Company: XTKG
Filing Date: 2025-04-25
Form Type: 20-F
Source: 0001213900-25-035626
Chunk: 201

Company: X3 Holdings Co., Ltd.
Filing Date: 2025-04-25
Form: 20-F
Item: Item 15
Chunk 201
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(b) Management’s Annual Report on Internal
Control over Financial Reporting Attestation Report of the Registered Public Accounting Firm

Our management is responsible
for establishing and maintaining adequate internal control over financial reporting as defined in Rules 13a-15(f) and 15d-15(f) under
the Exchange Act.

Our internal control over
financial reporting is a process designed to provide reasonable assurance regarding the reliability of our financial reporting and the
preparation of financial statements for external purposes in accordance with U. S. GAAP and includes those policies and procedures that
(1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions
of the assets of our company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of consolidated
financial statements in accordance with GAAP, and that receipts and expenditures of our Company are being made only in accordance with
authorizations of our management and directors; and (3) provide reasonable assurance regarding prevention or timely detection of the unauthorized
acquisition, use or disposition of our company’s assets that could have a material effect on the consolidated financial statements.

Because of its inherent limitations,
internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of the effectiveness
of our internal control over financial reporting to future periods are subject to the risks that controls may become inadequate because
of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

As required by Rule 13a-15(c)
of the Exchange Act, our management conducted an evaluation of our company’s internal control over financial reporting as of December
31, 2024 based on the framework in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations
of the Treadway Commission. Based on this evaluation, our management concluded that our internal control over financial reporting was
not effective as of December 31, 2024. The material weaknesses identified by us and our independent registered public accounting firm
related to (i) a lack of accounting staff and resources with appropriate knowledge of U. S. GAAP and SEC reporting and compliance requirements;
(ii) a lack of sufficient documented financial closing policies and procedures, specifically those related to period-end expenses cut-off
and accruals; (iii) inadequate controls with respect to the maintenance of sufficient documentation for, and the evaluation of the accounting
implications of, significant and non-routine payment transactions;