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gives retroactive effect to the re-designation of ordinary shares on September 12, 2019 and the 2-for-1 forward share split to authorized, issued and outstanding shares on November 8, 2019. gives retroactive effect to the surrender of an aggregate of 12.5% of our then outstanding ordinary shares from our existing shareholders at no consideration to the Company as treasury shares on November 8, 2019 and retroactive effect to the second surrender of an aggregate of 30.0% of our then outstanding ordinary shares from our existing shareholders at no consideration to the Company as treasury shares on May 28, 2020. gives retroactive effect to the 2-for-1 forward share split and the concurrent surrender of 12.5% of our then outstanding ordinary shares, from our existing shareholders on November 8, 2019 and retroactive effect to the second surrender of 30.0% of our then outstanding ordinary shares, from our existing shareholders on May 28, 2020. gives retroactive effect to 2-for-1 forward share 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Note 1 – Nature of business and organization Oriental Culture Holding Ltd. (“Oriental Culture”) is a holding company incorporated on November 29, 2018, under the laws of the Cayman Islands. Oriental Culture Holding Ltd., its subsidiaries and variable interest entities and their subsidiaries are hereafter referred to as the “Company”. Oriental Culture has no substantial operations other than holding all of the outstanding share capital of Oriental Culture Development (“Oriental Culture BVI”) and China International Assets and Equity of Artworks Exchange Limited (“International Culture”). Oriental Culture BVI is also a holding company holding all of the outstanding share capital of HK Oriental Culture Investment Development Limited (“Oriental Culture HK”). Oriental Culture HK is also a holding company holding all of the outstanding equity of Nanjing Rongke Business Consulting Service Co., Ltd. (“Oriental Culture WFOE” or “WFOE”). The Company, through its direct subsidiary, Oriental Culture HK and variable interest entity (“VIE”), Jiangsu Yanggu Culture Development Co., Ltd. and subsidiaries (“Jiangsu Yanggu”) are engaged in providing online platforms that facilitate the e-commerce trading of artwork and collectables and the online trading of commodities, principally teas, Yunan Ham and mitten crabs. The Company’s headquarters are located in the City of Nanjing, in the People’s Republic of China (the “PRC” or “China”). All of the Company’s business activities are carried out by Oriental Culture HK and by Jiangsu Yanggu and its subsidiaries. On May 8, 2019, Oriental Culture completed its reorganization of entities under common control of various shareholders, who collectively owned 100% of the equity interests of Oriental Culture prior to the reorganization. Oriental Culture, Oriental Culture BVI, and Oriental Culture HK, were established as the holding companies of Oriental Culture WFOE. Oriental Culture WFOE is the primary beneficiary of Jiangsu Yanggu and its subsidiaries. Prior to the reorganization, Jiangsu Yanggu and International Culture were under common control, as the same group of shareholders held more than 50% of the voting ownership interest of each entity, and contemporaneous written evidence of agreements to vote a majority of the entities’ shares in concert exists. Oriental Culture, International Culture and Jiangsu Yanggu were under common control, which resulted in the consolidation of International Culture and Jiangsu Yanggu, which has been accounted for as a reorganization of entities under common control at their carrying values. The financial statements are prepared on the basis as if the reorganization became effective as of the beginning of the first period presented in the accompanying consolidated financial statements of Oriental Culture. On May 9, 2019, the Company acquired all outstanding equity interest of HKDAEx Limited (“HKDAEx”), which provides the Company’s customers with an additional online trading platform in Hong Kong. Therefore, during the second half of 2019, the Company expanded its business operations to include online trading of commodities, primarily teas, Yunan Ham and mitten crabs on the platform of HKDAEx. Contractual Arrangements In the PRC, investment activities by foreign investors are principally governed by the Guidance Catalog of Industries for Foreign Investment, which was promulgated and is amended from time to time by the PRC Ministry of Commerce, or MOFCOM, and the PRC National Development and Reform Commission, or NDRC. In June 2019, the Guidance Catalog of Industries for Foreign Investment was replaced by the Special Administrative Measures (Negative List) for Foreign Investment Access (2019 Version). In June, 2020, the MOFCOM and the NDRC promulgated the Special Administrative Measures (Negative List) for Foreign Investment Access (2020 Version), or the Negative List, which became effective on July 23, 2020. The Negative List divides industries into two categories: restricted and prohibited. Industries not listed in the Negative List are generally open to foreign investment unless specifically restricted by other PRC regulations. Oriental Culture is a Cayman Islands company and its subsidiaries including Oriental Culture WFOE are considered foreign invested enterprises. Although the business the Company conducts through Jiangsu Yanggu is not within the category in which foreign investment is currently restricted or prohibited under the Negative List or other PRC Laws, the Company expects that in the future Jiangsu Yanggu will engage in marketing survey services for online marketplaces. Marketing survey services are within the category in which foreign investment is restricted pursuant to the Negative List. In addition, the Company intends to centralize the Company’s management and operations in the PRC to avoid being restricted to conduct certain business activities which are important for the Company’s current or future business but are currently restricted or might be restricted in the future. As such, Jiangsu Yanggu is controlled through contractual arrangements in lieu of direct equity ownership by the Company or any of its subsidiaries. Such contractual arrangements are comprised of a series of four agreements (collectively the “Contractual Arrangements”), of which the significant terms are as follows: Contractual Agreements with Jiangsu Yanggu Technical Consultation and Services Agreement Pursuant to the technical consultation and services agreement between Oriental Culture WFOE and Jiangsu Yanggu, Oriental Culture WFOE has the exclusive right to provide consultation and services to Jiangsu Yanggu in the areas of management, funding, human resources, technology and intellectual property rights. For such services, Jiangsu Yanggu agrees to pay service fees in the amount of 100% of its net income to Oriental Culture WFOE and also Oriental Culture WFOE has the obligation to absorb 100% of the losses of Jiangsu Yanggu. The WFOE exclusively owns any intellectual property rights arising from the performance of this Technical Consultation and Services Agreement. The term of the Technical Consultation and Service Agreement is 20 years until May 7, 2039. Oriental Culture WFOE may terminate this agreement at any time by giving 30 days’ written notice to Jiangsu Yanggu. Equity Pledge Agreement Pursuant to the Equity Pledge Agreements among Oriental Culture WFOE, Jiangsu Yanggu and Jiangsu Yanggu’s shareholders dated May 8, 2019, amended on January 28, 2021, each of Jiangsu Yanggu’s shareholders pledged all of their equity interests in Jiangsu Yanggu to Oriental Culture WFOE to guarantee Jiangsu Yanggu’s performance of relevant obligations and indebtedness under the Technical Consultation and Services Agreement and other agreements. If Jiangsu Yanggu breaches its obligations under the Contractual Agreements, Oriental Culture WFOE, as pledgee, will be entitled to certain rights, including the right to dispose of the pledged equity interests in order to recover the damages associated with such breach. The pledge shall be continuously valid until all of Jiangsu Yanggu’s shareholders are no longer shareholders of Jiangsu Yanggu, or until the satisfaction of all Jiangsu Yanggu’s obligations under the Contractual Agreements. Equity Option Agreement Pursuant to the Equity Option Agreement among Oriental Culture WFOE, Jiangsu Yanggu and Jiangsu Yanggu’s shareholders dated May 8, 2019, amended on January 28, 2021, Oriental Culture WFOE has the exclusive right to require Jiangsu Yanggu’s shareholders to fulfill and complete all approval and registration procedures required under PRC laws for Oriental Culture WFOE to purchase, or designate one or more persons to purchase, each shareholders’ equity interests in Jiangsu Yanggu, in one or multiple transactions, at any time or from time to time, at Oriental Culture WFOE’s sole and absolute discretion. The purchase price shall be the lowest price allowed by PRC laws. The Equity Option Agreement shall remain effective until all the equity interests owned by Jiangsu Yanggu’s shareholders have been legally transferred to Oriental Culture WFOE or its designee(s). Voting Rights Proxy and Financial Supporting Agreements Pursuant to the Voting Rights Proxy and Financial Supporting Agreements, as amended, among the shareholders of Jiangsu Yanggu and Oriental Culture WFOE, Jiangsu Yanggu’s shareholders have given Oriental Culture WFOE an irrevocable proxy to act on their behalf on all matters pertaining to Jiangsu Yanggu and to exercise all of their rights as shareholders of Jiangsu Yanggu, including the right to attend shareholders meeting, to exercise voting rights and to transfer all or a part of their equity interests in Jiangsu Yanggu. In consideration of such granted rights, Oriental Culture WFOE agrees to provide the necessary financial support to Jiangsu Yanggu whether or not Jiangsu Yanggu incurs losses, and agrees not to request repayment if Jiangsu Yanggu is unable to do so. The agreements shall remain in effect for 20 years until May 7, 2039.  Based on the foregoing contractual arrangements, which grant Oriental Culture WFOE effective control of Jiangsu Yanggu and its subsidiaries and obligates Oriental Culture WFOE to absorb 100% of the loss from its activities, as well as enable Oriental Culture WFOE to receive 100% of the expected residual returns, the Company accounts for Jiangsu Yanggu and its subsidiaries as VIEs. Accordingly, the Company consolidates the accounts of Jiangsu Yanggu and its subsidiaries in accordance with Regulation S-X-3A-02 promulgated by the Securities Exchange Commission (“SEC”), and the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Section 810-10, Consolidation. The accompanying consolidated financial statements reflect the activities of the Company and each of the following entities: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr> <td style="vertical-align: top; border-bottom: black 1.5pt solid; padding-left: 9pt; text-indent: -9pt">Name</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom; border-bottom: black 1.5pt solid">Background</td> <td style="vertical-align: bottom"> </td> <td style="border-bottom: black 1.5pt solid; text-align: center">Ownership</td></tr> <tr style="background-color: #CCEEFF"> <td style="vertical-align: top; width: 30%; padding-left: 9pt; text-indent: -9pt">China International Assets and Equity of Artworks Exchange Limited (“International Culture”)</td> <td style="vertical-align: bottom; width: 1%"> </td> <td style="vertical-align: bottom; width: 48%">● A Hong Kong company ● Incorporated on November 22, 2013, commenced operations in March 2018. ● Engages in providing an online platform that facilitates e-commerce of artwork and collectibles trading</td> <td style="vertical-align: bottom; width: 1%"> </td> <td style="width: 20%">100%</td></tr> <tr> <td style="vertical-align: top; padding-left: 9pt; text-indent: -9pt">HKDAEx Limited (“HKDAEx”)</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom">● A Hong Kong company ● Incorporated on April 18, 2018 ● Operating entity engages in e-commerce of commodities trading, such as teas and Yunan Ham and mitten crabs</td> <td style="vertical-align: bottom"> </td> <td>100%</td></tr> <tr style="background-color: #CCEEFF"> <td style="vertical-align: top; padding-left: 9pt; text-indent: -9pt">Oriental Culture BVI</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom">● A British Virgin Islands company ● Incorporated on December 6, 2018</td> <td style="vertical-align: bottom"> </td> <td>100%</td></tr> <tr> <td style="vertical-align: top; padding-left: 9pt; text-indent: -9pt">Oriental Culture HK</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom">● A Hong Kong company ● Incorporated on January 3, 2019</td> <td style="vertical-align: bottom"> </td> <td>100% owned by Oriental Culture BVI</td></tr> <tr style="background-color: #CCEEFF"> <td style="vertical-align: top; padding-left: 9pt; text-indent: -9pt">Oriental Culture WFOE</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom">● A PRC limited liability company and deemed a wholly foreign owned enterprise (“WFOE”) ● Incorporated on May 7, 2019</td> <td style="vertical-align: bottom"> </td> <td>100% owned by Oriental Culture HK</td></tr> <tr> <td style="vertical-align: top; padding-left: 9pt; text-indent: -9pt">Jiangsu Yanggu</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom">● A PRC limited liability company ● Incorporated on August 23, 2017, commenced operations in March 2018. ● Holding company of Nanjing Yanyu and Nanjing Yanqing</td> <td style="vertical-align: bottom"> </td> <td>VIE of Oriental Culture WFOE</td></tr> <tr style="background-color: #CCEEFF"> <td style="vertical-align: top; padding-left: 9pt; text-indent: -9pt">Nanjing Yanyu Information Technology Co., Ltd. (“Nanjing Yanyu”)</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom">● A PRC limited liability company ● Incorporated on June 7, 2018 ● Provides support services to Jiangsu Yanggu, Kashi Longrui and Kashi Dongfang</td> <td style="vertical-align: bottom"> </td> <td>100% owned by Jiangsu Yanggu</td></tr> <tr> <td style="vertical-align: top; padding-left: 9pt; text-indent: -9pt">Nanjing Yanqing Information Technology Co., Ltd. (“Nanjing Yanqing”)</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom">● A PRC limited liability company ● Incorporated on May 17, 2018 ● Holding company of Kashi Longrui and Kashi Dongfang</td> <td style="vertical-align: bottom"> </td> <td>100% owned by Jiangsu Yanggu</td></tr> <tr style="background-color: #CCEEFF"> <td style="vertical-align: top; padding-left: 9pt; text-indent: -9pt">Kashi Longrui Business Management Service Co., Ltd. (“Kashi Longrui”)</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom">● A PRC limited liability company ● Incorporated on July 19, 2018 ● Operating entity provides marketing services</td> <td style="vertical-align: bottom"> </td> <td>100% owned by Nanjing Yanqing</td></tr> <tr> <td style="vertical-align: top; padding-left: 9pt; text-indent: -9pt">Kashi Dongfang Cangpin Culture Development Co., Ltd. (“Kashi Dongfang”)</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom">● A PRC limited liability company ● Incorporated on August 29, 2018 ● Operating entity provides listing and warehouse services</td> <td style="vertical-align: bottom"> </td> <td>100% owned by Nanjing Yanqing</td></tr> </table>

1.00

0.50

For such services, Jiangsu Yanggu agrees to pay service fees in the amount of 100% of its net income to Oriental Culture WFOE and also Oriental Culture WFOE has the obligation to absorb 100% of the losses of Jiangsu Yanggu. Based on the foregoing contractual arrangements, which grant Oriental Culture WFOE effective control of Jiangsu Yanggu and its subsidiaries and obligates Oriental Culture WFOE to absorb 100% of the loss from its activities, as well as enable Oriental Culture WFOE to receive 100% of the expected residual returns, the Company accounts for Jiangsu Yanggu and its subsidiaries as VIEs. <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr> <td style="vertical-align: top; border-bottom: black 1.5pt solid; padding-left: 9pt; text-indent: -9pt">Name</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom; border-bottom: black 1.5pt solid">Background</td> <td style="vertical-align: bottom"> </td> <td style="border-bottom: black 1.5pt solid; text-align: center">Ownership</td></tr> <tr style="background-color: #CCEEFF"> <td style="vertical-align: top; width: 30%; padding-left: 9pt; text-indent: -9pt">China International Assets and Equity of Artworks Exchange Limited (“International Culture”)</td> <td style="vertical-align: bottom; width: 1%"> </td> <td style="vertical-align: bottom; width: 48%">● A Hong Kong company ● Incorporated on November 22, 2013, commenced operations in March 2018. ● Engages in providing an online platform that facilitates e-commerce of artwork and collectibles trading</td> <td style="vertical-align: bottom; width: 1%"> </td> <td style="width: 20%">100%</td></tr> <tr> <td style="vertical-align: top; padding-left: 9pt; text-indent: -9pt">HKDAEx Limited (“HKDAEx”)</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom">● A Hong Kong company ● Incorporated on April 18, 2018 ● Operating entity engages in e-commerce of commodities trading, such as teas and Yunan Ham and mitten crabs</td> <td style="vertical-align: bottom"> </td> <td>100%</td></tr> <tr style="background-color: #CCEEFF"> <td style="vertical-align: top; padding-left: 9pt; text-indent: -9pt">Oriental Culture BVI</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom">● A British Virgin Islands company ● Incorporated on December 6, 2018</td> <td style="vertical-align: bottom"> </td> <td>100%</td></tr> <tr> <td style="vertical-align: top; padding-left: 9pt; text-indent: -9pt">Oriental Culture HK</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom">● A Hong Kong company ● Incorporated on January 3, 2019</td> <td style="vertical-align: bottom"> </td> <td>100% owned by Oriental Culture BVI</td></tr> <tr style="background-color: #CCEEFF"> <td style="vertical-align: top; padding-left: 9pt; text-indent: -9pt">Oriental Culture WFOE</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom">● A PRC limited liability company and deemed a wholly foreign owned enterprise (“WFOE”) ● Incorporated on May 7, 2019</td> <td style="vertical-align: bottom"> </td> <td>100% owned by Oriental Culture HK</td></tr> <tr> <td style="vertical-align: top; padding-left: 9pt; text-indent: -9pt">Jiangsu Yanggu</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom">● A PRC limited liability company ● Incorporated on August 23, 2017, commenced operations in March 2018. ● Holding company of Nanjing Yanyu and Nanjing Yanqing</td> <td style="vertical-align: bottom"> </td> <td>VIE of Oriental Culture WFOE</td></tr> <tr style="background-color: #CCEEFF"> <td style="vertical-align: top; padding-left: 9pt; text-indent: -9pt">Nanjing Yanyu Information Technology Co., Ltd. (“Nanjing Yanyu”)</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom">● A PRC limited liability company ● Incorporated on June 7, 2018 ● Provides support services to Jiangsu Yanggu, Kashi Longrui and Kashi Dongfang</td> <td style="vertical-align: bottom"> </td> <td>100% owned by Jiangsu Yanggu</td></tr> <tr> <td style="vertical-align: top; padding-left: 9pt; text-indent: -9pt">Nanjing Yanqing Information Technology Co., Ltd. (“Nanjing Yanqing”)</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom">● A PRC limited liability company ● Incorporated on May 17, 2018 ● Holding company of Kashi Longrui and Kashi Dongfang</td> <td style="vertical-align: bottom"> </td> <td>100% owned by Jiangsu Yanggu</td></tr> <tr style="background-color: #CCEEFF"> <td style="vertical-align: top; padding-left: 9pt; text-indent: -9pt">Kashi Longrui Business Management Service Co., Ltd. (“Kashi Longrui”)</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom">● A PRC limited liability company ● Incorporated on July 19, 2018 ● Operating entity provides marketing services</td> <td style="vertical-align: bottom"> </td> <td>100% owned by Nanjing Yanqing</td></tr> <tr> <td style="vertical-align: top; padding-left: 9pt; text-indent: -9pt">Kashi Dongfang Cangpin Culture Development Co., Ltd. (“Kashi Dongfang”)</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom">● A PRC limited liability company ● Incorporated on August 29, 2018 ● Operating entity provides listing and warehouse services</td> <td style="vertical-align: bottom"> </td> <td>100% owned by Nanjing Yanqing</td></tr> </table> China International Assets and Equity of Artworks Exchange Limited ("International Culture") A Hong Kong company Incorporated on November 22, 2013, commenced operations in March 2018. Engages in providing an online platform that facilitates e-commerce of artwork and collectibles trading

1.00

HKDAEx Limited ("HKDAEx") A Hong Kong company Incorporated on April 18, 2018 Operating entity engages in e-commerce of commodities trading, such as teas and Yunan Ham and mitten crabs

1.00

Oriental Culture BVI A British Virgin Islands company Incorporated on December 6, 2018

1.00

Oriental Culture HK A Hong Kong company Incorporated on January 3, 2019

100% owned by Oriental Culture BVI

Oriental Culture WFOE A PRC limited liability company and deemed a wholly foreign owned enterprise ("WFOE") Incorporated on May 7, 2019

100% owned by Oriental Culture HK

Jiangsu Yanggu A PRC limited liability company Incorporated on August 23, 2017, commenced operations in March 2018. Holding company of Nanjing Yanyu and Nanjing Yanqing

VIE of Oriental Culture WFOE

Nanjing Yanyu Information Technology Co., Ltd. ("Nanjing Yanyu") A PRC limited liability company Incorporated on June 7, 2018 Provides support services to Jiangsu Yanggu, Kashi Longrui and Kashi Dongfang

100% owned by Jiangsu Yanggu

Nanjing Yanqing Information Technology Co., Ltd. ("Nanjing Yanqing") A PRC limited liability company Incorporated on May 17, 2018 Holding company of Kashi Longrui and Kashi Dongfang

100% owned by Jiangsu Yanggu

Kashi Longrui Business Management Service Co., Ltd. ("Kashi Longrui") A PRC limited liability company Incorporated on July 19, 2018 Operating entity provides marketing services

100% owned by Nanjing Yanqing

Kashi Dongfang Cangpin Culture Development Co., Ltd. ("Kashi Dongfang") A PRC limited liability company Incorporated on August 29, 2018 Operating entity provides listing and warehouse services

