Newegg (NEGG) Chief Legal Officer Michael Chen Receives RSU Award

What Happened

• Michael Chen, Chief Legal Officer of Newegg Commerce, was granted 18,352 restricted stock units (RSUs) on July 29, 2026. The grant is reported at $0.00 (RSUs) and per the filing will vest 100% on July 29, 2027, subject to continued service.
• Separately, on July 31, 2026 Chen exercised/converted 105 derivative units by paying an exercise price of $13.28 per share (total cash paid $1,394). To satisfy tax withholding on that exercise, 38 shares were withheld (value reported $505). The remaining 67 shares were sold in an open market transaction on August 3, 2026 at $12.74 per share for proceeds of $854; that sale was effected pursuant to a Rule 10b5-1 trading plan.

Key Details

• Grant date: 2026-07-29 — 18,352 RSUs granted (footnote: 100% vests 7/29/2027, subject to service).
• Exercise/conversion: 2026-07-31 — 105 shares exercised at $13.28 each (total $1,394).
• Tax withholding: 38 shares withheld to satisfy tax obligation (value $505).
• Sale: 2026-08-03 — 67 shares sold at $12.74 each (proceeds $854); sale effected under a Rule 10b5-1 plan.
• Footnotes of interest: F1 (shares withheld for taxes), F2 (sale under Rule 10b5-1), F3 (RSU grant and 1‑year vesting).
• Shares owned after the transactions: not specified in the provided filing excerpt.
• Filing timeliness: filing date 2026-08-03 for transactions through 2026-08-03 — no late filing indicator in the provided data.

Context

• The sequence (exercise of 105 shares, 38 shares withheld for taxes, and sale of the remaining 67 shares) indicates the exercised shares were immediately used to satisfy tax obligations and sold — a routine cashless exercise/sale rather than a long-term buy-and-hold purchase.
• The larger RSU grant (18,352 RSUs) is a future compensation award that vests in one year and does not represent an immediate change in share ownership until vested and settled.