Company: FLDDW
Filing Date: 2025-07-28
Form Type: S-1/A
Source: 0001213900-25-068264
Chunk: 309

Company: Fold Holdings, Inc.
Filing Date: 2025-07-28
Form: S-1/A
Chunk 309
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 to be $ or $ per share. The fair value of the Investor Shares was recorded as an expense with a corresponding credit to additional paid-in capital. The fair value was determined using the standard closed-form Black Scholes model which is considered to be a Level 3 fair value measurement.

The key inputs into the Black Scholes model for the Investor Shares were as follows at January 3, 2024:

| Input                   |     | January 3, 
 2024       |       |   |
|:------------------------|:----|:-----------|------:|:--|
| Risk-free interest rate |     |            |  3.90 | % |
| Term (in years)         |     |            |   5.0 |   |
| Probability of de-SPAC  |     |            |  20.0 | % |
| Exercise price          |     | $          | 11.50 |   |
| Public Warrant Price    |     | $          | 0.053 |   |

F-49

FOLD HOLDINGS, INC.
(F/K/A FTAC EMERALD ACQUISITION CORP.)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2024 NOTE 5. COMMITMENTS AND CONTINGENCIES (cont.)

Subscription Agreement

The Company evaluated the accounting for the Subscription Agreement under ASC 480 “Distinguishing Liabilities from Equity”. The Company concluded that the subscription shares to be issued as part of the bundled transaction are classified and accounted for as equity. Therefore, the proceeds are required to be allocated based on the relative fair values of the base instrument of the investment amount and the Common Stock in accordance with the guidance in ASC 470 “Debt.” On April 2, 2024 and January 2, 2024, Polar contributed a $ Capital Contribution and a $ Capital Contribution, respectively, pursuant to the Subscription Agreement. At December 31, 2024 and 2023, $ and $ were outstanding under the promissory note of the subscription agreement, respectively.

The table below summarizes the outstanding promissory note under the Subscription Agreement as of December 31, 2024:

| Principal value of promissory note January 13, 2024 |     | $ | 350,000 |
| Principal value of promissory note April 2, 2024    |     |   | 200,000 |
| Total promissory notes