Company: FLDDW
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001013762-25-004107
Chunk: 1466

Company: Fold Holdings, Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 9
Chunk 1466
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 Standards Update
(“ASU”) 2014-15, “Disclosures of Uncertainties about an Entity’s Ability to Continue as a Going Concern,”
management believes that the existing cash and cash equivalents, accounts receivable, financings received, and digital assets held which the Company has available following the completion of the Business Combination will enable it
to sustain operations for a period of at least one-year from the issuance date of these financial statements. Accordingly, substantial
doubt about the Company’s ability to continue as a going concern as disclosed in previously issued financial statements has been
alleviated.

Subscription Agreement

On January 3, 2024, the Company entered into a
subscription agreement with Polar Multi-Strategy Master Fund (“Polar”), Emerald ESG Sponsor, LLC (“ESG Sponsor”),
Emerald ESG Advisors, LLC (“ESG Advisors”) and Emerald ESG Funding, LLC (“ESG Funding” and collectively with ESG
Sponsor and ESG Advisors, the “Sponsors”), to cover working capital requirements of the Company and costs related to a possible
extension of the Company’s trust liquidation date (the “Subscription Agreement”). Pursuant to the terms and subject
to the conditions of the Subscription Agreement, Polar agreed to contribute up to $550,000 to ESG Funding (the “Capital Contribution”).
An initial capital call of $350,000 took place within five (5) business days of the signing of the Subscription Agreement, and a second
capital call of $200,000 took place on April 2, 2024. As of December 31, 2024 and 2023, $550,000 and $0 was outstanding on the promissory
note, gross of the discount, under the subscription agreement, respectively. As a result of the Business Combination, Polar received $550,000
and 550,000 shares of common stock of the Company in full payment of the Company’s obligations under the Subscription Agreement.

F-8

FOLD HOLDINGS, INC.

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

DECEMBER 31, 2024

NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The accompanying consolidated financial statements
are presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and pursuant
to the rules and regulations of the SEC.