UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 20-F (Mark One) ☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☐ SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 19 ...

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]

Business Performance - Newegg Commerce, Inc. recognized a GMV of approximately $42 billion since 2005, processing over 193 million orders[196]. - In 2023, Newegg served over 2.5 million active customers, with 1.4 billion GMV from B2C operations and 325.6 million GMV from B2B operations[201][216][217]. - Direct sales accounted for approximately 74.2% of Newegg's GMV for the year ended December 31, 2023[221]. - The total GMV for Newegg Marketplace in 2023 was $369.7 million, down from $552.2 million in 2022 and $742.4 million in 2021, accounting for approximately 20.4% of total GMV[310]. - Newegg Marketplace generated net sales of $32.3 million in 2023, a decline from $47.0 million in 2022 and $63.5 million in 2021, representing 2.2% of total net sales[310]. - Net sales decreased by 13.0% from $1,720.3 million in 2022 to $1,497.0 million in 2023, primarily due to a decline in GMV from direct sales and marketplace businesses[329]. - The decrease in GMV was attributed to conservative consumer spending on technology products amid economic uncertainty and inflation[329]. - For the year ended December 31, 2023, the company recorded a net loss of $59.0 million, compared to a net loss of $57.4 million for the same period in 2022, primarily driven by a decline in net sales and gross margin[339]. Product Offering and Inventory - The company offered more than 6 million SKUs across 1,595 categories as of December 31, 2023, representing over 35,000 brands[196][201]. - As of December 31, 2023, the company offered approximately 6.2 million SKUs, with 103,100 direct sales SKUs sourced from at least 330 suppliers globally and 6.1 million SKUs on the Marketplace from over 8,000 third-party sellers[225]. - Approximately 60.6% of direct sales inventory was purchased directly from manufacturers, 36.7% from distributors, and 2.7% from other sources as of December 31, 2023[225]. - The 10 largest suppliers accounted for 71% of merchandise purchased for direct sales, indicating a strong reliance on established partnerships[225]. - Newegg's direct sales SKUs sourced from at least 325 suppliers globally totaled over 103,000 as of December 31, 2023[313]. Customer Experience and Fulfillment - Newegg achieved a 99.9% average delivery accuracy rate for orders directly fulfilled, with a 95.8% one-business day fulfillment rate in the U.S. and Canada[204]. - The company delivered over 22,850 parcels per day on average, with a fulfillment rate of 95.8% for one-business day and 98.8% for two-business-day orders in the U.S. and Canada[245]. - As of December 31, 2023, Newegg operated seven fulfillment centers covering more than 1.5 million square feet, enabling efficient order fulfillment across North America[245]. - Virtual fulfillment accounted for approximately 8.4% of direct sales for the year ended December 31, 2023, broadening product assortment and reducing stockout losses[246]. - Newegg's platforms featured over 4.8 million user-generated reviews as of December 31, 2023, enhancing the shopping experience[202]. Marketing and Traffic - In 2023, 90% of traffic was free, compared to 10% paid traffic, indicating strong word-of-mouth referrals and brand recognition[259]. - Paid search engine marketing accounted for approximately 57% of total marketing spending and generated 5% of total traffic to Newegg's websites for the year ended December 31, 2023[261]. - Affiliate marketing represented approximately 32% of total marketing expenses for the year ended December 31, 2023, making it the second largest paid marketing channel[262]. Financial Overview - Cost of sales decreased by 11.6% from $1,503.6 million in 2022 to $1,329.4 million in 2023, reflecting the decrease in net sales[331]. - Gross profit decreased by 22.7% from $216.7 million in 2022 to $167.6 million in 2023, with a profit margin decline to 11.2% from 12.6%[331]. - Selling, general and administrative (SG&A) expenses decreased to $238.6 million in 2023 from $266.2 million in 2022, driven by reductions in salary, merchant payment fees, and marketing expenses[332]. - Interest income increased to $2.3 million in 2023 from $1.2 million in 2022, while interest expense rose to $2.5 million from $0.7 million[333]. - Other income, net, decreased to $2.6 million in 2023 from $5.2 million in 2022, with significant components including sales tax rebate and property rental income[334]. - The company recorded a total gain on the sale of investments of $6.8 million for the year ended December 31, 2023, from the sale of 60% of its investment in Bitmain Technologies for $14.1 million and all of its investment in Bitdeer Technologies for $1.7 million[336]. Operational Efficiency and Technology - The technology infrastructure supports over 90 million page views per day and can process up to 0.93 million orders per day[268]. - The company maintains approximately 1,242 servers and 268 network devices across its data centers to ensure reliability and scalability[268]. - The supply chain management system includes price optimization and inventory forecasting, enhancing efficiency and cost control[271]. - The company has invested significantly in mobile technology to increase sales, focusing on improving the mobile shopping experience[269]. - The research and development team is dedicated to continuous innovation, enhancing customer experience through software development and algorithm design[276]. Corporate Developments - Newegg's corporate headquarters is set to move to a newly purchased office building in Diamond Bar, California, in the second half of 2024[297]. - The company is subject to evolving privacy and data security regulations, which may impact its operational practices and financial position[290]. - The company anticipates that existing cash and funds generated from operations will be sufficient to meet working capital needs for at least 12 months from the filing date of the annual report[361]. Leadership and Strategy - Zhitao He has been the Chairman of the Board since March 2018 and has led Hangzhou Lianluo to list on China's A share market[394]. - Under Mr. He's leadership, Hangzhou Lianluo has expanded into smart hardware, including the acquisition of Newegg and investments in VR device manufacturer Avegant[394]. - Hangzhou Lianluo's investment strategy has created a closed loop of "Software and Hardware + Platform + Channels"[394].

