Company: FLDDW
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001013762-25-004107
Chunk: 1955

Company: Fold Holdings, Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 14
Chunk 1955
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 reversed the reimbursement receivable and recognized $1,155,000 of advisory fee
expenses as of December 31, 2023.

Non-redemption Agreements

Between September 7 and 15, 2023, the Company
entered into non-redemption agreements with unaffiliated third parties in exchange for each such party agreeing not to redeem public shares
in connection with the Meeting that was held on September 19, 2023. In exchange for the foregoing commitments not to redeem public shares,
the Company has agreed to issue or cause to be issued an aggregate of 1,610,000 Class A Shares at the time of the Company’s initial
business combination (“Investor Shares”). In addition, the Company has agreed that it will not utilize any funds from the
Trust Account to pay any potential excise taxes that may become due pursuant to the IR Act upon a redemption of public shares, including
in connection with the Charter Amendment, an initial business combination or liquidation of the Company. The Company evaluated the classification
and accounting of the issuance of the Investor Shares under ASC 815-40, “Derivatives and Hedging – Contracts in Entity’s
Own Equity”. The Company concluded that the monetary value of the obligation is a known and fixed amount at inception as the monetary
value of the obligation will be defined and provided to each investor with the final number of Investor Shares stated in the non-redemption
agreements. Therefore, the settlement terms of the non-redemption agreement (i.e., number of shares held by the holder) is considered
an input into a fixed-for-fixed contract and the shares issued will be recorded in equity. The Company estimated the aggregate fair value
of the 1,610,000 Investor Shares attributable to the non-redeeming shareholders to be $708,400 or $0.44 per share. The fair value of the
Investor Shares was recorded as an expense with a corresponding credit to additional paid-in capital. The fair value was determined based
on an application of a binomial/lattice model which is considered to be a Level 3 fair value measurement.

F-16

FOLD HOLDINGS, INC.

(F/K/A FTAC EMERALD ACQUISITION CORP.)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

DECEMBER 31, 2024

The key inputs into the binomial/lattice model
for the Investor Shares were as follows at September 30, 2023:

    Input 
    September