Company: NEGG
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001213900-25-036055
Chunk: 89

Company: Newegg Commerce, Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 4A
Chunk 89
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 a decrease in accounts receivable of $2.8 million, partially
offset by (a) a decrease in deferred revenue of $5.5 million; (c) a decrease in accrued liabilities and other liabilities of $12.1 million;
and (d) a decrease in accounts payable of $0.9 million.

Net cash provided by operating activities was
$20.5 million for the year ended December 31, 2022. Net loss was $57.4 million for the period. The adjustments for non-cash
expenses are primarily comprised of (i) $11.0 million of depreciation and amortization that was associated with property and
equipment; (ii) $9.5 million of provision for obsolete and excess inventory; (iii) $33.9 million of stock-based compensation;
(iv) $2.3 million loss from impairment of equity method investment; (v) $12.5 million from deferred income taxes and partially offset
by (a) $1.7 million gain from sale of investment and (b) $1.1 million change in fair value of warrant liabilities. The changes in operating
assets and liabilities represented $10.2 million cash provided by (i) a decrease in inventory of $78.8 million; (ii) a
decrease in prepaid expenses of $0.9 million; (iii) a decrease in other assets of $10.0 million, partially offset by (a) an increase in
accounts receivable of $22.0 million, (b) a decrease in accounts payable of $14.1 million; (c) a decrease in accrued liabilities and other
liabilities of $34.4 million; and (d) a decrease in deferred revenue of $8.9 million.

Investing activities

Net cash provided by investing activities was
$2.4 million for the year ended December 31, 2024, which was primarily attributable to the (i) proceeds received from sale of investment
of $3.8 million; and (ii) proceeds received from disposal of property and equipment of $2.2 million, partially offset by the payments
made to acquire property and equipment of $3.6 million.

Net cash used in investing activities was $14.3 million
for the year ended December 31, 2023, which was primarily attributable to the payments made to acquire property and equipment of $30.3
million and partially offset by the proceeds received from sale of investment of $15.