Company: XTKG
Filing Date: 2025-04-25
Form Type: 20-F
Source: 0001213900-25-035626
Chunk: 225

Company: X3 Holdings Co., Ltd.
Filing Date: 2025-04-25
Form: 20-F
Item: Item 19
Chunk 225
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ed interest                                                         87,621                                 297,954  
  Cash repaid                                                              ( 4,059,983                        ( 1,250,000  
  Conversion of convertible notes                                          -                                  ( 3,128,453  
  Total                                                  $                 -                $                   5,020,633  

Cash and cash equivalent

Cash and cash equivalent comprise
cash at banks and on hand, which includes deposits with original maturities of three months or less with commercial banks in PRC. As of
December 31, 2024 and 2023, cash balances were $4,193,839and $2,991,563, respectively.

Restricted cash

Restricted cash represents
cash that cannot be withdrawn without the permission of third parties. The Group’s restricted cash is substantially cash balance
in designated bank accounts as security for payment processing and lawsuit. As of December 31, 2024 and 2023, restricted cash consists
of cash equivalents of $70,721and $1,723,937, respectively

Accounts receivable, net

Accounts receivable represents
the amounts that the Group has an unconditional right to consideration and is recorded net of allowance for credit losses.

In 2016, the FASB issued ASU
No. 2016-13, “ Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments”
(“ ASC Topic 326”), which amends previously issued guidance regarding the impairment of financial instruments by creating an
impairment model that is based on expected losses rather than incurred losses. The Group has adopted this ASC Topic 326 and several associated
ASUs on January 1, 2023 using a modified retrospective approach. The adoption has no material impact to the Group’s consolidated
financial statements. The Group estimated allowance for credit losses to reserve for potentially uncollectible receivable amounts periodically,
considering factors in assessing the collectability of its accounts receivable, such as historical distribution of the age of the amounts
due, payment history, creditworthiness, forward-looking factor, historical collections data of the customers, to assess the credit risk
characteristics. If there is strong evidence indicating that the accounts receivable is likely to be unrecoverable, the Group also makes
specific allowance in the period in which a loss is determined to be probable. Accounts receivable are considered impaired and written-off
when it is probable that all contractual payments due will not be collected after all collection efforts have been