Company: OCG
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043484
Chunk: 72

Company: Oriental Culture Holding LTD
Filing Date: 2025-05-15
Form: 20-F
Item: Item 5
Chunk 72
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.6
million or 59.3% from approximately $1.0 million including approximately $0.3 million from a related party for the year ended December
31, 2022 to approximately $0.4 million including approximately $0.06 million from a related party for the same period in 2023. The decrease
in cost of revenues was primarily due to the decrease in warehouse storage fees of approximately $0.2 million and decrease in agency related
fees of approximately $0.2 million. The warehouse storage fees were charged based on certain percentage of listing value of commodities,
decrease in warehouse storage fee was due to decrease in overall listing value of products.

Gross Profit

Gross profit decreased by approximately $15.7
million or 93.0% from approximately $16.8 million for the year ended December 31, 2022 to approximately $1.2 million for the year ended
December 31, 2023. Gross margin for the years ended December 31, 2023 and 2022 were approximately 74.3% and approximately 94.4%, respectively.

Selling and Marketing Expenses

The following table sets forth our operating expenses
by amounts and percentages for the periods indicated:

                                                    For the Years Ended December 31,                                                                                    
                                                    2023                                                                                                                
 ────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
                                                    Expense                                                                                                             
  Selling and marketing                             $                                       (618,111       11.2       (7,668,248       53.9      7,050,137       (91.9  
  Selling and marketing – related party                                                            -        0.0          (43,590        0.3         43,590      (100.0  
  General and administrative                                                              (4,657,438       84.5       (6,276,661       44.1      1,619,223       (25.8  
  General and administrative – related parties                                              (234,289        4.3         (238,830        1.7          4,541        (1.9  
  Total operating expenses                          $                                     (5,509,838      100.0      (14,227,329      100.0      8,717,491       (61.3  

Selling expenses decreased by approximately $7.1