Company: XTKG
Filing Date: 2025-04-25
Form Type: 20-F
Source: 0001213900-25-035626
Chunk: 224

Company: X3 Holdings Co., Ltd.
Filing Date: 2025-04-25
Form: 20-F
Item: Item 19
Chunk 224
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oted                                                  Significant      Significant       Total  
  Financial liabilities:                                                                                                                        
  Convertible notes - Streeterville Note      $                                                       $                $                 $      
  Total                                       $                                                       $                $                 $      

                                              As of December 31, 2023                                                                                                         
 ──────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
                                              Fair Value Measurement at the Reporting Date using                                                                              
                                              Quoted                                                  Significant      Significant                      Total                 
  Financial liabilities:                                                                                                                                                      
  Convertible notes - Streeterville Note      $                                                       $                $                 5,020,633      $          5,020,633  
  Total                                       $                                                       $                $                 5,020,633      $          5,020,633  

Streeterville Note

The Group elected the fair
value option to account for Streeterville Note (Refer to Note 13 for additional information). The Group engaged an independent valuation
firm to perform the valuation. The fair value of the Streeterville Note was calculated using the binomial tree model. The Streeterville
Note was classified as level 3 instruments as the valuation was determined based on unobservable inputs which was supported by little
or no market activity and reflect the Group’s own assumptions in measuring fair value. Significant estimates used in developing
the fair value of the Streeterville Note included time to maturity, risk-free interest rate, straight debt discount rate, probability
to convert and expected timing of conversion.

As the inputs used in developing
the fair value for level 3 instruments are unobservable, and require significant management estimate, a change in these inputs could result
in a significant change in the fair value measurement.

F-10

X3 HOLDINGS CO., LTD.

Note 2 - Summary of significant accounting
policies(continued)

The following is a reconciliation
of the beginning and ending balances for Streeterville Note measured at fair value on a recurring basis using significant unobservable
inputs (Level 3) as of December 31, 2024 and 2023:

                                                         December 31,                       December 31,                   
                                                         2024                               2023                           
 ───────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Opening balance                                        $                 5,020,633        $                   9,079,966  
  Loss on change in fair value of convertible notes                        ( 1,048,271                             21,166  
  Accru