Company: OCG
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043484
Chunk: 73

Company: Oriental Culture Holding LTD
Filing Date: 2025-05-15
Form: 20-F
Item: Item 5
Chunk 73
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million, or 92.0%, from approximately $7.7 million including approximately $0.4 million to a related party for the year ended December
31, 2022 to approximately $0.6 million including nil to a related party for the same period in 2023. The decrease was primarily due to
the decrease in marketing expenses of approximately $6.7 million as we paid less commissions due to less new listings and traders introduced
by third parties. The Company has two types of reward program, one is to rebate directly to customers while the other is to reward third
party sales agents. Rebates to customers are considered as a reduction in sales price, so the rebate is instantaneous while rebates to
third party sales agents is usually paid in one to three months in arrears.

General and Administrative Expenses

Our general and administrative expenses decreased
by approximately $1.6 million, or 24.9% from approximately $6.5 million including approximately $0.2 million to a related party for the
year ended December 31, 2022 to approximately $4.9 million including approximately $0.2 million to a related party for the same period
in 2023. The decrease in our general and administrative expenses was primarily due to decreased depreciation and amortization expenses
of approximately $0.4 million, decreased professional fees of approximately $0.4 million, decreased travel and meeting related fees of
approximately $0.2 million and decreased office and management expenses of approximately $0.9 million as we incurred less professional
services and management needs due to less business and revenues in 2023.

Other Income

Total other income increased by approximately
$0.1 million, or 15.5%, from approximately $0.7 million for the year ended December 31, 2022 to approximately $0.8 million for the same
period in 2023. The increase was mainly due to the increase of approximately $0.08 million in rental income that we subleased part of
our office space to the third party. Other income also included government subsidies of approximately $100 to promote local business development
and a VAT refund of approximately $2,000. As part of VAT reform in 2019, a taxpayer in certain service industries was allowed to reclaim
an additional 10% of input VAT credit against the amount of VAT payable from April 1, 2019 to December 31, 2023.

Provision for Income Taxes

Our