Company: OCG
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043484
Chunk: 78

Company: Oriental Culture Holding LTD
Filing Date: 2025-05-15
Form: 20-F
Item: Item 5
Chunk 78
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Other than as disclosed elsewhere in this annual
report, we are not aware of any trends, uncertainties, demands, commitments or events for the year ended December 31, 2024 that are
reasonably likely to have a material effect on our net revenues, income, profitability, liquidity or capital resources, or that would
cause the disclosed financial information to be not necessarily indicative of future operating results or financial conditions.

E. Critical Accounting Policies and Estimates

Our management’s discussion and analysis
of our financial condition and results of operations are based on our consolidated financial statements that have been prepared in accordance
with accounting principles generally accepted in the United States (“ U. S. GAAP”). The preparation of financial statements
requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent
assets and liabilities at the date of the financial statements as well as the reported net sales and expenses during the reporting periods.
On an ongoing basis, we evaluate our estimates and assumptions. We base our estimates on historical experience and on various other factors
that we believe are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value
of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different
assumptions or conditions.

While our significant accounting policies are
described in Note 2 to our consolidated financial statements included elsewhere in this annual report, we believe that the following accounting
policies are the most critical to aid you in fully understanding and evaluating our management’s discussion and analysis:

Allowance for credit losses

Accounts receivable is amounts due from the Company’s
customers, mainly from the Company’s marketing revenue where the Company grant credits of 30-60 days.

Other receivables and other receivable related
party are short term primarily include funds which are held on a trading platform trust account with Nanjing Jinwang Art Purchase E-commerce
Co., Ltd., which is controlled or owned by Huajun Gao and/or Aimin Kong, each is a shareholder of the Company. The funds are not restricted
and can be withdrawn and used after the Company completes the necessary administrative procedures. The Company normally makes withdrawals
from this account monthly.

An allowance for credit losses may be established
and recorded based on management’s assessment of potential losses based on the credit history and relationships with the customers.
Management also periodically evaluates individual customer’s financial condition and record expected credit loss in the period in
which loss is determined to be probable