Company: NEGG
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001213900-25-036055
Chunk: 186

Company: Newegg Commerce, Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 18
Chunk 186
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0.7million. Mountain and the unrelated third-party buyer entered into a share purchase agreement
on December 29, 2022. The Company reached a mutual understanding with Mountain that the Company does not expect to receive any proceeds
as part of the final sale and dissolution of Mountain as of December 31, 2022. The Company then reviewed the investment in Mountain and
determined an impairment existed as of December 31, 2022 and wrote off the full remaining balance of $2.3million in the statement of
operations. Mountain was fully dissolved in 2023.

In August 2018, the Company purchased11,506,695Series B+ Preferred shares in Bitmain Technologies Holding Company, a privately-held company incorporated in the Cayman
Islands, for a total consideration of $15.0million. Bitmain Technologies Holding Company and its subsidiaries (together “ Bitmain”)
primarily design and sell cryptocurrency mining hardware, operate cryptocurrency mining pools, and provide mining farm services. As this
represents an investment in equity securities without readily determinable fair values, the Company elected the measurement alternative
under ASU 2016-01 to measure this investment at cost, less any impairment, plus or minus changes resulting from observable price
changes in orderly transactions for the identical or a similar investment of the same issuer.

In 2024, 2023, and 2022, Bitmain repurchased
a total of6,689,520,26,758,080, and11,149,200, respectively, Series B+ shares of Bitmain held by the Company’s subsidiary, Newegg
Tech Corporation at various prices in accordance with Bitmain’s articles of association. The Company sold all its investment in
Bitmain in 2024. As a result, the Company recognized a total gain on sale of investment of $1.6million, $6.8million, and $1.7million
in 2024, 2023, and 2022, respectively.

The Company reviewed the investment
in Bitmain for impairment as of December 31, 2023 by evaluating if events or circumstances have occurred that may have a significant
adverse effect on the fair value of the investment. The Company concluded there were no impairment indicators as of December 31,
2023. In the absence of observable price changes in orderly transactions for the identical or a similar investment of the same issuer
during the years ended December 31, 2023, the carrying