Company: KNRX
Filing Date: 2025-03-05
Form Type: F-1/A
Source: 0001493152-25-009104
Chunk: 98

Company: KNOREX LTD.
Filing Date: 2025-03-05
Form: F-1/A
Chunk 98
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 these factors raise substantial doubt about the ability of us to continue as a going concern.

The consolidated
financial statements do not include any adjustments that might be necessary if we are unable to continue as a going concern.

Further to our ability
to support our operating activities from the potential equity and debt financing as discussed above, the ability to support our operating
activities is also affected by the timeliness of receiving the accounts receivable balances from our customers. Our credit term with
our customers is typically 30 days. However, our days sales outstanding as of June 30, 2024 and June 30, 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; (b) collection delays due to discussion with clients, particularly
with new clients adjusting to our payment schedules or new services; and (c) stretched resources resulting in delay in invoicing and
collection. We are actively addressing these issues by improving invoicing practices, having dedicated members for processing, 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 Six Months Ended June 30, |            |   |     |      |            |   |
|                                                     |     |                              2024 |            |   |     | 2023 |            |   |
|                                                     |     |                               US$ |            |   |     |  US$ |            |   |
| Net cash used in operating activities               |     |                                   | (3,439,549 | ) |     |      | (2,784,709 | ) |
| Net cash used in investing activities               |     |                                   |   (445,057 | ) |     |      |   (443,385 | ) |
| Net cash provided by financing activities           |     |                                   |  2,798,422 |   |     |      |  3,424,924 |   |
| Effect of exchange rate changes                     |     |                                   |    (70,582 | ) |     |      |   (239,704 | ) |
| Net change in cash and cash equivalents             |     |                                   | (1,156,766 | ) |     |      |    (42,874 | ) |
| Cash and cash