Company: NEGG
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001213900-25-036055
Chunk: 9

Company: Newegg Commerce, Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 3
Chunk 9
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 of violating the False Advertising
Law, the Unfair Competition Law and the Consumer Legal Remedies Act by using allegedly deceptive list prices with allegedly overstated
discounts for our products. This matter was dismissed in September 2023 for failure to prosecute. An adverse outcome in any other lawsuits
challenging deceptive pricing against us could have a material adverse effect on our reputation, business and financial condition.

We generally are not able to control the pricing
strategies of our Marketplace sellers, which could affect our net income and our ability to effectively compete on price with other e-commerce
retailers and brick-and-mortar stores. Our inability to execute an effective pricing strategy, or a determination by our Marketplace sellers
that they can more competitively price their products through other distribution channels could adversely affect our business, financial
condition, results of operations and prospects.

Operational Risks

We face risks related to system interruption,
including failures caused or experienced by third-party service providers, and lack of redundancy and timely upgrades.

Our success depends on our ability to successfully
receive and fulfill orders and to promptly deliver such orders to our customers. We could lose existing customers or fail to attract new
customers, potentially resulting in a decline in net sales, if our online platforms are inaccessible or if our transaction processing
systems, order fulfillment processes or network infrastructure are not operational or performing to our customers’ satisfaction.

Any internet network interruptions, latency or
problems with our online platforms’ availability could prevent customers from accessing, browsing and placing orders on our online
platforms, and impact our ability to fulfill orders or bill customers, which may cause customer dissatisfaction and damage our reputation
and brand. We have experienced brief computer system interruptions in the past and believe that others will occur from time to time in
the future. Our systems and operations potentially are vulnerable to damage or interruption from a number of sources, including the following:

  natural disaster or other catastrophic event such as earthquake, fire, drought, power loss or interruption, telecommunications failure, hurricane, volcanic eruption, flood or terrorist attack. ...  
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  diseases or pandemics that have affected and may continue to affect the supply chain of our brand partners and Marketplace sellers, and our logistics in the future due to inconsistent and unant...  
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