Company: KNRX
Filing Date: 2025-03-05
Form Type: F-1/A
Source: 0001493152-25-009104
Chunk: 87

Company: KNOREX LTD.
Filing Date: 2025-03-05
Form: F-1/A
Chunk 87
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 or has the power to govern the financial and operating policies, to appoint or remove the majority of the members of the board of directors, or to cast a majority of votes at the meeting of directors.

Revenue Recognition

Our revenues are derived from providing advertising management and execution software application and advertising services to our customers including brand advertisers and media agencies.

We recognize revenues when our customer obtains control of promised services in an amount that reflects the consideration that we expect to receive in exchange for those services. We recognize revenue in accordance with ASC Topic 606, Revenue from contracts with customers (“ASC 606”) and determines revenue recognition through the following steps: (i) identify the contract with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, including variable consideration to the extent that it is probable that a significant future reversal will not occur, (iv) allocate the transaction price to the performance obligations in the contract, and (v) recognize revenue when a performance obligation is satisfied.

For arrangements with multiple performance obligations, which represent promises within an arrangement that are capable of being distinct and are separately identifiable, we allocate the contract consideration to all distinct performance obligations based on their relative standalone selling price, which is typically estimated based on observable transactions when these services are sold on a standalone basis.

Revenue recognition policies for each type of revenue stream are as follows:

(1) Platform subscription fee

Performance obligation satisfied over a period of time

We provide a new category of online advertising software called Advertising Management and Execution (AMX) system, which is a digital advertising platform with software applications that empower marketers with on-demand access and usage throughout the contract period. We charge a monthly platform subscription fee to our customer. Subscription fee revenues are recognized over the subscription period. Our contracts do not generally contain refund provisions for fees earned related to the incurred subscription period. A refund will be provided only when there is a change in the platform due to new feature that renders the system unusable to our customer for subscription period that has not begun. Historically, we have not experienced any such refund.

(2) Platform services

Performance obligation satisfied over a period of time

We provide a complete package of online advertisement solutions, which includes the buying of advertisement placements, audience data, tracking and measurement, and other tech features. The platform services are recognized when impressions are delivered. We recognize revenue from the display of impression-based advertisements over the contracted period in which the impressions are delivered. Impressions are considered delivered when an advertisement is displayed to users. Refunds will