Company: OCG
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043484
Chunk: 135

Company: Oriental Culture Holding LTD
Filing Date: 2025-05-15
Form: 20-F
Item: Item 19
Chunk 135
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 with the construction of the Company’s office building
in Jiangsu, China. See Note 7 for details.

Intangible assets, net

Intangible assets, net, are stated at cost, less
accumulated amortization. Amortization expense is recognized on the straight-line basis over the estimated useful lives of the assets
as follows:

  Classification                                Estimated    
                                                Useful Life  
 ─────────────────────────────────────────────────────────────
  Artwork and collectible trading platform      5 years      
  Software                                      5 years      

Impairment for long-lived assets

Long-lived assets, including property and equipment
with finite lives are reviewed for impairment whenever events or changes in circumstances (such as a significant adverse change to market
conditions that will impact the future use of the assets) indicate that the carrying value of an asset may not be recoverable. The Company
assesses the recoverability of the asset based on the undiscounted future cash flows the asset is expected to generate and recognize an
impairment loss when estimated discounted future cash flows expected to result from the use of the asset plus net proceeds expected from
disposition of the asset, if any, are less than the carrying value of the asset. If an impairment is identified, the Company reduces the
carrying amount of the asset to its estimated fair value based on a discounted cash flow approach or, when available and appropriate,
to comparable market values. For the years ended December 31, 2024, 2023 and 2022, the Company recorded $356,676, nil, and nilof impairment
loss on intangible assets.

F-13

ORIENTAL CULTURE HOLDING LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Cost method investments

Entities in which the Company has the ability
to exercise significant influence, but does not have a controlling interest, are accounted for using the equity method. Significant influence
is generally considered to exist when the Company has voting shares of20% to50%, and other factors, such as representation on the board
of directors, voting rights and the impact of commercial arrangements, are considered in determining whether the equity method of accounting
is appropriate. Under this method of accounting, the Company records its proportionate share of the net earnings or losses of equity method
investees and a corresponding increase or decrease to the investment balances. Dividends received from the equity method investments are
recorded as reductions in the cost of such investments