Company: LICN
Filing Date: 2025-04-29
Form Type: 20-F
Source: 0001213900-25-036244
Chunk: 130

Company: Lichen International Ltd
Filing Date: 2025-04-29
Form: 20-F
Item: Item 19
Chunk 130
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 date of July 29, 2024.

The Company engaged an independent valuation firm
to assist management in valuing assets acquired, liabilities assumed, intangible assets identified and contingent consideration as of
the acquisition day.

The identifiable intangible assets acquired upon
acquisition were proprietary technology with definite useful life. All other current assets and current liabilities carrying value approximated
fair value at the time of acquisition. The fair value of the consideration was based on closing market price of the Company’s common
share on the acquisition date.

F-26

According to the independent valuation report,
the purchase price was allocated to the assets acquired and liabilities assumed based on their fair values. Fair value of the non-controlling
interests was evaluated based on the equity value of Bondly HK derived by the discounted cash flow method after considering a discount
for lack of control:

  Fair value of total consideration transferred:                                                  
  Cash consideration                                                             $         8,000  
  Subtotal                                                                       $         8,000  
  Recognized amounts of identifiable assets acquired and liability assumed:                       
  Cash                                                                           $         1,186  
  Current assets other than cash                                                             634  
  Intangible asset – customer relationships                                                3,557  
  Other non-current assets                                                                 1,764  
  Current liabilities                                                                    ( 1,231  
  Total identifiable net assets                                                  $         5,910  
  Fair value of non-controlling interests *                                                2,364  
  Goodwill                                                                       $         4,454  

15. Share Based Compensation

In September 2023, the Company adopted the 2023
Equity incentive plan which allows the Company to offer incentive awards to employee, directors and consultants (collectively, “the
Participants”). Under the 2023 Equity incentive plan, the Company issued870,000and1,150,000Class A Ordinary Shares as the incentive
awards to the Participants with no restrictive legend affixed on March 12, 2024 and November 12, 2024, respectively. The fair values of
share units are determined based on the closing price of the grant date of the Company’s ordinary shares.

Share-based compensation expense of $3,412,700was immediately recognized in general and administrative expenses for the year ended December 31, 2024 with no vesting conditions. Noshare-based compensation expense was recognized for the years ended December 31, 2023 and 2022.

16. Ordinary shares

The Company was established as