Company: XTKG
Filing Date: 2025-04-25
Form Type: 20-F
Source: 0001213900-25-035626
Chunk: 14

Company: X3 Holdings Co., Ltd.
Filing Date: 2025-04-25
Form: 20-F
Item: Item 3
Chunk 14
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 instances, we may not be able to identify the cause
or causes of these performance problems within an acceptable period of time. It may become increasingly difficult to maintain and improve
our performance as our SaaS services become more complex. If our services are unavailable or if our customers are unable to access features
of our services within a reasonable amount of time or at all, our business would be negatively affected.

We currently provide our SaaSservices via designated data centers and we intend to outsource our cloud infrastructure to commercially available cloud infrastructure
as a service providers (“IaaS”), which can host our services. Our customers need to be able to access our services
at any time, without interruption or degradation of performance. IaaS providers run their own platforms that we access, and we are, therefore,
vulnerable to service interruptions. We expect that in the future we may experience interruptions, delays and outages in service
and availability from time to time due to a variety of factors, including infrastructure changes, human or software errors, website hosting
disruptions and capacity constraints. Capacity constraints could be due to a number of potential causes including technical failures,
natural disasters, fraud or security attacks. In addition, if our security, or that of IaaS providers, is compromised, our services are
unavailable or our customers are unable to use our services within a reasonable amount of time or at all, then our business, results of
operations and financial condition could be adversely affected. In some instances, we expect that we may not be able to identify the cause
or causes of these performance problems within a period of time acceptable to our customers. It may become increasingly difficult to maintain
and improve our service performance, especially during peak usage times, as the features of our services become more complex and the usage
of our services increases. Any of the above circumstances or events may harm our reputation, cause customers to stop using our services,
impair our ability to increase revenue from existing customers, impair our ability to grow our customer base and otherwise harm our business,
results of operations, and financial condition.

The market for our BaaS (blockchain-as-a-service)
services is new and unproven, which could result in limited customer adoption of our services, limited customer retention, or weaker customer
expansion.

We currently provide our BaaS
services as pilot projects on a limited basis to selected customers. While we believe that, over time, the concept of a BaaS services
will become fundamental to an organization’s core operations involving global trade, the