Company: LICN
Filing Date: 2025-04-29
Form Type: 20-F
Source: 0001213900-25-036244
Chunk: 23

Company: Lichen International Ltd
Filing Date: 2025-04-29
Form: 20-F
Item: Item 4A
Chunk 23
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34.29 million, or 82.68% of total revenue, for the year ended December 31, 2024,
increased by $2.52 million, or 7.93%, from approximately $8 31.77million for the year ended December 31, 2023. Such increase was mainly
due to the continuous expansion of the branding, multi-channel marketing and the synergies generated by the acquisition of Bondly that
brought new clients and orders. Since the Company has listed in February 2023, the quantity of the customers increased by 160 from 427,
or 37.5% for the year ended December 31, 2023 to 587 for the year ended December 31, 2024.

Revenue from education support
services decreased by $0.83 million, or 22.33%, from approximately $3.73 million or 9.38% of total revenue, for the year ended December
31, 2023, to approximately $2.90 million, or 6.98% of total revenue for the year ended December 31, 2024. Such decrease was primarily
due to its strategic focus on financial and taxation solution business shifted from education support since last year.

Our operations for software
and maintenance services began in March 2019. Revenue from this business amounted to approximately $4.29 million, or 10.34% of total revenue,
for the year ended December 31, 2024, increased by $0.03 million, or 0.70%, from approximately $4.26 million for the year ended December
31, 2023. The revenue of software and maintenance services remains stable these two years.

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 $0.36 million, or 2.36%, to approximately $15.80 million for the year ended December 31, 2024, from approximately $15.44
million for the year ended December 31, 2023. 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 $9.41 million, or 301.06%, to approximately $12.53 million for the year ended December