Lichen International Ltd

Operating Activities:

Net cash used in operating activities was approximately $1.85 million for the six months ended June 30, 2025, as compared to net cash provided by operating activities amounted to approximately $3.69 million for the six months ended June 30, 2024.

For the six months ended June 30, 2025, net cash used in operating activities was mainly resulted from the net loss of approximately $9.18 million, the depreciation of property and equipment in the amount of approximately $0.30 million, the amortization of intangible assets in the amount of approximately $1.58 million, the amortization of right-of-use assets in the amount of approximately $0.06 million, the amortization of other assets in the amount of approximately $0.07 million, accounts receivable in the amount of approximately $2.14 million and accrued liabilities and other current liabilities in the amount of approximately $0.66 million, offset by the prepayments and other current assets in the amount of approximately $0.12 million, and the unearned revenues in the amount of approximately $0.55 million, , accounts payable in the amount of approximately $0.05 million and tax payable in the amount of approximately $0.64 million. For the six months ended June 30, 2024, net cash provided by operating activities was mainly resulted from the net income of $0.77 million, and the depreciation of property and equipment and the amortization of intangible, right-of-use and other assets in the amount of approximately $1.76 million, share-based compensation in the amount of approximately $1.00 million, the accounts receivable in the amount of $1.49 million, and accrued liabilities and other current liabilities in the amount of $0.13 million offset by, tax payable in the amount of $1.21 million, prepayments and other current assets in the amount of $0.07 million and unearned revenues in the amount of approximately $0.18 million.