Company: KNRX
Filing Date: 2025-09-22
Form Type: F-1/A
Source: 0001493152-25-014499
Chunk: 79

Company: KNOREX LTD.
Filing Date: 2025-09-22
Form: F-1/A
Chunk 79
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extending its benefits to an even broader array of customers.

Our revenue increased by 24.0% from US$8.7 million for the year ended December 31, 2023, to US$10.8 million for the year ended December 31, 2024, primarily due to increased adoption of our platform given the strong demand from our new and existing customers to pursue automation and scaling efficiency. Our gross profit increased by 40.0% from US$3.2 million for the year ended December 31, 2023 to US$4.5 million for the year ended December 31, 2024. Our net loss decreased by 26.1% from US$8.0 million for the year ended December 31, 2023 to US$5.9 million for the year ended December 31, 2024, primarily due to increases in revenue and decreases in operating expenses.

Subsequent to December 31,
2024, we experienced a material reduction in revenue beginning in February 2025 in connection with our largest customer. The loss of
volume was due to the impact of new U.S. import tariffs on one of this customer’s clients rather than customer dissatisfaction.
This led to that client to cut its marketing spend, thereby reducing the business our largest customer conducted with us. As a result,
our revenue for the six-month period in 2025 has declined by approximately 50% compared to the same period in 2024. We are working closely
with our largest customer to expand engagement across their other clients and actively pursuing new ICP-matching customers and revenue
sources. Concentrating on ICP-matching customers reduces costs and improves operational efficiency through better forecasting and planning.
However, there can be no assurance that these efforts will offset the loss of business in the near term.

Key Factors Affecting Our Results of Operations

Our results of operations have been, and are expected to continue to be, affected by various factors, which primarily include the following:

Our Ability to Create Value for Our Customers and Generate Revenue

Creating value for our customers and generate recurring revenues from them is driven by our strong focus and experience in empowering data and technology. Our ability to provide access and aggregate data from different sources from the data marketplace, different devices and across heterogeneous channels and platforms, to enable marketers through our AI capabilities to automate and effectively harness increasingly complex, disparate data in real-time to deliver impactful advertising experience to the desired target audience segments via the right ad channels, ultimately to maximize