Company: KNRX
Filing Date: 2025-01-15
Form Type: F-1/A
Source: 0001493152-25-002249
Chunk: 215

Company: KNOREX LTD.
Filing Date: 2025-01-15
Form: F-1/A
Chunk 215
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 Company’s staff upon execution. Refunds will be prorated and negotiated with the customer. Historically, the Company has not experienced any significant refund.

The Company’s accounts receivable, consist primarily of receivables related to platform subscription fee, providing platform services, managed activations and professional services, for which the Company’s contracted performance obligations have been satisfied, the amount has been billed and the Company has an unconditional right to payment. The Company typically bills customers monthly based on actual delivery. The payment terms vary, mainly with terms of 30 days or less.

The Company applies the practical expedient in ASC 606 and does not adjust the promised amount of consideration for the effects of a significant financing component if the Company expects, at contract inception, that the period between when the Company transfers a promised good or service to a customer and when the customer pays for that good or service will be one year or less. As of June 30, 2024 and December 31, 2023, the Company did not have any contract assets.

The Company recognized advance payments from its customer prior to revenue recognition as deferred revenue until the revenue recognition performance obligations are met.

The following table presents the Company’s deferred revenue balances, net increase in current period of deferred revenue, and revenue recognized from beginning deferred revenue therein:

|                                                          |     |     | June 30, 2024 |   |     |       | December 31, 2023 |   |
|:---------------------------------------------------------|:----|:----|--------------:|:--|:----|:------|------------------:|:--|
|                                                          |     | US$ |               |   |     | US$US |                   |   |
| Beginning balance                                        |     | $   |       126,440 |   |     | $     |           357,059 |   |
| Add: net increase in current period of deferred revenue  |     |     |        59,960 |   |     |       |           126,440 |   |
| Less: revenue recognized from beginning deferred revenue |     |     |      (126,440 | ) |     |       |          (357,059 | ) |
| Ending balance                                           |     | $   |        59,960 |   |     | $     |           126,440 |   |

As of June 30, 2024 and December 31, 2023, the Company had deferred revenue of US$59,960 and US$126