Company: NEGG
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001213900-25-036055
Chunk: 145

Company: Newegg Commerce, Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 10
Chunk 145
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 not anticipate becoming, a USRPHC. Because the determination of whether we are a USRPHC depends,
however, on the fair market value of our USRPIs relative to the fair market value of our non-U. S. real property interests and our other
business assets, there can be no assurance we currently are not a USRPHC or will not become one in the future. Even if we are or were
to become a USRPHC, gain arising from the sale or other taxable disposition by a Non-U. S. holder of our common shares will not be subject
to U. S. federal income tax if our common shares is “regularly traded,” as defined by applicable Treasury Regulations, on an
established securities market, and such Non-U. S. holder owned, actually and constructively, 5% or less of our common shares throughout
the shorter of the five-year period ending on the date of the sale or other taxable disposition and the Non-U. S. holder’s holding
period.

Non-U. S. holders should consult their tax advisors
regarding potentially applicable income tax treaties that may provide for different rules.

Redemption of Our Common Shares

The characterization for U. S. federal income tax
purposes of the redemption of a Non-U. S. holder’s common shares generally will correspond to the U. S. federal income tax characterization
of such a redemption of a U. S. holder’s common shares, as described under “ U. S. Holders - Redemption of Our common shares”
above, and the consequences of the redemption to the Non-U. S. holder will be as described above under “ Non-U. S. Holders - 
Taxation of Distributions” and “ Non-U. S. Holders - Sale, Taxable Exchange or Other Taxable Disposition of Our common
shares,” as applicable. Because it may not be certain at the time a Non-U. S. holder is redeemed whether such Non-U. S. holder’s
redemption will be treated as a sale of shares or a distribution constituting a dividend, and because such determination will depend in
part on a Non-U. S. holder’s particular circumstances, we or the applicable withholding agent may not be able to determine whether
(or to what extent) a Non-U. S. holder is treated as receiving a dividend for U. S. federal income tax purposes. Therefore, we or the applicable
withholding agent may withhold tax at a