Company: NEGG
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001213900-25-036055
Chunk: 163

Company: Newegg Commerce, Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 16K
Chunk 163
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Item 16K. Cybersecurity

In the ordinary course of our business, we collect,
use, store, and transmit digitally large amounts of confidential, sensitive, proprietary, and personal information. The secure maintenance
of this information and our information technology systems is important to our operations and business strategy. To this end, we have
implemented processes designed to assess, identify, and manage risks from potential unauthorized occurrences on or through our information
technology systems that may result in adverse effects on the confidentiality, integrity, and availability of these systems and the data
residing therein. These processes are informed in part by industry standards, principles and frameworks, such as the National Institute
of Standards and Technology Cybersecurity Framework, and are managed and monitored by a dedicated information security team, which is
led by our Chief Information Security Officer, and include mechanisms, controls, technologies, systems, and other processes designed to
prevent or mitigate data loss, theft, misuse, or other security incidents or vulnerabilities affecting the data and maintain a stable
information technology environment. For example, we conduct penetration and vulnerability testing, data recovery testing, security audits,
and ongoing risk assessments, including due diligence on and audits of our key technology vendors contractors and suppliers. We have an
incident response plan designed to mitigate and remediate identified cybersecurity incidents and escalate certain incidents as appropriate
to management and the Audit Committee. Additionally, we leverage outsourced managed services to monitor our systems and utilize bug bounty
programs designed to identify and remediate vulnerabilities. We also conduct periodic employee awareness trainings on cyber and information
security, among other topics. In addition, we consult with outside advisors and experts, when appropriate, to assist with assessing, identifying,
and managing cybersecurity risks, including to anticipate future threats and trends, and their impact on the Company’s risk environment.

Our Chief Information Security Officer, Montaque
Hou, who reports directly to the Chief Executive Officer and has over ten years of experience managing information technology and cybersecurity
matters, together with our information technology team, is responsible for assessing and managing cybersecurity risks. We consider cybersecurity,
along with other significant risks that we face, within our overall enterprise risk management framework. Since the last fiscal year,
we have
not
identified risks from known cybersecurity threats, including as a result of any prior cybersecurity incidents, that have materially
affected us, but we face certain ongoing cybersecurity risks threats that, if realized, are reasonably likely to materially affect us. Additional information on cybersecurity risks we face is discussed in Item 3D, “ Risk