Company: XTKG
Filing Date: 2025-04-25
Form Type: 20-F
Source: 0001213900-25-035626
Chunk: 77

Company: X3 Holdings Co., Ltd.
Filing Date: 2025-04-25
Form: 20-F
Item: Item 3
Chunk 77
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a PCAOB-Identified Firm. Promptly after the effective date of this rule, the PCAOB will make determinations under the HFCAA to the extent
such determinations are appropriate. Thereafter, the PCAOB will consider, at least annually, whether changes in facts and circumstances
support any additional determinations. The PCAOB will make additional determinations as and when appropriate, to allow the SEC on a timely
basis to identify covered issuers pursuant to the SEC rules. The rule became effective when the SEC approved the rule on November 4, 2021.
On December 2, 2021, the SEC finalized its rules regarding disclosure by Covered Issuers. In addition, the release discussed the procedures
the SEC will follow in implementing trading prohibitions for Covered Issuers. A foreign company would have to be designated a Covered
Issuer three years in a row to be subject to a trading prohibition on that basis. The trading suspension would prohibit trading of the
Covered Issuer’s securities on any exchange or in the over-the-counter markets.

The trading prohibition will
be terminated if the Covered Issuer certifies to the SEC that the issuer has retained a registered public accounting firm that the PCAOB
has inspected to the satisfaction of the SEC and files financial statements that include an audit report signed by the non-PCAOB-Identified
Firm. The SEC is not required to engage in rulemaking to implement the trading prohibition provisions of the HFCAA. Neither the Act nor
the SEC’s release create an obligation for an exchange to delist the Covered Issuer, but the SEC noted that under existing listing
rules of the exchanges, a trading prohibition would be grounds for delisting. On December 16, 2021, the PCAOB issued a report on its determinations
that it is unable to inspect or investigate completely PCAOB-registered public accounting firms headquartered in mainland China and in
Hong Kong because of positions taken by PRC authorities in those jurisdictions.

On August 26, 2022, the PCAOB
entered into a Statement of Protocol with the China Securities Regulatory Commission and the Ministry of Finance of the PRC and, as summarized
in the “ Statement on Agreement Governing Inspections and Investigations of Audit Firms Based in China and Hong Kong” published
on the U. S. Securities and Exchange Commission’s official website, the parties agreed to the following: (i) in accordance with the
Sarbanes-Oxley Act of 2002, or