Company: KNRX
Filing Date: 2025-01-15
Form Type: F-1/A
Source: 0001493152-25-002249
Chunk: 96

Company: KNOREX LTD.
Filing Date: 2025-01-15
Form: F-1/A
Chunk 96
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$44,000 for the year ended December 31, 2022 to approximately US$33,000 for the year ended December 31, 2023, resulted from the decrease in our net income before tax from our profitable subsidiaries in 2023 as compared to the same period in 2022.

Net loss. As a result of the foregoing, our net loss was US$8.0 million for the year ended December 31, 2023 and US$6.7 million for the year ended December 31, 2022.

Liquidity and Capital Resources

Our primary source of liquidity historically has been cash generated from our business operations, bank loans, proceeds from conversion price of convertible notes upon conversion into its ordinary shares, and equity financing, which have historically been sufficient to meet our working capital and capital expenditure requirements.

In March 2023, we completed our equity financing through the issuance of shares for approximately US$3.7 million. In November 2023, we completed additional equity financing through the issuance of shares for approximately US$4.5 million. Between November 2023 and March 2024, we received a total consideration of approximately US$1.8 million from the exercise of warrants to subscribe for our ordinary shares. In April 2024, we completed our convertible notes offering and raised approximately US$1.6 million. Between July and January 2025, we further raised US$2.5 million from short-term loans from third parties and related parties. In January 2025, we received a total consideration of approximately US$0.2 million from the exercise of warrants to subscribe for our ordinary shares, where the balance payment of US$196,507.63 for 159,713 Class A Ordinary Shares is expected to be received no later than January 24, 2025. We also expect to use net proceeds from this offering to support our working capital and capital expenditure requirements.

As
of the date of this prospectus, our available cash resources amounted to approximately US$0.7 million. The minimum period of time
that we expect to be able to conduct our planned operations using only currently available cash resources is approximately three months
without additional cash raised from financing.

We had a working
capital deficit of approximately US$2.6 million as of June 30, 2024. This raises substantial doubt about our ability to continue
as a going concern.

To sustain our
ability to support our operating activities, we considered supplementing our sources of