Company: KNRX
Filing Date: 2025-03-05
Form Type: F-1/A
Source: 0001493152-25-009104
Chunk: 116

Company: KNOREX LTD.
Filing Date: 2025-03-05
Form: F-1/A
Chunk 116
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, our revenue was derived from 30 and 27 customers, with the top five customers contributing approximately 86.1%
and 85.2% of the total revenue, respectively. For the fiscal year ending December 31, 2023, our revenue was derived from 29 customers,
with the top five customers contributing approximately 81.3% of the total revenue. In the subsequent year ending December 31, 2022, our
customer base was 45, with the top five customers contributing approximately 53.6% of the total revenue. Although our customer base decreased,
this reduction aligns with our strategic focus on ICP-matching customers. For the last two years, we have embarked on the initiative
to evaluate new and existing customers against our ICP profile so that we are channeling our resources towards serving and retaining
such ICP-matching customers. We monitored and observed that customers who fit our ICP are committing to longer contract terms and make
more extensive use of our XPO platform as our value propositions directly appeal to them. This is evident from the marked increase in
average revenue per customer from US$140,364 to US$300,890, an approximate 114.4% rise from December 31, 2022. We expect to see growth
in our customer count going forward as we have concluded our customer review. We believe this initiative will positively impact our long-term
success by driving stronger financial stability and growth. By focusing on profitable ICP-matching customers, we anticipate increased
revenue and larger contract size, with higher lifetime value per customer as they commit to longer and bigger contracts, thus providing
us predictable growth and repeat business. The resulting trust and loyalty will enhance customer retention and satisfaction. Concentrating
on such customers allows for better resource allocation, reduced costs, and improved operational efficiency through better forecasting
and planning. Prioritizing such profitable, long-term customers aligns our interests, enabling us to pursue more innovations, and encourages
continuous improvements, ultimately sharpening our competitive edge and differentiating our business.

Material terms of our agreements with major customers include the following:

| ● | We                                                                                                     
 grant to our customer and its authorized users a limited, revocable, non-exclusive, non-sublicensable, 
 non-transferable license during the applicable subscription term to access and use our XPO             
 platform and its APIs;                                                                                 |
| ● | The                                                                                                    
 customer is responsible for its authorized users’ use of our XPO platform and