Company: FLDDW
Filing Date: 2025-01-22
Form Type: S-4/A
Source: 0001213900-25-005202
Chunk: 293

Company: Fold Holdings, Inc.
Filing Date: 2025-01-22
Form: S-4/A
Chunk 293
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 block of Fold Common Stock. Any such holders should consult their tax advisors with respect to identifying the bases or holding periods of the shares of New Fold Common Stock received in the Merger. If the Merger is not treated as a “reorganization” within the meaning of Section 368(a) of the Code, then each Fold U.S. Holder generally would recognize gain or loss in an amount equal to the difference between (x) the fair market value of the Emerald Public Shares received and (y) such Fold U.S. Holder’s adjusted tax basis in the shares of Fold Common Stock surrendered therefor. Such capital gain or capital loss generally would be long -termcapital gain or capital loss if the Fold U.S. Holder has held the shares of Fold Common Stock for more than one year. The deductibility of capital losses is subject to limitations. For purposes of the above discussion, Fold stockholders who acquired their Fold Common Stock at different times or for different prices should consult their tax advisors regarding the manner in which gain or loss should be determined in their specific circumstances. 174 Reporting Requirements Each Fold U.S. Holder that receives shares of New Fold Common Stock in the Merger is required to retain permanent records pertaining to the Merger and make such records available to any authorized IRS officers and employees. Such records should specifically include information regarding the number, basis, and fair market value of the Fold Common Stock exchanged and the number of shares of New Fold Common Stock received in exchange therefor. Additionally, Fold U.S. Holders who owned immediately before the Merger (a) at least one percent (by vote or value) of the total outstanding stock of Fold or (b) Fold Common Stock with a tax basis of $1.0 million or more are required to attach a statement to their U.S. federal income tax returns for the year in which the Merger is consummated that contains the information listed in Treasury Regulation Section 1.368 -3(b). Such statement must include the holder’s tax basis in its Fold Common Stock surrendered in the Merger, the fair market value of such stock, the date of the Merger and the name and employer identification number of each of Fold and Emerald. Fold U.S. Holders should consult their tax advisors regarding the application of these rules. Backup Withholding and Information Reporting A Fold U.S. Holder may, under certain circumstances, be subject to information reporting and backup withholding on amounts received in the Merger, unless such holder properly establishes an exemption or provides its correct tax identification number and