Company: NEGG
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001213900-25-036055
Chunk: 114

Company: Newegg Commerce, Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 6
Chunk 114
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 persons)      18,995,892      89.8  

  Less than 1% of total outstanding shares  

  (1)      Comprised of (i) 11,141,079 Common Shares owned by Digital Grid, (ii) 23,669 Common Shares and warrants to purchase 6,250 Common Shares at an exercise price of $352.00/share owned by Hangzhou L...  

The Common Shares owned by Digital
Grid have been pledged to Bank of China Limited Zhejiang Branch, or BOC, as collateral to support working capital loans and letters of
credit provided by BOC to Hangzhou Lianluo. The loans have been guaranteed jointly and severally by Beijing Digital Grid Technology Co.,
Ltd., a subsidiary of Hangzhou Lianluo, and by Mr. Zhitao He. The total principal amount owed under these loans as of March 31, 2025 was
RMB147 million in RMB plus $66.5 million in U. S. dollars. 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 loan is in default
in a final, non appealable judgment.

  (2)      Comprised of (i) 5,513,297 Common Shares held by Tekhill USA, LLC, (ii) 457,928 Common Shares held by Nabal Spring, LLC, and (iii) vested stock options exercisable for 397,236 Common Shares at ...  

Tekhill USA, LLC previously pledged
1,635,676 Common Shares as collateral to Preferred Bank, securing a loan from Preferred Bank to Fred Chang with a principal amount of
$7.1 million. In early 2022, this loan was paid off and the pledge of common shares was released. Contemporaneously, Fred Chang entered
into a new loan with East West Bank, pursuant to which Tekhill USA, LLC pledged a total of 910,415 common shares as collateral to East
West Bank to secure a loan from East West Bank to Fred Chang with a principal amount of $15.0 million.

  (3)      Comprised of (i) 154,520