Company: NEGG
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001213900-25-036055
Chunk: 142

Company: Newegg Commerce, Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 10
Chunk 142
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 by reason of certain
constructive ownership rules set forth in the Code, as well as shares actually owned, must generally be taken into account. Because the
determination as to whether any of the alternative tests of Section 302 of the Code is satisfied with respect to any particular holder
of the stock will depend upon the facts and circumstances as of the time the determination is made, U. S. holders should consult their
tax advisors to determine such tax treatment.

If the redemption qualifies as a sale of common
shares, the U. S. holder will be treated as described under “ U. S. Holders - Sale, Taxable Exchange or Other Taxable Disposition
of Our Common Shares” above. If the redemption does not qualify as a sale of our common shares, the U. S. holder will be treated
as receiving a distribution with the tax consequences described above under “ U. S. Holders - Taxation of Distributions.”
The amount of the distribution would be measured by the amount of cash and the fair market value of any property received by the U. S.
holder and any remaining tax basis of the U. S. holder in the redeemed common shares would be added to the U. S. holder’s adjusted
tax basis in its remaining common shares. If the U. S. holder has no remaining common shares, such basis may, under certain circumstances,
be transferred to a related person or it may be lost entirely.

Information Reporting and Backup Withholding

In general, information reporting requirements
may apply to dividends paid to a U. S. holder and to the proceeds of the sale, taxable exchange or other taxable disposition of our common
shares unless the U. S. holder is an exempt recipient. Backup withholding may apply to such payments if the U. S. holder fails to provide
a taxpayer identification number, a certification of exempt status or has been notified by the IRS that it is subject to backup withholding
(and such notification has not been withdrawn).

Backup withholding is not an additional tax. Any
amounts withheld under the backup withholding rules will be allowed as a credit against a U. S. holder’s U. S. federal income tax
liability and may entitle such holder to a refund, provided the required information is timely furnished to the IRS.

Non-U. S. Holders

For purposes of this discussion, a Non-U. S. holder
is any beneficial owner of our common shares that is neither a “ U. S. person” nor an entity or arrangement