Company: NEGG
Filing Date: 2025-07-15
Form Type: 424B5
Source: 0001213900-25-063944
Chunk: 15

Company: Newegg Commerce, Inc.
Filing Date: 2025-07-15
Form: 424B5
Chunk 15
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generally constitute a dividend for U.S. federal income tax purposes to the extent paid from our current or accumulated earnings and profits,
as determined under U.S. federal income tax principles. Distributions in excess of current and accumulated earnings and profits will constitute
a return of capital that will be applied against and reduce (but not below zero) the U.S. holder’s adjusted tax basis in our Common
Shares. Any remaining excess will be treated as gain realized on the sale or other disposition of our Common Shares and will be treated
as described under “Sale or Other Taxable Disposition” below.

Dividends we pay to a U.S. holder that is a taxable
corporation will generally qualify for the dividends received deduction if the requisite holding period is satisfied. With certain exceptions
and provided certain holding period requirements are met, dividends we pay to a non-corporate U.S. holder may constitute “qualified
dividend income” that will be subject to tax at the applicable tax rate accorded to long-term capital gains.

Sale or Other Taxable Disposition

Upon a sale or other taxable disposition of our
Common Shares, a U.S. holder will generally recognize capital gain or loss in an amount equal to the difference between the amount realized
and the U.S. holder’s adjusted tax basis in such Common Shares. Any such capital gain or loss will generally be long-term capital
gain or loss if the U.S. holder’s holding period for the Common Shares so disposed of exceeds one year. Long-term capital gains
recognized by non-corporate U.S. holders will be eligible to be taxed at reduced rates. The deductibility of capital losses is subject
to limitations.

<div align='center'>S-11</div>

Non-U.S. Holders

For purposes of this discussion, a Non-U.S. holder
is any beneficial owner of our Common Shares that is neither a U.S. holder nor an entity or arrangement treated as a partnership for U.S.
federal income tax purposes.

Taxation of Distributions

If we pay a distribution in cash or other property
(other than certain distributions of our Common Shares or rights to acquire our Common Shares) to a Non-U.S. holder, such distributions
will generally constitute a dividend, return of basis, or gain for U.S. federal income tax purposes in the manner described above under
“U.S. Holders – Taxation of Distributions” and, in the case of distributions giving rise to gain, below under “Sale or Other Tax