# EDGAR Filing Document

**Accession Number:** 0001982960
**File Stem:** 0001493152-25-029797
**Filing Date:** 2025-12
**Character Count:** 147187
**Document Hash:** e1ee2a1ca3a176409d5f9a63deade854
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001493152-25-029797.hdr.sgml**: 20251231

**ACCESSION NUMBER**: 0001493152-25-029797

**CONFORMED SUBMISSION TYPE**: 6-K

**PUBLIC DOCUMENT COUNT**: 99

**CONFORMED PERIOD OF REPORT**: 20250630

**FILED AS OF DATE**: 20251231

**DATE AS OF CHANGE**: 20251231

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** KNOREX LTD.
- **CENTRAL INDEX KEY:** 0001982960
- **STANDARD INDUSTRIAL CLASSIFICATION:** SERVICES-COMPUTER PROGRAMMING, DATA PROCESSING, ETC. [7370]
- **ORGANIZATION NAME:** 06 Technology
- **EIN:** 000000000
- **STATE OF INCORPORATION:** E9
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 6-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-42862
- **FILM NUMBER:** 251617584

**BUSINESS ADDRESS:**
- **STREET 1:** 21 MERCHANT ROAD
- **STREET 2:** #04-01
- **CITY:** SINGAPORE
- **STATE:** U0
- **ZIP:** 058267
- **BUSINESS PHONE:** (65) 6956 7483

**MAIL ADDRESS:**
- **STREET 1:** 21 MERCHANT ROAD
- **STREET 2:** #04-01
- **CITY:** SINGAPORE
- **STATE:** U0
- **ZIP:** 058267

?xml version='1.0' encoding='ASCII'?

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, D.C. 20549**

**FORM 6-K**

**REPORT OF FOREIGN PRIVATE ISSUER**

**PURSUANT TO RULE 13a-16 OR 15d-16 UNDER**

**THE SECURITIES EXCHANGE ACT OF 1934**

**For the month of December 2025**

**Commission File Number: 001-42862**

**KNOREX Ltd.**

(Exact name of registrant as specified in its charter)

**21 Merchant Road, #04-01**

**Singapore 058267** 

(Address of Principal Executive Offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F ☒ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Form 40-F ☐

**ExhibitS**

---

| | |
|:---|:---|
| **Exhibit No.** | **Description** |
| Exhibit 99.1 | [UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED JUNE 30, 2025 AND 2024](ex99-1.htm) |
| Exhibit 99.2 | [OPERATING AND FINANCIAL REVIEW AND PROSPECTS IN CONNECTION WITH THE UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED JUNE 30, 2025 AND 2024](ex99-2.htm) |
| Exhibit 99.3 | [Press Release](ex99-3.htm) |
| 101.INS | Inline XBRL Instance Document |
| 101.SCH | Inline XBRL Taxonomy Extension Schema |
| 101.CAL | Inline XBRL Taxonomy Extension Calculation |
| 101.DEF | Inline XBRL Taxonomy Extension Definition |
| 101.LAB | Inline XBRL Taxonomy Extension Label |
| 101.PRE | Inline XBRL Taxonomy Extension Presentation |
| 104 | Cover Page Interactive Data File. (formatted as Inline XBRL and contained in Exhibit 101). |

---

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

---

| | |
|:---|:---|
| **KNOREX Ltd.** | **KNOREX Ltd.** |
| By: | /s/ *Khar Heng Choo* |
| Name: | Khar Heng Choo |
| Title: | Chairman of the Board of Directors <br> and Chief Executive Officer |

---

Date: December 31, 2025

## Exhibit 99.1

?xml version='1.0' encoding='ASCII'?

**E** **xhibit 99.1**

**KNOREX LTD. AND SUBSIDIARIES**

**UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS**

**(Stated in U.S. Dollars)**

---

| | | |
|:---|:---|:---|
|  | June 30, 2025 | December 31, 2024 |
|  | (Unaudited) | |
| ASSETS |  |  |
| CURRENT ASSETS |  |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | $210993 | $824728 |
| &nbsp;&nbsp;&nbsp;Accounts receivable, net | 673528 | 1880941 |
| &nbsp;&nbsp;&nbsp;Other receivables | 153143 | 371271 |
| &nbsp;&nbsp;&nbsp;Other receivables - related party | 37278 |  |
| &nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | 378388 | 399647 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Current Assets | 1453330 | 3476587 |
| NON-CURRENT ASSETS |  |  |
| &nbsp;&nbsp;&nbsp;Property and equipment, net | 15530 | 22866 |
| &nbsp;&nbsp;&nbsp;Operating right-of-use assets | 121807 | 137010 |
| &nbsp;&nbsp;&nbsp;Capitalized software development costs | 1282916 | 1270369 |
| &nbsp;&nbsp;&nbsp;Deferred offering costs | 939089 | 517938 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Assets | $3812672 | $5424770 |
| LIABILITIES AND SHAREHOLDERS' DEFICIT |  |  |
| CURRENT LIABILITIES |  |  |
| &nbsp;&nbsp;&nbsp;Current portion of long-term loans - bank | $415666 | $482454 |
| &nbsp;&nbsp;&nbsp;Short-term loans - third parties | 4910607 | 2219102 |
| &nbsp;&nbsp;&nbsp;Short-term loans - related parties | 379274 | 271441 |
| &nbsp;&nbsp;&nbsp;Accounts payable | 2125237 | 2710891 |
| &nbsp;&nbsp;&nbsp;Other payables and accrued liabilities | 2257484 | 1807263 |
| &nbsp;&nbsp;&nbsp;Other payables - related parties | 71458 | 20111 |
| &nbsp;&nbsp;&nbsp;Deferred revenue | 32268 | 45235 |
| &nbsp;&nbsp;&nbsp;Operating lease liability | 30784 | 28840 |
| &nbsp;&nbsp;&nbsp;Convertible notes | 2221970 | 1900965 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Current Liabilities | 12444748 | 9486302 |
| NON-CURRENT LIABILITIES |  |  |
| &nbsp;&nbsp;&nbsp;Long-term loans - bank, net of current portion | 24296 | 178535 |
| &nbsp;&nbsp;&nbsp;Deferred tax liabilities | 3155 |  |
| &nbsp;&nbsp;&nbsp;Operating lease liability - non-current | 95771 | 111933 |
| &nbsp;&nbsp;&nbsp;Employee benefit obligations - non-current | 10025 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Liabilities | $12577995 | $9776770 |
| COMMITMENTS AND CONTINGENCIES |  |  |
| SHAREHOLDERS' DEFICIT |  |  |
| &nbsp;&nbsp;&nbsp;Ordinary shares, Class A, $0.0005 par value, 90,000,000 shares authorized, 22,642,538 and 22,477,825 shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively\* | 11322 | 11240 |
| &nbsp;&nbsp;&nbsp;Ordinary shares, Class B, $0.0005 par value, 10,000,000 shares authorized, 4,780,575 shares issued and outstanding as of June 30, 2025 and December 31, 2024\* | 2390 | 2390 |
| &nbsp;&nbsp;&nbsp;Additional paid-in capital | 47535336 | 45914112 |
| &nbsp;&nbsp;&nbsp;Accumulated deficit | (55258300) | (49416584) |
| &nbsp;&nbsp;&nbsp;Accumulated other comprehensive loss | (1056687) | (863282) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total KNOREX Ltd. Shareholders' Deficit | (8765939) | (4352124) |
| &nbsp;&nbsp;&nbsp;Noncontrolling interests | 616 | 124 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Shareholders' Deficit | (8765323) | (4352000) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Liabilities and Shareholders' Deficit | $3812672 | $5424770 |

---

\* Giving retroactive effect to the 1-for-20 share split effected on February 26, 2024 and additional issuance of 22,477,825 Class A Ordinary Shares and 4,780,575 Class B Ordinary Shares effected on September 30, 2024 as part of the reverse capitalization consideration.

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

**KNOREX LTD. AND SUBSIDIARIES**

**UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS**

**(Stated in U.S. Dollars)**

---

| | | |
|:---|:---|:---|
|  | For the Six Months Ended | For the Six Months Ended |
|  | June 30, 2025 | June 30, 2024 |
|  | (Unaudited) | (Unaudited) |
| REVENUES | $2826381 | $5497418 |
| COST OF REVENUES | 1547272 | 3268901 |
| GROSS PROFIT | 1279109 | 2228517 |
| OPERATING EXPENSES: |  |  |
| &nbsp;&nbsp;&nbsp;Platform operations | 1383969 | 1510882 |
| &nbsp;&nbsp;&nbsp;Sales and marketing | 1353208 | 1469603 |
| &nbsp;&nbsp;&nbsp;Technology and development | 1232040 | 1203894 |
| &nbsp;&nbsp;&nbsp;General and administrative | 937837 | 853052 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Operating Expenses | 4907054 | 5037431 |
| LOSS FROM OPERATIONS | (3627945) | (2808914) |
| OTHER (EXPENSE) INCOME |  |  |
| &nbsp;&nbsp;&nbsp;Interest expense, net | (858205) | (34928) |
| &nbsp;&nbsp;&nbsp;Stock-based compensation expense |  | (277609) |
| &nbsp;&nbsp;&nbsp;Amortization of discount on debt instrument | (137662) | (14230) |
| &nbsp;&nbsp;&nbsp;Foreign exchange (loss) gain | (18141) | 210730 |
| &nbsp;&nbsp;&nbsp;Other income, net | 98643 | 5205 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Other Expense, net | (915365) | (110832) |
| LOSS BEFORE INCOME TAXES | (4543310) | (2919746) |
| PROVISION FOR INCOME TAXES | 74763 | 16248 |
| NET LOSS | (4618073) | (2935994) |
| Less: Net income attributable to noncontrolling interest | (630) | (540) |
| NET LOSS ATTRIBUTABLE TO KNOREX LTD. | $(4618703) | $(2936534) |
| NET LOSS | $(4618073) | $(2935994) |
| FOREIGN CURRENCY TRANSLATION ADJUSTMENT | (193543) | (69441) |
| TOTAL COMPREHENSIVE LOSS | (4811616) | (3005435) |
| Less: Comprehensive income attributable to noncontrolling interest | 492 | 310 |
| COMPREHENSIVE LOSS ATTRIBUTABLE TO KNOREX LTD. | $(4812108) | $(3005745) |
| WEIGHTED AVERAGE NUMBER OF CLASS A ORDINARY SHARES AND CLASS B ORDINARY SHARES |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic and diluted\* | 27414988 | 26719601 |
| LOSS PER SHARE |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic and diluted | $(0.17) | $(0.11) |

---

\* Giving retroactive effect to the 1-for-20 share split effected on February 26, 2024 and additional issuance of 22,477,825 Class A Ordinary Shares and 4,780,575 Class B Ordinary Shares effected on September 30, 2024 as part of the reverse capitalization consideration.

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

**KNOREX LTD. AND SUBSIDIARIES**

**UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGE IN SHAREHOLDERS' EQUITY (DEFICIT)**

**(Stated in U.S. Dollars)**

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Class A ordinary shares | Class A ordinary shares | Class B ordinary shares | Class B ordinary shares | | | | | |
|  | Shares | Capital | Shares | Capital | Additional<br> paid-in<br>capital | Accumulated<br>deficit | Accumulated<br> other <br> comprehensive<br>loss | Noncontrolling<br>interest | Total<br> shareholders'<br>deficit |
| BALANCE, December 31, 2024 | 22477825 | $11240 | 4780575 | $2390 | $45914112 | $(49416584) | $(863282) | $124 | $(4352000) |
| &nbsp;&nbsp;&nbsp;Net (loss) income |  |  |  |  |  | (4618703) |  | 630 | (4618073) |
| &nbsp;&nbsp;&nbsp;Issuance of ordinary shares through exercise of warrants | 164713 | 82 |  |  | 202376 |  |  |  | 202458 |
| &nbsp;&nbsp;&nbsp;Incremental fair value on modification of warrants |  |  |  |  | 1223013 | (1223013) |  |  |  |
| &nbsp;&nbsp;&nbsp;Issuance of warrants |  |  |  |  | 195835 |  |  |  | 195835 |
| &nbsp;&nbsp;&nbsp;Foreign currency translation adjustment | - | - | - | - | - | - | (193405) | (138) | (193543) |
| BALANCE, June 30, 2025 (Unaudited) | 22642538 | $11322 | 4780575 | $2390 | $47535336 | $(55258300) | $(1056687) | $616 | $(8765323) |

---

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Class A ordinary shares | Class A ordinary shares | Class B ordinary shares | Class B ordinary shares | | | | | |
|  | Shares\* | Capital | Shares\* | Capital | Additional<br> paid-in<br>capital | Accumulated<br>deficit | <br> Accumulated<br> other<br> comprehensive<br>loss | Noncontrolling<br>interest | Total<br> shareholders'equity<br>(deficit) |
| BALANCE, December 31, 2023 | 21667400 | $10835 | 4780575 | $2390 | $44577911 | $(43532433) | $(906828) | $(186) | $151689 |
| &nbsp;&nbsp;&nbsp;Net (loss) income |  |  |  |  |  | (2936534) |  | 540 | (2935994) |
| &nbsp;&nbsp;&nbsp;Issuance of ordinary shares through exercise of warrants | 810425 | 405 |  |  | 1336201 |  |  |  | 1336606 |
| &nbsp;&nbsp;&nbsp;Issuance of warrants |  |  |  |  | 277609 |  |  |  | 277609 |
| &nbsp;&nbsp;&nbsp;Foreign currency translation adjustment | - | - | - | - | - | - | (69121) | (230) | (69351) |
| BALANCE, June 30, 2024 (Unaudited) | 22477825 | $11240 | 4780575 | $2390 | $46191721 | $(46468967) | $(975949) | $124 | $(1239441) |

---

\* Giving retroactive effect to the 1-for-20 share split effected on February 26, 2024 and additional issuance of 22,477,825 Class A Ordinary Shares and 4,780,575 Class B Ordinary Shares effected on September 30, 2024 as part of the reverse capitalization consideration.

