Company: OCG
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043484
Chunk: 81

Company: Oriental Culture Holding LTD
Filing Date: 2025-05-15
Form: 20-F
Item: Item 5
Chunk 81
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collected from traders for listing their products on the platform. Our only performance obligation is to provide the listing on our platform.
We recognize the related revenue upon the completion of our performance obligation which is when the customers’ products are successfully
listed on our platforms. The fees are determined by contracts with the customers as a fixed percentage of the listing price. For some
products, we may negotiate a flat rate instead of a percentage of the listing price. For listing service contracts in which the related
performance obligations can be completed within a short period of time, we recognize the related revenue upon the completion of our performance
obligations.

Transaction fee revenue

Transaction fee revenue is generally calculated
based on the transaction value of collectibles, artwork and commodities per transaction. Transaction value is the dollar amount of the
purchase and sale of the collectibles, artwork and commodities after they are listed on our platform. Our performance obligation is to
facilitate the trading transactions. Transaction fee revenue is recognized and collected at the time when the transaction is completed.

Transaction fee revenue also includes predetermined
monthly transaction fees for select traders with large transactions and are negotiated on a case by case basis. Predetermined transaction
fees are recognized and earned over the specified service period.

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

In 2018, the Company started a customer reward
points program, pursuant to which reward points were issued for opening a new account or referring customers to open accounts with us
during our promotion period. In that regard, customers are required to redeem certain reward points for new listings along with the regular
listing services fees. If a customer does not own any reward points, he/she can purchase them from other customers on our platform. We
do 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 we charge a transaction fee from such points trading.
We assessed if a material right existed when we initially issued the reward points and if the reward 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. Transaction fee revenue
from the trading of points amounted to approximately $1,800 and $61 for the years ended December 31, 2023 and