Company: NEGG
Filing Date: 2025-07-15
Form Type: 6-K
Source: 0001213900-25-063935
Chunk: 4

Company: Newegg Commerce, Inc.
Filing Date: 2025-07-15
Form: 6-K
Chunk 4
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 are finalized and filed with the SEC.
The preliminary financial data included herein has been prepared by, and is the responsibility of, management. Newegg’s independent
registered public accounting firm has not audited, reviewed, compiled, or applied agreed-upon procedures with respect to the preliminary
financial data and, accordingly, does not express an opinion or any other form of assurance with respect thereto. These estimates should
not be viewed as a substitute for financial statements prepared in accordance with accounting principles generally accepted in the United
States. They do not reflect any updates following June 30, 2025 or consider any events or circumstances after the date that each was prepared,
and are not necessarily indicative of the results to be achieved in any future period. Accordingly, undue reliance should not be placed
on these preliminary estimates. Newegg assumes no duty to update these preliminary estimates except as required by law.

Other Events

On June 16, 2025, East
West Bank foreclosed upon 662,408 common shares of the Company that were previously owned by Tekhill USA LLC (“Tekhill”).
Tekhill is affiliated with Mr. Fred Faching Chang, who served on the Company’s board of directors (the “Board”) until
his resignation on July 8, 2025, as discussed below. These shares were pledged by Tekhill to East West Bank as collateral to support a
delinquent $15 million loan made by East West Bank to Tekhill. After the foreclosure, East West Bank sold these shares on the open
market. East West Bank informed the Company that it is currently seeking foreclosure on an additional 950,000 common shares held by Tekhill, which
it intends to sell on the open market.

Tekhill and Mr. Chang
are “Legacy Shareholders”, and Mr. Chang serves as the “Minority Representative”, as such terms are defined in
the Amended and Restated Memorandum and Articles of Association (“M&As”) of the Company. Under the M&As, for so long
as the Legacy Shareholders hold more than two sevenths (2/7) of the total voting power of all outstanding shares or other equity interests
of the Company, the Minority Representative is entitled to appoint and replace three directors on the Board. If the Legacy Shareholders
hold less than or equal to two sevenths (2/7) and more than one seventh (1/7) of the total voting power of all outstanding shares or other
equity interests of the Company,