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

**KNOREX LTD. AND SUBSIDIARIES**

**UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS**

**(Stated in U.S. Dollars)**

---

| | | |
|:---|:---|:---|
|  | For the Six Months Ended | For the Six Months Ended |
|  | June 30, 2025 | June 30, 2024 |
|  | (Unaudited) | (Unaudited) |
| CASH FLOWS FROM OPERATING ACTIVITIES: |  |  |
| &nbsp;&nbsp;&nbsp;Net loss | $(4618073) | $(2935994) |
| &nbsp;&nbsp;&nbsp;Adjustments to reconcile net loss to net cash used in operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation | 10621 | 10201 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of operating right-of-use assets | 15078 | 38079 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of discount on debt instrument | 137662 | 14230 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of capitalized software development costs | 382931 | 401555 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Recovery of) provision for credit losses | (5868) | 156524 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain on disposal of equipment |  | (59) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss on disposal of investment in subsidiary | (7936) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation expense |  | 277609 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred tax expenses | 3139 |  |
| &nbsp;&nbsp;&nbsp;Change in operating assets and liabilities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable | 1213282 | (442242) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other receivables | 216768 | (27543) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other receivables - related parties | (37278) | 35966 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | 20856 | (51342) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | (585682) | (194523) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other payables and accrued liabilities | 452211 | (424797) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other payables - related parties | 51348 | (194723) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Taxes payable | 8722 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue | (12966) | (65594) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating lease liability | (14097) | (36896) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Employee benefit obligations | 9974 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in operating activities | (2759308) | (3439549) |
| CASH FLOWS FROM INVESTING ACTIVITIES: |  |  |
| &nbsp;&nbsp;&nbsp;Purchases of equipment | (10300) | (10246) |
| &nbsp;&nbsp;&nbsp;Capitalized software development costs | (395479) | (434811) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in investing activities | (405779) | (445057) |
| CASH FLOWS FROM FINANCING ACTIVITIES: |  |  |
| &nbsp;&nbsp;&nbsp;Payments of deferred offering costs | (421152) | (55091) |
| &nbsp;&nbsp;&nbsp;Proceeds from convertible notes | 321005 | 1636193 |
| &nbsp;&nbsp;&nbsp;Proceeds from exercise of warrants | 202458 | 1336606 |
| &nbsp;&nbsp;&nbsp;Proceeds from short-term loan - third parties | 2924942 |  |
| &nbsp;&nbsp;&nbsp;Repayments of short-term loan - third parties | (160000) |  |
| &nbsp;&nbsp;&nbsp;Proceeds from short-term loan - related parties | 226796 | 80975 |
| &nbsp;&nbsp;&nbsp;Repayments of short-term loan - related parties | (118964) |  |
| &nbsp;&nbsp;&nbsp;Repayments of long-term loans - bank | (245023) | (200261) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by financing activities | 2730062 | 2798422 |
| EFFECT OF EXCHANGE RATE CHANGES | (178710) | (70582) |
| NET CHANGE IN CASH AND CASH EQUIVALENTS | (613735) | (1156766) |
| CASH AND CASH EQUIVALENTS, beginning of the period | 824728 | 1862781 |
| CASH AND CASH EQUIVALENTS, end of the period | $210993 | $706015 |
| SUPPLEMENTAL CASH FLOW INFORMATION: |  |  |
| &nbsp;&nbsp;&nbsp;Cash paid for income tax | $40517 | $16248 |
| &nbsp;&nbsp;&nbsp;Cash paid for interest | $- | $35574 |
| SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES: |  |  |
| &nbsp;&nbsp;&nbsp;Initial recognition of operating right-of-use assets and lease liability | $- | $170374 |
| &nbsp;&nbsp;&nbsp;Issuance of warrants | $195835 | $277609 |
| &nbsp;&nbsp;&nbsp;Incremental fair value on modification of warrants | $1223013 | $- |

---

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

**KNOREX LTD. AND SUBSIDIARIES**

**NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(Stated in U.S. Dollars, unless stated otherwise)**

**Note 1– Nature of business and organization**

The Company is an exempted company incorporated on May 9, 2023 in Cayman Islands. The Company has no substantial operations other than holding all the outstanding share capital of its subsidiaries. The Company, through its subsidiaries, is a technology company that provides a new category of online advertising software called Advertising Management and Execution (AMX) system. The Company's flagship product — KNOREX XPO<sup>SM</sup>, is a suite of cloud-based AMX software applications that provide marketers an integrated management of digital advertising to streamline workflow and enhance advertising efficiency, aided by AI/ML for intelligent automation and scaling. XPO lets marketers manage and control core mission-critical online advertising processes all in one place — manual or AI-assisted advertisements creation, management of data feeds for use in advertising creatives, activation of omni-channel advertising campaigns, acquisition of audience data from data marketplaces, optimization of cross-channel advertising campaigns performance, data management, advertising trackers/pixels management for tracking and measurement, consolidation of disparate data and reporting across multiple channels and platforms, accounts reconciliation and billing management.

The Company undertook a reverse recapitalization on September 30, 2024 ("Reorganization") through entering into a restructuring agreement with the shareholders of Knorex SG, resulting in the shareholders of Knorex SG and certain other persons becoming 100% shareholders of the Company. As of the date of this prospectus, the Reorganization was completed and the Company now owns 100% of Knorex SG. As a result, the Company newly issued 22,477,825 Class A Ordinary Shares of par value US$0.0005 each and 4,780,555 Class B Ordinary Shares of par value US$0.0005 each, and the Company's outstanding shares increased to 22,477,825 Class A Ordinary Shares and 4,780,575 Class B Ordinary Shares from 20 Class B Ordinary Shares. All share and per share data have been retroactively restated to reflect the current capital structure of the Company. Before and after the Reorganization, the Company, together with its subsidiaries (as indicated below), is effectively controlled by the same shareholders, and therefore the Reorganization is considered as a reorganization of entities under common control in accordance with Accounting Standards Codification ("ASC") 805-50-25. The consolidation of the Company and its subsidiaries have been accounted for at historical cost and prepared on the basis as if the aforementioned transactions had become effective as of the beginning of the first period presented in the accompanying consolidated financial statements in accordance with ASC 805-50-45-5.

The accompanying consolidated financial statements reflect the activities of the Company and each of the following entities:

Schedule of subsidiaries of the company

---

| | | | |
|:---|:---|:---|:---|
| **Name** |  | **Background** | **Ownership** |
| Knorex Pte. Ltd. ("Knorex SG") | ● | A Singapore company | 100% owned by the Company |
|  | ● | Incorporated on September 9, 2009 |  |
|  | ● | Provides sales and local support, and product management service |  |
| Knorex Inc. ("Knorex US") | ● | A Delaware Corporation in the United States | 100% owned by Knorex SG |
|  | ● | Incorporated on May 9, 2018 |  |
|  | ● | Provides sales and local support and product management service |  |
| Knorex Software Sdn. Bhd. ("Knorex MY") | ● | A Malaysia company | 100% owned by Knorex SG |
|  | ● | Incorporated on August 30, 2010 |  |
|  | ● | Provides creative design support |  |
| Knorex Vietnam Co. Limited ("Knorex VN") | ● | A Vietnam company | 99% owned by Knorex SG |
|  | ● | Incorporated on July 18, 2013 |  |
|  | ● | Provides technical development, research and development and customer and technical support |  |
| Knorex India Private Limited ("Knorex IN") | ● | An India company | 99.99% owned by Knorex SG |
|  | ● | Incorporated on June 17, 2016 |  |
|  | ● | Provides technical development, research and development, software testing, quality assurance and quality control service and customer and technical support |  |
| Knorex (Thailand) Co. Ltd. ("Knorex TH") | ● | A Thailand company | 100% owned by Knorex SG through deed of trust\* |
|  | ● | Incorporated on November 19, 2013 |  |
|  | ● | Dissolution in progress |  |
| Knorex Pty. Ltd. ("Knorex AU") | ● | An Australia company | 100% owned by Knorex SG through deed of trust\* |
|  | ● | Incorporated on March 30, 2015 |  |
|  | ● | Approved for voluntary deregistration from the Australian Securities & Investments Commission (ASIC) on January 3, 2024 |  |
| Knorex (Guangzhou) Pte. Ltd. ("Knorex CN") | ● | A People's Republic of China company | 100% owned by Knorex SG |
|  | ● | Incorporated on October 27, 2017 |  |
|  | ● | A dormant company |  |
| Adziggy, Inc ("Adziggy US") | ● | A Delaware Corporation in the United States | 100% owned by Knorex SG |
|  | ● | Incorporated on June 13, 2019 |  |
|  | ● | A dormant company |  |
| Ascendx Medica Technologies Pte. Ltd. ("AscendX") | ● | A Singapore company | 100% owned by Knorex SG |
|  | ● | Incorporated on June 11, 2025 |  |
|  | ● | Development of software and applications |  |

---

**\*** Knorex SG is the trustee and is the beneficial owner of Knorex TH and Knorex AU affected through the execution of deed of trust agreement. Knorex TH and Knorex AU's operations are immaterial to the Company's accompanying financial statements.

**Note 2 – Summary of significant accounting policies**

Going concern

The accompanying consolidated financial statements have been prepared assuming the Company will continue as a going concern, which contemplates, among other things, the realization of assets and satisfaction of liabilities in the normal course of business. The Company had a working capital deficit of approximately US$11 million and accumulated deficit of approximately $55.3 million as of June 30, 2025. The Company also incurred net loss of approximately $4.6 million and had operating cash outflow of approximately $2.8 million for the six months ended June 30, 2025. These conditions raise substantial doubt about the Company's ability to continue as a going concern.

To sustain its ability to support the Company's operating activities, the Company considered supplementing its sources of funding through the following:

● Equity financing;

● Debt financing through issuance of convertible notes; and

● Other available sources of financing from banks or other financial institutions.

In October 2025, the Company completed its initial public offering with gross proceeds of $12.0 million. In addition, management has continued to commence a strategy to raise additional debt and equity. However, there can be no certainty that these additional financings will be available on acceptable terms or at all. If management is unable to execute this plan, there will likely be a material adverse effect on the Company's business. All these factors raise substantial doubt about the ability of the Company to continue as a going concern.

The unaudited condensed consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

Basis of presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") for information pursuant to the rules and regulations of the U.S. Securities and Exchange Commission ("SEC") for interim reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by U.S. GAAP can be condensed or omitted. These unaudited condensed consolidated financial statements have been prepared on the same basis as its annual consolidated financial statements and, in the opinion of management, reflect all adjustments, consisting only of normal recurring adjustments, which are necessary for the fair statement of the Company's financial information. These interim results are not necessarily indicative of the results to be expected for the fiscal year ending December 31, 2025, or for any other interim period or for any other future year.

Principles of consolidation

The unaudited condensed consolidated financial statements include the financial statements of the Company and its subsidiaries. All transactions and balances among the Company and its subsidiaries have been eliminated upon consolidation.

A subsidiary is an entity in which the Company, directly or indirectly, controls more than one half of the voting power; 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.

Non-controlling interests

For the Company's non-wholly owned subsidiaries, a non-controlling interest is recognized to reflect the portion of equity that is not attributable, directly or indirectly, to the Company. The cumulative results of operations attributable to non-controlling interests are also recorded as non-controlling interests in the Company's unaudited condensed consolidated balance sheets and unaudited condensed consolidated statements of operations and comprehensive loss. Cash flows related to transactions with non-controlling interests are presented under financing activities in the unaudited condensed consolidated statements of cash flows.

Use of estimates

The preparation of the unaudited condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities as of the date of the unaudited condensed consolidated financial statements and the reported amounts of revenues and expenses during the periods presented. Significant accounting estimates reflected in the Company's unaudited condensed consolidated financial statements include lease classification and liabilities, operating right-of-use assets, determinations of the useful lives and valuation of long-lived assets, estimates of allowances for credit losses, estimates of impairment of long-lived assets, valuation of deferred tax assets, contingencies and estimated fair value of warrants. Actual results could differ from these estimates.

Foreign currency translation and transactions

Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transaction. Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency using the applicable exchange rates at the balance sheet dates. The resulting exchange differences are recorded in the unaudited condensed consolidated statements of operations and comprehensive loss.

The reporting currency of the Company is United States Dollars ("US$") and the accompanying financial statements have been expressed in US$. The Company and its' subsidiaries in Singapore, Malaysia, Vietnam, India, Thailand, Australia, and China conduct its businesses and maintain its books and records in the respective currency, United States Dollars ("US$"), Malaysian Ringgit ("MYR"), Vietnamese Dong ("VND"), Indian Rupee ("INR"), Thai Baht ("THB"), Australian Dollar ("AUD") and Chinese Renminbi ("RMB"), as its functional currency, respectively.

In general, for consolidation purposes, assets, and liabilities of its subsidiaries whose functional currency is not US$ are translated into US$, in accordance with ASC Topic 830-30, "*Translation of Financial Statement"*, using the exchange rate on the balance sheet date. Revenues and expenses are translated at average rates prevailing during the period. The gains and losses resulting from translation of financial statements of foreign subsidiaries are recorded as a separate component of accumulated other comprehensive loss within the statements of shareholders' equity (deficit). Cash flows are also translated at average translation rates for the periods; therefore, amounts reported on the statement of cash flows will not necessarily agree with changes in the corresponding balances on the unaudited condensed consolidated balance sheets.

Translation of foreign currencies into US$1 has been made at the following exchange rates for the respective periods:

Schedule of foreign currency exchange rate translation

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| | | | |
|:---|:---|:---|:---|
|  | **As of and for the six months ended June 30,**  | **As of and for the six months ended June 30,**  | <br>**As of December 31,**  |
|  | **2025** | **2024** | **2024** |
| As of period-end SGD: US$1 exchange rate | 1.2757 |  | 1.3606 |
| As of period-end MYR: US$1 exchange rate | 4.2285 |  | 4.4650 |
| As of period-end VND: US$1 exchange rate | 26094.94 |  | 25484.98 |
| As of period-end INR: US$1 exchange rate | 85.5081 |  | 85.4781 |
| As of period-end THB: US$1 exchange rate | 32.5549 |  | 34.1887 |
| As of period-end AUD: US$1 exchange rate | 1.5309 |  | 1.6075 |
| As of period-end RMB: US$1 exchange rate | 7.1714 |  | 7.2988 |
| Year ended-average SGD: US$1 exchange rate | 1.3183 | 1.3492 |  |
| Year ended-average MYR: US$1 exchange rate | 4.3448 | 4.7352 |  |
| Year ended-average VND: US$1 exchange rate | 25713.48 | 24974.66 |  |
| Year ended-average INR: US$1 exchange rate | 85.9449 | 83.2755 |  |
| Year ended-average THB: US$1 exchange rate | 33.3925 | 36.3147 |  |
| Year ended-average AUD: US$1 exchange rate | 1.5754 | 1.5240 |  |
| Year ended-average RMB: US$1 exchange rate | 7.2277 | 7.2055 |  |

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Enterprise-wide disclosure

The Company's chief operating decision-maker is identified as the chief executive officer who reviews financial information presented on a consolidated basis, accompanied by disaggregated information about revenues by different revenues streams for purposes of allocating resources and evaluating financial performance. Based on qualitative and quantitative criteria established by Accounting Standards Codification ("ASC") 280, "Segment Reporting", the Company considers itself to be operating within one operating and reportable segment, as Chief Operating Decision Maker (CODM) reviews financial information and allocates resources. The CODM assesses the Company's performance on a consolidated basis, without distinguishing between different product lines, services, or geographic regions. The Company's operations are highly integrated, with centralized management of strategy, operations, compliance, and financial planning. As such, discrete financial information is not prepared or regularly reviewed for separate components of the business.

