Company: NEGG
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001213900-25-036055
Chunk: 81

Company: Newegg Commerce, Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 4A
Chunk 81
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 (59.0       (3.8        (57.4       (3.3  
  Net loss per share, basic and diluted (2)                                   $                                                                       (2.25                   (3.12                   (3.08             
  Weighted average number of common shares outstanding used in computing                                                                               19.3                    18.9                    18.7             

Note:

  (1)      Includes share-based compensation expenses of $27.3 million, $33.7 million, and $33.9 million, respectively, in years ended December 31, 2024, 2023, and 2022.  
  (2)      Retroactively adjusted for the twenty-for-one share combination, effective April 7, 2025.                                                                       
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Year Ended December 31, 2024 Compared to Year
Ended December 31, 2023

Net sales

Net sales decreased by 17.5% for the year
ended December 31, 2024 compared to the comparable prior year period from $1,497.0 million in 2023 to $1,235.6 million in 2024,
which was mainly due to the decrease in GMV from our direct sales and marketplace businesses from $1,344.4 million and $369.7 million
for the year ended December 31, 2023, respectively, to $1,109.0 million and $318.6 million for the year ended December 31, 2024,
respectively.

The decrease in GMV was primarily due to consumer
prioritization of essential purchases over discretionary technology upgrades driven by high interest rates and economic uncertainties.
In addition, demand for technology products was further slowed by delayed new product launches.

Cost of sales & gross profit

For the year ended December 31, 2024, our
cost of sales decreased by 16.9% compared to the comparable prior year period from $1,329.4 million in 2023 to $1,104.1 million in
2024, generally reflective of the decrease in our net sales. During the same period, our gross profit decreased by 21.5% from $167.6 million
for the year ended December 31, 2023 to $131.5 million for the year ended December 31, 2024.

Our profit margin