Company: LICN
Filing Date: 2025-04-29
Form Type: 20-F
Source: 0001213900-25-036244
Chunk: 114

Company: Lichen International Ltd
Filing Date: 2025-04-29
Form: 20-F
Item: Item 19
Chunk 114
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 at cost less accumulated amortization and impairment, if any. Intangible assets are
amortized using the straight-line method over the estimated useful lives, which are generally5-10years. The estimated useful lives of
amortized intangible assets are reassessed if circumstances occur that indicate the original estimated useful lives have changed.

Goodwill

Goodwill represents the excess of the purchase
price over the fair value of the identifiable assets and liabilities acquired in a business combination.

Goodwill is not depreciated or amortized but is
tested for impairment on an annual basis as of December 31, and in between annual tests when an event occurs or circumstances change that
could indicate that the asset might be impaired. In accordance with the FASB ASC 350 guidance on “ Testing of Goodwill for Impairment”,
a company first has the option to assess qualitative factors to determine whether it is more likely than not that the fair value of a
reporting unit is less than its carrying amount. If the company decides, as a result of its qualitative assessment, that it is more likely
than not that the fair value of a reporting unit is less than its carrying amount, the quantitative impairment test is mandatory. Otherwise,
no further testing is required. The quantitative impairment test consists of a comparison of the fair value of each reporting unit with
its carrying amount, including goodwill. If the carrying amount of each reporting unit exceeds its fair value, an impairment loss equal
to the difference between the fair value of the reporting unit and the carrying amount will be recorded. Application of a goodwill impairment
test requires significant management judgment, including the identification of reporting units, assigning assets and liabilities to reporting
units, assigning goodwill to reporting units, and determining the fair value of each reporting unit. The judgment in estimating the fair
value of reporting units includes estimating future cash flows, determining appropriate discount rates and making other assumptions. Changes
in these estimates and assumptions could materially affect the determination of fair value for each reporting unit.

Other assets

Represents cash deposited for potential acquisition,
real estate developer and software development service. The deposits are refundable and bear no interest pursuant to terms of contract.
The property under development is commitment to be completed by the end of 2028.

F-14

Impairment of long-lived assets

The Company evaluates its long-lived assets, including
property and equipment and intangibles with finite lives, for impairment whenever events or changes in circumstances, such as a significant
adverse change to market conditions that will