Cash and cash equivalents

The Company considers all highly liquid investments with an original maturity of three months or less when acquired to be cash and cash equivalents.

Accounts receivable, net

Accounts receivables are recorded at the invoiced amount less an allowance for credit losses and do not bear interest, which are due after 30 days. Management reviews the adequacy of the allowance for credit losses on an ongoing basis, using historical collection trends and aging of receivables. Management also periodically evaluates individual customers' financial conditions, credit histories, and the current economic conditions to adjust the allowance when necessary. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Company's management continues to evaluate the reasonableness of the valuation allowance policy and update it if necessary.

The Company adopted ASC 326 to assess the allowance for credit losses. ASC 326 requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts.

Other receivables

Other receivables primarily include receivables from tax authorities on overpayment of sales and services taxes, employee advance, receivables from recourse factoring company, and refundable deposits from third party service providers. Management regularly reviews the aging of receivables and changes in payment trends and records allowances for credit losses when management believes collection of amounts due are at risk. Accounts considered uncollectable are written off against allowances after exhaustive efforts at collection are made.

Prepaid expenses and other current assets

Prepaid expenses and other current assets primarily include prepaid expenses paid to services providers, and other deposits. Management regularly reviews the aging of such balances and changes in payment and realization trends and records allowances when management believes realization of amounts due are at risk. Accounts considered unrealizable are written off against allowances after exhaustive efforts at realization of services are made. As of June 30, 2025 and December 31, 2024, no allowance for credit losses was recorded.

Property and equipment, net

Property and equipment are stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets with no residual value. The estimated useful lives are as follows:

Schedule of estimated useful lives of the assets

<u>Expected useful lives</u> <br> Office equipment 5 years <br> Furniture and fixtures 5 years

The cost and related accumulated depreciation of assets sold or otherwise retired are eliminated from the accounts and any gain or loss is included in the unaudited condensed consolidated statements of operations and comprehensive loss. Expenditures for maintenance and repairs are charged to earnings as incurred, while additions, renewals, and betterments, which are expected to extend the useful life of assets, are capitalized. The Company also re-evaluates the periods of depreciation to determine whether subsequent events and circumstances warrant revised estimates of useful lives.

Capitalized software development costs

Software development costs consist of capitalized costs related to purchase and develop internal-use software. The Company uses such software to provide services to its customers. The costs to purchase and develop internal-use software are capitalized from the time that the preliminary project stage is completed, and it is considered probable that the software will be used to perform the function intended. These costs include personnel and personnel-related employee benefits for employees directly associated with the software development and external costs of the materials or services consumed in developing or obtaining the software.

Any costs incurred for upgrades and functionality enhancements of the software are also capitalized. Once this software is ready for use in providing the Company's services, these costs are amortized on a straight-line basis over the three-year estimated useful life. The amortization is presented within amortization in the unaudited condensed consolidated statements of operations and comprehensive loss.

Software development costs that are capitalized in internal-use software cost were US$395,479 and US$434,811 during the six months ended June 30, 2025 and 2024, respectively.

Impairment for long-lived assets

In accordance with ASC 360-10, long-lived assets, including property and equipment with finite lives are reviewed for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate that the carrying value of an asset may not be recoverable. The Company assesses the recoverability of the assets based on the undiscounted future cash flows the assets are expected to generate and recognize an impairment loss when estimated undiscounted future cash flows expected to result from the use of the asset plus net proceeds expected from disposition of the asset, if any, are less than the carrying value of the asset. If an impairment is identified, the Company will reduce the carrying amount of the asset to its estimated fair value based on a discounted cash flows approach or, when available and appropriate, to comparable market values. As of June 30, 2025 and December 31, 2024, no impairment of long-lived assets was recognized.

Deferred offering costs

Deferred offering costs represent costs associated with the Company's proposed offering of Class A and Class B Ordinary Shares which will be netted against the proceeds of the offering. If the offering is not successful, these costs will be expensed.

Other payables and accrued expenses

Other payables and accrued expenses are recognized when the Company has a present obligation arising from past events, the settlement of which is expected to result in an outflow of economic benefits. These liabilities include amounts owed for services received but not yet invoiced, accrued payroll, taxes payable, recourse factoring liabilities, and other miscellaneous accrued liabilities.

Warrants

The Company accounts for warrants as either equity-classified or liability-classified instruments based on an assessment of the warrant's specific terms and applicable authoritative guidance in Financial Accounting Standards Board ("FASB") ASC 480, Distinguishing Liabilities from Equity ("ASC 480") and ASC 815, Derivatives and Hedging ("ASC 815"). The assessment considers whether the warrants are freestanding financial instruments pursuant to ASC 480, meet the definition of a liability pursuant to ASC 480, and whether the warrants meet all of the requirements for equity classification under ASC 815, including whether the warrants are indexed to the Company's own Class A and Class B Ordinary Shares and whether the warrant holders could potentially require "net cash settlement" in a circumstance outside of the Company's control, among other conditions for equity classification. This assessment, which requires the use of professional judgment, is conducted at the time of warrant issuance and as of each subsequent quarterly period end date while the warrants are outstanding.

For issued or modified warrants that meet all of the criteria for equity classification, the warrants are required to be recorded as a component of equity at the time of issuance. Warrants that do not meet all the criteria for equity classification are required to be recorded as liabilities at their initial fair value on the date of issuance and remeasured to fair value at each balance sheet date thereafter. The Company determined that upon the warrant agreements, the Company concluded that its warrants qualify for equity accounting treatment.

For issued warrants that meet all of the criteria for equity classification and issued with debt instruments, the proceeds from the sale of the debt instruments are allocated to the two elements based on the relative fair values of the debt instrument without the warrants and of the warrants themselves at time of issuance. The portion of the proceeds allocated to the warrants is accounted for as paid-in capital. The remainder of the proceeds is allocated to the debt instrument portion of the transaction at a discount and accreted over the term of the debt instrument using the effective interest rate method.

For issued warrants that meet all of the criteria for equity classification and issued with preferred equity instruments, the portion of the proceeds so allocated to the warrants based on the relative fair values of the equity instrument without the warrants and of the warrants themselves at time of issuance are accounted for as paid-in capital altogether. The remainder of the proceeds is allocated to the equity instrument portion of the transaction at discount as a deemed dividend, which adjusts retained earnings (or in the absence of retained earnings, additional paid-in capital).

Convertible notes

Upon adoption of ASU 2020-06 on January 1, 2021, the elimination of the beneficial conversion feature ("BCF") and cash conversion models in ASC 470-20 that requires separate accounting for embedded conversion features in convertible instruments results in the convertible debt instruments being recorded as a single liability (i.e., there is no separation of the conversion feature, and all proceeds are allocated to the convertible debt instruments as a single unit of account). Unless conversion features are derivatives that must be bifurcated from the host contracts in accordance with ASC 815-15 or, in the case of convertible debt, if the instruments are issued with a substantial premium, in the latter case, ASC 470-20-25-13 requires the substantial premium to be attributable to the conversion feature and recorded in additional paid-in capital (APIC).

Revenue recognition

The Company's revenues are derived from providing advertising management and execution software application and advertising services to brand advertisers, and media agencies (collectively as "marketers").

The Company recognizes revenues when its customer obtains control of promised services in an amount that reflects the consideration that the Company expects to receive in exchange for those services. The Company recognizes 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, the Company allocates 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

The Company provides 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. The Company charges a monthly platform subscription fee to its customers. Subscription fee revenues are recognized over the subscription period. The Company's 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 its customer for subscription period that has not begun. Historically, the Company has not experienced any such refund.

(2) Platform services

- Performance obligation satisfied over a period of time

The Company provides a comprehensive package of online advertisement solutions, including the purchasing of advertisement placements, audience data, tracking and measurement, and other technical features. The platform services are recognized when impressions are delivered. The Company recognizes 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 be provided only when there is a bug or error in the XPO platform causing undeliverable impressions during the advertising/execution process. Refunds will be prorated and applied to the remaining contracted period from the time the undeliverable impressions were detected. Historically, the Company has not experienced any significant refund.

(3) Managed activations and professional services

- Performance obligation satisfied over a period of time

The Company provides managed activations and professional services of, including but not limited to, advertising measurement, campaign setup and monitoring, conversion tracking set up, analytics reporting, creative design services, digital marketing consultation, custom reporting, and campaign strategy and optimization consultations. These services are recognized over the service period since its customer simultaneously receives and consumes the benefits provided by the Company's performance. Refunds will be provided on any occurrence of mistakes made by the 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, 2025 and December 31, 2024, 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:

Schedule of deferred revenue

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| | | |
|:---|:---|:---|
|  | **June 30, 2025** | **December 31, 2024** |
|  | **US$** | **US$** |
| Beginning balance | $45235 | $126440 |
| Add: net increase in current period of deferred revenue | 11061 | 45235 |
| Less: revenue recognized from beginning deferred revenue | (24028) | (126440) |
| Ending balance | $32268 | $45235 |

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As of June 30, 2025 and December 31, 2024, the Company had deferred revenue of US$32,268 and US$45,235, respectively, among which, US$32,268 is expected to be recognized as revenue during the twelve months ended June 30, 2026 and US$24,028 was recognized as revenue during the six months ended June 30, 2025.

Cost of revenues

Cost of revenues consist primarily of costs to run the advertisement serving services. These costs include cost to acquire advertisement media sources, advertisement data sources and advertisement related technology features.

Operating expenses

The Company classifies its operating expenses into four categories and allocates overhead such as information technology infrastructure, rent and occupancy charges based on headcount for all these categories:

*Platform operations* 

Platform operations expenses consist primarily of expenses related to hosting the Company's XPO platform, which include hosting costs, data-related costs, data and privacy certifications and audits, and personnel costs of salaries and other compensation-related expenses attributable to personnel who support the platform and provide clients with platform support.

*Sales and marketing* 

Sales and marketing expenses consist primarily of personnel costs of salaries and other compensation-related expenses for the Company's sale and marketing personnel, professional services costs and facility related costs related to advertising, product management, promotional materials, public relations, other sales and marketing programs.

*Technology and development*

Technology and development expenses consist primarily of personnel costs of salaries and other compensation-related expenses for the Company's technology and development personnel with the ongoing development and maintenance of the Company's platform, professional services costs and facility related costs as well as costs related to research and product development. Technology and development costs are expensed as incurred, except to the extent that such costs are associated with software development that qualifies for capitalization in accordance with ASC 350-40, Internal-Use Software ("ASC 350-40"), which requires the capitalization of certain costs incurred only during the application development stage. The Company evaluates periodically research and development costs that may be eligible for capitalization. During the six months ended June 30, 2025 and 2024, amortization expense of capitalized software development costs amounted to US$382,931 and US$401,555, respectively.

*General and administrative* 

General and administrative expenses consist primarily of personnel costs of salaries and other compensation-related expenses for executive management, finance, accounting, human resources, legal, compliance, and other administrative functions as well as professional services costs and other facility related costs.

Defined contribution plan

The full-time employees of the Company in certain countries are entitled to the government mandated defined contribution plan. The Company is required to accrue and pay for these benefits based on certain percentages of the employees' respective salaries, subject to certain ceilings, in accordance with the relevant countries' government regulations, and make cash contributions to the government mandated defined contribution plan. Total expenses for the plans were US$201,956 and US$204,431 for the six months ended June 30, 2025 and 2024, respectively.

Income taxes

Deferred income tax assets and liabilities are determined based upon the net tax effects of the differences between the Company's unaudited condensed consolidated financial statements carrying amounts and the tax basis of assets and liabilities and are measured using the enacted tax rate expected to apply to taxable income in the years in which the differences are expected to be reversed. A valuation allowance is used to reduce some or all of the deferred tax assets if, based upon the weight of available evidence, it is more likely than not that those deferred tax assets will not be realized.

The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the unaudited condensed consolidated financial statements from such positions are then measured based on the largest benefit that has a greater than 50% likelihood of being realized. The Company recognizes interest and penalties accrued related to its uncertain tax positions in its income tax provision in the accompanying unaudited condensed consolidated statements of operations.

The Company makes assumptions, judgments and estimates to determine the current income tax provision, tax benefits from uncertain tax positions, deferred tax asset and liabilities and valuation allowance recorded against a deferred tax asset. The assumptions, judgments and estimates related to the current income tax provision (benefit) take into account current tax laws, their interpretation and potential outcomes of foreign and domestic tax audits. Changes in tax law and their interpretation could significantly impact on the income taxes provided in the Company's unaudited condensed consolidated financial statements.

The evaluation of the Company's uncertain tax positions involves significant judgment in the interpretation and application of GAAP and complex domestic and international tax laws, and matters related to the allocation of international taxation rights between countries. Although management believes the Company's reserves are reasonable, no assurance can be given that the final tax outcome of these matters will not be different from that which is reflected in the Company's reserves. Reserves are adjusted considering changing facts and circumstances, such as the closing of a tax examination or the refinement of an estimate. Assumptions, judgments and estimates relative to the amount of deferred income taxes, and any applicable valuation allowances, take into account future taxable income. Any of the assumptions, judgments and estimates mentioned above could cause the actual income tax obligations to differ from estimates.

Comprehensive loss

Comprehensive loss consists of two components, net loss and other comprehensive loss. Other comprehensive loss refers to revenue, expenses, gains, and losses that under GAAP are recorded as an element of shareholders' equity but are excluded from net loss. Other comprehensive loss consists of a foreign currency translation adjustment resulting from the Company not using the U.S. dollar as its functional currencies.

Loss per share

The Company computes loss per share ("EPS") in accordance with ASC 260, "Earnings per Share". ASC 260 requires companies to present basic and diluted EPS. Basic EPS is measured as net loss divided by the weighted average Class A and Class B Ordinary Shares outstanding for the period. Diluted EPS presents the dilutive effect on a per share basis of the potential Class A and Class B Ordinary Shares (e.g., convertible securities) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Dilutive potential ordinary shares also consist of the average number of incremental shares of Class A and Class B Ordinary Shares issuable upon the exercise of the stock options and warrants. Potential Class A and Class B Ordinary Shares that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS.

Fair value measurements

Fair value is defined as the price that would be received for an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date. Valuation techniques maximize the use of observable inputs and minimize the use of unobservable inputs. When determining the fair value measurements for assets and liabilities, we consider the principal or most advantageous market in which it would transact and consider assumptions that market participants would use when pricing the asset or liability. The following summarizes the three levels of inputs required to measure fair value, of which the first two are considered observable and the third is considered unobservable:

Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities.

