Company: OCG
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043484
Chunk: 145

Company: Oriental Culture Holding LTD
Filing Date: 2025-05-15
Form: 20-F
Item: Item 19
Chunk 145
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 dividing income available
to shareholders of the Company by the weighted average ordinary shares outstanding during the period. Diluted EPS takes into account the
potential dilution that could occur if securities or other contracts to issue ordinary shares (outstanding warrants) were exercised and
converted into ordinary shares. For the years ended December 31, 2024, 2023 and 2022, there were14,000,000,0, and0outstanding exercisable
warrants, which were excluded from diluted net loss per share calculation, as the effect of their inclusion would be anti-dilutive.

F-18

ORIENTAL CULTURE HOLDING LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Statutory Reserves

Pursuant to the laws applicable to the PRC, PRC
entities must make appropriations from after-tax profits to the non-distributable statutory surplus reserve fund. Subject to certain cumulative
limits, the statutory surplus reserve fund requires annual appropriations of10% of after-tax profit until the aggregated appropriations
reach50% of the registered capital (as determined under accounting principles generally accepted in the PRC (“ PRC GAAP”)
at each year-end. If the Company has accumulated losses from prior periods, the Company is able to use the current period net income after
tax to offset against the accumulated loss. For the year ended December 31, 2024, 2023 and 2022, the Company appropriated $1,269from
Nanjing Rongke, $28,280from Yanyu and Nanjing Rongke and $12,410, from Yanyu, respectively to the statutory reserve fund. The Company
has met the required maximum contributions to the statutory reserves for both of its operating entities in China, Kashi Dongfang
and Kashi Longrui.

Employee benefits

Full-time employees of the Company are entitled
to staff welfare benefits including medical care, housing funds, pension benefits, unemployment insurance and other welfare benefits,
which are government mandated defined contribution plans. The Company is required to accrue for these benefits based on certain percentages
of the employees’ respective salaries, subject to certain ceilings, in accordance with the relevant PRC regulations, and make cash
contributions to the state-sponsored plans. The expenses for the plans were $82,063, $125,077, and $124,856for the years ended December
31, 2024, 2023 and 202