Company: KNRX
Filing Date: 2025-09-30
Form Type: 424B4
Source: 0001493152-25-016175
Chunk: 209

Company: KNOREX LTD.
Filing Date: 2025-09-30
Form: 424B4
Chunk 209
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 services, managed activations and professional services, for which the Company’s contracted performance obligations have been satisfied, the amount has been billed and the Company has an unconditional right to payment. The Company typically bills customers monthly based on actual delivery. The payment terms vary, mainly with terms of 30 days or less.

The Company applies the practical expedient in ASC 606 and does not adjust the promised amount of consideration for the effects of a significant financing component if the Company expects, at contract inception, that the period between when the Company transfers a promised good or service to a customer and when the customer pays for that good or service will be one year or less. As of December 31, 2024 and 2023, the Company did not have any contract assets.

The Company recognized advance payments from its customer prior to revenue recognition as deferred revenue until the revenue recognition performance obligations are met.

The following table presents the Company’s deferred revenue balances, net increase in current period of deferred revenue, and revenue recognized from beginning deferred revenue therein:

|                                                          |     |     | December 31, 2024 |   |     |     | December 31, 2023 |   |
|:---------------------------------------------------------|:----|:----|------------------:|:--|:----|:----|------------------:|:--|
|                                                          |     | US$ |                   |   |     | US$ |                   |   |
| Beginning balance                                        |     | $   |           126,440 |   |     | $   |           357,059 |   |
| Add: net increase in current period of deferred revenue  |     |     |            45,235 |   |     |     |           126,440 |   |
| Less: revenue recognized from beginning deferred revenue |     |     |          (126,440 | ) |     |     |          (357,059 | ) |
| Ending balance                                           |     | $   |            45,235 |   |     | $   |           126,440 |   |

As of December 31, 2024 and 2023, the Company had deferred revenue of US$45,235 and US$126,440, respectively, among which, US$45,235 is expected to be recognized as revenue during the year ended December 31, 2025 and US$126,440 was recognized as revenue during the year ended December 31, 2024.

Cost of revenues

Cost of revenues