Company: XTKG
Filing Date: 2025-04-25
Form Type: 20-F
Source: 0001213900-25-035626
Chunk: 119

Company: X3 Holdings Co., Ltd.
Filing Date: 2025-04-25
Form: 20-F
Item: Item 5
Chunk 119
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0 million, or 54.5%, from approximately
$57.0 million for the year ended December 31, 2023 to approximately $88.0 million for the year ended December 31, 2024. The increase in
our operating expenses was primarily due to approximately $32.5 million increase in impairment charges, and approximately $4.8 million
increase in provision for credit losses, partially offset by approximately $5.0 million decrease in general and administrative expenses.

Selling and marketing expenses
primarily consisted of salary and compensation expenses relating to our sales and marketing personnel, and also included entertainment,
travel and transportation, and other expenses relating to our sales and marketing activities. Selling and marketing expenses decreased
by approximately $0.4 million or 25.5% from approximately $1.5 million for the year ended December 31, 2023 to approximately $1.1 million
for the year ended December 31, 2024. The decrease was primarily attributable to decreased salary due to personnel optimization for the
year ended December 31, 2024.

General and administrative
expenses primarily consisted of salary and compensation expenses relating to our accounting, human resources and executive office personnel,
and included rental expenses, depreciation and amortization expenses, office overhead, professional service fees and travel and transportation
costs. General and administrative expenses decreased by approximately $5.0 million or 40.8% from approximately $12.1 million for the year
ended December 31, 2023 to approximately $7.2 million for the year ended December 31, 2024, due to decreased professional consulting fee
and salaries. As a percentage of revenues, general and administrative expenses were 61.8% and 72.1% of our total revenue for the years
ended December 31, 2024 and 2023, respectively.

Provision for credit losses
increased by approximately $4.8 million from approximately $0.5 million for the year ended December 31, 2023 to approximately $5.4 million
for the year ended December 31, 2024, due to slow collection.

R& D expenses primarily
consisted of compensation and benefit expenses relating to our R& D personnel as well as office overhead and other expenses relating
to our R& D activities. Our R& D expenses decreased by approximately $0.8 million from approximately $4.8 million for the year ended
December 31, 2023 to