Company: FLDDW
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001013762-25-004107
Chunk: 114

Company: Fold Holdings, Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 1
Chunk 114
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 forms or arise in a variety of situations, has been increasing recently. Volatility in the stock price
of our Common Stock or other reasons may in the future cause it to become the target of securities litigation or stockholder activism.
Securities litigation and stockholder activism, including potential proxy contests, could result in substantial costs and divert management’s
and the board of directors’ attention and resources from our business. Additionally, such securities litigation and stockholder
activism could give rise to perceived uncertainties as to our future, adversely affect its relationships with service providers and make
it more difficult to attract and retain qualified personnel. Also, we may be required to incur significant legal fees and other expenses
related to any securities litigation and activist stockholder matters. Further, its stock price could be subject to significant fluctuation
or otherwise be adversely affected by the events, risks and uncertainties of any securities litigation and stockholder activism.

The Public Warrants have become exercisable for shares of our
Common Stock, which exercise could increase the number of shares eligible for future resale in the public market and result in dilution
to our stockholders.

Outstanding Public Warrants to purchase an aggregate
of 12,434,671 shares of our Common Stock have become exercisable following the completion of the Business Combination. Each whole warrant
entitles the holder thereof to purchase one share of our Common Stock at a price of $11.50 per whole share, subject to adjustment. Public
Warrants may be exercised only for a whole number of shares of our Common Stock. To the extent such warrants are exercised, additional
shares of our Common Stock will be issued, which will result in dilution to the then existing holders of our Common Stock and an increase
in the number of shares eligible for resale in the public market. Sales of substantial numbers of such shares in the public market could
adversely affect the market price of our Common Stock.

We may amend the terms of the Public Warrants in a manner that
may be adverse to holders of Public Warrants with the approval by the holders of at least a majority of the then outstanding Public Warrants
or for amendments necessary for the warrants to be classified as equity. As a result, the exercise price of the Public Warrants could
be increased, the exercise period could be shortened and the number of shares of Common Stock purchasable upon exercise of a Public Warrant
could be decreased, all without your approval.

The Public Warrants were issued in registered form
under the Warrant Agreement between