Company: FLDDW
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001013762-25-004107
Chunk: 2184

Company: Fold Holdings, Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 13
Chunk 2184
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.B. Financial Group, LLC (“CCM”), to provide financial advisory services in
connection with the Public Offering. The Company paid CCM a fee in an amount equal to 0.3% of the aggregate proceeds of the Public Offering
(excluding the proceeds of the exercise of the over-allotment option) net of underwriter’s expenses, which was paid to CCM upon
the closing of the Public Offering.

The Company also engaged CCM as an advisor in
connection with the Business Combination for which it will earn an advisory fee of 0.525% of the proceeds of the Public Offering (excluding
the proceeds of the exercise of the over-allotment option) payable at closing of the Business Combination.

CCM will also be entitled to an advisory fee equal
to 0.825% of the aggregate proceeds of the exercise of the over-allotment option, payable at the closing of the Business Combination.
The underwriter had agreed to reimburse the Company for the fee to CCM as it becomes payable out of the underwriting commission. Accordingly,
a reimbursement receivable and deferred advisory fee of $1,155,000 had been recorded. On October 18, 2023, the Company entered into an
agreement with the underwriter in which the underwriter waived any entitlement it may have to the deferred underwriting discount in respect
of any Business Combination. As a result, the Company reversed the reimbursement receivable and recognized $1,155,000 of advisory fee
expenses as of December 31, 2023.

Non-redemption Agreements

Between September 7 and 15, 2023, 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 Meeting that was held on September 19, 2023. 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 1,610,000 Class A Shares at the time of the Company’s initial
business combination (“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 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-