100% owned by Nanjing Yanqing

Note 2 – Summary of significant accounting policies Basis of presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and information pursuant to the rules and regulations of the Securities Exchange Commission (“SEC”). Principles of consolidation The consolidated financial statements include the accounts of the Company, its subsidiaries, and their VIEs. All intercompany transactions and balances are eliminated upon consolidation. Recapitalization On November 8, 2019, the Company effected a 2 for 1 forward share split of all issued and outstanding ordinary shares of the Company. In addition, all existing shareholders agreed to surrender to the Company as treasury shares, 12.5% of the then outstanding ordinary shares (3,100,000 ordinary shares) for no consideration. On May 28, 2020, all existing shareholders of the Company agreed to surrender an aggregate of 6,510,000 ordinary shares, or 30% of our then outstanding ordinary shares, at no consideration to be reserved as treasury shares of the Company. These transactions were treated as a recapitalization prior to the Company’s initial public offering. All share and per share amounts have been retroactively adjusted for this recapitalization for all periods presented. Use of estimates and assumptions The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenues and expenses during the periods presented. Significant accounting estimates reflected in the Company’s consolidated financial statements include revenue recognition, allowance for doubtful accounts, the useful lives of property and equipment and intangible assets and impairment of long-lived assets. Actual results could differ from these estimates. Foreign currency translation and transactions The reporting currency of the Company is the U.S. dollar. In the PRC, the Company conducts its businesses in the local currency, Renminbi (RMB), as its functional currency. Assets and liabilities are translated at the unified exchange rate as quoted by the People’s Bank of China at the end of the period. In Hong Kong, the Company conducts its business in the local currency, Hong Kong dollar (HKD), as its functional currency. Assets and liabilities are translated at the unified exchange rate as quoted by the Federal Reserve at the end of the period. The statements of income and cash flows are translated at the average translation rates during the reporting periods and the equity accounts are translated at historical rates. Translation adjustments resulting from this process are included in accumulated other comprehensive income (loss). Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the results of operations as incurred. Translation adjustments are included in accumulated other comprehensive income. The balance sheet amounts, with the exception of shareholder’s equity at December 31, 2020 and December 31, 2019 were translated at RMB 6.52 and RMB 6.98 to one U.S. dollar (USD), respectively. The average translation rates applied to the consolidated statements of income and cash flows for years ended December 31, 2020 and 2019 were RMB 6.90 to one USD. The balance sheet amounts, with the exception of shareholder’s equity at December 31, 2020 and 2019 were translated at HKD 7.75 and HKD 7.79 to one USD, respectively. The average translation rates applied to the consolidated statements of income and cash flows for years ended December 31, 2020 and 2019 were HKD 7.76 and HKD 7.84 to one USD, respectively. The shareholder’s equity accounts were translated at their historical rates. Amounts reported on the statement of cash flows will not necessarily agree with changes in the corresponding balances on the consolidated balance sheets.  Fair value measurement The accounting standards regarding fair value of financial instruments and related fair value measurements defines financial instruments and requires disclosure of the fair value of financial instruments held by the Company. The accounting standards define fair value, establish a three-level valuation hierarchy for disclosures of fair value measurements and enhance disclosure requirements for fair value measures. The three levels are defined as follows: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr> <td style="width: 0.25in; text-align: justify"> </td> <td style="vertical-align: top; width: 0.25in">● </td> <td style="text-align: justify">Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.</td></tr> <tr> <td style="text-align: justify"> </td> <td style="vertical-align: top"> </td> <td style="text-align: justify"> </td></tr> <tr> <td style="text-align: justify"> </td> <td style="vertical-align: top">● </td> <td style="text-align: justify">Level 2 inputs to the valuation methodology include quoted prices, other than those included in Level 1, for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments.</td></tr> <tr> <td style="text-align: justify"> </td> <td style="vertical-align: top"> </td> <td style="text-align: justify"> </td></tr> <tr> <td style="text-align: justify"> </td> <td style="vertical-align: top">● </td> <td style="text-align: justify">Level 3 inputs to the valuation methodology are unobservable and significant to the fair value.</td></tr> </table> The carrying amounts included in current assets and current liabilities in the consolidated balance sheets approximate their fair values because of the short-term nature of such instruments. Fair value disclosure: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2"> </td><td style="padding-bottom: 1.5pt"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="10" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2020 Fair Value</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Cost</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Level 1</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Level 2</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Level 3</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 52%; text-align: justify">Short-term investment</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: justify">$</td><td style="width: 9%; text-align: right">1,056,286</td><td style="width: 1%; text-align: justify"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: justify">$</td><td style="width: 9%; text-align: right">-</td><td style="width: 1%; text-align: justify"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: justify">$</td><td style="width: 9%; text-align: right">1,056,286</td><td style="width: 1%; text-align: justify"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: justify">$</td><td style="width: 9%; text-align: right">-</td><td style="width: 1%; text-align: justify"> </td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2"> </td><td style="padding-bottom: 1.5pt"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="10" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2019 Fair Value</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Cost</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Level 1</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Level 2</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Level 3</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 52%; text-align: justify">Short-term investment</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: justify">$</td><td style="width: 9%; text-align: right">1,749,092</td><td style="width: 1%; text-align: justify"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: justify">$</td><td style="width: 9%; text-align: right">-</td><td style="width: 1%; text-align: justify"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: justify">$</td><td style="width: 9%; text-align: right">1,749,092</td><td style="width: 1%; text-align: justify"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: justify">$</td><td style="width: 9%; text-align: right">-</td><td style="width: 1%; text-align: justify"> </td></tr> </table> The Company values its short-term investment using alternative pricing sources and market observable inputs, and accordingly the Company classifies the valuation techniques that use these inputs as Level 2. This investment has original maturities of less than 1 year and the carrying value approximates its fair value.  Cash and cash equivalents Cash and cash equivalents consist of cash in bank and money market funds which are unrestricted as to immediate withdrawal and use. Cash and cash equivalents also consist of funds which are held in our trading platform trust account entrusted with Nanjing Jinwang Art Purchase E-commerce Co., Ltd., our related party which are unrestricted as to immediate withdrawal and use. Cash and cash equivalents consist of the following:  <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="vertical-align: bottom; text-align: center; white-space: nowrap"> </td><td style="vertical-align: bottom; font-weight: bold; padding-bottom: 1.5pt; white-space: nowrap; text-align: center"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; vertical-align: bottom; font-weight: bold; text-align: center; white-space: nowrap">December 31, 2020</td><td style="vertical-align: bottom; padding-bottom: 1.5pt; font-weight: bold; white-space: nowrap; text-align: center"> </td><td style="vertical-align: bottom; font-weight: bold; padding-bottom: 1.5pt; white-space: nowrap; text-align: center"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; vertical-align: bottom; font-weight: bold; text-align: center; white-space: nowrap">December 31, 2019</td><td style="vertical-align: bottom; padding-bottom: 1.5pt; font-weight: bold; white-space: nowrap; text-align: center"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 76%; text-align: justify">Cash in bank</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: justify">$</td><td style="width: 9%; text-align: right">18,230,118</td><td style="width: 1%; text-align: justify"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: justify">$</td><td style="width: 9%; text-align: right">911,770</td><td style="width: 1%; text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify">Cash held in trading platform trust account</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">2,727,082</td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">1,130,383</td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1.5pt">Money market funds</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">3,078,974</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">7,142,518</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify; padding-bottom: 4pt">Total cash and cash equivalents</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: justify">$</td><td style="border-bottom: Black 4pt double; text-align: right">24,036,174</td><td style="padding-bottom: 4pt; text-align: justify"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: justify">$</td><td style="border-bottom: Black 4pt double; text-align: right">9,184,671</td><td style="padding-bottom: 4pt; text-align: justify"> </td></tr> </table> Short-term investment The short-term investment represents an investment in a bank-issued wealth management product with underlying investments in cash, bonds and equity funds. The investment product is issued by Ping An Bank. The investment has a maturity of less than 1 year and its carrying value approximates its fair value. The gain from sale of this investment is recognized in the statements of income and comprehensive income. Gain from investment for the years ended December 31, 2020 and 2019 amounted to $93,007 and $29,008, respectively. Accounts receivable, net Accounts receivable represents amounts due from the Company’s customers. An allowance for doubtful accounts may be established and recorded based on management’s assessment of potential losses based on the credit history and relationships with the customers. Management reviews its receivables on a regular basis to determine if the allowance for doubtful accounts is adequate and adjusts the allowance when necessary. Delinquent account balances are written-off against the allowance for doubtful accounts after management has determined that the likelihood of collection is not probable. The Company also considered the economic implications of COVID-19 on its estimates and provided an allowance for doubtful accounts of approximately $117,000 and then wrote off same amount for the year ended December 31, 2020. Other receivables and prepaid expenses Other receivables that are short term in nature includes employee travel advances in the normal course of business and other miscellaneous items. An allowance for doubtful accounts may be established and recorded based on management’s assessment of the likelihood of realization or collection. Management reviews these items on a regular basis to determine if the allowance for doubtful accounts is adequate, and adjusts the allowance when necessary. Delinquent account balances are written-off against the allowance for doubtful accounts after management has determined that the likelihood of realization or collection is not probable. No allowance was required as of December 31, 2020 and 2019. Prepaid expenses include advance payments made to vendors for certain prepaid services such as system service fees, prepaid rent for our office and prepaid taxes. Escrow In connection with the Company’s initial public offering in December 2020, $600,000 of the net proceeds was deposited into an escrow account for underwriters for 24 months from the closing of the offering to cover any potential claims related to the offering. If no claims are made, the funds will be released by the underwriters to the Company in December 2022. Deposit The Company entered into a memorandum of understanding (“MOU”) to acquire office buildings and the related land use rights in November 2020 with a third-party seller. The close of the transaction was dependent on the seller obtaining a permit regarding the proposed use of the site. Subsequent to December 31, 2020, the Company terminated the MOU as the seller was unable to obtain the required permit and the Company received a full refund of the deposit (see Note 6). Property and equipment, net Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the assets with no residual value. The estimated useful lives are as follows: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom; "> <td style="text-align: justify"> </td> <td> </td> <td style="border-bottom: black 1.5pt solid; text-align: center">Useful Life</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 73%; text-align: justify">Office equipment and furnishings</td> <td style="width: 1%"> </td> <td style="width: 25%; text-align: center">1 - 5 years</td> <td style="width: 1%"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify">Electronic equipment</td> <td> </td> <td style="text-align: center">2 - 5 years</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Server room equipment</td> <td> </td> <td style="text-align: center">5 years</td> <td> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify">Vehicles</td> <td> </td> <td style="text-align: center">5 years</td> <td> </td></tr> <tr style="background-color: rgb(204,238,255)"> <td style="vertical-align: top">Leasehold improvements</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom; text-align: center">lesser of remaining lease term or expected useful life</td> <td style="vertical-align: bottom"> </td></tr> </table> The cost and related accumulated depreciation and amortization of assets sold or otherwise retired are eliminated from the accounts and any gain or loss is included in the consolidated statements of income and other comprehensive income. Expenditures for maintenance and repairs are charged to expense as incurred, while additions, renewals and betterments, which are expected to extend the useful life of an asset, are capitalized. The Company also re-evaluates the periods of depreciation and amortization to determine whether subsequent events and circumstances warrant revised estimates of useful lives. Intangible assets, net Intangible assets, net, are stated at cost, less accumulated amortization. Amortization expense is recognized on the straight-line basis over the estimated useful lives of the assets as follows: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr> <td style="vertical-align: bottom; border-bottom: black 1.5pt solid; width: 81%; text-align: left">Classification</td> <td style="width: 1%; text-align: justify"> </td> <td style="border-bottom: black 1.5pt solid; width: 17%; text-align: center">Estimated Useful Life</td> <td style="width: 1%; text-align: justify"> </td></tr> <tr style="background-color: rgb(204,238,255)"> <td style="text-align: justify">Artwork trading platform</td> <td style="text-align: justify"> </td> <td style="text-align: center">5 years</td> <td style="text-align: justify"> </td></tr> <tr> <td style="text-align: justify">Software</td> <td style="text-align: justify"> </td> <td style="text-align: center">5 years</td> <td style="text-align: justify"> </td></tr> </table> Impairment of long-lived assets Long-lived assets, including property and equipment with finite lives are reviewed for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate that the carrying value of an asset may not be recoverable. The Company assesses the recoverability of the asset based on the undiscounted future cash flows the asset is expected to generate and recognize an impairment loss when estimated discounted future cash flows expected to result from the use of the asset plus net proceeds expected from disposition of the asset, if any, are less than the carrying value of the asset. If an impairment is identified, the Company reduces the carrying amount of the asset to its estimated fair value based on a discounted cash flow approach or, when available and appropriate, to comparable market values. As of December 31, 2020 and 2019, no impairment of long-lived assets was recognized. Investments Entities in which the Company has the ability to exercise significant influence, but does not have a controlling interest, are accounted for using the equity method. Significant influence is generally considered to exist when the Company has voting shares representing 20% to 50%, and other factors, such as representation on the board of directors, voting rights and the impact of commercial arrangements, are considered in determining whether the equity method of accounting is appropriate. Under this method of accounting, the Company records its proportionate share of the net earnings or losses of equity method investees and a corresponding increase or decrease to the investment balances. Dividends received from the equity method investments are recorded as reductions in the cost of such investments. The Company generally considers an ownership interest of 20% or higher to represent significant influence. The Company accounts for the investments in entities over which it has neither control nor significant influence, and no readily determinable fair value is available, using the investment cost minus any impairment, if necessary. Investments are evaluated for impairment when facts or circumstances indicate that the fair value of the long-term investment is less than its carrying value. An impairment loss is recognized when a decline in fair value is determined to be other-than-temporary. The Company reviews several factors to determine whether a loss is other-than-temporary. These factors include, but are not limited to, the: (i) nature of the investment; (ii) cause and duration of the impairment; (iii) extent to which fair value is less than cost; (iv) financial condition and near-term prospects of the investment; and (v) ability to hold the security for a period of time sufficient to allow for any anticipated recovery in fair value. No events have occurred that indicated another-than-temporary differences for the years ended December 31, 2020 and 2019. Deferred revenue Payments received from customers before all of the relevant criteria for revenue recognition are recorded as deferred revenue. <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="white-space: nowrap; text-align: center"> </td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="white-space: nowrap; border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2020</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold"> </td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="white-space: nowrap; border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2019</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 76%; text-align: justify">Beginning balance</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: justify">$</td><td style="width: 9%; text-align: right">176,457</td><td style="width: 1%; text-align: justify"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: justify">$</td><td style="width: 9%; text-align: right">823,290</td><td style="width: 1%; text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify">Customer advances</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">18,134,308</td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">10,035,537</td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Recognized as revenues</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">(18,079,616</td><td style="text-align: justify">)</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">(10,670,840</td><td style="text-align: justify">)</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify; padding-bottom: 1.5pt">Effect of exchange rate</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">12,206</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(11,530</td><td style="padding-bottom: 1.5pt; text-align: justify">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 4pt">Ending balance</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: justify">$</td><td style="border-bottom: Black 4pt double; text-align: right">243,355</td><td style="padding-bottom: 4pt; text-align: justify"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: justify">$</td><td style="border-bottom: Black 4pt double; text-align: right">176,457</td><td style="padding-bottom: 4pt; text-align: justify"> </td></tr> </table> Business combination The purchase price of an acquired company is allocated between tangible and intangible assets acquired and liabilities assumed from the acquired business based on their estimated fair values. The results of operations of the acquired business are included in the Company’s operating results from the date of acquisition.  Revenue recognition On January 1, 2019, the Company adopted FASB ASC 606, Revenue from Contracts with Customers using the modified retrospective method for all contracts not completed as of the date of adoption. The core principle underlying the revenue recognition standard is that the Company will recognize revenue to represent the transfer of services to customers in an amount that reflects the consideration to which the Company expects to be entitled in such exchange. This will require the Company to identify contractual performance obligations and determine whether revenue should be recognized at a point in time or over time, based on when control of services transfers to a customer. Under the guidance of ASC 606, the Company is required to (a) identify the contract(s) with a customer, (b) identify the performance obligations in the contract, (c) determine the transaction price, (d) allocate the transaction price to the performance obligations in the contract and (e) recognize revenue when (or as) the Company satisfies its performance obligation. Revenues are recorded, net of sales related taxes and surcharges. The adoption of ASC 606 did not significantly change (i) the timing and pattern of revenue recognition for all of the Company’s revenue streams, and (ii) the presentation of revenue as gross versus net. Therefore, the adoption of ASC 606 did not have a significant impact on the Company’s financial position, results of operations, equity or cash flows as of the adoption date and for the years ended December 31, 2020 and 2019. The Company continues to derive its revenues from service contracts with its customers with revenues being recognized upon performance of services. Persuasive evidence of an arrangement is demonstrated via service contract and invoice; and the consideration to the customer is fixed upon acceptance of the sales contract. At times, the Company offers incentives and rebates to its customers directly and the Company accounts for these incentives payable to customers as a reduction of contract price. The Company’s revenues are recognized at a point in time or over time after the performance obligations are satisfied. In addition, the Company took the practical expedient to recognize the incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset that the entity otherwise would have recognized is one year or less. The Company’s commission expenses to its sales agents are expensed when incurred. The Company is an online provider of services related to the listing and sale of collectibles and artwork e-commerce services, which allows artists and art dealers and owners to access the art trading market with a wider range of artwork investors through the Company’s platforms. The Company currently facilitates trading by individual and institutional customers of stamps, coins, and all kinds of artwork and collectibles on the Company’s online platforms. In addition to collectibles and artwork, the Company has also expanded its platform to trade commodities principally teas, Yunan Ham and mitten crabs. The Company generates revenue from its services in connection with the trading of artwork and commodities on its platforms, primarily consisting of listing service fees, transaction fees, marketing services fees and other revenues collected from traders (the Company’s customers).  Starting in July 2019, the Company had signed cooperative agreements with third parties who are experts and possess new ideas and resources for collectibles/artwork and commodities business to co-develop certain niche markets (such as vintage coins and teas) to be traded on the Company’s online platforms. These parties are required to place a security deposit with the Company until termination of the cooperative agreements and required deposit amounts will be increased as the trading volume increases. Revenue generated from these niche markets will be shared between the Company and these parties based on pre-agreed rates and trading volume. The Company accounted for the portion of revenue that needs to be reimbursed to the third parties as a reduction of total contract revenue to be received from customers. $62,009 and $171,272 of gross revenue generated from these contracts had been recorded as a reduction of revenue and payables to these parties for the years ended December 31, 2020 and 2019, respectively. Listing service fees One-time nonrefundable listing service fees are collected from traders for listing their products on the platform. The Company’s only performance obligation is to provide the listing on the Company’s platform over the period requested. The Company recognizes the related revenue upon the completion of its performance obligations. The fees are determined by contracts with the customers as a fixed percentage of the listing price. Transaction fee revenue Transaction fee revenue is generally calculated based on the transaction value of collectibles, artwork, commodities and points per transaction. Transaction value is the dollar amount of the purchase or sale of the collectibles, artwork, commodities and points after they are listed on the Company’s platforms. The Company’s performance obligation is to facilitate the trading transactions. Transaction fee revenue is recognized and collected at the point-in-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. 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. The Company does 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 the Company charges a transaction fee from such points trading. The Company assessed if a material right existed when the Company initially issued the reward points and if the 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 reward points amounted to approximately $2.6 million and $0.3 million for the years ended December 31, 2020 and 2019, respectively. Predetermined transaction fees received in advance of the specified service period are recorded as deferred revenue. Marketing service fees Marketing service fees (including $0 and $68,082 from a related party for the years ended December 31, 2020 and 2019, receptively) are usually collected after the Company completes its services and includes the following type of services: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: top"> <td style="width: 0.25in"> </td> <td style="width: 0.25in">(1)</td> <td style="text-align: justify">For certain marketing service agreements, the Company promises to assist its customer in connection with their listing and trading of their collectible/artwork or commodities on the Company’s platforms, which mainly includes consultation and supporting services of the marketability for the collectible/artwork; assessing its market value and market acceptance for the collectible/artwork or commodities; and assisting in the application and legal protection required for the customer’s collectible/artwork or commodities to be approved for listing on the Company’s platforms. For marketing service contracts in which the related performance obligations can be completed within a short period of time, the Company recognizes the related revenue upon the completion of its performance obligations.</td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: top"> <td style="width: 0.25in"> </td> <td style="width: 0.25in">(2)</td> <td style="text-align: justify">Marketing service agreements also includes providing promotional services for customers’ items as where to place ads on well-known cultural and art exchange websites in China, to provide online and offline marketing services including cooperation with auction houses and participate in industry-related exhibitions and fairs.</td></tr> </table> The marketing service fees are charged based on the type of listing session that the customer applies for and whether the customer has listed and sold collectibles on other platforms before, and they are not tied to the type or value of the underlying collectible/artwork. Marketing service contracts and fees are recognized upon the completion of the performance obligation. Other revenues Other revenues (including $213,172 and $178,304 from related parties for the years ended December 31, 2020 and 2019, respectively) primarily includes service fees for IT technical support to customers and other revenues from agency recommendation fees. IT technical support fees are negotiated on a case-by-case basis and are recognized when the related services have been performed based on the specific terms of the contract. Agency recommendation fees are mainly training and consulting services provided to certain qualified traders/agents. Upon completion of the training and consultation, these qualified traders/agents may introduce the Company’s platforms and services to potential customers to list their collectibles and artwork with the Company for a fee or promote their own products on the Company’s platforms. The Company’s performance obligation is completed and revenue is recognized upon completion of training and consultation services. The Company disaggregated its revenue into the following four categories: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="vertical-align: bottom; white-space: nowrap; text-align: center"> </td><td style="vertical-align: bottom; padding-bottom: 1.5pt; white-space: nowrap; text-align: center"> </td> <td colspan="6" style="border-bottom: Black 1.5pt solid; vertical-align: bottom; text-align: center; white-space: nowrap">For the Years Ended December 31, </td><td style="vertical-align: bottom; padding-bottom: 1.5pt; white-space: nowrap; text-align: center"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 76%; text-align: justify">Listing service fees</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: justify">$</td><td style="width: 9%; text-align: right">8,405,211</td><td style="width: 1%; text-align: justify"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: justify">$</td><td style="width: 9%; text-align: right">1,501,645</td><td style="width: 1%; text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify">Transaction fees</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">7,075,283</td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">4,742,565</td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Marketing service fees*</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">1,370,164</td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">6,729,736</td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify; padding-bottom: 1.5pt">Other revenues**</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">588,144</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">475,489</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 4pt">Total</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: justify">$</td><td style="border-bottom: Black 4pt double; text-align: right">17,438,802</td><td style="padding-bottom: 4pt; text-align: justify"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: justify">$</td><td style="border-bottom: Black 4pt double; text-align: right">13,449,435</td><td style="padding-bottom: 4pt; text-align: justify"> </td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"> <tr> <td style="width: 24px">*</td> <td style="text-align: justify">Including $0 and $68,082 for the years ended December 31, 2020 and 2019, respectively, from a related party.</td></tr> <tr> <td>**</td> <td style="text-align: justify">Including $213,172 and $178,304 for the years ended December 31, 2020 and 2019, respectively, from related parties.</td></tr> </table> Cost of revenues Cost of revenues consist of compensation including social welfare and benefits for the Company’s employees, such as IT, risk management and customer services team, appraisal fees, online cloud service fees, storage fees, and depreciation and amortization of hardware and software for the Company’s trading platforms. Selling and marketing expenses: Selling and marketing expenses includes salary and benefits of our employees in the sales and marketing department and marketing and advertising expenses. Selling expenses also include incentive payments to third parties that refer new traders to utilize the Company’s e-commerce or trading platforms. Website advertising expenses which are included in selling and marketing expenses-related party amounted to $1,762,652 and $124,857 for the years ended December 31, 2020 and 2019, respectively. Value added taxes (“VAT”) Revenue represents the invoiced value of services, net of VAT. The VAT is based on the gross sales price and VAT rates range up to 6%, depending on the type of services provided. Entities that are VAT general taxpayers are allowed to offset qualified input VAT paid to suppliers against their output VAT liabilities. The net VAT balance between input VAT and output VAT is recorded in taxes payable or other receivables and prepaid expenses. All of the VAT returns filed by the Company’s subsidiaries in China, have been and remain subject to examination by the tax authorities for five years from the date of filing. Income taxes The Company accounts for income taxes in accordance with U.S. GAAP for income taxes. Under the asset and liability method as required by this accounting standard, deferred income tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the income tax basis and financial reporting basis of assets and liabilities. Provision for income taxes consists of taxes currently due plus deferred taxes. The charge for taxation is based on the results for the fiscal year as adjusted for items, which are non-assessable or disallowed. It is calculated using tax rates that have been enacted or substantively enacted by the balance sheet date. Deferred taxes are accounted for using the asset and liability method in respect of temporary differences arising from differences between the carrying amount of assets and liabilities in the consolidated financial statements and the corresponding tax basis used in the computation of assessable tax. Deferred tax liabilities are recognized for all future taxable temporary differences. Deferred tax assets are recognized to the extent that it is probable that taxable income will be available against which deductible temporary differences can be utilized. Deferred tax is calculated using tax rates that are expected to apply to the period when the asset is realized or the liability is settled. Deferred taxes are charged or credited in the income statement, except when it is related to items credited or charged directly to equity. Net deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the net deferred tax assets will not be realized. Current income taxes are provided for in accordance with the laws of the relevant taxing authorities. An uncertain tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that has a greater than 50% likelihood of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. Penalties and interest related to the underpayment of income taxes are classified as income tax expense in the period incurred. PRC tax returns filed in 2019 and 2018 are subject to examination by the applicable tax authorities. Commitments and Contingencies In the normal course of business, the Company is subject to contingencies, including legal proceedings and claims arising out of the business that relate to a wide range of matters, such as government investigations and tax matters. The Company recognizes a liability for such contingency if it determines it is probable that a loss has occurred and a reasonable estimate of the loss can be made. The Company may consider many factors in making these assessments including historical factors and the specific facts and circumstances of each matter. Earnings per share Basic earnings per share are computed by dividing income available to shareholders of the Company by the weighted average ordinary shares outstanding during the period. Diluted earnings per share takes into account the potential dilution that could occur if securities or other contracts to issue ordinary shares were exercised and converted into ordinary shares. As of December 31, 2020 and 2019, there were no dilutive shares. Statutory Reserves Pursuant to the laws applicable to PRC entities, they are required to make appropriations from after-tax profits to a non-distributable statutory surplus reserve fund. Subject to certain cumulative limits, the statutory surplus reserve fund requires annual appropriations of 10% of after-tax profits until the aggregated appropriations reach 50% of the registered capital (as determined under accounting principles generally accepted in the PRC (“PRC GAAP”) at each year-end). If the Company has accumulated losses from prior periods, the Company is able to use the current period net income after tax to offset against the accumulated loss. For the years ended December 31, 2020 and 2019, the Company appropriated $0 and $38,999 to the statutory reserve fund, respectively. The Company has met the required maximum contributions to the statutory reserves for both of its operating entities, Kashi Dongfang and Kashi Longrui. Employee benefits Full-time employees of the Company are entitled to staff welfare benefits including medical care, housing funds, pension benefits, unemployment insurance and other welfare, which are government mandated defined contribution plans. The Company is required to accrue for these benefits based on certain percentages of the employees’ respective salaries, subject to certain ceilings, in accordance with the relevant PRC regulations, and make cash contributions to the state-sponsored plans. The expenses for the plans were $61,305 and $88,707 for the years ended December 31, 2020 and 2019, respectively. Segment 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 Company’s CODM has been identified as the CEO, 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 only one operating segment and therefore one reportable segment as defined by ASC 280, which is facilitating e-commerce of artwork trading. All of the Company’s net revenues were generated in the PRC including Hong Kong. Reclassifications Certain prior year amounts have been reclassified to conform to the current period presentation mainly reclassifying gain from short-term investment, proceeds from sale of short-term investment and general and administrative – related parties. Recently issued accounting pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), to increase the transparency and comparability about leases among entities. The new guidance requires lessees to recognize a lease liability and a corresponding “right-of-use” leased asset for virtually all lease contracts. It also requires additional disclosures about leasing arrangements. ASU 2016-02 was to be effective for interim and annual periods beginning after December 15, 2018, and requires a modified retrospective approach for adoption assuming the Company will remain an emerging growth company at that date. In September 2017, the FASB issued ASU No. 2017-13, to clarify effective dates that public business entities and other entities were required to adopt ASC Topic 842 for annual reporting. The Company has not early adopted this update and it will become effective on January 1, 2021 after FASB delayed the effective date for non-public companies with ASU 2019-09. The Company adopted ASU 2016-02 on January 1, 2021. The adoption of this ASU will recognize additional operating labilities of approximately $34,000, with corresponding right of use (“ROU”) assets of the same amount based on the present value of the remaining minimum rental payments under current leasing standards for existing operating leases with a remaining term longer than 12 months. In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement” (“ASU 2018-13”). ASU 2018-13 removes, modifies and adds certain disclosure requirements in Topic 820 “Fair Value Measurement”. ASU 2018-13 eliminates certain disclosures related to transfers and the valuations process, modifies disclosures for investments that are valued based on net asset value, clarifies the measurement uncertainty disclosure, and requires additional disclosures for Level 3 fair value measurements. ASU 2018-13 is effective for the Company for annual and interim reporting periods beginning after December 15, 2019. The Company adopted this ASU on January 1, 2020 and the adoption has no significant impact to the Company’s consolidated financial statements as a whole. In May 2019, the FASB issued ASU 2019-05, which is an update to ASU Update No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which introduced the expected credit losses methodology for the measurement of credit losses on financial assets measured at amortized cost basis, replacing the previous incurred loss methodology. The amendments in Update 2016-13 added Topic 326, Financial Instruments—Credit Losses, and made several consequential amendments to the Codification. Update 2016-13 also modified the accounting for available-for-sale debt securities, which must be individually assessed for credit losses when the fair value is less than the amortized cost basis, in accordance with Subtopic 326-30, Financial Instruments— Credit Losses—Available-for-Sale Debt Securities. The amendments in this ASU address those stakeholders’ concerns by providing an option to irrevocably elect the fair value option for certain financial assets previously measured at amortized cost basis. For those entities, the targeted transition relief will increase comparability of financial statement information by providing an option to align measurement methodologies for similar financial assets. Furthermore, the targeted transition relief also may reduce the costs for some entities to comply with the amendments in Update 2016-13 while still providing financial statement users with decision-useful information. ASU 2019-05 is effective for the Company for annual and interim reporting periods beginning January 1, 2023 after FASB delayed the effective date for non-public companies with ASU 2019-09. The Company is currently evaluating the impact of this new standard on Company’s consolidated financial statements and related disclosures. In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes”. The amendments in ASU 2019-12 simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application of and simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. For public business entities, the amendments in ASU 2019-12 are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Early adoption of the amendments is permitted, including adoption in any interim period for (1) public business entities for periods for which financial statements have not yet been issued and (2) all other entities for periods for which financial statements have not yet been made available for issuance. An entity that elects to early adopt the amendments in an interim period should reflect any adjustments as of the beginning of the annual period that includes that interim period. Additionally, an entity that elects early adoption must adopt all the amendments in the same period. The Company adopted the new standard on January 1, 2021 and the adoption did not have a material impact on the Company’s consolidated financial statements and related disclosures. In October 2020, the FASB issued ASU 2020-08, “Codification Improvements to Subtopic 310-20, Receivables—Nonrefundable Fees and Other Costs”. The amendments in this Update represent changes to clarify the Codification. The amendments make the Codification easier to understand and easier to apply by eliminating inconsistencies and providing clarifications. ASU 2020-08 is effective for the Company for annual and interim reporting periods beginning after December 15, 2020. Early application is not permitted. All entities should apply the amendments in this Update on a prospective basis as of the beginning of the period of adoption for existing or newly purchased callable debt securities. These amendments do not change the effective dates for Update 2017-08. The Company does not expect the adoption of this standard to have a material impact on its consolidated financial statements. In October 2020, the FASB issued ASU 2020-10, “Codification Improvements”. The amendments in this Update represent changes to clarify the Codification or correct unintended application of guidance that are not expected to have a significant effect on current accounting practice or create a significant administrative cost to most entities. The amendments in this Update affect a wide variety of Topics in the Codification and apply to all reporting entities within the scope of the affected accounting guidance. ASU 2020-10 is effective for annual periods beginning after December 15, 2020 for public business entities. Early application is permitted. The amendments in this Update should be applied retrospectively. The Company does not expect the adoption of this standard to have a material impact on its consolidated financial statements. Except as mentioned above, the Company does not believe other recently issued but not yet effective accounting standards, if currently adopted, would have a material effect on the Company’s consolidated balance sheets, statements of income and comprehensive income and statements of cash flows.

Basis of presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and information pursuant to the rules and regulations of the Securities Exchange Commission (“SEC”).

Principles of consolidation The consolidated financial statements include the accounts of the Company, its subsidiaries, and their VIEs. All intercompany transactions and balances are eliminated upon consolidation.

Recapitalization On November 8, 2019, the Company effected a 2 for 1 forward share split of all issued and outstanding ordinary shares of the Company. In addition, all existing shareholders agreed to surrender to the Company as treasury shares, 12.5% of the then outstanding ordinary shares (3,100,000 ordinary shares) for no consideration. On May 28, 2020, all existing shareholders of the Company agreed to surrender an aggregate of 6,510,000 ordinary shares, or 30% of our then outstanding ordinary shares, at no consideration to be reserved as treasury shares of the Company. These transactions were treated as a recapitalization prior to the Company’s initial public offering. All share and per share amounts have been retroactively adjusted for this recapitalization for all periods presented. 0.125 3100000 6510000 0.30

Use of estimates and assumptions The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenues and expenses during the periods presented. Significant accounting estimates reflected in the Company’s consolidated financial statements include revenue recognition, allowance for doubtful accounts, the useful lives of property and equipment and intangible assets and impairment of long-lived assets. Actual results could differ from these estimates.

Foreign currency translation and transactions The reporting currency of the Company is the U.S. dollar. In the PRC, the Company conducts its businesses in the local currency, Renminbi (RMB), as its functional currency. Assets and liabilities are translated at the unified exchange rate as quoted by the People’s Bank of China at the end of the period. In Hong Kong, the Company conducts its business in the local currency, Hong Kong dollar (HKD), as its functional currency. Assets and liabilities are translated at the unified exchange rate as quoted by the Federal Reserve at the end of the period. The statements of income and cash flows are translated at the average translation rates during the reporting periods and the equity accounts are translated at historical rates. Translation adjustments resulting from this process are included in accumulated other comprehensive income (loss). Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the results of operations as incurred. Translation adjustments are included in accumulated other comprehensive income. The balance sheet amounts, with the exception of shareholder’s equity at December 31, 2020 and December 31, 2019 were translated at RMB 6.52 and RMB 6.98 to one U.S. dollar (USD), respectively. The average translation rates applied to the consolidated statements of income and cash flows for years ended December 31, 2020 and 2019 were RMB 6.90 to one USD. The balance sheet amounts, with the exception of shareholder’s equity at December 31, 2020 and 2019 were translated at HKD 7.75 and HKD 7.79 to one USD, respectively. The average translation rates applied to the consolidated statements of income and cash flows for years ended December 31, 2020 and 2019 were HKD 7.76 and HKD 7.84 to one USD, respectively. The shareholder’s equity accounts were translated at their historical rates. Amounts reported on the statement of cash flows will not necessarily agree with changes in the corresponding balances on the consolidated balance sheets.

Translation adjustments are included in accumulated other comprehensive income. The balance sheet amounts, with the exception of shareholder’s equity at December 31, 2020 and December 31, 2019 were translated at RMB 6.52 and RMB 6.98 to one U.S. dollar (USD), respectively. The average translation rates applied to the consolidated statements of income and cash flows for years ended December 31, 2020 and 2019 were RMB 6.90 to one USD. The balance sheet amounts, with the exception of shareholder’s equity at December 31, 2020 and 2019 were translated at HKD 7.75 and HKD 7.79 to one USD, respectively. The average translation rates applied to the consolidated statements of income and cash flows for years ended December 31, 2020 and 2019 were HKD 7.76 and HKD 7.84 to one USD, respectively. The shareholder’s equity accounts were translated at their historical rates. Amounts reported on the statement of cash flows will not necessarily agree with changes in the corresponding balances on the consolidated balance sheets.

