Company: NEGG
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001213900-25-036055
Chunk: 190

Company: Newegg Commerce, Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 18
Chunk 190
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, and July 8, 2025, respectively. Advances from these lines of credit
are subject to interest at a fixed rate of one-year LPR plus0.15%. The interest rate was equivalent to3.6% and3.8% as of December 31,
2024 and 2023, respectively. As of December 31, 2024 and 2023, there was $2.5million and $2.5million outstanding under this line
of credit, respectively.

F-18

  Long-Term Debt  
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The Company has entered into various
loans with financial institutions. Long-term debt consisted of the following (in thousands):

                                           As of                              
                                           December 31,                       
                                           2024              2023             
  Term Loan                                $                 $         1,378  
  Less current portion                                                 ( 268  
  Long-term debt less current portion      $                 $         1,110  
 ──────────────────────────────────────────────────────────────────────────────

Term Loan

In 2013, the Company entered into a
term loan agreement with a financial institution for $4.1million with a maturity date of November 26, 2028 (the “ Term Loan”).
The Term Loan bears a floating interest rate of the one-year savings account plus0.43% per annum in the first two years and a floating
interest rate of the one-year savings account plus0.61% per annum for the remaining of the term, not to be lower than1.8% during the
entire term. The Term Loan was paid off in 2024.

  10.      Lease Obligations  
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Operating Leases

The Company leases certain office and
warehouse facilities and warehouse equipment under various noncancelable operating leases. The Company is also committed under the terms
of certain of these operating lease agreements to pay property taxes, insurance, utilities, and maintenance costs.

Most of the Company’s leases
do not provide an implicit rate that can be readily determined. Therefore, the Company uses a discount rate based on its incremental borrowing
rate, which is determined using its credit rating and information available as of the commencement date. The Company’s operating
lease agreements may include options to extend the lease term. The Company made an accounting policy election to exclude options that
are not reasonably certain of exercise when determining the term of the borrowing in the assessment of the incremental borrowing rate