Company: OCG
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043484
Chunk: 63

Company: Oriental Culture Holding LTD
Filing Date: 2025-05-15
Form: 20-F
Item: Item 5
Chunk 63
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, 2023 to approximately $0.3 million for the same
period in 2024. The decrease was due to the decrease in total transaction value. Transaction fee revenue is calculated based on a certain
percentage of the transaction value per transaction. Our total transaction value decreased from approximately $0.5 billion the year ended
December 31, 2023 to approximately $0.1 billion for the same period in 2024. The decrease in our transaction was mainly due to negative
impact from the freezing of bank accounts caused by the ongoing investigation of our related party that started in second half of 2022
which reduced overall customers transactions.

(3) Marketing service fees: Marketing service
fees are what we charge for promoting and marketing our customers’ collectible or artwork. The services include assisting our customers
in connection with his/her listing and trading of his/her collectible/artwork on our platform, which mainly includes consulting and supporting
services of the marketability for the collectible/artwork; assessing its market value and market acceptance for the collectible/artwork;
and assisting in the application and legal protection required for the customer’s collectible/artwork to be approved for listing
on our platform. For marketing service contracts in which the related performance obligations can be completed within a short period of
time, the Company recognizes the related revenue upon the completion of its performance obligations.

Marketing service agreements also include providing
promotion services for customers’ items as where to place ads on well-known cultural or art exchange websites in China, to provide
online and offline marketing services including cooperation with auction houses and participate in industry-related exhibitions and fairs.
The marketing service fees are charged on a negotiated fixed fee basis, which is based on the type of the listing session that the customer
applies for and whether the customer has listed and sold its collectibles on other platforms before, and they were not based on the
value of the underlying collectible, artwork and commodities. Marketing service contracts and fees are recognized upon the completion
of all performance obligations.

Marketing service fees decreased by approximately
$10,000 or 5.7% from approximately $170,000 for the year ended December 31, 2023 to approximately $160,000 for the same period in 2024.
The decrease was due to the decrease in demand for marketing services from customers to promote their listed items.

(4) Other revenues: Other revenues primarily
include services fees for IT technical support and agency recommendation fees. IT technical support fees are negotiated