Fair value measurement The accounting standards regarding fair value of financial instruments and related fair value measurements defines financial instruments and requires disclosure of the fair value of financial instruments held by the Company. The accounting standards define fair value, establish a three-level valuation hierarchy for disclosures of fair value measurements and enhance disclosure requirements for fair value measures. The three levels are defined as follows: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr> <td style="width: 0.25in; text-align: justify"> </td> <td style="vertical-align: top; width: 0.25in">● </td> <td style="text-align: justify">Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.</td></tr> <tr> <td style="text-align: justify"> </td> <td style="vertical-align: top"> </td> <td style="text-align: justify"> </td></tr> <tr> <td style="text-align: justify"> </td> <td style="vertical-align: top">● </td> <td style="text-align: justify">Level 2 inputs to the valuation methodology include quoted prices, other than those included in Level 1, for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments.</td></tr> <tr> <td style="text-align: justify"> </td> <td style="vertical-align: top"> </td> <td style="text-align: justify"> </td></tr> <tr> <td style="text-align: justify"> </td> <td style="vertical-align: top">● </td> <td style="text-align: justify">Level 3 inputs to the valuation methodology are unobservable and significant to the fair value.</td></tr> </table> The carrying amounts included in current assets and current liabilities in the consolidated balance sheets approximate their fair values because of the short-term nature of such instruments. Fair value disclosure: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2"> </td><td style="padding-bottom: 1.5pt"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="10" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2020 Fair Value</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Cost</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Level 1</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Level 2</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Level 3</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 52%; text-align: justify">Short-term investment</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: justify">$</td><td style="width: 9%; text-align: right">1,056,286</td><td style="width: 1%; text-align: justify"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: justify">$</td><td style="width: 9%; text-align: right">-</td><td style="width: 1%; text-align: justify"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: justify">$</td><td style="width: 9%; text-align: right">1,056,286</td><td style="width: 1%; text-align: justify"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: justify">$</td><td style="width: 9%; text-align: right">-</td><td style="width: 1%; text-align: justify"> </td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2"> </td><td style="padding-bottom: 1.5pt"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="10" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2019 Fair Value</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Cost</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Level 1</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Level 2</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Level 3</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 52%; text-align: justify">Short-term investment</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: justify">$</td><td style="width: 9%; text-align: right">1,749,092</td><td style="width: 1%; text-align: justify"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: justify">$</td><td style="width: 9%; text-align: right">-</td><td style="width: 1%; text-align: justify"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: justify">$</td><td style="width: 9%; text-align: right">1,749,092</td><td style="width: 1%; text-align: justify"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: justify">$</td><td style="width: 9%; text-align: right">-</td><td style="width: 1%; text-align: justify"> </td></tr> </table> The Company values its short-term investment using alternative pricing sources and market observable inputs, and accordingly the Company classifies the valuation techniques that use these inputs as Level 2. This investment has original maturities of less than 1 year and the carrying value approximates its fair value.

P1Y

Cash and cash equivalents Cash and cash equivalents consist of cash in bank and money market funds which are unrestricted as to immediate withdrawal and use. Cash and cash equivalents also consist of funds which are held in our trading platform trust account entrusted with Nanjing Jinwang Art Purchase E-commerce Co., Ltd., our related party which are unrestricted as to immediate withdrawal and use. Cash and cash equivalents consist of the following:  <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="vertical-align: bottom; text-align: center; white-space: nowrap"> </td><td style="vertical-align: bottom; font-weight: bold; padding-bottom: 1.5pt; white-space: nowrap; text-align: center"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; vertical-align: bottom; font-weight: bold; text-align: center; white-space: nowrap">December 31, 2020</td><td style="vertical-align: bottom; padding-bottom: 1.5pt; font-weight: bold; white-space: nowrap; text-align: center"> </td><td style="vertical-align: bottom; font-weight: bold; padding-bottom: 1.5pt; white-space: nowrap; text-align: center"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; vertical-align: bottom; font-weight: bold; text-align: center; white-space: nowrap">December 31, 2019</td><td style="vertical-align: bottom; padding-bottom: 1.5pt; font-weight: bold; white-space: nowrap; text-align: center"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 76%; text-align: justify">Cash in bank</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: justify">$</td><td style="width: 9%; text-align: right">18,230,118</td><td style="width: 1%; text-align: justify"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: justify">$</td><td style="width: 9%; text-align: right">911,770</td><td style="width: 1%; text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify">Cash held in trading platform trust account</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">2,727,082</td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">1,130,383</td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1.5pt">Money market funds</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">3,078,974</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">7,142,518</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify; padding-bottom: 4pt">Total cash and cash equivalents</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: justify">$</td><td style="border-bottom: Black 4pt double; text-align: right">24,036,174</td><td style="padding-bottom: 4pt; text-align: justify"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: justify">$</td><td style="border-bottom: Black 4pt double; text-align: right">9,184,671</td><td style="padding-bottom: 4pt; text-align: justify"> </td></tr> </table>

Short-term investment The short-term investment represents an investment in a bank-issued wealth management product with underlying investments in cash, bonds and equity funds. The investment product is issued by Ping An Bank. The investment has a maturity of less than 1 year and its carrying value approximates its fair value. The gain from sale of this investment is recognized in the statements of income and comprehensive income. Gain from investment for the years ended December 31, 2020 and 2019 amounted to $93,007 and $29,008, respectively. P1Y 93007 29008

Accounts receivable, net Accounts receivable represents amounts due from the Company’s customers. An allowance for doubtful accounts may be established and recorded based on management’s assessment of potential losses based on the credit history and relationships with the customers. Management reviews its receivables on a regular basis to determine if the allowance for doubtful accounts is adequate and adjusts the allowance when necessary. Delinquent account balances are written-off against the allowance for doubtful accounts after management has determined that the likelihood of collection is not probable. The Company also considered the economic implications of COVID-19 on its estimates and provided an allowance for doubtful accounts of approximately $117,000 and then wrote off same amount for the year ended December 31, 2020.

117000 Other receivables and prepaid expenses Other receivables that are short term in nature includes employee travel advances in the normal course of business and other miscellaneous items. An allowance for doubtful accounts may be established and recorded based on management’s assessment of the likelihood of realization or collection. Management reviews these items on a regular basis to determine if the allowance for doubtful accounts is adequate, and adjusts the allowance when necessary. Delinquent account balances are written-off against the allowance for doubtful accounts after management has determined that the likelihood of realization or collection is not probable. No allowance was required as of December 31, 2020 and 2019. Prepaid expenses include advance payments made to vendors for certain prepaid services such as system service fees, prepaid rent for our office and prepaid taxes. Escrow In connection with the Company’s initial public offering in December 2020, $600,000 of the net proceeds was deposited into an escrow account for underwriters for 24 months from the closing of the offering to cover any potential claims related to the offering. If no claims are made, the funds will be released by the underwriters to the Company in December 2022.

600000

Deposit The Company entered into a memorandum of understanding (“MOU”) to acquire office buildings and the related land use rights in November 2020 with a third-party seller. The close of the transaction was dependent on the seller obtaining a permit regarding the proposed use of the site. Subsequent to December 31, 2020, the Company terminated the MOU as the seller was unable to obtain the required permit and the Company received a full refund of the deposit (see Note 6).

Property and equipment, net Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the assets with no residual value. The estimated useful lives are as follows: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom; "> <td style="text-align: justify"> </td> <td> </td> <td style="border-bottom: black 1.5pt solid; text-align: center">Useful Life</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 73%; text-align: justify">Office equipment and furnishings</td> <td style="width: 1%"> </td> <td style="width: 25%; text-align: center">1 - 5 years</td> <td style="width: 1%"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify">Electronic equipment</td> <td> </td> <td style="text-align: center">2 - 5 years</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Server room equipment</td> <td> </td> <td style="text-align: center">5 years</td> <td> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify">Vehicles</td> <td> </td> <td style="text-align: center">5 years</td> <td> </td></tr> <tr style="background-color: rgb(204,238,255)"> <td style="vertical-align: top">Leasehold improvements</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom; text-align: center">lesser of remaining lease term or expected useful life</td> <td style="vertical-align: bottom"> </td></tr> </table> The cost and related accumulated depreciation and amortization of assets sold or otherwise retired are eliminated from the accounts and any gain or loss is included in the consolidated statements of income and other comprehensive income. Expenditures for maintenance and repairs are charged to expense as incurred, while additions, renewals and betterments, which are expected to extend the useful life of an asset, are capitalized. The Company also re-evaluates the periods of depreciation and amortization to determine whether subsequent events and circumstances warrant revised estimates of useful lives.

Intangible assets, net Intangible assets, net, are stated at cost, less accumulated amortization. Amortization expense is recognized on the straight-line basis over the estimated useful lives of the assets as follows: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr> <td style="vertical-align: bottom; border-bottom: black 1.5pt solid; width: 81%; text-align: left">Classification</td> <td style="width: 1%; text-align: justify"> </td> <td style="border-bottom: black 1.5pt solid; width: 17%; text-align: center">Estimated Useful Life</td> <td style="width: 1%; text-align: justify"> </td></tr> <tr style="background-color: rgb(204,238,255)"> <td style="text-align: justify">Artwork trading platform</td> <td style="text-align: justify"> </td> <td style="text-align: center">5 years</td> <td style="text-align: justify"> </td></tr> <tr> <td style="text-align: justify">Software</td> <td style="text-align: justify"> </td> <td style="text-align: center">5 years</td> <td style="text-align: justify"> </td></tr> </table>

Impairment of long-lived assets Long-lived assets, including property and equipment with finite lives are reviewed for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate that the carrying value of an asset may not be recoverable. The Company assesses the recoverability of the asset based on the undiscounted future cash flows the asset is expected to generate and recognize an impairment loss when estimated discounted future cash flows expected to result from the use of the asset plus net proceeds expected from disposition of the asset, if any, are less than the carrying value of the asset. If an impairment is identified, the Company reduces the carrying amount of the asset to its estimated fair value based on a discounted cash flow approach or, when available and appropriate, to comparable market values. As of December 31, 2020 and 2019, no impairment of long-lived assets was recognized.

Investments Entities in which the Company has the ability to exercise significant influence, but does not have a controlling interest, are accounted for using the equity method. Significant influence is generally considered to exist when the Company has voting shares representing 20% to 50%, and other factors, such as representation on the board of directors, voting rights and the impact of commercial arrangements, are considered in determining whether the equity method of accounting is appropriate. Under this method of accounting, the Company records its proportionate share of the net earnings or losses of equity method investees and a corresponding increase or decrease to the investment balances. Dividends received from the equity method investments are recorded as reductions in the cost of such investments. The Company generally considers an ownership interest of 20% or higher to represent significant influence. The Company accounts for the investments in entities over which it has neither control nor significant influence, and no readily determinable fair value is available, using the investment cost minus any impairment, if necessary. Investments are evaluated for impairment when facts or circumstances indicate that the fair value of the long-term investment is less than its carrying value. An impairment loss is recognized when a decline in fair value is determined to be other-than-temporary. The Company reviews several factors to determine whether a loss is other-than-temporary. These factors include, but are not limited to, the: (i) nature of the investment; (ii) cause and duration of the impairment; (iii) extent to which fair value is less than cost; (iv) financial condition and near-term prospects of the investment; and (v) ability to hold the security for a period of time sufficient to allow for any anticipated recovery in fair value. No events have occurred that indicated another-than-temporary differences for the years ended December 31, 2020 and 2019.

0.20 0.50

0.20

Deferred revenue Payments received from customers before all of the relevant criteria for revenue recognition are recorded as deferred revenue. <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="white-space: nowrap; text-align: center"> </td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="white-space: nowrap; border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2020</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold"> </td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="white-space: nowrap; border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2019</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 76%; text-align: justify">Beginning balance</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: justify">$</td><td style="width: 9%; text-align: right">176,457</td><td style="width: 1%; text-align: justify"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: justify">$</td><td style="width: 9%; text-align: right">823,290</td><td style="width: 1%; text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify">Customer advances</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">18,134,308</td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">10,035,537</td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Recognized as revenues</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">(18,079,616</td><td style="text-align: justify">)</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">(10,670,840</td><td style="text-align: justify">)</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify; padding-bottom: 1.5pt">Effect of exchange rate</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">12,206</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(11,530</td><td style="padding-bottom: 1.5pt; text-align: justify">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 4pt">Ending balance</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: justify">$</td><td style="border-bottom: Black 4pt double; text-align: right">243,355</td><td style="padding-bottom: 4pt; text-align: justify"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: justify">$</td><td style="border-bottom: Black 4pt double; text-align: right">176,457</td><td style="padding-bottom: 4pt; text-align: justify"> </td></tr> </table>

Business combination The purchase price of an acquired company is allocated between tangible and intangible assets acquired and liabilities assumed from the acquired business based on their estimated fair values. The results of operations of the acquired business are included in the Company’s operating results from the date of acquisition.

Revenue recognition On January 1, 2019, the Company adopted FASB ASC 606, Revenue from Contracts with Customers using the modified retrospective method for all contracts not completed as of the date of adoption. The core principle underlying the revenue recognition standard is that the Company will recognize revenue to represent the transfer of services to customers in an amount that reflects the consideration to which the Company expects to be entitled in such exchange. This will require the Company to identify contractual performance obligations and determine whether revenue should be recognized at a point in time or over time, based on when control of services transfers to a customer. Under the guidance of ASC 606, the Company is required to (a) identify the contract(s) with a customer, (b) identify the performance obligations in the contract, (c) determine the transaction price, (d) allocate the transaction price to the performance obligations in the contract and (e) recognize revenue when (or as) the Company satisfies its performance obligation. Revenues are recorded, net of sales related taxes and surcharges. The adoption of ASC 606 did not significantly change (i) the timing and pattern of revenue recognition for all of the Company’s revenue streams, and (ii) the presentation of revenue as gross versus net. Therefore, the adoption of ASC 606 did not have a significant impact on the Company’s financial position, results of operations, equity or cash flows as of the adoption date and for the years ended December 31, 2020 and 2019. The Company continues to derive its revenues from service contracts with its customers with revenues being recognized upon performance of services. Persuasive evidence of an arrangement is demonstrated via service contract and invoice; and the consideration to the customer is fixed upon acceptance of the sales contract. At times, the Company offers incentives and rebates to its customers directly and the Company accounts for these incentives payable to customers as a reduction of contract price. The Company’s revenues are recognized at a point in time or over time after the performance obligations are satisfied. In addition, the Company took the practical expedient to recognize the incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset that the entity otherwise would have recognized is one year or less. The Company’s commission expenses to its sales agents are expensed when incurred. The Company is an online provider of services related to the listing and sale of collectibles and artwork e-commerce services, which allows artists and art dealers and owners to access the art trading market with a wider range of artwork investors through the Company’s platforms. The Company currently facilitates trading by individual and institutional customers of stamps, coins, and all kinds of artwork and collectibles on the Company’s online platforms. In addition to collectibles and artwork, the Company has also expanded its platform to trade commodities principally teas, Yunan Ham and mitten crabs. The Company generates revenue from its services in connection with the trading of artwork and commodities on its platforms, primarily consisting of listing service fees, transaction fees, marketing services fees and other revenues collected from traders (the Company’s customers).  Starting in July 2019, the Company had signed cooperative agreements with third parties who are experts and possess new ideas and resources for collectibles/artwork and commodities business to co-develop certain niche markets (such as vintage coins and teas) to be traded on the Company’s online platforms. These parties are required to place a security deposit with the Company until termination of the cooperative agreements and required deposit amounts will be increased as the trading volume increases. Revenue generated from these niche markets will be shared between the Company and these parties based on pre-agreed rates and trading volume. The Company accounted for the portion of revenue that needs to be reimbursed to the third parties as a reduction of total contract revenue to be received from customers. $62,009 and $171,272 of gross revenue generated from these contracts had been recorded as a reduction of revenue and payables to these parties for the years ended December 31, 2020 and 2019, respectively. Listing service fees One-time nonrefundable listing service fees are collected from traders for listing their products on the platform. The Company’s only performance obligation is to provide the listing on the Company’s platform over the period requested. The Company recognizes the related revenue upon the completion of its performance obligations. The fees are determined by contracts with the customers as a fixed percentage of the listing price. Transaction fee revenue Transaction fee revenue is generally calculated based on the transaction value of collectibles, artwork, commodities and points per transaction. Transaction value is the dollar amount of the purchase or sale of the collectibles, artwork, commodities and points after they are listed on the Company’s platforms. The Company’s performance obligation is to facilitate the trading transactions. Transaction fee revenue is recognized and collected at the point-in-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. 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. The Company does 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 the Company charges a transaction fee from such points trading. The Company assessed if a material right existed when the Company initially issued the reward points and if the 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 reward points amounted to approximately $2.6 million and $0.3 million for the years ended December 31, 2020 and 2019, respectively. Predetermined transaction fees received in advance of the specified service period are recorded as deferred revenue. Marketing service fees Marketing service fees (including $0 and $68,082 from a related party for the years ended December 31, 2020 and 2019, receptively) are usually collected after the Company completes its services and includes the following type of services: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: top"> <td style="width: 0.25in"> </td> <td style="width: 0.25in">(1)</td> <td style="text-align: justify">For certain marketing service agreements, the Company promises to assist its customer in connection with their listing and trading of their collectible/artwork or commodities on the Company’s platforms, which mainly includes consultation and supporting services of the marketability for the collectible/artwork; assessing its market value and market acceptance for the collectible/artwork or commodities; and assisting in the application and legal protection required for the customer’s collectible/artwork or commodities to be approved for listing on the Company’s platforms. For marketing service contracts in which the related performance obligations can be completed within a short period of time, the Company recognizes the related revenue upon the completion of its performance obligations.</td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: top"> <td style="width: 0.25in"> </td> <td style="width: 0.25in">(2)</td> <td style="text-align: justify">Marketing service agreements also includes providing promotional services for customers’ items as where to place ads on well-known cultural and art exchange websites in China, to provide online and offline marketing services including cooperation with auction houses and participate in industry-related exhibitions and fairs.</td></tr> </table> The marketing service fees are charged based on the type of listing session that the customer applies for and whether the customer has listed and sold collectibles on other platforms before, and they are not tied to the type or value of the underlying collectible/artwork. Marketing service contracts and fees are recognized upon the completion of the performance obligation. Other revenues Other revenues (including $213,172 and $178,304 from related parties for the years ended December 31, 2020 and 2019, respectively) primarily includes service fees for IT technical support to customers and other revenues from agency recommendation fees. IT technical support fees are negotiated on a case-by-case basis and are recognized when the related services have been performed based on the specific terms of the contract. Agency recommendation fees are mainly training and consulting services provided to certain qualified traders/agents. Upon completion of the training and consultation, these qualified traders/agents may introduce the Company’s platforms and services to potential customers to list their collectibles and artwork with the Company for a fee or promote their own products on the Company’s platforms. The Company’s performance obligation is completed and revenue is recognized upon completion of training and consultation services. The Company disaggregated its revenue into the following four categories: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="vertical-align: bottom; white-space: nowrap; text-align: center"> </td><td style="vertical-align: bottom; padding-bottom: 1.5pt; white-space: nowrap; text-align: center"> </td> <td colspan="6" style="border-bottom: Black 1.5pt solid; vertical-align: bottom; text-align: center; white-space: nowrap">For the Years Ended December 31, </td><td style="vertical-align: bottom; padding-bottom: 1.5pt; white-space: nowrap; text-align: center"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 76%; text-align: justify">Listing service fees</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: justify">$</td><td style="width: 9%; text-align: right">8,405,211</td><td style="width: 1%; text-align: justify"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: justify">$</td><td style="width: 9%; text-align: right">1,501,645</td><td style="width: 1%; text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify">Transaction fees</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">7,075,283</td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">4,742,565</td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Marketing service fees*</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">1,370,164</td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">6,729,736</td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify; padding-bottom: 1.5pt">Other revenues**</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">588,144</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">475,489</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 4pt">Total</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: justify">$</td><td style="border-bottom: Black 4pt double; text-align: right">17,438,802</td><td style="padding-bottom: 4pt; text-align: justify"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: justify">$</td><td style="border-bottom: Black 4pt double; text-align: right">13,449,435</td><td style="padding-bottom: 4pt; text-align: justify"> </td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"> <tr> <td style="width: 24px">*</td> <td style="text-align: justify">Including $0 and $68,082 for the years ended December 31, 2020 and 2019, respectively, from a related party.</td></tr> <tr> <td>**</td> <td style="text-align: justify">Including $213,172 and $178,304 for the years ended December 31, 2020 and 2019, respectively, from related parties.</td></tr></table>

62009 171272 2600000 300000 0 68082 213172 178304 Cost of revenues Cost of revenues consist of compensation including social welfare and benefits for the Company’s employees, such as IT, risk management and customer services team, appraisal fees, online cloud service fees, storage fees, and depreciation and amortization of hardware and software for the Company’s trading platforms.

Selling and marketing expenses: Selling and marketing expenses includes salary and benefits of our employees in the sales and marketing department and marketing and advertising expenses. Selling expenses also include incentive payments to third parties that refer new traders to utilize the Company’s e-commerce or trading platforms. Website advertising expenses which are included in selling and marketing expenses-related party amounted to $1,762,652 and $124,857 for the years ended December 31, 2020 and 2019, respectively.

1762652 124857 Value added taxes (“VAT”) Revenue represents the invoiced value of services, net of VAT. The VAT is based on the gross sales price and VAT rates range up to 6%, depending on the type of services provided. Entities that are VAT general taxpayers are allowed to offset qualified input VAT paid to suppliers against their output VAT liabilities. The net VAT balance between input VAT and output VAT is recorded in taxes payable or other receivables and prepaid expenses. All of the VAT returns filed by the Company’s subsidiaries in China, have been and remain subject to examination by the tax authorities for five years from the date of filing. 0.06

Income taxes The Company accounts for income taxes in accordance with U.S. GAAP for income taxes. Under the asset and liability method as required by this accounting standard, deferred income tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the income tax basis and financial reporting basis of assets and liabilities. Provision for income taxes consists of taxes currently due plus deferred taxes. The charge for taxation is based on the results for the fiscal year as adjusted for items, which are non-assessable or disallowed. It is calculated using tax rates that have been enacted or substantively enacted by the balance sheet date. Deferred taxes are accounted for using the asset and liability method in respect of temporary differences arising from differences between the carrying amount of assets and liabilities in the consolidated financial statements and the corresponding tax basis used in the computation of assessable tax. Deferred tax liabilities are recognized for all future taxable temporary differences. Deferred tax assets are recognized to the extent that it is probable that taxable income will be available against which deductible temporary differences can be utilized. Deferred tax is calculated using tax rates that are expected to apply to the period when the asset is realized or the liability is settled. Deferred taxes are charged or credited in the income statement, except when it is related to items credited or charged directly to equity. Net deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the net deferred tax assets will not be realized. Current income taxes are provided for in accordance with the laws of the relevant taxing authorities. An uncertain tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that has a greater than 50% likelihood of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. Penalties and interest related to the underpayment of income taxes are classified as income tax expense in the period incurred. PRC tax returns filed in 2019 and 2018 are subject to examination by the applicable tax authorities.

0.50

Commitments and Contingencies In the normal course of business, the Company is subject to contingencies, including legal proceedings and claims arising out of the business that relate to a wide range of matters, such as government investigations and tax matters. The Company recognizes a liability for such contingency if it determines it is probable that a loss has occurred and a reasonable estimate of the loss can be made. The Company may consider many factors in making these assessments including historical factors and the specific facts and circumstances of each matter.

Earnings per share Basic earnings per share are computed by dividing income available to shareholders of the Company by the weighted average ordinary shares outstanding during the period. Diluted earnings per share takes into account the potential dilution that could occur if securities or other contracts to issue ordinary shares were exercised and converted into ordinary shares. As of December 31, 2020 and 2019, there were no dilutive shares.

Statutory Reserves Pursuant to the laws applicable to PRC entities, they are required to make appropriations from after-tax profits to a non-distributable statutory surplus reserve fund. Subject to certain cumulative limits, the statutory surplus reserve fund requires annual appropriations of 10% of after-tax profits until the aggregated appropriations reach 50% of the registered capital (as determined under accounting principles generally accepted in the PRC (“PRC GAAP”) at each year-end). If the Company has accumulated losses from prior periods, the Company is able to use the current period net income after tax to offset against the accumulated loss. For the years ended December 31, 2020 and 2019, the Company appropriated $0 and $38,999 to the statutory reserve fund, respectively. The Company has met the required maximum contributions to the statutory reserves for both of its operating entities, Kashi Dongfang and Kashi Longrui. 0.10 0.50 0 38999 Employee benefits Full-time employees of the Company are entitled to staff welfare benefits including medical care, housing funds, pension benefits, unemployment insurance and other welfare, which are government mandated defined contribution plans. The Company is required to accrue for these benefits based on certain percentages of the employees’ respective salaries, subject to certain ceilings, in accordance with the relevant PRC regulations, and make cash contributions to the state-sponsored plans. The expenses for the plans were $61,305 and $88,707 for the years ended December 31, 2020 and 2019, respectively.

61305

88707

Segment 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 Company’s CODM has been identified as the CEO, 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 only one operating segment and therefore one reportable segment as defined by ASC 280, which is facilitating e-commerce of artwork trading. All of the Company’s net revenues were generated in the PRC including Hong Kong.

Reclassifications Certain prior year amounts have been reclassified to conform to the current period presentation mainly reclassifying gain from short-term investment, proceeds from sale of short-term investment and general and administrative – related parties.

Recently issued accounting pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), to increase the transparency and comparability about leases among entities. The new guidance requires lessees to recognize a lease liability and a corresponding “right-of-use” leased asset for virtually all lease contracts. It also requires additional disclosures about leasing arrangements. ASU 2016-02 was to be effective for interim and annual periods beginning after December 15, 2018, and requires a modified retrospective approach for adoption assuming the Company will remain an emerging growth company at that date. In September 2017, the FASB issued ASU No. 2017-13, to clarify effective dates that public business entities and other entities were required to adopt ASC Topic 842 for annual reporting. The Company has not early adopted this update and it will become effective on January 1, 2021 after FASB delayed the effective date for non-public companies with ASU 2019-09. The Company adopted ASU 2016-02 on January 1, 2021. The adoption of this ASU will recognize additional operating labilities of approximately $34,000, with corresponding right of use (“ROU”) assets of the same amount based on the present value of the remaining minimum rental payments under current leasing standards for existing operating leases with a remaining term longer than 12 months. In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement” (“ASU 2018-13”). ASU 2018-13 removes, modifies and adds certain disclosure requirements in Topic 820 “Fair Value Measurement”. ASU 2018-13 eliminates certain disclosures related to transfers and the valuations process, modifies disclosures for investments that are valued based on net asset value, clarifies the measurement uncertainty disclosure, and requires additional disclosures for Level 3 fair value measurements. ASU 2018-13 is effective for the Company for annual and interim reporting periods beginning after December 15, 2019. The Company adopted this ASU on January 1, 2020 and the adoption has no significant impact to the Company’s consolidated financial statements as a whole. In May 2019, the FASB issued ASU 2019-05, which is an update to ASU Update No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which introduced the expected credit losses methodology for the measurement of credit losses on financial assets measured at amortized cost basis, replacing the previous incurred loss methodology. The amendments in Update 2016-13 added Topic 326, Financial Instruments—Credit Losses, and made several consequential amendments to the Codification. Update 2016-13 also modified the accounting for available-for-sale debt securities, which must be individually assessed for credit losses when the fair value is less than the amortized cost basis, in accordance with Subtopic 326-30, Financial Instruments— Credit Losses—Available-for-Sale Debt Securities. The amendments in this ASU address those stakeholders’ concerns by providing an option to irrevocably elect the fair value option for certain financial assets previously measured at amortized cost basis. For those entities, the targeted transition relief will increase comparability of financial statement information by providing an option to align measurement methodologies for similar financial assets. Furthermore, the targeted transition relief also may reduce the costs for some entities to comply with the amendments in Update 2016-13 while still providing financial statement users with decision-useful information. ASU 2019-05 is effective for the Company for annual and interim reporting periods beginning January 1, 2023 after FASB delayed the effective date for non-public companies with ASU 2019-09. The Company is currently evaluating the impact of this new standard on Company’s consolidated financial statements and related disclosures. In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes”. The amendments in ASU 2019-12 simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application of and simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. For public business entities, the amendments in ASU 2019-12 are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Early adoption of the amendments is permitted, including adoption in any interim period for (1) public business entities for periods for which financial statements have not yet been issued and (2) all other entities for periods for which financial statements have not yet been made available for issuance. An entity that elects to early adopt the amendments in an interim period should reflect any adjustments as of the beginning of the annual period that includes that interim period. Additionally, an entity that elects early adoption must adopt all the amendments in the same period. The Company adopted the new standard on January 1, 2021 and the adoption did not have a material impact on the Company’s consolidated financial statements and related disclosures. In October 2020, the FASB issued ASU 2020-08, “Codification Improvements to Subtopic 310-20, Receivables—Nonrefundable Fees and Other Costs”. The amendments in this Update represent changes to clarify the Codification. The amendments make the Codification easier to understand and easier to apply by eliminating inconsistencies and providing clarifications. ASU 2020-08 is effective for the Company for annual and interim reporting periods beginning after December 15, 2020. Early application is not permitted. All entities should apply the amendments in this Update on a prospective basis as of the beginning of the period of adoption for existing or newly purchased callable debt securities. These amendments do not change the effective dates for Update 2017-08. The Company does not expect the adoption of this standard to have a material impact on its consolidated financial statements. In October 2020, the FASB issued ASU 2020-10, “Codification Improvements”. The amendments in this Update represent changes to clarify the Codification or correct unintended application of guidance that are not expected to have a significant effect on current accounting practice or create a significant administrative cost to most entities. The amendments in this Update affect a wide variety of Topics in the Codification and apply to all reporting entities within the scope of the affected accounting guidance. ASU 2020-10 is effective for annual periods beginning after December 15, 2020 for public business entities. Early application is permitted. The amendments in this Update should be applied retrospectively. The Company does not expect the adoption of this standard to have a material impact on its consolidated financial statements. Except as mentioned above, the Company does not believe other recently issued but not yet effective accounting standards, if currently adopted, would have a material effect on the Company’s consolidated balance sheets, statements of income and comprehensive income and statements of cash flows.

