Company: NEGG
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001213900-25-036055
Chunk: 194

Company: Newegg Commerce, Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 18
Chunk 194
---
 apportioned state NOL carryforwards
available to reduce future taxable income, subject to the80% NOL rule introduced by the TCJA of 2017. The state NOL carryforwards begin
to expire in 2028. The Company has $0.6million of NOL carryforwards in China as of December 31, 2024. The Company has $8.4million
of NOL carryforwards in Taiwan, which will begin to expire in 2026. A partial valuation allowance was recorded on the NOLs in Taiwan.
The Company has not provided for deferred income taxes on undistributed earnings of its foreign subsidiaries, as these amounts are considered
indefinitely reinvested outside the United States. It is not practicable to determine the estimated income tax liability that might
apply if these earnings were to be repatriated.

A reconciliation of the U. S. federal
statutory tax rate to the Company’s effective tax rate is as follows:

                                                         Year ended December 31,                            
                                                                            2024                            
 ────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Federal taxes at statutory rate                                          21.00        21.00        21.00  
  State taxes, net of federal benefit                                       2.63         2.50         2.48  
  Permanent items:                                                                                          
  Other nondeductible items                                                 0.14       ( 0.35       ( 0.30  
  Subpart F income                                                        ( 0.57       ( 1.55       ( 0.80  
  Stock-based compensation                                               ( 12.87      ( 10.94      ( 10.88  
  Foreign withholding tax                                                 ( 2.89       ( 0.82            —  
  Research & development credit                                             0.64         0.34         1.57  
  Global intangible low-taxed income                                           —       ( 0.46            —  
  Foreign rate differential and foreign tax credits                         1.36       ( 1.39       ( 0.74  
  Canada Provision                                                             —         1.92            —  
  Change in valuation allowance – U. S. Federal                           ( 5.24       ( 5.61      ( 34.09  
  Change in valuation allowance – U. S. States                            ( 2.89       ( 0.07      (