Company: KNRX
Filing Date: 2025-09-30
Form Type: 424B4
Source: 0001493152-25-016175
Chunk: 79

Company: KNOREX LTD.
Filing Date: 2025-09-30
Form: 424B4
Chunk 79
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 increases in revenue and decreases in operating expenses.

Subsequent to December 31, 2024, we experienced a material reduction in revenue beginning in February 2025 in connection with our largest customer. The loss of volume was due to the impact of new U.S. import tariffs on one of this customer’s clients rather than customer dissatisfaction. This led to that client to cut its marketing spend, thereby reducing the business our largest customer conducted with us. As a result, our revenue for the six-month period in 2025 has declined by approximately 50% compared to the same period in 2024. We are working closely with our largest customer to expand engagement across their other clients and actively pursuing new ICP-matching customers and revenue sources. Concentrating on ICP-matching customers reduces costs and improves operational efficiency through better forecasting and planning. However, there can be no assurance that these efforts will offset the loss of business in the near term.

Key Factors Affecting Our Results of Operations

Our results of operations have been, and are expected to continue to be, affected by various factors, which primarily include the following:

Our Ability to Create Value for Our Customers and Generate Revenue

Creating value for our customers and generate recurring revenues from them is driven by our strong focus and experience in empowering data and technology. Our ability to provide access and aggregate data from different sources from the data marketplace, different devices and across heterogeneous channels and platforms, to enable marketers through our AI capabilities to automate and effectively harness increasingly complex, disparate data in real-time to deliver impactful advertising experience to the desired target audience segments via the right ad channels, ultimately to maximize the advertising campaigns, ROAS or fulfilment of the campaign objective are key measurements to create value for our customers. Further, our ability to help marketers to achieve efficiency and cost savings in their business operation through AI/ML-driven automation is equally important. We may lose customers if we fail to improve and enhance our platform and service offerings and performance optimization and solutions to meet our customers’ evolving needs.

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Our Investment in Technology and Infrastructure

We have made, and will continue to make, significant investments in our platform, as well as service and infrastructure modifications to enhance user experience and expand the capabilities and scope of our platform while we scale our platform to meet increasing demand and sophistication. We expect to continue our strong priority in investing in our research and development effort and our technology capabilities and infrastructure which will provide us the differentiation in a competitive market. It will lower our margins but deliver sustaining overall long-term growth.