Company: OCG
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043484
Chunk: 80

Company: Oriental Culture Holding LTD
Filing Date: 2025-05-15
Form: 20-F
Item: Item 5
Chunk 80
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 customer point system where the points can be used for services on the trading platform, mainly listing services
fees. The points can also be traded amongst traders on the platform or to settle payments on the platform amongst traders. We assessed
if a material right exists when we issue these points and if the points represent separate performance obligation. In general, if the
points were given to traders based on existing accounts or promotions without the customers having to acquire services from us, therefore
there is no material right and no separate performance obligation exists.

Our revenues are recognized at a point in time
or over time after all performance obligations are satisfied. In addition, we took the practical expedient to recognize the incremental
costs of obtaining a contract as an expense when incurred if the amortization period of the asset that the entity otherwise would have
recognized is one year or less. Our commission expenses to our sales agents are expensed when incurred.

We are an online provider of collectibles and
artwork e-commerce services, which allows artists and art dealers and owners to access the art trading market with a wider range of artwork
investors through our platforms. We currently facilitate trading by individual and institutional customers of collectibles and artwork
and commodities (mainly teas) on our online platforms.

We generate revenue from our services in connection
with the trading of collectable, artwork and commodities on our platforms, primarily consisting of listing service fees, transaction fees,
marketing services fees and other revenues collected from traders (our customers) and/or owners.

Started in July 2019, we had signed cooperative
agreements with third parties who are experts and possess new ideas and resources for the collectibles/commodities business to co-develop
certain niche markets (such as vintage coins and teas) to be traded on our online platforms. These parties are required to place a security
deposit with us until termination of the cooperative agreements and the deposit amounts increase as the trading volume increases. Revenue
generated from these niche markets will be shared between us and these parties based on pre-agreed rates and trading volume. We accounted
for the portion of revenue that is earned by the third parties as a reduction of total contract revenue to be received from customers.
Approximately nil, nil and nil of revenue generated from these contracts had been recorded as a reduction of revenue and as payables to
these parties for the years ended December 31, 2022, 2023 and 2024, respectively.

Listing service fees

One-time nonrefundable listing service fees are