34000

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2"> </td><td style="padding-bottom: 1.5pt"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="10" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2020 Fair Value</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Cost</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Level 1</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Level 2</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Level 3</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 52%; text-align: justify">Short-term investment</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: justify">$</td><td style="width: 9%; text-align: right">1,056,286</td><td style="width: 1%; text-align: justify"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: justify">$</td><td style="width: 9%; text-align: right">-</td><td style="width: 1%; text-align: justify"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: justify">$</td><td style="width: 9%; text-align: right">1,056,286</td><td style="width: 1%; text-align: justify"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: justify">$</td><td style="width: 9%; text-align: right">-</td><td style="width: 1%; text-align: justify"> </td></tr> </table><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2"> </td><td style="padding-bottom: 1.5pt"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="10" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2019 Fair Value</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Cost</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Level 1</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Level 2</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Level 3</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 52%; text-align: justify">Short-term investment</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: justify">$</td><td style="width: 9%; text-align: right">1,749,092</td><td style="width: 1%; text-align: justify"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: justify">$</td><td style="width: 9%; text-align: right">-</td><td style="width: 1%; text-align: justify"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: justify">$</td><td style="width: 9%; text-align: right">1,749,092</td><td style="width: 1%; text-align: justify"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: justify">$</td><td style="width: 9%; text-align: right">-</td><td style="width: 1%; text-align: justify"> </td></tr> </table>

1056286

1749092

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="vertical-align: bottom; text-align: center; white-space: nowrap"> </td><td style="vertical-align: bottom; font-weight: bold; padding-bottom: 1.5pt; white-space: nowrap; text-align: center"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; vertical-align: bottom; font-weight: bold; text-align: center; white-space: nowrap">December 31, 2020</td><td style="vertical-align: bottom; padding-bottom: 1.5pt; font-weight: bold; white-space: nowrap; text-align: center"> </td><td style="vertical-align: bottom; font-weight: bold; padding-bottom: 1.5pt; white-space: nowrap; text-align: center"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; vertical-align: bottom; font-weight: bold; text-align: center; white-space: nowrap">December 31, 2019</td><td style="vertical-align: bottom; padding-bottom: 1.5pt; font-weight: bold; white-space: nowrap; text-align: center"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 76%; text-align: justify">Cash in bank</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: justify">$</td><td style="width: 9%; text-align: right">18,230,118</td><td style="width: 1%; text-align: justify"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: justify">$</td><td style="width: 9%; text-align: right">911,770</td><td style="width: 1%; text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify">Cash held in trading platform trust account</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">2,727,082</td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">1,130,383</td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1.5pt">Money market funds</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">3,078,974</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">7,142,518</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify; padding-bottom: 4pt">Total cash and cash equivalents</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: justify">$</td><td style="border-bottom: Black 4pt double; text-align: right">24,036,174</td><td style="padding-bottom: 4pt; text-align: justify"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: justify">$</td><td style="border-bottom: Black 4pt double; text-align: right">9,184,671</td><td style="padding-bottom: 4pt; text-align: justify"> </td></tr> </table>

18230118 911770 2727082 1130383 3078974 7142518

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom; "> <td style="text-align: justify"> </td> <td> </td> <td style="border-bottom: black 1.5pt solid; text-align: center">Useful Life</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 73%; text-align: justify">Office equipment and furnishings</td> <td style="width: 1%"> </td> <td style="width: 25%; text-align: center">1 - 5 years</td> <td style="width: 1%"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify">Electronic equipment</td> <td> </td> <td style="text-align: center">2 - 5 years</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Server room equipment</td> <td> </td> <td style="text-align: center">5 years</td> <td> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify">Vehicles</td> <td> </td> <td style="text-align: center">5 years</td> <td> </td></tr> <tr style="background-color: rgb(204,238,255)"> <td style="vertical-align: top">Leasehold improvements</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom; text-align: center">lesser of remaining lease term or expected useful life</td> <td style="vertical-align: bottom"> </td></tr> </table>

P1Y

P5Y

P2Y

P5Y

lesser of remaining lease term or expected useful life

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr> <td style="vertical-align: bottom; border-bottom: black 1.5pt solid; width: 81%; text-align: left">Classification</td> <td style="width: 1%; text-align: justify"> </td> <td style="border-bottom: black 1.5pt solid; width: 17%; text-align: center">Estimated Useful Life</td> <td style="width: 1%; text-align: justify"> </td></tr> <tr style="background-color: rgb(204,238,255)"> <td style="text-align: justify">Artwork trading platform</td> <td style="text-align: justify"> </td> <td style="text-align: center">5 years</td> <td style="text-align: justify"> </td></tr> <tr> <td style="text-align: justify">Software</td> <td style="text-align: justify"> </td> <td style="text-align: center">5 years</td> <td style="text-align: justify"> </td></tr> </table>

P5Y

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="white-space: nowrap; text-align: center"> </td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="white-space: nowrap; border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2020</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold"> </td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="white-space: nowrap; border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2019</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 76%; text-align: justify">Beginning balance</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: justify">$</td><td style="width: 9%; text-align: right">176,457</td><td style="width: 1%; text-align: justify"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: justify">$</td><td style="width: 9%; text-align: right">823,290</td><td style="width: 1%; text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify">Customer advances</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">18,134,308</td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">10,035,537</td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Recognized as revenues</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">(18,079,616</td><td style="text-align: justify">)</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">(10,670,840</td><td style="text-align: justify">)</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify; padding-bottom: 1.5pt">Effect of exchange rate</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">12,206</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(11,530</td><td style="padding-bottom: 1.5pt; text-align: justify">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 4pt">Ending balance</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: justify">$</td><td style="border-bottom: Black 4pt double; text-align: right">243,355</td><td style="padding-bottom: 4pt; text-align: justify"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: justify">$</td><td style="border-bottom: Black 4pt double; text-align: right">176,457</td><td style="padding-bottom: 4pt; text-align: justify"> </td></tr> </table>

176457

823290

18134308 10035537 -18079616 -10670840

12206

-11530

243355

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="vertical-align: bottom; white-space: nowrap; text-align: center"> </td><td style="vertical-align: bottom; padding-bottom: 1.5pt; white-space: nowrap; text-align: center"> </td> <td colspan="6" style="border-bottom: Black 1.5pt solid; vertical-align: bottom; text-align: center; white-space: nowrap">For the Years Ended December 31, </td><td style="vertical-align: bottom; padding-bottom: 1.5pt; white-space: nowrap; text-align: center"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 76%; text-align: justify">Listing service fees</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: justify">$</td><td style="width: 9%; text-align: right">8,405,211</td><td style="width: 1%; text-align: justify"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: justify">$</td><td style="width: 9%; text-align: right">1,501,645</td><td style="width: 1%; text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify">Transaction fees</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">7,075,283</td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">4,742,565</td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Marketing service fees*</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">1,370,164</td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">6,729,736</td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify; padding-bottom: 1.5pt">Other revenues**</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">588,144</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">475,489</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 4pt">Total</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: justify">$</td><td style="border-bottom: Black 4pt double; text-align: right">17,438,802</td><td style="padding-bottom: 4pt; text-align: justify"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: justify">$</td><td style="border-bottom: Black 4pt double; text-align: right">13,449,435</td><td style="padding-bottom: 4pt; text-align: justify"> </td></tr> </table>

8405211 1501645 7075283 4742565 1370164 6729736 588144 475489

Note 3 – Business combinations Acquisition of HKDAEx On May 7, 2019, the Company entered into a Sale and Purchase Agreement (the “Agreement”) to acquire 100% of the equity interests of HKDAEx, which provides the Company’s customers with an online trading platform for certain commodity products in Hong Kong. Pursuant to the terms of the Agreement, the sole shareholder of HKDAEx exchanged his equity interest in HKDAEx for 4,200,000 ordinary shares (post forward share split and share surrender) of Oriental Culture. On May 9, 2019, the purchase was completed. The Company’s acquisition of HKDAEx was accounted for as a business combination in accordance with FASB ASC 805. The Company has allocated the purchase price based upon the fair value of the identifiable assets acquired and liabilities assumed on the acquisition date. The Company estimated the fair values of the assets acquired and liabilities assumed at the acquisition date in accordance with the business combination standards issued by the FASB. Management of the Company is responsible for determining the fair value of assets acquired, liabilities assumed and intangible assets identified as of the acquisition date and considered a number of factors including valuations from independent appraisers. Acquisition-related costs incurred for the acquisition were not material and have been included in general and administrative expenses. The following table summarizes the fair value of the identifiable assets acquired and liabilities assumed at the acquisition date, which represents the net purchase price allocation at the date of the acquisition. The fair value of HKDAEx is detailed below. <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Fair Value</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 88%; text-align: justify">Cash and cash equivalents</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: justify">$</td><td style="width: 9%; text-align: right">630,056</td><td style="width: 1%; text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify">Other receivables and prepayment</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">2,327</td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Other receivables – related party</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">274,543</td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify">Property, plant and equipment, net</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">31,248</td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1.5pt">Intangible assets</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">615,830</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify; padding-bottom: 1.5pt">Total assets</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,554,004</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify">Other payables – related parties</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">(24,901</td><td style="text-align: justify">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1.5pt">Accrued expenses and other liabilities</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(33,598</td><td style="padding-bottom: 1.5pt; text-align: justify">)</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify; padding-bottom: 1.5pt">Total liabilities</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(58,499</td><td style="padding-bottom: 1.5pt; text-align: justify">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 4pt">Net assets acquired for shares issued</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: justify">$</td><td style="border-bottom: Black 4pt double; text-align: right">1,495,505</td><td style="padding-bottom: 4pt; text-align: justify"> </td></tr> </table> The following unaudited pro forma combined results of operations present the Company’s financial results as if the acquisition of HKDAEx had been completed on January 1, 2019. The unaudited pro forma results do not reflect operating efficiencies or potential cost savings which may result from the consolidation of operations. Accordingly, the unaudited pro forma financial information is not necessarily indicative of the results of operations that the Company would have recognized had it completed the transaction on January 1, 2019. Future results may vary significantly from the results in this pro forma information because of future events and transactions, as well as other factors. <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="14" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">For the Year Ended December 31, 2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="14" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">(Unaudited)</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center">Adjustment for</td><td style="font-weight: bold"> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center">Oriental</td><td style="font-weight: bold"> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center">Business</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center">Pro Forma</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Culture</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">HKDAEx</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Combination</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Combined</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td>OPERATING REVENUES:</td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 52%; text-align: justify; padding-left: 10pt">Net revenues</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: justify">$</td><td style="width: 9%; text-align: right">13,203,049</td><td style="width: 1%; text-align: justify"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: justify">$</td><td style="width: 9%; text-align: right">57,434</td><td style="width: 1%; text-align: justify"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: justify">$</td><td style="width: 9%; text-align: right">(57,434</td><td style="width: 1%; text-align: justify">)</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: justify">$</td><td style="width: 9%; text-align: right">13,203,049</td><td style="width: 1%; text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify; padding-bottom: 1.5pt; padding-left: 10pt">Net revenues - related parties</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">246,386</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">246,386</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1.5pt; text-align: justify; padding-left: 20pt">Total operating revenues</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">13,449,435</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">57,434</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(57,434</td><td style="padding-bottom: 1.5pt; text-align: justify">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">13,449,435</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>COST OF REVENUES:</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td style="padding-left: 10pt">Cost of revenues</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">(702,003</td><td style="text-align: justify">)</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">(20,195</td><td style="text-align: justify">)</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">-</td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">(722,198</td><td style="text-align: justify">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1.5pt; padding-left: 10pt">Cost of revenues - related party</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(607,679</td><td style="padding-bottom: 1.5pt; text-align: justify">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(607,679</td><td style="padding-bottom: 1.5pt; text-align: justify">)</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify; padding-bottom: 1.5pt; padding-left: 20pt">Total cost of revenues</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(1,309,682</td><td style="padding-bottom: 1.5pt; text-align: justify">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(20,195</td><td style="padding-bottom: 1.5pt; text-align: justify">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(1,329,877</td><td style="padding-bottom: 1.5pt; text-align: justify">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify; padding-bottom: 1.5pt">GROSS PROFIT</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">12,139,753</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">37,239</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(57,434</td><td style="padding-bottom: 1.5pt; text-align: justify">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">12,119,558</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify">OPERATING EXPENSES:</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-left: 10pt">Selling and marketing expenses</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">(550,373</td><td style="text-align: justify">)</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">-</td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">-</td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">(550,373</td><td style="text-align: justify">)</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify; padding-left: 10pt">Selling and marketing expenses - related party</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">(124,857</td><td style="text-align: justify">)</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">-</td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">-</td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">(124,857</td><td style="text-align: justify">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-left: 10pt">General and administrative expenses</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">(1,744,046</td><td style="text-align: justify">)</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">(557,470</td><td style="text-align: justify">)</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">57,434</td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">(2,244,082</td><td style="text-align: justify">)</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify; padding-bottom: 1.5pt; padding-left: 10pt">General and administrative expenses – related parties</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(409,605</td><td style="padding-bottom: 1.5pt; text-align: justify">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(17,868</td><td style="padding-bottom: 1.5pt; text-align: justify">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"> </td><td style="padding-bottom: 1.5pt; text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(427,473</td><td style="padding-bottom: 1.5pt; text-align: justify">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1.5pt; padding-left: 20pt">Total operating expenses</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(2,828,881</td><td style="padding-bottom: 1.5pt; text-align: justify">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(575,338</td><td style="padding-bottom: 1.5pt; text-align: justify">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">57,434</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(3,346,785</td><td style="padding-bottom: 1.5pt; text-align: justify">)</td></tr> <tr style="vertical-align: bottom; "> <td> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1.5pt">INCOME (LOSS) FROM OPERATIONS</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">9,310,872</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(538,099</td><td style="padding-bottom: 1.5pt; text-align: justify">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">8,772,773</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1.5pt">OTHER INCOME (EXPENSES), NET</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">113,035</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(4,140</td><td style="padding-bottom: 1.5pt; text-align: justify">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">108,895</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">INCOME (LOSS) BEFORE INCOME TAXES</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">9,423,907</td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">(542,239</td><td style="text-align: justify">)</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">-</td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">8,881,668</td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1.5pt; text-align: justify">PROVISION FOR INCOME TAX</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">NET INCOME (LOSS)</td><td> </td> <td style="text-align: justify">$</td><td style="text-align: right">9,423,907</td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify">$</td><td style="text-align: right">(542,239</td><td style="text-align: justify">)</td><td> </td> <td style="text-align: justify">$</td><td style="text-align: right">-</td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify">$</td><td style="text-align: right">8,881,668</td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">OTHER COMPREHENSIVE (LOSS) INCOME</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td style="padding-bottom: 1.5pt; text-align: justify; padding-left: 10pt">Foreign currency translation adjustment</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(228,132</td><td style="padding-bottom: 1.5pt; text-align: justify">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">6,945</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(221,187</td><td style="padding-bottom: 1.5pt; text-align: justify">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify; padding-bottom: 4pt">COMPREHENSIVE INCOME (LOSS)</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: justify">$</td><td style="border-bottom: Black 4pt double; text-align: right">9,195,775</td><td style="padding-bottom: 4pt; text-align: justify"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: justify">$</td><td style="border-bottom: Black 4pt double; text-align: right">(535,294</td><td style="padding-bottom: 4pt; text-align: justify">)</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: justify">$</td><td style="border-bottom: Black 4pt double; text-align: right">-</td><td style="padding-bottom: 4pt; text-align: justify"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: justify">$</td><td style="border-bottom: Black 4pt double; text-align: right">8,660,481</td><td style="padding-bottom: 4pt; text-align: justify"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td>WEIGHTED AVERAGE NUMBER OF ORDINARY SHARES</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1.5pt; padding-left: 10pt">Basic and diluted*</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">12,250,000</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; text-align: justify"> </td><td style="padding-bottom: 1.5pt; text-align: right"></td><td style="padding-bottom: 1.5pt; text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; text-align: justify"> </td><td style="padding-bottom: 1.5pt; text-align: right"> </td><td style="padding-bottom: 1.5pt; text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">15,190,000</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>EARNINGS PER SHARE</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify; padding-bottom: 4pt; padding-left: 10pt">Basic and diluted*</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: justify">$</td><td style="border-bottom: Black 4pt double; text-align: right">0.77</td><td style="padding-bottom: 4pt; text-align: justify"> </td><td style="padding-bottom: 4pt"> </td> <td style="padding-bottom: 4pt; text-align: justify"></td><td style="padding-bottom: 4pt; text-align: right"></td><td style="padding-bottom: 4pt; text-align: justify"></td><td style="padding-bottom: 4pt"> </td> <td style="padding-bottom: 4pt; text-align: justify"> </td><td style="padding-bottom: 4pt; text-align: right"> </td><td style="padding-bottom: 4pt; text-align: justify"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: justify">$</td><td style="border-bottom: Black 4pt double; text-align: right">0.58</td><td style="padding-bottom: 4pt; text-align: justify"> </td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: top"> <td style="width: 24px">*</td> <td style="text-align: justify">gives retroactive effect to the surrender of an aggregate of 12.5% of our then outstanding ordinary shares, from our existing shareholders at no consideration to the Company as treasury shares on November 8, 2019, and retroactive effect to the surrender of an aggregate of 30.0% of our then outstanding ordinary shares, from our existing shareholders at no consideration to the Company as treasury shares on May 28, 2020.</td></tr> </table> Pro forma adjustments were to eliminate intercompany revenue and expenses.  The following table presents the amounts of revenue and net loss of HKDAEx since the acquisition date (May 9, 2019) included in the consolidated income statement for the reporting period, <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="vertical-align: bottom; white-space: nowrap; text-align: center"> </td><td style="vertical-align: bottom; font-weight: bold; padding-bottom: 1.5pt; white-space: nowrap; text-align: center"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; vertical-align: bottom; font-weight: bold; text-align: center; white-space: nowrap">May 9 2019 – December 31, 2019</td><td style="vertical-align: bottom; padding-bottom: 1.5pt; font-weight: bold; white-space: nowrap; text-align: center"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 88%; text-align: justify">Revenues</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: justify">$</td><td style="width: 9%; text-align: right">57,434</td><td style="width: 1%; text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify">Net loss</td><td> </td> <td style="text-align: justify">$</td><td style="text-align: right">(336,035</td><td style="text-align: justify">)</td></tr> </table>

1.00

4200000

0.125 0.300

630056

2327

274543

31248

615830

1554004

24901

33598

58499

1495505

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="14" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">For the Year Ended December 31, 2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="14" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">(Unaudited)</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center">Adjustment for</td><td style="font-weight: bold"> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center">Oriental</td><td style="font-weight: bold"> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center">Business</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center">Pro Forma</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Culture</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">HKDAEx</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Combination</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Combined</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td>OPERATING REVENUES:</td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 52%; text-align: justify; padding-left: 10pt">Net revenues</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: justify">$</td><td style="width: 9%; text-align: right">13,203,049</td><td style="width: 1%; text-align: justify"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: justify">$</td><td style="width: 9%; text-align: right">57,434</td><td style="width: 1%; text-align: justify"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: justify">$</td><td style="width: 9%; text-align: right">(57,434</td><td style="width: 1%; text-align: justify">)</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: justify">$</td><td style="width: 9%; text-align: right">13,203,049</td><td style="width: 1%; text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify; padding-bottom: 1.5pt; padding-left: 10pt">Net revenues - related parties</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">246,386</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">246,386</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1.5pt; text-align: justify; padding-left: 20pt">Total operating revenues</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">13,449,435</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">57,434</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(57,434</td><td style="padding-bottom: 1.5pt; text-align: justify">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">13,449,435</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>COST OF REVENUES:</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td style="padding-left: 10pt">Cost of revenues</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">(702,003</td><td style="text-align: justify">)</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">(20,195</td><td style="text-align: justify">)</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">-</td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">(722,198</td><td style="text-align: justify">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1.5pt; padding-left: 10pt">Cost of revenues - related party</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(607,679</td><td style="padding-bottom: 1.5pt; text-align: justify">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(607,679</td><td style="padding-bottom: 1.5pt; text-align: justify">)</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify; padding-bottom: 1.5pt; padding-left: 20pt">Total cost of revenues</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(1,309,682</td><td style="padding-bottom: 1.5pt; text-align: justify">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(20,195</td><td style="padding-bottom: 1.5pt; text-align: justify">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(1,329,877</td><td style="padding-bottom: 1.5pt; text-align: justify">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify; padding-bottom: 1.5pt">GROSS PROFIT</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">12,139,753</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">37,239</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(57,434</td><td style="padding-bottom: 1.5pt; text-align: justify">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">12,119,558</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify">OPERATING EXPENSES:</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-left: 10pt">Selling and marketing expenses</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">(550,373</td><td style="text-align: justify">)</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">-</td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">-</td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">(550,373</td><td style="text-align: justify">)</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify; padding-left: 10pt">Selling and marketing expenses - related party</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">(124,857</td><td style="text-align: justify">)</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">-</td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">-</td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">(124,857</td><td style="text-align: justify">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-left: 10pt">General and administrative expenses</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">(1,744,046</td><td style="text-align: justify">)</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">(557,470</td><td style="text-align: justify">)</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">57,434</td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">(2,244,082</td><td style="text-align: justify">)</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify; padding-bottom: 1.5pt; padding-left: 10pt">General and administrative expenses – related parties</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(409,605</td><td style="padding-bottom: 1.5pt; text-align: justify">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(17,868</td><td style="padding-bottom: 1.5pt; text-align: justify">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"> </td><td style="padding-bottom: 1.5pt; text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(427,473</td><td style="padding-bottom: 1.5pt; text-align: justify">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1.5pt; padding-left: 20pt">Total operating expenses</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(2,828,881</td><td style="padding-bottom: 1.5pt; text-align: justify">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(575,338</td><td style="padding-bottom: 1.5pt; text-align: justify">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">57,434</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(3,346,785</td><td style="padding-bottom: 1.5pt; text-align: justify">)</td></tr> <tr style="vertical-align: bottom; "> <td> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1.5pt">INCOME (LOSS) FROM OPERATIONS</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">9,310,872</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(538,099</td><td style="padding-bottom: 1.5pt; text-align: justify">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">8,772,773</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1.5pt">OTHER INCOME (EXPENSES), NET</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">113,035</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(4,140</td><td style="padding-bottom: 1.5pt; text-align: justify">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">108,895</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">INCOME (LOSS) BEFORE INCOME TAXES</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">9,423,907</td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">(542,239</td><td style="text-align: justify">)</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">-</td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">8,881,668</td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1.5pt; text-align: justify">PROVISION FOR INCOME TAX</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">NET INCOME (LOSS)</td><td> </td> <td style="text-align: justify">$</td><td style="text-align: right">9,423,907</td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify">$</td><td style="text-align: right">(542,239</td><td style="text-align: justify">)</td><td> </td> <td style="text-align: justify">$</td><td style="text-align: right">-</td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify">$</td><td style="text-align: right">8,881,668</td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">OTHER COMPREHENSIVE (LOSS) INCOME</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td style="padding-bottom: 1.5pt; text-align: justify; padding-left: 10pt">Foreign currency translation adjustment</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(228,132</td><td style="padding-bottom: 1.5pt; text-align: justify">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">6,945</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(221,187</td><td style="padding-bottom: 1.5pt; text-align: justify">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify; padding-bottom: 4pt">COMPREHENSIVE INCOME (LOSS)</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: justify">$</td><td style="border-bottom: Black 4pt double; text-align: right">9,195,775</td><td style="padding-bottom: 4pt; text-align: justify"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: justify">$</td><td style="border-bottom: Black 4pt double; text-align: right">(535,294</td><td style="padding-bottom: 4pt; text-align: justify">)</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: justify">$</td><td style="border-bottom: Black 4pt double; text-align: right">-</td><td style="padding-bottom: 4pt; text-align: justify"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: justify">$</td><td style="border-bottom: Black 4pt double; text-align: right">8,660,481</td><td style="padding-bottom: 4pt; text-align: justify"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td>WEIGHTED AVERAGE NUMBER OF ORDINARY SHARES</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1.5pt; padding-left: 10pt">Basic and diluted*</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">12,250,000</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; text-align: justify"> </td><td style="padding-bottom: 1.5pt; text-align: right"></td><td style="padding-bottom: 1.5pt; text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; text-align: justify"> </td><td style="padding-bottom: 1.5pt; text-align: right"> </td><td style="padding-bottom: 1.5pt; text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">15,190,000</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>EARNINGS PER SHARE</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify; padding-bottom: 4pt; padding-left: 10pt">Basic and diluted*</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: justify">$</td><td style="border-bottom: Black 4pt double; text-align: right">0.77</td><td style="padding-bottom: 4pt; text-align: justify"> </td><td style="padding-bottom: 4pt"> </td> <td style="padding-bottom: 4pt; text-align: justify"></td><td style="padding-bottom: 4pt; text-align: right"></td><td style="padding-bottom: 4pt; text-align: justify"></td><td style="padding-bottom: 4pt"> </td> <td style="padding-bottom: 4pt; text-align: justify"> </td><td style="padding-bottom: 4pt; text-align: right"> </td><td style="padding-bottom: 4pt; text-align: justify"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: justify">$</td><td style="border-bottom: Black 4pt double; text-align: right">0.58</td><td style="padding-bottom: 4pt; text-align: justify"> </td></tr> </table><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: top"> <td style="width: 24px">*</td> <td style="text-align: justify">gives retroactive effect to the surrender of an aggregate of 12.5% of our then outstanding ordinary shares, from our existing shareholders at no consideration to the Company as treasury shares on November 8, 2019, and retroactive effect to the surrender of an aggregate of 30.0% of our then outstanding ordinary shares, from our existing shareholders at no consideration to the Company as treasury shares on May 28, 2020.</td></tr> </table>

13203049 57434 -57434 13203049 246386 246386 13449435 57434 -57434 13449435 702003 20195 722198 607679 607679 1309682 20195 1329877 12139753 37239 -57434 12119558

