Company: FLDDW
Filing Date: 2025-08-11
Form Type: 424B3
Source: 0001213900-25-074298
Chunk: 307

Company: Fold Holdings, Inc.
Filing Date: 2025-08-11
Form: 424B3
Chunk 307
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 become due pursuant to the IR Act upon a redemption F-48

FOLD HOLDINGS, INC.
(F / K / A FTAC EMERALD ACQUISITION CORP.)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2024 NOTE 5. COMMITMENTS AND CONTINGENCIES (cont.) 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 -redemptionagreements. Therefore, the settlement terms of the non -redemptionagreement (i.e., number of shares held by the holder) is considered an input into a fixed -for -fixedcontract and the shares issued will be recorded in equity. The Company estimated the aggregate fair value of the 1,610,000 Investor Shares attributable to the non -redeemingshareholders to be $708,400 or $0.44 per share. The fair value of the Investor Shares was recorded as an expense with a corresponding credit to additional paid -incapital. 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. 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 17, 2024, the Company entered into non -redemptionagreements with unaffiliated third parties in exchange for each such party agreeing not to redeem public shares in