Company: FLDDW
Filing Date: 2025-05-15
Form Type: 424B3
Source: 0000950170-25-072851
Chunk: 19

Company: Fold Holdings, Inc.
Filing Date: 2025-05-15
Form: 424B3
Chunk 19
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 Remeasurement (gain) loss on customer rewards liability |     |                            |  1,796,730 |   |
| Balance at December 31, 2024                            |     | $                          |  8,569,651 |   |
| Rewards earned by customers                             |     |                            |    679,502 |   |
| Rewards fulfilments                                     |     |                            |   (714,802 | ) |
| Expired rewards                                         |     |                            |    (67,950 | ) |
| Remeasurement (gain) loss on customer rewards liability |     |                            | (1,100,857 | ) |
| Balance at March 31, 2025                               |     | $                          |  7,365,544 |   |

Rewards fulfilments represent amounts that were distributed to customers to fulfill customer rewards obligations. 8. RELATED PARTIES During the three months ended March 31, 2025, the Company entered into a securities purchase agreement (the “Securities Purchase Agreement”) with SATS Credit Fund LP (the “Investor”), pursuant to which the Company issued to the Investor a convertible note in the aggregate principal amount of approximately $46.3 million. Refer to Note 10 for further details. The Securities Purchase Agreement and the transactions contemplated thereby were approved by the audit committee and the board of directors of the Company specifically in light of certain related party components, including that the Investor is a private investment fund raised and managed by Ten31, LLC, which is an affiliate of Fold’s chairman, Dr. Jonathan Kirkwood. Dr. Kirkwood recused himself from the board of directors’ approval of the Securities Purchase Agreement and the related transactions. During the year ended December 31, 2024, the Company entered into a SAFE with Thesis Inc., a principal shareholder of the Company, totaling $1.0 million. 9. SAFEs On February 14, 2025, in connection with the closing of the Merger with FTAC Emerald, all SAFE notes held by the Company converted into 16.6 million shares of common stock. The fair value of the SAFEs on the date of conversion was $177.6 million. Prior to conversion, the Company’s SAFEs were recorded as a liability in the accompanying balance sheets and the Company recorded subsequent remeasurements in “Changes in fair value of SAFEs” in the statements of operations. However, because Fold’s SAFEs were structured to be settled via the delivery of common and