550373

124857 124857 -1744046 -557470 57434 -2244082

409605

17868

427473

-2828881 -575338 57434 -3346785

9310872

-538099

8772773

113035 -4140 108895

9423907

-542239

8881668

9423907 -542239 8881668

-228132

6945

-221187

9195775

-535294

8660481

12250000

15190000

0.77

0.58

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="vertical-align: bottom; white-space: nowrap; text-align: center"> </td><td style="vertical-align: bottom; font-weight: bold; padding-bottom: 1.5pt; white-space: nowrap; text-align: center"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; vertical-align: bottom; font-weight: bold; text-align: center; white-space: nowrap">May 9 2019 – December 31, 2019</td><td style="vertical-align: bottom; padding-bottom: 1.5pt; font-weight: bold; white-space: nowrap; text-align: center"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 88%; text-align: justify">Revenues</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: justify">$</td><td style="width: 9%; text-align: right">57,434</td><td style="width: 1%; text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify">Net loss</td><td> </td> <td style="text-align: justify">$</td><td style="text-align: right">(336,035</td><td style="text-align: justify">)</td></tr> </table>

57434

-336035

Note 4 – Variable interest entity On May 8, 2019, Oriental Culture WFOE entered into Contractual Arrangements with Jiangsu Yanggu and its shareholders. The significant terms of these Contractual Arrangements are summarized in “Note 1 - Nature of business and organization” above. As a result, the Company classifies Jiangsu Yanggu and its subsidiaries and as VIEs. A VIE is an entity that has either a total equity investment that is insufficient to permit the entity to finance its activities without additional subordinated financial support, or whose equity investors lack the characteristics of a controlling financial interest, such as through voting rights, right to receive the expected residual returns of the entity or obligation to absorb the expected losses of the entity. The variable interest holder, if any, that has a controlling financial interest in a VIE is deemed to be the primary beneficiary and must consolidate the VIE. Oriental Culture WFOE is deemed to have a controlling financial interest and is the primary beneficiary of Jiangsu Yanggu and its related entities because it has both of the following characteristics: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr> <td style="width: 0.25in; text-align: justify"> </td> <td style="vertical-align: top; width: 0.25in">(1)</td> <td style="text-align: justify">The power to direct activities at Jiangsu Yanggu that most significantly impact such entity’s economic performance; and</td></tr> <tr> <td style="text-align: justify"> </td> <td style="vertical-align: top"> </td> <td style="text-align: justify"> </td></tr> <tr> <td style="text-align: justify"> </td> <td style="vertical-align: top">(2)</td> <td style="text-align: justify">The obligation to absorb losses of, and the right to receive benefits from Jiangsu Yanggu that could potentially be significant to such entity.</td></tr> </table> Accordingly, the accounts of Jiangsu Yanggu and its subsidiaries are consolidated in the accompanying financial statements pursuant to ASC 810-10, Consolidation. On January 28, 2021, Oriental Culture WFOE entered into Amended and Restated VIE Agreements due to change in share ownership of Jiangsu Yanggu. Except for the change of share ownership due to equity transfer by one shareholder of Jiangsu Yanggu, there are no other changes to the terms of the Original VIE Agreements. The shareholders of Jiangsu Yanggu have completed the new pledge registration on March 4, 2021. The carrying amounts of the VIEs’ consolidated assets and liabilities are as follows:  <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="white-space: nowrap"> </td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="white-space: nowrap; border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2020</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold"> </td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="white-space: nowrap; border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2019</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2"> </td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 76%; text-align: justify">Current assets</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: justify">$</td><td style="width: 9%; text-align: right">22,537,395</td><td style="width: 1%; text-align: justify"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: justify">$</td><td style="width: 9%; text-align: right">11,794,499</td><td style="width: 1%; text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify">Property and equipment, net</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">363,675</td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">446,633</td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1.5pt">Other noncurrent assets</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">2,079,454</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,391,322</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify">Total assets</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">24,980,524</td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">13,632,454</td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1.5pt">Total liabilities</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(4,749,091</td><td style="padding-bottom: 1.5pt; text-align: justify">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(1,580,130</td><td style="padding-bottom: 1.5pt; text-align: justify">)</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify; padding-bottom: 4pt">Net assets</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: justify">$</td><td style="border-bottom: Black 4pt double; text-align: right">20,231,433</td><td style="padding-bottom: 4pt; text-align: justify"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: justify">$</td><td style="border-bottom: Black 4pt double; text-align: right">12,052,324</td><td style="padding-bottom: 4pt; text-align: justify"> </td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="white-space: nowrap"> </td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="white-space: nowrap; border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2020</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold"> </td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="white-space: nowrap; border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2019</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify">Current liabilities:</td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 76%; text-align: justify">Accounts payable</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: justify">$</td><td style="width: 9%; text-align: right">1,915,452</td><td style="width: 1%; text-align: justify"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: justify">$</td><td style="width: 9%; text-align: right">372,208</td><td style="width: 1%; text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify">Accounts payable – related parties</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">1,229,381</td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">207,766</td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Deferred revenue</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">243,355</td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">176,457</td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify">Other payables and accrued liabilities</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">1,176,209</td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">684,236</td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1.5pt">Taxes payable</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">184,694</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">139,463</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify; padding-bottom: 4pt">Total liabilities</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: justify">$</td><td style="border-bottom: Black 4pt double; text-align: right">4,749,091</td><td style="padding-bottom: 4pt; text-align: justify"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: justify">$</td><td style="border-bottom: Black 4pt double; text-align: right">1,580,130</td><td style="padding-bottom: 4pt; text-align: justify"> </td></tr> </table> The summarized operating results of the VIEs are as follows: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="6" style="border-bottom: Black 1.5pt solid; text-align: center">For the Years Ended December 31,</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 76%; text-align: justify; padding-bottom: 4pt">Operating revenues</td><td style="width: 1%; padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; width: 1%; text-align: justify">$</td><td style="border-bottom: Black 4pt double; width: 9%; text-align: right">17,438,802</td><td style="width: 1%; padding-bottom: 4pt; text-align: justify"> </td><td style="width: 1%; padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; width: 1%; text-align: justify">$</td><td style="border-bottom: Black 4pt double; width: 9%; text-align: right">13,449,448</td><td style="width: 1%; padding-bottom: 4pt; text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify; padding-bottom: 4pt">Income from operations</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: justify">$</td><td style="border-bottom: Black 4pt double; text-align: right">6,793,583</td><td style="padding-bottom: 4pt; text-align: justify"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: justify">$</td><td style="border-bottom: Black 4pt double; text-align: right">9,377,892</td><td style="padding-bottom: 4pt; text-align: justify"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 4pt">Net income</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: justify">$</td><td style="border-bottom: Black 4pt double; text-align: right">6,948,599</td><td style="padding-bottom: 4pt; text-align: justify"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: justify">$</td><td style="border-bottom: Black 4pt double; text-align: right">9,490,927</td><td style="padding-bottom: 4pt; text-align: justify"> </td></tr> </table>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="white-space: nowrap"> </td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="white-space: nowrap; border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2020</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold"> </td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="white-space: nowrap; border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2019</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2"> </td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 76%; text-align: justify">Current assets</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: justify">$</td><td style="width: 9%; text-align: right">22,537,395</td><td style="width: 1%; text-align: justify"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: justify">$</td><td style="width: 9%; text-align: right">11,794,499</td><td style="width: 1%; text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify">Property and equipment, net</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">363,675</td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">446,633</td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1.5pt">Other noncurrent assets</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">2,079,454</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,391,322</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify">Total assets</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">24,980,524</td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">13,632,454</td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1.5pt">Total liabilities</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(4,749,091</td><td style="padding-bottom: 1.5pt; text-align: justify">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(1,580,130</td><td style="padding-bottom: 1.5pt; text-align: justify">)</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify; padding-bottom: 4pt">Net assets</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: justify">$</td><td style="border-bottom: Black 4pt double; text-align: right">20,231,433</td><td style="padding-bottom: 4pt; text-align: justify"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: justify">$</td><td style="border-bottom: Black 4pt double; text-align: right">12,052,324</td><td style="padding-bottom: 4pt; text-align: justify"> </td></tr> </table><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="white-space: nowrap"> </td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="white-space: nowrap; border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2020</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold"> </td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="white-space: nowrap; border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2019</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify">Current liabilities:</td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 76%; text-align: justify">Accounts payable</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: justify">$</td><td style="width: 9%; text-align: right">1,915,452</td><td style="width: 1%; text-align: justify"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: justify">$</td><td style="width: 9%; text-align: right">372,208</td><td style="width: 1%; text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify">Accounts payable – related parties</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">1,229,381</td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">207,766</td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Deferred revenue</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">243,355</td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">176,457</td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify">Other payables and accrued liabilities</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">1,176,209</td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">684,236</td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1.5pt">Taxes payable</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">184,694</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">139,463</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify; padding-bottom: 4pt">Total liabilities</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: justify">$</td><td style="border-bottom: Black 4pt double; text-align: right">4,749,091</td><td style="padding-bottom: 4pt; text-align: justify"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: justify">$</td><td style="border-bottom: Black 4pt double; text-align: right">1,580,130</td><td style="padding-bottom: 4pt; text-align: justify"> </td></tr> </table> 22537395 11794499 363675 446633 2079454 1391322 24980524 13632454 4749091 1580130 20231433 12052324 1915452 372208 1229381 207766 243355 176457 1176209 684236 184694 139463 4749091 1580130 <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="6" style="border-bottom: Black 1.5pt solid; text-align: center">For the Years Ended December 31,</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 76%; text-align: justify; padding-bottom: 4pt">Operating revenues</td><td style="width: 1%; padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; width: 1%; text-align: justify">$</td><td style="border-bottom: Black 4pt double; width: 9%; text-align: right">17,438,802</td><td style="width: 1%; padding-bottom: 4pt; text-align: justify"> </td><td style="width: 1%; padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; width: 1%; text-align: justify">$</td><td style="border-bottom: Black 4pt double; width: 9%; text-align: right">13,449,448</td><td style="width: 1%; padding-bottom: 4pt; text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify; padding-bottom: 4pt">Income from operations</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: justify">$</td><td style="border-bottom: Black 4pt double; text-align: right">6,793,583</td><td style="padding-bottom: 4pt; text-align: justify"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: justify">$</td><td style="border-bottom: Black 4pt double; text-align: right">9,377,892</td><td style="padding-bottom: 4pt; text-align: justify"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 4pt">Net income</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: justify">$</td><td style="border-bottom: Black 4pt double; text-align: right">6,948,599</td><td style="padding-bottom: 4pt; text-align: justify"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: justify">$</td><td style="border-bottom: Black 4pt double; text-align: right">9,490,927</td><td style="padding-bottom: 4pt; text-align: justify"> </td></tr> </table> 17438802 13449448 6793583 9377892 6948599 9490927

Note 5 – Other receivables and prepaid expenses Other receivables consist of the following: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="white-space: nowrap; text-align: center"> </td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="white-space: nowrap; border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2020</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold"> </td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="white-space: nowrap; border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2019</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 76%; text-align: justify">Rent and other deposits</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: justify">$</td><td style="width: 9%; text-align: right">10,185</td><td style="width: 1%; text-align: justify"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: justify">$</td><td style="width: 9%; text-align: right">23,270</td><td style="width: 1%; text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify">Employee advances and others</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">605</td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">-</td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1.5pt">Prepaid taxes and services fees</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">188,725</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">9,672</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify; padding-bottom: 4pt">Total other receivables and prepaid expenses</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: justify">$</td><td style="border-bottom: Black 4pt double; text-align: right">199,515</td><td style="padding-bottom: 4pt; text-align: justify"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: justify">$</td><td style="border-bottom: Black 4pt double; text-align: right">32,942</td><td style="padding-bottom: 4pt; text-align: justify"> </td></tr> </table>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="white-space: nowrap; text-align: center"> </td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="white-space: nowrap; border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2020</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold"> </td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="white-space: nowrap; border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2019</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 76%; text-align: justify">Rent and other deposits</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: justify">$</td><td style="width: 9%; text-align: right">10,185</td><td style="width: 1%; text-align: justify"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: justify">$</td><td style="width: 9%; text-align: right">23,270</td><td style="width: 1%; text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify">Employee advances and others</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">605</td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">-</td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1.5pt">Prepaid taxes and services fees</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">188,725</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">9,672</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify; padding-bottom: 4pt">Total other receivables and prepaid expenses</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: justify">$</td><td style="border-bottom: Black 4pt double; text-align: right">199,515</td><td style="padding-bottom: 4pt; text-align: justify"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: justify">$</td><td style="border-bottom: Black 4pt double; text-align: right">32,942</td><td style="padding-bottom: 4pt; text-align: justify"> </td></tr> </table>

10185 23270 605 188725 9672

199515

32942

Note 6 – Deposit On November 16, 2020, the Company entered into a memorandum of understanding (“MOU”) with a third-party to acquire approximately 39,000 square meters of office and warehouse space and related land use rights in Nanjing city to meet the Company’s growing need for office and warehouse space. The total price per the MOU was RMB195 million (approximately $29.6 million) and the land use rights will expire on October 7, 2052. The current land use rights for existing office and warehouse on site were for industrial use purposes and the seller agreed to apply for approval with the local government to change the use of rights from industrial to research and development before the parties would proceed further with the MOU. The Company was planning to use the property for its research and development center. The Company paid a deposit of RMB 65 million after signing the MOU. A second payment of RMB 22 million was made upon finalization of the research center development plan with the final payment to be paid when the permit is approved in six months and the research center is completed. The Company paid the deposit of RMB 87 million (approximately $13.3 million) as of December 31, 2020. In March 2021, the Company was notified by the seller that the permit may not be obtained timely or at all. The Company terminated the MOU and the seller has refunded the full deposit as of the date of this report. There was no termination fee or penalty.

39000

195000000

29600000

65000000

22000000

87000000

13300000

Note 7 – Property and equipment, net Property and equipment consist of the following: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="white-space: nowrap; text-align: center"> </td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="white-space: nowrap; border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2020</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold"> </td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="white-space: nowrap; border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2019</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 76%; text-align: justify">Electronic equipment</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: justify">$</td><td style="width: 9%; text-align: right">82,736</td><td style="width: 1%; text-align: justify"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: justify">$</td><td style="width: 9%; text-align: right">78,327</td><td style="width: 1%; text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify">Office equipment</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">47,885</td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">42,979</td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Server room equipment</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">213,984</td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">200,141</td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify">Vehicle</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">278,534</td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">260,515</td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Leasehold improvement</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">14,910</td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">14,841</td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify">Furniture</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">4,789</td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">4,767</td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1.5pt">Less: accumulated depreciation</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(270,623</td><td style="padding-bottom: 1.5pt; text-align: justify">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(140,701</td><td style="padding-bottom: 1.5pt; text-align: justify">)</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify; padding-bottom: 4pt">Total</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: justify">$</td><td style="border-bottom: Black 4pt double; text-align: right">372,215</td><td style="padding-bottom: 4pt; text-align: justify"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: justify">$</td><td style="border-bottom: Black 4pt double; text-align: right">460,869</td><td style="padding-bottom: 4pt; text-align: justify"> </td></tr> </table> Depreciation and amortization expense for the years ended December 31, 2020 and 2019 amounted to $122,409 and $114,159, respectively.

122409

114159

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="white-space: nowrap; text-align: center"> </td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="white-space: nowrap; border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2020</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold"> </td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="white-space: nowrap; border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2019</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 76%; text-align: justify">Electronic equipment</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: justify">$</td><td style="width: 9%; text-align: right">82,736</td><td style="width: 1%; text-align: justify"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: justify">$</td><td style="width: 9%; text-align: right">78,327</td><td style="width: 1%; text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify">Office equipment</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">47,885</td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">42,979</td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Server room equipment</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">213,984</td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">200,141</td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify">Vehicle</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">278,534</td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">260,515</td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Leasehold improvement</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">14,910</td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">14,841</td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify">Furniture</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">4,789</td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">4,767</td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1.5pt">Less: accumulated depreciation</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(270,623</td><td style="padding-bottom: 1.5pt; text-align: justify">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(140,701</td><td style="padding-bottom: 1.5pt; text-align: justify">)</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify; padding-bottom: 4pt">Total</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: justify">$</td><td style="border-bottom: Black 4pt double; text-align: right">372,215</td><td style="padding-bottom: 4pt; text-align: justify"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: justify">$</td><td style="border-bottom: Black 4pt double; text-align: right">460,869</td><td style="padding-bottom: 4pt; text-align: justify"> </td></tr> </table>

82736

78327

47885

42979

213984

200141

278534

260515

14910

14841

4789

4767

270623

140701

Note 8 – Intangible assets, net Intangible assets consist of the following: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="white-space: nowrap"> </td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="white-space: nowrap; border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2020</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold"> </td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="white-space: nowrap; border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2019</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2"> </td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 76%; text-align: justify">Artwork trading platform</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: justify">$</td><td style="width: 9%; text-align: right">798,037</td><td style="width: 1%; text-align: justify"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: justify">$</td><td style="width: 9%; text-align: right">794,349</td><td style="width: 1%; text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify">Software</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">139,059</td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">120,529</td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1.5pt">Less: accumulated amortization</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(364,104</td><td style="padding-bottom: 1.5pt; text-align: justify">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(175,085</td><td style="padding-bottom: 1.5pt; text-align: justify">)</td></tr> <tr style="vertical-align: bottom; "> <td style="padding-bottom: 4pt">Total</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: justify">$</td><td style="border-bottom: Black 4pt double; text-align: right">572,992</td><td style="padding-bottom: 4pt; text-align: justify"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: justify">$</td><td style="border-bottom: Black 4pt double; text-align: right">739,793</td><td style="padding-bottom: 4pt; text-align: justify"> </td></tr> </table> Amortization expenses for the years ended December 31, 2020 and 2019 amounted to $185,865 and $127,560, respectively. Total additions to intangible assets for the years ended December 31, 2020 and 2019 amounted to $9,642 and $761,623 (including $641,898 for the platform acquired from HKDAEx), respectively. The future amortization is as follows: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: justify">Years Ending December 31,</td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Future Amortization Expense</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 88%; text-align: justify">2021</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: justify">$</td><td style="width: 9%; text-align: right">187,419</td><td style="width: 1%; text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify">2022</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">187,419</td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">2023</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">161,702</td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify; padding-bottom: 1.5pt">2024</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">36,452</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 4pt">Total</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: justify">$</td><td style="border-bottom: Black 4pt double; text-align: right">572,992</td><td style="padding-bottom: 4pt; text-align: justify"> </td></tr> </table>

185865

127560

9642

761623

641898

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="white-space: nowrap"> </td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="white-space: nowrap; border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2020</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold"> </td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="white-space: nowrap; border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2019</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2"> </td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 76%; text-align: justify">Artwork trading platform</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: justify">$</td><td style="width: 9%; text-align: right">798,037</td><td style="width: 1%; text-align: justify"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: justify">$</td><td style="width: 9%; text-align: right">794,349</td><td style="width: 1%; text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify">Software</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">139,059</td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">120,529</td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1.5pt">Less: accumulated amortization</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(364,104</td><td style="padding-bottom: 1.5pt; text-align: justify">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(175,085</td><td style="padding-bottom: 1.5pt; text-align: justify">)</td></tr> <tr style="vertical-align: bottom; "> <td style="padding-bottom: 4pt">Total</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: justify">$</td><td style="border-bottom: Black 4pt double; text-align: right">572,992</td><td style="padding-bottom: 4pt; text-align: justify"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: justify">$</td><td style="border-bottom: Black 4pt double; text-align: right">739,793</td><td style="padding-bottom: 4pt; text-align: justify"> </td></tr> </table>

798037

794349

139059

120529

364104

175085

572992

739793

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: justify">Years Ending December 31,</td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Future Amortization Expense</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 88%; text-align: justify">2021</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: justify">$</td><td style="width: 9%; text-align: right">187,419</td><td style="width: 1%; text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify">2022</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">187,419</td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">2023</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">161,702</td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify; padding-bottom: 1.5pt">2024</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">36,452</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 4pt">Total</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: justify">$</td><td style="border-bottom: Black 4pt double; text-align: right">572,992</td><td style="padding-bottom: 4pt; text-align: justify"> </td></tr> </table>

187419

161702

36452

Note 9 – Investment In 2018, the Company invested RMB 7,140,000 (approximately $1,038,000) in Zhongcang Warehouse Co., Ltd. (“Zhongcang”), a PRC company that engages in providing storage services, in exchange for a 34% equity interest. As the Company has significant influence over the investee through its representation on the board, the investment in Zhongcang was accounted for using the equity method. On December 20, 2018, the Company sold 14% of its equity interest in Zhongcang to Nanjing Zhonghao Culture Media Co., Ltd. for RMB 2,940,000 (approximately $427,400), for which no gain or loss was recognized on the sale. The Company’s holding in Zhongcang was reduced to 20%. In May 2019, the Company sold another 2% of its remaining equity interest in Zhongcang to Nanjing Zhonghao Culture Media Co., Ltd. for RMB 420,000 (approximately $61,400), for which no gain or loss was recognized on the sale. As a result, the Company no longer has significant influence over the investee, and the investment in Zhongcang is accounted for using the cost method.

7140000

1038000

0.34

0.14

2940000

427400

0.20

0.02

420000

61400

Note 10 – Other payables and accrued liabilities Other payables and accrued liabilities consist of the following: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="white-space: nowrap"> </td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="white-space: nowrap; border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2020</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold"> </td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="white-space: nowrap; border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2019</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 76%; text-align: justify">Security deposit*</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: justify">$</td><td style="width: 9%; text-align: right">609,617</td><td style="width: 1%; text-align: justify"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: justify">$</td><td style="width: 9%; text-align: right">509,565</td><td style="width: 1%; text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify">Salary payable**</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">381,212</td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">158,807</td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1.5pt">Others</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">52,554</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">27,434</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td style="padding-bottom: 4pt">Total</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: justify">$</td><td style="border-bottom: Black 4pt double; text-align: right">1,043,383</td><td style="padding-bottom: 4pt; text-align: justify"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: justify">$</td><td style="border-bottom: Black 4pt double; text-align: right">695,806</td><td style="padding-bottom: 4pt; text-align: justify"> </td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: top"> <td style="width: 3%">*</td> <td style="width: 97%; text-align: justify">The Company signed various cooperation agreements with various third parties to co-develop a niche market for the online platform. Revenue generated from the niche markets will be shared between the Company and these parties. The security deposit will be returned to these parties upon dissolution of the cooperation agreements.</td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: top"> <td style="font-size: 10pt; width: 3%">**</td> <td style="text-align: justify; font-size: 10pt; width: 97%">During the years ended December 31, 2020 and 2019, the Company accrued bonus payable of approximatively $256,000 and $76,000, respectively and such amounts were paid in March 2021 and January 2020, respectively.</td></tr> </table>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="white-space: nowrap"> </td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="white-space: nowrap; border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2020</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold"> </td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="white-space: nowrap; border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2019</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 76%; text-align: justify">Security deposit*</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: justify">$</td><td style="width: 9%; text-align: right">609,617</td><td style="width: 1%; text-align: justify"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: justify">$</td><td style="width: 9%; text-align: right">509,565</td><td style="width: 1%; text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify">Salary payable**</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">381,212</td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">158,807</td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1.5pt">Others</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">52,554</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">27,434</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td style="padding-bottom: 4pt">Total</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: justify">$</td><td style="border-bottom: Black 4pt double; text-align: right">1,043,383</td><td style="padding-bottom: 4pt; text-align: justify"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: justify">$</td><td style="border-bottom: Black 4pt double; text-align: right">695,806</td><td style="padding-bottom: 4pt; text-align: justify"> </td></tr> </table><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: top"> <td style="width: 3%">*</td> <td style="width: 97%; text-align: justify">The Company signed various cooperation agreements with various third parties to co-develop a niche market for the online platform. Revenue generated from the niche markets will be shared between the Company and these parties. The security deposit will be returned to these parties upon dissolution of the cooperation agreements.</td></tr> </table><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: top"> <td style="font-size: 10pt; width: 3%">**</td> <td style="text-align: justify; font-size: 10pt; width: 97%">During the years ended December 31, 2020 and 2019, the Company accrued bonus payable of approximatively $256,000 and $76,000, respectively and such amounts were paid in March 2021 and January 2020, respectively.</td></tr> </table>

