Company: XTKG
Filing Date: 2025-04-25
Form Type: 20-F
Source: 0001213900-25-035626
Chunk: 221

Company: X3 Holdings Co., Ltd.
Filing Date: 2025-04-25
Form: 20-F
Item: Item 19
Chunk 221
---
rolling interest
is presented in the consolidated balance sheets, separately from equity attributable to the shareholders of the Company. Non-controlling
interest’s operating result is presented on the face of the consolidated statements of income and comprehensive income as an allocation
of the total income for the year between non-controlling shareholders and the shareholders of the Company.

Liquidity

As of December 31, 2024, the
Group had working capital of negative $9.0million, For the year ended December 31, 2024, the Group incurred a net loss of approximately
$83.8million and had negative operating cash flow of approximately $1.0million. The Group 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 Group 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 Group had cash and cash equivalent of approximately $4.2million.

On November 24, 2023, the
Group entered into purchase agreements with twelve investors. The investors agreed to purchase an aggregate of $40,000,000of 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 issued6,523,157(post-reverse
stock split adjusted to1,087,192) 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 $3,972,600at a 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 $3.2million.

On May 16, 2024, the
Group entered into a standby equity purchase agreement with YA II PN, LTD. (“ YA”), pursuant to which YA purchases convertible
promissory notes (the “2024 YA Notes”) in the principal amount of $8,000,000which shall be convertible into the Company’s
ordinary shares, for gross