Company: FLDDW
Filing Date: 2025-04-01
Form Type: S-1
Source: 0001213900-25-026537
Chunk: 265

Company: Fold Holdings, Inc.
Filing Date: 2025-04-01
Form: S-1
Chunk 265
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17, 2024, 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 January Meeting that was held on January 19, 2024. 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 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 January 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 Investor Shares attributable to the non-redeeming shareholders
to be $ or $ 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 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 Investor Shares 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 |