Company: XTKG
Filing Date: 2025-04-25
Form Type: 20-F
Source: 0001213900-25-035626
Chunk: 13

Company: X3 Holdings Co., Ltd.
Filing Date: 2025-04-25
Form: 20-F
Item: Item 3
Chunk 13
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, expose us to uninsured liabilities, subject us to lawsuits, fines or sanctions, distract our management
or increase our costs of business operations.

Our encryption of data and
other protective measures may not prevent unauthorized access or use of sensitive data. A breach of our system or that of one of our associated
participants may subject us to material losses or liabilities. A misuse of such data or a cybersecurity breach could harm our reputation
and deter customers from using our products and services, thus reducing our revenue. In addition, any such misuse or breach could cause
us to incur costs to correct the breaches or failures, expose us to uninsured liability, increase our risk of regulatory scrutiny, subject
us to lawsuits, result in the imposition of material penalties and fines under the applicable laws or regulations.

We cannot assure you that
there are written agreements in place with every associated participant or that such written agreements will prevent the unauthorized
use, modification, destruction or disclosure of data or enable us or our customers to obtain reimbursement in the event that should we
suffer incidents resulting in the unauthorized use, modification, destruction or disclosure of data. Any unauthorized use, modification,
destruction or disclosure of data could result in protracted and costly litigation, which could have a material adverse effect on our
business, financial condition and results of operations.

Cybersecurity incidents are
increasing in frequency and evolving in nature and include, but are not limited to, installation of malicious software, unauthorized access
to data and other electronic security breaches that could lead to disruptions in systems, unauthorized release of confidential or otherwise
protected information and the corruption of data. Given the unpredictability of the timing, nature and scope of information technology
disruptions, there can be no assurance that the procedures and controls that we employ will be sufficient to prevent security breaches
from occurring and we could be subject to manipulation or improper use of our systems and networks or financial losses from remedial actions,
any of which could have a material adverse effect on our business, financial condition and results of operations.

Interruptions or performance problems associated
with our technology and infrastructure may adversely affect our business, results of operations, and financial condition.

Our continued growth depends
in part on the ability of our existing customers and new customers to access our SaaS services, at any time and within an acceptable amount
of time. We may in the future experience service disruptions, outages and other performance problems due to a variety of factors, including
infrastructure changes, human or software errors or capacity constraints. In some