Company: KNRX
Filing Date: 2025-09-30
Form Type: 424B4
Source: 0001493152-25-016175
Chunk: 92

Company: KNOREX LTD.
Filing Date: 2025-09-30
Form: 424B4
Chunk 92
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 our customers. Our credit term with
our customers is typically 30 days. However, our days sales outstanding as of December 31, 2024 and 2023 were approximately 72
and 70 days, respectively, higher than our typical credit term. This is due to (a) increased sales volume, but our collections have not
kept pace leading to an increase in average collection time; and (b) collection delays due to discussion with clients, particularly
with new clients adjusting to our payment schedules or new services. We are actively addressing these issues by improving invoicing practices,
improving our onboarding process, enhancing customer communication, enforcing stricter credit policies and migrating clients into prepayment.

The following tables set forth our selected consolidated cash flow data for the periods indicated:

|                                                |     |                          For 
 the Years Ended December 31, |            |   |     |      |            |   |
|                                                |     |                         2024 |            |   |     | 2023 |            |   |
|                                                |     |                          US$ |            |   |     |  US$ |            |   |
| Net                                            
 cash used in operating activities              |     |                              | (5,436,860 | ) |     |      | (5,508,254 | ) |
| Net                                            
 cash used in investing activities              |     |                              |   (866,761 | ) |     |      |   (878,219 | ) |
| Net                                            
 cash provided by financing activities          |     |                              |  5,209,029 |   |     |      |  7,848,654 |   |
| Effect                                         
 of exchange rate changes                       |     |                              |     56,539 |   |     |      |   (111,119 | ) |
| Net                                            
 change in cash and cash equivalents            |     |                              | (1,038,053 | ) |     |      |  1,351,062 |   |
| Cash                                           
 and cash equivalents, at the beginning of year |     |                              |  1,862,781 |   |     |      |    511,719 |   |
| Cash                                           
 and cash equivalents, at the end of year       |     |                              |    824,728 |   |     |      |  1,862,781 |   |

Operating Activities

Net cash used in operating activities for the year ended December 31,