Company: OCG
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043484
Chunk: 157

Company: Oriental Culture Holding LTD
Filing Date: 2025-05-15
Form: 20-F
Item: Item 19
Chunk 157
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IE and its subsidiaries’ cumulative net operating losses (“ NOL”) of approximately $4,029,000and $4,514,000as of December
31, 2024 and 2023, and will start expiring in 2025. Management believes projected future losses outweighs other factors and made a full
allowance of related deferred tax assets.

F-26

ORIENTAL
CULTURE HOLDING LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Taxes payable consist of the following:

                            December 31,                  December 31,              
  VAT payable               $                 12,444      $                  8,852  
  Other taxes payable                            763                         4,906  
  Income taxes payable                           291                         3,067  
  Total                     $                 13,498      $                 16,825  

Note 12 - Concentration of credit risk

Financial instruments that potentially subject
the Company to significant concentrations of credit risk consist primarily of cash and equivalents. A depositor has up to RMB500,000(approximately $70,000) insured by the People’s Bank of China Financial Stability Bureau (“ FSD”). As of December 31,
2024 and 2023, approximately $31,017,513and $31,506,214were deposited in a bank located in the PRC was not insured by FSD. While management
believes that these financial institutions and platform fund holder are of high credit quality, it continually monitors their credit worthiness.

Customer concentration risk

One customer accounted for100.0% of the
Company’s accounts receivable as of December 31, 2024, and there was noconcentration in accounts receivable as of December 31,
2023.

All of the Company’s revenue was generated
in the PRC. Two customers accounted for14.7% and10.5% of the Company’s revenue as of December 31, 2024, and there
was noconcentration in revenue as of December 31, 2023.

Vendor concentration risk

Three vendors, including a related party, accounted
for52.9%,27.1% (related party), and17.0% of the Company’s purchases for the years ended December 31, 2024. One vendor, a related
party accounted for15.8% and30.5% of the Company’s purchases for the years ended December