Company: LICN
Filing Date: 2025-04-29
Form Type: 20-F
Source: 0001213900-25-036244
Chunk: 41

Company: Lichen International Ltd
Filing Date: 2025-04-29
Form: 20-F
Item: Item 4A
Chunk 41
---
 PRC subsidiaries or any newly formed
ones incur debt on their own behalf in the future, the instruments governing their debt may restrict their ability to pay dividends to
us.

Inflation

To date, inflation in the
PRC has not materially impacted our results of operations. However, we can provide no assurance that we will not be affected in the future
by higher rates of inflation in the PRC. For example, certain operating costs and expenses, such as employee compensation and office operating
expenses may increase as a result of higher inflation. Additionally, because a substantial portion of our assets consists of cash and
short-term investments, high inflation could significantly reduce the value and purchasing power of these assets. We are not able to hedge
our exposure to higher inflation in China.

Item
6. Directors, Senior Management and Employees