Company: XTKG
Filing Date: 2025-04-25
Form Type: 20-F
Source: 0001213900-25-035626
Chunk: 244

Company: X3 Holdings Co., Ltd.
Filing Date: 2025-04-25
Form: 20-F
Item: Item 19
Chunk 244
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 Previous held 19.99% Equity Value                               ( 7,962,586  
  31% Equity Value with noncontrolling interest                  ( 19,522,079  
  Goodwill                                           $             21,105,559  

The intangible assets are
mainly attributable to software acquired through the acquisition, which are amortized over5-10years.

Due to sluggish business operations
subsequent to the acquisition, the Group engaged a third-party valuation firm and performed fair value assessment using income approach,
according to the valuation report, the Group recorded an impairment of intangible asset and goodwill of $2,272,829and $21,105,559, respectively,
for the year ended December 31, 2023 and further recorded an impairment of intangible asset of $12,705,933for the year ended December
31, 2024.

F-23

X3 HOLDINGS CO., LTD.

Note 3 - Acquisition(continued)

Boxinrui Acquisition

On March 28, 2023, the Group
completed an equity acquisition with fifteen individual shareholders (the “ Relevant Shareholders”) of Boxinrui, pursuant to
which the Group further acquired65% equity interest in Boxinrui for a consideration in form of57,593(post-reverse stock split
adjusted to9,598) Class A ordinary shares with fair value of $24,078,675to the Relevant Shareholders. Prior to the acquisition,
the Group held35% in Boxinrui, which together with the newly acquired shares, the Group holds in total100% in Boxinrui. The consolidated
operating results of Boxinrui for the years ended December 31, 2022 were not significant to the Group.

The objective of the acquisition
is to expand the Group’s business scope. The acquisition was closed on March 28, 2023.

The following table summarizes
the fair value of the identifiable assets acquired and liabilities assumed at the acquisition date, which represents the net purchase
price allocation at the date of the acquisition based on a valuation report performed by an independent valuation firm engaged by the
Group. The valuation report considered generally accepted valuation methodologies such as the income, market and cost approaches. The
fair value of the non-controlling interest was calculated after determination of an overall enterprise value for Boxinrui under the market
approach. Upon the acquisition, the Group recognized a gain of approximately $
2.7
million in fair value change