Company: LICN
Filing Date: 2025-04-29
Form Type: 20-F
Source: 0001213900-25-036244
Chunk: 129

Company: Lichen International Ltd
Filing Date: 2025-04-29
Form: 20-F
Item: Item 19
Chunk 129
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.5  

  (1)      Non-deductible                                                                       

  iii)      Deferred    

                                          2024                                  2023             
 ─────────────────────────────────────────────────────────────────────────────────────────────────
                                          In thousands of USD                                    
  Deferred tax assets:                                                                           
  Net accumulated loss-carry forward      $                        2,001        $         972    
  Less: valuation allowance                                        ( 2,001                ( 972  
  Net deferred tax assets                 $                        -            $         -      

F-25

Movement of valuation allowance
is as follows:

                                     2024                                2023             
 ──────────────────────────────────────────────────────────────────────────────────────────
                                     In thousands of USD                                  
  Beginning balance                  $                          972      $         1,200  
  Write-off                                                   ( 500                ( 392  
  Change of valuation allowance                               1,529                  164  
  Ending balance                     $                        2,001      $           972  

As of December 31, 2024, certain subsidiaries
had accumulated tax loss of approximately $1.26million, which can be carried forward to offset future taxable income. The carryforwards
period for net operating losses under the EIT Law is five years. Valuation allowance is provided against deferred tax assets when the
Company determines that it is more likely than not that the deferred tax assets will not be utilized in the future.

Uncertain tax positions

The Company evaluates each uncertain tax position
(including the potential application of interest and penalties) based on the technical merits, and measure the unrecognized benefits associated
with the tax positions. As of December 31, 2024 and 2023 the Company did not have any significant unrecognized uncertain tax positions.
The Company did not incur interest and penalties during the years ended December 31, 2024, 2023 and 2022.

14. Business Combination

Acquisition of Bondly HK

On July 29, 2024, the Company acquired60% equity
interest of Bondly HK with total cash consideration of $8,000,000. Bondly HK is a company incorporated in Hong Kong. Bondly HK and its
subsidiary also engage in professional education business. The acquisition has further strengthened the transaction and service scenario
of the financial and taxation solution services of the Company. The results of Bondly HK and its subsidiary have been included in the
consolidated financial statements of the Company since the acquisition