The application was lodged by the Australian Tax Office in March following the company's non-payment of tax.
On June 23, a Federal Court registrar for the New South Wales district directed KnowIT to be wound up and liquidators, Steven Nichols, appointed.
KnowIT produces Web-based knowledge management software. Former owner and director, Michael Lacie, said its cash flow problem had been caused by a slower development cycle.
He claimed the ATO was its only creditor.
"In the past our developers had not acted professionally and the software was missing back-end components. It had to be redeveloped, with different modules reworked," Lacie said. "This meant our other projects were not completed on time.