Group 1 - The core viewpoint of the article highlights Newegg's stock performance and financial results, indicating a significant drop in revenue while showing an increase in net profit [1] - As of July 31, Newegg's stock price increased by 6.31% to $47.809 per share, with a trading volume of $2.0304 million and a total market capitalization of $927 million [1] - Financial data reveals that Newegg's total revenue for the year ending December 31, 2024, is projected to be $1.236 billion, representing a year-over-year decrease of 17.46%, while the net profit attributable to shareholders is expected to be -$43.328 million, reflecting a year-over-year increase of 26.55% [1] Group 2 - Newegg Commerce, Inc., formerly known as Lianluo Smart Limited, is a leading e-commerce company based in Industry, California, specializing in direct sales and online marketplace platforms for IT computer components, consumer electronics, entertainment, smart home, and gaming products [1] - The company also provides certain third-party logistics services globally [1]

7月30日，新蛋(NEGG)盘中上涨20.27%，截至00:00，报47.0美元/股，成交3959.39万美元，总市值9.12 亿美元。 财务数据显示，截至2024年12月31日，新蛋收入总额12.36亿美元，同比减少17.46%；归母净利 润-4332.8万美元，同比增长26.55%。 资料显示，Newegg Commerce, Inc.(前身"联洛智能有限公司"), 总部位于美国加利福尼亚州工业城,是一 家领先的电子商务公司,为IT计算机组件、消费电子产品、娱乐、智能家居和游戏产品提供直接销售和 在线市场平台,并在全球范围内提供一定的第三方物流服务。 本文源自：金融界 作者：行情君 ...

7月29日，新蛋(NEGG)开盘上涨11.13%，截至21:31，报43.43美元/股，成交252.82万美元，总市值8.42 亿美元。 财务数据显示，截至2024年12月31日，新蛋收入总额12.36亿美元，同比减少17.46%；归母净利 润-4332.8万美元，同比增长26.55%。 资料显示，Newegg Commerce, Inc.(前身"联洛智能有限公司"), 总部位于美国加利福尼亚州工业城,是一 家领先的电子商务公司,为IT计算机组件、消费电子产品、娱乐、智能家居和游戏产品提供直接销售和 在线市场平台,并在全球范围内提供一定的第三方物流服务。 本文源自：金融界 作者：行情君 ...

Market Overview - U.S. stock futures are lower, with Dow futures down approximately 100 points on Monday [1] - Ultragenyx Pharmaceutical Inc. shares fell 8% to $27.15 after receiving a Complete Response Letter from the FDA for its gene therapy UX111 [1] Company-Specific Movements - MiNK Therapeutics, Inc. shares dropped 31% to $44.25 after a significant 730% increase on Friday due to a publication announcement [3] - Above Food Ingredients Inc. shares decreased 21.3% to $2.84 following a 134% rise on Friday after announcing a merger agreement [3] - Newegg Commerce, Inc. shares fell 11.3% to $43.66 after a 71% gain on Friday [3] - CEL-SCI Corporation shares declined 11% to $3.08 after an 8% drop on Friday, following a partnership announcement with a Saudi Arabian company [3] - Unusual Machines, Inc. shares slipped 8% to $11.13 after a 39% increase on Friday [3] - Gossamer Bio, Inc. shares fell 6.6% to $1.2700 after completing enrollment in a Phase 3 study for pulmonary arterial hypertension [3] - Gilat Satellite Networks Ltd. shares decreased 4.1% to $7.22 after announcing over $22 million in orders from satellite operators [3] - KalVista Pharmaceuticals, Inc. shares dipped 4% to $13.94 after reporting a wider-than-expected quarterly loss [3] - Apple Inc. shares fell 1% to $209.22 amid a significant management reshuffle, with CEO Tim Cook remaining in charge despite challenges [3]

Group 1 - The recent rebound in stock markets has positively impacted struggling companies, including Newegg Commerce, Inc. (NASDAQ: NEGG), which was close to being delisted from NASDAQ [1] - Newegg is an electronics e-commerce website that has benefited from the market recovery [1] Group 2 - Gary Alexander, with extensive experience in technology companies and startups, has been a contributor to Seeking Alpha since 2017, providing insights into industry trends [1]

Group 1: Event Overview - The 2025 Jiangxi Cross-Border E-Commerce Development Conference was held on May 7, 2025, in Nanchang, focusing on the theme "Digital-Real Integration, Brand Going Global" [1] - The event attracted over a thousand attendees, including cross-border e-commerce platforms, logistics service providers, payment institutions, industry associations, and government departments [1] - Key leaders, including Ma Peihua, Vice Chairman of the 12th National Committee of the Chinese People's Political Consultative Conference, and Xia Wenyong, Vice Governor of Jiangxi Province, emphasized the critical role of cross-border e-commerce in promoting high-quality foreign trade development [1] Group 2: Newegg's Global Strategy - Newegg's CEO, Kuo-Qing Jiang, has been actively promoting the company's digital transformation strategy, focusing on "intelligent, data-driven, and information-based" methods to empower sellers on the platform [7][9] - Since 2020, Newegg has established localized business operations and R&D teams in cities like Shanghai, Shenzhen, Chengdu, and Xi'an, attracting well-known tech brands such as DJI, Bull, Midea, and others [9] - Newegg aims to leverage China's complete supply chain system and emphasizes that the core competitiveness of cross-border e-commerce lies in data-driven efficient operations [9] Group 3: SellingPilot Software - The AI-powered cross-border e-commerce operation software, SellingPilot, was highlighted during the conference, showcasing its efficient practices driven by AI technology [10][14] - SellingPilot utilizes machine learning for market analysis, helping sellers accurately identify high-potential products and reduce selection errors [13] - The software features an intelligent listing system that optimizes product titles and keywords in real-time, enhancing exposure and return on investment (ROI) for sellers [13] Group 4: Performance Metrics and Seller Support - Newegg's internal testing indicates that sellers using SellingPilot have seen a 5-10% improvement in operational performance and an 8-12% reduction in logistics costs [14] - The platform has attracted over 10,000 sellers, with an average sales growth of 56% in Q1 2025, particularly in the technology product segment [14] - Newegg provides dedicated recruitment policies and support for traditional manufacturing enterprises to complete their digital transformation [14][15] Group 5: Future Outlook - Newegg aims to become a smart bridge connecting China's supply chain with global markets, focusing on data-driven refined operations [15] - The company plans to deepen technological research and ecological cooperation, exploring more AI applications in cross-border e-commerce [15] - Newegg is committed to enhancing its service system to provide more efficient and intelligent cross-border trade solutions, driving the industry's development [15]

PART I [Item 3. Key Information](index=6&type=section&id=ITEM%203.%20KEY%20INFORMATION) The company's principal risks include macroeconomic pressures, intense competition, and significant issues related to controlling shareholder stock pledges [Risk Factors](index=6&type=section&id=D.%20Risk%20Factors) The company faces risks from macroeconomic conditions, e-commerce competition, operational vulnerabilities, and controlling shareholders' pledged, delinquent debt - Global macroeconomic conditions materially affect demand for the company's IT/CE products, which are often discretionary purchases[26](index=26&type=chunk)[27](index=27&type=chunk) - The company faces **intense competition** from online and traditional retailers like Amazon and Best Buy, who may have greater resources and more favorable supplier terms[29](index=29&type=chunk)[31](index=31&type=chunk)[32](index=32&type=chunk) - A majority of the company's common shares are pledged as collateral by its two largest shareholders to support **delinquent indebtedness**, creating a risk of forced sales that could depress the stock price[129](index=129&type=chunk)[134](index=134&type=chunk)[135](index=135&type=chunk) - As of December 31, 2024, Mr. Zhitao He and Mr. Fred Chang collectively control approximately **88.2% of the voting power**, classifying Newegg as a "controlled company"[25](index=25&type=chunk)[140](index=140&type=chunk)[141](index=141&type=chunk) - Previously identified and remediated **material weaknesses** in internal control over financial reporting present a risk of recurrence[66](index=66&type=chunk)[67](index=67&type=chunk)[68](index=68&type=chunk) [Item 4. Information on the Company](index=38&type=section&id=ITEM%204.%20INFORMATION%20ON%20THE%20COMPANY) The company operates a technology-focused e-commerce ecosystem with B2C and B2B models supported by direct sales and a third-party marketplace [History and Development of the Company](index=38&type=section&id=A.