Financial Performance - Net sales for fiscal year 2023 decreased to $1.50 billion, down from $1.72 billion in fiscal year 2022, representing a decline of approximately 12.7%[3] - Gross merchandise value (GMV) decreased to $1.81 billion in 2023, compared to $2.20 billion in 2022, reflecting a decrease of about 17.7%[3] - Gross profit for 2023 was $167.6 million, down from $216.7 million in 2022, indicating a decline of approximately 22.6%[3] - The net loss for 2023 increased to $59.0 million, compared to a net loss of $57.4 million in 2022, marking an increase of about 2.8%[3] - Net loss for 2023 was $58.99 million, compared to a loss of $57.43 million in 2022, indicating a slight increase in losses year-over-year[20] - Adjusted EBITDA for 2023 was $(21.3) million, compared to $0.6 million in 2022, indicating a significant decline in profitability[24] Customer Metrics - Active customers as of December 31, 2023, totaled approximately 2.5 million, a decrease from 2.7 million the previous year, representing a decline of about 7.4%[4] - The average order value decreased to $379 in 2023, down from $411 in the prior year, indicating a decline of approximately 7.8%[4] Future Projections - For fiscal year 2024, the company expects net sales to be between $1.36 billion and $1.56 billion, projecting a potential decrease of up to 9.3% compared to 2023[5] Inventory and Cash Flow - Total inventory decreased from $156.0 million as of December 31, 2022, to $136.2 million as of December 31, 2023, reflecting a reduction of approximately 12.7%[2] - Net cash used in operating activities was $(3.84) million in 2023, a significant decrease from $20.48 million provided in 2022[20] - Cash flows from investing activities resulted in a net cash outflow of $(14.25) million in 2023, compared to $(3.77) million in 2022[20] - Cash and cash equivalents at the end of the period were $106.47 million, down from $123.51 million at the end of 2022[20] Capital Expenditures and Stock - The company incurred $30.27 million in payments to acquire property and equipment in 2023, a substantial increase from $9.19 million in 2022[20] - The company repurchased $2.0 million of its common stock during the first quarter of 2024 under its $10.0 million share repurchase program[2] - Stock-based compensation expenses remained relatively stable at $33.66 million in 2023, compared to $33.94 million in 2022[24] Marketable Securities - The company reported a significant unrealized loss on marketable securities of $4 million in 2023, compared to $55 million in 2022[20] Strategic Initiatives - The company plans to launch a new AI PC product line and a loyalty program, Newegg+, aimed at enhancing customer engagement and driving sales in the second half of 2024[2]

Core Viewpoint - Newegg Commerce, Inc. has launched a new protection program in partnership with Likewize, aimed at providing customers with additional security and peace of mind for eligible products purchased through Newegg [1][4]. Group 1: Protection Program Details - The Likewize protection program is designed specifically for Newegg customers and is available for most products sold on Newegg.com and the Newegg shopping app [2]. - Coverage includes laptops, desktop computers, tablets, PC components, mobile phones, and TVs, with options for extended protection plans against defects and failures [2][3]. - The program offers protection against breakdowns, power surge protection, 100% parts and labor coverage, no deductibles or hidden fees, a 24/7 online claims portal, and free two-day shipping [3]. Group 2: Additional Offerings - Refurbished products sold through Newegg's Newegg Refreshed program can also be covered by the Likewize Protection Plan, which includes coverage for manufacturer defects [4]. - Likewize is recognized as a leading device uplift and trade-in company, refurbishing popular products like iPhones, iPads, and MacBooks for Newegg [5]. - Likewize operates globally, providing device protection for over 40 million customers and resolving 250 million issues annually across various services [6]. Group 3: Company Background - Newegg Commerce, Inc., founded in 2001, is a prominent online retailer specializing in PC hardware, consumer electronics, and gaming peripherals, among other technology products [7]. - Likewize, established in 1997, is the fastest-growing tech protection company worldwide, trusted by major brands and operating in over 30 countries [6].

