Company: NEGG
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001213900-25-036055
Chunk: 92

Company: Newegg Commerce, Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 4A
Chunk 92
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, securities, property, and financial assets, contract rights, and ledger sheets, as defined in the credit
agreement. To maintain availability of funds under the credit agreement, we pay on a quarterly basis, an unused commitment fee of 0.15%
per annum prior to the 2024 amendment or, after the 2024 amendment, 0.20% per annum, on the unused amount for the facility. The credit
facility contains customary covenants, including covenants that limit or restrict our ability to incur capital expenditures and lease
payments, make certain investments, and enter into certain related-party transactions. The credit facility also requires us to maintain
certain minimum financial ratios and maintain an operational banking relationship with the financial institutions. As of December 31,
2024 and December 31, 2023, we were in compliance with all covenants related to the line of credit.

  Research and Development, Patents and Licenses, etc.  
 ────────────────────────────────────────────────────────

See Item 4. B under the subheadings, “ Technology”
and “ Intellectual Property.”

  Trend information  
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Other than as disclosed in this annual report,
we are not aware of any trends, uncertainties, demands, commitments or events for the current fiscal year that are reasonably likely to
have a material effect on our net revenues, income, profitability, liquidity or capital resources, or that caused the disclosed financial
information to be not necessarily indicative of future operating results or financial conditions.

  Critical Accounting Estimates  
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Our consolidated financial statements are prepared
in accordance with GAAP. The preparation of our financial statements requires us to make estimates and assumptions that affect the reported
amounts of assets, liabilities, net sales, costs and expenses, as well as the disclosure of contingent assets and liabilities and other
related disclosures. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable
under the circumstances, the results of which form the basis for making judgments about carrying values of our assets and liabilities
that are not readily apparent from other sources. In many instances, we could have reasonably used different accounting estimates. Actual
results could differ from those estimates, and we include any revisions to our estimates in our results for the period in which the actual
amounts become known.

We believe the critical accounting policies described
below affect the more significant judgments and estimates used in the preparation of our consolidated financial statements. Accordingly