Company: KNRX
Filing Date: 2025-03-05
Form Type: F-1/A
Source: 0001493152-25-009104
Chunk: 242

Company: KNOREX LTD.
Filing Date: 2025-03-05
Form: F-1/A
Chunk 242
---
 policies

The accompanying consolidated financial
statements have been prepared assuming the Company will continue as a going concern, which contemplates, among other things, the
realization of assets and satisfaction of liabilities in the normal course of business. The Company had a working capital deficit of
approximately US$1.0 million as of December 31, 2023. This raises substantial doubt about the Company’s ability to continue as
a going concern.

To sustain its ability to support the Company’s operating activities,
the Company considered supplementing its sources of funding through the following:

| ● | Equity                                                                     
 financing through private placements or initial public offerings;          |
| ● | Debt                                                                       
 financing through issuance of convertible notes; and                       |
| ● | Other                                                                      
 available sources of financing from banks or other financial institutions. |

Management has commenced a strategy to raise debt
and equity. However, there can be no certainty that these additional financings will be available on acceptable terms or at all. If management
is unable to execute this plan, there will likely be a material adverse effect on the Company’s business. All these factors
raise substantial doubt about the ability of the Company to continue as a going concern.

The consolidated financial statements do not include
any adjustments that might be necessary if the Company is unable to continue as a going concern.

Basis of presentation

The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for information pursuant to the rules and regulations of the Securities Exchange Commission (“SEC”).

Principles of consolidation

The consolidated financial statements include the financial statements of the Company and its subsidiaries. All transactions and balances among the Company and its subsidiaries have been eliminated upon consolidation.

| F-36 |

A subsidiary is an entity in which the Company, directly or indirectly, controls more than one half of the voting power; or has the power to govern the financial and operating policies, to appoint or remove the majority of the members of the board of directors, or to cast a majority of votes at the meeting of directors.

Non-controlling interests

For the Company’s non-wholly owned subsidiaries, a non-controlling interest is recognized to reflect the portion of equity that is not attributable, directly or indirectly, to the Company. The cumulative results of operations attributable to non-controlling interests are also recorded as non-controlling interests in the Company’s consolidated balance sheets and consolidated statements of operations and comprehensive loss. Cash flows related to transactions with non-controlling interests are