Company: OCG
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043484
Chunk: 137

Company: Oriental Culture Holding LTD
Filing Date: 2025-05-15
Form: 20-F
Item: Item 19
Chunk 137
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 of the investment; (ii) cause and duration
of the impairment; (iii) extent to which fair value is less than cost; (iv) financial condition and near term prospects of the investment;
and (v) ability to hold the security for a period of time sufficient to allow for any anticipated in fair value. No events have occurred
that indicated a decline in fair value that is other-than-temporary for the years ended December 31, 2024 and 2023.

Revenue recognition

The Company follows FASB ASC 606, Revenue from
Contracts with Customers, for recognizing its revenue. The core principle underlying the revenue recognition standard is that the Company
will recognize revenue to represent the transfer of services to customers in an amount that reflects the consideration to which the Company
expects to be entitled in such exchange. This requires the Company to identify contractual performance obligations and determine whether
revenue should be recognized when control of services transfers to a customer. Under the guidance of ASC 606, the Company is required
to (a) identify the contract(s) with a customer, (b) identify the performance obligations in the contract, (c) determine
the transaction price, (d) allocate the transaction price to the performance obligations in the contract and (e) recognize revenue
when (or as) the Company satisfies its performance obligation. Revenues are recorded, net of sales related taxes and surcharges.

The Company continues to derive its revenues from
service contracts with its customers with revenues being recognized upon performance of services. Persuasive evidence of an arrangement
is demonstrated via service contracts and invoices; and the consideration to the customer is fixed upon acceptance of the sales contract. At
times, the Company offers incentives and rebates to its customers directly and the Company accounts for these incentives payable to customers
as a reduction of the contract price.

F-14

ORIENTAL CULTURE HOLDING LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The Company’s revenues are recognized when
all performance obligations are satisfied. The Company’s commission expenses to its sales agents are expensed when incurred.

The Company is 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 the Company’s platforms. The Company currently facilitates trading by individual and institutional customers
of artwork, collectibles and commodities on the Company’s online platforms. In addition to collect