Company: NEGG
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001213900-25-036055
Chunk: 34

Company: Newegg Commerce, Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 3
Chunk 34
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 result of such
changes, could adversely affect our business. In addition, negative sentiments towards the United States among non-U. S. customers and
among non-U. S. employees or prospective employees could adversely affect sales or hiring and retention, respectively.

Claims, Litigation, Government Investigations,
and Other Proceedings May Adversely Affect Our Business and Results of Operations

We are, or may be, subject to actual and threatened
claims, litigation, investigations, and other proceedings, involving a wide range of issues, including patent and other intellectual property
matters, taxes, labor and employment, privacy, data use, data protection, data security, network security, consumer protection, product
liability, commercial disputes, and other matters. Any of these types of proceedings can have an adverse effect on us because of legal
costs, disruption of our operations, diversion of management resources, negative publicity, and other factors. The outcomes of these matters
are inherently unpredictable and subject to significant uncertainties. Determining legal reserves or possible losses from such matters
involves judgment and may not reflect the full range of uncertainties and unpredictable outcomes. Until the final resolution of such matters,
we may be exposed to losses in excess of the amount recorded, and such amounts could be material. Should any of our estimates and assumptions
change or prove to have been incorrect, it could have a material effect on our business or results of operations.

We may not be able to adequately protect
our intellectual property rights.

We rely on trademark and copyright law, trade
secret protection and confidentiality or licensing agreements with employees, buyers, third-party sellers, brand partners and others to
protect our proprietary rights. These steps may be inadequate, agreements may be violated or there may be inadequate remedies for a violation
of such agreements. Our competitors may independently develop equivalent proprietary information and rights or may otherwise gain access
to our trade secrets or proprietary information, which could affect our ability to compete in the market. There is no assurance that the
steps that we have taken will adequately protect our proprietary rights, especially in countries where the laws or enforcement of the
laws may not protect our rights to the same extent or in the same way as in the United States.

In addition, third parties may infringe or misappropriate
our proprietary rights, and we could be required to enforce our intellectual property rights, which could require expenditure of significant
financial and managerial resources. We have registered and common law trademark rights in the United States and certain foreign jurisdictions,
as well as pending trademark applications