Company: OCG
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043484
Chunk: 66

Company: Oriental Culture Holding LTD
Filing Date: 2025-05-15
Form: 20-F
Item: Item 5
Chunk 66
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 due to the granted stock awards pursuant to the 2021 Omnibus Equity Plan
and increased research and development fees for the improvement of platform to explore other business lines on our platform of approximately
$0.1 million.

Other Income

Total other income increased by approximately $12,000, or 1.6%, from
approximately $752,000 for the year ended December 31, 2023 to approximately $764,000 for the same period in 2024. The increase was mainly
due to the increase of approximately $0.4 million of interest and investment income due to the increase of short-term investment, increase
of approximately $20,000 of gain from short-term investment due to the increased short-term investment, the increase of approximately
$111,000 of rental income from the lease of office building, and the increase of approximately $25,000 gain from the disposal of HKDAEx,
offset by the decrease of approximately $0.4 million of impairment loss on intangible assets due to the ceased operation of HKDAEx’s
trading platform, decrease of approximately $0.1 million in currency exchange gain, and decrease of approximately $68,000 of the loss
from disposal of two vehicles.

Provision for Income Taxes

Our provision for income taxes amounted to $93
and $14,833 for the year ended December 31, 2024 and 2023, respectively. We generated most of our income from the subsidiaries of our
VIE that had preferential tax treatment which are formed and registered in Kashi in Xinjiang Provence, China. We also have provided 100%
allowance on net operating losses from our VIE which incurred losses.

Net Loss

Our net loss decreased by approximately $1.2 million,
or 32.4%, from $3.6 million for the year ended December 31, 2023 to approximately $2.4 million for the same period in 2024. Such change
was the result of the combination of the changes as discussed above.

Foreign Currency Translation Adjustment

Changes in foreign currency translation adjustment
are mainly due to the fluctuation of foreign exchange rates between RMB/HKD (the functional currency of our operating entities) and the
USD dollar (reporting currency).

Basic and diluted loss per share

Basic and diluted loss per share were $0.18 and
$0.84 for the year ended December 31, 2024 and 2023, respectively, a 78.2%