Company: LICN
Filing Date: 2025-04-29
Form Type: 20-F
Source: 0001213900-25-036244
Chunk: 133

Company: Lichen International Ltd
Filing Date: 2025-04-29
Form: 20-F
Item: Item 19
Chunk 133
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 for an aggregate purchase price of $2,800,000 (the “ Offering”).
The Offering closed on December 27, 2024. The Company received net proceeds of approximately $2,529,000 from the issuance and sale of
the Class A Ordinary Shares, after deducting the estimated offering expenses payable by the Company.

On December 29, 2024, the Company entered into
a securities purchase agreement with certain institutional investors named thereto (the “ Purchasers”). Pursuant to the Securities
Purchase Agreements, the Purchasers agreed to subscribe for and purchase, and the Company agreed to issue and sell to the Purchasers,
an aggregate of25,000,000Class A ordinary shares, par value $0.00004per share (the “ Class A Ordinary Shares”), at a purchase
price of $0.125per share, and for an aggregate purchase price of $3,125,000 (the “ Offering”). The Offering closed on December
30, 2024. The Company has received net proceeds of approximately $2,831,250from the issuance and sale of the Class A Ordinary Shares
on January 2, 2025, after deducting the offering expenses.

17. Statutory surplus reserves

The Company is required
to make appropriations to certain reserve funds, comprising the statutory surplus reserve and the discretionary surplus reserve, based
on after-tax net income determined in accordance with generally accepted accounting principles of the PRC (“ PRC GAAP”). Appropriations
to the statutory surplus reserve are required to be at least10% of the after-tax net income determined in accordance with PRC GAAP until
the reserve is equal to50% of the entity’s registered capital. Appropriations to the discretionary surplus reserve are made at
the discretion of the Board of Directors and there is no discretionary surplus reserve as of December 31, 2024 and 2023. The reserved
amounts as determined pursuant to PRC statutory laws totaled $1.74million and $1.74million as of December 31, 2024 and 2023.

F-28

18. Restricted assets

The Company’s ability
to pay dividends is primarily dependent on the Company receiving distributions of funds from its subsidiary. Relevant PRC statutory laws
and regulations permit payments of dividends by the PRC subsidiaries only out of its retained earnings, if any, as determined in accordance
with PRC accounting standards and regulations. The results of operations reflected in the accompanying consolidated financial statements
prepared in