Level 2 – Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

The fair value for certain assets and liabilities such as cash and cash equivalents, accounts receivable, net, other receivables, prepaid expenses and other current assets, accounts payable, other payables and accrued liabilities, and deferred revenue have been determined to approximate carrying amounts due to the short maturities of these instruments. The Company believes that its long-term bank loans approximate the fair value based on the current yields of the debt instruments.

Transfers of financial assets

The Company accounts for transfers of financial assets as sales when it has surrendered control over the related assets. Whether control has been relinquished requires, among other things, an evaluation of relevant legal considerations and an assessment of the nature and extent of the Company's continuing involvement with the assets transferred. Gains and losses stemming from transfers reported as sales are included in the accompanying statements of income. Assets obtained and liabilities incurred in connection with transfers reported as sales are initially recognized in the balance sheet at fair value.

Transfers of financial assets that do not qualify for sale accounting are reported as secured borrowings. Accordingly, the related assets remain on the Company's balance sheet and continue to be reported and accounted for as if the transfer had not occurred. Cash proceeds from these transfers are reported as liabilities, with attributable interest expense recognized over the life of the related transactions.

Operating leases

The Company accounts for leases in accordance with ASC 842. The Company enters into operating leases for its office, which generally have lease terms of up to 2 years. Leases with an initial term of 12 months or less are not recorded on the balance sheet. The Company does not have finance leases.

The Company determines if an arrangement is, or contains, a lease at inception. Operating lease assets represent the Company's right to control the use of an identified asset for a period of time, or term, in exchange for consideration, and operating lease liabilities represent its obligation to make lease payments arising from the aforementioned right.

Operating lease right-of-use ("ROU") assets and liabilities are initially recorded based on the present value of lease payments over the lease term, which includes the minimum unconditional term of the lease, and may include options to extend or terminate the lease when it is reasonably certain at the commencement date that such options will be exercised. As the rate implicit for each of the Company's leases is not readily determinable, the Company uses its incremental borrowing rate, based on the information available at the lease commencement date in determining the present value of its expected lease payments. Operating lease assets also include any initial direct costs and any lease payments made prior to the lease commencement date and are reduced by any lease incentives received. The Company has elected to not separate lease and non-lease components.

Operating lease assets are amortized on a straight-line basis in operating lease expense over the lease term on the unaudited condensed consolidated statements of operations. The related amortization of ROU assets along with the change in the operating lease liabilities are separately presented within the cash flows from operating activities on the unaudited condensed consolidated statements of cash flows. The Company records lease expense for operating leases on a straight-line basis over the lease term.

The Company reviews the impairment of its ROU assets consistent with the approach applied for its other long-lived assets. The Company reviews the recoverability of its long-lived assets when events or changes in circumstances occur that indicate that the carrying value of the asset may not be recoverable. The assessment of possible impairment is based on its ability to recover the carrying value of the asset from the expected undiscounted future pre-tax cash flows of the related operations. The Company has elected to include the carrying amount of operating lease liabilities in any tested asset group and include the associated operating lease payments in the undiscounted future pre-tax cash flows. For the six months ended June 30, 2025 and 2024, the Company did not recognize impairment loss on its operating lease ROU assets.

Related parties

Parties, which can be a corporation or individual, or have the ability to influence the Company, are considered as related if the Company has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Companies are also considered to be related if they are subject to common control or common significant influence.

Recent accounting pronouncements not yet adopted

The Company considers the applicability and impact of all accounting standards updates ("ASUs"). Management periodically reviews new accounting standards that are issued. Under the Jumpstart Our Business Startups Act of 2012, as amended (the "JOBS Act"), the Company meets the definition of an emerging growth company and has elected the extended transition period for complying with new or revised accounting standards, which delays the adoption of these accounting standards until they would apply to private companies. As a result of the Company's selection to use the extended transaction period for complying with new or revised accounting standards, the Company's unaudited condensed consolidated financial statements may not be comparable to companies that comply with public company effective dates.

In November 2024, the FASB issued ASU 2024-03, Income Statement — Reporting Comprehensive Income — Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses to disclose additional information about specific expense categories. ASU 2024-03 is effective for fiscal years beginning after December 15, 2026, with early adoption permitted and should be applied either prospectively or retroactively. The Company is expected to adopt this ASU on January 1, 2027. The Company is currently evaluating the potential impact of adopting this new guidance on its unaudited condensed consolidated financial statements and related disclosures.

Recently adopted accounting pronouncements

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The amendments were designed to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. In addition, the amendments enhance interim disclosure requirements, clarify circumstances in which an entity can disclose multiple segment measures of profit or loss, provide new segment disclosure requirements for entities with a single reportable segment, and contain other disclosure requirements. The purpose of the amendments is to enable investors to better understand an entity's overall performance and assess potential future cash flows. The ASU applies to all public entities that are required to report segment information in accordance with ASC 280. The Company has adopted this standard since the year ended December 31, 2024. See Note 16 – Segment Information.

In December 2023, the FASB issued Accounting Standards Update No. 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures" ("ASU 2023-09"), which modifies the rules on income tax disclosures to require entities to disclose (1) specific categories in the rate reconciliation, (2) the income or loss from continuing operations before income tax expense or benefit (separated between domestic and foreign) and (3) income tax expense or benefit from continuing operations (separated by federal, state and foreign). ASU 2023-09 also requires entities to disclose their income tax payments to international, federal, state and local jurisdictions, among other changes. The guidance is effective for annual periods beginning after December 15, 2024. Early adoption is permitted for annual financial statements that have not yet been issued or made available for issuance. ASU 2023-09 should be applied on a prospective basis, but retrospective application is permitted. The Company adopted this ASU on January 1, 2025 did not have a material impact on its unaudited condensed consolidated financial statements and related disclosures.

In March 2024, the FASB issued Accounting Standards Update (ASU) 2024-02, Codification Improvements—Amendments to Remove References to the Concepts Statements. The amendments in this ASU remove references to various FASB Concepts Statements from the Accounting Standards Codification to avoid the potential for such references to override authoritative guidance. The ASU does not create new accounting requirements but clarifies existing guidance and improves the Codification's clarity and consistency. ASU 2024-02 is effective for fiscal years beginning after December 15, 2024, including interim periods within those fiscal years. Early adoption is permitted. The Company adopted this ASU on January 1, 2025 did not have a material impact on its unaudited condensed consolidated financial statements.

Except as mentioned above, the Company does not believe other recently issued but not yet effective accounting standards, if currently adopted, would have a material effect on the Company's unaudited condensed consolidated balance sheets, statements of operations and comprehensive loss and statements of cash flows.

**Note 3 – Accounts receivable, net**

Accounts receivable, net consist of the following:

Schedule of accounts receivable

---

| | | |
|:---|:---|:---|
|  | **As of**<br> **June 30, 2025** | **As of**<br> **December 31, 2024** |
|  | **US$** | **US$** |
| Accounts receivable | $689996 | $1903277 |
| Allowance for credit losses | $(16468) | $(22336) |
| Total accounts receivable, net | $673528 | $1880941 |

---

Movements of allowance for credit losses are as follows:

Schedule of allowance for credit losses

---

| | | |
|:---|:---|:---|
|  | **June 30, 2025** | **December 31, 2024** |
|  | **US$** | **US$** |
| Beginning balance | $22336 | $39383 |
| Provision for credit losses | (5868) | 125651 |
| Write-off | - | (142698) |
| Ending balance | $16468 | $22336 |

---

**Note 4 – Other receivables**

Other receivables consist of the following:

Schedule of other receivables

---

| | | |
|:---|:---|:---|
|  | **As of**<br> **June 30, 2025** | **As of**<br> **December 31, 2024** |
|  | **US$** | **US$** |
| Sales, goods and services taxes receivables | $144563 | $193226 |
| Employee advances and others | 8580 | 8580 |
| Receivables from a factoring company <sup>(1)</sup> | - | 169465 |
| Total other receivables | $153143 | $371271 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) These
 receivables represent pledged accounts receivable received by the factoring company from the Company's customers pending to be
 repaid to the Company with $25,816 for the six months ended June 30, 2025 and $143,761 for December 31, 2024 are pledged accounts receivable (see Note 3) associated
 with the secured borrowings – recourse factoring liabilities (see Note 8).

**Note 5 – Prepaid expenses and other current assets**

Prepaid paid expenses and other current assets consist of the following:

---

| | | |
|:---|:---|:---|
|  | **As of**<br> **June 30, 2025** | **As of** <br> **December 31, 2024** |
|  | **US$** | **US$** |
| Prepaid expenses | 348105 | 367961 |
| Prepaid taxes | 4384 | 3488 |
| Security deposits | 25899 | 28198 |
| Total prepaid paid expenses and other current assets | $378388 | $399647 |

---

**Note 6 – Property and equipment, net**

Property and equipment, net consist of the following:

---

| | | |
|:---|:---|:---|
|  | **As of**<br> **June 30, 2025** | **As of**<br> **December 31, 2024** |
|  | **US$** | **US$** |
| Office equipment | $170654 | $149389 |
| Furniture and fixtures | 20346 | 19758 |
| Subtotal | 191000 | 169147 |
| Less: accumulated depreciation | (175470) | (146281) |
| Total property and equipment, net | $15530 | $22866 |

---

Depreciation expense for the six months ended June 30, 2025 and 2024 amounted to US$10,621 and US$10,201, respectively. During 2024, Knorex MY partially wrote off its office equipment and furniture and fixtures that were no longer in use.

**Note 7 – Credit facilities**

Long-term loans – bank

Outstanding balances on long-term bank loans consist of the following:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Bank Name** | **Repayment terms** | **Interest**<br> **Rate** | **Collateral/**<br> **Guarantee** | **As of**<br> **June 30, 2025** | **As of**<br> **December 31, 2024** |
|  |  | |  | **US$** | **US$** |
| United Overseas Bank Limited | Due monthly beginning in June 2022 to April 2026 | 3.00% | Guaranteed by the Company's shareholders | 376174 | 547547 |
| The Development Bank of Singapore Limited | Due monthly beginning in September 2020 to August 2025 | 2.50% | Guaranteed by the Company's shareholders | 20755 | 79042 |
| DBS Bank Ltd | Due monthly beginning in March 2024 to Feb 2028 | 7.75% | Guaranteed by the Company's shareholders | 50791 | 55784 |
| Total long-term loans – bank |  |  |  | 447720 | 682373 |
| Less: Discount on debt instrument |  |  |  | (7758) | (21384) |
| Less: Current portion |  |  |  | (415666) | (482454) |
| Total |  |  |  | $24296 | $178535 |

---

Short-term loans – third parties

Outstanding balances on short term loans – third parties consist of the following:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Lender Name** | **Maturities** | **Interest Rate** | **Collateral/<br> Guarantee** | **As of<br> June 30, 2025** | **As of<br> December 31, 2024** |
|  | | | | **US$** | **US$** |
| Allen Peter Anthony | July and September 2025 | 30.0 and 78.0% |  | $250000 | 150000 |
| Zeng Li Ren | September 2025 | 30.0% |  | 450000 | 300000 |
| Lee Kim Tah Foundation | September 2025 | 30.0% |  | 250000 | 250000 |
| Tan Tin Wee | September 2025 | 30.0% |  | 50000 | 50000 |
| Le Phu Khanh Huy | July and September 2025 | 30.0 and 78.0% |  | 1579856 | 1412285 |
| Oh Sock Ping | July 2025 | 78.0% |  | 58791 | 56817 |
| Yee Kee | August 2025 | 78.0% |  | 297875 |  |
| Lim Li Wen Chloe | July 2025 | 78.0% |  | 78388 |  |
| Lew Hui Pau | July 2025 | 78.0% |  | 78388 |  |
| Teo Tian Seng | July 2025 | 78.0% |  | 156777 |  |
| Kang Yan Pte. Ltd. | July 2025 | 78.0% |  | 102297 |  |
| Zhu Zhi Qing | August 2025 | 78.0% |  | 65323 |  |
| Yee Sze Wei | August 2025 | 78.0% |  | 22185 |  |
| Jarrod Seah Chi Nam | August 2025 | 78.0% |  | 100000 |  |
| Loo Tze Kian | July 2025 | 78.0% |  | 50000 |  |
| Tan Choon Huat | July 2025 | 78.0% |  | 100000 |  |
| Kan Yut Keong | July 2025 | 78.0% |  | 90000 |  |
| Tan Tai Chew | July 2025 | 78.0% |  | 20000 |  |
| Peh Ee Hong | July 2025 | 78.0% |  | 100000 |  |
| VD Capital Pty. Ltd. | July 2025 | 10.0% |  | 903569 |  |
| Ondeck Loan | December 2025 | 78.0% |  | 180596 | - |
| Total |  |  |  | 4984045 | 2219102 |
| Less: Discount on debt instrument |  |  |  | (73438) | - |
| Total short-term loans - bank |  |  |  | $4910607 | $2219102 |

---

Amortization of discount on debt instruments in connection with the short term loans – third parties for the six months ended June 30, 2025 and 2024 amounted to US$122,397 and nil, respectively.

Convertible notes

The Company entered into a series of convertible note agreements with a group of investors and received approximately US$7.7 million (S$10,300,083) aggregate principal amount convertible promissory note over a period from April 2022 to July 20, 2022 (the "C-D Notes"). The C-D Notes shall bear interest at 5% per annum until such balance to be converted into the Company's Class A Ordinary Shares. The C-D Notes have a mandatory automatic conversion feature, for which, upon the occurrence of the qualified equity financing, the C-D Notes plus accrued unpaid interest will be automatically converted into Class A Ordinary Shares at 70% issuance price or the C-D Notes will have a maturity conversion option using the Class A Ordinary Shares issuance price after 1 year from the issuance date of the C-D Notes. The investors of the C-D Notes have no redeemable option to redeem the notes.

The Company determined the C-D notes are within the scope of ASC 480 as the total number of shares to be issued are not known at inception until the issuance price of the next round of equity financing would take place. The Company also determined that the embedded conversions in the C-D Notes meets the scope exception to be considered indexed to a reporting's own stock based on the two-step approach in accordance with ASC 815-40-15 and does not require to be separately accounted for as a derivative. As a result, the Company classified the C-D Notes as a debt instrument in its entirety. In March 2023, the Company converted the full balance of US$7,735,209 plus additional interest incurred from inception of the C-D Notes to the conversion date into 2,553,700 shares of the Company's Class A Ordinary Shares.

