Company: OCG
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043484
Chunk: 65

Company: Oriental Culture Holding LTD
Filing Date: 2025-05-15
Form: 20-F
Item: Item 5
Chunk 65
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 and marketing                             $                                       (207,842        5.7        (618,111       11.2        410,269      (66.4  
  General and administrative                                                              (3,325,474       91.4      (4,657,438       84.5      1,331,964      (28.6  
  General and administrative – related parties                                              (104,391        2.9        (234,289        4.3        129,898      (55.4  
  Total operating expenses                          $                                     (3,637,707      100.0      (5,509,838      100.0      1,872,131      (34.0  

Selling expenses decreased by approximately $0.4
million, or 66.4%, from approximately $0.6 million for the year ended December 31, 2023 to approximately $0.2 million for the same period
in 2024. The decrease was primarily due to the decrease in marketing expenses of approximately $0.2 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 are usually paid in one to three months in arrears.

General and Administrative Expenses

Our general and administrative expenses decreased
by approximately $1.5 million, or 29.9% from approximately $4.9 million including approximately $0.2 million to a related party for the
year ended December 31, 2023 to approximately $3.4 million including approximately $0.1 million to a related party for the same period
in 2024. The decrease in our general and administrative expenses was primarily due to decreased tech service fee of approximately $0.9
million, decreased professional fees of approximately $0.5 million, decreased office expenses of approximately $0.1 million, decreased
depreciation and amortization expenses of approximately $0.1 million, and decreased travel and meeting related fees of approximately $0.1
million and as we incurred less professional services and management needs due to less business and revenues in 2024, offset by increased
stock compensation expenses of approximately $0.5 million