Company: NEGG
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001213900-25-036055
Chunk: 52

Company: Newegg Commerce, Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 3
Chunk 52
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 would as public shareholders of a company incorporated in the United States. For a discussion of significant differences
between the provisions of the Companies Act and the laws applicable to companies incorporated in the United States and their shareholders,
see “ Description of Shares - Differences between the Law of Different Jurisdictions.”

Because we do not expect to pay dividends
in the foreseeable future, you must rely on a price appreciation of the common shares for a return on your investment.

We currently intend to retain most, if not all,
of our funds and any future earnings to fund the development and growth of our business. As a result, we do not expect to pay any cash
dividends in the foreseeable future. Therefore, you should not rely on an investment in the common shares as a source for any future dividend
income.

Our Board has complete discretion as to whether
to distribute dividends, subject to certain requirements of BVI law. In addition, our shareholders may by ordinary resolution declare
a dividend, but no dividend may exceed the amount recommended by our directors. Under BVI law, a BVI company may pay a dividend out of
either profit or share premium account, provided that in no circumstances may a dividend be paid if this would result in the company being
unable to pay its debts as they fall due in the ordinary course of business. Even if our Board decides to declare and pay dividends, the
timing, amount and form of future dividends, if any, will depend on our future results of operations and cash flow, our capital requirements
and surplus, the amount of distributions, if any, received by us from our subsidiaries, our financial condition, contractual restrictions,
and other factors deemed relevant by our Board. Accordingly, the return on your investment in the common shares will likely depend entirely
upon any future price appreciation of the common shares. There is no guarantee that the common shares will appreciate in value or even
maintain the price at which you purchased the common shares. You may not realize a return on your investment in the common shares and
you may even lose your entire investment in the common shares. Additionally, because we are a holding company, our ability to pay dividends
on our common shares may be limited by restrictions on the ability of our subsidiaries to pay dividends or make distributions to us, including
restrictions that are imposed under the terms of the agreements governing our subsidiaries’ loan and credit facilities. There is
no assurance that future dividends will be paid, and if dividends are paid, there is no assurance with respect to the amount of