Company: LICN
Filing Date: 2025-04-29
Form Type: 20-F
Source: 0001213900-25-036244
Chunk: 85

Company: Lichen International Ltd
Filing Date: 2025-04-29
Form: 20-F
Item: Item 15
Chunk 85
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Item
15. Controls and Procedures

(a) Disclosure Controls and Procedures.

Our
management, with the participation of our Chief Executive Officer and Chief Financial Officer, has performed an evaluation of the effectiveness
of our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act) as of the end of the period covered by
this report, as required by Rule 13a-15(b) under the Exchange Act.

Based upon that evaluation,
our management has concluded that, as of December 31, 2024, our disclosure controls and procedures were ineffective as our management
has identified a material weakness that has been identified related to our lack of sufficient financial reporting and accounting
personnel with appropriate knowledge of the generally accepted accounting principles in the United States (“ U. S. GAAP”) and
SEC reporting requirements to properly address complex U. S. GAAP accounting issues and to prepare and review our consolidated financial
statements and related disclosures to fulfill U. S. GAAP and SEC financial reporting requirements. The other material weakness that has
been identified related to our lack of comprehensive accounting policies and procedures manual in accordance with U. S. GAAP.

To remedy the identified material
weaknesses, we have implemented and will continue to implement several measures to improve our internal control over financial reporting,
including: (i) that we engaged experienced financial consultant who worked closely with our internal finance team to assist us in preparing
our financial statements and related disclosures in accordance with U. S. GAAP; (ii) that our Chief Financial Officer received additional
training in U. S. GAAP through self-study and webinar courses, and began to periodically review major accounting literature updates provided
by a major accounting firm which provide an overview of recent U. S. accounting pronouncements. (iii) conducting regular and continuous
U. S. GAAP training programs and webinars for our financial reporting and accounting personnel; (iv) improving financial oversight function
for handling complex accounting issues under U. S. GAAP. However, the implementation of these measures may not fully address the deficiencies
in our internal control over financial reporting. We are not able to estimate with reasonable certainty the costs that we will need to
incur to implement these and other measures designed to improve our internal control over financial reporting. See “ Item 3. D. Risk
Factors-Risks Relating to Our Business- If we fail to establish and maintain proper internal financial reporting controls, our ability
to produce accurate financial