Company: LICN
Filing Date: 2025-04-29
Form Type: 20-F
Source: 0001213900-25-036244
Chunk: 26

Company: Lichen International Ltd
Filing Date: 2025-04-29
Form: 20-F
Item: Item 4A
Chunk 26
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 total revenue for the year ended December 31, 2023. Such decrease was primarily
due to its strategic focus on financial and taxation solution business shifted from education support this year.

Our operations for software
and maintenance services began in March 2019. Revenue from this business amounted to approximately $4.26 million, or 10.71% of total revenue,
for the year ended December 31, 2023, increased by $1.14 million, or 36.53%, from approximately $3.12 million for the year ended December
31, 2022. The main reason is because we have a good reputation in the software market and has developed its promotion of software sales
business, which resulted in an increase in customer base and software sales revenue.

Cost of revenue

Our cost of revenue includes
employee salaries, registration fees paid to our Partner Institutions and amortization of software in software sales. Our cost of revenue
increased by $1.83 million, or 13.41%, to approximately $15.44 million for the year ended December 31, 2023, from approximately $13.61
million for the year ended December 31, 2022. Such increase was in line with our increased revenue.

Selling and marketing expenses

Our selling and marketing
expenses consist primarily of online and offline promotion, video broadcast promotion and self-media promotion. Our selling and marketing
expenses increased by $1.01 million, or 47.99%, to approximately $3.12 million for the year ended December 31, 2023, from approximately
$2.11 million for the year ended December 31, 2022. Such increase was primarily due to the strengthened multi-channel promotion of the
company. As a percentage of revenue, selling and marketing expenses increased to 7.86% for the year ended December 31, 2023, from 6.24%
for the year ended December 31, 2022.

General and administrative expenses

Our general and administrative
expenses consist primarily of compensation for management, social security payment, depreciation of property and equipment and amortization
of intangible assets. Our general and administrative expenses increased by $1.50 million, or 20.23%, to approximately $8.94 million for
the year ended December 31, 2023, from approximately $7.43 million for the year ended December 31, 2022. As a percentage of revenue, general
and administrative expenses increased