Company: XTKG
Filing Date: 2025-04-25
Form Type: 20-F
Source: 0001213900-25-035626
Chunk: 118

Company: X3 Holdings Co., Ltd.
Filing Date: 2025-04-25
Form: 20-F
Item: Item 5
Chunk 118
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8% and 85.2% for
the years ended December 31, 2024 and 2023, respectively.

Gross profit for trading revenue
was $0.01 million and $0.05 million for the years ended December 31, 2024 and 2023, respectively; gross profit margin was 0.5% and 1.8%
for the years ended December 31, 2024 and 2023, respectively.

Gross loss for others revenue
was approximately $0.02 million for the year ended December 31, 2024 as compared to a gross profit of approximately $0.03 million for
the year ended December 31, 2023. Gross (loss) profit margin was (44.3) % and 17.9% for the year ended December 31, 2024 and 2023, respectively.

Operating Expenses

                                   For the Years Ended                                                                                   
                                   December 31,                                                                                          
                                   2024                                     2023                      Change                             
 ─────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  OPERATING EXPENSES:                                                                                                                    
  Selling and marketing            $                         1,103,266      $          1,480,732      $             (377,466      (25.5  
  General and administrative                                 7,179,289                12,130,707                  (4,951,418      (40.8  
  Provision for credit losses                                5,358,510                   539,284                   4,819,226      893.6  
  Research and development                                   4,062,297                 4,814,463                    (752,166      (15.6  
  Share based compensation                                   5,834,999                 6,058,117                    (223,118       (3.7  
  Impairment charges                                        64,485,916                31,958,931                  32,526,985      101.8  
  Total operating expenses         $                        88,024,277      $         56,982,234      $           31,042,043       54.5  

Our operating expenses consist
of selling and marketing, general and administrative, research and development (“ R& D”) expenses, provision for credit
losses, stock-based compensation and impairment charges. Operating expenses increased by approximately $31.