Company: NEGG
Filing Date: 2025-07-15
Form Type: 424B5
Source: 0001213900-25-063944
Chunk: 22

Company: Newegg Commerce, Inc.
Filing Date: 2025-07-15
Form: 424B5
Chunk 22
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 415 promulgated under the Securities Act. We may instruct the Agent not to sell Common Shares if the sales cannot be effected at or above the price designated by us from time to time. We or the Agent may suspend the offering of Common Shares upon notice and subject to other conditions.

Each time we wish to issue and sell Common Shares under the Sales Agreement, we will notify the Agent of the number or dollar value of Common Shares to be issued, the dates on which such sales are anticipated to be made, any minimum price below which sales may not be made and other sales parameters as we deem appropriate. Once we have so instructed the Agent, unless it declines to accept the terms of the notice or suspends sales under the notice for any reason, in its sole discretion, the Agent has agreed to use its commercially reasonable efforts consistent with its normal trading and sales practices, applicable laws and regulations and the rules of the Nasdaq Stock Market LLC to sell such Common Shares up to the amount specified on such terms. The obligations of the Agent under the Sales Agreement to sell our Common Shares is subject to a number of conditions that we must meet.

We will pay the Agent commission equal to 3% of the gross proceeds from the sale of Common Shares offered hereby for its services in acting as agent in the sale of Common Shares. In addition, we have agreed to reimburse certain expenses of the Agent in an amount not to exceed $125,000 in connection with the establishment of this “at the market offering,” and $15,000 for each periodic update of such offering. In accordance with Financial Industry Regulatory Authority, Inc. Rule 5110, these fees and reimbursed expenses are deemed sales compensation in connection with this offering. We estimate that the total expenses for the offering, excluding compensation payable to the Agent under the terms of the Sales Agreement, will be approximately $300,000.

Settlement for sales of Common Shares will generally occur on the first trading day following the date on which any sales are made, or on some other date that is agreed upon by us and the Agent in connection with a particular transaction, in return for payment of the net proceeds to us. There is no arrangement for funds to be received in an escrow, trust or similar arrangement.

In connection with the sale of our Common Shares on our behalf, the Agent will be deemed to be an “underwriter” within the meaning of the Securities Act and the compensation of the Agent will be deemed to be underwriting commissions or discounts. We have agreed to provide indemnification and contribution