In April and May 2024, the Company entered into five convertible note agreements with four investors and received approximately US$1.6 million aggregate principal amount convertible promissory notes with a conversion term of 6 months after the completion of the Company's initial public offerings. One convertible note has a maturity date to be due in September 2025 and four convertible notes have a maturity date to be due in November 2025 (the "D-2 Notes"). The D-2 Notes shall bear interest at 8% per annum until such balance to be converted into the Company's Class A Ordinary Shares. The conversion of the D-2 Notes will be at 70% of the proposed initial public offering ("IPO") price or next round of financing. If IPO does not occur on or before the maturity date, the Company shall redeem the Note plus all accrued and unpaid interest in full, where the interest shall accrue at a rate of 20% instead of 8% per annum. The Company determined the D-2 Notes are within the scope of ASC 480 as the total number of shares to be issued are not known at inception until the issuance price of the next round of equity financing would take place. The Company also determined that the embedded conversions in the D-2 Notes meets the scope exception to be considered indexed to a reporting's own stock based on the two-step approach in accordance with ASC 815-40-15 and does not require to be separately accounted for as a derivative. As a result, the Company classified the D-2 Notes as a debt instrument in its entirety.

In August and November 2024, the Company entered into four convertible note agreements with three investors and received approximately US$0.2 million aggregate principal amount convertible promissory notes with a conversion term of 6 months after the completion of the Company's initial public offerings. Two convertible notes have a maturity date to be due in June 2026 (extended from February 2025), and two convertible notes have a maturity date to be due in May 2025 (the "D-2 Notes"). The D-2 Notes shall bear interest at 8% per annum until such balance to be converted into the Company's Class A Ordinary Shares. The conversion of the D-2 Notes will be at 70% of the proposed initial public offering ("IPO") price or next round of financing. If IPO does not occur on or before the maturity date, the Company shall redeem the Note plus all accrued and unpaid interest in full, where the interest shall accrue at a rate of 20% instead of 8% per annum. The Company determined the D-2 Notes are within the scope of ASC 480 as the total number of shares to be issued are not known at inception until the issuance price of the next round of equity financing would take place. The Company also determined that the embedded conversions in the D-2 Notes meets the scope exception to be considered indexed to a reporting's own stock based on the two-step approach in accordance with ASC 815-40-15 and does not require to be separately accounted for as a derivative. As a result, the Company classified the D-2 Notes as a debt instrument in its entirety.

In February 2025, the Company signed the Amendment to the convertible note agreements for the aforementioned nine convertible notes to extend the maturity date to be due in June 2026. The interest rate increased from 8% per annum to 12% per annum beginning in February 2025. The conversion price of the D-2 Notes also amended to be 50% (amended from 70%) of the IPO price or next round of financing.

As of June 30, 2025 and December 31, 2024, convertible notes balance amounted to US$2,221,970 and US$1,900,965, respectively. Amortization of discount on debt instruments in connection with the convertible notes for the six months ended June 30, 2025 and 2024 amounted to US$15,265 and US$14,230, respectively.

Interest expenses in connection with the forementioned loans and convertible notes for the six months ended June 30, 2025 and 2024 amounted to US$858,205 and US$34,928, respectively.

**Note 8 – Other payables and accrued liabilities**

Other payables and accrued liabilities consist of the following:

---

| | | |
|:---|:---|:---|
|  | **As of**<br> **June 30, 2025** | **As of**<br> **December 31, 2024** |
|  | **US$** | **US$** |
| Accrued expenses | $431077 | $233689 |
| Accrued payroll | 343836 | 425322 |
| Accrued interest | 818939 | 170925 |
| Accrued taxes payable | 30560 | 21212 |
| Accrued professional fees | 405548 | 289302 |
| Secured borrowings – recourse factoring liabilities <sup>(1)</sup> | 103264 | 575043 |
| Payables to third-party vendors or service providers for administrative activities | 80239 | 89417 |
| Reimbursement payables to employees | 2906 | 2353 |
| Refundable deposit | 41115 | - |
| Total other payables and accrued liabilities | $2257484 | $1807263 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) During
 the six months ended June 30, 2025, the Company has factored its accounts receivable with recourse and accounted for the transaction
 as secured borrowings and recorded as recourse factoring liabilities. The factoring company advanced 80 % of the verified invoice
 amount to the Company and retain the 20 % of the invoice amount as collateral until its customer fully repay the invoice amount. As
 at June 30, 2025, the carrying amount of the Company's pledged accounts receivable associated with these liabilities amounted
 to $25,816 (Note 4), the Company has incurred $41,881 cost associated with the factoring arrangement and recorded as interest
 expenses in the accompanying unaudited condensed consolidated statements of operations and comprehensive loss.

**Note 9 – Related party transactions**

Related party balances

**Other receivables - related party**

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Name of Related Party** | **Relationship** | **Nature** | **As of**<br> **June 30, 2025** | **As of**<br> **December 31, 2024** |
|  |  |  | **US$** | **US$** |
| Khar Heng Choo\* | <br>Chairman and Chief Executive Officer of the Company | Employee advance | 37278 | - |
| Total |  |  | $37278 | $- |

---

\* As of the issuance date of these accompanying unaudited condensed consolidated financial statements, these receivables have been repaid by the related party.

**Short-term loans - related parties**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name of Related Party** | **Relationship** | **Term** | **Nature** | **As of**<br> **June 30, 2025** | **As of**<br> **December 31, 2024** |
|  |  |  |  | **US$** | **US$** |
| Truong Vinh Phu Le | Vice President of Operations of the Company | 30% interest per annum, maturity date extended from 1/18/2025 to 9/9/2025 | Working capital loan | $62711 | $104221 |
| Truong Vinh Phu Le | Vice President of Operations of the Company | 30% interest per annum, maturity date extended from 2/7/2025 to 9/9/2025 | Working capital loan | 23516 | 22596 |
| Truong Vinh Phu Le | Vice President of Operations of the Company | 1.25% per week | Working capital loan | 117582 |  |
| Truong Vinh Phu Le | Vice President of Operations of the Company | Non-interest bearing and due on demand | Working capital loan | 47033 |  |
| Kheng Ee Lennon Teng | Group General Manager of the Company | 30% interest per annum, maturity date extended from 1/18/2025 to 9/9/2025 | Working capital loan | 23516 | 22322 |
| Kheng Ee Lennon Teng | Group General Manager of the Company | 30% interest per annum, maturity date extended from 2/7/2025 to 9/9/2025 | Working capital loan | 15678 | 15064 |
| Kheng Ee Lennon Teng | Group General Manager of the Company | Non-interest bearing and due on demand | Working capital loan | 15765 | 27238 |
| Kheng Ee Lennon Teng | Group General Manager of the Company | Non-interest bearing and due on demand | Working capital loan | 27436 |  |
| Wilson Chandra | Director and President | Non-interest bearing and due on demand | Working capital loan | 46037 | 80000 |
| Total |  |  |  | $379274 | $271441 |

---

**Other payables - related parties**

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Name of Related Party** | **Relationship** | **Nature** | **As of**<br> **June 30, 2025** | **As of**<br> **December** **31, 2024** |
|  |  |  | **US$** | **US$** |
| Kheng Ee Lennon Teng | Group General Manager of the Company | Employee reimbursement | 2818 | 2642 |
| Le Truong Vinh Phu | Vice President of Operations of the Company | Interest Accrual – Related Parties | 52061 | 10668 |
| Kheng Ee Lennon Teng | Group General Manager of the Company | Interest Accrual – Related Parties | 14830 | 4772 |
| Wilson Chandra | Director and President | Interest Accrual – Related Parties | 1749 | 2029 |
| Total |  |  | $71458 | $20111 |

---

As of the issuance date of these accompanying unaudited condensed consolidated financial statements, these payables have been repaid partially to the related party.

**Note 10 – Leases**

On November 29, 2022, Knorex MY entered into a lease agreement of the office in Malaysia. The lease term was from December 1, 2022 to November 30, 2024. The lease payments are approximately $700 per month. The lease was early terminated on March 31, 2024.

On December 30, 2022, Knorex VN entered into a lease agreement of the office in Vietnam. The lease term was from January 1, 2023 to December 31, 2024. The lease payments are approximately $2,500 per month for the period commenced January 1, 2023 and ended May 31, 2023, approximately $2,800 per month for the period commenced June 1, 2023 and ended December 31, 2023, approximately $2,900 per month for the period commenced January 1, 2024 and ended December 31, 2024. The lease was expired on December 31, 2024. In January 2025, the Company renewed the lease for one year and extended the expiration date to be on December 31, 2025 approximately $3,000 per month.

On January 6, 2024, Knorex IN entered into a lease agreement of the office in India. The lease term was from February 15, 2024 to January 14, 2029. The lease payments are approximately $3,000 per month for the period commenced January 15, 2024 and ended January 14, 2025, approximately $3,100 per month for the period commenced January 15, 2025 and ending January 14, 2026, approximately $3,300 per month for the period commencing January 15, 2026 and ending January 14, 2027, approximately $3,500 per month for the period commencing January 15, 2027 and ending January 14, 2028, approximately $3,600 per month for the period commencing January 15, 2028 and ending January 14, 2029.

The components of the lease expenses consist of the following:

---

| | | |
|:---|:---|:---|
|  | **For the Six Months Ended** | **For the Six Months Ended** |
|  | **June 30, 2025** | **June 30, 2024** |
|  | **US$** | **US$** |
| **Operating lease cost** |  |  |
| Lease expenses | $19774 | $39475 |
| Lease expenses – short-term | 42115 | 26379 |
| **Total lease expenses** | $**61889** | $**65854** |

---

Weighted-average remaining term and discount rate related to leases were as follows:

---

| | | |
|:---|:---|:---|
|  | **As of**<br>**June 30, 2025** | **As of**<br>**December 31, 2024** |
|  | **US$** | **US$** |
| **Weighted-average remaining term** |  |  |
| Operating lease | 3.55 year | 4.04 year |
| **Weighted-average discount rate** |  |  |
| Operating lease | 6.85% | 6.85% |

---

The following table sets forth the Company's minimum lease payments in future periods as of June 30, 2025:

---

| | | | |
|:---|:---|:---|:---|
|  | **Operating lease**<br>**payments** | **Short-term lease**<br>**payments** |<br>**Total** |
|  | **US$** | **US$** | **US$** |
| Twelve months ending June 30, 2026 | $38515 | $25536 | $64051 |
| Twelve months ending June 30, 2027 | 40440 |  | 40440 |
| Twelve months ending June 30, 2028 | 42462 |  | 42462 |
| Twelve months ending June 30, 2029 | 21749 | - | 21749 |
| Total minimum lease payments | 143166 | 25536 | 168702 |
| Less: discount | (16611) | - | (16611) |
| **Present value of minimum lease payments** | 126555 | 25536 | 152091 |
| Less: minimum lease payments, current | (30784) | (25536) | (56320) |
| Minimum lease payments, non-current | $**95771** | $**-** | $**95771** |

---

**Note 11 – Shareholders' equity**

*<u>Class A and B Ordinary shares</u>*

The Company is authorized to issue 90,000,000 shares of Class A Ordinary Shares of par value $0.0005 each and 10,000,000 shares of Class B Ordinary Shares of par value $0.0005 each.

Holders of our Class A Ordinary Shares and Class B Ordinary Shares will have the same rights except for voting and conversion rights. Except for any resolutions to be passed for the purpose of extending the five-year period from the date of issuance of the relevant Class B ordinary shares (subject to any extension) following which such Class B Ordinary Shares shall be automatically and immediately converted into an equal number of Class A Ordinary shares ("Class B Validity Period"), each Class A Ordinary Share shall entitle the holder thereof to one vote on all matters subject to vote at our general meetings and each Class B Ordinary Share shall entitle the holder thereof to five votes on all matters subject to vote at our general meetings. In relation to any resolutions to be passed for the purpose of extending the Class B Validity Period, each Class A Ordinary Share shall entitle the holder thereof to one vote and each Class B Ordinary Share shall entitle the holder thereof to one vote.

Class B Ordinary Shares shall be automatically and immediately converted into an equal number of Class A Ordinary Shares upon (i) the expiration of the Class B Validity Period, and (ii) the transfer of Class B Ordinary Shares. Class A Ordinary Shares are not convertible into Class B Ordinary Shares under any circumstances.

No Class B Ordinary Share shall be transferred within the first two years from the date of its issuance unless prior written consent from all the Directors is obtained. Upon any transfer of Class B Ordinary Shares, such Class B Ordinary Shares shall be converted automatically to Class A Ordinary Shares. Class B Ordinary Shares are valid for 5 years from the date of issuance (the "Class B Validity Period"), after which the Class B Ordinary Shares shall automatically be converted into Class A Ordinary Shares. The Class B Validity Period may be extended for periods of 3 years (the "Extension"). Any Extension must be approved by both the holders of Class A Ordinary Shares and Class B Ordinary Shares by way of an ordinary resolution.

On February 26, 2024, the Company amended its authorized share capital from US$50,000 divided into 5,000,000 ordinary shares of par value US$0.01 each, to US$50,000 divided into 100,000,000 ordinary shares of par value US$0.0005 each of a single class. On September 25, 2024, the authorized share capital of our Company was further amended to US$50,000 divided into 100,000,000 ordinary shares of nominal or par value US$0.0005 each, comprising 90,000,000 Class A Ordinary Shares of par value US$0.0005 each and 10,000,000 Class B Ordinary Shares of par value US$0.0005 each. On September 25, 2024, the Company re-designated the 20 ordinary shares into 20 Class B Ordinary Shares at par value US$0.0005 each.

On September 30, 2024, the Company entered into restructuring agreement with the shareholders of Knorex SG, resulting in the shareholders of Knorex SG becoming 100% shareholders of the Company and the Company now owns 100% of Knorex SG. As part of the Reorganization, the Company has a total of 22,477,825 Class A Ordinary Shares of par value US$0.0005 each and 4,780,575 Class B Ordinary Shares of par value US$0.0005 each. As a result, since incorporation, the Company's outstanding shares have increased from 1 share to become 27,258,400 ordinary shares.

The Company considered the change in its authorized share capital on February 26, 2024 to be a 1-for-20 split of its ordinary shares. The new issuance of an aggregate of 27,258,380 Class A Ordinary Shares of par value US$0.0005 each and Class B Ordinary Shares of par value US$0.0005 each on September 30, 2024 were part of the Reorganization prior to completion of its initial public offering. The Company believed it is appropriate to reflect the above transactions on a retroactive basis similar to stock split or dividend pursuant to ASC 260. All shares and per share amounts used herein and in the accompanying unaudited condensed consolidated financial statements have been retroactively adjusted to reflect the share split.

As of June 30, 2025 and December 31, 2024, the Company has 22,642,538 and 22,477,825 Class A Ordinary Shares issued and outstanding, respectively.

As of June 30, 2025 and December 31, 2024, the Company has 4,780,575 and 4,780,575 Class B Ordinary Shares issued and outstanding.

