Company: KNRX
Filing Date: 2025-08-21
Form Type: F-1/A
Source: 0001641172-25-025066
Chunk: 93

Company: KNOREX LTD.
Filing Date: 2025-08-21
Form: F-1/A
Chunk 93
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 bank loans of US$0.5 million and payments of short-term loan – third parties of approximately US$0.2 million.

Net cash provided by financing activities was US$7.8 million for the year ended December 31, 2023, which was mainly attributable to the issuance of ordinary shares of US$8.2 million and the proceeds from exercise of warrants of US$0.5 million and offset by the repayments of long-term bank loans of US$0.5 million and payments of deferred offering costs of US$0.4 million.

Capital Expenditures

We made capital expenditures of approximately US$13,000 and US$2,000 for the year ended December 31, 2024 and 2023, respectively. In these periods, our capital expenditures were mainly used for the purchase of office equipment.

We plan to fund our future capital expenditures with our existing cash balance and proceeds from this offering. We will continue to make capital expenditures to meet the expected growth of our business.

Internal Control Over Financial Reporting

Prior to this offering, we were a private company with limited accounting personnel and other resources with which to address our internal control over financial reporting. Our management has not completed an assessment of the effectiveness of our internal control over financial reporting and our independent registered public accounting firm has not conducted an audit of our internal control over financial reporting. In the course of auditing our consolidated financial statements as of and for each of the two years ended December 31, 2024 and 2023, we and our independent registered public accounting firm identified four material weaknesses in our internal control over financial reporting. As defined in the standards established by the PCAOB, a “material weakness” is a deficiency, or combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the annual or interim financial statements will not be prevented or detected on a timely basis.

The
material weaknesses identified relate to (i) control limitations associated with the verification of impression data from third-party
platforms, which these platforms do not provide independent assurance reports, such as SOC audits, and industry-wide, there is limited
ability to verify such data independently. This reliance
presents challenges in ensuring full transparency and control over certain service records, resulting in the inability to independently
verify the accuracy of service records for revenue recognition.; (ii)
the lack of effective formal policies and procedures to establish risk assessment processes and ensure consistent control application
in accordance with the COSO Framework; (