Company: OCG
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043484
Chunk: 76

Company: Oriental Culture Holding LTD
Filing Date: 2025-05-15
Form: 20-F
Item: Item 5
Chunk 76
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600,000        $1,000,000  

Operating Activities

Net cash used in operating activities was approximately
$4.0 million for the year ended December 31, 2024 which was attributable primarily to the net loss of approximately $2.6 million, the
increase of approximately $1.2 million in inventory due to the one-time purchase of liquor for sale, decrease of approximately $1.1 million
in accounts payable affected by restricted cash, increase of approximately $0.5 million in other receivables and prepaid expenses, including
other receivables from related parties, due to prepaid VAT tax from the purchase of inventory, and approximately $0.1 million of gain
from short-term investment. Our cash outflow was offset by approximately $0.6 million of stock compensation due to the granted stock awards pursuant
to the 2021 Omnibus Equity Plan, approximately $0.5 million of depreciation and amortization, and approximately $0.4 million of impairment
loss on intangible assets due to the ceased operation of HKDAEx’s trading platform.

Net cash provided operating activities was approximately
$3.6 million for the year ended December 31, 2023 which was attributable primarily to the decrease in other receivable from related parties
of approximately $3.0 million which are funds deposited in trust account of our related party Nanjing Jinwang that we can withdraw anytime,
and decrease in other receivables and prepaid expenses of approximately $4.2 million primarily due to $2.7 million advance to third parties,
which was short term, non-interest bearing, due on demand and has been collected by March 22, 2023. Our cash outflow was mainly from net
loss of approximately $3.6 million and decrease of approximately $0.3 million in accounts payable affected by restricted cash.

Net cash used in operating activities was approximately
$1.2 million for the year ended December 31, 2022 which was attributable primarily to increase in other receivable from related parties
of approximately $2.7 million which are funds deposited in trust account of our related party Nanjing Jinwang Art Purchase E-commerce
Co., Ltd. (“ Nanjing Jinwang”) that our customers can withdraw anytime, and increase in other receivables and prepaid expenses
of approximately $3.2 million primarily due to $2.7 million advance to third parties, which was short term, non-interest bearing, due
on demand and has been collected by March