609617

509565

381212

158807

52554

27434

Note 11 – Taxes Cayman Islands Under the current laws of the Cayman Islands, the Company is not subject to tax on income or capital gains. Additionally, upon payments of dividends to the shareholders, no Cayman Islands withholding tax will be imposed. Hong Kong Under the current Hong Kong Inland Revenue Ordinance, Oriental Culture HK established in Hong Kong is subject to a 16.5% income tax on taxable income generated from operations in Hong Kong. Payments of dividends from Oriental Culture HK to us are not subject to any Hong Kong withholding tax. The Company did not generate any revenue from operations in Hong Kong since its inception through December 31, 2020, and therefore is not currently subject to any income taxes in Hong Kong. PRC The WFOE and its VIEs incorporated in the PRC are governed by the income tax laws of the PRC and the income tax provisions in respect to operations in the PRC is calculated at the applicable tax rates on the taxable income for the periods based on existing legislation, interpretations and practices in respect thereof. Under the Enterprise Income Tax Laws of the PRC (the “EIT Laws”), domestic enterprises and Foreign Investment Enterprises (“FIEs”) are subject to a unified 25% enterprise income tax rate while preferential tax rates, tax holidays and even tax exemptions may be granted on case-by-case basis. Under the current EIT Law, dividends paid by an FIE to any of its foreign non-resident enterprise investors are subject to a 10% withholding tax. Thus, dividends, if and when payable by the Company’s PRC subsidiaries to their offshore parent entities, would be subject to a 10% withholding tax. A lower tax rate will be applied if such foreign non-resident enterprise investor’s jurisdiction of incorporation has signed a tax treaty or arrangement for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income with China. There is such a tax arrangement between the PRC and Hong Kong. Thus, the dividends, if and when payable by the Company’s PRC subsidiaries to the offshore parent entities located in Hong Kong, would be subject to 5% withholding tax rather than statutory rate of 10% provided that the offshore entities located in Hong Kong meet the requirements stipulated by relevant PRC tax regulations. The Company has not provided for deferred income tax liabilities on the PRC entities’ undistributed earnings of $13,647,770 and $11,599,663 as of December 31, 2020 and 2019, respectively, because the Company controls the timing of the undistributed earnings and it is probable that such earnings will not be distributed. The Company plans to reinvest those earnings in the PRC indefinitely in the foreseeable future. Moreover, the current EIT Law treats enterprises established outside of China with “effective management and control” located in China as PRC resident enterprises for tax purposes. The term “effective management and control” is generally defined as exercising overall management and control over the business, personnel, accounting, properties, etc. of an enterprise. The Company, if considered a PRC resident enterprise for tax purposes, would be subject to the PRC Enterprise Income Tax at the rate of 25% on its worldwide income for the period after January 1, 2008 if the primary location of the day-to-day operational management is in the PRC. Based upon a review of surrounding facts and circumstances, none of the Company’s subsidiaries outside of China is a PRC resident enterprise for PRC tax purposes, and therefore was not subject to PRC taxes. Kashi Longrui and Kashi Dongfang were formed and registered in Kashi in Xinjiang Province, China in 2018. These companies have received an exemption and will not be subject to income tax for 5 years. As of December 31, 2020 and 2019, the Company has not recorded any deferred tax liabilities in light of (1) its tax-free arrangement; (2) its compliance with PRC EIT Law in making payments of enterprise income tax; and (3) Jiangsu Yanggu’s inability to pay its net profits to WFOE under the VIE agreement without the Company’s determination. However, any changes with the currently effective PRC Tax laws and regulations would result in the Company paying more enterprise income tax, which would materially adversely affect the operating and financial performance of the Company. Tax savings for the years ended December 31, 2020 and 2019 amounted to $2,426,541 and $2,494,418, respectively. The Company’s basic and diluted earnings per shares would have been lower by $0.16 and $0.18 per share for the years ended December 31, 2020 and 2019 without the preferential tax exemption, respectively. The following table reconciles China statutory rates to the Company’s effective tax rate: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="white-space: nowrap"> </td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="white-space: nowrap; border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2020</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold"> </td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="white-space: nowrap; border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2019</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 76%; text-align: justify">China income tax rate</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: justify"> </td><td style="width: 9%; text-align: right">25.0</td><td style="width: 1%; text-align: justify">%</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: justify"> </td><td style="width: 9%; text-align: right">25.0</td><td style="width: 1%; text-align: justify">%</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify">Tax exemption</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">(14.4</td><td style="text-align: justify">)%</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">(23.0</td><td style="text-align: justify">)%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1.5pt">Change in valuation allowance</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(10.6</td><td style="padding-bottom: 1.5pt; text-align: justify">)%</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(3.0</td><td style="padding-bottom: 1.5pt; text-align: justify">)%</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify; padding-bottom: 4pt">Effective tax rate</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: justify"> </td><td style="border-bottom: Black 4pt double; text-align: right">-</td><td style="padding-bottom: 4pt; text-align: justify">%</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: justify"> </td><td style="border-bottom: Black 4pt double; text-align: right">-</td><td style="padding-bottom: 4pt; text-align: justify">%</td></tr> </table> Deferred tax assets - China The following table summarizes the significant components of deferred tax assets. <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="white-space: nowrap; text-align: center"> </td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="white-space: nowrap; border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2020</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold"> </td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="white-space: nowrap; border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2019</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 76%; text-align: justify">Net operating losses</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: justify">$</td><td style="width: 9%; text-align: right">452,009</td><td style="width: 1%; text-align: justify"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: justify">$</td><td style="width: 9%; text-align: right">233,889</td><td style="width: 1%; text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify; padding-bottom: 1.5pt">Less: valuation allowance</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(452,009</td><td style="padding-bottom: 1.5pt; text-align: justify">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(233,889</td><td style="padding-bottom: 1.5pt; text-align: justify">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 4pt">Deferred tax assets, net</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: justify">$</td><td style="border-bottom: Black 4pt double; text-align: right">-</td><td style="padding-bottom: 4pt; text-align: justify"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: justify">$</td><td style="border-bottom: Black 4pt double; text-align: right">-</td><td style="padding-bottom: 4pt; text-align: justify"> </td></tr> </table> The following table summarizes the changes in valuation allowance for deferred tax assets. <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="white-space: nowrap; text-align: center"> </td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="white-space: nowrap; border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2020</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold"> </td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="white-space: nowrap; border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2019</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 76%; text-align: justify">Beginning balance</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: justify">$</td><td style="width: 9%; text-align: right">233,889</td><td style="width: 1%; text-align: justify"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: justify">$</td><td style="width: 9%; text-align: right">52,719</td><td style="width: 1%; text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify; padding-bottom: 1.5pt">Additions</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">218,120</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">181,170</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 4pt">Ending balance</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: justify">$</td><td style="border-bottom: Black 4pt double; text-align: right">452,009</td><td style="padding-bottom: 4pt; text-align: justify"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: justify">$</td><td style="border-bottom: Black 4pt double; text-align: right">233,889</td><td style="padding-bottom: 4pt; text-align: justify"> </td></tr> </table> The Company evaluated the recoverable amounts of deferred tax assets, and provided a valuation allowance to the extent that it believes future taxable profits will be available against which the net operating loss and temporary difference can be utilized. The Company considers both positive and negative factors when assessing the future realization of the deferred tax assets and applied weigh to the relative impact of the evidence to the extent it could be objectively verified. The Company’s NOL was mainly from the Company’s VIE and subsidiaries’ cumulative net operating losses (“NOL”) of approximately $2,118,000 and $1,096,000 as of December 31, 2020 and 2019. Management believes projected future losses outweighs other factors and provided a full valuation allowance for the related deferred tax assets. Taxes payable consist of the following: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="white-space: nowrap; text-align: justify"> </td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="white-space: nowrap; border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2020</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold"> </td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="white-space: nowrap; border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2019</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 76%; text-align: justify">VAT payable</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: justify">$</td><td style="width: 9%; text-align: right">170,455</td><td style="width: 1%; text-align: justify"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: justify">$</td><td style="width: 9%; text-align: right">131,351</td><td style="width: 1%; text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify; padding-bottom: 1.5pt">Other taxes payable</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">14,239</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">8,112</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 4pt">Total</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: justify">$</td><td style="border-bottom: Black 4pt double; text-align: right">184,694</td><td style="padding-bottom: 4pt; text-align: justify"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: justify">$</td><td style="border-bottom: Black 4pt double; text-align: right">139,463</td><td style="padding-bottom: 4pt; text-align: justify"> </td></tr> </table> Uncertain tax positions The Company evaluates uncertain tax position including the potential application of interest and penalties based on the technical merits, and measures the unrecognized benefits associated with the tax positions. As of December 31, 2020 and 2019, the Company did not have any significant unrecognized uncertain tax positions.

0.165

0.25

0.10 0.05

0.10

13647770

11599663

0.25

P5Y 2426541 2494418 0.16 0.18

2118000

1096000

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="white-space: nowrap"> </td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="white-space: nowrap; border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2020</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold"> </td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="white-space: nowrap; border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2019</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 76%; text-align: justify">China income tax rate</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: justify"> </td><td style="width: 9%; text-align: right">25.0</td><td style="width: 1%; text-align: justify">%</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: justify"> </td><td style="width: 9%; text-align: right">25.0</td><td style="width: 1%; text-align: justify">%</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify">Tax exemption</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">(14.4</td><td style="text-align: justify">)%</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">(23.0</td><td style="text-align: justify">)%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1.5pt">Change in valuation allowance</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(10.6</td><td style="padding-bottom: 1.5pt; text-align: justify">)%</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(3.0</td><td style="padding-bottom: 1.5pt; text-align: justify">)%</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify; padding-bottom: 4pt">Effective tax rate</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: justify"> </td><td style="border-bottom: Black 4pt double; text-align: right">-</td><td style="padding-bottom: 4pt; text-align: justify">%</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: justify"> </td><td style="border-bottom: Black 4pt double; text-align: right">-</td><td style="padding-bottom: 4pt; text-align: justify">%</td></tr> </table>

0.250

-0.144

-0.230

-0.106

-0.030

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="white-space: nowrap; text-align: center"> </td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="white-space: nowrap; border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2020</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold"> </td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="white-space: nowrap; border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2019</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 76%; text-align: justify">Net operating losses</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: justify">$</td><td style="width: 9%; text-align: right">452,009</td><td style="width: 1%; text-align: justify"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: justify">$</td><td style="width: 9%; text-align: right">233,889</td><td style="width: 1%; text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify; padding-bottom: 1.5pt">Less: valuation allowance</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(452,009</td><td style="padding-bottom: 1.5pt; text-align: justify">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(233,889</td><td style="padding-bottom: 1.5pt; text-align: justify">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 4pt">Deferred tax assets, net</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: justify">$</td><td style="border-bottom: Black 4pt double; text-align: right">-</td><td style="padding-bottom: 4pt; text-align: justify"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: justify">$</td><td style="border-bottom: Black 4pt double; text-align: right">-</td><td style="padding-bottom: 4pt; text-align: justify"> </td></tr> </table>

452009

233889

452009

233889

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="white-space: nowrap; text-align: center"> </td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="white-space: nowrap; border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2020</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold"> </td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="white-space: nowrap; border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2019</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 76%; text-align: justify">Beginning balance</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: justify">$</td><td style="width: 9%; text-align: right">233,889</td><td style="width: 1%; text-align: justify"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: justify">$</td><td style="width: 9%; text-align: right">52,719</td><td style="width: 1%; text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify; padding-bottom: 1.5pt">Additions</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">218,120</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">181,170</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 4pt">Ending balance</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: justify">$</td><td style="border-bottom: Black 4pt double; text-align: right">452,009</td><td style="padding-bottom: 4pt; text-align: justify"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: justify">$</td><td style="border-bottom: Black 4pt double; text-align: right">233,889</td><td style="padding-bottom: 4pt; text-align: justify"> </td></tr> </table>

233889 52719 218120 181170 452009 <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="white-space: nowrap; text-align: justify"> </td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="white-space: nowrap; border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2020</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold"> </td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="white-space: nowrap; border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2019</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 76%; text-align: justify">VAT payable</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: justify">$</td><td style="width: 9%; text-align: right">170,455</td><td style="width: 1%; text-align: justify"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: justify">$</td><td style="width: 9%; text-align: right">131,351</td><td style="width: 1%; text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify; padding-bottom: 1.5pt">Other taxes payable</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">14,239</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">8,112</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 4pt">Total</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: justify">$</td><td style="border-bottom: Black 4pt double; text-align: right">184,694</td><td style="padding-bottom: 4pt; text-align: justify"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: justify">$</td><td style="border-bottom: Black 4pt double; text-align: right">139,463</td><td style="padding-bottom: 4pt; text-align: justify"> </td></tr> </table> 170455 131351 14239 8112

184694

139463

Note 12– Concentration of credit risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash and cash equivalents. A depositor in the PRC has up to RMB 500,000 (approximately $72,000) insured by the People’s Bank of China Financial Stability Bureau (“FSD”). As of December 31, 2020, approximately $1,320,000 of deposits at Ping An Bank were not insured by FSD. The Hong Kong Deposit Protection Board insures up to HKD $500,000 (approximately $64,000) if the bank with which an individual/a company hold its eligible deposits fails. As of December 31, 2020 approximately $1,000 was not insured by the Hong Kong Deposit Protection Board. As of December 31, 2020, cash balances of $17,213,029 were maintained at U.S. financial institutions, approximately $16,713,000 of these balances were not insured by the Federal Deposit Insurance Corporation as it only insures deposits up to $250,000 in accounts at each bank. As of December 31, 2020 approximately $2,727,000 was deposited on our trading platform trust account located in the PRC. The account is held at Ping An Bank and entrusted with Nanjing Jinwang Art Purchase E-commerce Co., Ltd., our related party. This balance is not covered by insurance. While management believes that these financial institutions and platform fund holder are of high credit quality, it continually monitors their credit worthiness. Customer concentration risk For the years ended December 31, 2020 and 2019, no customer accounted for more than 10% of the Company’s total revenues. Three customers accounted for approximately 30.5%, 11.4% and 11.4% of the Company’s accounts receivable as of December 31, 2020. Eight customers accounted for 95.0% (ranging from 10.2% to 17.0%) of the Company’s accounts receivable as of December 31, 2019

500000

72000

1320000

500000

64000

1000

17213029

16713000

250000

2727000

more than 10%

0.305

0.114

0.950

0.102

0.170

Note 13 – Related party transactions a. Accounts payable – related parties consist of the following: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="white-space: nowrap; vertical-align: top; text-align: left"> </td><td style="white-space: nowrap; vertical-align: bottom; font-weight: bold; padding-bottom: 1.5pt; text-align: center"> </td> <td style="white-space: nowrap; border-bottom: Black 1.5pt solid; vertical-align: bottom; font-weight: bold; text-align: center">Relationship</td><td style="white-space: nowrap; vertical-align: bottom; font-weight: bold; padding-bottom: 1.5pt; text-align: center"> </td> <td style="border-bottom: Black 1.5pt solid; white-space: nowrap; vertical-align: bottom; font-weight: bold; text-align: center">Nature</td><td style="white-space: nowrap; vertical-align: bottom; font-weight: bold; padding-bottom: 1.5pt; text-align: center"> </td> <td colspan="2" style="white-space: nowrap; border-bottom: Black 1.5pt solid; vertical-align: bottom; font-weight: bold; text-align: center">December 31, 2020</td><td style="white-space: nowrap; vertical-align: bottom; padding-bottom: 1.5pt; font-weight: bold; text-align: center"> </td><td style="white-space: nowrap; vertical-align: bottom; font-weight: bold; padding-bottom: 1.5pt; text-align: center"> </td> <td colspan="2" style="white-space: nowrap; border-bottom: Black 1.5pt solid; vertical-align: bottom; font-weight: bold; text-align: center">December 31, 2019</td><td style="white-space: nowrap; vertical-align: bottom; padding-bottom: 1.5pt; font-weight: bold; text-align: center"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; vertical-align: top"> </td><td> </td> <td> </td><td> </td> <td style="text-align: center"> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="vertical-align: top; width: 25%; text-align: left; text-indent: -9pt; padding-left: 9pt">Zhongcang Warehouse Co., Ltd.</td><td style="width: 1%"> </td> <td style="width: 34%; text-align: left">An investment of the VIE of the Company</td><td style="width: 1%"> </td> <td style="vertical-align: top; width: 15%; text-align: center">Storage fees</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: justify">$</td><td style="width: 9%; text-align: right">353,665</td><td style="width: 1%; text-align: justify"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: justify">$</td><td style="width: 9%; text-align: right">207,364</td><td style="width: 1%; text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td style="vertical-align: top; text-align: left; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt">Kashi Jinwang Art Purchase E-commerce Co., Ltd.</td><td style="padding-bottom: 1.5pt"> </td> <td style="text-align: left; padding-bottom: 1.5pt">100% owned by Nanjing Jinwang Art Purchase E-commerce Co., Ltd., a related party of the Company</td><td style="padding-bottom: 1.5pt"> </td> <td style="vertical-align: top; text-align: center; padding-bottom: 1.5pt">Marketing expenses</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">875,716</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">402</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 4pt; text-indent: -9pt; padding-left: 9pt; vertical-align: top">Total</td><td style="padding-bottom: 4pt"> </td> <td style="padding-bottom: 4pt"> </td><td style="padding-bottom: 4pt"> </td> <td style="text-align: center; padding-bottom: 4pt"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: justify">$</td><td style="border-bottom: Black 4pt double; text-align: right">1,229,381</td><td style="padding-bottom: 4pt; text-align: justify"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: justify">$</td><td style="border-bottom: Black 4pt double; text-align: right">207,766</td><td style="padding-bottom: 4pt; text-align: justify"> </td></tr> </table> b. Other payables – related parties consist of the following: Other payables – related parties are those nontrade payables arising from transactions between the Company and its related parties, such as payments paid on behalf of the Company. <table cellpadding="0" cellspacing="0" style="font: 11pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr> <td style="white-space: nowrap; vertical-align: top"> </td> <td style="white-space: nowrap; vertical-align: bottom; text-align: center"> </td> <td style="white-space: nowrap; vertical-align: bottom; border-bottom: black 1.5pt solid; text-align: center">Relationship</td> <td style="white-space: nowrap; vertical-align: bottom; text-align: center"> </td> <td style="white-space: nowrap; vertical-align: bottom; border-bottom: black 1.5pt solid; text-align: center">Nature</td> <td style="white-space: nowrap; vertical-align: bottom; text-align: center"> </td> <td colspan="2" style="white-space: nowrap; vertical-align: bottom; border-bottom: black 1.5pt solid; text-align: center">December 31, 2020</td> <td style="white-space: nowrap; vertical-align: bottom; text-align: center"> </td> <td style="white-space: nowrap; vertical-align: bottom; text-align: center"> </td> <td colspan="2" style="white-space: nowrap; vertical-align: bottom; border-bottom: black 1.5pt solid; text-align: center">December 31, 2019</td> <td style="white-space: nowrap; vertical-align: bottom; text-align: center"> </td></tr> <tr> <td style="vertical-align: top"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: top"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: top; text-align: center"> </td> <td style="vertical-align: bottom"> </td> <td colspan="2" style="vertical-align: bottom"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom"> </td> <td colspan="2" style="vertical-align: bottom"> </td> <td style="vertical-align: bottom"> </td></tr> <tr style="background-color: #CCEEFF"> <td style="vertical-align: top; width: 25%">Aimin Kong</td> <td style="vertical-align: bottom; width: 1%"> </td> <td style="vertical-align: top; width: 36%">Oriental Culture’s 11.98% beneficial shareholder</td> <td style="vertical-align: bottom; width: 1%"> </td> <td style="vertical-align: top; width: 15%; text-align: center">Advances for operational purposes</td> <td style="vertical-align: bottom; width: 1%"> </td> <td style="vertical-align: bottom; width: 1%; text-align: justify">$</td> <td style="vertical-align: bottom; width: 8%; text-align: right">-</td> <td style="vertical-align: bottom; width: 1%; text-align: justify"> </td> <td style="vertical-align: bottom; width: 1%"> </td> <td style="vertical-align: bottom; width: 1%; text-align: justify">$</td> <td style="vertical-align: bottom; width: 8%; text-align: right">51,896</td> <td style="vertical-align: bottom; width: 1%; text-align: justify"> </td></tr> <tr> <td style="vertical-align: top">HKFAEx Group Limited (“HKFAEx”)</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: top">a 18.57% shareholder of the Company</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: top; text-align: center">Advances for operational purposes</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom; text-align: justify"> </td> <td style="vertical-align: bottom; text-align: right">4,514</td> <td style="vertical-align: bottom; text-align: justify"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom; text-align: justify"> </td> <td style="vertical-align: bottom; text-align: right">4,493</td> <td style="vertical-align: bottom; text-align: justify"> </td></tr> <tr style="background-color: #CCEEFF"> <td style="vertical-align: top">Mun Wah Wan</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: top">Chairman of the board of directors of Oriental Culture and indirectly holding 18,57% shares of the Company through HKFAEx. </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: top; text-align: center">Advances for operational purposes</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom; border-bottom: black 1.5pt solid; text-align: justify"> </td> <td style="vertical-align: bottom; border-bottom: black 1.5pt solid; text-align: right">2,798</td> <td style="vertical-align: bottom; text-align: justify"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom; border-bottom: black 1.5pt solid; text-align: justify"> </td> <td style="vertical-align: bottom; border-bottom: black 1.5pt solid; text-align: right">4,929</td> <td style="vertical-align: bottom; text-align: justify"> </td></tr> <tr> <td style="padding-bottom: 4pt; vertical-align: top">Total</td> <td style="padding-bottom: 4pt; vertical-align: bottom"> </td> <td style="padding-bottom: 4pt; vertical-align: top"> </td> <td style="padding-bottom: 4pt; vertical-align: bottom"> </td> <td style="padding-bottom: 4pt; vertical-align: top; text-align: center"> </td> <td style="padding-bottom: 4pt; vertical-align: bottom"> </td> <td style="border-bottom: Black 4pt double; vertical-align: bottom; text-align: justify">$</td> <td style="border-bottom: Black 4pt double; vertical-align: bottom; text-align: right">7,312</td> <td style="padding-bottom: 4pt; vertical-align: bottom; text-align: justify"> </td> <td style="padding-bottom: 4pt; vertical-align: bottom"> </td> <td style="border-bottom: Black 4pt double; vertical-align: bottom; text-align: justify">$</td> <td style="border-bottom: Black 4pt double; vertical-align: bottom; text-align: right">61,318</td> <td style="padding-bottom: 4pt; vertical-align: bottom; text-align: justify"> </td></tr> </table> c. Net revenues – related parties consist of the following: <table cellpadding="0" cellspacing="0" style="font: 11pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr> <td style="white-space: nowrap; vertical-align: top"> </td> <td style="white-space: nowrap; vertical-align: bottom; text-align: center"> </td> <td style="white-space: nowrap; vertical-align: bottom; border-bottom: black 1.5pt solid; text-align: center">Relationship</td> <td style="white-space: nowrap; vertical-align: bottom; text-align: center"> </td> <td style="white-space: nowrap; vertical-align: bottom; border-bottom: black 1.5pt solid; text-align: center">Nature</td> <td style="white-space: nowrap; vertical-align: bottom; text-align: center"> </td> <td colspan="2" style="white-space: nowrap; vertical-align: bottom; border-bottom: black 1.5pt solid; text-align: center">For the Year Ended December 31, 2020</td> <td style="white-space: nowrap; vertical-align: bottom; text-align: center"> </td> <td style="white-space: nowrap; vertical-align: bottom; text-align: center"> </td> <td colspan="2" style="white-space: nowrap; vertical-align: bottom; border-bottom: black 1.5pt solid; text-align: center">For the Year Ended December 31, 2019</td> <td style="white-space: nowrap; vertical-align: bottom; text-align: center"> </td></tr> <tr> <td style="vertical-align: top"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: top"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: top; text-align: center"> </td> <td style="vertical-align: bottom"> </td> <td colspan="2" style="vertical-align: bottom"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom"> </td> <td colspan="2" style="vertical-align: bottom"> </td> <td style="vertical-align: bottom"> </td></tr> <tr style="background-color: #CCEEFF"> <td style="vertical-align: top; width: 25%">Nanjing Culture and Artwork Property Exchange Co., Ltd. ("Nanjing Culture”)</td> <td style="vertical-align: bottom; width: 1%"> </td> <td style="vertical-align: top; width: 36%">Mr. Huajun Gao, the general manager and director of Nanjing Culture, and Mr. Aimin Kong, the vice chairman of Nanjing Culture, each beneficially owns 11.98% of our shares</td> <td style="vertical-align: bottom; width: 1%"> </td> <td style="vertical-align: top; width: 15%; text-align: center">Technological service fee revenue</td> <td style="vertical-align: bottom; width: 1%"> </td> <td style="vertical-align: bottom; width: 1%; text-align: justify">$</td> <td style="vertical-align: bottom; width: 8%; text-align: right">41,571</td> <td style="vertical-align: bottom; width: 1%; text-align: justify"> </td> <td style="vertical-align: bottom; width: 1%"> </td> <td style="vertical-align: bottom; width: 1%; text-align: justify">$</td> <td style="vertical-align: bottom; width: 8%; text-align: right">20,425</td> <td style="vertical-align: bottom; width: 1%; text-align: justify"> </td></tr> <tr> <td style="vertical-align: top">Jinling Cultural Property Rights Exchange Co., Ltd.</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: top">Owned by our 11.98% beneficial shareholder, Huajun Gao</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: top; text-align: center">Technological service fee revenue</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom; text-align: justify"> </td> <td style="vertical-align: bottom; text-align: right">21,042</td> <td style="vertical-align: bottom; text-align: justify"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom; text-align: justify"> </td> <td style="vertical-align: bottom; text-align: right">20,425</td> <td style="vertical-align: bottom; text-align: justify"> </td></tr> <tr style="background-color: #CCEEFF"> <td style="vertical-align: top">Hunan Huaqiang Artwork Trading Center Co., Ltd.</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: top">49% owned by Jinling Cultural Property Exchange Co., Ltd. which is owned by Oriental Culture’s 11.98% beneficial shareholder, Huajun Gao</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: top; text-align: center">Technological service fee revenue</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom; text-align: justify"> </td> <td style="vertical-align: bottom; text-align: right">20,390</td> <td style="vertical-align: bottom; text-align: justify"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom; text-align: justify"> </td> <td style="vertical-align: bottom; text-align: right">20,425</td> <td style="vertical-align: bottom; text-align: justify"> </td></tr> <tr> <td style="vertical-align: top">Nanjing Jinwang Art Purchase E-commerce Co., Ltd.</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: top">Owned by Huajun Gao and Aimin Kong, each is a 11.98% shareholder of the Company</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: top; text-align: center">Technological service fee revenue</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom; text-align: justify"> </td> <td style="vertical-align: bottom; text-align: right">-</td> <td style="vertical-align: bottom; text-align: justify"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom; text-align: justify"> </td> <td style="vertical-align: bottom; text-align: right">49,020</td> <td style="vertical-align: bottom; text-align: justify"> </td></tr> <tr style="background-color: #CCEEFF"> <td style="vertical-align: top">Kashi Jinwang Art Purchase E-commerce Co., Ltd.</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: top">100% owned by Nanjing Jinwang Art Purchase E-commerce Co., Ltd.</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: top; text-align: center">Technological service fee revenue</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom; text-align: justify"> </td> <td style="vertical-align: bottom; text-align: right">130,169</td> <td style="vertical-align: bottom; text-align: justify"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom; text-align: justify"> </td> <td style="vertical-align: bottom; text-align: right">68,009</td> <td style="vertical-align: bottom; text-align: justify"> </td></tr> <tr> <td style="vertical-align: top">Nanjing Pusideng Information Technology Co., Ltd. (“Nanjing Pusideng”)</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: top">Mr. Yi Shao, chief executive officer and a member of the board of directors of the Company, was the 100% shareholder of Nanjing Pusideng as of June 14, 2019 and was the legal representative of Nanjing Pusideng as of November 20, 2019</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: top; text-align: center">Marketing service revenue</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom; border-bottom: black 1.5pt solid; text-align: justify"> </td> <td style="vertical-align: bottom; border-bottom: black 1.5pt solid; text-align: right">-</td> <td style="vertical-align: bottom; text-align: justify"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom; border-bottom: black 1.5pt solid; text-align: justify"> </td> <td style="vertical-align: bottom; border-bottom: black 1.5pt solid; text-align: right">68,082</td> <td style="vertical-align: bottom; text-align: justify"> </td></tr> <tr style="background-color: #CCEEFF"> <td style="padding-bottom: 4pt; vertical-align: top">Total</td> <td style="padding-bottom: 4pt; vertical-align: bottom"> </td> <td style="padding-bottom: 4pt; vertical-align: top"> </td> <td style="padding-bottom: 4pt; vertical-align: bottom"> </td> <td style="padding-bottom: 4pt; vertical-align: top; text-align: center"> </td> <td style="padding-bottom: 4pt; vertical-align: bottom"> </td> <td style="border-bottom: Black 4pt double; vertical-align: bottom; text-align: justify">$</td> <td style="border-bottom: Black 4pt double; vertical-align: bottom; text-align: right">213,172</td> <td style="padding-bottom: 4pt; vertical-align: bottom; text-align: justify"> </td> <td style="padding-bottom: 4pt; vertical-align: bottom"> </td> <td style="border-bottom: Black 4pt double; vertical-align: bottom; text-align: justify">$</td> <td style="border-bottom: Black 4pt double; vertical-align: bottom; text-align: right">246,386</td> <td style="padding-bottom: 4pt; vertical-align: bottom; text-align: justify"> </td></tr> </table> d. Cost of revenues – related party consists of the following: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="vertical-align: bottom; text-align: center"> </td><td style="vertical-align: bottom; font-weight: bold; padding-bottom: 1.5pt; text-align: center"> </td> <td style="border-bottom: Black 1.5pt solid; vertical-align: bottom; font-weight: bold; text-align: center">Relationship</td><td style="vertical-align: bottom; font-weight: bold; padding-bottom: 1.5pt; text-align: center"> </td> <td style="border-bottom: Black 1.5pt solid; vertical-align: bottom; font-weight: bold; text-align: center">Nature</td><td style="vertical-align: bottom; font-weight: bold; padding-bottom: 1.5pt; text-align: center"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; vertical-align: bottom; font-weight: bold; text-align: center">For the Year Ended December 31, 2020</td><td style="vertical-align: bottom; padding-bottom: 1.5pt; font-weight: bold; text-align: center"> </td><td style="vertical-align: bottom; font-weight: bold; padding-bottom: 1.5pt; text-align: center"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; vertical-align: bottom; font-weight: bold; text-align: center">For the Year Ended December 31, 2019</td><td style="vertical-align: bottom; padding-bottom: 1.5pt; font-weight: bold; text-align: center"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: center"> </td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: center"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center"> </td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center"> </td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="vertical-align: top; width: 25%; text-align: left">Zhongcang Warehouse Co., Ltd.</td><td style="width: 1%"> </td> <td style="width: 34%; text-align: left">The Company’s VIE owns equity in Zhongcang</td><td style="width: 1%"> </td> <td style="vertical-align: top; width: 15%; text-align: center">Storage fees</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: justify">$</td><td style="width: 9%; text-align: right">1,734,761</td><td style="width: 1%; text-align: justify"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: justify">$</td><td style="width: 9%; text-align: right">607,679</td><td style="width: 1%; text-align: justify"> </td></tr> </table> e. Selling and marketing expenses – related party consists of the following: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="vertical-align: bottom; text-align: center"> </td><td style="vertical-align: bottom; font-weight: bold; padding-bottom: 1.5pt; text-align: center"> </td> <td style="border-bottom: Black 1.5pt solid; vertical-align: bottom; font-weight: bold; text-align: center">Relationship</td><td style="vertical-align: bottom; font-weight: bold; padding-bottom: 1.5pt; text-align: center"> </td> <td style="border-bottom: Black 1.5pt solid; vertical-align: bottom; font-weight: bold; text-align: center">Nature</td><td style="vertical-align: bottom; font-weight: bold; padding-bottom: 1.5pt; text-align: center"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; vertical-align: bottom; font-weight: bold; text-align: center">For the Year Ended December 31, 2020</td><td style="vertical-align: bottom; padding-bottom: 1.5pt; font-weight: bold; text-align: center"> </td><td style="vertical-align: bottom; font-weight: bold; padding-bottom: 1.5pt; text-align: center"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; vertical-align: bottom; font-weight: bold; text-align: center">For the Year Ended December 31, 2019</td><td style="vertical-align: bottom; padding-bottom: 1.5pt; font-weight: bold; text-align: center"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: center"> </td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: center"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center"> </td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center"> </td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 25%; text-align: left; text-indent: -10pt; padding-left: 10pt">Kashi Jinwang Art Purchase E-commerce Co., Ltd.</td><td style="width: 1%"> </td> <td style="width: 34%; text-align: left">100% owned by Nanjing Jinwang Art Purchase E-commerce Co., Ltd.</td><td style="width: 1%"> </td> <td style="width: 15%; text-align: center">Online advertising expenses</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: justify">$</td><td style="width: 9%; text-align: right">1,762,652</td><td style="width: 1%; text-align: justify"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: justify">$</td><td style="width: 9%; text-align: right">124,857</td><td style="width: 1%; text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td> </td><td> </td> <td> </td><td> </td> <td> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td></tr> </table> In 2019, the Company entered into advertising contract with Kashi Jinwang Art Purchase E-commerce Co., Ltd. pursuant to which the Company would use advertising space on Jinwang’s website from January 1, 2019 to December 31, 2021. The Company was charged a yearly advertising fee of approximately $0.18 million per year adjustable by actual usage, which was approximately 1.7% of the Company’s initial listing value of collectible or artwork at the time when the contract was entered. On May 1, 2020, the contract between the Company and Kashi Jinwang Art Purchase E-commerce Co., Ltd. was amended and the monthly advertising fee was fixed at 1.5% of the initial listing value of collectible or artwork from May 1, 2020 to December 31, 2021. The contract was further amended on June 25, 2020 where the fee will be 2.25% of the initial listing value of collectibles or artwork from July 1, 2020 to December 31, 2020, then return back to 1.5% from January 1, 2021 to December 31, 2021. The increase of the rates for the second half of 2020 was as a result of the Company’s demand for more advertising space and online time on the Jingwan website as the Company aggressively advertised to increase its revenues in the second half of the year after seeing the significant decrease of its revenue in the first half of 2020 due to COVID-19. f. During the year ended December 31, 2019, the Company purchased inventory management software from its related party, Nanjing Pusideng, for approximately $72,000. Mr. Yi Shao, chief executive officer and a member of the board of directors of the Company was the 100% shareholder of Nanjing Pusideng as of June 14, 2019 and was the legal representative of Nanjing Pusideng as of November 20, 2019. g. Kashi Longrui entered into a Management Consulting Advisory Agreement with Mr. Aimin Kong for an annual service fee of RMB 780,000 (approximately $111,000) on January 1, 2019. The consulting agreement had a term of one year and the services include business, management and strategic planning. Mr. Kong is the sole shareholder and director of Oriental Culture Investment Development LTD which is a 11.98% shareholder of the Company. Kashi Dongfang entered into a Technology Advisory Engagement Agreement with Mr. Huajun Gao and engaged Mr. Gao as the chief technology advisor for an annual service fee of RMB 1,000,000 (approximately $143,000) on January 1, 2019. The advisory agreement had a term of one year and the services include technology review and verification, technology renovation and improvement, technology security and management, and technology advice and consulting. Mr. Gao is the sole shareholder and director of Oriental Culture Investment Communication LTD which is a 11.98% shareholder of the Company. The Company incurred total of approximately $258,000 (RMB 1,780,000) of expenses for the above agreements during the year ended December 31, 2019 which was included in general and administrative expenses. There were no such expenses during the year ended December 31, 2020 as both agreements expired on December 31, 2019 and were not renewed. h. During the years ended December 31, 2020 and 2019, HKDAEx paid approximately $54,000 and $18,000, respectively, to HKFAEx, a major shareholder of the Company for accounting and business administration services. i. The Company entered into a non-cancellable Office Premises Use Contract with Nanjing Culture and Artwork Property Exchange Co., Ltd. which is controlled by Huajun Gao and Aimin Kong, each is a 11.98% beneficial shareholder of the Company, for an office from January 1, 2020 to December 31, 2020 with a monthly rental of approximately $13,000 including VAT taxes. The Company renewed the lease under the same terms from January 1, 2021 to December 31, 2021. Total rental expense for the years ended December 31, 2020 and 2019 amounted to $147,713 and $151,578, respectively.

