Company: KNRX
Filing Date: 2025-01-15
Form Type: F-1/A
Source: 0001493152-25-002249
Chunk: 92

Company: KNOREX LTD.
Filing Date: 2025-01-15
Form: F-1/A
Chunk 92
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.Our cost of revenue increased by 22.6% from US$2.7 million for the six months ended June 30, 2023 to US$3.3 million for the six months ended June 30, 2024, primarily due to the increase in purchase and usage of advertisement media sources, advertisement data sources and advertisement related technology features. The increase is consistent with the revenue increase of our platform services.

Gross profit. As a result of the foregoing, we recorded a gross profit of US$2.2 million for the six months ended June 30, 2024, as compared to US$1.2 million for the six months ended June 30, 2023.

Operating expenses.Our total operating expenses decreased by 6.6% from US$5.4 million for the six months ended June 30, 2023 to US$5.0 million for the six months ended June 30, 2024, primarily due to the decrease of US$0.4 million in platform operations expenses and the decrease of US$0.1 million in sales and marketing expenses, offset by the increase of approximately US$0.1 million in technology and development expenses and the increase of approximately US$0.07 million in general and administrative expenses.

| ● | Platform                                                                                                                               
 operations expenses. Our platform operations expenses decreased by 21.6% from US$1.9 million for the six months ended June 30,         
 2023 to US$1.5 million for the six months ended June 30, 2024, primarily due to the decrease in infrastructure costs of US$0.4 million 
 as a result of implementing our cost optimization plan. Our platform operation expenses as a percentage of our revenue were 27.5%      
 for the six months ended June 30, 2024, as compared with 49.5% for the six months ended June 30, 2023.                                 |
| ● | Sales                                                                                                                                  
 and marketing expenses. Our selling expenses decreased by 7.2% from US$1.6 million for the six months ended June 30, 2023 to           
 US$1.5 million for the six months ended June 30, 2024, primarily due to the decrease in our staff commission and insurance with our    
 sale and marketing personnel of approximately US$0.1 million as we cultivate a hybrid team of in-house and external partners for       
 sales and marketing activities. Our sales and marketing expenses