Company: NEGG
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001213900-25-036055
Chunk: 184

Company: Newegg Commerce, Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 18
Chunk 184
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 a recurring basis include cash and cash equivalents, and restricted cash. The carrying
amounts of cash and cash equivalents and restricted cash approximate their fair value.

The Company’s financial assets
that are measured at fair value on a non-recurring basis when impairment is identified include equity method investment and investment
in equity securities without readily determinable fair value not accounted for under the equity method. The fair values of these investments
are determined based on valuation techniques using the best information available, and may include quoted market prices, market comparables,
and discounted cash flow projections. An impairment charge is recorded when the cost of the investment exceeds its fair value. This is
considered a Level 3 fair value measurement. See Note 6 - Investment for further information regarding the fair value measurement
of these investments.

F-15

The Company’s notes receivable
from affiliate, loans from affiliate (see Note 17 - Related Party Transactions), line of credit and long-term debt are carried
at cost with fair value disclosed, if required. The fair value of the amounts outstanding under the line of credit and long-term debt
with a floating interest rate approximates the carrying value primarily due to the variable nature of the interest rate of the instruments,
which is considered a Level 2 fair value measurement. The fair value of the amounts outstanding under notes receivable from affiliate,
loans from affiliate, and line of credit with a fixed interest rate is estimated based on the discounted amount of the contractual future
cash flows using an appropriate discount rate. This is considered a Level 3 fair value measurement.

The following is a summary of the carrying
amounts and estimated fair values of these financial instruments as of December 31, 2024 and 2023 (in thousands):

                                                 Carrying           Estimated          Carrying              
                                                 Value             Fair Value             Value              
 ─────────────────────────────────────────────────────────────────────────────────────────────────────────────
                                                 As of                                    As of              
  Notes receivable from affiliate (Level 3)      $15,000              $15,000           $15,000      15,000  
  Line of credit (Level 2)                       $4,614                $4,614            $4,802       4,802  
  Line of credit (Level 3)                       $2,455                $2,370            $2,528       2,435  
  Long-term debt (Level 2)                       $—                        $—            $1,378       1,