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

Company: X3 Holdings Co., Ltd.
Filing Date: 2025-04-25
Form: 20-F
Item: Item 3
Chunk 20
---
 business, thus improved our overall
business operations, those strategic plans may not be ultimately successful. See “ Item 4. Information on the Company - C.
History and Development of the Company” for further information on the acquisition transactions entered into by us.

In addition, it is possible
that in the future we may not be successful in identifying suitable alliances or acquisition candidates. Even if we identify suitable
candidates, we may not be able to consummate these arrangements on terms commercially acceptable to us or to obtain necessary regulatory
approvals in the case of acquisitions. Challenges we face in the potential acquisition and integration process include:

  integrating                                                           

  unforeseen                   

  generating                                                      

  potential                                                 

  properly                                                                                                                                    

  retaining                                                                                  

  potential                                                                     

  consolidating                                                                            

  integrating                              

  entry                         

  increased                                                                                                                                  

Furthermore, many of our competitors
are likely to enter into similar arrangements or acquire the same targets that we are looking to enter into or acquire. Such competitors
may have substantially greater financial resources than we do and may be more attractive to our strategic partners or be able to outbid
us for the acquisition targets. In addition, we may also be unable to timely deploy our existing cash balances to effect a potential acquisition,
as use of cash balances located onshore in China may require specific governmental approvals or result in withholding and other tax payments.
To the extent cash is located in the PRC, Hong Kong or Macau or within a PRC, Hong Kong or Macau domiciled entity and may need to be used
outside of the PRC, Hong Kong or Macau, the funds may not be available due to limitations placed on us by the PRC government. If we are
unable to enter into suitable strategic alliances or complete suitable acquisitions, our growth strategy may be impeded and our revenues
and net income could be negatively affected.

Some of our technology incorporates “open
source” software, which could negatively affect our ability to sell our services and subject us to possible litigation.

Some aspects of our technology
platforms from which we develop our services, are built using open-source software, and we intend to continue to use open-source software
in the future. The terms of certain open-source licenses to which we are subject have not been interpreted by U. S., China or foreign courts,
and there is a risk that open-source software licenses could be construed in a manner that imposes unanticipated conditions or restrictions
on our ability to monetize our services. Additionally, we may from