Company: DDC
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043916
Chunk: 266

Company: DDC Enterprise Ltd
Filing Date: 2025-05-15
Form: 20-F
Item: Item 19
Chunk 266
---
 25 September 2022.

In October 2020, the Company agreed with
the lender to extend the loan to be expired by March 2021, and revised interest to8% per annum (“the second modification”).
In addition, the Company revised the exercise price of both B-2 Warrant and C Warrant to US$37.92per share. Both B-2 Warrant and C Warrant
became exercisable at the time on the earlier of: (i) the consummation of a qualified IPO; and (ii) 25 September 2023.

In February 2021, the Company repaid HK$7.8million
and in March 2021, the Company agreed with the lender to extend the remaining unpaid principal of HK$15.7million to be expired on
the earlier of (i) the consummation of a qualified IPO; and (ii) September 25, 2021. The interest of the outstanding amount
of the loan remains at8% per annum (“the third modification”).

In September 2021, the Company agreed with
the lender to extend the loan to be expired on the earlier of (i) the consummation of a qualified IPO; and (ii) April 2022.
The interest remains at8% per annum. Concurrently the Company granted additional warrants (“ Class A OS Warrant”) to the same
lender for a consideration of HK$1.0to subscribe for the new Class A Ordinary Shares at an exercise price of US$10.64per share. The
total subscription price for the Class A Ordinary Shares shall not exceed US$2,405,964. At the same time, the B-2 & C Warrant issued
to the lender were cancelled. The Class A OS Warrant will expire on 25 September 2023 (“the fourth modification”).

The warrants are legally detachable and separately
exercisable for underlying Redeemable Convertible Preferred Shares that are contingently redeemable and therefore are considered a freestanding
financial liability under ASC 480. The Class A OS Warrant are legally detachable and separately exercisable for variable number of
the Company’s equity shares and therefore are considered a freestanding financial liability under ASC 480. The warrants are
initially measured and recognized at its fair value and also subsequently measured at fair value with changes in fair value recognized
in “changes in fair value of financial instruments” in the consolidated statements of