Company: FLDDW
Filing Date: 2025-01-24
Form Type: 424B3
Source: 0001213900-25-006075
Chunk: 451

Company: Fold Holdings, Inc.
Filing Date: 2025-01-24
Form: 424B3
Chunk 451
---
, refer to Note 14. Capitalized software development costs, net The Company capitalizes significant costs incurred in the acquisition or development of the internal software for use in the Company’s various service offerings. The Company incurs costs in developing software inclusive of direct external costs and internal payroll costs. Internal payroll costs typically include salaries and wages. Capitalized software costs are stated at cost net of accumulated amortization. Amortization is provided utilizing the straight -linemethod over the estimated useful life of the software, which is three years. Costs incurred in the preliminary and post -implementationphases of the Company’s internal use software are expensed as incurred. Capitalized software development costs consisted of the following:

|                                             |     |   | December 31, 
         2023 |   |     |   | December 31, 
         2022 |   |
|:--------------------------------------------|:----|:--|-------------:|:--|:----|:--|-------------:|:--|
| Capitalized software, gross carrying amount |     | $ |      747,663 |   |     | $ |      744,070 |   |
| Less: accumulated amortization              |     |   |     (193,897 | ) |     |   |     (272,544 | ) |
| Capitalized software, net carrying value    |     | $ |      553,766 |   |     | $ |      471,526 |   |

The gross carrying amount of internally developed software costs that had been capitalized but not placed into service is as follows:

|                                              |     | December 31, 
 2023         |         |     | December 31, 
 2022         |   |
|:---------------------------------------------|:----|:-------------|--------:|:----|:-------------|:--|
| Capitalized software not placed into service |     | $            | 204,370 |     | $            | — |

During the years ended December 31, 2023 and 2022, the Company recorded amortization expense on capitalized software development costs placed in service in the amount of $0.4 million and $0.3 million, respectively. During the years ended December 31, 2023 and 2022, amortization expense included the write -offof capitalized software development costs of $0.2 million and $0.1 million, respectively, related to the abandonment of the associated projects.

F-10 Fold,