Company: XTKG
Filing Date: 2025-04-25
Form Type: 20-F
Source: 0001213900-25-035626
Chunk: 200

Company: X3 Holdings Co., Ltd.
Filing Date: 2025-04-25
Form: 20-F
Item: Item 15
Chunk 200
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Item 15. CONTROLS AND PROCEDURES

(a) Disclosure Controls and Procedures

Under the supervision and
with the participation of our management, including our CEO and our CFO, we carried out an evaluation of the effectiveness of our disclosure
controls and procedures, which is defined in Rules 13a-15(e) of the Exchange Act, as of December 31, 2024. Based on that evaluation, our
CEO and CFO concluded that our disclosure controls and procedures as of December 31, 2024 were not effective at the reasonable assurance
level due to the material weakness described below.

In connection with the audit
of our financial statements for the years ended December 31, 2024, 2023 and 2022, we and our independent registered public accounting
firms identified material weakness in our internal control over financial reporting, as defined in the standards established by the
Public Company Accounting Oversight Board of the United States. The material weakness identified consisted of (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; and (iv) a lack of sufficient documented financial closing policies and procedures, specifically those
related to period-end expenses cut-off and accruals; as defined in the standards established by the Public Company Accounting Oversight
Board of the United States.

We have already taken some
steps and have continued to implement measures to remediate the material weakness identified, including but not limited to providing trainings
to staff, changing to a new and well-established accounting system, and continue to monitor the internal control over financial reporting.
However, we cannot assure you that we will not identify additional material weaknesses or significant deficiencies in the future. See
“ Item 3. Key Information - D. Risk Factors - If we fail to establish and maintain proper internal financial reporting
controls, our ability to produce accurate financial statements or comply with applicable regulations could be impaired.”

Notwithstanding there are
material weaknesses identified as described above, we believe that our consolidated financial statements contained in this Annual Report
on Form 20-F fairly present our financial position, results of operations and cash flows for the years covered thereby in all material
respects