Company: FLDDW
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001013762-25-004107
Chunk: 105

Company: Fold Holdings, Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 1
Chunk 105
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 issuing additional shares of our capital stock or offering debt or other equity securities,
including senior or subordinated notes, debt securities convertible into equity, or shares of preferred stock. Issuing additional shares
of our capital stock, other equity securities, or securities convertible into equity may dilute the economic and voting rights of our
existing stockholders, reduce the market price of our common stock, or both. Debt securities convertible into equity could be subject
to adjustments in the conversion ratio pursuant to which certain events may increase the number of equity securities issuable upon conversion.
Preferred stock, if issued, could have a preference with respect to liquidating distributions or a preference with respect to dividend
payments that could limit our ability to pay dividends to the holders of our common stock. Our decision to issue securities in any future
offering will depend on market conditions and other factors beyond our control, which may adversely affect the amount, timing or nature
of our future offerings. As a result, holders of our common stock bear the risk that our future offerings may reduce the market price
of our common stock and dilute their percentage ownership.

The requirements of being a public company, including compliance
with the reporting requirements of the Exchange Act, the requirements of the Sarbanes-Oxley Act and the requirements of the Nasdaq,
may strain our resources, increase our costs and require additional attention of management, and we may be unable to comply with these
requirements in a timely or cost-effective manner.

As a public company, we are subject to laws, regulations
and requirements, certain corporate governance provisions of the Sarbanes-Oxley Act, related regulations of the SEC and the requirements
of the Nasdaq, which Legacy Fold was not required to comply with as a private company. Complying with these statutes, regulations and
requirements will occupy a significant amount of time of our board of directors and management and significantly increases our costs and
expenses.

60

If we are unable to implement and maintain effective internal
control over financial reporting in the future, investors may lose confidence in the accuracy and completeness of our financial reports,
and the market price of our common stock may decline.

We are required to maintain internal controls over
financial reporting and to report any material weaknesses in such internal controls. In addition, we will be required in the future to
furnish a report by management on the effectiveness of our internal control over financial reporting, pursuant to Section 404 of
the Sarbanes-Oxley Act. The process of designing, implementing,