Company: KNRX
Filing Date: 2025-03-05
Form Type: F-1/A
Source: 0001493152-25-009104
Chunk: 24

Company: KNOREX LTD.
Filing Date: 2025-03-05
Form: F-1/A
Chunk 24
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 our
XPO platform under our usage-based pricing model; the client retains control over when and to what extent it uses the XPO platform. As
a result, this introduces a level of unpredictability in our ability to add new customers and promptly generate revenue, which has the
potential to adversely impact or restrict the predictability of our growth. Further, we have encountered and may continue to face disputes
with marketers regarding billing matters related to our services, the operation of XPO, and the terms of our agreements. In cases
where we are unable to recover payments or make necessary adjustments to customer bills, we may incur write-offs for bad debt or revenue
reductions. These events could significantly impact our operating results during the periods in which such write-offs or revenue adjustments
occur. Moreover, there is a possibility that bad debt may exceed reserves set aside for such contingencies, resulting in an increase
in our exposure to bad debt over time. Any escalation in write-offs for bad debt or reductions in revenue due to adjustments could have
a substantial negative effect on our business, financial condition, and operating results.

In addition, we are generally
contractually required to pay suppliers of advertising inventory and data within a negotiated period, regardless of whether our customers
pay us on time, or at all. While we attempt to negotiate long payment periods with our suppliers and shorter periods from our customers,
we are not always successful. As a result, our accounts payable with certain suppliers may be due in shorter cycles than our accounts
receivables with certain customers, requiring us to remit payments from our own funds.

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Such payment process will increasingly consume working capital if we continue to be successful in growing our business. In addition, like many companies in the advertising technology industry, advertising agencies are often slow to remit payment to us, which may cause us to be unable to borrow against our accounts receivables on commercially acceptable terms, our working capital availability could be reduced, and consequently our operating results and financial condition would be adversely impacted. Additionally, we may need to rely on borrowings to partially fund our working capital requirements.

We cannot assure you that our business will generate sufficient cash flow from operations or that future borrowings will be available to us in an amount sufficient to fund our working capital needs, if at all. If our cash flows and borrowings are insufficient to fund our working capital requirements, we may not be able to grow at the rate we currently expect or at all. In addition, in the absence of