%20History%20and%20Development%20of%20the%20Company) Newegg is a leading North American e-commerce company that served 2.1 million buyers in 2024 and recently executed a twenty-for-one share combination - The company is a leading technology-focused e-commerce company in North America, serving **2.1 million buyers** in 2024[180](index=180&type=chunk) - On April 7, 2025, the company effected a **twenty-for-one share combination**, with all share and per-share amounts retroactively adjusted[181](index=181&type=chunk)[183](index=183&type=chunk) [Business Overview](index=39&type=section&id=B.%20Business%20Overview) The business combines a direct sales model (72.3% of 2024 GMV) and a marketplace model, supported by proprietary technology and a robust logistics network Key Operating Metrics (as of Dec 31, 2024) | Metric | Value | | :--- | :--- | | Active Customers | 2.1 million | | SKUs Offered | Over 4 million | | Brands Represented | Over 27,000 | | Marketplace Sellers | Over 5,200 | | Countries/Regions Served | 20 | GMV by Business Operation (FY 2024 vs FY 2023) | Business Operation | 2024 GMV (millions) | 2023 GMV (millions) | | :--- | :--- | :--- | | B2C | $1,200 | $1,400 | | B2B | $248.1 | $325.6 | - Direct sales constitute the majority of the business, generating approximately **72.3% of total GMV** for the year ended December 31, 2024[203](index=203&type=chunk) - The Newegg Marketplace connects customers to over 5,200 third-party sellers, with commission rates ranging from **8% to 15%**[204](index=204&type=chunk)[205](index=205&type=chunk) - The company's ten largest suppliers accounted for approximately **68% of merchandise purchased** in 2024, with the top three accounting for 33%[82](index=82&type=chunk) - Logistics and fulfillment are key capabilities, with an average delivery accuracy rate over **99.7%** and a **98.0% one-business day fulfillment rate** in the U.S. and Canada[220](index=220&type=chunk) [Property, Plants and Equipment](index=54&type=section&id=D.%20Property%2C%20Plants%20and%20Equipment) The company owns its corporate headquarters and leases over 1.1 million square feet of fulfillment and warehouse space in North America Principal Leased Facilities (as of Dec 31, 2024) | Description of Use | Approx. Square Footage | Geographic Location | | :--- | :--- | :--- | | Corporate office facilities | 44,440 | North America | | Fulfillment and warehouse operations | 1,138,493 | North America | | Subleased warehouse facilities | 650,133 | North America | - The company's corporate headquarters in Diamond Bar, California was purchased in June 2023[256](index=256&type=chunk)[309](index=309&type=chunk) [Item 5. Operating and Financial Review and Prospects](index=55&type=section&id=ITEM%205.%20OPERATING%20AND%20FINANCIAL%20REVIEW%20AND%20PROSPECTS) Fiscal year 2024 net sales decreased 17.5% to $1.24 billion, while a net loss of $43.3 million marked an improvement from the prior year [Operating Results](index=58&type=section&id=A.%20Operating%20Results) Net sales fell 17.5% to $1.24 billion in 2024, with a narrowed net loss of $43.3 million due to significant SG&A expense reductions Consolidated Results of Operations (in millions) | Metric | 2024 | 2023 | 2022 | | :--- | :--- | :--- | :--- | | Net Sales | $1,235.6 | $1,497.0 | $1,720.3 | | Gross Profit | $131.5 | $167.6 | $216.7 | | Loss from Operations | $(51.5) | $(71.0) | $(49.5) | | Net Loss | $(43.3) | $(59.0) | $(57.4) | | Net Loss per Share | $(2.25) | $(3.12) | $(3.08) | - **Net sales decreased by 17.5%** in FY2024, driven by a decline in GMV from $1.81 billion to $1.53 billion amid soft consumer demand[287](index=287&type=chunk)[288](index=288&type=chunk)[302](index=302&type=chunk) - **Gross margin decreased to 10.6%** in 2024 from 11.2% in 2023, attributed to aggressive competitive promotions[290](index=290&type=chunk) - **SG&A expenses decreased significantly** to $183.0 million in 2024 from $238.6 million in 2023, mainly due to lower compensation and rent costs[291](index=291&type=chunk) [Liquidity and Capital Resources](index=64&type=section&id=B.