Company: KNRX
Filing Date: 2025-09-22
Form Type: F-1/A
Source: 0001493152-25-014499
Chunk: 46

Company: KNOREX LTD.
Filing Date: 2025-09-22
Form: F-1/A
Chunk 46
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 or other similar restrictions are imposed by a government to influence the economy, it may lead to a slowing of economic growth.

Our subsidiary is subject to the laws of Singapore, which differ in certain material respects from the laws of the United States.

Our subsidiary in Singapore, Knorex SG, is required to comply with the laws of Singapore, certain of which are capable of extra-territorial application. Our Singapore subsidiary is required to comply with certain provisions of the Securities and Futures Act 2001 of Singapore, which prohibit certain forms of market conduct and information disclosures, and impose criminal and civil penalties on corporations, directors and officers in respect of any breach of such provisions.

We face uncertainties in the change of the regulatory landscape concerning data protection in Malaysia in light of the undergoing potential amendments to the Personal Data Protection Act 2010.

The proposed amendments
to the Personal Data Protection Act 2010 (PDPA 2010) seek to intensify penalties for breaches of data protection regulations in Malaysia
and to include elevating the current government department, the Personal Data Protection Department (JPDP), to an independent statutory
commission. This elevation intends to bolster JPDP’s enforcement capabilities and autonomy, providing necessary resources and authority
to effectively regulate data protection and enforce PDPA provisions.

The proposed amendments are expected to encompass provisions mandating increased fines for cyber-attackers. Additionally, it is proposed to make it obligatory for data users to appoint a data protection officer and report any instances of data leakage to the Ministry’s Personal Data Protection Department.

These proposed amendments to the PDPA could significantly impact operations and compliance requirements for businesses operating in the digital marketing sphere, requiring adaptations to data handling practices, operational strategies, compliance protocols, resource allocation and risk mitigation to ensure regulatory adherence.

Information technology failures and data security breaches would have an adverse effect on our business, financial condition and results of operations.

The integrity and security of our information technology infrastructure are pivotal for the seamless operation of our business. Should there be any failures or breaches in our information technology systems, it could substantially impact our business, financial stability and operational outcomes.

Our operations heavily depend on the effectiveness of our information technology and communication systems. Any disruption or damage to these systems, whether due to power outages, technical failures, cyber threats, natural disasters, human errors, or faults in our backup systems and external cloud services, poses a considerable risk to our business continuity.

A significant malfunction in these crucial systems could not only harm our reputation but also impede our ability to conduct business efficiently. It might affect our