Company: NEGG
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001213900-25-036055
Chunk: 53

Company: Newegg Commerce, Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 3
Chunk 53
---
 such dividend.

As a company incorporated in the British
Virgin Islands, we are permitted to adopt certain home country practices in relation to corporate governance matters that differ significantly
from Nasdaq’s corporate governance listing standards. These practices may afford less protection to shareholders than they would
enjoy if we complied fully with Nasdaq’s corporate governance listing standards.

As a BVI company listed on Nasdaq, we are subject
to Nasdaq’s corporate governance listing standards. However, Nasdaq rules permit a foreign private issuer like us to follow the
corporate governance practices of its home country. Certain provision in the Companies Act relating to corporate governance in the BVI,
which is our home country, may differ significantly from Nasdaq’s corporate governance listing standards. We intend to follow the
relevant provisions in the Companies Act in lieu of the following corporate governance requirements of Nasdaq that listed companies must
have for as long as we qualify as a foreign private issuer: (i) a majority of independent directors; (ii) a nominating/corporate governance
committee composed entirely of independent directors; and (iii) a compensation committee composed entirely of independent directors. To
the extent we choose to follow home country practice in the future, our shareholders may be afforded less protection than they otherwise
would enjoy under Nasdaq’s corporate governance listing standards applicable to U. S. domestic issuers.

We are a foreign private issuer within the
meaning of the rules under the Exchange Act, and as such we are exempt from certain provisions applicable to U. S. domestic public companies.

Because we qualify as a foreign private issuer
under the Exchange Act, we are exempt from certain provisions of the securities rules and regulations in the United States that are applicable
to U. S. domestic issuers, including:

  the rules under the Exchange Act requiring the filing with the SEC of quarterly reports on Form 10-Q or current reports on Form 8-K;  
 ────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────

  the sections of the Exchange Act regulating the solicitation of proxies, consents or authorizations in respect of a security registered under the Exchange Act;  

  the sections of the Exchange Act requiring insiders to file public reports of their share ownership and trading activities and liability for insiders who profit from trades made in a short peri...  

  the rules under Regulation FD governing selective disclosure rules of material nonpublic information.  

We are and will continue to be required to file
an annual report on Form