Company: KNRX
Filing Date: 2025-06-12
Form Type: F-1/A
Source: 0001641172-25-014801
Chunk: 92

Company: KNOREX LTD.
Filing Date: 2025-06-12
Form: F-1/A
Chunk 92
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in accordance with the COSO Framework; (iii) inadequate supervision and review over recordkeeping, leading to misstatements of some items
in the income and balance sheet statements; and (iv) a lack of accounting personnel adequately trained in U.S. GAAP and SEC reporting.

We
have taken initiatives to improve our internal control over financial reporting to address the underlying causes of these material weaknesses,
including (i) hiring more qualified accounting staff and strengthening our supervision of recordkeeping; (ii) providing our relevant
finance staff with appropriate training regarding requirements of U.S. GAAP and hiring additional personnel who are equipped with relevant
U.S. GAAP and SEC reporting experience; (iii) set up an internal audit function as well as engaging an external consulting firm to assist
us with assessing our Sarbanes-Oxley compliance readiness and improving overall internal controls; and (vi) appointed our board members
with the relevant experiences to govern and oversee the audit and finance functions.

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However, we cannot assure you that we will complete the implementation of these measures in a timely manner. See “Risk Factors – Risks Relating to Our Business and Industry – We have identified four and three material weaknesses in our internal control over financial reporting as of December 31, 2024 and December 31, 2023, respectively. If we fail to implement and maintain an effective system of internal control over financial reporting, we may be unable to accurately report our results of operations, meet our reporting obligations or prevent fraud, and investor confidence and the market price of our shares may be materially and adversely affected.” In addition, our shares may not be able to remain listed on the NYSE American Market if we are unable to meet the requirements of Section 404 such as that we include a report of management on our internal control over financial reporting in our annual report on Form 20-F beginning with our annual report beginning with our second annual report on Form 20-F. In addition, once we cease to be an “emerging growth company” as such term is defined under the JOBS Act, our independent registered public accounting firm must attest to and report on the effectiveness of our internal control over financial reporting.

We will be subject to the requirement that we maintain internal controls and that management perform periodic evaluation of the effectiveness of the internal controls. Effective internal control over financial reporting is important to prevent fraud. As a result, our business, financial condition, results of operations and prospects, as well as the market for and trading price of our Class