Company: FLDDW
Filing Date: 2025-01-24
Form Type: 424B3
Source: 0001213900-25-006075
Chunk: 550

Company: Fold Holdings, Inc.
Filing Date: 2025-01-24
Form: 424B3
Chunk 550
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 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 -redemptionagreements. Therefore, the settlement terms of the F-84

FTAC EMERALD ACQUISITION CORP.
NOTES TO CONDENSED FINANCIAL STATEMENTS
SEPTEMBER 30, 2024
(Unaudited) NOTE 6. COMMITMENTS AND CONTINGENCIES (cont.) non -redemptionagreement (i.e., number of shares held by the holder) is considered an input into a fixed -for -fixedcontract 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 -redeemingshareholders 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 -incapital. 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. The key inputs into the binomial/lattice model for the Investor Shares were as follows at September 30, 2023:

| Input                   |     | September 30, 
 2023          |       |   |
|:------------------------|:----|:--------------|------:|:--|
| Risk-free interest rate |     |               |   4.6 | % |
| Term (in years)         |     |               |   5.1 |   |
| Volatility              |     |               |  10.0 | % |
| Exercise price          |     |