Company: FLDDW
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001013762-25-004107
Chunk: 300

Company: Fold Holdings, Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 1A
Chunk 300
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 to non-income taxes, such as
payroll, sales, use, value-added, digital services, net worth, property, and goods and services taxes in the United States and may
become subject to similar non-income taxes in various foreign jurisdictions. Specifically, we may be subject to new allocations of tax
as a result of increasing efforts by certain jurisdictions to tax activities that may not have been subject to tax under existing tax
principles. Companies such as ours may be adversely impacted by such taxes. Tax authorities may disagree with certain positions we have
taken. As a result, we may have exposure to additional tax liabilities that could have an adverse effect on our operating results and
financial condition.

As a result of these and other factors, the ultimate
amount of tax obligations owed may differ from the amounts recorded in our financial statements and any such difference may harm our operating
results in future periods in which we change our estimates of our tax obligations or in which the ultimate tax outcome is determined.

Our ability to use our deferred tax assets may be subject to
certain limitations under U.S. or foreign law.

Realization of our deferred tax assets, in the form
of future domestic or foreign tax deductions, credits or other tax benefits, will depend on future taxable income, and there is a risk
that some or all of such tax assets could be subject to limitation or otherwise unavailable to offset future income tax liabilities, all
of which could adversely affect our operating results. For example, future changes in our stock ownership, the causes of which may be
outside of our control, could result in an ownership change under Section 382 of the Internal Revenue Code of 1986, as amended (the
“Code”), which could limit our use of such tax assets in certain circumstances. Similarly, additional changes may be made
to U.S. (federal and state) and foreign tax laws which could further limit our ability to fully utilize these tax assets against
future taxable income.

Under the Inflation Reduction Act, our ability to
utilize tax deductions or losses from prior years may be limited by the imposition of the 15% minimum tax if, in future years,
such minimum tax applies to us. Therefore, we may be required to pay additional U.S. federal income taxes in future years despite
any available future tax deductions, U.S. federal net operating loss (“NOL”) carryforwards, credits or other tax benefits
that we accumulate.

If our estimates or