Company: NEGG
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001213900-25-036055
Chunk: 15

Company: Newegg Commerce, Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 3
Chunk 15
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 Newegg may arise from
time to time. Negative comments about our online platforms, the products and services offered by us and our Marketplace sellers or our
management may appear in internet postings and other media sources from time to time, and there is no assurance that other types of negative
publicity of a more serious nature will not arise in the future. For example, if our customer service representatives fail to satisfy
the individual needs of the customers, the customers may become disgruntled and disseminate negative comments about our customer service.
In addition, our Marketplace sellers and brand partners may also be subject to negative publicity for various reasons, such as customers’
complaints about the quality of their products and related services or other public relations incidents, which may adversely affect the
sales of their products through Newegg and indirectly affect our reputation. Moreover, negative publicity about other online retailers
or the e-commerce industry in general may arise from time to time and cause customers to lose confidence in the products and services
Newegg offers. Any such negative publicity, regardless of veracity, may have a material adverse effect on our business, reputation and
financial condition.

Our business, operating results, and cash
flows may be adversely impacted by inflation.

Labor and supply chain constraints have in the
past, and may in the future, contribute to a volatile inflationary environment resulting in significant increases to the cost of components,
labor and freight costs and other expenses. Inflationary pressures have affected, and may continue to affect, wages, the cost and our
ability to obtain products, the price of our goods and services, our ability to meet customer demand, discretionary consumer spending
that may lead to lesser demand for our products, our gross margins and operating profit. If we are unable to successfully manage the effects
of inflation, our business, operating results, cash flows and financial condition may be adversely affected. In addition, inflation may
amplify or exacerbate many of the other risks discussed in this “ Risk Factors” section.

We previously identified material weaknesses
in our internal control over financial reporting which, although currently remediated, could recur and affect the reliability of our consolidated
financial statements and have other adverse consequences.

As a public company, we are subject to the reporting
requirements of the Securities Exchange Act of 1934, as amended (the “ Exchange Act”), the Sarbanes-Oxley Act of 2002, as amended
(the “ Sarbanes-Oxley Act”). The Sarbanes-Oxley Act