Company: NEGG
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001213900-25-036055
Chunk: 173

Company: Newegg Commerce, Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 18
Chunk 173
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. Cash equivalents are all highly liquid investments with original
maturities of three months or less. The Company maintains its cash in bank deposits which, at times, may exceed federally insured
limits. The Company has not experienced any losses in such accounts. The Company believes it is not exposed to any significant credit
risk of cash and cash equivalents. Amounts receivable from credit card processors are also considered cash equivalents as they are both
short term and highly liquid in nature and are typically converted to cash within three business days. Amounts due to the Company
from credit card processors that are classified as cash and cash equivalents totaled $6.3million and $12.9million at December 31,
2024 and 2023, respectively.

e. Restricted Cash

Restricted cash includes amounts deposited
in commercial bank time deposits and money market accounts to collateralize the Company’s deposit obligations. The Company considers
restricted cash related to obligations classified as current liabilities to be current assets and restricted cash related to obligations
classified as long-term liabilities as noncurrent assets. At December 31, 2024 and 2023, the Company had $3.5million and $4.0million,
respectively, in restricted cash, primarily related to collateralization required pursuant to a credit card agreement. The restricted
cash balance is classified as a current asset in the consolidated balance sheets.

The following is a reconciliation of
cash and cash equivalents, and restricted cash reported to the consolidated statemen to the consolidated statements of cash flows (in
thousands):

                                                            As of December 31,                                                            
                                                            2024                                2023                   2022               
 ──────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Cash and cash equivalents                                 $                       96,255      $         102,512      $         122,559  
  Restricted cash                                                                    3,487                  3,962                    947  
  Total cash and cash equivalents, and restricted cash      $                       99,742      $         106,474      $         123,506  

f. Accounts Receivable

Accounts receivable consist primarily
of vendor receivables, which do not bear interest, and represent amounts due for marketing development funds, cooperative advertising,
price protection and other incentive programs offered to the Company by certain vendors. Accounts receivable also include receivables
from business customers generally, on 30-day to 60-day credit terms. The Company estimates the provision