Company: DDC
Filing Date: 2025-07-22
Form Type: F-3
Source: 0001213900-25-066342
Chunk: 81

Company: DDC Enterprise Ltd
Filing Date: 2025-07-22
Form: F-3
Chunk 81
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 performance. It is possible
that in the future, our operating results may be below the expectations of public market analysts and investors. In that event, the market
price of our listed securities may fall.

Risks Related to Our Bitcoin Strategy and Holdings

A significant decrease in the market value of our bitcoin holdings could adversely affect our ability to satisfy our financial obligations.

As of December 31, 2024, our outstanding indebtedness was $21,120,674,
and our annual interest expense was $2,293,230. As part of our bitcoin strategy, we expect to incur or continue to incur additional
indebtedness and other fixed charges. For the year ended December 31, 2024, our food innovations business did not generate positive cash
flow from operations. If our food innovations business does not generate cash flow in future periods sufficient to satisfy our financial
obligations, including our debt and cash dividend obligations, we intend to fund our obligations using cash flow generated by equity or
debt financings. Our ability to obtain equity or debt financing may in turn depend on, among other factors, the value of our bitcoin holdings,
investor sentiment and the general public perception of bitcoin, our strategy and our value proposition. Accordingly, a significant decline
in the market value of our bitcoin holdings or a negative shift in these other factors may create liquidity and credit risks, as such
a decline or such shifts may adversely impact our ability to secure sufficient equity or debt financing to satisfy our financial obligations,
including our debt and cash dividend obligations. These risks could materialize at times when bitcoin is trading below its carrying value
on our most recent balance sheet or our cost basis. As bitcoin constitutes the vast bulk of assets on our balance sheet, if we are unable
to secure equity or debt financing in a timely manner, on favorable terms, or at all, we may be required to sell bitcoin to satisfy these
obligations. Any such sale of bitcoin may have a material adverse effect on our operating results and financial condition, and could impair
our ability to secure additional equity or debt financing in the future. Our inability to secure additional equity or debt financing in
a timely manner, on favorable terms or at all, or to sell our bitcoin in amounts and at prices sufficient to satisfy our financial obligations,
including our debt service and cash dividend obligations, could cause us to default under such obligations. Any default on our current
or future indebtedness or preferred stock may have a material adverse effect on our financial condition.