Company: NEGG
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001213900-25-036055
Chunk: 201

Company: Newegg Commerce, Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 18
Chunk 201
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 each of the year ended December 31, 2024, 2023 and 2022. Each of the four performance periods will
have a separate grant date and service inception date, and a separate requisite service period. The PRSUs are accounted for as equity
awards and are measured at fair value based upon the grant date price of the Company’s common stock. The vesting of each PRSU is
based on financial performance tied to GMV. The vesting of PRSUs is determined at the end of each of the four-year performance periods.
The payout can vary from zero to 100% based on actual results and performance goals may be adjusted by the Compensation Committee from
time to time in its sole discretion.

F-25

The following table summarizes the activity
for all performance-based restricted stock units granted:

                                                   Weighted-   
  Unvested at January 1, 2022        —             $—          
  Granted                            69,322        77.60       
  Vested                             —             —           
  Cancelled                          —             —           
  Unvested at December 31, 2022      69,322        $77.60      
  Granted                            69,322        23.40       
  Vested                             ( 69,322      77.60       
  Cancelled                          —             —           
  Unvested at December 31, 2023      69,322        23.40       
  Granted                            69,322        18.20       
  Vested                             ( 59,419      23.40       
  Cancelled                          ( 9,903       23.40       
  Unvested at December 31, 2024      69,322        $18.20      

During the years ended December 31,
2024, 2023 and 2022, the compensation expense for all restricted stock units granted included in “ Selling, general and administrative
expenses” in the consolidated statements of operations totaled $25.9million, $30.5million and $30.8million, respectively.

As of December 31, 2024 and 2023,
there were $21.1million and $51.3million, respectively, of unrecognized compensation costs related to restricted stock units.

All share amounts and per share amounts
above have been retroactively adjusted for the twenty-for-one share combination, effective April 7, 2025. See Note 1.