Company: KNRX
Filing Date: 2025-09-22
Form Type: F-1/A
Source: 0001493152-25-014499
Chunk: 89

Company: KNOREX LTD.
Filing Date: 2025-09-22
Form: F-1/A
Chunk 89
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31, 2024, primarily due to the decrease in 
 our long-term bank loans and convertible notes.                                                             |

| ● | Amortization                                                                                                                 
 of discount on debt instrument. Our amortization of discount on debt instrument increased by 0.5% from approximately         
 US$28,000 for the year ended December 31, 2023 to approximately US$29,000 for the year ended December 31, 2024,              
 primarily due to the decrease in the fair value of warrants issued in connection with our debt instrument which we amortized 
 the discount over the term of our debt instrument.                                                                           |

| ● | Foreign                                                                                                                        
 exchange gain (loss), net. Our foreign exchange gain, net was approximately US$47,000 for the year ended December 31, 2023 and 
 foreign exchange loss, net was approximately (US$53,000) for the year ended December 31, 2024. The increase in loss            
 which was primarily a result of the exchange rate fluctuation between the dates of the transaction and the balance sheet date  
 with transactions denominated in currencies other than our or our subsidiaries’ functional currency.                           |

| ● | Other                                                                                                        
 income, net. Our other income decreased from approximately US$143,000 for the year ended December 31, 2023   
 to approximately US$82,000 for the year ended December 31, 2024, primarily due to the decrease in government 
 grant that we received.                                                                                      |

| 49 |

Provision for income taxes.Our provision for income taxes increased from US$33,239 for the year ended December 31, 2023 to approximately US$58,223 for the year ended December 31, 2024, resulted from the increase in our net income before tax from our profitable subsidiaries in 2024 as compared to the same period in 2023.

Net loss. As a result of the foregoing, our net loss was US$5.9 million for the year ended December 31, 2024 and US$8.0 million for the year ended December 31, 2023.

Liquidity and Capital Resources

Our primary source of liquidity historically has been cash generated from our business operations, bank loans, proceeds from conversion price of convertible notes upon conversion into its ordinary shares, and equity financing, which have historically been sufficient to meet our working capital and capital expenditure requirements.

In March 2023, we completed our equity financing through the issuance of shares