Company: XTKG
Filing Date: 2025-04-25
Form Type: 20-F
Source: 0001213900-25-035626
Chunk: 134

Company: X3 Holdings Co., Ltd.
Filing Date: 2025-04-25
Form: 20-F
Item: Item 5
Chunk 134
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,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.

We believe 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 Company may need additional cash resources in the future if the Company experiences changed business conditions or other
developments, and may also need additional cash resources in the future if the Company wishes to pursue opportunities for investment,
acquisition, strategic cooperation or other similar actions. If it is determined that the cash requirements exceed our amounts of cash
on hand, the Company may seek to issue debt or equity securities or obtain a credit facility.

The following summarizes the
key components of our cash flows for the years ended December 31, 2024, 2023 and 2022.

                                                                                   For the Years Ended                                                                       
                                                                                   December 31,                                                                              
                                                                                   2024                                     2023                       2022                  
  Net cash used in operating activities                                            $                          (992,440      $         (11,152,805      $         (9,656,725  
 ─────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Net cash used in investing activities                                                                     (1,510,863                 (2,430,858                  (815,220  
  Net cash provided by financing activities                                                                  2,177,110                  9,289,034                12,984,391  
  Effect of exchange rate change on cash, cash equivalent and restricted cash                                 (124,747                   (370,193                  (188,372  
  Net (decrease) increase in cash, cash equivalent and restricted cash             $                          (450,940      $          (4,664,822      $          2,324,074  

Operating Activities

Net cash used in operating
activities was approximately $1.0 million for the year ended December 31, 2024. Cash used in operating activities for the year ended December
31, 2024 mainly consisted of approximately $83.8 million of net loss, adjustment of $82.4 million non-cash items, a decrease of approximately
$1.6 million in accounts payable, a decrease of approximately $0