Chen Michael 4

What Happened

• Michael Chen, Chief Legal Officer of Newegg Commerce, exercised options/conversions on May 29, 2026. The filing shows an acquisition of 105 shares at an exercise price of $18.57 (total cost $1,950). To satisfy tax withholding, 38 of those shares were withheld (reported as disposed) valued at $706. The filings also report a related derivative conversion/disposition (105 shares at $0), consistent with an exercise/conversion event.
• Net result: 105 shares were exercised and 38 shares were withheld for taxes, leaving a net receipt of 67 shares to the reporting person (based on the reported transactions).

Key Details

• Transaction date: 2026-05-29. Exercise price: $18.57 per share; acquired 105 shares = $1,950 total; 38 shares withheld valued at $706.
• Transaction codes: M = option exercise/conversion; F = shares withheld to satisfy tax withholding.
• Shares owned after transaction: Not specified in the provided filing excerpt.
• Footnotes: F1 confirms shares were withheld to satisfy tax withholding. F2 describes a 5,000 RSU award (4,176 vested earlier; remaining RSUs vest monthly through Oct 31, 2026). F3: N/A.
• Filing date: June 1, 2026 — appears timely relative to the May 29 transaction.

Context

• This was an exercise/conversion of a derivative (option/award). The withholding of 38 shares to cover taxes is a common cashless or net-share settlement mechanism and does not necessarily indicate a sell decision beyond meeting tax obligations.
• For retail investors, purchases or exercises that leave the insider with additional shares (here, a net +67 shares) can be viewed as the insider increasing their stake, though exercises often reflect vesting/contractual rights rather than a discretionary market purchase.