Company: XTKG
Filing Date: 2025-04-25
Form Type: 20-F
Source: 0001213900-25-035626
Chunk: 252

Company: X3 Holdings Co., Ltd.
Filing Date: 2025-04-25
Form: 20-F
Item: Item 19
Chunk 252
---
erville Note bears interest at a rate of6% per annum compounding daily.
All outstanding principal and accrued interest on the Streeterville Note will become due and payable twelve months after the purchase
price of the Note is delivered by Purchaser to the Group (the “ Purchase Price Date”). The Streeterville Note includes an original
issue discount of $640,000along with $20,000for Streeterville’s fees, costs and other transaction expenses incurred in connection
with the purchase and sale of the Note. The Group may prepay all or a portion of the Streeterville Note at any time by paying120% of
the outstanding balance elected for pre-payment.

F-32

X3 HOLDINGS CO., LTD.

Note 13 - Convertible Notes(continued)

The Group elected the
fair value option to account for the Streeterville Note on instrument-by-instrument basis and engaged an independent valuation firm to
perform the valuation. The fair value of the Streeterville Note is calculated using the binomial tree model. The convertible notes are
classified as level 3 instruments as the valuation was determined based on unobservable inputs which are supported by little or no market
activity and reflect the Group’s own assumptions in measuring fair value. Significant inputs used in developing the fair value of
the convertible notes include time to maturity, risk-free interest rate, straight debt discount rate, probability to convert and expected
timing of conversion.

For the year ended December
31, 2022, Streeterville delivered conversion notice for convertible notes in an aggregate of principle of $1,250,310to the Group and
the Group issued an aggregate of2,913(post-reverse stock split adjusted to485) Class A ordinary shares of the Group to Streeterville.
For the year ended December 31, 2023, the Group repaid principal and interest in cash of $1,250,000and issued in aggregated of5,594(post-reverse stock split adjusted to932) Class A ordinary shares to Streeterville upon conversions. As of December 31, 2023, the fair
value of outstanding Streeterville note was5,020,633. For the year ended December 31, 2024, the Group fully repaid the remaining principal
and interest in aggregate of $4,059,983in cash payments to Streeterville. As of December 31 2024, the fair value of outstanding Streeterville
note was Nil. For the year ended December 31, 2024, the Group Company recognized a gain of