Company: NEGG
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001213900-25-036055
Chunk: 41

Company: Newegg Commerce, Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 3
Chunk 41
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 to be volatile due to numerous circumstances beyond our control.

The market price of our common shares has fluctuated,
and may continue to fluctuate, widely, due to many factors, some of which may be beyond our control. These factors include, without limitation:

  “short squeezes”;  

  comments by securities analysts or other third parties, including blogs, articles, message boards and social and other media;  

  actual or anticipated fluctuations in our financial and operating results;  

  shifts in the timing or content of certain promotions or service offerings;  

  announcements of new products and services by us or our competitors;  

  the effect of changes in tax rates in the jurisdictions in which we operate;  
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  announcements of new investments, acquisitions, strategic partnerships or joint ventures by us or our competitors;  

  the mix of earnings in the countries in which we operate;  

  changes in foreign currency exchange rates;  
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  announcements about our earnings that are not in line with shareholders’ expectations;  

  changes in financial estimates by securities analysts;  
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  negative public perception of us, our competitors, or industry;  

  release of lock-up or other transfer restrictions on our outstanding equity securities or sales of additional equity securities;  

  potential litigation or regulatory investigations; and  

  overall general market fluctuations.  

Stock markets in general and our share price in
particular have experienced price and volume fluctuations that have often been unrelated or disproportionate to the operating performance
of those companies and our company. These broad market fluctuations may adversely affect the trading price of our common shares. In particular,
a large proportion of our common shares has been and may continue to be traded by short sellers which has put and may continue to put
pressure on the supply and demand for our common shares, further influencing volatility in its market price. Additionally, these and other
external factors have caused and may continue to cause the market price and demand for our common shares to fluctuate, which may limit
or prevent investors from readily selling their common shares and may otherwise negatively affect the liquidity of our common shares.

Mr. Zhitao He (as the Chairman and CEO of Hangzhou Lianluo and in his
own capacity) and Mr. Fred Chang control approximately 57.3% and 30.9%, respectively, and 88.2%, collectively, of the voting power of