Company: KNRX
Filing Date: 2025-09-02
Form Type: F-1/A
Source: 0001493152-25-012564
Chunk: 19

Company: KNOREX LTD.
Filing Date: 2025-09-02
Form: F-1/A
Chunk 19
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 or do business with us at all. The loss of business from any significant
customer, and our failure to replace that volume, could have a material adverse impact on our revenue.

We expect the reduction in business from our largest customer, in February 2025, to have a material adverse impact on our revenue, until we replace this volume, and there can be no assurance we will do so on acceptable terms.

We are dependent on a
small number of customers for a substantial portion of our revenue. Our largest customer, which accounted for 73.3% and 40.1% of our
total revenue for the years ended December 31, 2024, and 2023, respectively, beginning in February 2025, materially reduced its business
with us after one of their major clients was adversely impacted by new or increased U.S. import tariffs, which led that client to cut
its marketing spend, thereby reducing the business our largest customer conducted with us. This reduction has resulted in approximately
50% decline in our revenue for the six-month period ended in 2025 compared to the same period in 2024. We expect a material adverse impact
on revenue until we replace this volume, and there can be no assurances we will do so on acceptable terms.

While we are working
to expand engagement with other clients of our largest customer and actively pursuing new customers and revenue sources, there can be
no assurance that these efforts will be able to offset the loss of business. If we are unable to replace the revenue lost from this customer
or any other significant customer, our financial condition, results of operations, and prospects could be materially and adversely affected.

We are highly dependent on having continuous connectivity and access to advertising inventory, data, and certain technology services to provide our platform and services to customers. Any disruption, curtailment or termination to these resources can adversely impact our revenue and growth.

We depend on various media,
data, technology, software, products, and services from third parties or available as open source, including critical features
and functionality of our platform, API technology, payment processing, payroll, and other professional services. For example,
for location-based targeting, we use a combination of third-party data and geolocation services to serve advertisements relevant to their
geographic area. Identifying, negotiating, complying with and integrating with third-party terms and technology are complex, costly and
time-consuming matters.

We must maintain consistent access to advertising inventory, data and certain technology services. Our success depends on our ability