Company: DDC
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043916
Chunk: 287

Company: DDC Enterprise Ltd
Filing Date: 2025-05-15
Form: 20-F
Item: Item 19
Chunk 287
---
,279         -                 ( 14,336,844      -              -                 -                ( 14,424,123  
  Additions                                       -                -                 ( 19,237,039      -              -                 -                ( 19,237,039  
  Fair value change                               -                -                    4,716,634      -              -                 -                   4,716,634  
  Extinguishment upon conversion                  -                -                    9,432,067      -              -                 -                   9,432,067  
  Extinguishment upon reclassification            -                -                    8,807,795      -              -                 -                   8,807,795  
  Extinguishment upon settlement                  -                -                      541,306      -              -                 -                     541,306  
  Extinguishment upon maturity                    87,279           -                            -      -              -                 -                      87,279  
  Balance                                         -                -                 ( 10,076,081      -              -                 -                ( 10,076,081  

  The Option liability was expired in February 2023, the Class A OS Warrant was expired in September 2023.  
 ────────────────────────────────────────────────────────────────────────────────────────────────────────────

F-87

21. FAIR VALUE MEASUREMENT(cont.)

Recurring

The Company measured the fair value of its warrant
liabilities on a recurring basis using significant unobservable (Level 3) inputs as of December 31, 2023. The Company did not have warrant
liabilities in 2024.

The Company estimated the fair values of warrant
liabilities using the binomial option-pricing model with the assistance of an independent third-party valuation firm using the corresponding
inputs in 2023:

                                                                     March 2019      
                                                                     B-2             
                                                                     Warrant         
 ─────────────────────────────────────────────────────────────────────────────────────
                                                                     As of           
  Risk-free interest rate                                            3.92%- 4.12%    
  Expected volatility                                                35.55%- 41.61%  
  Dividend yield                                                     0.00            
  Remaining contractual life                                         Permanent       
  Fair value of the underlying preferred shares/ordinary shares      US$ 4.67        

  (1)      The risk-free interest rate within warrant liabilities was estimated based on the yield to maturity of U.