Company: FLDDW
Filing Date: 2025-07-11
Form Type: S-1
Source: 0001213900-25-062935
Chunk: 137

Company: Fold Holdings, Inc.
Filing Date: 2025-07-11
Form: S-1
Chunk 137
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 gains (losses) that occur upon the fulfillment of Rewards. Management has determined that gains or losses on digital assets held for the purposes of rewards redemptions are related to its core operations, and therefore classifies all gains and losses on the remeasurement of these digital assets as an operating income or expense in its financial statements. Other selling, general and administrative expenses Other selling, general and administrative expenses consist primarily of costs associated with contract labor, computer and internet, insurance, customer support costs, dues and subscriptions, and travel. Other income (expense) Gain (loss) on digital assets — investment treasury Gain (loss) on digital assets — investment treasury includes components of unrealized gains (losses) resulting from the remeasurement in fair value of bitcoin held by Fold with the intention to hold as a long -terminvestment in the current reporting period. Management has determined that gains or losses on digital assets held as a long -terminvestment are not related to its core operations, and therefore classifies all gains and losses on the remeasurement of these digital assets as a non -operatingincome or expense in its financial statements. Change in fair value of SAFEs Change in fair value of SAFEs results from unrealized gain or loss due to the change in fair value of SAFEs. For accounting purposes, outstanding SAFEs are classified as liabilities and the change in their fair value is reflected in the statement of operations. However, Fold’s SAFEs were structured to be settled via the delivery of common and/or preferred shares upon execution of an equity financing or liquidity event. On February 14, 2025, upon finalization of the Merger Agreement with FTAC Emerald, all SAFE notes held by the Company converted into common shares. Interest expense Interest expense primarily consists of amortization of the convertible note discount and issuance costs, as well as interest expense on the convertible note. Other income Other income primarily consists of interest income earned on cash and cash equivalents. 79

Income tax expense The provision for income taxes consists primarily of federal, state and local tax. Our effective tax rate fluctuates from period to period due to changes in the mix of income and losses in jurisdictions with a wide range of tax rates, changes resulting from the amount of recorded valuation allowance, permanent differences between U.S. generally accepted accounting principles and local tax laws, and certain one -timeitems. Results of operations for the years ended December 31, 2024 and 2023 Results of operations

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