Company: NEGG
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001213900-25-036055
Chunk: 203

Company: Newegg Commerce, Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 18
Chunk 203
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15.      Commitments and Contingencies  
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We are involved from time to time,
and may in the future be involved in legal proceedings, investigations and claims incidental to the conduct of our business including,
among other things, consumer protection claims, employment-related cases, claims relating to data and privacy protection, third-party
intellectual property infringement claims, and contract disputes involving merchants and consumers on our platforms. We may also be involved
in litigation, regulatory investigations or inquiries and administrative proceedings that may or may not necessarily arise from our ordinary
course of business, such as securities class action lawsuits and investigations or inquiries by securities regulators. We establish balance
sheet provisions relating to potential losses from litigation based on estimates of the losses. For this purpose, we classify potential
losses as remote, reasonably possible or probable. We analyze potential outcomes from current and potential litigation and proceedings
as loss contingencies in accordance with U. S. GAAP.

  16.      Employee Benefit Plan  
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The Company maintains a 401(k) defined-contribution
plan for the benefit of its eligible employees. All full-time domestic employees who are at least 18 years of age are eligible to participate
in the plan. Eligible employees may elect to contribute up to100% of their eligible compensation. The Company’s matching contributions
are made at the discretion of the Company’s Board of Directors. In addition, the Company may make a profit-sharing contribution
at the sole discretion of the Board of Directors. Total contributions by the Company for each of the years ended December 31,
2024, 2023 and 2022 were $1.0million, $1.9million and $1.6million, respectively. Contributions made by the Company are immediately100% vested.

  17.      Related Party Transactions  
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Loans to Affiliate

On December 17, 2019, the Company
loaned $15.0million to Digital Grid under a term loan agreement with a maturity date of April 30, 2020 and a fixed interest rate
of5.0% (the “$15.0Million Loan”). The maturity date was subsequently extended to June 30, 2024. While Digital Grid
has continued to make interest-only payments on the loan, the $15million principal balance currently remains outstanding and the maturity
date has not been subsequently extended. The $15.0