Company: LICN
Filing Date: 2025-01-29
Form Type: 424B5
Source: 0001213900-25-007741
Chunk: 78

Company: Lichen International Ltd
Filing Date: 2025-01-29
Form: 424B5
Chunk 78
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ating
Holding Foreign Companies Accountable Act, and on December 29, 2022, legislation entitled “Consolidated Appropriations Act,
2023” (the “Consolidated Appropriations Act”) was signed into law by President Biden, which contained, among other things,
an identical provision to the Accelerating Holding Foreign Companies Accountable Act and amended the HFCAA by requiring the SEC to prohibit
an issuer’s securities from trading on any U.S stock exchanges if its auditor is not subject to PCAOB inspections for two consecutive years
instead of three, thus reducing the time period for triggering the prohibition on trading. On August 26, 2022, the PCAOB announced
that it had signed a Statement of Protocol (the “SOP”) with the China Securities Regulatory Commission and the Ministry of
Finance of China. The SOP, together with two protocol agreements governing inspections and investigations (together, the “SOP Agreement”),
establishes a specific, accountable framework to make possible complete inspections and investigations by the PCAOB of audit firms based
in mainland China and Hong Kong, as required under U.S. law. On December 15, 2022, the PCAOB announced that it was able
to secure complete access to inspect and investigate PCAOB-registered public accounting firms headquartered in mainland China and Hong Kong
completely in 2022. The PCAOB Board vacated its previous 2021 determinations that the PCAOB was unable to inspect or investigate completely
registered public accounting firms headquartered in mainland China and Hong Kong. However, whether the PCAOB will continue to be
able to satisfactorily conduct inspections of PCAOB-registered public accounting firms headquartered in mainland China and Hong Kong
is subject to uncertainties and depends on a number of factors out of our and our auditor’s control. The PCAOB continues to demand
complete access in mainland China and Hong Kong moving forward and is making plans to resume regular inspections in early 2023 and
beyond, as well as to continue pursuing ongoing investigations and initiate new investigations as needed. The PCAOB has also indicated
that it will act immediately to consider the need to issue new determinations with the HFCAA if needed.

Our auditor, Enrome LLP, the independent registered
public accounting firm, as an auditor of companies that are traded publicly in the United States and a firm registered with the PCAOB,
is subject to laws in the United States pursuant to which the PCAOB conducts regular inspections to assess Enrome LLP’s compliance
with applicable professional