180000

1.7%

0.015

The contract was further amended on June 25, 2020 where the fee will be 2.25% of the initial listing value of collectibles or artwork from July 1, 2020 to December 31, 2020, then return back to 1.5% from January 1, 2021 to December 31, 2021. The increase of the rates for the second half of 2020 was as a result of the Company’s demand for more advertising space and online time on the Jingwan website as the Company aggressively advertised to increase its revenues in the second half of the year after seeing the significant decrease of its revenue in the first half of 2020 due to COVID-19.

72000

1.00

Kashi Longrui entered into a Management Consulting Advisory Agreement with Mr. Aimin Kong for an annual service fee of RMB 780,000 (approximately $111,000) on January 1, 2019. The consulting agreement had a term of one year and the services include business, management and strategic planning. Mr. Kong is the sole shareholder and director of Oriental Culture Investment Development LTD which is a 11.98% shareholder of the Company.

Kashi Dongfang entered into a Technology Advisory Engagement Agreement with Mr. Huajun Gao and engaged Mr. Gao as the chief technology advisor for an annual service fee of RMB 1,000,000 (approximately $143,000) on January 1, 2019. The advisory agreement had a term of one year and the services include technology review and verification, technology renovation and improvement, technology security and management, and technology advice and consulting. Mr. Gao is the sole shareholder and director of Oriental Culture Investment Communication LTD which is a 11.98% shareholder of the Company.

258000

1780000

54000

18000

0.1198 13000 147713 151578

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="white-space: nowrap; vertical-align: top; text-align: left"> </td><td style="white-space: nowrap; vertical-align: bottom; font-weight: bold; padding-bottom: 1.5pt; text-align: center"> </td> <td style="white-space: nowrap; border-bottom: Black 1.5pt solid; vertical-align: bottom; font-weight: bold; text-align: center">Relationship</td><td style="white-space: nowrap; vertical-align: bottom; font-weight: bold; padding-bottom: 1.5pt; text-align: center"> </td> <td style="border-bottom: Black 1.5pt solid; white-space: nowrap; vertical-align: bottom; font-weight: bold; text-align: center">Nature</td><td style="white-space: nowrap; vertical-align: bottom; font-weight: bold; padding-bottom: 1.5pt; text-align: center"> </td> <td colspan="2" style="white-space: nowrap; border-bottom: Black 1.5pt solid; vertical-align: bottom; font-weight: bold; text-align: center">December 31, 2020</td><td style="white-space: nowrap; vertical-align: bottom; padding-bottom: 1.5pt; font-weight: bold; text-align: center"> </td><td style="white-space: nowrap; vertical-align: bottom; font-weight: bold; padding-bottom: 1.5pt; text-align: center"> </td> <td colspan="2" style="white-space: nowrap; border-bottom: Black 1.5pt solid; vertical-align: bottom; font-weight: bold; text-align: center">December 31, 2019</td><td style="white-space: nowrap; vertical-align: bottom; padding-bottom: 1.5pt; font-weight: bold; text-align: center"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; vertical-align: top"> </td><td> </td> <td> </td><td> </td> <td style="text-align: center"> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="vertical-align: top; width: 25%; text-align: left; text-indent: -9pt; padding-left: 9pt">Zhongcang Warehouse Co., Ltd.</td><td style="width: 1%"> </td> <td style="width: 34%; text-align: left">An investment of the VIE of the Company</td><td style="width: 1%"> </td> <td style="vertical-align: top; width: 15%; text-align: center">Storage fees</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: justify">$</td><td style="width: 9%; text-align: right">353,665</td><td style="width: 1%; text-align: justify"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: justify">$</td><td style="width: 9%; text-align: right">207,364</td><td style="width: 1%; text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td style="vertical-align: top; text-align: left; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt">Kashi Jinwang Art Purchase E-commerce Co., Ltd.</td><td style="padding-bottom: 1.5pt"> </td> <td style="text-align: left; padding-bottom: 1.5pt">100% owned by Nanjing Jinwang Art Purchase E-commerce Co., Ltd., a related party of the Company</td><td style="padding-bottom: 1.5pt"> </td> <td style="vertical-align: top; text-align: center; padding-bottom: 1.5pt">Marketing expenses</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">875,716</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">402</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 4pt; text-indent: -9pt; padding-left: 9pt; vertical-align: top">Total</td><td style="padding-bottom: 4pt"> </td> <td style="padding-bottom: 4pt"> </td><td style="padding-bottom: 4pt"> </td> <td style="text-align: center; padding-bottom: 4pt"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: justify">$</td><td style="border-bottom: Black 4pt double; text-align: right">1,229,381</td><td style="padding-bottom: 4pt; text-align: justify"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: justify">$</td><td style="border-bottom: Black 4pt double; text-align: right">207,766</td><td style="padding-bottom: 4pt; text-align: justify"> </td></tr> </table>

An investment of the VIE of the Company Storage fees

353665

207364

100% owned by Nanjing Jinwang Art Purchase E-commerce Co., Ltd., a related party of the Company Marketing expenses

875716

402

1229381

207766

51896

a 18.57% shareholder of the Company Advances for operational purposes

4514

4493

Chairman of the board of directors of Oriental Culture and indirectly holding 18,57% shares of the Company through HKFAEx. Advances for operational purposes

2798

4929

<table cellpadding="0" cellspacing="0" style="font: 11pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr> <td style="white-space: nowrap; vertical-align: top"> </td> <td style="white-space: nowrap; vertical-align: bottom; text-align: center"> </td> <td style="white-space: nowrap; vertical-align: bottom; border-bottom: black 1.5pt solid; text-align: center">Relationship</td> <td style="white-space: nowrap; vertical-align: bottom; text-align: center"> </td> <td style="white-space: nowrap; vertical-align: bottom; border-bottom: black 1.5pt solid; text-align: center">Nature</td> <td style="white-space: nowrap; vertical-align: bottom; text-align: center"> </td> <td colspan="2" style="white-space: nowrap; vertical-align: bottom; border-bottom: black 1.5pt solid; text-align: center">For the Year Ended December 31, 2020</td> <td style="white-space: nowrap; vertical-align: bottom; text-align: center"> </td> <td style="white-space: nowrap; vertical-align: bottom; text-align: center"> </td> <td colspan="2" style="white-space: nowrap; vertical-align: bottom; border-bottom: black 1.5pt solid; text-align: center">For the Year Ended December 31, 2019</td> <td style="white-space: nowrap; vertical-align: bottom; text-align: center"> </td></tr> <tr> <td style="vertical-align: top"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: top"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: top; text-align: center"> </td> <td style="vertical-align: bottom"> </td> <td colspan="2" style="vertical-align: bottom"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom"> </td> <td colspan="2" style="vertical-align: bottom"> </td> <td style="vertical-align: bottom"> </td></tr> <tr style="background-color: #CCEEFF"> <td style="vertical-align: top; width: 25%">Nanjing Culture and Artwork Property Exchange Co., Ltd. ("Nanjing Culture”)</td> <td style="vertical-align: bottom; width: 1%"> </td> <td style="vertical-align: top; width: 36%">Mr. Huajun Gao, the general manager and director of Nanjing Culture, and Mr. Aimin Kong, the vice chairman of Nanjing Culture, each beneficially owns 11.98% of our shares</td> <td style="vertical-align: bottom; width: 1%"> </td> <td style="vertical-align: top; width: 15%; text-align: center">Technological service fee revenue</td> <td style="vertical-align: bottom; width: 1%"> </td> <td style="vertical-align: bottom; width: 1%; text-align: justify">$</td> <td style="vertical-align: bottom; width: 8%; text-align: right">41,571</td> <td style="vertical-align: bottom; width: 1%; text-align: justify"> </td> <td style="vertical-align: bottom; width: 1%"> </td> <td style="vertical-align: bottom; width: 1%; text-align: justify">$</td> <td style="vertical-align: bottom; width: 8%; text-align: right">20,425</td> <td style="vertical-align: bottom; width: 1%; text-align: justify"> </td></tr> <tr> <td style="vertical-align: top">Jinling Cultural Property Rights Exchange Co., Ltd.</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: top">Owned by our 11.98% beneficial shareholder, Huajun Gao</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: top; text-align: center">Technological service fee revenue</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom; text-align: justify"> </td> <td style="vertical-align: bottom; text-align: right">21,042</td> <td style="vertical-align: bottom; text-align: justify"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom; text-align: justify"> </td> <td style="vertical-align: bottom; text-align: right">20,425</td> <td style="vertical-align: bottom; text-align: justify"> </td></tr> <tr style="background-color: #CCEEFF"> <td style="vertical-align: top">Hunan Huaqiang Artwork Trading Center Co., Ltd.</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: top">49% owned by Jinling Cultural Property Exchange Co., Ltd. which is owned by Oriental Culture’s 11.98% beneficial shareholder, Huajun Gao</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: top; text-align: center">Technological service fee revenue</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom; text-align: justify"> </td> <td style="vertical-align: bottom; text-align: right">20,390</td> <td style="vertical-align: bottom; text-align: justify"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom; text-align: justify"> </td> <td style="vertical-align: bottom; text-align: right">20,425</td> <td style="vertical-align: bottom; text-align: justify"> </td></tr> <tr> <td style="vertical-align: top">Nanjing Jinwang Art Purchase E-commerce Co., Ltd.</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: top">Owned by Huajun Gao and Aimin Kong, each is a 11.98% shareholder of the Company</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: top; text-align: center">Technological service fee revenue</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom; text-align: justify"> </td> <td style="vertical-align: bottom; text-align: right">-</td> <td style="vertical-align: bottom; text-align: justify"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom; text-align: justify"> </td> <td style="vertical-align: bottom; text-align: right">49,020</td> <td style="vertical-align: bottom; text-align: justify"> </td></tr> <tr style="background-color: #CCEEFF"> <td style="vertical-align: top">Kashi Jinwang Art Purchase E-commerce Co., Ltd.</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: top">100% owned by Nanjing Jinwang Art Purchase E-commerce Co., Ltd.</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: top; text-align: center">Technological service fee revenue</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom; text-align: justify"> </td> <td style="vertical-align: bottom; text-align: right">130,169</td> <td style="vertical-align: bottom; text-align: justify"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom; text-align: justify"> </td> <td style="vertical-align: bottom; text-align: right">68,009</td> <td style="vertical-align: bottom; text-align: justify"> </td></tr> <tr> <td style="vertical-align: top">Nanjing Pusideng Information Technology Co., Ltd. (“Nanjing Pusideng”)</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: top">Mr. Yi Shao, chief executive officer and a member of the board of directors of the Company, was the 100% shareholder of Nanjing Pusideng as of June 14, 2019 and was the legal representative of Nanjing Pusideng as of November 20, 2019</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: top; text-align: center">Marketing service revenue</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom; border-bottom: black 1.5pt solid; text-align: justify"> </td> <td style="vertical-align: bottom; border-bottom: black 1.5pt solid; text-align: right">-</td> <td style="vertical-align: bottom; text-align: justify"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom; border-bottom: black 1.5pt solid; text-align: justify"> </td> <td style="vertical-align: bottom; border-bottom: black 1.5pt solid; text-align: right">68,082</td> <td style="vertical-align: bottom; text-align: justify"> </td></tr> <tr style="background-color: #CCEEFF"> <td style="padding-bottom: 4pt; vertical-align: top">Total</td> <td style="padding-bottom: 4pt; vertical-align: bottom"> </td> <td style="padding-bottom: 4pt; vertical-align: top"> </td> <td style="padding-bottom: 4pt; vertical-align: bottom"> </td> <td style="padding-bottom: 4pt; vertical-align: top; text-align: center"> </td> <td style="padding-bottom: 4pt; vertical-align: bottom"> </td> <td style="border-bottom: Black 4pt double; vertical-align: bottom; text-align: justify">$</td> <td style="border-bottom: Black 4pt double; vertical-align: bottom; text-align: right">213,172</td> <td style="padding-bottom: 4pt; vertical-align: bottom; text-align: justify"> </td> <td style="padding-bottom: 4pt; vertical-align: bottom"> </td> <td style="border-bottom: Black 4pt double; vertical-align: bottom; text-align: justify">$</td> <td style="border-bottom: Black 4pt double; vertical-align: bottom; text-align: right">246,386</td> <td style="padding-bottom: 4pt; vertical-align: bottom; text-align: justify"> </td></tr> </table> Mr. Huajun Gao, the general manager and director of Nanjing Culture, and Mr. Aimin Kong, the vice chairman of Nanjing Culture, each beneficially owns 11.98% of our shares Technological service fee revenue 41571 20425 Owned by our 11.98% beneficial shareholder, Huajun Gao Technological service fee revenue 21042 20425 49% owned by Jinling Cultural Property Exchange Co., Ltd. which is owned by Oriental Culture's 11.98% beneficial shareholder, Huajun Gao Technological service fee revenue 20390 20425 Owned by Huajun Gao and Aimin Kong, each is a 11.98% shareholder of the Company Technological service fee revenue 49020 100% owned by Nanjing Jinwang Art Purchase E-commerce Co., Ltd. Technological service fee revenue 130169 68009 Mr. Yi Shao, chief executive officer and a member of the board of directors of the Company, was the 100% shareholder of Nanjing Pusideng as of June 14, 2019 and was the legal representative of Nanjing Pusideng as of November 20, 2019 Marketing service revenue 68082 <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="vertical-align: bottom; text-align: center"> </td><td style="vertical-align: bottom; font-weight: bold; padding-bottom: 1.5pt; text-align: center"> </td> <td style="border-bottom: Black 1.5pt solid; vertical-align: bottom; font-weight: bold; text-align: center">Relationship</td><td style="vertical-align: bottom; font-weight: bold; padding-bottom: 1.5pt; text-align: center"> </td> <td style="border-bottom: Black 1.5pt solid; vertical-align: bottom; font-weight: bold; text-align: center">Nature</td><td style="vertical-align: bottom; font-weight: bold; padding-bottom: 1.5pt; text-align: center"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; vertical-align: bottom; font-weight: bold; text-align: center">For the Year Ended December 31, 2020</td><td style="vertical-align: bottom; padding-bottom: 1.5pt; font-weight: bold; text-align: center"> </td><td style="vertical-align: bottom; font-weight: bold; padding-bottom: 1.5pt; text-align: center"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; vertical-align: bottom; font-weight: bold; text-align: center">For the Year Ended December 31, 2019</td><td style="vertical-align: bottom; padding-bottom: 1.5pt; font-weight: bold; text-align: center"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: center"> </td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: center"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center"> </td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center"> </td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="vertical-align: top; width: 25%; text-align: left">Zhongcang Warehouse Co., Ltd.</td><td style="width: 1%"> </td> <td style="width: 34%; text-align: left">The Company’s VIE owns equity in Zhongcang</td><td style="width: 1%"> </td> <td style="vertical-align: top; width: 15%; text-align: center">Storage fees</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: justify">$</td><td style="width: 9%; text-align: right">1,734,761</td><td style="width: 1%; text-align: justify"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: justify">$</td><td style="width: 9%; text-align: right">607,679</td><td style="width: 1%; text-align: justify"> </td></tr> </table> The Company's VIE owns equity in Zhongcang Storage fees 1734761 607679 <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="vertical-align: bottom; text-align: center"> </td><td style="vertical-align: bottom; font-weight: bold; padding-bottom: 1.5pt; text-align: center"> </td> <td style="border-bottom: Black 1.5pt solid; vertical-align: bottom; font-weight: bold; text-align: center">Relationship</td><td style="vertical-align: bottom; font-weight: bold; padding-bottom: 1.5pt; text-align: center"> </td> <td style="border-bottom: Black 1.5pt solid; vertical-align: bottom; font-weight: bold; text-align: center">Nature</td><td style="vertical-align: bottom; font-weight: bold; padding-bottom: 1.5pt; text-align: center"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; vertical-align: bottom; font-weight: bold; text-align: center">For the Year Ended December 31, 2020</td><td style="vertical-align: bottom; padding-bottom: 1.5pt; font-weight: bold; text-align: center"> </td><td style="vertical-align: bottom; font-weight: bold; padding-bottom: 1.5pt; text-align: center"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; vertical-align: bottom; font-weight: bold; text-align: center">For the Year Ended December 31, 2019</td><td style="vertical-align: bottom; padding-bottom: 1.5pt; font-weight: bold; text-align: center"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: center"> </td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: center"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center"> </td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center"> </td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 25%; text-align: left; text-indent: -10pt; padding-left: 10pt">Kashi Jinwang Art Purchase E-commerce Co., Ltd.</td><td style="width: 1%"> </td> <td style="width: 34%; text-align: left">100% owned by Nanjing Jinwang Art Purchase E-commerce Co., Ltd.</td><td style="width: 1%"> </td> <td style="width: 15%; text-align: center">Online advertising expenses</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: justify">$</td><td style="width: 9%; text-align: right">1,762,652</td><td style="width: 1%; text-align: justify"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: justify">$</td><td style="width: 9%; text-align: right">124,857</td><td style="width: 1%; text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td> </td><td> </td> <td> </td><td> </td> <td> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td></tr> </table> 100% owned by Nanjing Jinwang Art Purchase E-commerce Co., Ltd. Online advertising expenses 1762652 124857

Note 14 – Equity Ordinary shares Oriental Culture was established under the laws of Cayman Islands on November 29, 2018. The amended number of authorized preferred shares is 100,000,000 with a par value of $.00005 and 900,000,000 ordinary shares with a par value of $0.00005. On November 8, 2019, the shareholders of the Company adopted the Second Amended and Restated Articles of Association to effect a 2 for 1 forward share split of the total authorized and issued and outstanding shares of the Company. The financial statements and all per share numbers have been retroactively adjusted to reflect the 2 for 1 forward split. On November 8, 2019, all existing shareholders agreed to surrender to the Company as treasury shares, 12.5% of the then outstanding ordinary shares (3,100,000 ordinary shares) for no consideration. On May 28, 2020, all existing shareholders of the Company agreed to surrender an additional 6,510,000 ordinary shares, or 30% of the then outstanding ordinary shares, at no consideration. The surrendered shares have been reflected as treasury shares. On December 1, 2020, the Company completed its IPO of 5,065,000 ordinary shares and 59,400 over-allotment shares at a public offering price of $4.00 per share, resulting in net proceeds to the Company of approximately $17.3 million after deducting underwriting commission and offering expenses. In addition, $600,000 of the proceeds were put into an escrow account to cover any potential claims and should be released to the Company after 2 years. Warrants In connection with IPO, the Company issued warrants to purchase 409,952 ordinary shares to the underwriters. The underwriters’ warrants have a five-year term and an exercise price of $5.00 per share. On December 17, 2020, the underwriters exercised all the warrants on a cashless basis, resulting in the issuance of 130,312 ordinary shares. As of December 31, 2020, there were no underwriter’s warrants outstanding. Restricted net assets The Company’s ability to pay dividends is primarily dependent on the Company receiving distributions from its subsidiaries and VIEs. Relevant PRC statutory laws and regulations permit payments of dividends by Oriental Culture, the WFOE, its VIE Jiangsu Yanggu, and Jiangsu Yanggu’s subsidiaries Nanjing Yanyu, Nanjing Yanqing, Kashi Longrui, and Kashi Dongfang (collectively “Jiangsu Yanggu PRC entities”) only out of their retained earnings, if any, as determined in accordance with PRC accounting standards and regulations and after allocations to the required statutory reserves. The results of operations reflected in the accompanying consolidated financial statements prepared in accordance with U.S. GAAP differ from those reflected in the statutory financial statements of Jiangsu Yanggu and its PRC entities. Oriental Culture WFOE and Jiangsu Yanggu and its subsidiaries as PRC entities are required to set aside at least 10% of their after-tax profits each year, if any, to fund certain statutory reserve funds until such reserve funds reach 50% of their registered capital. In addition, Oriental Culture WFOE and Jiangsu Yanggu and its subsidiaries as entities may allocate a portion of their after-tax profits based on PRC accounting standards to an enterprise expansion fund and staff bonus and welfare fund at its discretion. The statutory reserve funds and the discretionary funds are not distributable as cash dividends. Remittance of dividends by a wholly foreign-owned company out of China is subject to examination by the banks designated by the State Administration of Foreign Exchange (“SAFE”). As a result of the foregoing restrictions, Oriental Culture WFOE and Jiangsu Yanggu and its subsidiaries as PRC entities are restricted in their ability to transfer their net assets to the Company. Foreign exchange and other regulations in the PRC may further restrict Oriental Culture WFOE and Jiangsu Yanggu and its subsidiaries as PRC entities from transferring funds to the Company in the form of dividends, loans and advances. As of December 31, 2020, amounts restricted are the net assets of Oriental Culture WFOE and Jiangsu Yanggu and its subsidiaries as PRC entities, which amounted to approximately $20,231,000. On May 7, 2019, the Company entered into a Sale and Purchase Agreement to acquire all outstanding equity interests of HKDAEx Limited (“HKDAEx”), which provides the Company with an online trading platform for certain commodity products in Hong Kong. Pursuant to the terms of the Sale and Purchase Agreement, the sole shareholder of HKDAEx exchanged its equity interest in HKDAEx for 4,200,000 ordinary shares (post forward share split and surrender) of Oriental Culture. On May 9, 2019, the Company acquired all the outstanding equity interest of HKDAEx.

the shareholders of the Company adopted the Second Amended and Restated Articles of Association to effect a 2 for 1 forward share split of the total authorized and issued and outstanding shares of the Company. The financial statements and all per share numbers have been retroactively adjusted to reflect the 2 for 1

0.125

3100000

6510000 0.30 5065000 59400 4.00

17300000

600000 P2Y 409952

5.00

130312 Oriental Culture WFOE and Jiangsu Yanggu and its subsidiaries as PRC entities are required to set aside at least 10% of their after-tax profits each year, if any, to fund certain statutory reserve funds until such reserve funds reach 50% of their registered capital.

20231000

4200000

Note 15 – Commitments and Contingencies Contingencies From time to time, the Company may be subject to certain legal proceedings, claims and disputes that arise in the ordinary course of business. Amounts accrued, as well as the total amount of reasonably possible losses with respect to such matters, individually and in the aggregate, are not deemed to be material to the consolidated financial statements. Variable interest entity structure In the opinion of management, (i) the corporate structure of the Company is in compliance with existing PRC laws and regulations; (ii) the Contractual Arrangements are valid and binding, and do not result in any violation of PRC laws or regulations currently in effect; and (iii) the business operations of the WFOE and the VIEs are in compliance with existing PRC laws and regulations in all material respects. However, there are substantial uncertainties regarding the interpretation and application of current and future PRC laws and regulations. Accordingly, the Company cannot be assured that PRC regulatory authorities will not ultimately take a contrary view to the foregoing opinion of the management. If the current corporate structure of the Company or the Contractual Arrangements are found to be in violation of any existing or future PRC laws and regulations, the Company may be required to restructure its corporate structure and operations in the PRC to comply with changing and new PRC laws and regulations. In the opinion of management, the likelihood of loss in respect of the Company’s current corporate structure or the Contractual Arrangements is remote based on current facts and circumstances. The Company has not provided for deferred income tax liabilities on the PRC entities’ undistributed earnings of as of December 31, 2020 and 2019, respectively, because the Company controls the timing of the undistributed earnings and it is probable that such earnings will not be distributed. The Company plans to reinvest those earnings in the PRC indefinitely in the foreseeable future. Lease commitments The Company has three non-cancellable operating lease agreements for three office units. These office units have lease terms expiring in December 2021, June 2021 and July 2022 with a monthly rental of approximately $14,000, $300 and $1,900, respectively. The Company’s commitments for minimum lease payment under these operating leases as of December 31, 2020 are as follows: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid; font-weight: bold">Twelve months ending December 31,</td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Minimum lease payment</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 88%; text-align: justify">2021</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: justify">$</td><td style="width: 9%; text-align: right">190,650</td><td style="width: 1%; text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify; padding-bottom: 1.5pt">2022</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">14,513</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 4pt">Total minimum payments required</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: justify">$</td><td style="border-bottom: Black 4pt double; text-align: right">205,163</td><td style="padding-bottom: 4pt; text-align: justify"> </td></tr> </table> Rent expense for the years ended December 31, 2020 and 2019 was $182,253 and $209,761, respectively.  Coronavirus (“COVID-19”) Beginning in late 2019, the COVID-19 (coronavirus) pandemic surfaced in Wuhan, China. The pandemic quickly spread to many provinces, autonomous regions, and cities all over China and eventually throughout the world. To prevent and control the spread of the pandemic, the Chinese governments issued administrative orders to impose travel and public gathering restrictions as well as to work from home and self-quarantine. At the same time, COVID-19 has caused a decrease in consumer demand for goods and services in the market. In addition, the circulation of production factors such as raw materials and labor has been hindered during the outbreak of the pandemic. Normal business activities such as logistics, production, sales, travel and business meetings have been severely disrupted due to the pandemic and restrictions imposed by the government. Enterprises have stopped production or reduced production, and social and economic activities have been adversely affected during the pandemic. Our offices located in Hong Kong and China were closed for the Lunar New Year Holiday Break of 2020, and remained closed as a result of the outbreak until early March 2020. All those offices are now open and resumed ordinary operations. Our business, financial condition, and results of operations have been adversely affected by COVID-19 as our net revenues and net income decreased during the first half of 2020. Starting in July 2020, our revenues and net income recovered as individuals and entities resumed their business activities which were delayed or postponed due to COVID-19. However, the results of operations for 2021 are still uncertain and may be adversely impacted by any further outbreak or resurgence of the COVID-19 pandemic. The potential impact to our results of operations will also depend on future developments and new information that may emerge regarding COVID-19 and the actions taken by governmental authorities and other entities to contain COVID-19 and/or mitigate its impact, almost all of which are beyond our control. Due to the significant uncertainties surrounding the pandemic and actions that might be taken by governmental authorities, the extent of the future business disruption and the related financial impact on our business cannot be reasonably estimated at this time.

