Company: NEGG
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001213900-25-036055
Chunk: 144

Company: Newegg Commerce, Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 10
Chunk 144
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 will
be subject to U. S. federal income tax on a net basis at the regular graduated rates. A Non-U. S. holder that is a corporation also may
be subject to a branch profits tax at a rate of 30% (or such lower rate specified by an applicable income tax treaty) on such effectively
connected dividends, as adjusted for certain items.

Non-U. S. holders should consult their tax advisors
regarding any applicable tax treaties that may provide for different rules.

Sale, Taxable Exchange or Other Taxable Disposition
of Our Common Shares

Subject to the discussion below under “ Non-U. S.
Holders - Redemption of Our Common Shares,” a Non-U. S. holder will not be subject to U. S. federal income tax on any gain realized
upon the sale, taxable exchange or other taxable disposition of our common shares unless:

  the gain is effectively connected with the Non-U. S. holder’s conduct of a trade or business within the United States (and, if required by an applicable income tax treaty, the Non-U. S. holder ...  

  the Non-U. S. holder is a nonresident alien individual present in the United States for 183 days or more during the taxable year of the disposition and certain other requirements are met; or  

  our common shares constitute a U. S. real property interest, or USRPI, by reason of our status as a U. S. real property holding corporation, or USRPHC, for U. S. federal income tax purposes.  

Gain described in the first bullet point above
generally will be subject to U. S. federal income tax on a net income basis at the regular graduated rates. A Non-U. S. holder that is a
corporation also may be subject to a branch profits tax at a rate of 30% (or such lower rate specified by an applicable income tax treaty)
on such effectively connected gain, as adjusted for certain items.

Gain described in the second bullet point above
will be subject to U. S. federal income tax at a rate of 30% (or such lower rate specified by an applicable income tax treaty), which may
be offset by U. S. source capital losses of the Non-U. S. holder, provided the Non-U. S. holder has timely filed U. S. federal income tax
returns with respect to such losses.

With respect to the third bullet point above,
we believe we currently are not, and do