Company: FLDDW
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001013762-25-004107
Chunk: 710

Company: Fold Holdings, Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 2
Chunk 710
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 similar transaction that results in all of the stockholders having
the right to exchange their shares of common stock for cash, securities or other property. Any permitted transferees would be subject
to the same restrictions and other agreements of the initial stockholders with respect to any Founder Shares. Notwithstanding the foregoing,
in connection with an initial Business Combination, the initial holders may transfer, assign or sell their Founder Shares with the Company’s
consent to any person or entity that agrees in writing to be bound by the transfer restrictions set forth above.

Promissory Note —Related Party

In order to finance transaction costs in connection
with its initial Business Combination, the Sponsor or an affiliate of the Sponsor or certain of the Company’s officers and directors
may, but are not obligated to, loan the Company funds as may be required (the “Working Capital Loans”). If the Company completes
the initial Business Combination, the Company expects to repay such loaned amounts out of the proceeds of the Trust Account released to
the Company.

Emerald ESG Sponsor, LLC agreed to loan the Company
up to $300,000 to be used for a portion of the expenses of the Public Offering. These loans were non-interest bearing, unsecured and were
due at the earlier of June 30, 2022 or the closing of the Public Offering. The outstanding balance under the promissory note of $105,260
was repaid on December 27, 2021, and the promissory note was terminated and is no longer available to be drawn upon. As of December 31,
2024 and 2023, there were no amounts outstanding under the promissory note.

On January 13, 2023, the Sponsor agreed to loan
the Company up to $1,500,000 (the “Promissory Note”). The note is non-interest bearing and all outstanding amounts under the
Promissory Note will be due on the date on which the Company consummates a Business Combination. No portion of the amounts outstanding
under the Promissory Note may be converted into units at a price of $10.00 per unit, which would have been permissible as described in
the prospectus filed in connection with the Public Offering. On October 16, 2023, the Company and the Lender amended the Promissory Note
to increase the aggregate principal amount of the Promissory Note from $1,500,000 to $3,000,000. All other material terms of the