Company: FLDDW
Filing Date: 2025-01-24
Form Type: 424B3
Source: 0001213900-25-006075
Chunk: 492

Company: Fold Holdings, Inc.
Filing Date: 2025-01-24
Form: 424B3
Chunk 492
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 We sponsor a 401(k) defined contribution plan covering all eligible U.S. employees. Both Company and employee contributions to the 401(k) plan are discretionary. For each of the nine months ended September 30, 2024 and 2023, we recorded a nominal amount of expense related to the 401(k) plan, which is included in compensation and benefits in the accompanying statements of operations. Litigation The Company was not a party of any ongoing or pending litigation as of September 30, 2024 and 2023, and accordingly, has not made any accrual related to legal proceedings in the Company’s balance sheets.

F-42

Fold, Inc.
Notes to Unaudited Condensed Financial Statements 11. INCOME TAXES During the nine months ended September 30, 2024, the Company had losses before income taxes of $65.6 million and a nominal amount of income tax expense. During the nine months ended September 30, 2023, the Company had losses before income taxes of $5.8 million and a nominal amount of income tax expense. For the nine months ended September 30, 2024, the Company’s actual tax expense differs from the expected tax benefit utilizing a federal rate of 21%, primarily due to the addback of the non -deductibleSAFE Fair Value Adjustment and an increase in valuation allowance. For the nine months ended September 30, 2023, the Company’s actual tax expense differs from the expected tax benefit utilizing a federal rate of 21%, primarily due to the addback of the non -deductibleSAFE Fair Value Adjustment and an increase in valuation allowance. 12. FAIR VALUE MEASUREMENTS Financial assets and liabilities that are measured at fair value on a recurring basis are classified as Level1, Level 2 and Level 3 as follows:

|                                           |     | As of September 30, 2024 |             |     |         |            |     |         |           |     |         |             |
|:------------------------------------------|:----|:-------------------------|------------:|:----|:--------|-----------:|:----|:--------|----------:|:----|:--------|------------:|
|                                           |     | Total                    |             |     | Level 1 |            |     | Level 2 |           |     | Level 3 |             |
| Assets:                                   |     |                          |             |     |         |            |     |         |           |