Company: FLDDW
Filing Date: 2025-04-01
Form Type: S-1
Source: 0001213900-25-026537
Chunk: 232

Company: Fold Holdings, Inc.
Filing Date: 2025-04-01
Form: S-1
Chunk 232
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 2024 Initial Investor Note and the Investor Warrants using the relative fair value allocation method on the date of issuance. The estimated fair values of the conversion option under the December 2024 Initial Investor Note and Investor Warrants were calculated under a Black-Scholes model utilizing the enterprise valuation of Fold’s common shares as of December 31, 2024. The Company has elected not to subsequently remeasure the convertible note. Further, the Company concluded that the Investor’s right to acquire the Additional Investor Note is separately exercisable from the December 2024 Initial Investor Note and the Investor Warrants. Each of the Investor Notes will be sold at an original issue discount of 5%. F-21 Fold, Inc. Notes to Financial Statements The Company’s December 2024 Initial Investor Note was comprised of the following components:

|                                          |     | December 31, 
 2024         |            |     | December 31, 
 2023         |   |
|:-----------------------------------------|:----|:-------------|-----------:|:----|:-------------|:--|
| Senior Secured Convertible Notes         |     | $            | 20,000,000 |     | $            | - |
| Less:                                    |     |              |            |     |              |   |
| Debt discount, net of amortization       |     |              |  6,636,805 |     |              | - |
| Debt issuance costs, net of amortization |     |              |  1,610,290 |     |              | - |
| Convertible debt, net                    |     | $            | 11,752,905 |     | $            | - |

The Company recorded interest expense under the December 2024 Initial Investor Note based on a stated interest rate of 12% per annum, as well as the amortization of the debt discount and debt issuance costs, which the Company computed using the effective interest method. The debt discount represents the 5% original issue discount, as well as the bifurcation of the value ascribed to the Investor Warrants on a relative fair value basis, after separately valuing the warrants and the December 2024 Initial Investor Note. Total interest expense recognized related to the December 2024 Initial Investor Note for the year ended December 31, 2024 was $0.2 million, comprised of a nominal accrual of contractual interest expense and $0.2 million of amortization of the debt discount and debt issuance costs