Company: LICN
Filing Date: 2025-04-29
Form Type: 20-F
Source: 0001213900-25-036244
Chunk: 34

Company: Lichen International Ltd
Filing Date: 2025-04-29
Form: 20-F
Item: Item 4A
Chunk 34
---
Education support services - Provision of marketing,
operation and technical support services

Revenues from provision of marketing, operation and technical support
services from the partnered institutions is recognized on a straight-line basis over the term of the agreement. The transaction price
inclusive of value added tax as received from customers in advance is recognized as a contract liability at the time of the initial transaction
and is released on a straight-line basis over the period of service (usually one year).

Software and maintenance services

Standard software is a right
to use license because the software has standalone functionality and the customer can use the software as it is available at a point in
time. The Company recognizes revenues for such licenses at a point in time when the customer has received licenses and thus has control
over the software. In case there is an update of the standard software, end customers or distributors are required to pay additional consideration
to buy upgraded version. Revenues from maintenance services is recognized over time within the service period.

Contract liabilities

Contract liability is recorded when a payment is received from a customer
before the Company transfers the related services. Contract liability is recognized as revenue when the Company performs the services
under the contract.

Disaggregated information of revenues by services:

                                                For the years ended December 31,                                                          
                                                2024                                              2023                  2022              
 ──────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Financial and taxation solution services      $                                     34,293      $         31,772      $         26,278  
  Education support services                                                           2,897                 3,730                 4,409  
  Software and maintenance services                                                    4,287                 4,257                 3,118  
  Revenue                                       $                                     41,477      $         39,759      $         33,805  

Segment reporting

Operating segments are reported
in a manner consistent with the internal reporting provided to the chief operating decision-maker. The chief operating decision-maker
has been identified as the Chief Executive Officer who allocates resources to and assesses the performance of the operating segments of
an entity. The Group’s reporting segments are decided based on its operating segments while taking full consideration of various
factors such as products and services, geographic location and regulatory environment related to administration of the management. Operating
segments meeting the same qualifications are allocated as one reporting segment, providing independent disclosures. The Group does not
distinguish between markets or segments for