Company: KNRX
Filing Date: 2025-01-15
Form Type: F-1/A
Source: 0001493152-25-002249
Chunk: 260

Company: KNOREX LTD.
Filing Date: 2025-01-15
Form: F-1/A
Chunk 260
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 to not separate lease and non-lease components.

Operating lease assets are amortized on a straight-line basis in operating lease expense over the lease term on the consolidated statements of operations. The related amortization of ROU assets along with the change in the operating lease liabilities are separately presented within the cash flows from operating activities on the consolidated statements of cash flows. The Company records lease expense for operating leases on a straight-line basis over the lease term.

The Company reviews the impairment of its ROU assets consistent with the approach applied for its other long-lived assets. The Company reviews the recoverability of its long-lived assets when events or changes in circumstances occur that indicate that the carrying value of the asset may not be recoverable. The assessment of possible impairment is based on its ability to recover the carrying value of the asset from the expected undiscounted future pre-tax cash flows of the related operations. The Company has elected to include the carrying amount of operating lease liabilities in any tested asset group and include the associated operating lease payments in the undiscounted future pre-tax cash flows. For the years ended December 31, 2023 and 2022, the Company did not recognize impairment loss on its operating lease ROU assets.

Related parties

Parties, which can be a corporation or individual, are considered as related if the Company has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Companies are also considered to be related if they are subject to common control or common significant influence.

Correction of immaterial misstatements

The Company’s management, in consultation with the board of directors of the Company, concluded that the previously issued consolidated statements of operations and comprehensive loss for the year ended December 31, 2023, as included in the draft registration statement filed on June 20, 2024, and the subsequent amendments filed on July 17, 2024, July 26, 2024, and August 8, 2024, with the Securities and Exchange Commission, contained immaterial misstatements. The adjustment involves reclassifying the base pay and variable bonus related to technology and development activities, from general and administrative expenses to technology and development expenses to ensure consistency in the presentation of the consolidated statements of operations and comprehensive loss according to classification by functions.

The revisions to the consolidated statements of operations and comprehensive loss for the year ended December 31, 2023 does not have any impact on the Company’s consolidated balance sheet as of December 31,