Company: NEGG
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001213900-25-036055
Chunk: 140

Company: Newegg Commerce, Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 10
Chunk 140
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 as a partnership or other pass-through entity for U. S. federal income tax purposes),
the U. S. federal income tax treatment of your partners, members or other beneficial owners will generally depend on the status of the
partners, members or other beneficial owners, your activities, and certain determinations made at the partner, member or other beneficial
owner level. If you are a partner, member or other beneficial owner of a partnership or other pass-through entity that acquires our securities,
you are urged to consult your tax advisor regarding the tax consequences of acquiring, owning and disposing of our securities.

U. S. Holders

For purposes of this discussion, a “ U. S.
holder” is any beneficial owner of our common shares that is:

  an individual who is a citizen or resident of the United States;  

  a corporation (or other entity or arrangement taxable as a corporation for U. S. federal income tax purposes) created or organized in or under the laws of the United States, any state thereof o...  

  an estate the income of which is includable in gross income for U. S. federal income tax purposes regardless of its source; or  

  a trust, if (i) a court within the United States is able to exercise primary supervision over the administration of the trust and one or more U. S. persons (as defined in the Code) have authori...  

Taxation of Distributions

If we pay distributions in cash or other property
(other than certain distributions of our common shares or rights to acquire our common shares) to U. S. holders of our common shares, such
distributions generally will constitute dividends for U. S. federal income tax purposes to the extent paid from our current or accumulated
earnings and profits, as determined under U. S. federal income tax principles. Distributions in excess of current and accumulated earnings
and profits will constitute a return of capital that will be applied against and reduce (but not below zero) the U. S. holder’s adjusted
tax basis in our common shares. Any remaining excess will be treated as gain realized on the sale or other disposition of the common shares
and will be treated as described under “ U. S. Holders - Sale, Taxable Exchange or Other Taxable Disposition of Our common shares”
below.

Dividends we pay to a U. S. holder that is a taxable
corporation generally will qualify for the dividends received deduction if the requisite holding period is satisfied. With certain exceptions