Company: FLDDW
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001013762-25-004107
Chunk: 297

Company: Fold Holdings, Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 1A
Chunk 297
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 associated with employees and service providers accessing company data
and systems remotely. We also face challenges due to the need to operate with the remote workforce and are addressing those challenges
to minimize the impact on our ability to operate.

Being a remote-first company may make it more difficult
for us to preserve our corporate culture and our employees may have decreased opportunities to collaborate in meaningful ways. Further,
we cannot guarantee that being a remote-first company will not have a negative impact on employee morale and productivity. Any failure
to preserve our corporate culture and foster collaboration could harm our future success, including our ability to retain and recruit
personnel, innovate and operate effectively, and execute on our business strategy.

Environmental, social and governance factors may impose additional
costs and expose us to new risks.

There is an increasing focus from certain investors,
regulators, employees, users and other stakeholders concerning corporate responsibility, specifically related to environmental, social
and governance matters (“ESG”). Some investors may use these non-financial performance factors to guide their investment strategies
and, in some cases, may choose not to invest in us if they believe our policies and actions relating to corporate responsibility are inadequate.
The growing investor demand for measurement of non-financial performance is addressed by third-party providers of sustainability assessment
and ratings on companies. The criteria by which our corporate responsibility practices are assessed may change due to the constant evolution
of the sustainability landscape, which could result in greater expectations of us and cause us to undertake costly initiatives to satisfy
such new criteria. If we elect not to or are unable to satisfy such new criteria, investors may conclude that our policies and actions
with respect to corporate social responsibility are inadequate. We may face reputational damage in the event that we do not meet the ESG
standards set by various constituencies.

55

Furthermore, if our competitors’ corporate
social responsibility performance is perceived to be better than ours, potential or current investors may elect to invest with our competitors
instead. In addition, in the event that we communicate certain initiatives and goals regarding environmental, social and governance matters,
we could fail, or be perceived to fail, in our achievement of such initiatives or goals, or we could be criticized for the scope of such
initiatives or goals. If we fail to satisfy the expectations of investors, employees and other stakeholders or our initiatives are not
executed as planned, our reputation and business, operating results and financial condition could be adversely impacted.

Changes in U.S. and foreign tax laws, as well as the