Company: OCG
Filing Date: 2025-04-30
Form Type: NT 20-F
Source: 0001213900-25-037658
Chunk: 6

Company: Oriental Culture Holding LTD
Filing Date: 2025-04-30
Form: NT 20-F
Chunk 6
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 are considered as a reduction in sales price,
so the rebate is instantaneous while rebates to third party sales agents is usually paid in one to three months in arrears.

General and Administrative Expenses

Our general and administrative expenses decreased
by approximately $1.5 million, or 29.9% from approximately $4.9 million including approximately $0.2 million to a related party for the
year ended December 31, 2023 to approximately $3.4 million including approximately $0.1 million to a related party for the same period
in 2024. The decrease in our general and administrative expenses was primarily due to decreased tech service fee of approximately $0.9
million, decreased professional fees of approximately $0.5 million, decreased office expenses of approximately $0.1 million, decreased
depreciation and amortization expenses of approximately $0.1 million, and decreased travel and meeting related fees of approximately $0.1
million and as we incurred less professional services and management needs due to less business and revenues in 2024, offset by increased
stock compensation expenses of approximately $0.5 million 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.

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.

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