Company: LICN
Filing Date: 2025-04-29
Form Type: 20-F
Source: 0001213900-25-036244
Chunk: 19

Company: Lichen International Ltd
Filing Date: 2025-04-29
Form: 20-F
Item: Item 4
Chunk 19
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  The incurrence of debt, specifically the instruments governing such debt, may restrict a subsidiary’s ability to pay shareholder dividends or make other cash distributions.  
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If, for the reasons noted
above, our subsidiaries are unable to pay shareholder dividends and/or make other cash payments to the Company when needed, the Company’s
ability to conduct operations, make investments, engage in acquisitions, or undertake other activities requiring working capital may be
materially and adversely affected. However, our operations and business, including investment and/or acquisitions by our subsidiaries
within China, will not be affected as long as the capital is not transferred in or out of the PRC.

During the fiscal years ended
December 31, 2020, Lichen Zixun made dividend payments of RMB30 million (approximately $4.3 million) to the then eventual shareholders
of Lichen Zixun, who are PRC individuals. On February 10, 2023, Lichen International Limited made payments of $6 million to its subsidiary
Legend Consulting BVI for investment. As of the date of this report, other than the above stated, no dividends, distributions or transfers
has been made between Lichen International Limited and any of its subsidiaries. As of the date of this report, the Company or its subsidiaries
have made no other transfers, dividends, or distributions to investors and no investors have made transfers, dividends, or distributions
to the Company or its subsidiaries.

For the foreseeable future,
the Company intends to use the earnings for research and development, to develop new products and to expand its production capacity. As
a result, we do not expect to pay any cash dividends in the foreseeable future. Also, as of the date of this report, no cash generated
from one subsidiary is used to fund another subsidiary’s operations and we do not anticipate any difficulties or limitations on
our ability to transfer cash between subsidiaries.

See “ Item 8. Financial
Information - A. Consolidated Statements and Other Financial Information - Dividend Policy” and “Item
3. KeyInformation - 3. D. Risk Factors - Risks Relating to our Corporate Structure - We rely on dividends and other distributions
on equity paid by the Operating Subsidiaries to fund any cash and financing requirements we may have, and any limitation on the ability