Company: NEGG
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001213900-25-036055
Chunk: 48

Company: Newegg Commerce, Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 3
Chunk 48
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 expend a significant amount of resources to investigate such allegations and/or defend ourselves.
We may not be able to defend against any such short seller attacks and may be constrained in the manner in which we can proceed against
the relevant short seller by principles of freedom of speech, applicable state law or issues of commercial confidentiality.

Investors may have difficulty enforcing
judgments against us, our directors and management.

We are incorporated under the laws of the BVI
and many of our directors reside outside the United States. Moreover, many of these persons do not have significant assets in the United
States. As a result, it may be difficult or impossible to effect service of process within the United States upon these persons, or to
recover against us or them on judgments of U. S. courts, including judgments predicated upon the civil liability provisions of the U. S.
federal securities laws.

The courts of the BVI would not automatically
enforce judgments of U. S. courts obtained in actions against us or our directors and officers, or some of the experts named herein, predicated
upon the civil liability provisions of the U. S. federal securities laws, or entertain actions brought in the BVI against us or such persons
predicated solely upon U. S. federal securities laws. Further, there is no treaty in effect between the United States and the BVI providing
for the enforcement of judgments of U. S. courts in civil and commercial matters, and there are grounds upon which BVI courts may decline
to enforce the judgments of U. S. courts. Some remedies available under the laws of U. S. jurisdictions, including remedies available under
the U. S. federal securities laws, may not be allowed in the BVI courts if contrary to public policy in the BVI. Because judgments of U. S.
courts are not automatically enforceable in the BVI, it may be difficult for you to recover against us or our directors and officers based
upon such judgments.

In addition, under PRC law, a foreign judgment,
which does not otherwise violate basic legal principles, state sovereignty, safety or social public interest, may be recognized and enforced
by a PRC court, based either on treaties between China and the country where the judgment is made or on principles of reciprocity between
jurisdictions. As currently there exists no treaty or other form of reciprocity between China and the United States or the BVI governing
the recognition and enforcement of judgments, including those predicated upon the liability provisions of