Company: FLDDW
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001013762-25-004107
Chunk: 952

Company: Fold Holdings, Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 5
Chunk 952
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 fee in the accompanying balance sheets.

We engaged Cohen & Company Capital Markets,
a division of J.V.B. Financial Group, LLC (“CCM”), to provide financial advisory services in connection with the Public Offering.
We paid CCM a fee in an amount equal to 0.3% of the aggregate proceeds of the Public Offering (excluding the proceeds of the exercise
of the over-allotment option) net of underwriter’s expenses, upon the closing of the Public Offering. We also engaged CCM to act
as an advisor in connection with the Business Combination for which it will earn an advisory fee of 0.525% of the proceeds of the Public
Offering (excluding the proceeds of the exercise of the over-allotment option) payable at closing of the Business Combination. CCM will
also be entitled to an advisory fee equal to 0.825% of the aggregate proceeds of the exercise of the over-allotment option, payable at
the closing of the Business Combination. The underwriter had agreed to reimburse us for the fee to CCM as it becomes payable out of the
underwriting commission. Accordingly, a reimbursement receivable and deferred advisory fee of $1,155,000 had been reflected in the accompanying
balance sheets. On October 18, 2023, we entered into an agreement with the underwriter in which the underwriter waived any entitlement
it may have to the deferred underwriting discount in respect of any Business Combination. As a result, we reversed the reimbursement receivable
and recognized $1,155,000 of advisory fee expenses as of December 31, 2023.

Critical Accounting Policies and Estimates

The preparation of the financial statements in
conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities
and disclosure of contingent assets and liabilities at the date of the financial statements.

74

Making estimates requires management to exercise
significant judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances
that existed at the date of the financial statements, which management considered in formulating its estimate, could change in the near
term due to one or more future confirming events. Accordingly, the actual results could differ significantly from those estimates. We
have identified the following as our critical accounting policies and estimates:

Class A Common Stock Subject to Possible Redemption

We account for our Class A common stock subject
to possible redemption in accordance with the guidance in Accounting Standards Codification (“