Company: FLDDW
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001013762-25-004107
Chunk: 1029

Company: Fold Holdings, Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 5
Chunk 1029
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Level 3) 
  
    Asset: 

    Investments held in Trust Account 
    $165,653,149  
    $165,653,149  
    $        —  
    $         — 

Promissory note

The note payable was valued using the standard
closed-form Black Scholes model which is considered to be a Level 3 fair value measurement.

The key inputs into the Black Scholes model for
the promissory note were as follows at January 3, 2024:

    Input 
    January 3, 2024 
  
    Risk-free interest rate 
     3.90%
  
    Term (in years) 
     5.0 
  
    Probability of de-SPAC 
     20.0%
  
    Exercise price 
    $11.50 
  
    Public Warrant Price 
    $0.053 

F-20

FOLD HOLDINGS, INC.

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

DECEMBER 31, 2024

The following table presents the changes in the
fair value of the Level 3 note payable:

    Fair value as of December 31, 2023
    $
    - 
  
    Initial value 
     550,000 
  
    Fair value as of December 31, 2024 
     550,000 

There were no transfers between Levels 1, 2 and
3 during the periods ended December 31, 2024 and 2023.

NOTE 9. INCOME TAXES

The Company’s net deferred tax assets are
as follows: 

    December 31, 

    2024  
    2023 
  
    Deferred tax asset 

      Organizational costs/Start-up costs 
    $2,001,367  
    $1,253,839 
  
      Federal net operating loss 
     —  
     — 
  
    Total deferred tax asset 
     2,001,367  
     1,253,839 
  
    Valuation allowance 
     (2,001,367) 
     (1,253,839)
  
    Deferred tax asset, net of allowance 
    $—  
    $— 

The income tax provision for the years ended December
31,