Company: XTKG
Filing Date: 2025-04-25
Form Type: 20-F
Source: 0001213900-25-035626
Chunk: 9

Company: X3 Holdings Co., Ltd.
Filing Date: 2025-04-25
Form: 20-F
Item: Item 3
Chunk 9
---
 and we may be less effective
in predicting when will we complete these sales. In our industry, the decision to invest in our services may require a great number of
product evaluations and multiple approvals within a potential customer’s organization, which may require us to invest more
time educating these potential customers. In addition, larger organizations may demand more features and professional services. As a result,
these sales opportunities would likely to lengthen our typical sales cycle and may require us to devote greater research and development,
sales, support, and professional services resources to individual customers. This could strain our resources and result in increased costs.
Moreover, larger customers may demand discounts in pricing, which could lower the amount of revenue we generate from any particular services
that we offer. If an expected transaction is delayed until a subsequent period, or if we are unable to close one or more expected significant
transactions with larger customers or potential new customers in a particular period, our results of operations for that period, and for
any future periods in which revenue from such transaction would otherwise have been recognized, may be adversely affected. Our investments
in marketing and selling to large organizations may not be successful, which could harm our results of operations and our overall ability
to grow our customer base.

Our business depends, in part, on services
to the public sector, and significant changes in the contracting or fiscal policies of the public sector could have an adverse effect
on our business.

We derive a large portion
of our revenue from our services to governmental organizations, and we believe that the success and growth of our business will continue
to depend in part on our successful procurement of government contracts. Factors that could impede our ability to maintain or increase
the amount of revenue derived from government contracts, include:

  changes                             
  in fiscal or contracting policies;  
 ──────────────────────────────────────

  decreases                         
  in available government funding;  
 ────────────────────────────────────

  changes                                             
  in government programs or applicable requirements;  
 ──────────────────────────────────────────────────────

  the                                                                                  
  adoption of new laws or regulations or changes to existing laws or regulations; and  
 ───────────────────────────────────────────────────────────────────────────────────────

  potential                                                                                     
  delays or changes in the government appropriations or other funding authorization processes.  
 ────────────────────────────────────────────────────────────────────────────────────────────────

The occurrence of any of the
foregoing could cause governmental organizations to delay or refrain from purchasing our services in