Company: NEGG
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001213900-25-036055
Chunk: 188

Company: Newegg Commerce, Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 18
Chunk 188
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 general, advances from this line of credit will be subject to interest
at the Term SOFR Rate plus the Applicable Margin, as defined in the credit agreement, so long as the Term SOFR Reference Rate or Term
SOFR is offered, ascertainable, and not unlawful, or the Alternate Base Rate (defined as the highest of the (a) the Base Rate in effect
on such day, (b) the sum of the Overnight Bank Funding Rate in effect on such day plus0.50%, or (c) the Daily LIBOR Rate prior to the
2024 amendment or, after the 2024 amendment, the Daily Simple SOFR plus1.0%) plus the Applicable Margin. For Term SOFR Rate loans, we
may select interest periods of one or three months. Interest on Term SOFR Rate loans shall be payable at the end of the selected interest
period. Interest on Alternate Base Rate loans is payable monthly. If the Benchmark Replacement is Daily Simple SOFR, all interest payments
will be payable on a monthly basis. In the event of the permanent or indefinite cessation of the Term SOFR Rate, the Benchmark Replacement
will replace the Term SOFR Rate.

The line of credit is secured by certain
of the Company’s subsidiaries and is collateralized by certain of the assets of the Company. Such assets include all receivables,
equipment and fixtures, general intangibles, inventory, subsidiary stock, securities, property, and financial assets, contract rights,
and ledger sheets, as defined in the credit agreement. To maintain availability of funds under the credit agreement, the Company pays
on a quarterly basis, an unused commitment fee of0.15% per annum prior to the 2024 amendment or, after the 2024 amendment,0.20% per
annum, on the unused amount for the facility. The credit facility contains customary covenants, including covenants that limit or restrict
the Company’s ability to incur capital expenditures and lease payments, make certain investments, and enter into certain related-party
transactions. The credit facility also requires the Company to maintain certain minimum financial ratios and maintain an operational banking
relationship with the financial institutions.

As of December 31, 2024 and 2023,
there was nobalance outstanding under this line of credit, and the Company was in compliance with all covenants related to the line of
credit. As of December 31, 2024, Newegg has outstanding letters of credit of10.0million from