Core Insights - Newegg Marketplace will exhibit for the first time at the Prosper Show 2024, aiming to connect with e-commerce sellers and showcase its capabilities [1][2] - The event will take place from March 4-6, 2024, at the Mandalay Bay Convention Center in Las Vegas [1] - Newegg Marketplace offers a premier platform for sellers to reach tech-savvy customers and provides various marketing tools [2] Company Overview - Newegg Commerce, Inc. is a leading global online retailer founded in 2001, specializing in technology products including PC hardware, consumer electronics, and gaming peripherals [3] - The company also provides e-commerce solutions for businesses, including marketing, supply chain, and technical services [3]

Core Viewpoint - Newegg has launched a refurbishment program called Newegg Refreshed, aimed at providing consumers with high-quality pre-owned technology products at competitive prices while promoting sustainability through trade-in options [1][4]. Group 1: Program Overview - Newegg Refreshed offers a variety of refurbished tech products, including Apple devices, graphics cards, gaming desktops, monitors, laptops, tablets, mobile phones, and robotic vacuums [2]. - The program allows customers to trade in unwanted PC hardware, enhancing the resale market for refurbished products [1][3]. Group 2: Trade-in and Guarantee - The graphics card trade-in program, launched in September 2023, allows customers to send in their old graphics cards within 14 days of purchasing a new one, ensuring they are never without a GPU [3]. - All refurbished products undergo professional inspection, testing, and cleaning, and are backed by the Newegg Refreshed Guarantee, which allows returns or replacements within 90 days [3]. Group 3: Marketing and Promotions - Newegg is promoting its refurbished products with a 15% discount (up to $150) on Apple refurbished items through a Zip promotion, valid until February 28, while funds last [4]. - The company aims to expand its refurbished product categories to provide customers with value and peace of mind, while also focusing on sustainability [4]. Group 4: Company Background - Newegg Commerce, Inc., founded in 2001 and based in California, is a leading global online retailer specializing in PC hardware, consumer electronics, and various technology products [5].

Business Performance - Newegg Commerce, Inc. recognized a GMV of approximately $41 billion since 2005, processing over 187 million orders[193]. - In 2022, Newegg had 2.7 million active customers and offered more than 20 million SKUs across 1,605 categories[196]. - The B2C operations generated GMV of $1.7 billion in 2022, down from $2.4 billion in 2021, indicating a decline of approximately 29.2%[204]. - The B2B operations generated GMV of $379.5 million in 2022, down from $537.6 million in 2021, reflecting a decrease of approximately 29.5%[205]. - Newegg's Marketplace had over 9,500 sellers and approximately 20.0 million SKUs as of December 31, 2022[199]. - Newegg Marketplace generated GMV of $552.2 million in 2022, accounting for approximately 25.1% of total GMV[286]. - Newegg Global had a GMV of $31.3 million for the year ended December 31, 2022, down from $65.4 million in 2021[224]. - Newegg.ca generated a GMV of $159.3 million for the year ended December 31, 2022, compared to $244.3 million in 2021, indicating a decline[224]. - The company reported a GMV of $2,196.1 million for the year ended December 31, 2022, down from $3,028.4 million in 2021, indicating a decline in overall sales activity[329]. Financial Performance - Net sales decreased by 27.6% from $2,376.2 million in 2021 to $1,720.3 million in 2022, primarily due to a decline in GMV from direct sales and marketplace businesses[303]. - Gross profit decreased by 33.5% from $326.0 million in 2021 to $216.7 million in 2022, with a profit margin decline to 12.6% from 13.7%[305]. - Selling, general and administrative (SG&A) expenses decreased to $266.2 million in 2022 from $292.5 million in 2021, mainly due to a reduction in merchant payment fees and marketing expenses[306]. - The company reported a net loss of $57.4 million in 2022, compared to a net income of $36.3 million in 2021[302]. - For the year ended December 31, 2022, the