Company: OCG
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043484
Chunk: 71

Company: Oriental Culture Holding LTD
Filing Date: 2025-05-15
Form: 20-F
Item: Item 5
Chunk 71
---
 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
$2.6 million or 93.9% from approximately $2.8 million for the year ended December 31, 2022 to approximately $0.2 million for the same
period in 2023. 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
includes services fees for IT technical support and agency recommendation fees. IT technical support fees are negotiated on a case by
case basis and is recognized when the related services have been performed based on the specific terms of the contract. Agency recommendation
fees are mainly revenue generated from providing consulting and training services to certain traders/agents. Upon completion of the training
and consulting, these qualified traders/agents may introduce our platform and services to potential customers to list their collectibles
and artwork with us for a fee or promote their own products on our platform. Total other revenues decreased by $26,062 or 14.8% from $175,706,
which included $166,325 from providing technological services to our related parties for the same period in 2022 to $149,644, which included
$144,609 from providing technological services to our related parties for the same period in 2023. The decrease was primarily because
we provided less consulting and training services to traders for the year ended December 31, 2023.

Cost of Revenues

Cost of revenues decreased by approximately $0