Company: KNRX
Filing Date: 2025-08-21
Form Type: F-1/A
Source: 0001641172-25-025066
Chunk: 37

Company: KNOREX LTD.
Filing Date: 2025-08-21
Form: F-1/A
Chunk 37
---
. If the XPO platform cannot scale to meet demand, if there are errors
in our execution of any of these functions on our platform, or if we experience outages, then our business may be harmed. We may also
face material delays in introducing new services, products, and enhancements. If competitors introduce new products and services
using new technologies, or if new industry standards and practices emerge, our existing proprietary technology and systems may become
obsolete.

Operational and performance
issues with our platform carry additional risks, including negative publicity, harm to our brand and reputation, delays in market acceptance,
increased operational costs, revenue loss, restricted access to our platform, a diminished competitive position, and potential
claims from clients for losses incurred. Addressing the fallout from these issues may necessitate substantial capital and resource investments
and could lead to business interruptions, delays, or even the suspension of our operations, any of which could have adverse effects on
our financial health and operating results. Failure to effectively manage these risks and maintain the availability and performance of
our platforms could diminish our ability to service our users and commercial partners, leading to loss of market share, decreased revenue
and reputational damage, which could adversely affect our business, financial condition, and results of operations.

Errors or inaccuracies in our business data and algorithms may adversely affect our business decisions and the customer experience.

We rely heavily on business
data and algorithms to drive our operations, optimize advertising campaigns, and deliver effective results. We use data to make
informed decisions across various functions, including marketing, product development and resource allocation. The presence of errors
or inaccuracies in our business data and algorithms carries significant implications for our operations and customer experience.

Inaccurate data can mislead
our algorithms and AI/ML models to optimize wrongly, leading to advertising performance which is less optimal or subpar. Erroneous data
in reporting can cause our customers to derive wrong insights and make incorrect conclusions, which can lead to business losses. Inaccurate
data can erode trust in our brand. Errors in data can also have financial consequences, affecting revenue, incorrect billing, cost management
and overall profitability. Incorrect billing, for example, may result in revenue loss, while erroneous cost projections can cause financial
mismanagement. Inaccuracies can hinder our ability to leverage data for innovation for development of new products or services and staying
competitive in our industry.

| 20 |

Unfavorable publicity and negative public perception about the advertising industry, particularly concerns regarding data privacy