Company: FLDDW
Filing Date: 2025-07-11
Form Type: S-1
Source: 0001213900-25-062935
Chunk: 252

Company: Fold Holdings, Inc.
Filing Date: 2025-07-11
Form: S-1
Chunk 252
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 issued SAB 122, which rescinds SAB 121 and the obligation to record a safeguarding asset and liability for digital assets that an entity custodies on behalf of its customers. SAB 122 provides the SEC staff’s view that it would instead be appropriate for an entity that has an obligation to safeguard digital assets (such as bitcoin) to determine whether to recognize a liability related to the risk of loss under such an obligation, and if so, the measurement of such a liability, by applying the recognition and measurement requirements for liabilities arising from contingencies in FASB Subtopic 450 -20. Entities are permitted to early adopt SAB 122 in any interim or annual financial statement period included in filings with the SEC on or after January 30, 2025. Adoption is required on a fully retrospective basis in annual periods beginning on or after December 15, 2024. The Company early adopted SAB 122 as of December 31, 2024. For further detail on our safeguarding customer digital assets and liabilities, refer to the Change in accounting principle above and Note 15. 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. F-11

Fold, Inc.
Notes to Financial Statements 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) Capitalized software development costs consisted of the following:

|                                             |     |   | December 31, 
         2024 |   |     |   | December 31, 
         2023 |   |
|:--------------------------------------------|:----|:--|-------------:|:--|:----|:--|-------------:|:--|
| Capitalized software, gross carrying amount |     | $ |    1,486,228 |   |     | $ |      747,663 |   |
| Less: accumulated amortization              |     |   |     (486,163 | ) |     |   |     (