Company: KNRX
Filing Date: 2025-09-30
Form Type: 424B4
Source: 0001493152-25-016175
Chunk: 89

Company: KNOREX LTD.
Filing Date: 2025-09-30
Form: 424B4
Chunk 89
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 closely with our largest customer to expand engagement across
their other clients and actively pursuing new ICP-matching customers and revenue sources. Concentrating on ICP-matching customers reduces
costs and improves operational efficiency through better forecasting and planning. However, there can be no assurance that these efforts
will offset the loss of business in the near term.

Cost of revenue.Our cost of revenue increased by 14.6% from US$5.5 million for the year ended December 31, 2023 to US$6.3 million for the year ended December 31, 2024, primarily due to the increase in purchase and usage of advertisement media sources, advertisement data sources and advertisement related technology features. The increase is consistent with the revenue increase of our platform services.

Gross profit. As a result of the foregoing, we recorded a gross profit of US$4.5 million for the year ended December 31, 2024, as compared to US$3.2 million for the year ended December 31, 2023.

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Operating expenses.Our total operating expenses decreased by 10.3% from US$11.2 million for the year ended December 31, 2023 to US$10.0 million for the year ended December 31, 2024, primarily due to the decrease of US$0.8 million in platform operations expenses, the decrease of US$0.3 million in sales and marketing expenses and the decrease of approximately US$0.5 million in general and administrative expenses, offset by the increase of approximately US$0.6 million in technology and development expenses as we optimize our spending.

| ● | Platform                                                                                                                             
 operations expenses. Our platform operations expenses decreased by 23.3% from US$3.6 million for the year ended December 31,         
 2023 to US$2.8 million for the year ended December 31, 2024, primarily due to the decrease in infrastructure costs of US$0.5 million 
 as a result of implementing our cost optimization plan. Our platform operation expenses as a percentage of our revenue were 25.5%    
 for the year ended December 31, 2024, as compared with 41.2% for the year ended December 31, 2023.                                   |

| ● | Sales                                                                                                                                 
 and marketing expenses. Our selling expenses decreased by 9.9% from US$3.3 million for the year ended December 31, 2023