Company: FLDDW
Filing Date: 2025-04-01
Form Type: S-1
Source: 0001213900-25-026537
Chunk: 266

Company: Fold Holdings, Inc.
Filing Date: 2025-04-01
Form: S-1
Chunk 266
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Subscription Agreement

The Company evaluated the accounting for the Subscription
Agreement under ASC 480 “Distinguishing Liabilities from Equity”. The Company concluded that the subscription shares to be
issued as part of the bundled transaction are classified and accounted for as equity. Therefore, the proceeds are required to be allocated
based on the relative fair values of the base instrument of the investment amount and the Common Stock in accordance with the guidance
in ASC 470 “Debt.” On April 2, 2024 and January 2, 2024, Polar contributed a $ Capital Contribution and a $
Capital Contribution, respectively, pursuant to the Subscription Agreement. At December 31, 2024 and 2023, $ and $ were outstanding
under the promissory note of the subscription agreement, respectively.

The table below summarizes the outstanding promissory note under the
Subscription Agreement as of December 31, 2024:

| Principal value of promissory note January 13, 2024 |     | $ | 350,000 |
| Principal value of promissory note April 2, 2024    |     |   | 200,000 |
| Total promissory notes                              |     | $ | 550,000 |

F-46 FOLD HOLDINGS, INC. (F/K/A FTAC EMERALD ACQUISITION CORP.) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2024 Merger Agreement On July 24, 2024, the Company and Fold, Inc. announced that they have entered into an Agreement and Plan of Merger by and among the Company, EMLD Merger Sub Inc., a wholly-owned subsidiary of the Company, and Fold, pursuant to which, among other things, Merger Sub will be merged with and into Fold with Fold surviving the merger as a wholly-owned subsidiary of the Company. As a result of the Transactions, Fold will become a subsidiary of the Company, with the former stockholders of Fold becoming stockholders of the Company. Consideration The aggregate consideration to be paid in the Transactions will consist of shares of the Company’s Class A common stock based on Fold’s pre-money equity value of $ 365million. In the event the 60-volume weighted average price of Bitcoin as of the day immediately prior to the closing of the Merger (the “Closing”) is greater than $ 90,000, the aggregated consideration to be paid in the Transactions will be increased by