Company: FLDDW
Filing Date: 2025-04-11
Form Type: 424B3
Source: 0001213900-25-031004
Chunk: 230

Company: Fold Holdings, Inc.
Filing Date: 2025-04-11
Form: 424B3
Chunk 230
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 ● | Level 3 - Unobservable inputs reflecting our view about the                                              
 assumptions that market participants would use in measuring the fair value of the assets or liabilities. |

Cash and cash equivalents

The Company consider all short-term, highly liquid
investments with maturities from the purchase date of three months or less to be cash equivalents. Cash and cash equivalents were $18.3
million and $1.5 million as of December 31, 2024 and 2023, respectively.

Accounts receivable, net and current expected credit losses

Accounts receivable consist of balances due from
customers and are reported net of allowance for credit loss, which represents their estimated fair value. These receivables are generally
trade receivables due in one year or less or expected to be billed and collected in one year. The Company estimates credit losses on trade
receivables in accordance with ASC 326, Financial Instruments - Credit Losses. The Company recognizes allowance for credit losses
on a collective (pool) basis when similar characteristics exist. The estimate for the allowance for credit losses is based on a historical
loss rate for each pool. Management considers qualitative factors such as changes in economic factors, regulatory matters, and industry
trends to determine if the allowance needs to be adjusted. Our average collection cycle is less than thirty days, and we have no history
of material credit losses. Provisions for allowances for credit losses will be recorded in other selling, general and administrative expenses.
We did not record an allowance for expected credit losses as of December 31, 2024 or 2023.

<div align='center'>F-9

Fold, Inc.

Notes to Financial Statements</div>

Concentration of credit risk

We did not have any counterparties with transactions
or balances comprising more than 10% of revenues or accounts receivable, net as of and for the years ended December 31, 2024 or 2023.

The Company’s cash and cash equivalents,
digital assets held, and accounts receivable are potentially subject to concentration of credit risk. The Company invests cash and cash
equivalents primarily in highly liquid, highly rated money-market instruments which are not fully insured. The Company may also have corporate
deposit balances with financial institutions which exceed the Federal Deposit Insurance Corporation insurance limit of $250,000. The Company
has not experienced losses on these accounts and does not believe it is exposed to any significant credit risk with respect to these accounts.
The Company also holds all digital assets at