Company: KNRX
Filing Date: 2025-03-05
Form Type: F-1/A
Source: 0001493152-25-009104
Chunk: 213

Company: KNOREX LTD.
Filing Date: 2025-03-05
Form: F-1/A
Chunk 213
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ient 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 June 30, 2024 and December 31, 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:

|                                                          |     |     | June 30, 2024 |   |     |       | December 31, 2023 |   |
|:---------------------------------------------------------|:----|:----|--------------:|:--|:----|:------|------------------:|:--|
|                                                          |     | US$ |               |   |     | US$US |                   |   |
| Beginning balance                                        |     | $   |       126,440 |   |     | $     |           357,059 |   |
| Add: net increase in current period of deferred revenue  |     |     |        59,960 |   |     |       |           126,440 |   |
| Less: revenue recognized from beginning deferred revenue |     |     |      (126,440 | ) |     |       |          (357,059 | ) |
| Ending balance                                           |     | $   |        59,960 |   |     | $     |           126,440 |   |

As of June 30, 2024 and December 31, 2023, the Company had deferred revenue of US$59,960 and US$126,440, respectively, among which, US$59,960 is expected to be recognized as revenue during the twelve months ended June 30, 2025 and US$126,440 was recognized as revenue during the six months ended June 30, 2024.

Cost of revenues

Cost of revenues consist primarily of costs to run the advertisement serving services. These costs include cost to acquire advertisement media sources, advertisement data sources and advertisement related technology features.

| F-13 |

Operating expenses

The Company classifies its operating expenses into four categories and allocates overhead such as information technology infrastructure