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

Company: Lichen International Ltd
Filing Date: 2025-04-29
Form: 20-F
Item: Item 4A
Chunk 25
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31, 2023; an decrease of approximately $1.30 million, or 40.06%. The decrease in income tax expense was primarily attributable to the
losses incurred by the Company during the fourth quarter.

Net (loss) income

As a result of the cumulative
effect of the factors described above, we incurred net loss amounted to approximately $6.12 million for the year ended December 31, 2024
while we recorded net income amounted to approximately $8.34 million for the year ended December 31, 2023.

Year Ended December 31, 2023 Compared
to Year Ended December 31, 2022

Revenues

We generate revenue from the
provision of financial and taxation solution services, education support services and software and maintenance services. Our total revenue
was approximately $39.76 million for the year ended December 31, 2023, compared to approximately $33.81 million for the year ended December
31, 2022, an increase of approximately $5.95 million, or 17.61%. Such increase was due to an approximately $5.49 million increase in revenue
from financial and taxation solution services, an approximately $0.68 million decrease in revenue from our education support services,
and an approximately $1.14 million increase in revenue from our software and maintenance services, which we began providing in the year
ended December 31, 2019.

Revenue from financial and
taxation solution services amounted to approximately $31.77 million, or 79.91% of total revenue, for the year ended December 31, 2023,
increased by $5.49 million, or 20.91%, from approximately $26.28 million for the year ended December 31, 2022. Such increase was mainly
due to continuous expansion of the branding and business that brought new clients and orders. Since the Company has listed in February
2023, the quantity of the customers increased by 30 from 397, or 7.56% for the year ended December 31, 2022 to 427 for the year ended
December 31, 2023.

Revenue from education support
services decreased by $0.68 million, or 15.40%, from approximately $4.41 million or 13.04% of total revenue, for the year ended December
31, 2022, to approximately $3.73 million, or 9.38 % of