14000

300

1900

182253

209761

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid; font-weight: bold">Twelve months ending December 31,</td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Minimum lease payment</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 88%; text-align: justify">2021</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: justify">$</td><td style="width: 9%; text-align: right">190,650</td><td style="width: 1%; text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify; padding-bottom: 1.5pt">2022</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">14,513</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 4pt">Total minimum payments required</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: justify">$</td><td style="border-bottom: Black 4pt double; text-align: right">205,163</td><td style="padding-bottom: 4pt; text-align: justify"> </td></tr> </table>

190650

14513

205163

Note 16 – Subsequent Events On January 28, 2021, Oriental Culture WFOE entered into an Amended and Restated Equity Pledge Agreement, an Amended and Restated Equity Option Agreement, and an Amended and Restated Voting Rights Proxy and Financial Supporting Agreement (“Amended and Restated VIE Agreements”) with Jiangsu Yanggu and all shareholders of Jiangsu Yanggu. The Amended and Restated VIE Agreements were made principally to reflect a change of the share ownership of Jiangsu Yanggu as a result of the transfer by Mr. Weipeng Liang of his 10% equity interest in Jiangsu Yanggu to Ms. Yuanyuan Xiao on January 28, 2021. Except for the change of the share ownership of Jiangsu Yanggu due to such equity transfer, there are no other changes to the terms of the Original VIE Agreements.

0.10

Note 17 –Financial information of the parent company The Company performed a test on the restricted net assets of its consolidated subsidiaries in accordance with the Securities and Exchange Commission Regulation S-X Rule 5-04 and concluded that it was applicable for the Company to disclose the financial statements for the parent company. The Company’s subsidiaries and VIEs did not pay any dividends for the periods presented. For the purpose of presenting parent only financial information, the Company records its investment in its subsidiaries and VIEs under the equity method of accounting. Such investments are presented on the separate condensed balance sheets of the Company as “Investment in subsidiaries and VIEs” and the income of the subsidiaries and VIEs is presented as “share of income of subsidiaries and VIEs”. Certain information and footnote disclosures generally included in financial statements prepared in accordance with U.S. GAAP are not required. The Company does not have significant capital and other commitments, long-term obligations, or guarantees as of December 31, 2020 and 2019. ORIENTAL CULTURE HOLDING LTD. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS PARENT COMPANY BALANCE SHEETS (UNAUDITED) <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="white-space: nowrap"> </td><td style="white-space: nowrap; font-weight: bold"> </td> <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center">December 31,</td><td style="white-space: nowrap; font-weight: bold"> </td><td style="white-space: nowrap; font-weight: bold"> </td> <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center">December 31,</td><td style="white-space: nowrap; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap"> </td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="white-space: nowrap; border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2020</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold"> </td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="white-space: nowrap; border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2019</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center">ASSETS</td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td></tr> <tr style="vertical-align: bottom"> <td>CURRENT ASSETS</td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 76%; text-align: justify; padding-bottom: 1.5pt; padding-left: 10pt">Cash and cash equivalents</td><td style="width: 1%; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: justify">$</td><td style="border-bottom: Black 1.5pt solid; width: 9%; text-align: right">16,613,029</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: justify"> </td><td style="width: 1%; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: justify">$</td><td style="border-bottom: Black 1.5pt solid; width: 9%; text-align: right">-</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">OTHER ASSETS</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td style="padding-left: 10pt">Escrow</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">600,000</td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">-</td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1.5pt; padding-left: 10pt">Investment in subsidiaries and VIEs</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">20,761,600</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">13,099,272</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify; padding-bottom: 1.5pt; padding-left: 0.25in">Total other assets</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">21,361,600</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">13,099,272</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify; padding-bottom: 4pt; padding-left: 20pt">Total assets</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: justify">$</td><td style="border-bottom: Black 4pt double; text-align: right">37,974,629</td><td style="padding-bottom: 4pt; text-align: justify"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: justify">$</td><td style="border-bottom: Black 4pt double; text-align: right">13,099,272</td><td style="padding-bottom: 4pt; text-align: justify"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: center">LIABILITIES AND SHAREHOLDERS’ EQUITY</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify">CURRENT LIABILITIES</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 0.125in; text-align: justify">Accounts payable</td><td> </td> <td style="text-align: justify">$</td><td style="text-align: right">2,960,000</td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify">$</td><td style="text-align: right">-</td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td style="padding-left: 0.125in; text-align: justify">Other payables and accrued liabilities</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">50,918</td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">-</td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 0.125in; text-align: justify; padding-bottom: 1.5pt">Other payables - intercompany</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,394,465</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td style="padding-left: 0.25in; text-align: justify; padding-bottom: 1.5pt">Total current liabilities</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">4,405,383</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td style="padding-bottom: 1.5pt">LIABILITIES</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">4,405,383</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify">COMMITMENTS AND CONTINGENCIES</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify">SHAREHOLDERS’ EQUITY</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-indent: -10pt; padding-left: 20pt">Preferred shares, $0.00005 par value, 100,000,000 shares authorized, no shares issued or outstanding as of December 31, 2020 and 2019, respectively</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">-</td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">-</td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-indent: -10pt; padding-left: 20pt">Ordinary shares, $0.00005 par value, 900,000,000 shares authorized, 30,054,712 and 24,800,000 shares issued*** and 20,444,712 and 15,190,000 shares outstanding as of December 31, 2020 and 2019, respectively*</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">1,503</td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">1,240</td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-indent: -10pt; padding-left: 20pt">Treasury shares, at cost, 9,610,000 shares as of December 31, 2020 and 2019 **</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">(481</td><td style="text-align: justify">)</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">(481</td><td style="text-align: justify">)</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify; padding-left: 10pt">Additional paid-in capital</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">18,884,992</td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">1,608,045</td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-left: 10pt">Statutory reserves</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">112,347</td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">112,347</td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify; padding-left: 10pt">Retained earnings</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">13,647,770</td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">11,599,663</td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1.5pt; padding-left: 10pt">Accumulated other comprehensive income (loss)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">923,115</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(221,542</td><td style="padding-bottom: 1.5pt; text-align: justify">)</td></tr> <tr style="vertical-align: bottom; "> <td style="padding-bottom: 1.5pt; text-align: justify; padding-left: 10pt">Total shareholders’ equity</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">33,569,236</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">13,099,272</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify; padding-bottom: 4pt; padding-left: 10pt">Total liabilities and shareholders’ equity</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: justify">$</td><td style="border-bottom: Black 4pt double; text-align: right">37,974,619</td><td style="padding-bottom: 4pt; text-align: justify"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: justify">$</td><td style="border-bottom: Black 4pt double; text-align: right">13,099,272</td><td style="padding-bottom: 4pt; text-align: justify"> </td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"> <tr> <td style="vertical-align: top; width: 3%">*</td> <td style="width: 97%; text-align: justify">gives retroactive effect to the re-designation of preferred shares on September 12, 2019.</td></tr> <tr> <td style="vertical-align: top">**</td> <td style="text-align: justify">gives retroactive effect to the re-designation of ordinary shares on September 12, 2019 and the 2-for-1 forward share split to authorized, issued and outstanding shares.</td></tr> <tr> <td style="vertical-align: top">***</td> <td style="text-align: justify">gives retroactive effect to the surrender of an aggregate of 12.5% of our then outstanding ordinary shares from our existing shareholders at no consideration to the Company as treasury shares on November 8, 2019 and retroactive effect to the second surrender of an aggregate of 30.0% of our then outstanding ordinary shares from our existing shareholders at no consideration to the Company as treasury shares on May 28, 2020.</td></tr> </table> ORIENTAL CULTURE HOLDING LTD. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS PARENT COMPANY STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (UNAUDITED) <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">For the Year Ended December 31, 2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">For the Year Ended December 31, 2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="font-weight: bold">OPERATING EXPENSES:</td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 76%; text-align: justify; padding-bottom: 1.5pt">General and administrative</td><td style="width: 1%; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: justify">$</td><td style="border-bottom: Black 1.5pt solid; width: 9%; text-align: right">(4,452,154</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: justify">)</td><td style="width: 1%; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: justify">$</td><td style="border-bottom: Black 1.5pt solid; width: 9%; text-align: right">-</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify; padding-bottom: 1.5pt">Total operating expenses</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(4,452,154</td><td style="padding-bottom: 1.5pt; text-align: justify">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify; padding-bottom: 1.5pt">LOSS FROM OPERATIONS</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(4,452,154</td><td style="padding-bottom: 1.5pt; text-align: justify">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify">OTHER INCOME (EXPENSE)</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Finance expense</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">(17,410</td><td style="text-align: justify">)</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">-</td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify; padding-bottom: 1.5pt">Equity income of subsidiaries</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">6,517,671</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">9,087,872</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1.5pt; text-align: justify">Total other income, net</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">6,500,261</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">9,087,872</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">NET INCOME</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">2,048,107</td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">9,087,872</td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify; padding-bottom: 1.5pt">FOREIGN CURRENCY TRANSLATION ADJUSTMENTS</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,144,657</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(132,280</td><td style="padding-bottom: 1.5pt; text-align: justify">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 4pt">COMPREHENSIVE INCOME</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: justify">$</td><td style="border-bottom: Black 4pt double; text-align: right">3,192,764</td><td style="padding-bottom: 4pt; text-align: justify"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: justify">$</td><td style="border-bottom: Black 4pt double; text-align: right">8,955,592</td><td style="padding-bottom: 4pt; text-align: justify"> </td></tr> </table> PARENT COMPANY STATEMENTS OF CASH FLOWS (UNAUDITED) <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td> <td> </td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center">For the Year Ended December 31, 2020</td> <td> </td> <td> </td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center">For the Year Ended December 31, 2019</td> <td> </td></tr> <tr style="vertical-align: bottom"> <td>CASH FLOWS FROM OPERATING ACTIVITIES:</td> <td> </td> <td colspan="2"> </td> <td> </td> <td> </td> <td colspan="2" style="text-align: right"> </td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 76%; padding-left: 10pt; text-align: justify">Net income</td> <td style="width: 1%"> </td> <td style="width: 1%">$</td> <td style="width: 9%; text-align: right">2,048,107</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 1%">$</td> <td style="width: 9%; text-align: right">9,087,872</td> <td style="width: 1%"> </td></tr> <tr style="vertical-align: bottom; "> <td style="padding-left: 20pt; text-align: justify">Adjustments to reconcile net income to cash used in operating activities:</td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 20pt; text-align: justify">Equity income of subsidiaries and VIEs</td> <td> </td> <td> </td> <td style="text-align: right">(6,517,671</td> <td>)</td> <td> </td> <td> </td> <td style="text-align: right">(9,087,872</td> <td>)</td></tr> <tr style="vertical-align: bottom; "> <td style="padding-left: 20pt; text-align: justify">Change in operating assets and liabilities:</td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 20pt; text-align: justify">Increase in accounts payable</td> <td> </td> <td> </td> <td style="text-align: right">2,960,000</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">-</td> <td> </td></tr> <tr style="vertical-align: bottom; "> <td style="padding-left: 20pt; text-align: justify">Increase in other payables and accrued liabilities</td> <td> </td> <td> </td> <td style="text-align: right">50,918</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">-</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1.5pt; padding-left: 20pt; text-align: justify">(Decrease) in other payables - intercompany</td> <td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: right">(18,993</td> <td style="padding-bottom: 1.5pt">)</td> <td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: right">-</td> <td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom; "> <td style="padding-left: 0.375in; text-align: justify">Net cash used in operating activities</td> <td> </td> <td style="border-bottom: black 1.5pt solid"> </td> <td style="border-bottom: black 1.5pt solid; text-align: right">(1,477,639</td> <td>)</td> <td> </td> <td style="border-bottom: black 1.5pt solid"> </td> <td style="border-bottom: black 1.5pt solid; text-align: right">-</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify">CASH FLOWS FROM FINANCING ACTIVITIES:</td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: justify">Proceeds from public offerings, net</td> <td> </td> <td style="border-bottom: black 1.5pt solid"> </td> <td style="border-bottom: black 1.5pt solid; text-align: right">18,090,668</td> <td> </td> <td> </td> <td style="border-bottom: black 1.5pt solid"> </td> <td style="border-bottom: black 1.5pt solid; text-align: right">-</td> <td> </td></tr> <tr style="vertical-align: bottom; "> <td style="padding-left: 0.5in; text-align: justify">Net cash provided by financing activities</td> <td> </td> <td style="border-bottom: black 1.5pt solid"> </td> <td style="border-bottom: black 1.5pt solid; text-align: right">18,090,668</td> <td> </td> <td> </td> <td style="border-bottom: black 1.5pt solid"> </td> <td style="border-bottom: black 1.5pt solid; text-align: right">-</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify">CHANGES IN CASH AND CASH EQUIVALENTS</td> <td> </td> <td> </td> <td style="text-align: right">16,613,029</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">-</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify">CASH AND CASH EQUIVALENTS, beginning of year</td> <td> </td> <td style="border-bottom: black 1.5pt solid"> </td> <td style="border-bottom: black 1.5pt solid; text-align: right">-</td> <td> </td> <td> </td> <td style="border-bottom: black 1.5pt solid"> </td> <td style="border-bottom: black 1.5pt solid; text-align: right">-</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify">CASH AND CASH EQUIVALENTS, end of year</td> <td> </td> <td style="border-bottom: black 4.5pt double">$</td> <td style="border-bottom: black 4.5pt double; text-align: right">16,613,029</td> <td> </td> <td> </td> <td style="border-bottom: black 4.5pt double">$</td> <td style="border-bottom: black 4.5pt double; text-align: right">-</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">NON-CASH INVESTING ACTIVITY</td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify">Business acquisition through issuance of ordinary shares</td> <td> </td> <td style="border-bottom: black 4.5pt double">$</td> <td style="border-bottom: black 4.5pt double; text-align: right">-</td> <td> </td> <td> </td> <td style="border-bottom: black 4.5pt double">$</td> <td style="border-bottom: black 4.5pt double; text-align: right">1,495,505</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Proceeds from initial public offering deposited into escrow</td> <td> </td> <td style="border-bottom: black 4.5pt double">$</td> <td style="border-bottom: black 4.5pt double; text-align: right">600,000</td> <td> </td> <td> </td> <td style="border-bottom: black 4.5pt double">$</td> <td style="border-bottom: black 4.5pt double; text-align: right">-</td> <td> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify">Proceeds from initial public offerings offset with intercompany payable</td> <td> </td> <td style="border-bottom: black 4.5pt double">$</td> <td style="border-bottom: black 4.5pt double; text-align: right">1,413,458</td> <td> </td> <td> </td> <td style="border-bottom: black 4.5pt double">$</td> <td style="border-bottom: black 4.5pt double; text-align: right">-</td> <td> </td></tr> </table>

0.125

0.300

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="white-space: nowrap"> </td><td style="white-space: nowrap; font-weight: bold"> </td> <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center">December 31,</td><td style="white-space: nowrap; font-weight: bold"> </td><td style="white-space: nowrap; font-weight: bold"> </td> <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center">December 31,</td><td style="white-space: nowrap; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap"> </td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="white-space: nowrap; border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2020</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold"> </td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="white-space: nowrap; border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2019</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center">ASSETS</td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td></tr> <tr style="vertical-align: bottom"> <td>CURRENT ASSETS</td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 76%; text-align: justify; padding-bottom: 1.5pt; padding-left: 10pt">Cash and cash equivalents</td><td style="width: 1%; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: justify">$</td><td style="border-bottom: Black 1.5pt solid; width: 9%; text-align: right">16,613,029</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: justify"> </td><td style="width: 1%; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: justify">$</td><td style="border-bottom: Black 1.5pt solid; width: 9%; text-align: right">-</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">OTHER ASSETS</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td style="padding-left: 10pt">Escrow</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">600,000</td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">-</td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1.5pt; padding-left: 10pt">Investment in subsidiaries and VIEs</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">20,761,600</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">13,099,272</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify; padding-bottom: 1.5pt; padding-left: 0.25in">Total other assets</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">21,361,600</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">13,099,272</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify; padding-bottom: 4pt; padding-left: 20pt">Total assets</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: justify">$</td><td style="border-bottom: Black 4pt double; text-align: right">37,974,629</td><td style="padding-bottom: 4pt; text-align: justify"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: justify">$</td><td style="border-bottom: Black 4pt double; text-align: right">13,099,272</td><td style="padding-bottom: 4pt; text-align: justify"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: center">LIABILITIES AND SHAREHOLDERS’ EQUITY</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify">CURRENT LIABILITIES</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 0.125in; text-align: justify">Accounts payable</td><td> </td> <td style="text-align: justify">$</td><td style="text-align: right">2,960,000</td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify">$</td><td style="text-align: right">-</td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td style="padding-left: 0.125in; text-align: justify">Other payables and accrued liabilities</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">50,918</td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">-</td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 0.125in; text-align: justify; padding-bottom: 1.5pt">Other payables - intercompany</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,394,465</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td style="padding-left: 0.25in; text-align: justify; padding-bottom: 1.5pt">Total current liabilities</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">4,405,383</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td style="padding-bottom: 1.5pt">LIABILITIES</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">4,405,383</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify">COMMITMENTS AND CONTINGENCIES</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify">SHAREHOLDERS’ EQUITY</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-indent: -10pt; padding-left: 20pt">Preferred shares, $0.00005 par value, 100,000,000 shares authorized, no shares issued or outstanding as of December 31, 2020 and 2019, respectively</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">-</td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">-</td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-indent: -10pt; padding-left: 20pt">Ordinary shares, $0.00005 par value, 900,000,000 shares authorized, 30,054,712 and 24,800,000 shares issued*** and 20,444,712 and 15,190,000 shares outstanding as of December 31, 2020 and 2019, respectively*</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">1,503</td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">1,240</td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-indent: -10pt; padding-left: 20pt">Treasury shares, at cost, 9,610,000 shares as of December 31, 2020 and 2019 **</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">(481</td><td style="text-align: justify">)</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">(481</td><td style="text-align: justify">)</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify; padding-left: 10pt">Additional paid-in capital</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">18,884,992</td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">1,608,045</td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-left: 10pt">Statutory reserves</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">112,347</td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">112,347</td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify; padding-left: 10pt">Retained earnings</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">13,647,770</td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">11,599,663</td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1.5pt; padding-left: 10pt">Accumulated other comprehensive income (loss)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">923,115</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(221,542</td><td style="padding-bottom: 1.5pt; text-align: justify">)</td></tr> <tr style="vertical-align: bottom; "> <td style="padding-bottom: 1.5pt; text-align: justify; padding-left: 10pt">Total shareholders’ equity</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">33,569,236</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">13,099,272</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify; padding-bottom: 4pt; padding-left: 10pt">Total liabilities and shareholders’ equity</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: justify">$</td><td style="border-bottom: Black 4pt double; text-align: right">37,974,619</td><td style="padding-bottom: 4pt; text-align: justify"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: justify">$</td><td style="border-bottom: Black 4pt double; text-align: right">13,099,272</td><td style="padding-bottom: 4pt; text-align: justify"> </td></tr> </table>

16613029

600000

20761600

13099272

21361600

13099272

37974629 13099272

2960000

50918

1394465

4405383

1503

1240

-481

18884992

1608045

112347

13647770

11599663

923115

-221542

33569236

13099272

37974619 13099272 <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">For the Year Ended December 31, 2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">For the Year Ended December 31, 2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="font-weight: bold">OPERATING EXPENSES:</td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 76%; text-align: justify; padding-bottom: 1.5pt">General and administrative</td><td style="width: 1%; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: justify">$</td><td style="border-bottom: Black 1.5pt solid; width: 9%; text-align: right">(4,452,154</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: justify">)</td><td style="width: 1%; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: justify">$</td><td style="border-bottom: Black 1.5pt solid; width: 9%; text-align: right">-</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify; padding-bottom: 1.5pt">Total operating expenses</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(4,452,154</td><td style="padding-bottom: 1.5pt; text-align: justify">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify; padding-bottom: 1.5pt">LOSS FROM OPERATIONS</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(4,452,154</td><td style="padding-bottom: 1.5pt; text-align: justify">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify">OTHER INCOME (EXPENSE)</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Finance expense</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">(17,410</td><td style="text-align: justify">)</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">-</td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify; padding-bottom: 1.5pt">Equity income of subsidiaries</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">6,517,671</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">9,087,872</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1.5pt; text-align: justify">Total other income, net</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">6,500,261</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">9,087,872</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right"> </td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">NET INCOME</td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">2,048,107</td><td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td><td style="text-align: right">9,087,872</td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify; padding-bottom: 1.5pt">FOREIGN CURRENCY TRANSLATION ADJUSTMENTS</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,144,657</td><td style="padding-bottom: 1.5pt; text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(132,280</td><td style="padding-bottom: 1.5pt; text-align: justify">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 4pt">COMPREHENSIVE INCOME</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: justify">$</td><td style="border-bottom: Black 4pt double; text-align: right">3,192,764</td><td style="padding-bottom: 4pt; text-align: justify"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: justify">$</td><td style="border-bottom: Black 4pt double; text-align: right">8,955,592</td><td style="padding-bottom: 4pt; text-align: justify"> </td></tr> </table>

-4452154

-17410

6517671

9087872

6500261

9087872

2048107

9087872

1144657

-132280

3192764

8955592

<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td> <td> </td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center">For the Year Ended December 31, 2020</td> <td> </td> <td> </td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center">For the Year Ended December 31, 2019</td> <td> </td></tr> <tr style="vertical-align: bottom"> <td>CASH FLOWS FROM OPERATING ACTIVITIES:</td> <td> </td> <td colspan="2"> </td> <td> </td> <td> </td> <td colspan="2" style="text-align: right"> </td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 76%; padding-left: 10pt; text-align: justify">Net income</td> <td style="width: 1%"> </td> <td style="width: 1%">$</td> <td style="width: 9%; text-align: right">2,048,107</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 1%">$</td> <td style="width: 9%; text-align: right">9,087,872</td> <td style="width: 1%"> </td></tr> <tr style="vertical-align: bottom; "> <td style="padding-left: 20pt; text-align: justify">Adjustments to reconcile net income to cash used in operating activities:</td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 20pt; text-align: justify">Equity income of subsidiaries and VIEs</td> <td> </td> <td> </td> <td style="text-align: right">(6,517,671</td> <td>)</td> <td> </td> <td> </td> <td style="text-align: right">(9,087,872</td> <td>)</td></tr> <tr style="vertical-align: bottom; "> <td style="padding-left: 20pt; text-align: justify">Change in operating assets and liabilities:</td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 20pt; text-align: justify">Increase in accounts payable</td> <td> </td> <td> </td> <td style="text-align: right">2,960,000</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">-</td> <td> </td></tr> <tr style="vertical-align: bottom; "> <td style="padding-left: 20pt; text-align: justify">Increase in other payables and accrued liabilities</td> <td> </td> <td> </td> <td style="text-align: right">50,918</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">-</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1.5pt; padding-left: 20pt; text-align: justify">(Decrease) in other payables - intercompany</td> <td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: right">(18,993</td> <td style="padding-bottom: 1.5pt">)</td> <td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: right">-</td> <td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom; "> <td style="padding-left: 0.375in; text-align: justify">Net cash used in operating activities</td> <td> </td> <td style="border-bottom: black 1.5pt solid"> </td> <td style="border-bottom: black 1.5pt solid; text-align: right">(1,477,639</td> <td>)</td> <td> </td> <td style="border-bottom: black 1.5pt solid"> </td> <td style="border-bottom: black 1.5pt solid; text-align: right">-</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify">CASH FLOWS FROM FINANCING ACTIVITIES:</td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: justify">Proceeds from public offerings, net</td> <td> </td> <td style="border-bottom: black 1.5pt solid"> </td> <td style="border-bottom: black 1.5pt solid; text-align: right">18,090,668</td> <td> </td> <td> </td> <td style="border-bottom: black 1.5pt solid"> </td> <td style="border-bottom: black 1.5pt solid; text-align: right">-</td> <td> </td></tr> <tr style="vertical-align: bottom; "> <td style="padding-left: 0.5in; text-align: justify">Net cash provided by financing activities</td> <td> </td> <td style="border-bottom: black 1.5pt solid"> </td> <td style="border-bottom: black 1.5pt solid; text-align: right">18,090,668</td> <td> </td> <td> </td> <td style="border-bottom: black 1.5pt solid"> </td> <td style="border-bottom: black 1.5pt solid; text-align: right">-</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify">CHANGES IN CASH AND CASH EQUIVALENTS</td> <td> </td> <td> </td> <td style="text-align: right">16,613,029</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">-</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify">CASH AND CASH EQUIVALENTS, beginning of year</td> <td> </td> <td style="border-bottom: black 1.5pt solid"> </td> <td style="border-bottom: black 1.5pt solid; text-align: right">-</td> <td> </td> <td> </td> <td style="border-bottom: black 1.5pt solid"> </td> <td style="border-bottom: black 1.5pt solid; text-align: right">-</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify">CASH AND CASH EQUIVALENTS, end of year</td> <td> </td> <td style="border-bottom: black 4.5pt double">$</td> <td style="border-bottom: black 4.5pt double; text-align: right">16,613,029</td> <td> </td> <td> </td> <td style="border-bottom: black 4.5pt double">$</td> <td style="border-bottom: black 4.5pt double; text-align: right">-</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">NON-CASH INVESTING ACTIVITY</td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify">Business acquisition through issuance of ordinary shares</td> <td> </td> <td style="border-bottom: black 4.5pt double">$</td> <td style="border-bottom: black 4.5pt double; text-align: right">-</td> <td> </td> <td> </td> <td style="border-bottom: black 4.5pt double">$</td> <td style="border-bottom: black 4.5pt double; text-align: right">1,495,505</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Proceeds from initial public offering deposited into escrow</td> <td> </td> <td style="border-bottom: black 4.5pt double">$</td> <td style="border-bottom: black 4.5pt double; text-align: right">600,000</td> <td> </td> <td> </td> <td style="border-bottom: black 4.5pt double">$</td> <td style="border-bottom: black 4.5pt double; text-align: right">-</td> <td> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify">Proceeds from initial public offerings offset with intercompany payable</td> <td> </td> <td style="border-bottom: black 4.5pt double">$</td> <td style="border-bottom: black 4.5pt double; text-align: right">1,413,458</td> <td> </td> <td> </td> <td style="border-bottom: black 4.5pt double">$</td> <td style="border-bottom: black 4.5pt double; text-align: right">-</td> <td> </td></tr> </table> -6517671 -9087872

2960000

50918

-18993

-1477639

18090668

16613029

1495505

600000 1413458