Company: XTKG
Filing Date: 2025-04-25
Form Type: 20-F
Source: 0001213900-25-035626
Chunk: 230

Company: X3 Holdings Co., Ltd.
Filing Date: 2025-04-25
Form: 20-F
Item: Item 19
Chunk 230
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 is available and reviewed regularly by management) with its respective carrying value. If the estimated fair value exceeds
the carrying value, goodwill at the reporting unit level is not deemed to be impaired. However, if the estimated fair value is below carrying
value, further analysis is required to determine the amount of the impairment.

In the course of evaluating
the potential impairment of goodwill, the Group may perform either a qualitative or a quantitative assessment. The Group’s qualitative
assessment of potential impairment may result in the determination that a quantitative impairment analysis is not necessary. Under this
elective process, the Group assesses qualitative factors to determine whether the existence of events or circumstances leads the Group
to determine that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If after assessing
the totality of events and circumstances, the Group determines it is more likely than not that the fair value of a reporting unit is greater
than its carrying amount, then performing a quantitative analysis is not required. However, if the Group concludes otherwise, then the
Group performs a quantitative impairment analysis.

If the Group either chooses
not to perform a qualitative assessment, or the Group chooses to perform a qualitative assessment but is unable to qualitatively conclude
that no impairment has occurred, then the Group performs a quantitative evaluation. In the case of a quantitative assessment, the Group
estimates the fair value of the reporting unit with which the goodwill that is subject to the quantitative analysis is associated and
compares it to the carrying value. If the estimated fair value of a reporting unit is less than its carrying value, the excess is recorded
as a goodwill impairment, which is limited to the total amount of goodwill allocated to that reporting unit.

For the year ended December
31, 2024, the Group performed the impairment test and determined that the fair value of goodwill acquired from the acquisition of Boxinrui
and Hongchuangxin was less than carrying value. The Group impaired the goodwill acquired from the acquisition of Boxinrui and Hongchuangxin
of $15,031,608and $2,911,926for the year ended December 31, 2024.

For the year ended December
31, 2023, the Group performed the impairment test and determined that the fair value of goodwill acquired from the acquisition of Boxinrui
and Smartconn was less than carrying value. The Group impaired the goodwill acquired from the acquisition of Boxinrui and Smartconn of
$8