Company: KNRX
Filing Date: 2025-03-05
Form Type: F-1/A
Source: 0001493152-25-009104
Chunk: 88

Company: KNOREX LTD.
Filing Date: 2025-03-05
Form: F-1/A
Chunk 88
---
 be provided only when there is a bug or error in the XPO system causing undeliverable impressions during the advertising/execution process. Refunds will be prorated and applied to the remaining contracted period from the time the undeliverable impressions were detected. Historically, we have not experienced any significant refund.

| 46 |

(3) Managed activations and professional services

Performance obligation satisfied over a period of time

We provide managed activations and professional services, including but not limited to, advertising measurement, campaign setup and monitoring, conversion tracking set up, analytics reporting, creative design services, digital marketing consultation, custom reporting, campaign strategy and optimization consultations. These services are recognized over the service period since our customer simultaneously receives and consumes the benefits provided by our performance. Refunds will be provided on any occurrence of mistake made by our staff upon execution. Refund will be prorated and negotiated with our customer. Historically, we have not experienced any significant refund.

Our accounts receivable, consist primarily of receivables related to platform subscription fee, providing platform services, managed activations and professional services, for which our contracted performance obligations have been satisfied, the amount has been billed and we have an unconditional right to payment. We typically bill customers monthly based on actual delivery. The payment terms vary, mainly with terms of 30 days or less.

We apply the practical expedient in ASC 606 and do not adjust the promised amount of consideration for the effects of a significant financing component if we expect, at contract inception, that the period between when we transfer a promised good or service to a customer and when the customer pays for that good or service will be one year or less. As of June 30, 2024 and December 31, 2023, we did not have any contract assets.

Cost of revenues

Cost of revenues consist primarily of costs to run the advertisement serving services . These costs include cost to acquireadvertisement media sources, advertisement data sources and advertisement related technology features.

Accounts receivables, net

Accounts receivables are recorded at the invoiced amount less an allowance for credit losses and do not bear interest, which are due after 30 days. Management reviews the adequacy of the allowance for credit losses on an ongoing basis, using historical collection trends and aging of receivables. Management also periodically evaluates individual customer’s financial condition, credit history and the current economic conditions to adjust the allowance when it is considered necessary. Account balances are charged off against the allowance after all means of collection have been exhausted and