%20Liquidity%20and%20Capital%20Resources) The company ended 2024 with $96.3 million in cash and believes existing capital is sufficient for operations over the next 12 months Summary Consolidated Cash Flow Data (in millions) | Cash Flow Activity | 2024 | 2023 | 2022 | | :--- | :--- | :--- | :--- | | Net cash from operating activities | $(0.8) | $(3.8) | $20.5 | | Net cash from investing activities | $2.4 | $(14.3) | $(3.8) | | Net cash from financing activities | $(6.1) | $1.6 | $1.5 | | **Cash at end of year** | **$99.7** | **$106.5** | **$123.5** | - **Cash and cash equivalents decreased to $96.3 million** at the end of 2024 from $102.5 million at the end of 2023[558](index=558&type=chunk) - **Capital expenditures were $3.6 million** in 2024, a significant decrease from $30.3 million in 2023[322](index=322&type=chunk) - In August 2024, the company amended its revolving credit facility, extending the maturity to August 2026 and adjusting the maximum revolving amount[323](index=323&type=chunk)[634](index=634&type=chunk) [Critical Accounting Estimates](index=67&type=section&id=E.%20Critical%20Accounting%20Estimates) Financial statements rely on critical estimates for vendor incentives, income taxes, and the valuation of stock-based compensation - **Vendor incentives** are a critical estimate, accounted for as a reduction of cost of sales or marketing expenses[327](index=327&type=chunk) - Income tax accounting requires significant judgment, particularly in assessing the realizability of **deferred tax assets**[328](index=328&type=chunk)[329](index=329&type=chunk) - The valuation of **stock-based compensation** is based on the estimated fair value of awards at the grant date[331](index=331&type=chunk) [Item 6. Directors, Senior Management and Employees](index=69&type=section&id=ITEM%206.%20DIRECTORS%2C%20SENIOR%20MANAGEMENT%20AND%20EMPLOYEES) The company's leadership, compensation, board practices, and employee base are detailed, noting a workforce reduction to 762 employees in 2024 [Directors and Senior Management](index=69&type=section&id=A.%20Directors%20and%20Senior%20Management) The company's leadership includes Chairman Zhitao He and CEO Anthony Chow, with a board of seven directors, four of whom are independent Key Management & Board Members | Name | Position(s) | | :--- | :--- | | Zhitao He | Chairman and Director | | Fred Faching Chang | Vice Chairman and Director | | Anthony Chow | Chief Executive Officer | | Christina Ching | Interim Chief Financial Officer and Chief Accounting Officer | [Compensation](index=71&type=section&id=B.%20Compensation) Aggregate cash compensation in 2024 was $0.9 million for directors and $2.6 million for executive officers, supplemented by equity incentive plans 2024 Aggregate Cash Compensation | Group | Amount (approx.) | | :--- | :--- | | Directors | $0.9 million | | Executive Officers | $2.6 million | | CEO (Anthony Chow) | $1.6 million | - The company has two main equity incentive plans: the 2005 Incentive Award Plan and the 2021 Equity Incentive Plan[352](index=352&type=chunk)[353](index=353&type=chunk)[354](index=354&type=chunk) [Board Practices](index=73&type=section&id=C.%20Board%20Practices) The board has three committees, with director appointments controlled by the two principal shareholders based on their respective voting power - The Board has three committees: **Audit, Compensation, and Nominating and Corporate Governance**[378](index=378&type=chunk) - Director nomination rights are held by the two largest shareholders, **Digital Grid and the Minority Representative (Fred Chang)**, proportionate to their voting power[362](index=362&type=chunk)[363](index=363&type=chunk) - In 2020, the company's majority owner and Chairman Zhitao He received an administrative punishment from the **CSRC for information disclosure violations**[370](index=370&type=chunk)[371](index=371&type=chunk) [Employees](index=77&type=section&id=D.%20Employees) The company employed 762 full-time employees as of December 31, 2024, a decrease from 932 in the prior year due to workforce optimization Employee Headcount (Full-Time) | Date | Total Employees | | :--- | :--- | | Dec 31, 2024 | 762 | | Dec 31, 2023 | 932 | Employees by Geography (as of Dec 31, 2024) | Location | Count | Percentage | | :--- | :--- | :--- | | U.S. | 494 | ~65% | | China | 229 | ~30% | | Taiwan | 23 | ~3% | | Canada | 16 | ~2% | | **Total** | **762** | **100%** | [Item 7. Major Shareholders and Related Party Transactions](index=78&type=section&id=ITEM%207.