Company: NEGG
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001213900-25-036055
Chunk: 182

Company: Newegg Commerce, Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 18
Chunk 182
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 located primarily in the United States, which could source their products from other countries, including
China. The majority of products that the Company sells are available through multiple channels. Details of vendors which accounted for
10% or more of total purchases during the year ended December 31, 2024, 2023, and 2022:

                Percentage of total purchases                          
                for year ended                                         
                December 31,                                           
                2024                                                   
  Vendor A                                         12      14      12  
  Vendor B                                         11      13      14  
  Vendor C                                          8       6      14  
  Vendor D                                          8       9      12  

The Company has receivables due from
vendors related to its advertising and promotional vendor incentive programs and receivables due from business customers with credit terms.
Details of vendors which accounted for 10% or more of net receivables as of December 31, 2024 and 2023:

                Percentage of accounts receivable                            
                as of December 31,                                           
                2024                                           2023          
 ─────────────────────────────────────────────────────────────────────────────
  Vendor A                                             17                15  
  Vendor B                                             14                 8  
  Vendor C                                              3                11  

As of December 31, 2024 and 2023, no
receivables from business customers with credit terms exceeded 10% of net receivables.

F-14

w. Foreign Currency Translation

The Company’s reporting currency
is U. S dollars. The functional currency of the Company is the U. S. dollar. The financial statements of foreign subsidiaries and affiliates
where the local currency is the functional currency are translated into U. S. dollars using exchange rates in effect at the balance
sheet date for assets and liabilities and average exchange rates during the year for revenues and expenses. Any gain or loss on currency
translation is included in stockholders’ equity as accumulated other comprehensive income.

x. Recent Accounting Pronouncements

In November 2023, the FASB issued Accounting
Standards Update (ASU) No. 2023-07 Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. Among other
new disclosure requirements, ASU 2023-07 requires companies to disclose significant segment expenses that are regularly provided to the
chief operating decision maker. All disclosure requirements under ASU 2023-