Company: NEGG
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001213900-25-036055
Chunk: 11

Company: Newegg Commerce, Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 3
Chunk 11
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 other payment-related risks, our business, financial condition and results of operations could be adversely affected.

We rely on a limited number of third-party payment
solutions to process deposits and withdrawals made by users of our Marketplace. If any third-party payment solution terminates its relationship
with Newegg or refuses to renew its agreement with Newegg on commercially reasonable terms, we would need to find an alternate payment
solution, and may not be able to secure similar terms or replace such payment solution in an acceptable time frame. Further, the software
and services provided by our third-party payment solutions may not meet our expectations, contain errors or vulnerabilities, be compromised
or experience outages. Any of these risks could cause us to lose our ability to accept online payments or other payment transactions or
make timely payments to users of our Marketplace, any of which could make our Marketplace less trustworthy and convenient and adversely
affect our ability to attract and retain our users.

Nearly all of our users’ payments are made
by credit card, debit card or through other third-party payment services, which subjects Newegg to certain regulations and to the risk
of fraud. We may in the future offer new payment options to users that may be subject to additional regulations and risks. We are also
subject to a number of other laws and regulations relating to the payments we accept from our users, including with respect to money laundering,
money transfers, privacy and information security. If we fail to comply with applicable rules and regulations, we may be subject to civil
or criminal penalties, fines and/or higher transaction fees and may lose our ability to accept online payments or other payment card transactions,
which could make our Marketplace less convenient and attractive to our users. If any of these events were to occur, our business, financial
condition and results of operations could be adversely affected.

Additionally, card organizations, including Visa,
require Newegg to comply with payment card network operating rules, which are set and interpreted by the payment card networks. The payment
card networks could adopt new operating rules or interpret or reinterpret existing rules in ways that might prohibit us from providing
certain offerings to some users, be costly to implement or difficult to follow. We have agreed to reimburse our payment processors for
fines, penalties or assessments that are assessed by card organizations if we or the users on our Marketplace violate these rules, and
as a result we may be subject to fines, penalties or assessments assessed by card organizations against us from time to time. Any of the
foregoing risks could adversely affect our business