Company: KNRX
Filing Date: 2025-01-15
Form Type: F-1/A
Source: 0001493152-25-002249
Chunk: 266

Company: KNOREX LTD.
Filing Date: 2025-01-15
Form: F-1/A
Chunk 266
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1,592,909 |   |
| Less: Discount on debt instrument         |           |                                                        |            |     |                                                  |   |     |                                                        |                       |     |     (51,573 | ) |     |     |     (79,219 | ) |
| Less: Current portion                     |           |                                                        |            |     |                                                  |   |     |                                                        |                       |     |    (496,689 | ) |     |     |    (475,880 | ) |
| Total                                     |           |                                                        |            |     |                                                  |   |     |                                                        |                       | $   |     585,596 |   |     | $   |   1,037,810 |   |

Convertible notes

The Company entered into a series of convertible note agreements with a group of investors and received approximately US$7.7 million (S$10,300,083) aggregate principal amount convertible promissory note over a period from April 2022 to July 20, 2022 (the “C-D Notes”). The C-D Notes shall bear interest at 5% per annum until such balance to be converted into the Company’s Class A Ordinary Shares. The C-D Notes have a mandatory automatic conversion feature, for which, upon the occurrence of the qualified equity financing, the C-D Notes plus accrued unpaid interest will be automatically converted into Class A Ordinary Shares at 70% issuance price or the C-D Notes will have a maturity conversion option using the Class A Ordinary Shares issuance price after 1 year from the issuance date of the C-D Notes. The investors of the C-D Notes have no redeemable option to redeem the notes.

| F-47 |

The Company determined the C-D notes are within the scope of ASC 480 as the total number of shares to be issued are not known at inception until the issuance price of the next round of equity financing would take place. The Company also determined that the embedded conversions in the C-D notes meets the scope exception to be considered indexed to a reporting’s own stock based on the two-step approach in accordance with ASC 815-40-15 and does not require to be separately accounted for as a derivative. As a result, the Company classified the C-D Notes as a debt instrument in its entirety. As of December 31, 2023 and 2022, convertible notes balance amounted to US$0 and US$7,735,209, respectively.

In March 2023, the Company converted the full balance