Company: LICN
Filing Date: 2025-04-29
Form Type: 20-F
Source: 0001213900-25-036244
Chunk: 40

Company: Lichen International Ltd
Filing Date: 2025-04-29
Form: 20-F
Item: Item 4A
Chunk 40
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 prospective basis. Retrospective application is permitted. The Company does not plan to early adopt
ASU 2023-09 and is evaluating the impact of adoption of ASU 2023-09 on the consolidated financial statements.

In October 2023, the FASB issued ASU 2023-06, Disclosure Improvements
 - Codification Amendments in Response to SEC’s Disclosure Update and Simplification Initiative which amend the disclosure
or presentation requirements of codification subtopic 230-10 Statement of Cash Flows - Overall, 250-10 Accounting Changes and Error
Corrections - Overall, 260-10 Earnings Per Share - Overall, 270-10 Interim Reporting - Overall, 440-10 Commitments - 
Overall, 470-10 Debt - Overall, 505-10 Equity - Overall, 815-10 Derivatives and Hedging - Overall, 860-30 Transfers
and Servicing - Secured Borrowing and Collateral, 932-235 Extractive Activities - Oil and Gas - Notes to Financial Statements,
946-20 Financial Services - Investment Companies - Investment Company Activities, and 974-10 Real Estate - Real Estate
Investment Trusts - Overall. The amendments represent changes to clarify or improve disclosure and presentation requirements of
the above subtopics. Many of the amendments allow users to more easily compare entities subject to the SEC’s existing disclosures
with those entities that were not previously subject to the SEC’s requirements. Also, the amendments align the requirements in the
codification with the SEC’s regulations. For entities subject to existing SEC disclosure requirements or those that must provide
financial statements to the SEC for securities purposes without contractual transfer restrictions, the effective date aligns with the
date when the SEC removes the related disclosure from Regulation S-X or Regulation S-K. Early adoption is not allowed. For all other entities,
the amendments will be effective two years later from the date of the SEC’s removal.

Except for the above-mentioned pronouncements,
there are no new recent issued accounting standards that will have a material impact on the consolidated financial position, statements
of operations and cash flows.

Holding Company Structure

LICN is a holding company
incorporated in the Cayman Islands with no material operations of its own. We conduct our operations primarily in the PRC through our
subsidiaries in PRC.

As a result, LICN’s
ability to pay dividends may depend upon dividends paid by our PRC subsidiaries. If our existing