*<u>Warrants</u>*

On April 1, 2024, the Company issued a total of 251,608 warrants to the Company's Class A Ordinary Shares investors in connection Class A Ordinary Share equity financing. The Company estimates that the fair value of the warrants on the date of grant is US$277,609, using Black-Scholes Model. The fair value of the warrants is estimated using the following assumptions: (1) expected volatility of 56.83% using comparable companies, (2) risk-free interest rate of 4.72%, (3) expected life of 2 years, (4) exercise price of US$3.33 (70% of stock price), and (5) stock price of US$4.75 (the midpoint of the estimated proposed IPO price range of $4.00 and $5.50 per share).

In March 2024, a total of 810,425 warrants were exercised to subscribe for the Company's Class A Ordinary Shares for a total consideration of approximately US$1.3 million.

On October 9, 2024, one of the Company's warrant holders forfeited its exercise rights and cancelled its existing 67,850 warrants.

In January 2025, a batch of 4,527,387 warrants were cancelled and reissued with expiry dates of between March 4, 2026 and December 19, 2027, and exercise price of between US$1.497 and US$2.074. A second batch of 251,608 warrants was cancelled and reissued with exercise price of US$2.60 and expiry date of June 30, 2027 with an additional 170,161 warrants being issued as the previous warrants number were being estimated based upon the estimated IPO price of US$4.75, the midpoint of the estimated proposed IPO price range of $4.00 and $5.50 per share. The Company accounts for these cancellation and reissued warrants as modification of a freestanding equity-classified of warrants as an exchange of the original instrument for a new instrument that is not related to a financing transaction and recognized approximately US$1.2 million of the incremental fair value of the outstanding warrants as a dividend in accordance with ASC 815.

In January 2025, a total of 164,713 warrants were exercised to subscribe for 164,713 Class A Ordinary Shares for a total consideration of approximately US$0.2 million.

In June 2025, a total of 100,000 warrants were issued as part of the consideration of the issuance of short-term third party loans (see Note 7). The total consideration of the fair value of the warrants amounted to approximately US$0.2 million and recognized as debt discount to the short-term third party loans and credited to additional paid-in capital.

The summary of warrants activity is as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Warrants <br> Outstanding** | **Warrants<br> Exercisable** | **Class A<br> Ordinary<br> Shares<br> Issuable** | **Weighted <br> Average <br> Exercise <br> Price** | **Average <br> Remaining <br> Contractual <br> Life (in<br> years)** |
|  | | | | **US$** | |
| December 31, 2023 | 5570275 | 5570275 | 5570275 | $1.66 | 1.63 |
| Granted | 251608 \* | 251608 | 251608 | $3.33 | 2.00 |
| Forfeited |  |  |  | $- |  |
| Exercised | (810425) | (810425) | (810425) | $1.65 |  |
| June 30, 2024 | 5011458 | 5011458 | 5011458 | $1.74 | 1.15 |
| December 31, 2024 | 4943608 | 4943608 | 4943608 | $1.73 | 0.59 |
| Granted | 4949156 | 4949156 | 4949156 | $1.65 | 1.85 |
| Forfeited | (4778995) | (4778995) | (4778995) | $1.73 |  |
| Exercised | (164713) | (164713) | (164713) | $1.65 |  |
| June 30, 2025 | 4949156 | 4949156 | 4949156 | $1.65 | 1.38 |

---

\* The number of warrants were estimated based upon the IPO price of US$4.75, the midpoint of the estimated proposed IPO price range of $4.00 and $5.50 per share.

The outstanding warrants of Knorex SG were swapped over to the Company's warrants upon the effectiveness of the Reorganization as discussed in Note 1.

**Note 12 – Net loss per share**

The Company computes loss per share of Class A Ordinary Shares and Class B Ordinary Shares using the two-class method. Except as voting rights as discussed in Note 11, all other rights, including the liquidation and dividend rights, of the holders of Class A Ordinary Shares and Class B Ordinary Shares are identical. As a result, the undistributed loss for each year is allocated based on the contractual participation rights of the Class A Ordinary Shares and Class B Ordinary Shares as if the earnings for the year had been distributed. As the liquidation and dividend rights are identical, the undistributed earnings are allocated on a proportionate basis.

The following tables set forth the computation of basic and diluted loss per share of Class A Ordinary Shares and Class B Ordinary Shares:

---

| | | |
|:---|:---|:---|
|  | **For the Six Months Ended<br> June 30, 2025** | **For the Six Months Ended<br> June 30, 2025** |
|  | **Class A <br> Ordinary Shares** | **Class B <br> Ordinary Shares** |
|  | **US$** | **US$** |
| Basic and diluted loss per share: |  |  |
| Numerator |  |  |
| Allocation of undistributed loss | $(3813302) | $(805401) |
| Denominator |  |  |
| Number of shares used in per share computation | 22634413 | 4780575 |
| Basic and diluted loss per share | $(0.17) | $(0.17) |

---

---

| | | |
|:---|:---|:---|
|  | **For the Six Months Ended<br> June 30, 2024** | **For the Six Months Ended<br> June 30, 2024** |
|  | **Class A <br> Ordinary Shares** | **Class B <br> Ordinary Shares** |
|  | **US$** | **US$** |
| Basic and diluted loss per share: |  |  |
| Numerator |  |  |
| Allocation of undistributed loss | $(2411140) | $(525394) |
| Denominator |  |  |
| Number of shares used in per share computation | 21939026 | 4780575 |
| Basic and diluted loss per share | $(0.11) | $(0.11) |

---

For the six months ended June 30, 2025, the Company had dilutive securities from the outstanding convertible notes and warrants that are convertible into 1,409,815 and 4,949,156 of the Company's Class A Ordinary Shares, respectively, were not included in the computation of dilutive loss per share because the inclusion of such convertible notes and warrants would be anti-dilutive.

For the six months ended June 30, 2024, the Company had dilutive securities from the outstanding convertible notes and warrants that are convertible into 1,038,146 and 5,011,458 of the Company's Class A Ordinary Shares, respectively, were not included in the computation of dilutive loss per share because the inclusion of such convertible notes and warrants would be anti-dilutive.

The summary of anti-dilutive instruments is as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **Warrants** | **Convertible Notes** | **Total** |
| Common Stock subject to outstanding: |  |  |  |
| For the six months ended June 30, 2025 | 4949156 | 1409815 | 6358971 |
| For the six months ended June 30, 2024 | 5011458 | 1038146 | 6049604 |

---

**Note 13 – Income taxes**

*United States*

Knorex US was incorporated in the State of Delaware and holds its operation in the state of California. Knorex US is subject to a federal income tax rate of 21% and California income tax rate of 8.84%.

*Singapore*

Knorex SG is incorporated in Singapore and is subject to Singapore income tax on the taxable income as reported in its statutory financial statements adjusted in accordance with relevant Singapore tax laws. The applicable tax rate is 17% in Singapore, with 75% of the first US$7,415 (S$10,000) taxable income and 50% of the next US$140,887 (S$190,000) taxable income are exempted from income tax.

*Vietnam*

The Company's subsidiary operating in Vietnam is subject to the Vietnam Income Tax at a standard income tax rate of 20%.

*Other Countries*

The Company's other subsidiaries with operations in other countries (Malaysia, Thailand, Australia, India, and China) are insignificant to its operations for the six months ended June 30, 2025 and 2024.

The United States and foreign components of income (loss) before income taxes were comprised of the following:

---

| | | |
|:---|:---|:---|
|  | **For the Six Months<br> Ended**<br> **June 30, 2025** | **For the Six Months<br> Ended**<br> **June 30, 2024** |
|  | **US$** | **US$** |
| U.S. | $(1632480) | $(796897) |
| Singapore | (2270583) | (1592765) |
| Vietnam | (380993) |  |
| Other Countries | (259254) | (530084) |
| Total loss before income taxes | $(4543310) | $(2919746) |

---

The provision for income taxes consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **For the Six Months<br> Ended**<br> **June 30, 2025** | **For the Six Months<br> Ended**<br> **June 30, 2024** |
|  | **US$** | **US$** |
| Current | $71624 | $16248 |
| Deferred | 3139 | - |
| Provision for income taxes | $74763 | $16248 |

---

The following table reconciles U.S. statutory rates to the Company's effective tax rate:

---

| | | |
|:---|:---|:---|
|  | **For the Six Months Ended**<br> **June 30, 2025** | **For the Six Months Ended**<br> **June 30, 2024** |
| U.S. federal statutory rate | 21.0% | 21.0% |
| State of California statutory rate | 8.8% | 8.8% |
| State of California tax deduction on federal | (1.8)% | (1.8)% |
| Tax rate differential outside of U.S. | (3.3)% | (8.5)% |
| Deferred tax assets relating to valuation allowance | (26.3)% | (20.1)% |
| Effective tax rate | (1.6)% | (0.6)% |

---

The following table sets forth the significant components of the aggregate deferred tax assets of the Company:

---

| | | |
|:---|:---|:---|
|  | **As of** <br> **June 30, 2025** | **As of**<br> **December 31, 2024** |
|  | **US$** | **US$** |
| **Deferred Tax Assets** |  |  |
| Net operating loss carryforwards – U.S. | $6214210 | $5575673 |
| Net operating loss carryforwards – Singapore | 3650526 | 3886272 |
| Net operating loss carryforwards – Other counties | 719100 | 718791 |
| Less: valuation allowance | (10583836) | (10180736) |
| Deferred tax assets, net | $- | $- |

---

As of June 30, 2025 and December 31, 2024, the Company had net operating losses carry forward of approximately US$23.3 million and US$19.9 million, respectively, from the Company's U.S. subsidiaries. The net operating losses can be carried forward indefinitely. Due to the Company's U.S. subsidiaries have been operating at losses, the Company is uncertain when these net operating losses can be utilized. As a result, the Company provided a 100% allowance on deferred tax assets on net operating losses of approximately US$6.2 million and US$5.6 million related to U.S. subsidiary as of June 30, 2025 and December 31, 2024, respectively.

As of June 30, 2025 and December 31, 2024, the Company and its Singapore subsidiary had net operating losses carry forward of approximately US$23.8 million and US$22.9 million, respectively, from the Company and its Singapore subsidiary. The net operating losses from the Company and its Singapore subsidiary can be carried forward indefinitely. Due to the Company and its Singapore subsidiary have been operating at losses, the Company is uncertain when these net operating losses can be utilized. As a result, the Company provided a 100% allowance on deferred tax assets on net operating losses of approximately US$3.7 million and US$3.9 million related the Company and its Singapore as of June 30, 2025 and December 31, 2024, respectively.

Uncertain tax positions

The Company evaluates each uncertain tax position (including the potential application of interest and penalties) based on the technical merits, and measures the unrecognized benefits associated with the tax positions. As of December 31, 2024 and 2023, the Company did not have any significant unrecognized uncertain tax positions. The Company did not incur interest and penalties tax for the six months ended June 30, 2025 and 2024.

**Note 14 – Concentrations of risks**

(a) Major customers

For the six months ended June 30, 2025, one customer accounted for approximately 58.4% of the Company's total revenues, which was individually more than 10% of the Company's total revenues. For the six months ended June 30, 2024, one customer accounted for approximately 69.6% of the Company's total revenues, which was individually more than 10% of the Company's total revenues.

(b) Major vendors

For the six months ended June 30, 2025, two vendors accounted for approximately 53.4% and 18.1% of the Company's total purchases, which were individually more than 10% of the Company's total purchases. For the year ended June 30, 2024, three vendors accounted for approximately 40.8%, and 18.7% and of the Company's total purchases, which were individually more than 10% of the Company's total purchases.

(c) Credit risk

Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash. The Federal Deposit Insurance Corporation (FDIC) standard insurance amount is up to US$250,000 per depositor per insured bank. As of June 30, 2025 and December 31, 2024, the Company had cash balance of approximately US$49,000 and US$0.5 million, was maintained at banks in the United States, nil and of approximately US$55,000 was subject to credit risk, respectively. While management believes that these financial institutions are of high credit quality, it also continually monitors their credit worthiness.

The Singapore Deposit Insurance Corporation Limited (SDIC) insures deposits in a Deposit Insurance (DI) Scheme member bank or finance company up to approximately US$56,788 (S$75,000) per account. This was raised to US$75,717 (S$100,000) with effect from 1 April 2024. As of June 30, 2025 and December 31, 2024, the Company had cash balance of approximately US$5,000 and US$48,000 was maintained at DI Scheme banks in Singapore, of which nil was subject to credit risk.

The Company's cash balance in other countries (Malaysia, Thailand, Vietnam, Australia, India, and China) are insignificant to its operations as of June 30, 2025 and December 31, 2024.

The Company is also exposed to risk from accounts receivable and other receivables. These assets are subjected to credit evaluations. An allowance has been made for estimated unrecoverable amounts which have been determined by reference to past default experience and the current economic environment.

**Note 15 – Commitments and contingencies**

Legal contingencies

From time to time, the Company is party to certain legal proceedings, as well as certain asserted and unasserted claims. Amounts accrued, as well as the total amount of reasonably possible losses with respect to such matters, individually and in aggregate, are not deemed to be material to the unaudited condensed consolidated financial statements.

**Note 16 – Segment information**

The Company operates as one operating segment, which primarily focuses on platform subscription fee, platform services, managed activations, and professional services. The Company's chief executive officer is the chief operating decision-maker ("CODM"), manages and allocates resources to the operations of the Company on an entity-wide basis based on the U.S. and International (Singapore, Malaysia, Vietnam and India).

Disaggregated information of revenues by services is as follows:

---

| | | |
|:---|:---|:---|
|  | **For the Six Months Ended** | **For the Six Months Ended** |
|  | **June 30, 2025** | **June 30, 2024** |
|  | **US$** | **US$** |
| Platform subscription fee | $1219089 | $2260744 |
| Platform services | 1599347 | 3140050 |
| Managed activations and professional services | 7945 | 96624 |
| **Total revenues** | $**2826381** | $**5497418** |

---

---

| | | |
|:---|:---|:---|
|  | **For the Six Months Ended** | **For the Six Months Ended** |
|  | **June 30, 2025** | **June 30, 2024** |
|  | **US$** | **US$** |
| U.S. | $2538797 | $5354683 |
| International | 287584 | 142735 |
| **Total revenues** | $**2826381** | $**5497418** |

---

In addition, the key measure of segment profitability that the CODM uses to allocate resources and assess performance is net loss, as reported on the statements of operations. The following table presents the significant revenue and expense categories of the Company's single operating segment:

---

| | | |
|:---|:---|:---|
|  | **For the Six Months Ended** | **For the Six Months Ended** |
|  | **June 30, 2025** | **June 30, 2024** |
|  | **US$** | **US$** |
| Revenue | $2826381 | $5497418 |
| Media costs | (1433488) | (2973455) |
| Data costs | (475048) | (687358) |
| Infrastructure costs | (622840) | (676410) |
| Salary and benefits costs | (2282661) | (2256910) |
| Amortization of capitalized software development costs | (382931) | (401555) |
| Other cost of revenue | (5167) | (33757) |
| Other platform operations expenses | (269416) | (264160) |
| Other sales and marketing expenses | (179701) | (273637) |
| Other technology and development expenses | (203054) | (201199) |
| Other general and administrative expenses | (600020) | (537891) |
| Other segment expenses (income) | (915365) | (110832) |
| Provision for income taxes | (74763) | (16248) |
| **Net loss** | $**(4618073)** | $**(2935994)** |

---

**Note 17 – Subsequent events**

The Company evaluated subsequent events and transactions that occurred after the date of these unaudited condensed consolidated financial statements were issued. Based on this review, except as disclosed below, the Company did not identify any other subsequent events that would require adjustment or disclosure in the unaudited condensed consolidated financial statements.

