Company: NEGG
Filing Date: 2025-10-14
Form Type: 6-K
Source: 0001213900-25-098392
Chunk: 5

Company: Newegg Commerce, Inc.
Filing Date: 2025-10-14
Form: 6-K
Chunk 5
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 Term SOFR. If the Benchmark Replacement is
Daily Simple SOFR, all interest payments will be payable on a monthly basis.

The line of credit is secured by certain of our subsidiaries and is
collateralized by certain of our assets. Such assets include real estate, 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, we pay on an annual basis, a commitment fee of $52,500 per annum for the facility.
The credit facility contains customary covenants, including covenants that limit or restrict our ability to incur capital expenditures
and lease payments, make certain investments, and enter into certain related-party transactions. The credit facility also requires us
to maintain an operational banking relationship with the financial institutions.

The Company previously entered into a credit agreement with East West
Bank that provides a revolving credit facility of up to $50.0 million with a maturity date of August 27, 2026. On October 10, 2025, we amended the credit agreement to, among other things, allow for the incurrence of the new revolving
facility, addition of real estate collateral and removal or modification of certain covenants.

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ATM issuance results to date

As previously announced, the Company has entered
into a Sales Agreement (the “Sales Agreement”) with Needham & Company, LLC (the “Sales Agent”), pursuant to
which the Company may offer and sell from time to time up to $65,000,000 of the Company’s common shares, par value $0.43696 (“Common
Shares”), through the Sales Agent. As of September 30, 2025, the Company has completed the sale of 1,084,290 Common Shares under
the Sales Agreement, raising total gross proceeds of $37.4 million (or $35.7 million net of commissions and estimated expenses). The Company
authorized a total of 1,500,000 Common Shares for sale pursuant to the Sales Agreement, leaving 415,710 Common Shares available for future
sale. The Company’s Board of Directors may also authorize additional shares for sale under the Sales Agreement. As of September 30, 2025, the Company had 20,966,480 shares of common stock issued and outstanding.

Update on Shareholder Loan Foreclosure

As