Company: LICN
Filing Date: 2025-04-29
Form Type: 20-F
Source: 0001213900-25-036244
Chunk: 71

Company: Lichen International Ltd
Filing Date: 2025-04-29
Form: 20-F
Item: Item 10
Chunk 71
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 unbooked intangibles, we have taken into account our market capitalization. Among other matters, if our market
capitalization is less than anticipated or subsequently declines, we may be or become a PFIC for the current or future taxable years.
It is also possible that the IRS may challenge our classification or valuation of our goodwill and other unbooked intangibles, which may
result in our company being or becoming a PFIC for the current or one or more future taxable years.

The determination of whether
we will be or become a PFIC will also depend, in part, on the composition of our income and assets, which may be affected by how, and
how quickly, we use our liquid assets and the cash raised in our initial public offering and subsequent offerings. If we determine not
to deploy significant amounts of cash for active purposes, our risk of being classified as a PFIC may substantially increase. Because
our PFIC status for any taxable year is a factual determination that can be made only after the close of a taxable year, there can be
no assurance that we will not be a PFIC for the current taxable year or any future taxable year. If we are a PFIC for any year during
which a U. S. holder held our Class A Ordinary Shares, we generally would continue to be treated as a PFIC for all succeeding years during
which such U. S. holder held our Class A Ordinary Shares.

The discussion below under
“ Dividends” and “ Sale or Other Disposition of Class A Ordinary Shares” is written on the basis that we will not
be or become a PFIC for United States federal income tax purposes. The United States federal income tax rules that apply if we are a PFIC
for the current taxable year or any subsequent taxable year are generally discussed below under “ Passive Foreign Investment Company
Rules.”

Dividends

Subject to the PFIC rules
discussed below, any cash distributions (including the amount of any tax withheld) paid on our Class A Ordinary Shares out of our current
or accumulated earnings and profits, as determined under United States federal income tax principles, will generally be includible in
the gross income of a U. S. holder as dividend income on the day actually or constructively received by the U. S. holder. Because we do
not intend to determine our earnings and profits on the basis of United States federal income tax principles, any distribution paid will
generally be reported as a “dividend” for United