Initial Public Offering

On October 1, 2025, the Company closed of its initial public offering of an aggregate of 3,000,000 Class A ordinary shares at a public offering price of $4.00 per share for aggregate gross proceeds of $12.0 million, prior to deducting underwriting discounts and other offering expenses.

## Exhibit 99.2

**Exhibit 99.2**

**OPERATING AND FINANCIAL REVIEW AND PROSPECTS**

**IN CONNECTION WITH THE UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED JUNE 30, 2025 AND 2024**

In this report, as used herein, and unless the context suggests otherwise, the terms "KNOREX," "Company," "we," "us" or "ours" refer to the combined business of KNOREX Ltd., its subsidiaries and other consolidated entities. References to "dollar" and "$" are to U.S. dollars, the lawful currency of the United States. References to "SEC" are to the Securities and Exchange Commission.

You should read the following discussion and analysis of our financial condition and results of operations in conjunction with our unaudited condensed consolidated financial statements and the related notes included elsewhere in this Report on Form 6-K and with the discussion and analysis of our financial condition and results of operations contained in our prospectus on Form F-1 for the fiscal year ended December 31, 2024 filed with the Securities and Exchange Commission on September 22, 2025 (the "September 2025 Form F-1"). This discussion may contain forward-looking statements based upon current expectations that involve risks and uncertainties. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of various factors, including those identified elsewhere in this report on Form 6-K, and those listed in the September 2025 Form F-1 under "Risk Factors" or in other parts of the September 2025 Form F-1.

**Results of Operations** 

The following tables set forth a summary of our consolidated results of operations for the periods indicated. This information should be read together with our consolidated financial statements and related notes included elsewhere in this prospectus. The operating results in any period are not necessarily indicative of the results that may be expected for any future period.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the Six Months Ended June 30,** | **For the Six Months Ended June 30,** | **For the Six Months Ended June 30,** | **For the Six Months Ended June 30,** |
|  | **2025** | **2024** |<br>**Change** | **Percentage**<br>**Change** |
|  | **US$** | **US$** | **US$** | % |
| Revenue | $2826381 | $5497418 | $(2671037) | (48.6) |
| Cost of revenue | (1547272) | (3268901) | (1721629) | (52.7) |
| Gross profit | 1279109 | 2228517 | (949408) | (42.6) |
| Platform operations expenses | (1383969) | (1510882) | (126913) | (8.4) |
| Sales and marketing expenses | (1353208) | (1469603) | (116395) | (7.9) |
| Technology and development expenses | (1232040) | (1203894) | 28146 | 2.3 |
| General and administrative expenses | (937837) | (853052) | 84785 | 9.9 |
| Loss from operations | (3627945) | (2808914) | 819031 | 29.2 |
| Total other expense, net | (915365) | (110832) | 804533 | 725.9 |
| Loss before income taxes | (4543310) | (2919746) | 1623564 | 55.6 |
| Provision for income taxes | 74763 | 16248 | 58515 | 360.1 |
| Net loss | (4618073) | (2935994) | 1682079 | 57.3 |
| Less: Net (income) loss attributable to noncontrolling interest | (630) | (540) | 90 | 16.7 |
| Net loss attributable to KNOREX Ltd. | $(4618703) | $(2936534) | $(1682169) | 57.3 |

---

**Comparison of Results of Operations**

***Six months ended June 30, 2025 compared to six months ended June 30, 2024***

***Revenue***

For the six months ended June 30, 2025 and 2024, we derived our revenue primarily from platform subscription fees, platform services fees, managed activations and professional services.

The following tables set forth the breakdown of our revenue by service lines for the periods indicated:

---

| | | |
|:---|:---|:---|
|  | **For the Six Months Ended June 30,** | **For the Six Months Ended June 30,** |
|  | **2025** | **2024** |
|  | **US$** | **US$** |
| **Revenue:** |  |  |
| Platform subscription fee | $1219089 | $2260744 |
| Platform services fees | 1599347 | 3140050 |
| Managed activations and professional services | 7945 | 96624 |
| **Total** | $**2826381** | $**5497418** |

---

The following tables set forth the breakdown of our revenue by regions for the periods indicated:

---

| | | |
|:---|:---|:---|
|  | **For the Six Months Ended June 30,** | **For the Six Months Ended June 30,** |
|  | **2025** | **2024** |
|  | **US$** | **US$** |
| **Revenue:** |  |  |
| U.S. operation | $2538797 | $5354683 |
| International operation | 287584 | 142735 |
| **Total** | $**2826381** | $**5497418** |

---

Our revenue decreased by 48.6% from US$5.5 million for the six months ended June 30, 2024 to US$2.9 million for the six months ended June 30, 2025, primarily due to the decrease of US$2.8 million in our revenue generated from our U.S. operation from US$5.4 million in 2024 to US$2.6 million in 2025, which is slightly offset by the increase of US$0.1 million of our revenue generated from our international operation from US$0.1 million in 2024 to US$0.3 million. The decrease in our U.S. revenue is primarily due to the reduction in revenue driven by new U.S. import tariffs imposed on our customers' end-clients which affected their operations and advertising spending.

The table below sets forth our selected operating data for the periods indicated:

---

| | | |
|:---|:---|:---|
|  | **For the Six Months Ended June 30,** | **For the Six Months Ended June 30,** |
|  | **2025** | **2024** |
| Number of customers<sup>(1)</sup> | 20 | 25 |
| Average revenue per customer (US$)<sup>(2)</sup> | 141319 | 219897 |
| Revenue from self-serve (includes add-ons) (%) | 99.7 | 98.2 |
| Revenue from managed activations and professional services (%) | 0.3 | 1.8 |

---

Notes:

&nbsp;&nbsp;&nbsp;&nbsp;(1) "Customer"
 refers to any entity that enters into a contract with us, typically an advertising agency
 or a corporate entity. To be classified as a Customer, the party must have a cumulative contract
 value exceeding US$3,000 between January 1 and June 30 of the respective period. The advertiser
 (defined as the Customer's client) is the end user or ultimate buyer of the advertisement.

&nbsp;&nbsp;&nbsp;&nbsp;(2) Average
 revenue per customer is calculated as the total revenue for the year divided by the total
 number of customers for the same period. Our management use this metric as a measure to assess
 the overall progress and direction of our business, as well as to select and pursue customers
 who can keep pace with our growth.

As some of our key customers' end clients are in the automotive verticals and they are negatively impacted by the U.S. import tariffs, hence resulting in slower demand from customers. In the six months ended June 30, 2025, we saw a decrease of customer count of approximately 20.0%, from 25 for the six months ended June 30, 2024, to 20 for the six months ended June 30, 2025. Meanwhile, the average revenue per customer has decreased from US$219,897 to US$141,319, an approximate 35.7% decline during the same period.

***Cost of Revenue***

Our cost of revenue is primarily the cost to acquire advertisement media sources, advertisement data sources and advertisement related technology features.

Our cost of revenue decreased by 52.7% from US$3.3 million for the six months ended June 30, 2024 to US$1.5 million for the six months ended June 30, 2025, primarily due to the decrease in purchase and usage of advertisement media sources, advertisement data sources and advertisement related technology features. The decrease is consistent with the revenue decrease of our platform services.

***Gross Profit***

We recorded a gross profit of US$2.2 million for the six months ended June 30, 2024, as compared to US$1.3 million for the six months ended June 30, 2025. The decrease is consistent with the revenue decrease of our platform services.

Our gross profit margin is primarily determined by the type of platform services our customers utilize. For the six months ended June 30, 2025, more customers began to use our higher margin platform services offerings, including data and AI features for automation. As a result, our gross profit margin improved from 40.5% for the six months ended June 30, 2024 to 45.3% for the six months ended June 30, 2025.

***Operating Expenses***

Our operating expenses include sales and marketing expenses, platform operations expenses, technology and development expenses, general and administrative expenses. We allocate overhead such as information technology infrastructure, rent and occupancy charges based on headcount for all these categories.

The following tables set forth components of our operating expenses for the periods indicated:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the Six Months Ended June 30,** | **For the Six Months Ended June 30,** | **For the Six Months Ended June 30,** | **For the Six Months Ended June 30,** |
|  | **2025** | **2025** | **2024** | **2024** |
|  | **US$** | **%** | **US$** | **%** |
| Platform operations expenses | $1383969 | 28.2 | $1510882 | 30.0 |
| Sales and marketing expenses | 1353208 | 27.6 | 1469603 | 29.2 |
| Technology and development expenses | 1232040 | 25.1 | 1203894 | 23.9 |
| General and administrative expenses | 937837 | 19.1 | 853052 | 16.9 |
| **Total** | $**4907054** | **100.0** | $**5037431** | **100.0** |

---

Our total operating expenses decreased by 2.6% from US$5.0 million for the six months ended June 30, 2024 to US$4.9 million for the six months ended June 30, 2025, primarily due to the decrease of US$0.1 million in platform operations expenses and the decrease of US$0.1 million in sales and marketing expenses, offset by the increase of US$28,000 in technology and development expenses and the increase of US$0.1 million in general and administrative expenses.

● *Platform operations expenses*. Our platform operations expenses decreased by 8.4% from US$1.5 million for the six months ended June 30, 2024 to US$1.4 million for the six months ended June 30, 2025, primarily due to the decrease in infrastructure costs of approximately US$54,000 as a result of implementing our cost optimization plan. Our platform operation expenses as a percentage of operating expenses were 28.2% for the six months ended June 30, 2025, as compared with 30.0% for the six months ended June 30, 2024.

● *Sales and marketing expenses*. Our selling expenses decreased by 7.9% from US$1.5 million for the six months ended June 30, 2024 to US$1.4 million for the six months ended June 30, 2025, primarily due to the decrease in our staff commission of US$0.1 million as we reduced travel costs while we experiment with the use of AI tools to drive up efficiency for our sales and marketing activities. Our sales and marketing expenses as a percentage of operating expenses was 27.6% for the six months ended June 30, 2025, as compared with 29.2% for the six months ended June 30, 2024.

● *Technology and development expenses*. Our technology and development expenses increased by 2.3% from US$1.20 million for the six months ended June 30, 2024 to US$1.23 million for the six months ended June 30, 2025. This slight increase was primarily due to the increase in amortization expenses of capitalized software development costs of approximately US$18,000 as we continue to increase our technology and development personnel costs to upgrade and to enhance the functionality of our XPO platform. Our technology and development expenses as a percentage of operating expenses was 25.1% for the six months ended June 30, 2025, as compared with 23.9% for the six months ended June 30, 2024.

● *General and administrative expenses*. Our general and administrative expenses increased by 9.9% from US$0.85 million for the six months ended June 30, 2024 to US$0.9 million for the six months ended June 30, 2025, mainly driven by an increase in consultancy, professional fees and statutory audit fees of approximately US$0.1 million. Our general and administrative expenses as a percentage of operating expenses was 19.1% for the six months ended June 30, 2025 as compared with 16.9% for the six months ended June 30, 2024.

 ****

***Other Expense, Net***

The following table sets forth the breakdown of our other expense, net for the periods indicated:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the Six Months Ended June 30,** | **For the Six Months Ended June 30,** | **For the Six Months Ended June 30,** | **For the Six Months Ended June 30,** |
|  | **2025** | **2024** |<br>**Change** | **Percentage**<br>**Change** |
|  | **US$** | **US$** | **US$** | % |
| Interest expense | (858205) | (34928) | (823277) | 2357.1 |
| Stock compensation expense |  | (277609) | 277609 | (100.0) |
| Amortization of discount on debt instrument | (137662) | (14230) | (123432) | 867.4 |
| Foreign exchange (loss) gain, net | (18141) | 210730 | (228871) | (108.6) |
| Other income, net | 98643 | 5205 | 93438 | 1795.2 |
| Total other expense, net | (915365) | (110832) | (804533) | 725.9 |

---

● *Interest expense*. Our interest expense increased by 2,357.1% from approximately US$35,000 for the six months ended June 30, 2024 to approximately US$0.9 million for the six months ended June 30, 2025, primarily due to the increase in our short term loans and convertible loans that we entered into in April, May, August and November 2024. As of the issuance date of these accompanying unaudited condensed consolidated financial statements, these short term loans have been repaid partially.

● *Stock compensation expense.* Our stock compensation expense decreased from approximately US$0.3 million for the six months ended June 30, 2024 to nil for the six months ended June 30, 2025, as there was no new issuance of equity instruments that were recognized as stock compensation expense during the six months ended June 30, 2025.

● *Amortization of discount on debt instrument.* Our amortization of discount on debt instrument increased by 867.4% from approximately US$14,000, for the six months ended June 30, 2024 to approximately US$0.1 million for the six months ended June 30, 2025, primarily due to the new warrants issued in June 2025 in connection with our debt instrument which we amortized the discount over the term of our debt instrument.

● *Foreign exchange (loss) gain, net*. Our foreign exchange gain decreased by 108.6% from foreign exchange gain of approximately US$0.2 million for the six months ended June 30, 2024 to foreign exchange loss of approximately US$18,000 for the six months ended June 30, 2025. The decrease in which was primarily a result of the exchange rate fluctuation between the dates of the transaction and the balance sheet date with transactions denominated in currencies other than our or our subsidiaries' functional currency.

● *Other income, net*. Our other income increased from approximately US$5,000 for the six months ended June 30, 2024 to approximately US$98,000 for the six months ended June 30, 2025, primarily due to the increase in government grant we received.

***Provision for Income Taxes***

Our provision for income taxes increased from approximately US$16,000 for the year ended June 30, 2024 to approximately US$75,000 for the six months ended June 30, 2025, resulted from the increase in our net income before tax from our profitable subsidiaries in the six months ended June 30, 2025 as compared to the same period in 2024.

***Net Loss***

As a result of the foregoing, our net loss was US$4.6 million for the six months ended June 30, 2025 and US$2.9 million for the year ended June 30, 2024.

