Company: LICN
Filing Date: 2025-04-29
Form Type: 20-F
Source: 0001213900-25-036244
Chunk: 108

Company: Lichen International Ltd
Filing Date: 2025-04-29
Form: 20-F
Item: Item 19
Chunk 108
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capital of Lichen was US$50,000divided into(a) 1,000,000,000 Class A Ordinary Shares with a nominal or par value of US$0.00004 each
and (b) 250,000,000 Class B Ordinary Shares with a nominal or par value of US$0.00004, each in accordance with section 13 of the Cayman
Islands Companies Act. The changes were completed on December 23, 2021. The change in capital structure is treated as being effective
as of the beginning of the first period presented in the consolidated financial statements.

The consideration paid by Lichen and its subsidiaries
has been accounted for at historical cost and prepared on the basis as if the aforementioned transactions had become effective as of the
beginning of the first period presented in the consolidated financial statements. As all the entities involved in the process of the Reorganization
are under common control before and after the Reorganization, the Reorganization is accounted for in a manner similar to a pooling-of-interest
with the assets and liabilities of the parties to the Reorganization carried over at their historical amounts.

Initial Public Offering

On February 8, 2023, the Company closed its initial
public offering of4,000,000Class A ordinary shares at a public offering price of $4.00per Class A ordinary share for a total of $16,000,000in gross proceeds. The Company raised total net proceeds of $14,098,140after deducting underwriting discounts and commissions and offering
expenses. In addition, the Company granted to its underwriters an option for a period of 45 days after the closing of the initial public
offering to purchase up to an additional600,000Class A Ordinary Shares at the public offering price, less underwriting discounts.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of presentation

The accompanying consolidated financial statements
have been prepared in accordance with accounting principles generally accepted in the United States of America (“ U. S. GAAP”)
for information pursuant to the rules and regulations of the Securities Exchange Commission (“ SEC”).

F-10

Principles of consolidation

The accompanying consolidated financial statements
include the financial statements of the Company and its subsidiaries, which include the BVI-registered entity, Hong Kong-registered entity,
Singapore-registered entity, and PRC-registered entities directly or indirectly owned by the Company. All transactions and balances among
the Company and its subsidiaries have been