Company: LICN
Filing Date: 2025-04-29
Form Type: 20-F
Source: 0001213900-25-036244
Chunk: 118

Company: Lichen International Ltd
Filing Date: 2025-04-29
Form: 20-F
Item: Item 19
Chunk 118
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 a straight-line basis over the period of service (usually one year).

Software and maintenance services

Standard software is a right to use license because
the software has standalone functionality and the customer can use the software as it is available at a point in time. The Company recognizes
revenues for such licenses at a point in time when the customer has received licenses and thus has control over the software. In case
there is an update of the standard software, end customers or distributors are required to pay additional consideration to buy upgraded
version. Revenues from maintenance services is recognized over time within the service period.

Contract liabilities

Contract liability is recorded when a payment
is received from a customer before the Company transfers the related services. Contract liability is recognized as revenue when the Company
performs the services under the contract.

Disaggregated information of revenues by services:

                                                For the years ended December 31,                                                          
                                                2024                                              2023                  2022              
 ──────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Financial and taxation solution services      $                                     34,293      $         31,772      $         26,278  
  Education support services                                                           2,897                 3,730                 4,409  
  Software and maintenance services                                                    4,287                 4,257                 3,118  
  Revenue                                       $                                     41,477      $         39,759      $         33,805  

Segment reporting

Operating segments are reported in a manner consistent
with the internal reporting provided to the chief operating decision-maker. The chief operating decision-maker has been identified as
the Chief Executive Officer who allocates resources to and assesses the performance of the operating segments of an entity. The Company’s
reporting segments are decided based on its operating segments while taking full consideration of various factors such as products and
services, geographic location and regulatory environment related to administration of the management. Operating segments meeting the same
qualifications are allocated asonereporting segment, providing independent disclosures. The Company does not distinguish between
markets or segments for the purpose of internal reports. The Company does not distinguish revenues, costs and expenses between segments
in its internal reporting, and reports costs and expenses by nature as a whole. Hence, the Company has onlyonereportable segment.

Value added tax (“ VAT”)

Revenue represents the invoiced value of goods
and service, net of VAT. The VAT is based