Company: XTKG
Filing Date: 2025-04-25
Form Type: 20-F
Source: 0001213900-25-035626
Chunk: 222

Company: X3 Holdings Co., Ltd.
Filing Date: 2025-04-25
Form: 20-F
Item: Item 19
Chunk 222
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 proceeds of approximately $7,425,000. The 2024 YA Notes will be conducted in four closings. The first closing
consists of offer and sale of a note in the principal amount of $4,756,986. The first closing occurred on May 16, 2024. The second closing
consists of offer and sale of a note in the principal amount of $1,500,000. The second closing occurred on June 17, 2024.

The Group believes that its
cash on hand and financing cash flows will be sufficient to fund its operations over at least the next 12 months from the date of this
report. However, the Group may need additional cash resources in the future if the Group experiences changed business conditions or other
developments, and may also need additional cash resources in the future if the Group wishes to pursue opportunities for investment, acquisition,
strategic cooperation or other similar actions. If it is determined that the cash requirements exceed the Group’s amounts of cash
on hand, the Group may seek to issue debt or equity securities or obtain a credit facility.

F-8

X3 HOLDINGS CO., LTD.

Note 2 - Summary of significant accounting
policies(continued)

Use of estimates

The preparation of consolidated
financial statements in conformity with U. S. GAAP requires management to make estimates and assumptions that affect the reported amounts
of assets and liabilities and disclosures of contingent assets and liabilities as of the date of the consolidated financial statements
and the reported amounts of revenues and expenses during the periods presented. Significant accounting estimates reflected in the Group’s
consolidated financial statements include but not limited to the useful lives of property and equipment and intangible assets, impairment
of long-lived assets, impairment of goodwill, valuation of accounts receivables, valuation of convertible notes, revenue recognition and
realization of deferred tax assets and uncertain tax positions. Actual results could differ from these estimates.

Foreign currency translation

The functional currencies
of the Group are the local currency of the country in which the subsidiaries operate. The Group’s financial statements are reported
using U. S. Dollars. The results of operations and the consolidated statements of cash flows denominated in foreign currencies are translated
at the average rates of exchange during the reporting period. Assets and liabilities denominated in foreign currencies at the balance
sheet date are translated at the applicable rates of exchange in effect at that date. The equity denominated in the functional currencies
is translated at the historical rates of exchange at the