Company: OCG
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043484
Chunk: 167

Company: Oriental Culture Holding LTD
Filing Date: 2025-05-15
Form: 20-F
Item: Item 19
Chunk 167
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at its discretion. The statutory reserve funds and the discretionary funds are not distributable as cash dividends. Remittance of dividends
by a wholly foreign-owned company out of China is subject to examination by the banks designated by the State Administration of Foreign
Exchange (“ SAFE”).

As a result of the foregoing restrictions, Oriental
Culture WFOE and Jiangsu Yanggu PRC entities are restricted in their ability to transfer their net assets to the Company. Foreign exchange
and other regulations in the PRC may further restrict Oriental Culture WFOE and Jiangsu Yanggu PRC entities from transferring funds to
the Company in the form of dividends, loans and advances. As of December 31, 2024, amounts restricted are the net assets of Oriental Culture
WFOE and Jiangsu Yanggu PRC entities, which was $38,814,025.

Equity Incentive Plan

The Company’s 2021 Omnibus Equity Plan (“the
Plan”) was approved by the board of directors on November 8, 2021 by unanimous written consent and approved by the shareholders
on December 16, 2021. The Plan allows for awards of up to4,000,000ordinary shares.

On February 27, 2024 (the “ Grant Date”),
the Company granted stock awards of300,000ordinary shares, par value $0.00025, pursuant to the Plan, to four officers and employees
of the Company and subsidiaries of its operating variable interest entity (the “ Grantees”), including75,000shares to Mr.
Yi Shao, Chief Executive Officer of the Company. The Grants vested immediately on the Grant Date and each of the Grantees also entered
into an Unrestricted Stock Award Agreement with the Company on February 27, 2024. The total stock compensation for the year ended
December 31, 2024 was $573,000, based on Grant Date fair value of $1.91per share.

F-32

ORIENTAL
CULTURE HOLDING LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 15 - 
Commitments and Contingencies

Contingencies

From time to time,
the Company may be subject to certain legal proceedings, claims and disputes that arise in the ordinary course of business. Amounts accrued,
as well as the total amount of reasonably possible losses with respect to such matters, individually and in the aggregate, are not deemed
to