Company: NEGG
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001213900-25-036055
Chunk: 119

Company: Newegg Commerce, Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 8
Chunk 119
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Item 8. Financial Information

  Consolidated Statements and Other Financial Information  
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Refer to “ Item 18. Financial Statements”
for our consolidated financial statements as of December 31, 2024 and December 31, 2023 and for the years ended December 31, 2024, December
31, 2023 and December 31, 2022 and report of our independent registered public accounting firm included herein.

Legal and Arbitration Proceedings

We are involved from time to time, and may in
the future be involved in legal proceedings, investigations and claims incidental to the conduct of our business including, among other
things, consumer protection claims, employment-related cases, claims relating to data and privacy protection, third-party intellectual
property infringement claims, and contract disputes involving merchants and consumers on our platforms. We may also be involved in litigation,
regulatory investigations or inquiries and administrative proceedings that may or may not necessarily arise from our ordinary course of
business, such as securities class action lawsuits and investigations or inquiries by securities regulators. We establish balance sheet
provisions relating to potential losses from litigation based on estimates of the losses. For this purpose, we classify potential losses
as remote, reasonably possible or probable. We analyze potential outcomes from current and potential litigation and proceedings as loss
contingencies in accordance with U. S. GAAP.

Dividend Policy

To date, we have not paid any cash dividends on
our shares. As a BVI company, we may only declare and pay dividends if our directors are satisfied, on reasonable grounds, that immediately
after the distribution (i) the value of our assets will exceed our liabilities and (ii) we will be able to pay our debts as they fall
due. We currently anticipate that we will retain any available funds to finance the growth and operation of our business and we do not
anticipate paying any cash dividends in the foreseeable future. Additionally, our cash held in foreign countries may be subject to certain
control limitations or repatriation requirements, limiting our ability to use this cash to pay dividends.

  Significant Changes  
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Except otherwise disclosed within this annual
report on Form 20-F, no significant change has occurred since December 31, 2024.

Item 9. The Offer and Listing