Company: NEGG
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001213900-25-036055
Chunk: 45

Company: Newegg Commerce, Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 3
Chunk 45
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-cash consideration.

We may be subject to shareholder litigation
due to the volatility in the price of our common shares, which may result in substantial costs and a diversion of our management’s
attention and resources.

In the past, shareholders of a public company
often brought securities class action suits following periods of instability in the market price of a company’s securities. If we
were involved in a class action suit, it could divert a significant amount of our management’s attention and other resources from
our business and operations, which could harm our results of operations and require us to incur significant expenses to defend the suit.
Any such class action suit, whether or not successful, could harm our reputation and restrict our ability to raise capital in the future.
In addition, if a claim is successfully made against us, we may be required to pay significant damages, which could have a material adverse
effect on our financial condition and results of operations.

If we fail to maintain compliance with Nasdaq
Listing Rules, we may be delisted from Nasdaq, which would result in a limited public market for trading our shares and make obtaining
future debt or equity financing more difficult for us.

Our common shares are traded and listed on Nasdaq under the symbol
“ NEGG.” However, there is no assurance that we will be able to continue to maintain compliance with Nasdaq continued listing
requirements. The Nasdaq Listing Rules require, among other things, that listed securities maintain a minimum bid price of $1.00 per share
(the “ Minimum Bid Price Requirement”), and failure to meet the Minimum Bid Price Requirement within specified compliance periods
following receipt of a deficiency notice may result in delisting. For example, on November 6, 2023, we received a letter from Nasdaq notifying
us that we were not in compliance with the Minimum Bid Price Requirement, which was subsequently cured on December 12, 2023. Additionally,
on April 7, 2025, we effected a twenty-for-one combination of the Company’s common shares, which was intended to enable the Company
to continue to meet the Minimum Bid Price Requirement. On April 22, 2025, the Company received a notification letter from Nasdaq notifying
the Company that it had regained compliance with the Minimum Bid Price Requirement. However, if we fail to comply with this, or any other,
Nasdaq Listing Rule in the future, our common shares may lose their status on Nasdaq and they would likely be traded on the over-the-counter
market, including the Pink