Company: FLDDW
Filing Date: 2025-01-14
Form Type: S-4/A
Source: 0001213900-25-003167
Chunk: 560

Company: Fold Holdings, Inc.
Filing Date: 2025-01-14
Form: S-4/A
Chunk 560
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 Term (in years)         |     |            |   5.0 |   |
| Probability of de-SPAC  |     |            |  20.0 | % |
| Exercise price          |     | $          | 11.50 |   |
| Public Warrant Price    |     | $          | 0.053 |   |

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

F-85

FTAC EMERALD ACQUISITION CORP.
NOTES TO CONDENSED FINANCIAL STATEMENTS
SEPTEMBER 30, 2024
(Unaudited) NOTE 6. COMMITMENTS AND CONTINGENCIES (cont.)

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.” At September 30, 2024 and December 31, 2023, $ and $0 were outstanding under the promissory note of the subscription agreement, respectively.

On April 2, 2024 and January 2, 2024, Polar contributed a $ Capital Contribution and a $ Capital Contribution, respectively, pursuant to the Subscription Agreement.

| Principal value of promissory note January 13, 2024 |     | $ |  350,000 |   |
| Principal value of promissory note April 2, 2024    |     |   |  200,000 |   |
| Debt discount, net of amortization                  |     |   | (111,499 | ) |
| Promissory note, net of discount                    |     | $ |  438,501 |   |

Merger Agreement

On July 24, 2024, the Company and Fold, Inc. announced that they have entered into an Agreement and Plan of Merger by and among the Company, EMLD Merger Sub Inc., a wholly-owned subsidiary of the Company, and Fold, pursuant to which, among other things, Merger Sub will be merged with and into Fold with Fold surviving the merger as a wholly-owned subsidiary of the Company.

As a result of the Transactions, Fold will become a subsidiary of the Company, with the former stockholders of Fold becoming stockholders