%20MAJOR%20SHAREHOLDERS%20AND%20RELATED%20PARTY%20TRANSACTIONS) Ownership is concentrated with Zhitao He (58.8%) and Fred Chang (32.0%), and a significant $15.0 million loan to a related party remains outstanding Beneficial Ownership (as of March 31, 2025) | Shareholder | Percentage of Common Shares Beneficially Owned | | :--- | :--- | | Zhitao He | 58.8% | | Fred Chang | 32.0% | | All Directors and Executive Officers as a Group | 89.8% | - The company has a **$15.0 million loan receivable** from its majority shareholder's parent company, Digital Grid, originating in 2019[676](index=676&type=chunk) [Item 8. Financial Information](index=80&type=section&id=ITEM%208.%20FINANCIAL%20INFORMATION) This section refers to the detailed financial statements in Item 18 and notes the company does not plan to pay dividends in the foreseeable future - The company's consolidated financial statements are provided under Item 18[395](index=395&type=chunk) - The company has not paid any cash dividends to date and **does not anticipate paying any in the foreseeable future**[397](index=397&type=chunk) [Item 10. Additional Information](index=81&type=section&id=ITEM%2010.%20ADDITIONAL%20INFORMATION) As a BVI-incorporated company, governance is subject to BVI law, granting significant control rights to principal shareholders over board appointments and major actions - The company is incorporated in the British Virgin Islands, and its governance is dictated by its Memorandum and Articles of Association and the BVI Companies Act[405](index=405&type=chunk)[411](index=411&type=chunk) - Principal shareholders have the right to appoint a specified number of directors based on their **voting power percentage**[414](index=414&type=chunk)[415](index=415&type=chunk)[416](index=416&type=chunk) - Certain major corporate actions require the approval of a board majority that includes a director appointed by the **Minority Representative**[418](index=418&type=chunk)[420](index=420&type=chunk)[425](index=425&type=chunk) - The company is **treated as a U.S. corporation** for all U.S. federal tax purposes[470](index=470&type=chunk) [Item 11. Quantitative and Qualitative Disclosures About Market Risk](index=98&type=section&id=ITEM%2011.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) The company's primary market risks are interest rate and foreign currency fluctuations, which are not currently hedged with derivative instruments - The main market risks are **interest rate risk** on floating-rate debt and **foreign currency risk** from international sales and purchases[506](index=506&type=chunk) - As of December 31, 2024, the company had **no outstanding long-term borrowings**[507](index=507&type=chunk) - The company does not currently use derivative financial instruments to hedge interest rate or foreign currency risks[508](index=508&type=chunk)[509](index=509&type=chunk) PART II [Item 15. Controls and Procedures](index=99&type=section&id=ITEM%2015.%20CONTROLS%20AND%20PROCEDURES) Management concluded that both disclosure controls and internal control over financial reporting were effective as of December 31, 2024 - Management concluded that the company's **disclosure controls and procedures were effective** as of December 31, 2024[517](index=517&type=chunk)[518](index=518&type=chunk) - Based on an assessment using the COSO framework, management concluded that the company's **internal control over financial reporting was effective** as of December 31, 2024[522](index=522&type=chunk) [Item 16. Corporate Governance and Other Disclosures](index=101&type=section&id=ITEM%2016.%20Corporate%20Governance%20and%20Other%20Disclosures) This section covers governance topics, including accountant fees, a share repurchase program, and cybersecurity risk management processes Principal Accountant Fees (BDO USA) | Year | Audit Fees (in thousands) | | :--- | :--- | | 2024 | $1,124 | | 2023 | $1,365 | - In November 2023, the Board approved a **share repurchase program of up to $10 million**, with approximately $6.5 million remaining available as of year-end 2024[532](index=532&type=chunk)[533](index=533&type=chunk) - The company has implemented processes to manage cybersecurity risks, led by the Chief Information Security Officer and overseen by the Audit Committee[541](index=541&type=chunk)[542](index=542&type=chunk) - As a foreign private issuer, the company is permitted to follow certain home country practices and is **exempt from some Nasdaq corporate governance requirements**[536](index=536&type=chunk) PART III [Item 18. Financial Statements](index=105&type=section&id=ITEM%2018.