Company: OCG
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043484
Chunk: 139

Company: Oriental Culture Holding LTD
Filing Date: 2025-05-15
Form: 20-F
Item: Item 19
Chunk 139
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 are required to redeem certain reward points for new listings along with the regular
listing services fees. If a customer does not have any reward points, he/she can purchase them from other customers on our platform. The
Company does not record revenue when customers redeem any points as it is considered as a prerequisite for a new listing in addition to
the regular services fees. The points are traded by and among our customers on the platform and the Company charges a transaction fee
from such points trading. The Company assessed if a material right existed when the Company initially issued the reward points and if
the points represent a separate performance obligation. In general, the points were given to customers based on existing accounts or promotions
without the customers having to acquire services from the Company, therefore there was no material right and no separate performance obligation
exists. There is no liability for unredeemed awards. Transaction fee revenue from the trading of reward points amounted to approximately
$61, $1,800, and $1.1million for the years ended December 31, 2024, 2023 and 2022, respectively.

The Company considers itself as provider of the
services as it has control of the specified services at any time before it is transferred to the customers which is evidenced by (1) the
Company is primarily responsible to its customers for services offered where the Company owns the trading platform and the Company has
customer services team to directly service the customers; and (2) having latitude in establish pricing. Therefore, the Company acts
as the principal of these arrangements and reports revenue earned and costs incurred related to transaction fees on a gross basis.

F-15

ORIENTAL CULTURE HOLDING LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Predetermined transaction fees received in advance
of the specified service period are recorded as deferred revenue.

Marketing service fees

Marketing service fees are usually collected after
the Company completes its services and includes the following type of services:

  (1)      For certain marketing service agreements, the Company promises to assist its customer in connection with his/her listing and trading of his/her collectible/artwork or commodities on the Company...  

  (2)      Marketing service agreements also includes providing promotional services for customers’ items as where to place ads on well-known cultural and art exchange websites in China, to provide online...  

The marketing service fees are charged based on
the type of listing session that the customer applies for and whether the customer has listed and