Company: XTKG
Filing Date: 2025-04-25
Form Type: 20-F
Source: 0001213900-25-035626
Chunk: 223

Company: X3 Holdings Co., Ltd.
Filing Date: 2025-04-25
Form: 20-F
Item: Item 19
Chunk 223
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 time of capital contributions. Because cash flows are translated based on the
average translation rates, amounts related to assets and liabilities reported on the consolidated statements of cash flows will not necessarily
agree with changes in the corresponding balances on the consolidated balance sheets. Translation adjustments arising from the use of different
exchange rates from period to period are included as a separate component of accumulated other comprehensive loss included in consolidated
statements of changes in equity. Gains and losses from foreign currency transactions are included in the consolidated statement of operations
and comprehensive loss.

Fair value measurement

ASC 825-10 requires certain
disclosures regarding the fair value of financial instruments. Fair value is defined as the price that would be received to sell an asset
or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A three-level fair value
hierarchy prioritizes the inputs used to measure fair value. The hierarchy requires entities to maximize the use of observable inputs
and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows:

  Level 1 — inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.  

  Level 2 — inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, quoted market prices for identical or similar assets in markets that ar...  

  Level 3 — inputs to the valuation methodology are unobservable.  

Unless otherwise disclosed,
the fair value of the Group’s financial instruments including cash, notes and accounts receivable, due from related parties, deposits
and other current assets, notes and accounts payable, customer deposits, salaries and benefits payables and due to related party approximates
their recorded values due to their short-term maturities. The fair value of the deposits and other assets and loans to third parties approximate
their carrying amounts because the deposits were paid in cash.

F-9

X3 HOLDINGS CO., LTD.

Note 2 - Summary of significant accounting
policies(continued)

Assets and Liabilities
Measured or Disclosed at Fair Value on a recurring basis

The following tables represent
the fair value hierarchy of the Group’s financial assets and liabilities measured at fair value on a recurring basis as of December
31, 2024:

                                              As of December 31, 2024                                                                           
 ────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
                                              Fair Value Measurement at the Reporting Date using                                                
                                              Qu