Company: FLDDW
Filing Date: 2025-01-22
Form Type: S-4/A
Source: 0001213900-25-005202
Chunk: 475

Company: Fold Holdings, Inc.
Filing Date: 2025-01-22
Form: S-4/A
Chunk 475
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3,009,662 |     | $       |         — |     | $       |       — |     | $       |  3,009,662 |
| Safeguarding customer digital liabilities |     |                         |    257,407 |     |         |         — |     |         | 257,407 |     |         |          — |
| SAFEs                                     |     |                         |  8,727,540 |     |         |         — |     |         |       — |     |         |  8,727,540 |
| Total liabilities                         |     | $                       | 11,994,609 |     | $       |         — |     | $       | 257,407 |     | $       | 11,737,202 |

F-24

Fold, Inc.
Notes to Financial Statements 13. FAIR VALUE MEASUREMENTS (cont.) The carrying amounts of certain financial instruments, including cash and cash equivalents, accounts receivables, accounts payable and accrued liabilities, and deferred revenue approximate their fair values due to their short -termnature. The fair value of the safeguarding obligation for digital assets and the corresponding safeguarding asset for digital assets was determined using Level 2 inputs which included using the value of the safeguarded asset in the market we determined to be the principal market for the related digital asset as of December 31, 2023 and 2022. Customer rewards liability The customer reward liability is classified as a Level 3 financial instrument within the fair value hierarchy primarily due to the reward forfeiture rate applied to the value of the bitcoin obligation, which is an unobservable input to the fair value measurement. The Company has determined the bitcoin price based on its value in the market we determined to be the principal market for the related digital asset as of December31, 2023 and 2022, which is considered a Level 1 input. The forfeiture rate is then applied to reflect an estimated breakage rate of rewards that have been forfeited based on the contractual terms and conditions of our Rewards Program and historical trends of forfeiture rates on a three -yeartrailing basis. The estimated forfeiture rate applied to our customer rewards liability for the years ended December31, 2023 and 2022 was 10%. Simple Agreements for Future Equity The estimated fair value of the SAFEs (refer to Note 8) is determined based on the aggregated, probability -weightedaverage of the outcomes of certain scenarios, including: (i)