Company: DDC
Filing Date: 2025-08-05
Form Type: F-3/A
Source: 0001213900-25-072148
Chunk: 149

Company: DDC Enterprise Ltd
Filing Date: 2025-08-05
Form: F-3/A
Chunk 149
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 consecutive days. If we fail to satisfy this requirement, our stock could be delisted which would have a
material adverse effect on our stock price.

Our 2023 Annual Report was
not filed with the SEC in a timely fashion. This and any other future filing delinquencies could cause our stock to be delisted from the
NYSE American which would have a material adverse effect on our stock price.

The National Securities Markets
Improvement Act of 1996, which is a federal statute, prevents or preempts the states from regulating the sale of certain securities,
which are referred to as “covered securities.” Although our Class A Ordinary Shares are covered securities, and although the
states are preempted from regulating the sale of our securities, the federal statute does allow the states to investigate companies if
there is a suspicion of fraud, and, if there is a finding of fraudulent activity, then the states can regulate or bar the sale of covered
securities in a particular case. Further, if we were no longer listed on the NYSE American, our securities would not be covered securities
and we would be subject to regulations in each state in which we offer our securities.

We have identified one material weakness in our internal control over financial reporting. If we are unable to remediate the material weakness, or if our remediation of the material weakness is not effective, or if we experience additional material weaknesses in the future or otherwise fail to maintain proper and effective internal control over financial reporting, our ability to produce accurate and timely consolidated financial statements could be impaired, investors may lose confidence in our financial reporting and the trading price of our Class A Ordinary Shares may decline.

Pursuant to Section 404 of
the Sarbanes-Oxley Act of 2002, our management will be required to report upon the effectiveness of our internal control over financial
reporting beginning with the annual report for our fiscal year ending December 31, 2024. When we lose our status as an “emerging
growth company” and reach an accelerated filer threshold, our independent registered public accounting firm will be required to
attest to the effectiveness of our internal control over financial reporting. The rules governing the standards that must be met for management
to assess our internal control over financial reporting are complex and require significant documentation, testing and possible remediation.
To comply with the requirements of being a reporting company under the Exchange Act, we will need to upgrade our information technology
systems, implement additional financial and management controls, reporting systems and procedures and