Company: NEGG
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001213900-25-036055
Chunk: 83

Company: Newegg Commerce, Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 4A
Chunk 83
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 ended December 31, 2024, we sold
all of our remaining investment in Bitmain Technologies Holding Company for $3.9 million and recorded a gain on sale of investment of
$1.6 million.

For the year ended December 31, 2023, we
sold 60% of our investment in Bitmain Technologies Holding Company for $14.1 million and all of our investment in Bitdeer Technologies
Holding Company for $1.7 million. The Company recorded a total gain on sale of investment of $6.8 million. See Note 6 to the consolidated
financial statements for further information.

Change in fair value of warrants liabilities

Warrants are remeasured at fair value with changes
in fair value recorded in earnings in each reporting period. For the years ended December 31, 2024 and 2023, we recorded gain on the change
in fair value of warrant liabilities of $0.01 million.

Benefit from income taxes

Our benefit from income taxes was $1.3 million
for the year ended December 31, 2024 compared to $2.7 million for the year ended December 31, 2023. The decrease in our benefit from
income taxes was primarily due to a non-recurring state income position the Company settled favorably in 2023.

Net loss

For the year ended December 31, 2024, we
recorded a net loss of $43.3 million, as compared to a net loss of $59.0 million for the same period in 2023. The decrease in
net loss is primarily driven by a decline in SG& A.

Year Ended December 31, 2023 Compared to Year
Ended December 31, 2022

For
a discussion of our results of operations for the year ended December 31, 2023, compared to the year ended December 31, 2022, see “ Item
5. Operating and Financial Review and Prospects - A. Results of Operations - Year Ended December 31, 2023, Compared to Year
Ended December 31, 2022” of our Annual Report on Form 20-F as of and for the year ended December 31, 2023.

Non-GAAP Financial Measures

We have included GMV and Adjusted EBITDA, non-GAAP
financial measures, in this annual report. We believe that these are key measures used by our management and board of directors to evaluate