Company: FLDDW
Filing Date: 2025-07-11
Form Type: S-1
Source: 0001213900-25-062935
Chunk: 344

Company: Fold Holdings, Inc.
Filing Date: 2025-07-11
Form: S-1
Chunk 344
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 accompanying statements of operations. Litigation The Company was not a party of any ongoing or pending litigation as of March 31, 2025 and 2024, and accordingly, has not made any accrual related to legal proceedings in the Company’s balance sheets. 14. INCOME TAXES During the three months ended March 31, 2025, the Company had losses before income taxes of $ 48.9million and a nominal amount of income tax expense. During the three months ended March 31, 2024, the Company had losses before income taxes of $ 0.9million and a nominal amount of income tax expense. For the three months ended March 31, 2025, the Company recognized income tax expense instead of an income tax benefit at the expected federal tax rate of 21% due to certain losses that are not deductible for tax purposes and an increase in the valuation allowance, partially offset by the effect of state income taxes. For the three months ended March 31, 2024, the Company recognized income tax expense instead of an income tax benefit at the expected federal tax rate of 21% due to certain losses that are not deductible for tax purposes and an increase in the valuation allowance, partially offset by the effect of state income taxes.

F-74

Fold Holdings, Inc.
Notes to Unaudited Condensed Financial Statements 14. INCOME TAXES (cont.) As of March 31, 2025, the Company has federal and state net operating loss (NOL) carryforwards available to offset future taxable income. Section 382 imposes an annual limitation on the amount of taxable income that can be offset by NOLs following a greater than 50% ownership change by 5% shareholders over a rolling three -yearperiod. As of March 31, 2025, the Company has not completed a study to assess Section 382. Until this analysis is complete, no assurance can be given that the Company will be able to fully utilize its NOL carryforwards. If a limitation is determined to apply, it could materially impact the Company’s ability to offset future taxable income and reduce future cash tax obligations. The Company will update this disclosure in future filings as more information becomes available.

15. FAIR VALUE MEASUREMENTS

Financial assets and liabilities that are measured at fair value on a recurring basis are classified as Level1, Level2, and Level 3 as follows:

|                            |     | As of March 31, 2025 |