Company: NEGG
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001213900-25-036055
Chunk: 109

Company: Newegg Commerce, Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 6
Chunk 109
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31, 2023 was RMB150 million in RMB-denominated loans plus USD$66.5 million in U. S. dollar-denominated loans. In May 2020, BOC
filed several lawsuits against Hangzhou Lianluo, Digital Grid, Beijing Digital Grid Technology Co., Ltd. and Mr. Zhitao He in the Hangzhou
Intermediate People’s Court in China alleging that Hangzhou Lianluo has failed to repay the loans when due and is in breach of the
loan agreements. The court has ruled that the loans are in default in a final, non-appealable judgment. On December 19, 2022, Digital
Grid, BOC, Newegg, and Hangzhou Lianluo entered into a supplemental agreement (the “ Supplemental Agreement”) to agree upon
procedures to temporarily remove BOC’s lien on Digital Grid’s Newegg Common Shares to enable their sale and use of proceeds
to repay BOC. Such sales of our common stock could cause the market price of our common stock to drop significantly.

In addition, on April 11, 2023, Hangzhou Lianluo
announced that the Industrial and Commercial Bank of China (“ ICBC”) filed a lawsuit against Hangzhou Lianluo in the Hangzhou
Intermediate People’s Court in China alleging that Hangzhou Lianluo failed to repay when due three separate loans, provided by ICBC
to Hangzhou Lianluo, and was in breach of the related loan agreements. The estimated total amount owed under the loans, including interest,
fees, expenses and penalties, as of December 31, 2023 was approximately RMB485 million. Hangzhou Lianluo did not pledge any Common Shares
owned by it or Digital Grid as collateral to support the ICBC loans. As disclosed by Hangzhou Lianluo on February 26, 2024, the court
has ruled in a court judgment that Hangzhou Lianluo owed ICBC RMB332 million (including interest) under one of such loans.

As of the date hereof, to the best of our knowledge,
no Common Shares have been sold by Hangzhou Lianluo in connection with the repayment of the BOC or ICBC loans.

To the best of our knowledge, except as disclosed
herein, none of our directors or executive officers has been convicted in a criminal proceeding, excluding traffic violations or similar
misdemeanors, or