Company: FLDDW
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001013762-25-004107
Chunk: 621

Company: Fold Holdings, Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 1C
Chunk 621
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 taxable income during the periods in which temporary differences representing
net future deductible amounts become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future
taxable income and tax planning strategies in making this assessment. After consideration of all of the information available, management
believes that significant uncertainty exists with respect to future realization of the deferred tax assets and has therefore established
a full valuation allowance. For the year ended December 31, 2024, the change in the valuation allowance was $747,528. For the year ended
December 31, 2023, the change in the valuation allowance was $903,665.

A reconciliation of the federal income tax rate
to the Company’s effective tax rate at December 31, 2024 and 2023 is as follows:

    December 31, 

    2024  
    2023 
  
    Statutory federal income tax rate 
     21.00% 
     21.00%
  
    M&A expenses 
     (11.4)% 
     — 
  
    Change in valuation allowance 
     (60.28)% 
     13.35%
  
    Income tax provision 
     (50.68)% 
     34.35%

The Company files income tax returns in the U.S.
federal jurisdiction, in various state and local jurisdictions and is subject to examination by the various taxing authorities, since
inception.

F-21

FOLD HOLDINGS, INC.

(F/K/A FTAC EMERALD ACQUISITION CORP.)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

DECEMBER 31, 2024

NOTE 10. SEGMENT INFORMATION

ASC Topic 280, “Segment Reporting,”
establishes standards for companies to report in their financial statement information about operating segments, products, services, geographic
areas, and major customers. Operating segments are defined as components of an enterprise for which separate financial information
is available that is regularly evaluated by the Company’s chief operating decision maker, or group, in deciding how to allocate
resources and assess performance.

The Company’s chief operating decision maker has been identified
as the Chief Financial Officer (“CODM”), who reviews the operating results for the Company as a whole to make decisions about
allocating resources and assessing financial performance. Accordingly, management has determined that the Company only has one reportable
segment.

The CODM assess performance for the single
segment and decides how