Company: LICN
Filing Date: 2025-04-29
Form Type: 20-F
Source: 0001213900-25-036244
Chunk: 30

Company: Lichen International Ltd
Filing Date: 2025-04-29
Form: 20-F
Item: Item 4A
Chunk 30
---
. Net cash used in financing
activities was approximately $0.33 million for the year ended December 31, 2022 consisted entirely of repayments on short-term loans
in the amount of approximately $0.33 million.

Accounts receivable and allowance for credit
losses

Accounts receivable represents
the Company’s right to consideration in exchange for goods and services that the Company has transferred to the customers before
payment is due. Accounts receivable is stated at the historical carrying amount, net of an estimated allowance for uncollectible accounts.
The allowance for credit losses for accounts receivable is based upon the current expected credit losses (“ CECL”) model. The
CECL model requires an estimate of the credit losses expected over the life of accounts receivable since initial recognition, and accounts
receivable with similar risk characteristics are grouped together when estimating CECL. In assessing the CECL, the Company applies a roll
rate-based method that considers historical collectability based on past due status, the age of the balances, credit quality of the Company’s
customers based on ongoing credit evaluations, current economic conditions, reasonable and supportable forecasts of future economic conditions,
and other factors that may affect the Company’s ability to collect from customers. There was no allowance for credit losses set
up by the Company as of December 31, 2024, 2023 and 2022, respectively.

Capital Expenditures

We made capital expenditures
of approximately $9.89 million, approximately $9.87 million and approximately $2.84 million for the years ended December 31, 2024, 2023
and 2022, respectively. In these periods, our capital expenditures were mainly used for the development for our software, acquisition
of potential company and purchasing the office located in Shanghai for our operation. We plan to continue to make capital expenditures
to meet the needs that result from the expected growth of our business.

Dividend

The holders of our ordinary
shares are entitled to such dividends as may be declared by our Board of Directors subject to the Cayman Islands Companies Act. The Directors
may from time to time declare dividends (including interim dividends) and distributions on the issued and outstanding shares of the Company
and authorize payment of the same out of the funds of the Company lawfully available therefor. Dividends may also be declared or paid
out of share premium account or otherwise permitted by the Cayman Islands Companies Act, provided that in no circumstances may we pay
a dividend if this would