Company: NEGG
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001213900-25-036055
Chunk: 149

Company: Newegg Commerce, Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 10
Chunk 149
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 adversely affect our results of operations and financial condition. Historically, we have
not entered into any hedging activities, and, to the extent that we continue not to do so in the future, we may be vulnerable to the effects
of currency exchange-rate fluctuations.

We expect our exposure to foreign currency risk
will increase as we increase our operations and sales in Canada and other countries and regions. Although the effect of currency fluctuations
on our financial statements has not been material in the past, there can be no assurance that the effect of currency fluctuations will
not be material in the future. For the years ended December 31, 2024, 2023, and 2022, we recorded foreign exchange loss of $0.1 million,
gain of $0.3 million, and gain of $0.9 million, respectively. Based on the balance of our foreign-denominated cash and cash equivalents
as of December 31, 2024, 2023, and 2022, an assumed 10% negative currency movement would not have a material impact.

To date, we have not entered into any hedging
transactions in an effort to reduce our exposure to foreign currency exchange risk.

Item 12. Description of Securities Other than
Equity Securities

Not applicable.

PART II