Company: FLDDW
Filing Date: 2025-04-11
Form Type: 424B3
Source: 0001213900-25-031004
Chunk: 227

Company: Fold Holdings, Inc.
Filing Date: 2025-04-11
Form: 424B3
Chunk 227
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of an emerging growth enterprise, including limited capital resources, possible delays in product development, and possible cost overruns
due to price and cost increases in services. The Company may require additional capital to pursue certain business opportunities or respond
to technological advancements, competitive dynamics or technologies, customer demands, challenges, or unforeseen circumstances. Additionally,
the Company has incurred significant costs related to the Merger with Emerald and becoming a public company.

We may continue to pursue additional capital via
various capital instruments in the future, however, such funding may not be available on terms acceptable to us or at all. Although management
believes that such capital sources will continue to be available, there can be no assurances that financing will be available to the Company
when needed, or if available, on terms acceptable to the Company. If the Company is unable to obtain adequate financing on terms that
are satisfactory to the Company, when the Company requires it, the Company’s ability to continue to grow or support the business
and to respond to business challenges could be significantly limited, which may adversely affect the Company’s business plan.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of presentation

The accompanying financial statements have been
prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”) and include the accounts
of the Company.

Change in accounting principle

On March 31, 2022, the Securities and Exchange
Commission (the “SEC”) issued Staff Accounting Bulletin (“SAB”) No. 121 (“SAB 121”), which represented
a significant change regarding how a company safeguarding crypto assets held for its platform users reports such crypto assets on its
balance sheet and required retrospective application as of January 1, 2022. On January 30, 2025, the SEC issued SAB No. 122 (“SAB
122”), which rescinds previously-issued interpretative guidance with respect to accounting for obligations to safeguard digital assets
that an entity holds for its customers. SAB 122 directs an entity to apply Accounting Standards Codification (“ASC”) 450-20,
Loss Contingencies to determine whether an entity has a liability related to risk of loss from an obligation to safeguard digital
assets for customers. The Company has early adopted SAB 122 as of December 31, 2024 on a retrospective basis. As a result of the adoption
of SAB 122, the Company has derecognized the Safeguarding customer digital assets and liabilities previously