Company: KNRX
Filing Date: 2025-09-30
Form Type: 424B4
Source: 0001493152-25-016175
Chunk: 224

Company: KNOREX LTD.
Filing Date: 2025-09-30
Form: 424B4
Chunk 224
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 financing. The Company estimates that the fair value of the warrants on the date of grant is US$9,063,846, using Black-Scholes Model. The fair value of the warrants is estimated using the following assumptions: (1) expected volatility of 63.11% using comparable companies, (2) risk-free interest rate of 5.03%, (3) expected life of 2 years, (4) exercise price of US$1.58 and (5) stock price of US$1.58.

The Company then applied the relative fair value of the warrants of US$2,455,068 and US$3,006,167 into capital and recognized the same value as a deemed dividend at the time of issuance, respectively.

On April 1, 2024, the Company issued a total of 251,608 warrants to the Company’s Class A Ordinary Shares investors in connection Class A Ordinary Share equity financing. The Company estimates that the fair value of the warrants on the date of grant is US$277,609, using Black-Scholes Model. The fair value of the warrants is estimated using the following assumptions: (1) expected volatility of 56.83% using comparable companies, (2) risk-free interest rate of 4.72%, (3) expected life of 2 years, (4) exercise price of US$3.33 (70% of stock price), and (5) stock price of US$4.75 (the midpoint of the estimated proposed IPO price range of $4.00 and $5.50 per share).

In November 2023, a total of 317,250 warrants were exercised to subscribe for the Company’s Class A Ordinary Shares for a total consideration of approximately US$0.5 million.

In March 2024, a total of 810,425 warrants were exercised to subscribe for the Company’s Class A Ordinary Shares for a total consideration of approximately US$1.3 million.

On October 9, 2024, one of the Company’s warrant holders forfeited its exercise rights and cancelled its existing 67,850 warrants.

The summary of warrants activity is as follows:

|                   |     | Warrants    
 Outstanding |           |   |     | Warrants    
 Exercisable |           |   |     | Class A  
 Ordinary 
 Shares   
 Issuable |           |   |     | Weighted 
 Average  
 Exercise 
 Price    
 US$      |      |     | Average     
 Remaining   
 Contractual