services including project planning, project
design, application development and system integration based on customers’ specific needs. These services also require significant
production and customization. Revenue from application development service is recognized as work is performed based on the ratio of costs
incurred to date to the total estimated costs at completion of the performance obligations.

For the year ended December
31, 2023, our application development service revenue was approximately $9.8 million as compared to approximately $3.8 million for the
year ended December 31, 2022. The increase in application development service revenue was approximately $5.9 million or 154.2% due to
resumed works after China announced a relaxation from its stringent COVID-19 pandemic control measures and more new projects in current
period. In certain application development service arrangements, the contacts included sales of IT equipment. Such revenue was $2,001,750
for the year ended December 31, 2023, decreased from $2,609,531