Company: KNRX
Filing Date: 2025-09-22
Form Type: F-1/A
Source: 0001493152-25-014499
Chunk: 22

Company: KNOREX LTD.
Filing Date: 2025-09-22
Form: F-1/A
Chunk 22
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 by telecommunications network operators to provide us with the bandwidth we need to provide our products and offerings, could cause delays or interruptions to our services, offerings, and platforms. Any of these events could damage our reputation, resulting in fewer users actively using our platform, disrupt our operations, and subject us to liability, which could adversely affect our business, financial condition, and results of operations.

We often have relatively long sales cycles, resulting in considerable lead time between initial contact, execution of sales agreement and subsequent revenue commitment, making it challenging to ultimately project when we will generate revenue from the customers, if at all.

Our sales cycles, from initial
contact to execution of sales agreement and implementation, often involves long cycles, which means there is a significant amount of
time between initial contact, finalizing the sales agreement, and generating revenue from the agreement. Our sales efforts involve educating
our customers about the use, technical capabilities, and benefits of our XPO platform. Some of our customers undertake an evaluation
process that involves reviewing the offerings of our competitors in addition to our platform. As a result, it is difficult to predict
when we will begin onboarding new customers and generating revenue from these new customers. Even if our sales efforts successfully secure
a new customer, we can only start generating the bulk of our revenue when our customers are onboarded and starting to advertise on our
XPO platform under our usage-based pricing model; the client retains control over when and to what extent it uses the XPO platform. As
a result, this introduces a level of unpredictability in our ability to add new customers and promptly generate revenue, which has the
potential to adversely impact or restrict the predictability of our growth. Further, we have encountered and may continue to face disputes
with marketers regarding billing matters related to our services, the operation of XPO, and the terms of our agreements. In cases
where we are unable to recover payments or make necessary adjustments to customer bills, we may incur write-offs for bad debt or revenue
reductions. These events could significantly impact our operating results during the periods in which such write-offs or revenue adjustments
occur. Moreover, there is a possibility that bad debt may exceed reserves set aside for such contingencies, resulting in an increase
in our exposure to bad debt over time. Any escalation in write-offs for bad debt or reductions in revenue due to adjustments could have
a substantial negative effect on our business, financial condition, and operating results.

In addition, we are generally
contractually required to