Company: NEGG
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001213900-25-036055
Chunk: 94

Company: Newegg Commerce, Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 4A
Chunk 94
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 that the tax position no longer meets the more-likely-than-not threshold of being sustained. The
Company accrues interest and penalties related to unrecognized tax benefits in income tax expense.

Expense and Valuation of Shares of our Common
Stock

The measurement and recognition of compensation
expense for all stock-based payment awards made to employees, consultants and directors, including employee stock options and restricted
stock, is based on estimated fair value of the awards on the date of grant. The value of awards that are ultimately expected to vest is
recognized as expense on a straight-line basis over the requisite service periods in the consolidated statements of operations.

For detailed discussion on stock-based compensation,
see Note 13 to the consolidated financial statements.

Recent Accounting Pronouncements

For detailed discussion on recent accounting
pronouncements, see Note 3 to the consolidated financial statements.

Item 6. Directors, Senior Management and Employees