Company: NEGG
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001213900-25-036055
Chunk: 30

Company: Newegg Commerce, Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 3
Chunk 30
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 in significant civil and/or criminal penalties on us or on our
foreign subsidiaries, including fines, prohibitions on exporting and importing, prohibitions on receiving government contracts or other
government assistance and other trade-related restrictions. U. S. enforcement of such laws and regulations continues to increase.

We must also comply with applicable foreign laws
relating to trade, export and import controls and economic sanctions. We may not be aware of all of such laws applicable in the markets
in which we do business, which subjects us to the risk of potential violations.

The increasing use of economic sanctions and export
controls has impacted and may in the future impact demand for our products or services, negatively impacting our business and financial
results. Reduced demand due to export controls could also lead to excess inventory or cause us to incur related supply charges. Additional
export restrictions may not only impact our ability to serve overseas markets, but also provoke responses from foreign governments, including
China, that negatively impact our supply chain or our ability to provide our products and services to customers in all markets worldwide,
which could also substantially reduce our revenue. Additionally, repeated changes in the export control rules are likely to impose compliance
burdens on our business and our customers, negatively and materially impacting our business.

We may need additional capital and failure
to raise additional capital on terms favorable to us, or at all, could limit our ability to grow our business and develop or enhance our
service offerings to respond to market demand or competitive challenges.

We believe that our current cash, cash flow from
operations and borrowings are sufficient to meet our anticipated cash needs for at least the next 12 months. We may, however, require
additional cash resources due to changed business conditions or other future developments, including any investments or acquisitions we
may decide to pursue. If these resources are insufficient to satisfy our cash requirements, we may seek to sell additional equity or debt
securities, or draw from or refinance our credit facilities. The sale of additional equity securities could result in dilution to our
shareholders. The incurrence of indebtedness would result in increased debt service obligations and could require us to agree to operating
and financing covenants that would restrict our operations. Our ability to obtain additional capital on acceptable terms is subject to
a variety of uncertainties, including:

  investors’ perception of, and demand for, our securities;  

  conditions of the U. S. and other capital markets in which we may seek to raise funds; and  
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