Company: LICN
Filing Date: 2025-04-29
Form Type: 20-F
Source: 0001213900-25-036244
Chunk: 32

Company: Lichen International Ltd
Filing Date: 2025-04-29
Form: 20-F
Item: Item 4A
Chunk 32
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the “ Disposition”) contemplated by the Disposition
SPA, Mrs. Lina Li will become the sole shareholder of Lichen Education and as a result, assume all assets and liabilities of Lichen Education
owned. The transaction was closed on March 31, 2025.

Additionally, the Company
has officially changed its name from Lichen China Limited to Lichen International Limited. This name change was duly approved by the Company’s
shareholders on February 10, 2025.

We did not have any other
off-balance sheet commitments or arrangements as of December 31, 2024.

5. C. Research and Development, Patent and Licenses,
etc.

Please refer to “ Item
4. Information on the Company - D. Property, Plant and Equipment - Intellectual Property.”

5. D. Trend Information.

Other than as disclosed elsewhere
in this annual report, we are not aware of any trends, uncertainties, demands, commitments or events that are reasonably likely to have
a material effect on our net revenues, income from continuing operations, profitability, liquidity or capital resources, or that would
cause reported financial information not necessarily to be indicative of future operating results or financial condition or results of
operations.

5. E. Critical Accounting Policies.

An accounting policy is considered
critical if it requires an accounting estimate to be made based on assumptions about matters that are highly uncertain at the time such
estimate is made, and if different accounting estimates that reasonably could have been used, or changes in the accounting estimates that
are reasonably likely to occur periodically, could materially impact the consolidated financial statements.

We prepare our financial statements
in conformity with U. S. GAAP, which requires us to make judgments, estimates and assumptions. We continually evaluate these estimates
and assumptions based on the most recently available information, our own historical experiences and various other assumptions that we
believe to be reasonable under the circumstances. Since the use of estimates is an integral component of the financial reporting process,
actual results could differ from our expectations as a result of changes in our estimates. Some of our accounting policies require a higher
degree of judgment than others in their application and require us to make significant accounting estimates.

The following descriptions
of critical accounting policies, judgments and estimates should be read in conjunction with our consolidated financial statements and
other disclosures included in this annual report. When reviewing our consolidated financial statements, you should consider (i) our selection
of critical accounting policies, (ii) the judgments and other uncertainties affecting the application of such