Company: FLDDW
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001013762-25-004107
Chunk: 96

Company: Fold Holdings, Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 1
Chunk 96
---
 other tools available to employees and service providers to be more limited or less reliable than in an office environment.
Further, the security systems in place at our employees’ and service providers’ homes may be less secure than those used in
an office environment, and while we have implemented technical and administrative safeguards to help protect our systems as our employees
and service providers work from home, we may be subject to increased cybersecurity risk, which could expose us to risks of data or financial
loss, and could disrupt our business operations. There is no guarantee that the data security and privacy safeguards we have put in place
will be completely effective or that we will not encounter risks associated with employees and service providers accessing company data
and systems remotely. We also face challenges due to the need to operate with the remote workforce and are addressing those challenges
to minimize the impact on our ability to operate.

Being a remote-first company may make it more difficult
for us to preserve our corporate culture and our employees may have decreased opportunities to collaborate in meaningful ways. Further,
we cannot guarantee that being a remote-first company will not have a negative impact on employee morale and productivity. Any failure
to preserve our corporate culture and foster collaboration could harm our future success, including our ability to retain and recruit
personnel, innovate and operate effectively, and execute on our business strategy.

Environmental, social and governance factors may impose additional
costs and expose us to new risks.

There is an increasing focus from certain investors,
regulators, employees, users and other stakeholders concerning corporate responsibility, specifically related to environmental, social
and governance matters (“ESG”). Some investors may use these non-financial performance factors to guide their investment strategies
and, in some cases, may choose not to invest in us if they believe our policies and actions relating to corporate responsibility are inadequate.
The growing investor demand for measurement of non-financial performance is addressed by third-party providers of sustainability assessment
and ratings on companies. The criteria by which our corporate responsibility practices are assessed may change due to the constant evolution
of the sustainability landscape, which could result in greater expectations of us and cause us to undertake costly initiatives to satisfy
such new criteria. If we elect not to or are unable to satisfy such new criteria, investors may conclude that our policies and actions
with respect to corporate social responsibility are inadequate. We may face reputational damage in the event that we do not meet the ESG
standards set by various constituencies.

55

Furthermore, if our competitors’ corporate
social responsibility performance is perceived