Company: FLDDW
Filing Date: 2025-04-01
Form Type: S-1
Source: 0001213900-25-026537
Chunk: 264

Company: Fold Holdings, Inc.
Filing Date: 2025-04-01
Form: S-1
Chunk 264
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 to be issued an aggregate of 1,610,000Class A Shares at the time of the Company’s initial business combination (“Investor Shares”). In addition, the Company has agreed that it will not utilize any funds from the Trust Account to pay any potential excise taxes that may become due pursuant to the IR Act upon a redemption of public shares, including in connection with the Charter Amendment, an initial business combination or liquidation of the Company. The Company evaluated the classification and accounting of the issuance of the Investor Shares under ASC 815-40, “Derivatives and Hedging – Contracts in Entity’s Own Equity”. The Company concluded that the monetary value of the obligation is a known and fixed amount at inception as the monetary value of the obligation will be defined and provided to each investor with the final number of Investor Shares stated in the non-redemption agreements. Therefore, the settlement terms of the non-redemption agreement (i.e., number of shares held by the holder) is considered an input into a fixed-for-fixed contract and the shares issued will be recorded in equity. The Company estimated the aggregate fair value of the 1,610,000Investor Shares attributable to the non-redeeming shareholders to be $ 708,400or $ 0.44per share. The fair value of the Investor Shares was recorded as an expense with a corresponding credit to additional paid-in capital. The fair value was determined based on an application of a binomial/lattice model which is considered to be a Level 3 fair value measurement. F-45 FOLD HOLDINGS, INC. (F/K/A FTAC EMERALD ACQUISITION CORP.) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2024

The key inputs into the binomial/lattice model
for the Investor Shares were as follows at September 30, 2023:

| Input                   |     | September 30, 
 2023          |       |   |
|:------------------------|:----|:--------------|------:|:--|
| Risk-free interest rate |     |               |   4.6 | % |
| Term (in years)         |     |               |   5.1 |   |
| Volatility              |     |               |  10.0 | % |
| Exercise price          |     | $             | 11.50 |   |
| Asset Price             |     | $             | 10.46 |   |

On January