Company: FLDDW
Filing Date: 2025-04-11
Form Type: 424B3
Source: 0001213900-25-031004
Chunk: 238

Company: Fold Holdings, Inc.
Filing Date: 2025-04-11
Form: 424B3
Chunk 238
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 period with change in fair value
recognized in the consolidated statements of operations. Any embedded conversion features and/or freestanding warrants that meet the scope
exception under ASC 815 are initially recorded at their relative fair value in paid-in-capital and are not remeasured at fair value in
future periods.

The host debt instrument is initially recorded
at its relative fair value in current liabilities. The host debt instrument is accounted for in accordance with guidance applicable to
non-convertible debt under FASB ASC Topic 470 Debt (“ASC 470”) and is accreted to its face value over the term of the debt
with accretion expense and periodic interest expense recorded in the consolidated statements of operations.

Issuance costs are allocated to each instrument
in the same proportion as the proceeds that are allocated to each instrument. Issuance costs allocated to the debt hosted instrument are
netted against the proceeds allocated to the debt host. Issuance costs allocated to freestanding warrants classified in equity are recorded
in paid-in-capital.

Revenue recognition

The Company recognizes revenue from contracts
with customers in accordance with the guidance in ASC 606, which involves the following steps:

| ● | Identification of the contract, or contracts, with the customer; |

| ● | Identification of the performance obligations of the contract; |

| ● | Determination of the transaction price; |

| ● | Allocation of the transaction price to the performance obligations in the contract; and |

| ● | Recognition of the revenue when, or as, the Company satisfies a performance obligation. |

The Company’s primary revenue streams and
related performance obligations are described below. See Note 3 for further details and disaggregation of amounts.

Banking and payments – subscriptions

Fold offers a premium membership tier of our platform
called “Fold+”, which requires an annual or monthly prepayment depending on the customer’s payment frequency selection.
Our performance obligation for these revenues is the maintenance of a mobile application and financial payments platform for end users
that are Fold+ subscribers. The Company satisfies its performance obligation and recognizes revenue for subscriptions ratably over the
period of the subscription.

<div align='center'>F-14

Fold, Inc.

Notes to Financial Statements</div>

Banking and payments – debit card program

Qualified Fold customers may sign up for the Fold
Card, which is a prepaid Visa debit card issued by Sutton Bank (“Sutton”). Through the Debit Card Program, Fold earns transaction-based
revenues and various fee-based revenues. Fold earns