company recorded a net loss of $57.4 million, compared to a net income of $36.3 million in 2021, primarily due to a decline in net sales and gross margin[314]. - The provision for income taxes increased to $14.1 million in 2022 from a benefit of $5.8 million in 2021, largely due to a valuation allowance of $17.5 million[313]. - Adjusted EBITDA for the year ended December 31, 2022, was $0.6 million, a significant decrease from $52.4 million in 2021, highlighting operational challenges[333]. - The company experienced a significant decline in consumer demand for technology products, attributed to economic uncertainty and extended product upgrade cycles[304]. Customer Engagement and Experience - Newegg achieved a 99.9% average delivery accuracy rate for orders directly fulfilled by the company as of December 31, 2022[196]. - Newegg's platforms provided over 4.6 million user-generated reviews as of December 31, 2022, enhancing the shopping experience[196]. - Newegg introduced flexible payment options, including a Pay-in-4 program, to cater to customer needs[198]. - Newegg's mobile app aims to enhance the shopping experience and provides tools for Marketplace sellers to manage inventory and orders[247]. - Newegg's "Hassle Free" return policy allows returns within 30 days for a full refund or replacement on items sold directly by the company[233]. - The company has adopted a zero-tolerance policy on counterfeit products, ensuring compliance among Marketplace sellers[233]. Operational Efficiency - The direct sales model accounted for approximately 70.3% of Newegg's GMV for the year ended December 31, 2022[208]. - The company fulfilled an average of over 21,994 parcels per day with a fulfillment rate of 95.8% for one-business day and 99.0% for two-business days in the U.S. and Canada[227]. - The company maintains nine fulfillment centers covering over 2 million square feet, enabling efficient order delivery across North America[229]. - Newegg's fulfillment and warehouse operations cover 1,863,912 square feet in North America[271]. - The company maintains approximately 1,062 servers and 262 network devices across its data centers[246]. - Newegg Logistics provides end-to-end e-commerce logistics solutions, launched in 2014, to streamline supply chain efficiencies for partners[220]. Marketing and Traffic - In 2022, 81% of traffic was free, while paid traffic accounted for 19%[239]. - Paid search engine marketing represented approximately 65% of total marketing spending and 11% of total traffic to Newegg's websites for the year ended December 31, 2022[241]. - Affiliate marketing accounted for approximately 27% of total marketing expense for the year ended December 31, 2022[241]. Leadership and Governance - Zhitao He has served as Chairman of the Board since March 2018 and has been instrumental in leading the company through significant transformations[364]. - Anthony Chow, the Global CEO, has guided the company through transformative years and has a strong background in e-commerce and logistics[371]. - The company has a diverse board of directors with extensive experience in finance, technology, and corporate governance[362]. - The Chief Financial Officer, Robert Chang, has been with the company for over two decades, overseeing financial performance and reporting[372]. - Newegg relies on "home country practice" for corporate governance, not having a majority of independent directors on its Board[390]. Compensation and Incentives - The CEO's cash compensation for 2022 was approximately $2.3 million, which included a $1.2 million bonus paid in February 2023[379]. - The aggregate cash compensation for executive officers for the year ended December 31, 2022, was approximately $4.3 million, including $1.7 million in bonus payments paid out in February 2023[379]. - The Profit Sharing Program awards bonuses starting at 30% of base salary (60% for the CEO), with payouts based 70% on GMV performance and 30% on adjusted EBITDA for 2022[380]. - The Newegg 2005 Incentive Award Plan allows for the issuance of a maximum of 82,952,149 common shares for equity incentive awards[381]. - The CEO's employment agreement guarantees a base salary of $1.1 million per year and a target bonus of 160% to 200% of his base salary[386].