**Liquidity and Capital Resources**

Our primary source of liquidity historically has been cash generated from our business operations, bank loans, proceeds from conversion price of convertible notes upon conversion into its ordinary shares, and equity financing, which have historically been sufficient to meet our working capital and capital expenditure requirements.

In March 2023, we completed our equity financing through the issuance of shares for approximately US$3.7 million. In November 2023, we completed additional equity financing through the issuance of shares for approximately US$4.5 million. Between November 2023 and March 2024, we received a total consideration of approximately US$1.8 million from the exercise of warrants to subscribe for our ordinary shares. In April 2024, we completed our convertible notes offering and raised approximately US$1.6 million. Between July 2024 and January 2025, we further raised US$2.5 million of short-term loans from third parties and related parties. In January 2025, we received a total consideration of approximately US$0.2 million from the exercise of warrants to subscribe for our ordinary shares. We also expect to use net proceeds from this offering to support our working capital and capital expenditure requirements.

Between February 2025 and June 2025, we raised US$1.6 million of short-term debt financing from third parties, related parties, and existing investors, with maturities in September 2025. Two of the lenders further subscribed for approximately US$0.1 million convertible notes. In May 2025, we also obtained an additional US$0.2 million from a US-based bank.

In May 2025, we secured approximately US$1.0 million in short-term debt financing from an existing investor, maturing in September 2025, subject to a one-time interest charge of 10%. In connection with this financing, we issued 100,000 warrants to the investor, exercisable at US$2.6 per share and expiring in June 2027.

In July and August 2025, we secured additional US$0.8 million of short-term debt financing from existing investors with maturity in September 2025.

In October 2025, we closed our initial public offering of an aggregate of 3,000,000 Class A ordinary shares at a public offering price of $4.00 per share for aggregate gross proceeds of $12.0 million, prior to deducting underwriting discounts and other offering expenses.

We had a working capital deficit of approximately US$11 million as of June 30, 2025. This raises substantial doubt about our ability to continue as a going concern.

To sustain our ability to support our operating activities, we considered supplementing our sources of funding through the following:

● Equity financing;

● Debt financing through issuance of convertible notes; and

● Other available sources of financing from banks or other financial institutions.

In October 2025, we completed our its initial public offering with gross proceeds of $12.0 million. Management has commenced a strategy to raise debt and equity. However, there can be no certainty that these additional financings will be available on acceptable terms or at all. If management is unable to execute this plan, there will likely be a material adverse effect on our business. All these factors raise substantial doubt about the ability of us to continue as a going concern.

The unaudited condensed consolidated financial statements do not include any adjustments that might be necessary if we are unable to continue as a going concern.

The following tables set forth our selected consolidated cash flow data for the periods indicated:

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| | | |
|:---|:---|:---|
|  | **For the Six Months Ended June 30,** | **For the Six Months Ended June 30,** |
|  | **2025** | **2024** |
|  | **US$** | **US$** |
| Net cash used in operating activities | (2759308) | (3439549) |
| Net cash used in investing activities | (405779) | (445057) |
| Net cash provided by financing activities | 2730062 | 2798422 |
| Effect of exchange rate changes | (178710) | (70582) |
| **Net change in cash and cash equivalents** | (613735) | (1156766) |
| Cash and cash equivalents, at the beginning of period | 824728 | 1862781 |
| **Cash and cash equivalents, at the end of period** | 210993 | 706015 |

---

**Operating Activities** 

Net cash used in operating activities for the six months ended June 30, 2025 was US$2.8 million, primarily reflecting our net loss of US$4.6 million and a decrease of US$0.6 million in accounts payable due to timely payments; which was offset by non-cash expense of depreciation, amortization of discount on debt instrument, amortization of capitalized software development costs, and recovery of credit losses of approximately US$0.5 million, the decrease of US$1.2 million in accounts receivable as a result of a better collection effect during the period, the decrease in other receivables of US$0.2 million as a result of decreased refundable deposits from third party service providers, and the increase of US$0.5 million in other payables and accrued liabilities as a result of increased accrued interest expense and professional fees.

Net cash used in operating activities for the six months ended June 30, 2024 was US$3.4 million, primarily reflecting our net loss of US$3.0 million, an increase of US$0.4 million in accounts receivable primarily due to higher outstanding customer billings; a decrease of US$0.2 million in accounts payable due to timely payments; a decrease of US$0.4 million in other payables and accrued liabilities as a result of decreased accrued payroll and professional fees; which was offset by non-cash expenses of depreciation, amortization of discount on debt instrument, amortization of capitalized software development costs, stock compensation expense, and allowance for credit losses of approximately US$0.9 million.

**Investing Activities** 

Net cash used in investing activities was approximately US$0.4 million for the six months ended June 30, 2025, which was primarily attributable to the purchase of office equipment of approximately US$10,000 and capitalized software development costs of approximately US$0.4 million.

Net cash used in investing activities was approximately US$0.4 million for the six months ended June 30, 2024, which was primarily attributable to the purchase of office equipment of approximately US$10,000 and capitalized software development costs of approximately US$0.4 million.

**Financing Activities** 

Net cash provided by financing activities was US$2.7 million for the six months ended June 30, 2025, which was mainly attributable to the proceeds from short-term loan – third parties of US$3.0 million, proceeds from convertible notes of US$0.3 million, proceeds from short-term loan – related parties of US$0.2 million, proceeds from exercise of warrants of US$0.2 million, and offset by the payments of deferred offering costs of US$0.4 million, repayments of long-term bank loans of US$0.2 million, repayments of short-term loan – third parties of US$0.2 million and repayment of short-term loan – related parties of US$0.1 million

Net cash provided by financing activities was US$2.8 million for the six months ended June 30, 2024, which was mainly attributable to the proceeds from exercise of warrants of US$1.3 million, proceeds from convertible notes of US$1.6 million, proceeds from short-term loan- related parties of approximately US$81,000, and offset by the repayments of long-term bank loans of US$0.2 million and payments of deferred offering costs of approximately US$55,000.

**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; (iii) inadequate supervision and review over recordkeeping, leading to misstatements of some items in the income and balance sheet statements; and (iv) lack of sufficient financial reporting and accounting personnel with appropriate knowledge of U.S. GAAP and SEC reporting requirements to properly address certain accounting issues, and to prepare and review financial statements and related disclosures in accordance with U.S. GAAP and SEC reporting requirements.

We have taken initiatives to improve our internal control over financial reporting to address the underlying causes of these material weaknesses, including (i) hired more qualified accounting staff and strengthening our supervision of recordkeeping; (ii) providing our relevant finance staff with appropriate training regarding requirements of U.S. GAAP and hiring additional personnel who are equipped with relevant U.S. GAAP and SEC reporting experience; (iii) engaged an external consulting firm to assist us with assessing our Sarbanes-Oxley compliance readiness and improving overall internal controls; and (vi) appointed our board members with the relevant experiences to govern and oversee the audit and finance functions.

However, we cannot assure you that we will complete the implementation of these measures in a timely manner. See "Risk Factors – Risks Relating to Our Business and Industry – We have identified four and three material weaknesses in our internal control over financial reporting as of December 31, 2024 and December 31, 2023, respectively. If we fail to implement and maintain an effective system of internal control over financial reporting, we may be unable to accurately report our results of operations, meet our reporting obligations or prevent fraud, and investor confidence and the market price of our shares may be materially and adversely affected." In addition, our shares may not be able to remain listed on the NYSE American Market if we are unable to meet the requirements of Section 404 such as that we include a report of management on our internal control over financial reporting in our annual report on Form 20-F beginning with our annual report beginning with our second annual report on Form 20-F. In addition, once we cease to be an "emerging growth company" as such term is defined under the JOBS Act, our independent registered public accounting firm must attest to and report on the effectiveness of our internal control over financial reporting.

We will be subject to the requirement that we maintain internal controls and that management perform periodic evaluation of the effectiveness of the internal controls. Effective internal control over financial reporting is important to prevent fraud. As a result, our business, financial condition, results of operations and prospects, as well as the market for and trading price of our Class A Ordinary Shares, may be materially and adversely affected if we do not have effective internal controls. We may not discover any problems in a timely manner and current and potential shareholders could lose confidence in our financial reporting, which would harm our business and the trading price of our Class A Ordinary Shares. The absence of internal controls over financial reporting may inhibit investors from purchasing our Class A Ordinary Shares and may make it more difficult for us to raise funds in a debt or equity financing. Additional material weaknesses or significant deficiencies may be identified in the future. If we identify such issues or if we are unable to produce accurate and timely financial statements, our share price may decline, and we may be unable to maintain compliance with the NYSE American Listing Rules.

In addition, our internal control over financial reporting will not prevent or detect all errors and all fraud. A control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that the control system's objectives will be met. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that misstatements due to error or fraud will not occur or that all control issues and instances of fraud will be detected.

During the course of documenting and testing our internal control procedures, in order to satisfy the requirements of Section 404, we may identify other weaknesses and deficiencies in our internal control over financial reporting. In addition, if we fail to maintain proper and effective internal control over financial reporting, as these standards are modified, supplemented, or amended from time to time, we may not be able to conclude on an ongoing basis that we have effective internal control over financial reporting in accordance with Section 404. If we fail to achieve and maintain an effective internal control environment, we could suffer material misstatements in our financial statements and fail to meet our reporting obligations, which would likely cause investors to lose confidence in our reported financial information. This could in turn limit our access to capital markets, harm our results of operations, and lead to a decline in the trading price of our Class A Ordinary Shares. Additionally, ineffective internal control over financial reporting could expose us to increased risk of fraud or misuse of corporate assets and subject us to potential delisting from the stock exchange on which we list, regulatory investigations and civil or criminal sanctions. We may also be required to restate our financial statements from prior periods.

As a company with less than US$1.235 billion in revenue for our last fiscal year, we qualify as an "emerging growth company" pursuant to the JOBS Act. An emerging growth company may take advantage of specified reduced reporting and other requirements that are otherwise applicable generally to public companies. These provisions include exemption from the auditor attestation requirement under Section 404 of the Sarbanes-Oxley Act of 2002, in the assessment of the emerging growth company's internal control over financial reporting. The JOBS Act also provides that an emerging growth company does not need to comply with any new or revised financial accounting standards until such date that a private company is otherwise required to comply with such new or revised accounting standards. We have elected to take advantage of the benefits of this extended transition period provided under the JOBS Act for complying with new or revised accounting standards. As a result, our operating results and financial statements may not be comparable to the operating results and financial statements of other companies who have adopted the new or revised accounting standards.

**Statement Regarding Unaudited Financial Information**

The unaudited financial information set forth above is subject to adjustments that may be identified when audit work is performed on the Company's year-end financial statements, which could result in significant differences from this unaudited financial information.

## Exhibit 99.3

**Exhibit 99.3**

**KNOREX Provides Year-End Business Update Highlighting Record Ad Spend in Q4 and Accelerating Commercial Momentum**

**Sunnyvale, CA and Singapore– December XX, 2025** – KNOREX Ltd. (NYSE American: KNRX) ("KNOREX" or the "Company"), a leading provider of AI-driven programmatic online advertising products and solutions, today provided a year-end business update highlighting significant commercial progress, including one of the strongest quarters of ad spend transacted through XPO in the Company's history, as it executes on growth initiatives following its successful NYSE American listing in September. In connection with this update, the Company is also filing a Form 6-K reporting its unaudited interim financial results for the six months ended June 30, 2025.

KNOREX ended 2025 with an increasingly diversified customer base and strong sales pipeline, reflecting heightened demand for its proprietary AI-powered XPO platform across both agency and direct-to-advertiser channels. Following the completion of its IPO, the Company invested incremental capital into sales, marketing, and go-to-market initiatives, and is now seeing tangible results from those investments in the form of expanded engagement activity and growing qualified pipeline opportunities.

The Company is currently in advanced discussions with several leading advertising agencies and enterprises, where KNOREX is demonstrating materially improved campaign efficacy and meaningful improvements in return on ad spend (ROAS) for clients that transition spend onto the XPO platform. These discussions reflect growing recognition of KNOREX's ability to simplify cross-channel execution while delivering measurable performance gains in an increasingly complex digital advertising environment.

For the six months ended June 30, 2025, as reported in the Company's Form 6-K filed concurrently with this press release, revenue declined year over year. The decrease was primarily attributable to one customer that experienced the loss of a major end client during the period. Following this event, the Company focused on diversifying its customer base and strengthening its client relationships. These efforts are intended to build a more resilient business foundation for the future.

"2025 was a foundational year for KNOREX," said Justin Choo, Chairman and Chief Executive Officer. "With our NYSE American listing completed, we shifted from IPO execution to growth execution. We are now investing aggressively in sales and marketing, sharpening our focus on target customers, and seeing a strong increase in qualified pipeline activity. While revenues during the first half of 2025 were impacted by client-specific dynamics at one partner, the broader demand signals for our platform are stronger than ever."

With its IPO completed and additional capital in place, KNOREX expects 2026 to be a year of accelerated growth as pipeline opportunities convert and existing customers scale. The Company believes it is well positioned to capture a meaningful share of the rapidly expanding global digital advertising market while delivering long-term value to shareholders.

Additional information regarding KNOREX's unaudited interim financial results for the six months ended June 30, 2025, is included in the Company's Form 6-K filed with the U.S. Securities and Exchange Commission concurrently with this press release.

**About KNOREX**

Founded in 2009, KNOREX is a B2B technology company that provides AI-driven cross-channel programmatic advertising products and solutions designed to simplify online advertising for businesses. The Company's flagship platform, KNOREX XPO<sup>sm</sup>, is an AI-powered, cloud-based advertising technology platform that enables marketers to efficiently plan, orchestrate, and optimize cross-channel ad campaigns across a diverse range of digital media, including social media, search, CTV/OTT, video, audio, display, native, and digital-out-of-home (DOOH) advertising.

By leveraging advanced AI/ML-driven automation, XPO enables advertisers to enhance campaign performance, reduce wasted ad spend, and scale their marketing efforts while maintaining efficiency and transparency. The platform addresses the growing complexity of online advertising by centralizing campaign execution and analytics into a unified, data-driven workflow.

KNOREX serves global enterprises and agencies across multiple industries, helping them navigate the rapidly evolving online advertising landscape with automated, intelligent, and data-driven solutions. The Company has operations in the United States, Vietnam, India, Malaysia, and Singapore.

For additional information, please visit <u>www.knorex.com</u>.

**FORWARD-LOOKING STATEMENTS**

Certain statements in this press release are "forward-looking statements" as defined under the federal securities laws. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company's current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy, and financial needs. Investors can find many (but not all) of these statements by the use of words such as "believe," "plan," "expect," "intend," "should," "seek," "estimate," "will," "aim," and "anticipate," or other similar expressions in this press release. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company's registration statement and other filings with the SEC.

**Contact:**

Crescendo Communications, LLC

212-671-1020

KNRX@crescendo-ir.com