Company: FLDDW
Filing Date: 2025-01-14
Form Type: S-4/A
Source: 0001213900-25-003167
Chunk: 497

Company: Fold Holdings, Inc.
Filing Date: 2025-01-14
Form: S-4/A
Chunk 497
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     |                         | 10,601,545 |     |         |         — |     |         |         — |     |         | 10,601,545 |
| Total liabilities                         |     | $                       | 17,164,396 |     | $       |         — |     | $       | 1,229,467 |     | $       | 15,934,929 |

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 September 30, 2024 and December 31, 2023.

F-43

Fold, Inc.
Notes to Unaudited Condensed Financial Statements 12. FAIR VALUE MEASUREMENTS (cont.) 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 September 30, 2024 and December 31, 2023, 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 periods ended September 30, 2024 and 2023 was 10%. Simple Agreements for Future Equity The estimated fair value of the SAFEs (refer to Note 7) is determined based on the aggregated, probability -weightedaverage of the outcomes of certain scenarios, including: (i) equity financing, with conversion of the SAFEs into a number of shares of convertible preferred stock at the lower of the post -moneyvaluation cap price or discount price (ii) liquidity event (change of control, direct listing, or an initial public offering) with mandatory conversion to common stock at the lower of the post -moneyvaluation