%20FINANCIAL%20STATEMENTS) This section contains the audited consolidated financial statements, which received an unqualified opinion from the auditor, BDO USA, P.C - The independent auditor, BDO USA, P.C., issued an **unqualified opinion** on the consolidated financial statements[548](index=548&type=chunk) - The auditor identified the measurement of **vendor incentive receivables as a critical audit matter** due to the complexity and estimation required[552](index=552&type=chunk)[553](index=553&type=chunk)[554](index=554&type=chunk) Consolidated Balance Sheet Highlights (as of Dec 31, in thousands) | Account | 2024 | 2023 | | :--- | :--- | :--- | | **Total Assets** | **$407,321** | **$499,047** | | Cash and cash equivalents | $96,255 | $102,512 | | Inventories, net | $98,537 | $136,164 | | **Total Liabilities** | **$301,229** | **$369,655** | | Accounts payable | $148,279 | $206,588 | | **Total Stockholders' Equity** | **$106,092** | **$129,392** | - All common share and per-share amounts have been retroactively adjusted to reflect the **twenty-for-one share combination** effective April 7, 2025[572](index=572&type=chunk)[574](index=574&type=chunk)

[Newegg Fiscal Year 2024 Results](index=1&type=section&id=Newegg%20Announces%20Fiscal%20Year%202024%20Results) [Management Commentary](index=1&type=section&id=Management%20Commentary) Newegg's management focused on operational discipline and cost reduction in FY2024, improving Adjusted EBITDA and driving strong Q4 sales momentum - The company executed significant SG&A reduction initiatives, including warehouse consolidation and workforce alignment, which improved the bottom line and strengthened its financial foundation[3](index=3&type=chunk) - Sales momentum accelerated in Q4 2024 due to a successful Black Friday campaign and continued into Q1 2025 with **double-digit GMV growth**, spurred by new product launches like NVIDIA 50 Series GPUs and AMD Ryzen CPUs[3](index=3&type=chunk) - Strategic initiatives include exploring B2B software-as-a-service (SaaS) opportunities and focusing on high-growth segments such as AI PCs and high-performance gaming hardware[3](index=3&type=chunk) - Inventory was efficiently managed, decreasing from **$136.2 million** in 2023 to **$98.5 million** in 2024, aided by strong holiday sales[3](index=3&type=chunk) - The company is not providing full-year 2025 guidance due to uncertainty surrounding the impact of tariff policies on consumer confidence[3](index=3&type=chunk) - A **twenty-to-one reverse stock split** was completed on April 7, 2025, to regain compliance with Nasdaq's minimum bid price requirement, which was achieved on April 22, 2025[3](index=3&type=chunk) [Fiscal Year 2024 Financial & Operational Highlights](index=1&type=section&id=2024%20Fiscal%20Year%20Financial%20%26%20Operational%20Highlights) Newegg's FY2024 saw decreased net sales and GMV, yet significantly narrowed net loss and improved Adjusted EBITDA despite operational metric declines Fiscal Year 2024 Financial Highlights (vs. 2023) | Financial Metric | FY 2024 | FY 2023 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $1.24 billion | $1.50 billion | -17.4% | | GMV | $1.53 billion | $1.81 billion | -15.4% | | Gross Profit | $131.5 million | $167.6 million | -21.5% | | Net Loss | ($43.3 million) | ($59.0 million) | +26.6% (Loss narrowed) | | Adjusted EBITDA | ($9.5 million) | ($21.3 million) | +55.4% (Loss narrowed) | Fiscal Year 2024 Operational Metrics (vs. 2023) | Operational Metric | As of Dec 31, 2024 | As of Dec 31, 2023 | Change | | :--- | :--- | :--- | :--- | | Average Order Value | $396 | $379 | +4.5% | | Active Customers | 2.1 million | 2.5 million | -16.0% | | Repeat Purchase Rate | 26.0% | 29.2% | -3.2 p.p. | [Consolidated Financial Statements](index=5&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Balance Sheets](index=5&type=section&id=NEWEGG%20COMMERCE%2C%20INC.