Company: OCG
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043484
Chunk: 146

Company: Oriental Culture Holding LTD
Filing Date: 2025-05-15
Form: 20-F
Item: Item 19
Chunk 146
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2, respectively.

Segments

FASB ASC 280, Segment Reporting, establishes standards
for reporting information about operating segments on a basis consistent with the Company’s internal organizational structure as
well as information about geographical areas, business segments and major customers in financial statements for details on the Company’s
business segments.

The Company uses the management approach to determine
reportable operating segments. The management approach considers the internal organization and reporting used by the Company’s chief
operating decision maker (“ CODM”) for making decisions, allocating resources and assessing performance. The key measure of
segment profitability that the CODM uses to allocate resources and assess performance is consolidated net (loss) income, as reported on
the consolidated statements of operations. The Company’s CODM has been identified as the Chief Executive Officer of the Company,
who reviews consolidated results when making decisions about allocating resources and assessing performance of the Company.

Based on management’s assessment, the Company
determined that it has onlyoneoperating segment and thereforeonereportable segment as defined by ASC 280, which is facilitating e-commerce
of artwork/collectables trading. All of the Company’s net revenues were generated in the PRC and Hong Kong.

The following table presents the significant revenue
and expense categories of the Company’s single operating segment:

                                                    For the                                                                                             
                                                    year ended                                                                                          
                                                    December 31,                       December 31,                       December 31,                  
                                                    2024                               2023                               2022                          
 ────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Total revenues                                    $                     622,690      $                   1,580,058      $                 17,813,139  
  Less cost of revenues                                                   182,181                            405,628                           996,459  
  Less significant segment expenses:                                                                                                                    
  Selling and marketing:                                                                                                                                
  Employee expenses                                                       146,601                            185,483                           214,506  
  Commission expenses                                                      30,328                            225,846                         6,900,037  
  Other selling and marketing expenses                                     30,913                            206,782                           553,705  
  Selling and marketing - related party                                         -                                  -                            43,590  
  General and administrative:                                                                                                                           
  Employee expenses                                                       560,611                            707,216                           691,180  
  Stock compensation expense                                              573,000                             92,963