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LICN

Lichen International Limited

LICN

Lichen International Limited • NASDAQ
$2.85 ▼ -3.39% (-0.10)
Market Cap $2.17 M
52w High $8.28
52w Low $0.04
Dividend Yield 0%
P/E -0.04
Volume 7.09K
Outstanding Shares 761.83K

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q2-2025 $14.26M ▼ $11.842M ▼ $-9.356M ▼ -65.61% ▼ $-33.08 ▼ $-3.303M ▲
Q4-2024 $23.381M ▲ $20.962M ▲ $-6.906M ▼ -29.537% ▼ $-0.46 ▼ $-3.776M ▼
Q2-2024 $18.096M ▼ $9.263M ▲ $767K ▼ 4.239% ▼ $0.052 ▼ $2.1M ▼
Q4-2023 $23.833M ▲ $5.072M ▼ $6.981M ▲ 29.291% ▲ $0.26 ▲ $9.645M ▲
Q2-2023 $15.926M $7.698M $1.357M 8.521% $0.053 $3.367M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q2-2025 $22.573M ▼ $67.207M ▼ $2.956M ▼ $64.251M ▼
Q4-2024 $26.712M ▼ $79.84M ▲ $4.275M ▲ $73.182M ▲
Q2-2024 $34.187M ▲ $72.592M ▲ $2.81M ▼ $69.782M ▲
Q4-2023 $25.856M ▲ $65.545M ▲ $4.125M ▲ $61.42M ▲
Q2-2023 $18.812M $56.192M $2.916M $53.276M

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q2-2025 $-9.356M ▼ $-1.854M ▲ $-8.606M ▼ $5.095M ▼ $-4.139M ▲ $-1.854M ▲
Q4-2024 $-6.906M ▼ $-9.259M ▼ $-7.636M ▼ $5.821M ▼ $-7.475M ▼ $-9.295M ▼
Q2-2024 $767K ▼ $3.688M ▲ $-2.252M ▼ $7.266M ▲ $34.187M ▲ $3.688M ▲
Q4-2023 $6.981M ▲ $681K ▲ $5.987M ▲ $0 ▼ $3.522M ▲ $-1.613M ▲
Q2-2023 $1.357M $-124K $-15.852M $14.098M $-1.893M $-5.632M

Five-Year Company Overview

Income Statement

Income Statement Revenue has been small and fairly flat over the past few years, with only modest growth. The company had been consistently profitable at the operating and net income level, but the most recent year swung to a small loss. That shift suggests that new spending, likely tied to its AI pivot and expansion, is now weighing on earnings. Overall, the income statement shows a tiny but stable business that is currently sacrificing short‑term profit to invest in its strategy, with earnings per share historically very volatile due to changes in share count and the reverse split.

Balance Sheet

Balance Sheet The balance sheet is simple and relatively clean. Total assets and cash have been gradually building, which gives some financial cushion despite the company’s small size. There is effectively no debt, so the business is not burdened by interest payments or refinancing risk. Equity has been inching higher over time, reflecting retained capital, but on an absolute scale the company remains modest, so financial shocks or prolonged losses could matter more than they would for a larger, more diversified firm.

Cash Flow

Cash Flow Cash generation recently turned slightly negative after several years of small but positive operating cash flow. Free cash flow followed the same pattern, dipping into the red as the company began to spend more on growth and capital needs. This tells a similar story to the income statement: a shift from a steady, cash‑generative service model toward a more investment‑heavy phase. While the current cash position offers some buffer, the business does not yet appear to be self‑funding its new initiatives, which adds execution and financing risk if losses persist.

Competitive Edge

Competitive Edge Lichen operates in a niche space: financial and tax services in China, where regulations are complex and relationships matter. Its long track record in this field, along with a client base that includes larger and government‑linked entities, gives it valuable domain expertise and data. The move into AI, especially through its partnership with JD Technology and other major platforms, could deepen its moat if it can turn that experience into better, more automated advice at scale. At the same time, the company is very small, has recently faced financial pressure, and competes in a market where both traditional firms and larger tech players can respond quickly, so its competitive position is promising but not yet proven.

Innovation and R&D

Innovation and R&D The core of Lichen’s strategy is its AI build‑out. Its in‑house “AI Robot” aims to act as a virtual tax and finance adviser, using years of historical cases and regulatory data. The co‑development of a specialized large AI model with JD Technology, plus plans to integrate the DeepSeek optimization framework and the acquired Bondly BPM system, all point to a push for a more intelligent, workflow‑integrated platform. If executed well, these tools could meaningfully boost productivity and create differentiated, sticky services. However, these projects are still in rollout and integration phases, so there is meaningful uncertainty around adoption, monetization, and the ongoing cost of maintaining cutting‑edge AI capabilities.

Summary

Lichen International is a tiny but established Chinese financial and tax service provider that is trying to reinvent itself as an AI‑driven platform company. Historically, it ran a straightforward, profitable, and cash‑generative consulting business with a strong balance sheet and no debt. Recently, it has shifted into an investment mode: earnings and cash flow have turned slightly negative as it spends on AI products, acquisitions, and partnerships. The collaboration with JD Technology, the AI Robot, and process‑automation tools could give it a differentiated position in a specialized market, but the business is now more dependent on successful execution of this strategy. Key tensions to watch are whether AI initiatives can scale revenue and restore sustainable profitability before the company’s small size and recent financial strain become limiting factors.