%20Consolidated%20Balance%20Sheets) As of Dec 31, 2024, Newegg's total assets and liabilities decreased due to reductions in cash, inventories, and accounts payable, impacting stockholders' equity Consolidated Balance Sheet Summary (in thousands) | Account | Dec 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | **Total Current Assets** | **$283,645** | **$344,451** | | Inventories, net | $98,537 | $136,164 | | Cash and cash equivalents | $96,255 | $102,512 | | **Total Assets** | **$407,321** | **$499,047** | | **Total Current Liabilities** | **$243,573** | **$296,544** | | Accounts payable | $148,279 | $206,588 | | **Total Liabilities** | **$301,229** | **$369,655** | | **Total Stockholders' Equity** | **$106,092** | **$129,392** | [Consolidated Statements of Operations](index=6&type=section&id=NEWEGG%20COMMERCE%2C%20INC.%20Consolidated%20Statements%20of%20Operations) Newegg's FY2024 net sales decreased, but significant SG&A reductions narrowed operating and net losses compared to the prior year Consolidated Statement of Operations Summary (in thousands) | Account | 2024 | 2023 | | :--- | :--- | :--- | | Net sales | $1,235,576 | $1,496,963 | | Gross profit | $131,488 | $167,557 | | Selling, general, and administrative expenses | $183,039 | $238,641 | | Loss from operations | $(51,551) | $(71,084) | | **Net loss** | **$(43,328)** | **$(58,990)** | - SG&A expenses were significantly reduced by **23.3%** year-over-year, from **$238.6 million** in 2023 to **$183.0 million** in 2024, which was a key driver in narrowing the operating loss[20](index=20&type=chunk) [Consolidated Statements of Cash Flows](index=7&type=section&id=NEWEGG%20COMMERCE%2C%20INC.%20Consolidated%20Statements%20of%20Cash%20Flows) In FY2024, Newegg significantly improved cash used in operating activities, with investing activities providing cash, leading to an overall decrease in cash and equivalents Consolidated Statement of Cash Flows Summary (in thousands) | Cash Flow Activity | 2024 | 2023 | | :--- | :--- | :--- | | Net cash used in operating activities | $(821) | $(3,839) | | Net cash provided by (used in) investing activities | $2,445 | $(14,254) | | Net cash (used in) provided by financing activities | $(6,053) | $1,560 | | **Net decrease in cash, cash equivalents and restricted cash** | **$(6,732)** | **$(17,032)** | | **Cash, cash equivalents and restricted cash at end of period** | **$99,742** | **$106,474** | [Non-GAAP Financial Measures & Reconciliations](index=3&type=section&id=Non-GAAP%20Financial%20Information) [Definition of Non-GAAP Measures](index=3&type=section&id=Definition%20of%20Non-GAAP%20Measures) Newegg uses non-GAAP measures like GMV and Adjusted EBITDA to provide a clearer view of core operating performance by excluding certain non-cash or non-recurring items - Gross Merchandise Value (GMV) is the total dollar value of products sold on its websites and third-party marketplaces, net of returns, discounts, taxes, and cancellations, and includes service fees[11](index=11&type=chunk) - Adjusted EBITDA is calculated as net income/loss, excluding stock-based compensation, depreciation & amortization, net interest income, income tax, and certain other gains/losses to better reflect core operating performance[12](index=12&type=chunk)[13](index=13&type=chunk) [Reconciliation of Net Sales to GMV](index=8&type=section&id=Schedule%201%20Reconciliation%20of%20Net%20Sales%20to%20GMV) Newegg's FY2024 Net Sales of $1.236 billion reconciled to a GMV of $1.534 billion, primarily by including marketplace seller sales Reconciliation of Net Sales to GMV (in millions) | Line Item | 2024 | 2023 | | :--- | :--- | :--- | | Net Sales | $1,235.6 | $1,497.0 | | Adjustments | $298.1 | $315.5 | | **GMV** | **$1,533.7** | **$1,812.5** | [Reconciliation of Net Loss to Adjusted EBITDA](index=9&type=section&id=Schedule%202%20Reconciliation%20of%20Net%20Income%20to%20Adjusted%20EBITDA) Newegg's FY2024 net loss of $43.3 million reconciled to an Adjusted EBITDA of ($9.5) million, a significant improvement from prior year due to key adjustments Reconciliation of Net Loss to Adjusted EBITDA (in millions) | Line Item | 2024 | 2023 | | :--- | :--- | :--- | | Net loss | $(43.3) | $(59.0) | | Stock-based compensation expenses | $27.3 | $33.7 | | Depreciation and amortization | $10.7 | $13.4 | | Other Adjustments | $(1.2) | $(9.4) | | **Adjusted EBITDA** | **$(9.5)** | **$(21.3)** |

