Company: LICN
Filing Date: 2025-04-29
Form Type: 20-F
Source: 0001213900-25-036244
Chunk: 121

Company: Lichen International Ltd
Filing Date: 2025-04-29
Form: 20-F
Item: Item 19
Chunk 121
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growth company, or EGC, and has elected the extended transition period for complying with new or revised accounting standards, which delays
the adoption of these accounting standards until they would apply to private companies.

In November 2024, the FASB issued ASU 2024-03,
“ Income Statement - Reporting Comprehensive Income (Subtopic 220-40): Disaggregation of Income Statement Expenses.” This
pronouncement introduces new disclosure requirements aimed at enhancing transparency in financial reporting by requiring disaggregation
of specific income statement expense captions. Under the new guidance, entities are required to disclose a breakdown of certain expense
categories, such as: employee compensation; depreciation; amortization, and other material components. The disaggregated information can
be presented either on the face of the income statement or in the notes to the financial statements, often using a tabular format. The
ASU is effective for fiscal years beginning after December 15, 2025, and interim periods within those fiscal years. Early adoption is
permitted. The Company is currently evaluating these new disclosure requirements and does not expect the adoption to have a material impact.
In January 2025, the FASB issued ASU 2025-01, which revises the effective date of ASU 2024-03 (on disclosures about disaggregation of
income statement expenses) “to clarify that all public business entities are required to adopt the guidance in annual reporting
periods beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027.”
Entities within the ASU’s scope are permitted to early adopt the ASU.

In December 2023, the FASB issued ASU 2023-09,
which is an update to Topic 740, Income Taxes. The amendments in this update related to the rate reconciliation and income taxes paid
disclosures improve the transparency of income tax disclosures by requiring (1) adding disclosures of pretax income (or loss) and income
tax expense (or benefit) to be consistent with U. S. Securities and Exchange Commission (the “ SEC”) Regulation S-X 210.4-08(h),
Rules of General Application - General Notes to Financial Statements: Income Tax Expense, and (2) removing disclosures that no longer
are considered cost beneficial or relevant. For public business entities, the amendments in this Update are effective for annual periods
beginning after December 15, 2024. For entities other than public business entities