Company: KNRX
Filing Date: 2025-09-30
Form Type: 424B4
Source: 0001493152-25-016175
Chunk: 219

Company: KNOREX LTD.
Filing Date: 2025-09-30
Form: 424B4
Chunk 219
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 February 2025), and two convertible notes have a maturity date to be due in May 2025 (the “D-2 Notes”). The D-2 Notes shall bear interest at 8% per annum until such balance to be converted into the Company’s Class A Ordinary Shares. The conversion of the D-2 Notes will be at 70% of the proposed initial public offering (“IPO”) price or next round of financing. If IPO does not occur on or before the maturity date, the Company shall redeem the Note plus all accrued and unpaid interest in full, where the interest shall accrue at a rate of 20% instead of 8% per annum. The Company determined the D-2 Notes are within the scope of ASC 480 as the total number of shares to be issued are not known at inception until the issuance price of the next round of equity financing would take place. The Company also determined that the embedded conversions in the D-2 Notes meets the scope exception to be considered indexed to a reporting’s own stock based on the two-step approach in accordance with ASC 815-40-15 and does not require to be separately accounted for as a derivative. As a result, the Company classified the D-2 Notes as a debt instrument in its entirety.

In February 2025, the Company signed the Amendment to the convertible note agreements for the aforementioned nine convertible notes to extend the maturity date to be due in June 2026. The interest rate increased from 8% per annum to 12% per annum beginning in February 2025. The conversion price of the D-2 Notes also amended to be 50% (amended from 70%) of the IPO price or next round of financing.

As of December 31, 2024 and 2023, convertible notes balance amounted to US$1,900,965 and US$0, respectively. Amortization of discount on debt instruments in connection with the convertible notes for the years ended December 31, 2024 and 2023 amounted to US$28,519 and US$28,376, respectively.

Interest expenses in connection with the forementioned loans and convertible notes for the years ended December 31, 2024 and 2023 amounted to US$319,076 and US$136,437, respectively.

Note 8 – Other payables and accrued liabilities

Other payables and accrued liabilities consist of the following:

|                                                                                    |     |     |          As 
 of December 
    31,