Company: XTKG
Filing Date: 2025-04-25
Form Type: 20-F
Source: 0001213900-25-035626
Chunk: 145

Company: X3 Holdings Co., Ltd.
Filing Date: 2025-04-25
Form: 20-F
Item: Item 5
Chunk 145
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technical support services is primarily comprised of fixed-fee contracts, which require the Company to provide professional consulting
and technical support services over contract terms beginning on the commencement date of each contract, which is the date its service
is made available to customers. Billings to the customers are generally on a monthly or quarterly basis over the contract term, which
is typically 12 to 24 months. The consulting and technical support services contracts typically include a single performance obligation.
The revenue from consulting and technical support services is recognized over the contract term on a straight-line basis as customers
receive and consume benefits of such services.

(3) Revenue from subscription services

Revenue from subscription
services is comprised of subscription fees from customers accessing our software-as-a-service applications for a subscribed period. Our
monthly or quarterly billing to customer is on the basis of number of uses or the actual usage by the customers. The subscription arrangements
are considered service contracts because customers do not have the right to take possession of the software and can only benefit from
the software when provided the right to access the software. Accordingly, the subscription services contracts typically include a single
performance obligation. The revenue from subscription services is recognized over the contract term on a straight-line basis or based
on the actual usage as customers receive and consume benefits of such services.

(4) Trading revenue

We started trading business
for the year ended December 31, 2021 and recognized revenue at a point in time when control of such products transfers to the customer,
which generally occurs upon shipment or delivery depending on the terms of the contracts with the customer. Product sale contracts typically
include a single performance obligation and there are no rights of return. The transaction price is based on the fixed contractual price
with the customer. Billings to the customer for the sale of products occur at the time the products are transferred to the customer.

(5) Others revenue

In April 2023, the Company
started regional authorization membership program to engage independent merchant to assist in developing specified geographical regions.
The program grants non-exclusive geographical territory business development to the authorized distributors within that defined territory.
Our services under regional cooperation agreements include marketing support to advertise as well as utilization of our trademark and
copyrights for business promotion purpose. The term of cooperation agreements is typically one to two years. We charge a fixed amount
authorization fee which is non-refundable and to be paid upon execution of an authorization agreement. For all our cooperation agreements,
the amount of fee is fixed or determinable and no right of return provision