Company: OCG
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043484
Chunk: 165

Company: Oriental Culture Holding LTD
Filing Date: 2025-05-15
Form: 20-F
Item: Item 19
Chunk 165
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 Company, at a purchase price of $0.50per share for an aggregate price of $7,000,000(the “ Private Placement”).
In connection with offering, the Company has also agreed to issue the warrants to the purchasers to purchase up to an aggregate of14,000,000ordinary shares at an exercise price of $0.50per share. The warrants have a term of two years and are exercisable by the holder at any
time on or after six months after the issuance date. The transaction closed in June 2024.
The Company also agreed to pay a service fee to China Stamp which including $300,000in cash and840,000shares of the Company’s
ordinary shares pursuant to a financing advisory agreement in connection with the Private Placement. The840,000shares were valued at
the market price of $1.0and amounted to $840,000. The Company accounted for the total commission of $1,140,000as transaction costs to
the private placement and recorded as a reduction of the Company’s additional paid in capital. The Company issued840,000shares
in January 2025.

F-31

ORIENTAL
CULTURE HOLDING LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Warrants

The Company evaluated its warrants and determined
the warrants are indexed to the Company’s own stock as the warrants do not contain any exercise contingencies, the warrants’
settlement amount equals the difference between the fair value of the Company’s common stock price and the warrant contract strike
price and the only variables which could affect the settlement amount would be inputs to the fair value for a fixed-for-fixed option on
equity shares. The Company also analyzed ASC 815-40-25 to determine whether the warrant contracts should be classified in stockholders’
equity in the Company’s balance sheets and concluded that the warrant contracts meet all of the criteria for classification as equity
as the Company is not required to net settle. Based on this analysis, the Company determined the warrant contracts should be classified
as equity.

The warrants issued in connection with May 2025
Private Placement are valued using Black Scholes model with certain assumptions about risk-free interest rates, dividend yields, volatility,
expected term of the warrants and other assumptions. The fair value of warrants amounted to $2,310,739and is recorded in the Company’s
paid in capital.

The assumptions used for the Black-Scholes option
pricing model