Company: NEGG
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001213900-25-036055
Chunk: 139

Company: Newegg Commerce, Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 10
Chunk 139
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ulgated thereunder, judicial decisions, and published rulings and administrative pronouncements of the U. S. Internal Revenue
Service, or the IRS, in each case in effect as of the date hereof. These authorities may change or be subject to differing interpretations.
Any such change or differing interpretation may be applied retroactively in a manner that could adversely affect owners of our common
shares. We have not sought and will not seek any rulings from the IRS regarding the matters discussed below. There can be no assurance
the IRS or a court will not take a contrary position to that discussed below regarding the tax consequences of the ownership and disposition
of our common shares.

This discussion is limited to beneficial owners
that hold our common shares as a “capital asset” within the meaning of Section 1221(a) of the Code (generally, property held
for investment). This discussion does not address all U. S. federal income tax consequences, including the impact of the Medicare contribution
tax on net investment income. In addition, it does not address consequences relevant to certain types of investors subject to special
rules, including, without limitation:

  financial institutions or financial services entities;  

  broker-dealers;  

  governments or agencies or instrumentalities thereof;  

  regulated investment companies;  

  real estate investment trusts;  

  expatriates or former long-term residents of the U. S.;  

  persons that actually or constructively own five percent or more (by vote or value) of our shares;  
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  insurance companies;  

  dealers or traders subject to a mark-to-market method of accounting with respect to the securities;  

  persons holding the securities as part of a “straddle,” constructive sale, hedge, conversion or other integrated or similar transaction;  

  persons that purchase or sell our securities as part of a wash sale for U. S. federal income tax purposes;  

  U. S. holders (as defined below) whose functional currency is not the U. S. dollar;  

  partnerships (or entities or arrangements classified as partnerships or other pass-through entities for U. S. federal income tax purposes) and any beneficial owners of such entities;  

  tax-exempt entities;  

  controlled foreign corporations;  

  passive foreign investment companies; and  

  persons that acquired our securities as compensation or in connection with services.  

If you are a partnership or other pass-through
entity (including an entity or arrangement treated