Company: KNRX
Filing Date: 2025-09-22
Form Type: F-1/A
Source: 0001493152-25-014499
Chunk: 44

Company: KNOREX LTD.
Filing Date: 2025-09-22
Form: F-1/A
Chunk 44
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 exposes us to the effects of fluctuations in currency exchange rates. We earn revenue and make payments denominated mainly in U.S.
dollars, and in Asia Pacific countries’ local currencies such as Singapore dollars, Malaysian ringgit, Indian rupees, Vietnamese
dong, among other currencies. Fluctuations in the exchange rates between the various currencies that we use could result in expenses
being higher and revenue being lower than would be the case if exchange rates were stable. We cannot assure you that movements in foreign
currency exchange rates will not have a material adverse effect on our results of operations in future periods. We do not generally enter
into hedging contracts to limit our exposure to fluctuations in the value of the currencies that our businesses use.

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Changes in taxation rates, audit regulations, investigations and tax proceedings could have a material adverse effect on our financial condition and results of operations.

We are subject to direct and indirect taxes in mainly the U.S., Singapore, Vietnam, India, and Malaysia for the operating and holding companies. We endeavor to be fully compliant with and provide for all known taxes in each tax jurisdiction in which we operate and have presence. The level of provision for tax is subject to our interpretation of applicable tax laws in the jurisdictions in which we file. We will seek to run the Company in the manner that the Group remains tax resident in Singapore. We have taken and will continue to take tax positions based on our interpretation of tax laws, but tax accounting often involves complex matters and judgment is required in determining our future regional business partnerships and provision for direct and indirect tax liabilities. In all best efforts, we operate and strive to comply with all applicable tax laws, nevertheless, there can be variation and tax authority may have adopted a different interpretation of the law and assess us with differently.

Based on historical, tax authority has not disagreed, but may in the future disagree, with our judgments. We assess regularly based on tax authority guidance and follow closely with tax updates from the authority to be aligned with the likely outcomes of tax assessments, reporting and if any audits to determine the appropriateness of our tax liabilities. Conversely, our effective tax rate in the future could be adversely affected by changes in the mix of earnings in new countries with differing statutory tax rates, changes in the valuation of deferred tax assets and liabilities and changes in tax laws. Tax rates in the new jurisdictions in which we would operate may change because of macroeconomic, political or other factors. Recent increases in the country and corporate tax rates in more and more regional jurisdictions in which we