Financial Performance - Net sales for the six months ended June 30, 2022, were $890,540, a decrease of 26.2% compared to $1,206,872 for the same period in 2021[6]. - Gross profit for the six months ended June 30, 2022, was $110,771, down 33.6% from $166,926 in the prior year[6]. - The company reported a net loss of $18,869 for the six months ended June 30, 2022, compared to a net income of $21,591 for the same period in 2021[6]. - The company reported a comprehensive loss of $21,311 for the six months ended June 30, 2022, compared to a comprehensive income of $23,148 for the same period in 2021[9]. - Net income for the six months ended June 30, 2022, was a loss of $18.869 million, compared to a net income of $21.591 million for the same period in 2021[16]. - The basic earnings per share for the six months ended June 30, 2022, was $(0.05), while it was $0.06 for the same period in 2021[143]. Assets and Liabilities - Total current assets decreased to $332,571 as of June 30, 2022, from $438,961 as of December 31, 2021, representing a decline of 24.2%[3]. - Total liabilities decreased to $336,152 as of June 30, 2022, from $444,300 as of December 31, 2021, a reduction of 24.4%[3]. - The company’s cash and cash equivalents decreased to $70,069 as of June 30, 2022, from $99,993 as of December 31, 2021, a decline of 30.0%[3]. - The company’s accumulated deficit increased to $33,149 as of June 30, 2022, from $14,280 as of December 31, 2021[3]. - The total stockholders' equity as of June 30, 2022, was $178,753, a decrease from $182,282 as of December 31, 2021[3]. - Total accrued liabilities decreased from $74.7 million as of December 31, 2021, to $50.8 million as of June 30, 2022[96]. Cash Flow - Cash used in operating activities increased to $49.769 million for the six months ended June 30, 2022, compared to $35.438 million for the same period in 2021, reflecting a significant increase in operational cash outflows[16]. - Cash provided by financing activities was $21.959 million for the six months ended June 30, 2022, compared to $12.597 million in the same period of 2021, showing improved financing inflows[16]. - The company reported a beginning cash balance of $104.330 million and an ending cash balance of $71.056 million for the period, indicating a net decrease of $33.274 million[16]. - As of June 30, 2022, the total cash and cash equivalents, including restricted cash, amounted to $71.1 million, a decrease from $104.3 million as of December 31, 2021[37]. Inventory and Receivables - Total inventories amounted to $61.433 million as of June 30, 2022, compared to a negative inventory change of $(28.980) million in the prior year, indicating a substantial increase in inventory levels[16]. - Accounts receivable decreased to $10.183 million as of June 30, 2022, from $23.271 million in the prior year, indicating improved collection or reduced sales[16]. - Amounts receivable related to vendor incentive programs were $31.8 million at June 30, 2022, down from $41.5 million at December 31, 2021[66]. - Accounts receivable from business customers were $19.6 million at June 30, 2022, net of allowances of $1.9 million, compared to $17.6 million at December 31, 2021[38]. Revenue and Sales - The Company primarily generates revenue through product and extended warranty sales, which exceeded 95% of consolidated net sales for the six months ended June 30, 2022[54]. - Net sales in the United States for the six months ended June 30, 2022, were $799.17 million, down 25.0% from $1,064.89 million in 2021[153]. - The Components & Storage product category generated $531.21 million in sales for the six months ended June 30, 2022, a decline of 22.8% from $688.28 million in 2021[156]. - Direct sales revenues accounted for $833.13 million, representing a decrease of 27.4% from $1,146.65 million in the previous year[156]. - Shipping and handling revenue was approximately $8.3 million for the six months ended June 30, 2022, compared to $14.3 million for the same period in 2021[64]. Expenses - Selling, general, and administrative expenses for the six months ended June 30, 2022, were $138,996, slightly down from $144,463 in the same period of 2021[6]. - Stock-based compensation expenses rose significantly to $16.143 million in the first half of 2022, compared to $1.569 million in the same period of 2021, reflecting increased compensation costs[16]. - Advertising and promotional expenses were $8.6 million for the six months ended June 30, 2022, down from $15.3 million in 2021[69]. - The Company incurred shipping and handling costs of approximately $22.7 million for the six months ended June 30, 2022, compared to $35.4 million in 2021[64]. Tax and Legal Matters - The Company's effective tax rate for the six months ended June 30, 2022, was 16.2%, up from 10.0% in the same period of 2021, primarily due to foreign tax rate differentials and nondeductible expenses[120]. - The Company is currently involved in legal proceedings that may materially affect its financial position, but it does not believe a loss is probable or reasonably estimable[148]. Stock and Equity - The Company has 373,184,325 shares of common stock issued and outstanding as of June 30, 2022, an increase from 369,718,680 shares as of December 31, 2021[122]. - The fair value of outstanding warrants decreased from $10.37 per share on December 31, 2021, to $3.68 per share on June 30, 2022, indicating a significant decline in market value[124]. - The Company granted 7,040,998 restricted stock units (RSUs) during the year ended December 31, 2021, with 6,501,528 RSUs unvested as of June 30, 2022[138]. - The total intrinsic value of stock options exercised during the six months ended June 30, 2022, was $17.5 million, compared to $0 for the same period in 2021[135].