Group 1 - Shenzhen KingSpec Electronics Technology Co., Ltd. has been awarded the "EGGIE AWARD - 2025 Partner of the Year" by Newegg, recognizing its excellence in product quality and technological innovation [1][4] - KingSpec has established itself as a leading force in the solid-state drive (SSD) industry since its founding in 2007, with significant investments in technology development and production processes [2] - The company’s products, including the XG7000 and P3 Series SSDs, have gained popularity for their exceptional performance, catering to gamers and high-performance users [3] Group 2 - KingSpec's commitment to innovation and quality is highlighted by the "2025 Partner of the Year" award, and the company plans to enhance its product offerings and collaborations in the future [4]

Financial Performance - Net sales decreased 14.5% to $618.1 million for the six months ended June 30, 2024, compared to $723.2 million for the same period in 2023[3] - Gross merchandise value (GMV) decreased 15.4% to $746.7 million for the six months ended June 30, 2024, compared to $882.5 million for the same period in 2023[3] - Gross profit decreased 22.4% to $63.1 million for the six months ended June 30, 2024, compared to $81.3 million for the same period in 2023[3] - Net loss for Q2 2024 was $24.954 million, an improvement from a net loss of $29.331 million in Q2 2023, representing a reduction of approximately 15%[20] - Total net cash used in operating activities decreased to $63.197 million in Q2 2024 from $74.959 million in Q2 2023, indicating a 15.5% improvement[20] - Gross Merchandise Volume (GMV) for Q2 2024 was $746.7 million, down from $882.5 million in Q2 2023, reflecting a decline of approximately 15.4%[22] - Adjusted EBITDA improved by 29% to $(7.3) million for the six months ended June 30, 2024, compared to $(10.3) million for the same period in 2023[4] - Adjusted EBITDA for Q2 2024 was $(7.3) million, an improvement from $(10.3) million in Q2 2023, showing a reduction in losses of about 29%[23] Customer Metrics - Active customers totaled approximately 1.1 million as of June 30, 2024, a decrease from 1.3 million for the same period in the prior year[5] - Repeat purchase rate was 23.0% as of June 30, 2024, compared to 27.9% for the same period in the prior year[6] Cash and Inventory Management - The company maintained an inventory balance of $132.0 million and a cash balance of $49.7 million as of June 30, 2024[2] - Cash, cash equivalents, and restricted cash at the end of Q2 2024 totaled $53.113 million, slightly up from $52.970 million at the end of Q2 2023[20] - The company reported a decrease in accounts payable by $13.291 million, from $(82.097) million in Q2 2023 to $(95.388) million in Q2 2024[20] - Stock-based compensation expenses decreased to $15.022 million in Q2 2024 from $17.923 million in Q2 2023, a reduction of approximately 16.5%[20] - Borrowings under the line of credit increased to $41.098 million in Q2 2024 from $27.594 million in Q2 2023, indicating a rise of about 48.8%[20] Strategic Initiatives - The company aims to expand its product offerings in server solutions and strengthen vendor relationships to enhance customer value[7] - The company anticipates a rebound in sales during the second half of 2024 as consumers upgrade their devices[2] Cash Flow and Investment Activities - Cash flows from investing activities provided $879 thousand in Q2 2024, a significant recovery from cash used of $(23.278) million in Q2 2023[20] - The company successfully renewed its credit agreement for an additional two-year period, providing borrowing capacity of up to $40 million from April 1 to September 30 and $50 million from October 1 to March 31 for each year during the renewal term[2] Foreign Currency Impact - The company experienced a foreign currency effect on cash of $(886) thousand in Q2 2024, compared to a positive effect of $727 thousand in Q2 2023[20]