Company: FLDDW
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001013762-25-004107
Chunk: 232

Company: Fold Holdings, Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 1A
Chunk 232
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 violations of laws, rules, and regulations, both foreign and domestic.
The scope, determination, and impact of claims, lawsuits, government and regulatory investigations, enforcement actions, disputes, and
proceedings to which we are subject cannot be predicted with certainty, and may result in:

●substantial payments to satisfy judgments, fines, or penalties;

●substantial outside counsel, advisor, and consultant fees
and costs;

●substantial administrative costs, including arbitration fees;

●additional compliance and licensure requirements;

●loss or non-renewal of existing licenses or authorizations,
or prohibition from or delays in obtaining additional licenses or authorizations, required for our business;

●loss of productivity and high demands on employee time;

●criminal sanctions or consent decrees;

●termination of certain employees, including members of our
executive team;

21

●barring of certain employees from participating in our business
in whole or in part;

●orders that restrict our business or prevent us from offering
certain products or services;

●changes to our business model and practices;

●delays to planned transactions, product launches or improvements;
and

●damage to our brand and reputation.

Regardless of the outcome, any such matters can
have an adverse impact, which may be material, on our business, operating results, or financial condition because of legal costs, diversion
of management resources, reputational damage, and other factors.

If we cannot keep pace with rapid industry changes to provide
new and innovative products and services, the use of our products and services, and consequently our net revenue, could decline, which
could adversely impact our business, operating results, and financial condition.

Our industry has been characterized by many rapid,
significant, and disruptive products and services in recent years. These include advancements in payments services, new digital assets
and related technologies and use cases, etc. We expect new services and technologies to continue to emerge and evolve, which may be superior
to, or render obsolete, the products and services that we currently provide. For example, disruptive technologies such as generative AI
may fundamentally alter the use of our products or services in unpredictable ways. We cannot predict the effects of new services and technologies
on our business. However, our ability to grow our customer base and net revenue will depend heavily on our ability to innovate and create
successful new products and services, both independently and in conjunction with third-party developers. In particular, developing and
incorporating new products and services into our business may require substantial expenditures,